Top Provisions of The Civil Code - Favorite Sources of Bar Questions

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Top provisions of the Civil Code – Art. 19 - Every person must, in the exercise of his rights
and in the performance of his duties, act with justice, give
Favorite Sources of Bar Questions everyone his due, and observe honesty and good faith.

Art. 2 -Laws shall take effect after fifteen days following the
Art. 20 - Every person who, contrary to law, wilfully or
completion of their publication in the Official Gazette,
negligently causes damage to another, shall indemnify the
unless it is otherwise provided. This Code shall take effect
latter for the same.
one year after such publication.
Art. 21 - Any person who wilfully causes loss or injury to
Art. 3 - Ignorance of the law excuses no one from
another in a manner that is contrary to morals, good
compliance therewith.
customs or public policy shall compensate the latter for the
damage.
Art. 13 - When the laws speak of years, months, days or
nights, it shall be understood that years are of three
Art. 29 - When the accused in a criminal prosecution is
hundred sixty-five days each; months, of thirty days; days,
acquitted on the ground that his guilt has not been proved
of twenty-four hours; and nights from sunset to sunrise.
beyond reasonable doubt, a civil action for damages for the
same act or omission may be instituted. Such action
Art. 15. Laws relating to family rights and duties, or to the
requires only a preponderance of evidence. Upon motion
status, condition and legal capacity of persons are binding
of the defendant, the court may require the plaintiff to file a
upon citizens of the Philippines, even though living abroad.
bond to answer for damages in case the complaint should
be found to be malicious.
Art. 16 - Real property as well as personal property is
subject to the law of the country where it is situated. If in a criminal case the judgment of acquittal is based upon
reasonable doubt, the court shall so declare. In the
However, intestate and testamentary absence of any declaration to that effect, it may be inferred
successions, both with respect to the order of succession from the text of the decision whether or not the acquittal is
and to the amount of successional rights and to the intrinsic due to that ground.
validity of testamentary provisions, shall be regulated by
the national law of the person whose succession is under Art. 30 - When a separate civil action is brought to demand
consideration, whatever may be the nature of the property civil liability arising from a criminal offense, and no criminal
and regardless of the country wherein said property may proceedings are instituted during the pendency of the civil
be found. case, a preponderance of evidence shall likewise be
sufficient to prove the act complained of.
Art. 17 - The forms and solemnities of contracts, wills, and
other public instruments shall be governed by the laws of Art. 31 - When the civil action is based on an obligation not
the country in which they are executed. arising from the act or omission complained of as a felony,
such civil action may proceed independently of the criminal
When the acts referred to are executed before the proceedings and regardless of the result of the latter.
diplomatic or consular officials of the Republic of the
Philippines in a foreign country, the solemnities
Art. 32 - Any public officer or employee, or any private
established by Philippine laws shall be observed in their
individual, who directly or indirectly obstructs, defeats,
execution.
violates or in any manner impedes or impairs any of the
following rights and liberties of another person shall be
Prohibitive laws concerning persons, their acts or property, liable to the latter for damages:
and those which have, for their object, public order, public
policy and good customs shall not be rendered ineffective
(1) Freedom of religion;
by laws or judgments promulgated, or by determinations or
conventions agreed upon in a foreign country
(2) Freedom of speech;
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(3) Freedom to write for the press or to maintain (18) Freedom from excessive fines, or cruel and
a periodical publication; unusual punishment, unless the same is imposed
or inflicted in accordance with a statute which has
(4) Freedom from arbitrary or illegal detention; not been judicially declared unconstitutional; and

(5) Freedom of suffrage; (19) Freedom of access to the courts.

(6) The right against deprivation of property In any of the cases referred to in this article, whether or not
without due process of law; the defendant's act or omission constitutes a criminal
offense, the aggrieved party has a right to commence an
(7) The right to a just compensation when private entirely separate and distinct civil action for damages, and
property is taken for public use; for other relief. Such civil action shall proceed
independently of any criminal prosecution (if the latter be
(8) The right to the equal protection of the laws; instituted), and mat be proved by a preponderance of
evidence.
(9) The right to be secure in one's person, house,
papers, and effects against unreasonable The indemnity shall include moral damages. Exemplary
searches and seizures; damages may also be adjudicated.

(10) The liberty of abode and of changing the The responsibility herein set forth is not demandable from
same; a judge unless his act or omission constitutes a violation of
the Penal Code or other penal statute.
(11) The privacy of communication and
correspondence; Art. 33 - In cases of defamation, fraud, and physical
injuries a civil action for damages, entirely separate and
(12) The right to become a member of distinct from the criminal action, may be brought by the
associations or societies for purposes not injured party. Such civil action shall proceed independently
contrary to law; of the criminal prosecution, and shall require only a
preponderance of evidence.
(13) The right to take part in a peaceable
assembly to petition the government for redress
Art. 34 - When a member of a city or municipal police force
of grievances;
refuses or fails to render aid or protection to any person in
(14) The right to be free from involuntary case of danger to life or property, such peace officer shall
servitude in any form; be primarily liable for damages, and the city or municipality
shall be subsidiarily responsible therefor. The civil action
(15) The right of the accused against excessive herein recognized shall be independent of any criminal
bail; proceedings, and a preponderance of evidence shall
suffice to support such action.
(16) The right of the accused to be heard by
himself and counsel, to be informed of the nature Art. 35 - When a person, claiming to be injured by a
and cause of the accusation against him, to have criminal offense, charges another with the same, for which
a speedy and public trial, to meet the witnesses no independent civil action is granted in this Code or any
face to face, and to have compulsory process to special law, but the justice of the peace finds no
secure the attendance of witness in his behalf; reasonable grounds to believe that a crime has been
committed, or the prosecuting attorney refuses or fails to
(17) Freedom from being compelled to be a institute criminal proceedings, the complaint may bring a
witness against one's self, or from being forced to civil action for damages against the alleged offender. Such
confess guilt, or from being induced by a promise civil action may be supported by a preponderance of
of immunity or reward to make such confession, evidence. Upon the defendant's motion, the court may
except when the person confessing becomes a require the plaintiff to file a bond to indemnify the defendant
State witness; in case the complaint should be found to be malicious.
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If during the pendency of the civil action, an information (2) A valid marriage license except in the cases
should be presented by the prosecuting attorney, the civil provided for in Chapter 2 of this Title; and
action shall be suspended until the termination of the
criminal proceedings. (3) A marriage ceremony which takes place with
the appearance of the contracting parties before
Art. 36 - Pre-judicial questions which must be decided the solemnizing officer and their personal
before any criminal prosecution may be instituted or may declaration that they take each other as husband
proceed, shall be governed by rules of court which the and wife in the presence of not less than two
Supreme Court shall promulgate and which shall not be in witnesses of legal age.
conflict with the provisions of this Code.
Art. 4. The absence of any of the essential or formal
Art. 37 - Juridical capacity, which is the fitness to be the requisites shall render the marriage void ab initio, except
subject of legal relations, is inherent in every natural
as stated in Article 35 (2).
person and is lost only through death. Capacity to act,
which is the power to do acts with legal effect, is acquired
and may be lost. A defect in any of the essential requisites shall not
affect the validity of the marriage but the party or parties
Art. 38 - Minority, insanity or imbecility, the state of being responsible for the irregularity shall be civilly, criminally
a deaf-mute, prodigality and civil interdiction are mere and administratively liable.
restrictions on capacity to act, and do not exempt the
incapacitated person from certain obligations, as when the Art. 5 - Any male or female of the age of eighteen years or
latter arise from his acts or from property relations, such as upwards not under any of the impediments mentioned in
easements. Articles 37 and 38, may contract marriage.

Art. 40 - Birth determines personality; but the conceived Art. 7 - Marriage may be solemnized by:
child shall be considered born for all purposes that are
(1) Any incumbent member of the judiciary within
favorable to it, provided it be born later with the conditions
the court's jurisdiction;
specified in the following article
(2) Any priest, rabbi, imam, or minister of any
Art. 41 - For civil purposes, the fetus is considered born if church or religious sect duly authorized by his
it is alive at the time it is completely delivered from the church or religious sect and registered with the
mother's womb. However, if the fetus had an intra-uterine civil registrar general, acting within the limits of
life of less than seven months, it is not deemed born if it the written authority granted by his church or
dies within twenty-four hours after its complete delivery religious sect and provided that at least one of the
contracting parties belongs to the solemnizing
from the maternal womb.
officer's church or religious sect;

Family Code (3) Any ship captain or airplane chief only in the
case mentioned in Article 31;
Art. 2 - No marriage shall be valid, unless these essential
requisites are present: (4) Any military commander of a unit to which a
chaplain is assigned, in the absence of the latter,
(1) Legal capacity of the contracting parties who during a military operation, likewise only in the
must be a male and a female; and cases mentioned in Article 32;

(2) Consent freely given in the presence of the (5) Any consul-general, consul or vice-consul in
solemnizing officer. the case provided in Article 10.

Art. 3. The formal requisites of marriage are: Art. 10 - Marriages between Filipino citizens abroad may
(1) Authority of the solemnizing officer; be solemnized by a consul-general, consul or vice-consul
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of the Republic of the Philippines. The issuance of the (3) Those solemnized without license, except
marriage license and the duties of the local civil registrar those covered the preceding Chapter;
and of the solemnizing officer with regard to the celebration
of marriage shall be performed by said consular official. (4) Those bigamous or polygamous marriages
not failing under Article 41;
Art. 25 - The local civil registrar concerned shall enter all (5) Those contracted through mistake of one
applications for marriage licenses filed with him in a contracting party as to the identity of the other;
registry book strictly in the order in which the same are and
received. He shall record in said book the names of the
applicants, the date on which the marriage license was (6) Those subsequent marriages that are void
issued, and such other data as may be necessary. under Article 53.

Art. 26 - All marriages solemnized outside the Philippines, Art. 36 - A marriage contracted by any party who, at the
in accordance with the laws in force in the country where time of the celebration, was psychologically incapacitated
they were solemnized, and valid there as such, shall also to comply with the essential marital obligations of marriage,
be valid in this country, except those prohibited under shall likewise be void even if such incapacity becomes
Articles 35 (1), (4), (5) and (6), 3637 and 38. manifest only after its solemnization.

Where a marriage between a Filipino citizen and Art. 37. Marriages between the following are incestuous
and void from the beginning, whether relationship between
a foreigner is validly celebrated and a divorce is thereafter
the parties be legitimate or illegitimate:
validly obtained abroad by the alien spouse capacitating
him or her to remarry, the Filipino spouse shall have (1) Between ascendants and descendants of any
capacity to remarry under Philippine law. degree; and

Art. 34. No license shall be necessary for the marriage of (2) Between brothers and sisters, whether of the
a man and a woman who have lived together as husband full or half blood.
and wife for at least five years and without any legal
impediment to marry each other. The contracting parties Art. 38 - The following marriages shall be void from the
shall state the foregoing facts in an affidavit before any beginning for reasons of public policy:
(1) Between collateral blood relatives whether
person authorized by law to administer oaths. The
legitimate or illegitimate, up to the fourth civil
solemnizing officer shall also state under oath that he degree;
ascertained the qualifications of the contracting parties are
found no legal impediment to the marriage. (2) Between step-parents and step-children;

Art. 35. The following marriages shall be void from the (3) Between parents-in-law and children-in-law;
beginning:
(4) Between the adopting parent and the adopted
(1) Those contracted by any party below eighteen child;
years of age even with the consent of parents or
guardians; (5) Between the surviving spouse of the adopting
parent and the adopted child;
(2) Those solemnized by any person not legally
authorized to perform marriages unless such (6) Between the surviving spouse of the adopted
marriages were contracted with either or both child and the adopter;
parties believing in good faith that the solemnizing
officer had the legal authority to do so;
(7) Between an adopted child and a legitimate
child of the adopter;
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(8) Between adopted children of the same (1) The children of the subsequent marriage
adopter; and conceived prior to its termination shall be
considered legitimate;
(9) Between parties where one, with the intention
to marry the other, killed that other person's (2) The absolute community of property or the
spouse, or his or her own spouse. ( conjugal partnership, as the case may be, shall
be dissolved and liquidated, but if either spouse
Art. 39 - The action or defense for the declaration of contracted said marriage in bad faith, his or her
absolute nullity of a marriage shall not prescribe." share of the net profits of the community property
or conjugal partnership property shall be forfeited
in favor of the common children or, if there are
Art. 40 - The absolute nullity of a previous marriage may none, the children of the guilty spouse by a
be invoked for purposes of remarriage on the basis solely previous marriage or in default of children, the
of a final judgment declaring such previous marriage void. innocent spouse;

Art. 41. A marriage contracted by any person during (3) Donations by reason of marriage shall remain
subsistence of a previous marriage shall be null and void, valid, except that if the donee contracted the
unless before the celebration of the subsequent marriage, marriage in bad faith, such donations made to
the prior spouse had been absent for four consecutive said donee are revoked by operation of law;
years and the spouse present has a well-founded belief
that the absent spouse was already dead. In case of (4) The innocent spouse may revoke the
disappearance where there is danger of death under the designation of the other spouse who acted in bad
circumstances set forth in the provisions of Article 391 of faith as beneficiary in any insurance policy, even
the Civil Code, an absence of only two years shall be if such designation be stipulated as irrevocable;
sufficient. and

For the purpose of contracting the subsequent marriage (5) The spouse who contracted the subsequent
under the preceding paragraph the spouse present must marriage in bad faith shall be disqualified to inherit
institute a summary proceeding as provided in this Code from the innocent spouse by testate and intestate
for the declaration of presumptive death of the absentee, succession
without prejudice to the effect of reappearance of the
absent spouse. ( Art. 45 - A marriage may be annulled for any of the
following causes, existing at the time of the marriage:
Art. 42. The subsequent marriage referred to in the
preceding Article shall be automatically terminated by the
recording of the affidavit of reappearance of the absent (1) That the party in whose behalf it is sought to
spouse, unless there is a judgment annulling the previous have the marriage annulled was eighteen years
marriage or declaring it void ab initio. of age or over but below twenty-one, and the
marriage was solemnized without the consent of
the parents, guardian or person having substitute
A sworn statement of the fact and circumstances of
parental authority over the party, in that order,
reappearance shall be recorded in the civil registry of the
unless after attaining the age of twenty-one, such
residence of the parties to the subsequent marriage at the
party freely cohabited with the other and both
instance of any interested person, with due notice to the
lived together as husband and wife;
spouses of the subsequent marriage and without prejudice
to the fact of reappearance being judicially determined in
case such fact is disputed. (2) That either party was of unsound mind, unless
such party after coming to reason, freely
cohabited with the other as husband and wife;
Art. 43 - The termination of the subsequent marriage
referred to in the preceding Article shall produce the
following effects: (3) That the consent of either party was obtained
by fraud, unless such party afterwards, with full
knowledge of the facts constituting the fraud,
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freely cohabited with the other as husband and minor, at any time before such party has reached
wife; the age of twenty-one;

(4) That the consent of either party was obtained (2) For causes mentioned in number 2 of Article
by force, intimidation or undue influence, unless 45, by the same spouse, who had no knowledge
the same having disappeared or ceased, such of the other's insanity; or by any relative or
party thereafter freely cohabited with the other as guardian or person having legal charge of the
husband and wife; insane, at any time before the death of either
party, or by the insane spouse during a lucid
(5) That either party was physically incapable of interval or after regaining sanity;
consummating the marriage with the other, and
such incapacity continues and appears to be (3) For causes mentioned in number 3 of Article
incurable; or 45, by the injured party, within five years after the
discovery of the fraud;
(6) That either party was afflicted with a sexually-
transmissible disease found to be serious and (4) For causes mentioned in number 4 of Article
appears to be incurable. 45, by the injured party, within five years from the
time the force, intimidation or undue influence
Art. 46 - Any of the following circumstances shall disappeared or ceased;
constitute fraud referred to in Number 3 of the preceding
Article: (5) For causes mentioned in number 5 and 6 of
(1) Non-disclosure of a previous conviction by Article 45, by the injured party, within five years
final judgment of the other party of a crime after the marriage.
involving moral turpitude;
Art. 51 - In said partition, the value of the presumptive
(2) Concealment by the wife of the fact that at the legitimes of all common children, computed as of the date
time of the marriage, she was pregnant by a man of the final judgment of the trial court, shall be delivered in
other than her husband; cash, property or sound securities, unless the parties, by
mutual agreement judicially approved, had already
(3) Concealment of sexually transmissible provided for such matters.
disease, regardless of its nature, existing at the
time of the marriage; or The children or their guardian or the trustee of their
property may ask for the enforcement of the judgment.
(4) Concealment of drug addiction, habitual
alcoholism or homosexuality or lesbianism The delivery of the presumptive legitimes herein
existing at the time of the marriage. prescribed shall in no way prejudice the ultimate
successional rights of the children accruing upon the death
No other misrepresentation or deceit as to character,
of either of both of the parents; but the value of the
health, rank, fortune or chastity shall constitute such fraud
as will give grounds for action for the annulment of properties already received under the decree of annulment
marriage. or absolute nullity shall be considered as advances on their
legitime. (
Art. 47 - The action for annulment of marriage must be filed
by the following persons and within the periods indicated Art. 52 - The judgment of annulment or of absolute nullity
herein: of the marriage, the partition and distribution of the
properties of the spouses and the delivery of the children's
(1) For causes mentioned in number 1 of Article presumptive legitimes shall be recorded in the appropriate
45 by the party whose parent or guardian did not
civil registry and registries of property; otherwise, the same
give his or her consent, within five years after
attaining the age of twenty-one, or by the parent shall not affect third persons.
or guardian or person having legal charge of the
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Art. 53 - Either of the former spouses may marry again Art. 56 - The petition for legal separation shall be denied
after compliance with the requirements of the immediately on any of the following grounds:
preceding Article; otherwise, the subsequent marriage
shall be null and void. (1) Where the aggrieved party has condoned the
offense or act complained of;
Art. 54 - Children conceived or born before the judgment
(2) Where the aggrieved party has consented to
of annulment or absolute nullity of the marriage under
the commission of the offense or act complained
Article 36 has become final and executory shall be of;
considered legitimate. Children conceived or born of the
subsequent marriage under Article 53 shall likewise be (3) Where there is connivance between the
legitimate. parties in the commission of the offense or act
constituting the ground for legal separation;
Art. 55 - A petition for legal separation may be filed on any
of the following grounds: (4) Where both parties have given ground for
(1) Repeated physical violence or grossly abusive legal separation;
conduct directed against the petitioner, a
common child, or a child of the petitioner; (5) Where there is collusion between the parties
to obtain decree of legal separation; or
(2) Physical violence or moral pressure to compel
the petitioner to change religious or political (6) Where the action is barred by prescription.
affiliation;
Art. 57. An action for legal separation shall be filed within
(3) Attempt of respondent to corrupt or induce the
five years from the time of the occurrence of the cause.
petitioner, a common child, or a child of the
petitioner, to engage in prostitution, or
connivance in such corruption or inducement; Art. 68 - The husband and wife are obliged to live together,
observe mutual love, respect and fidelity, and render
(4) Final judgment sentencing the respondent to mutual help and support
imprisonment of more than six years, even if
pardoned; Art. 75 - The future spouses may, in the marriage
settlements, agree upon the regime of absolute
(5) Drug addiction or habitual alcoholism of the community, conjugal partnership of gains, complete
respondent;
separation of property, or any other regime. In the absence
of a marriage settlement, or when the regime agreed upon
(6) Lesbianism or homosexuality of the
respondent; is void, the system of absolute community of property as
established in this Code shall govern.
(7) Contracting by the respondent of a
subsequent bigamous marriage, whether in the Art. 84 - If the future spouses agree upon a regime other
Philippines or abroad; than the absolute community of property, they cannot
donate to each other in their marriage settlements more
(8) Sexual infidelity or perversion; than one-fifth of their present property. Any excess shall be
considered void.
(9) Attempt by the respondent against the life of
the petitioner; or Donations of future property shall be governed by the
provisions on testamentary succession and the formalities
of wills.
(10) Abandonment of petitioner by respondent
without justifiable cause for more than one year.

For purposes of this Article, the term "child" shall include a


child by nature or by adoption.
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Art. 89 - If the future spouses agree upon a regime other (4) That which is purchased with exclusive money
than the absolute community of property, they cannot of the wife or of the husband.
donate to each other in their marriage settlements more
than one-fifth of their present property. Any excess shall be Art. 110 - The spouses retain the ownership, possession,
considered void. administration and enjoyment of their exclusive properties.

Donations of future property shall be governed by the Either spouse may, during the marriage, transfer the
provisions on testamentary succession and the formalities administration of his or her exclusive property to the other
of wills. by means of a public instrument, which shall be recorded
in the registry of property of the place the property is
Art. 90 - The provisions on co-ownership shall apply to the located.
absolute community of property between the spouses in all
matters not provided for in this Chapter. Art. 120 - The ownership of improvements, whether for
utility or adornment, made on the separate property of the
Art. 91 - Unless otherwise provided in this Chapter or in spouses at the expense of the partnership or through the
the marriage settlements, the community property shall acts or efforts of either or both spouses shall pertain to the
consist of all the property owned by the spouses at the time conjugal partnership, or to the original owner-spouse,
of the celebration of the marriage or acquired thereafter. subject to the following rules:

Art. 92 - The following shall be excluded from the When the cost of the improvement made by the
community property: conjugal partnership and any resulting increase in
value are more than the value of the property at
(1) Property acquired during the marriage by the time of the improvement, the entire property
gratuitous title by either spouse, and the fruits as of one of the spouses shall belong to the conjugal
well as the income thereof, if any, unless it is partnership, subject to reimbursement of the
expressly provided by the donor, testator or value of the property of the owner-spouse at the
grantor that they shall form part of the community time of the improvement; otherwise, said property
property; shall be retained in ownership by the owner-
spouse, likewise subject to reimbursement of the
(2) Property for personal and exclusive use of cost of the improvement.
either spouse. However, jewelry shall form part of
the community property; In either case, the ownership of the entire
property shall be vested upon the reimbursement,
(3) Property acquired before the marriage by which shall be made at the time of the liquidation
either spouse who has legitimate descendants by of the conjugal partnership.
a former marriage, and the fruits as well as the
income, if any, of such property. Art. 147 - When a man and a woman who are capacitated
to marry each other, live exclusively with each other as
Art. 109. The following shall be the exclusive property of husband and wife without the benefit of marriage or under
each spouse: a void marriage, their wages and salaries shall be owned
(1) That which is brought to the marriage as his or by them in equal shares and the property acquired by both
her own; of them through their work or industry shall be governed by
the rules on co-ownership.
(2) That which each acquires during the marriage
by gratuitous title; In the absence of proof to the contrary, properties acquired
while they lived together shall be presumed to have been
obtained by their joint efforts, work or industry, and shall be
(3) That which is acquired by right of redemption,
owned by them in equal shares. For purposes of this
by barter or by exchange with property belonging
Article, a party who did not participate in the acquisition by
to only one of the spouses; and
the other party of any property shall be deemed to have
contributed jointly in the acquisition thereof if the former's
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efforts consisted in the care and maintenance of the family Art. 154 - The beneficiaries of a family home are:
and of the household.
(1) The husband and wife, or an unmarried
Neither party can encumber or dispose by acts inter vivos person who is the head of a family; and
of his or her share in the property acquired during
cohabitation and owned in common, without the consent of (2) Their parents, ascendants, descendants,
the other, until after the termination of their cohabitation. brothers and sisters, whether the relationship be
legitimate or illegitimate, who are living in the
When only one of the parties to a void marriage is in good family home and who depend upon the head of
faith, the share of the party in bad faith in the co-ownership the family for legal support. (226a)
shall be forfeited in favor of their common children. In case
of default of or waiver by any or all of the common children Art. 155. The family home shall be exempt from execution,
or their descendants, each vacant share shall belong to the forced sale or attachment except:
respective surviving descendants. In the absence of (1) For nonpayment of taxes;
descendants, such share shall belong to the innocent
party. In all cases, the forfeiture shall take place upon (2) For debts incurred prior to the constitution of
termination of the cohabitation. (144a) the family home;

Art. 148 - In cases of cohabitation not falling under the (3) For debts secured by mortgages on the
preceding Article, only the properties acquired by both of premises before or after such constitution; and
the parties through their actual joint contribution of money,
property, or industry shall be owned by them in common in (4) For debts due to laborers, mechanics,
proportion to their respective contributions. In the absence architects, builders, materialmen and others who
of proof to the contrary, their contributions and have rendered service or furnished material for
corresponding shares are presumed to be equal. The the construction of the building. (
same rule and presumption shall apply to joint deposits of
money and evidences of credit.
Art. 161 - For purposes of availing of the benefits of a
If one of the parties is validly married to another, his or her family home as provided for in this Chapter, a person may
share in the co-ownership shall accrue to the absolute constitute, or be the beneficiary of, only one family home.
community or conjugal partnership existing in such valid
marriage. If the party who acted in bad faith is not validly Art. 164. Children conceived or born during the marriage
married to another, his or her shall be forfeited in the of the parents are legitimate.
manner provided in the last paragraph of the preceding
Article. Children conceived as a result of artificial insemination of
the wife with the sperm of the husband or that of a donor
The foregoing rules on forfeiture shall likewise apply even or both are likewise legitimate children of the husband and
if both parties are in bad faith. his wife, provided, that both of them authorized or ratified
such insemination in a written instrument executed and
Art. 152 - The family home, constituted jointly by the signed by them before the birth of the child. The instrument
shall be recorded in the civil registry together with the birth
husband and the wife or by an unmarried head of a family,
certificate of the child.
is the dwelling house where they and their family reside,
and the land on which it is situated. Art. 166 - Legitimacy of a child may be impugned only on
the following grounds:
Art. 153 - The family home is deemed constituted on a
house and lot from the time it is occupied as a family (1) That it was physically impossible for the
residence. From the time of its constitution and so long as husband to have sexual intercourse with his wife
any of its beneficiaries actually resides therein, the family within the first 120 days of the 300 days which
home continues to be such and is exempt from execution, immediately preceded the birth of the child
because of:
forced sale or attachment except as hereinafter provided
and to the extent of the value allowed by law.
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(a) the physical incapacity of the Art. 175 - Illegitimate children may establish their
husband to have sexual intercourse with illegitimate filiation in the same way and on the same
his wife; evidence as legitimate children.

(b) the fact that the husband and wife The action must be brought within the same period
were living separately in such a way that specified in Article 173, except when the action is based
sexual intercourse was not possible; or on the second paragraph of Article 172, in which case the
action may be brought during the lifetime of the alleged
(c) serious illness of the husband, which parent.
absolutely prevented sexual intercourse;
Art. 176 - Illegitimate children shall use the surname and
(2) That it is proved that for biological or other shall be under the parental authority of their mother, and
scientific reasons, the child could not have been shall be entitled to support in conformity with this Code.
that of the husband, except in the instance
The legitime of each illegitimate child shall consist of one-
provided in the second paragraph of Article 164;
or half of the legitime of a legitimate child. Except for this
modification, all other provisions in the Civil Code
(3) That in case of children conceived through governing successional rights shall remain in force.
artificial insemination, the written authorization or
ratification of either parent was obtained through Art. 177 - Only children conceived and born outside of
mistake, fraud, violence, intimidation, or undue wedlock of parents who, at the time of the conception of
influence. the former, were not disqualified by any impediment to
marry each other may be legitimated.
Art. 172 - The filiation of legitimate children is established
by any of the following: Art. 184 - The following persons may not adopt:

(1) The record of birth appearing in the civil (1) The guardian with respect to the ward prior to
register or a final judgment; or the approval of the final accounts rendered upon
the termination of their guardianship relation;
(2) An admission of legitimate filiation in a public
document or a private handwritten instrument and (2) Any person who has been convicted of a crime
signed by the parent concerned. involving moral turpitude;

In the absence of the foregoing evidence, the legitimate (3) An alien, except:
filiation shall be
(a) A former Filipino citizen who seeks to
proved by: adopt a relative by consanguinity;

(1) The open and continuous possession of the (b) One who seeks to adopt the
status of a legitimate child; or legitimate child of his or her Filipino
spouse; or
(2) Any other means allowed by the Rules of
Court and special laws. (c) One who is married to a Filipino
citizen and seeks to adopt jointly with his
Art. 173 - The action to claim legitimacy may be brought or her spouse a relative by
by the child during his or her lifetime and shall be consanguinity of the latter.
transmitted to the heirs should the child die during minority
or in a state of insanity. In these cases, the heirs shall have Aliens not included in the foregoing exceptions may adopt
Filipino children in accordance with the rules on inter-
a period of five years within which to institute the action.
country adoptions as may be provided by law.
11
Art. 190 - Legal or intestate succession to the estate of the of the minor. If the adopted person is physically or mentally
adopted shall be governed by the following rules: handicapped, the court shall appoint in the same
(1) Legitimate and illegitimate children and proceeding a guardian over his person or property or both.
descendants and the surviving spouse of the
adopted shall inherit from the adopted, in Judicial rescission of the adoption shall extinguish all
accordance with the ordinary rules of legal or reciprocal rights and obligations between the adopters and
intestate succession; the adopted arising from the relationship of parent and
child. The adopted shall likewise lose the right to use the
(2) When the parents, legitimate or illegitimate, or surnames of the adopters and shall resume his surname
the legitimate ascendants of the adopted concur prior to the adoption.
with the adopter, they shall divide the entire
estate, one-half to be inherited by the parents or The court shall accordingly order the amendment of the
ascendants and the other half, by the adopters; records in the proper registries.

(3) When the surviving spouse or the illegitimate Art. 194 - Support comprises everything indispensable for
children of the adopted concur with the adopters, sustenance, dwelling, clothing, medical attendance,
they shall divide the entire estate in equal shares, education and transportation, in keeping with the financial
one-half to be inherited by the spouse or the capacity of the family.
illegitimate children of the adopted and the other
half, by the adopters. The education of the person entitled to be supported
referred to in the preceding paragraph shall include his
(4) When the adopters concur with the illegitimate schooling or training for some profession, trade or
children and the surviving spouse of the adopted, vocation, even beyond the age of majority. Transportation
they shall divide the entire estate in equal shares, shall include expenses in going to and from school, or to
one-third to be inherited by the illegitimate and from place of work.
children, one-third by the surviving spouse, and
one-third by the adopters; Art. 231 - The court in an action filed for the purpose in a
related case may also suspend parental authority if the
(5) When only the adopters survive, they shall parent or the person exercising the same:
inherit the entire estate; and
(1) Treats the child with excessive harshness or
(6) When only collateral blood relatives of the cruelty;
adopted survive, then the ordinary rules of legal
or intestate succession shall apply. (2) Gives the child corrupting orders, counsel or
example;
Art. 191 - If the adopted is a minor or otherwise
incapacitated, the adoption may be judicially rescinded (3) Compels the child to beg; or
upon petition of any person authorized by the court or
proper government instrumental acting on his behalf, on (4) Subjects the child or allows him to be
the same grounds prescribed for loss or suspension of subjected to acts of lasciviousness.
parental authority. If the adopted is at least eighteen years
The grounds enumerated above are deemed to include
of age, he may petition for judicial rescission of the
cases which have resulted from culpable negligence of the
adoption on the same grounds prescribed for disinheriting parent or the person exercising parental authority.
an ascendant.
If the degree of seriousness so warrants, or the welfare of
Art. 193 - If the adopted minor has not reached the age of the child so demands, the court shall deprive the guilty
majority at the time of the judicial rescission of the party of parental authority or adopt such other measures
adoption, the court in the same proceeding shall reinstate as may be proper under the circumstances.
the parental authority of the parents by nature, unless the
latter are disqualified or incapacitated, in which case the The suspension or deprivation may be revoked and the
court shall appoint a guardian over the person and property parental authority revived in a case filed for the purpose or
12
in the same proceeding if the court finds that the cause (10) Contracts for public works, and servitudes
therefor has ceased and will not be repeated. and other real rights over immovable property.
(334a)
Art. 236 - Emancipation for any cause shall terminate
parental authority over the person and property of the child Art. 428 - The owner has the right to enjoy and dispose
who shall then be qualified and responsible for all acts of of a thing, without other limitations than those established
by law.
civil life.
The owner has also a right of action against the holder and
Art. 415 - The following are immovable property: possessor of the thing in order to recover it.
(1) Land, buildings, roads and constructions of all
kinds adhered to the soil;
Art. 430 - Every owner may enclose or fence his land or
(2) Trees, plants, and growing fruits, while they tenements by means of walls, ditches, live or dead hedges,
are attached to the land or form an integral part of or by any other means without detriment to servitudes
an immovable; constituted thereon.

(3) Everything attached to an immovable in a fixed Art. 438 - Hidden treasure belongs to the owner of the
manner, in such a way that it cannot be separated land, building, or other property on which it is found.
therefrom without breaking the material or
deterioration of the object; Nevertheless, when the discovery is made on the property
of another, or of the State or any of its subdivisions, and by
(4) Statues, reliefs, paintings or other objects for chance, one-half thereof shall be allowed to the finder. If
use or ornamentation, placed in buildings or on the finder is a trespasser, he shall not be entitled to any
lands by the owner of the immovable in such a share of the treasure.
manner that it reveals the intention to attach them
permanently to the tenements; If the things found be of interest to science of the arts, the
State may acquire them at their just price, which shall be
(5) Machinery, receptacles, instruments or divided in conformity with the rule stated.
implements intended by the owner of the
tenement for an industry or works which may be Art. 442 - Natural fruits are the spontaneous products of
carried on in a building or on a piece of land, and the soil, and the young and other products of animals.
which tend directly to meet the needs of the said
industry or works; Industrial fruits are those produced by lands of any kind
through cultivation or labor.
(6) Animal houses, pigeon-houses, beehives, fish
ponds or breeding places of similar nature, in Civil fruits are the rents of buildings, the price of leases of
case their owner has placed them or preserves lands and other property and the amount of perpetual or
them with the intention to have them permanently life annuities or other similar income.
attached to the land, and forming a permanent
part of it; the animals in these places are included;
Art. 445 - Whatever is built, planted or sown on the land of
another and the improvements or repairs made thereon,
(7) Fertilizer actually used on a piece of land;
belong to the owner of the land, subject to the provisions
(8) Mines, quarries, and slag dumps, while the of the following articles.
matter thereof forms part of the bed, and waters
either running or stagnant; Art. 447 - The owner of the land who makes thereon,
personally or through another, plantings, constructions or
(9) Docks and structures which, though floating, works with the materials of another, shall pay their value;
are intended by their nature and object to remain and, if he acted in bad faith, he shall also be obliged to the
at a fixed place on a river, lake, or coast; reparation of damages. The owner of the materials shall
have the right to remove them only in case he can do so
13
without injury to the work constructed, or without the sower, the latter may demand from the landowner the
plantings, constructions or works being destroyed. value of the materials and labor.
However, if the landowner acted in bad faith, the owner of
the materials may remove them in any event, with a right Art. 457 - the owners of lands adjoining the banks of rivers
to be indemnified for damages. belong the accretion which they gradually receive from the
effects of the current of the waters
Art. 449 - He who builds, plants or sows in bad faith on the
land of another, loses what is built, planted or sown without Art. 459 - Whenever the current of a river, creek or torrent
right to indemnity. segregates from an estate on its bank a known portion of
land and transfers it to another estate, the owner of the
Art. 450 - The owner of the land on which anything has land to which the segregated portion belonged retains the
been built, planted or sown in bad faith may demand the ownership of it, provided that he removes the same within
demolition of the work, or that the planting or sowing be two years.
removed, in order to replace things in their former condition
at the expense of the person who built, planted or sowed; Art. 460 - Trees uprooted and carried away by the current
or he may compel the builder or planter to pay the price of of the waters belong to the owner of the land upon which
the land, and the sower the proper rent. they may be cast, if the owners do not claim them within
six months. If such owners claim them, they shall pay the
Art. 451 - In the cases of the two preceding articles, the expenses incurred in gathering them or putting them in a
landowner is entitled to damages from the builder, planter safe place.
or sower.
Art. 472 - If by the will of their owners two things of the
Art. 452 - The builder, planter or sower in bad faith is same or different kinds are mixed, or if the mixture occurs
entitled to reimbursement for the necessary expenses of by chance, and in the latter case the things are not
preservation of the land. separable without injury, each owner shall acquire a right
proportional to the part belonging to him, bearing in mind
Art. 453 - If there was bad faith, not only on the part of the the value of the things mixed or confused.
person who built, planted or sowed on the land of another,
but also on the part of the owner of such land, the rights of Art. 485 - The share of the co-owners, in the benefits as
one and the other shall be the same as though both had well as in the charges, shall be proportional to their
acted in good faith. respective interests. Any stipulation in a contract to the
contrary shall be void.
It is understood that there is bad faith on the part of the
landowner whenever the act was done with his knowledge The portions belonging to the co-owners in the co-
and without opposition on his part. ownership shall be presumed equal, unless the contrary is
proved.
Art. 454 - When the landowner acted in bad faith and the
builder, planter or sower proceeded in good faith, the Art. 488 - Each co-owner shall have a right to compel the
provisions of article 447 shall apply. other co-owners to contribute to the expenses of
preservation of the thing or right owned in common and to
Art. 455 - If the materials, plants or seeds belong to a third the taxes. Any one of the latter may exempt himself from
person who has not acted in bad faith, the owner of the this obligation by renouncing so much of his undivided
land shall answer subsidiarily for their value and only in the interest as may be equivalent to his share of the expenses
event that the one who made use of them has no property
and taxes. No such waiver shall be made if it is prejudicial
with which to pay.
to the co-ownership.
This provision shall not apply if the owner makes use of the
right granted by article 450. If the owner of the materials, Art. 489 - Repairs for preservation may be made at the will
plants or seeds has been paid by the builder, planter or of one of the co-owners, but he must, if practicable, first
14
notify his co-owners of the necessity for such repairs. Neither shall there be any partition when it is prohibited by
Expenses to improve or embellish the thing shall be law.
decided upon by a majority as determined in Article 492.
No prescription shall run in favor of a co-owner or co-heir
against his co-owners or co-heirs so long as he expressly
Art. 491 - None of the co-owners shall, without the consent or impliedly recognizes the co-ownership.
of the others, make alterations in the thing owned in
common, even though benefits for all would result Art. 495 - Notwithstanding the provisions of the preceding
therefrom. However, if the withholding of the consent by article, the co-owners cannot demand a physical division
one or more of the co-owners is clearly prejudicial to the of the thing owned in common, when to do so would render
common interest, the courts may afford adequate relief. it unserviceable for the use for which it is intended. But the
co-ownership may be terminated in accordance with Article
Art. 492 - For the administration and better enjoyment of
the thing owned in common, the resolutions of the majority 498.
of the co-owners shall be binding.
Art. 501 - Every co-owner shall, after partition, be liable for
There shall be no majority unless the resolution is defects of title and quality of the portion assigned to each
approved by the co-owners who represent the controlling of the other co-owners.
interest in the object of the co-ownership.
Art. 526 - He is deemed a possessor in good faith who is
Should there be no majority, or should the resolution of the not aware that there exists in his title or mode of acquisition
majority be seriously prejudicial to those interested in the any flaw which invalidates it.
property owned in common, the court, at the instance of an
interested party, shall order such measures as it may deem He is deemed a possessor in bad faith who possesses in
proper, including the appointment of an administrator. any case contrary to the foregoing.

Whenever a part of the thing belongs exclusively to one of Mistake upon a doubtful or difficult question of law may be
the co-owners, and the remainder is owned in common, the basis of good faith.
the preceding provision shall apply only to the part owned
in common. Art. 546 - Necessary expenses shall be refunded to every
possessor; but only the possessor in good faith may retain
Art. 493 - Each co-owner shall have the full ownership of the thing until he has been reimbursed therefor.
his part and of the fruits and benefits pertaining thereto,
and he may therefore alienate, assign or mortgage it, and Useful expenses shall be refunded only to the possessor
even substitute another person in its enjoyment, except in good faith with the same right of retention, the person
who has defeated him in the possession having the option
when personal rights are involved. But the effect of the
of refunding the amount of the expenses or of paying the
alienation or the mortgage, with respect to the co-owners, increase in value which the thing may have acquired by
shall be limited to the portion which may be alloted to him reason thereof.
in the division upon the termination of the co-ownership.
Art. 548 - Expenses for pure luxury or mere pleasure shall
Art. 494 - No co-owner shall be obliged to remain in the not be refunded to the possessor in good faith; but he may
co-ownership. Each co-owner may demand at any time the
remove the ornaments with which he has embellished the
partition of the thing owned in common, insofar as his
share is concerned. principal thing if it suffers no injury thereby, and if his
successor in the possession does not prefer to refund the
Nevertheless, an agreement to keep the thing undivided amount expended.
for a certain period of time, not exceeding ten years, shall
be valid. This term may be extended by a new agreement. Art. 549 - The possessor in bad faith shall reimburse the
fruits received and those which the legitimate possessor
A donor or testator may prohibit partition for a period which could have received, and shall have a right only to the
shall not exceed twenty years. expenses mentioned in paragraph 1 of Article 546 and in
15
Article 443. The expenses incurred in improvements for Art. 622 - Continuous nonapparent easements, and
pure luxury or mere pleasure shall not be refunded to the discontinuous ones, whether apparent or not, may be
possessor in bad faith, but he may remove the objects for acquired only by virtue of a title.
which such expenses have been incurred, provided that
the thing suffers no injury thereby, and that the lawful Art. 626 - The owner of the dominant estate cannot use
possessor does not prefer to retain them by paying the the easement except for the benefit of the immovable
value they may have at the time he enters into possession. originally contemplated. Neither can he exercise the
easement in any other manner than that previously
Art. 562 - Usufruct gives a right to enjoy the property of established.
another with the obligation of preserving its form and
substance, unless the title constituting it or the law Art. 649 - The owner, or any person who by virtue of a real
otherwise provides. right may cultivate or use any immovable, which is
surrounded by other immovables pertaining to other
Art. 603 - Usufruct is extinguished: persons and without adequate outlet to a public highway,
(1) By the death of the usufructuary, unless a is entitled to demand a right of way through the neighboring
contrary intention clearly appears; estates, after payment of the proper indemnity.

(2) By the expiration of the period for which it was Should this easement be established in such a manner that
constituted, or by the fulfillment of any resolutory its use may be continuous for all the needs of the dominant
condition provided in the title creating the estate, establishing a permanent passage, the indemnity
usufruct; shall consist of the value of the land occupied and the
amount of the damage caused to the servient estate.
(3) By merger of the usufruct and ownership in the
same person; In case the right of way is limited to the necessary passage
for the cultivation of the estate surrounded by others and
for the gathering of its crops through the servient estate
(4) By renunciation of the usufructuary;
without a permanent way, the indemnity shall consist in the
payment of the damage caused by such encumbrance.
(5) By the total loss of the thing in usufruct;
This easement is not compulsory if the isolation of the
(6) By the termination of the right of the person immovable is due to the proprietor's own acts.
constituting the usufruct;
Art. 650 - The easement of right of way shall be
(7) By prescription.
established at the point least prejudicial to the servient
estate, and, insofar as consistent with this rule, where the
Art. 620 - Continuous and apparent easements are
distance from the dominant estate to a public highway may
acquired either by virtue of a title or by prescription of ten
be the shortest.
years.

Art. 651 - The width of the easement of right of way shall


Art. 621 - In order to acquire by prescription the easements
be that which is sufficient for the needs of the dominant
referred to in the preceding article, the time of possession
estate, and may accordingly be changed from time to time.
shall be computed thus: in positive easements, from the
day on which the owner of the dominant estate, or the
Art. 668 - The period of prescription for the acquisition of
person who may have made use of the easement, an easement of light and view shall be counted:
commenced to exercise it upon the servient estate; and in
negative easements, from the day on which the owner of (1) From the time of the opening of the window, if
the dominant estate forbade, by an instrument it is through a party wall; or
acknowledged before a notary public, the owner of the
servient estate, from executing an act which would be (2) From the time of the formal prohibition upon
lawful without the easement. the proprietor of the adjoining land or tenement, if
16
the window is through a wall on the dominant be obliged, as the case may be, to reimburse the
estate. expenses.

Art. 669 - When the distances in Article 670 are not Art. 725 - Donation is an act of liberality whereby a person
observed, the owner of a wall which is not party wall, disposes gratuitously of a thing or right in favor of another,
adjoining a tenement or piece of land belonging to another, who accepts it.
can make in it openings to admit light at the height of the
ceiling joints or immediately under the ceiling, and of the
size of thirty centimeters square, and, in every case, with Art. 726 - When a person gives to another a thing or right
an iron grating imbedded in the wall and with a wire screen. on account of the latter's merits or of the services rendered
by him to the donor, provided they do not constitute a
Nevertheless, the owner of the tenement or property demandable debt, or when the gift imposes upon the
adjoining the wall in which the openings are made can donee a burden which is less than the value of the thing
close them should he acquire part-ownership thereof, if given, there is also a donation.
there be no stipulation to the contrary.
Art. 728 - Donations which are to take effect upon the
He can also obstruct them by constructing a building on his
death of the donor partake of the nature of testamentary
land or by raising a wall thereon contiguous to that having
such openings, unless an easement of light has been provisions, and shall be governed by the rules established
acquired. in the Title on Succession.

Art. 670 - No windows, apertures, balconies, or other Art. 733 - Donations with an onerous cause shall be
similar projections which afford a direct view upon or governed by the rules on contracts and remuneratory
towards an adjoining land or tenement can be made, donations by the provisions of the present Title as regards
without leaving a distance of two meters between the wall that portion which exceeds the value of the burden
in which they are made and such contiguous property.
imposed.
Neither can side or oblique views upon or towards such
conterminous property be had, unless there be a distance Art. 734 - The donation is perfected from the moment the
of sixty centimeters. donor knows of the acceptance by the donee.

The nonobservance of these distances does not give rise Art. 737 - The donor's capacity shall be determined as of
to prescription. the time of the making of the donation.

Art. 719 - Whoever finds a movable, which is not treasure, Art. 739 - The following donations shall be void:
must return it to its previous possessor. If the latter is
unknown, the finder shall immediately deposit it with the (1) Those made between persons who were guilty
mayor of the city or municipality where the finding has of adultery or concubinage at the time of the
taken place. donation;

The finding shall be publicly announced by the mayor for (2) Those made between persons found guilty of
two consecutive weeks in the way he deems best. the same criminal offense, in consideration
thereof;
If the movable cannot be kept without deterioration, or
without expenses which considerably diminish its value, it (3) Those made to a public officer or his wife,
shall be sold at public auction eight days after the descedants and ascendants, by reason of his
publication. office.

Six months from the publication having elapsed without the In the case referred to in No. 1, the action for declaration
owner having appeared, the thing found, or its value, shall of nullity may be brought by the spouse of the donor or
be awarded to the finder. The finder and the owner shall donee; and the guilt of the donor and donee may be proved
by preponderance of evidence in the same action.
17
Art. 740 - Incapacity to succeed by will shall be applicable sign, as aforesaid, each and every page thereof, except
to donations inter vivos. the last, on the left margin, and all the pages shall be
numbered correlatively in letters placed on the upper part
Art. 749 - In order that the donation of an immovable may of each page.
be valid, it must be made in a public document, specifying
therein the property donated and the value of the charges The attestation shall state the number of pages used upon
which the donee must satisfy. which the will is written, and the fact that the testator signed
the will and every page thereof, or caused some other
The acceptance may be made in the same deed of person to write his name, under his express direction, in
donation or in a separate public document, but it shall not the presence of the instrumental witnesses, and that the
take effect unless it is done during the lifetime of the donor. latter witnessed and signed the will and all the pages
thereof in the presence of the testator and of one another.
If the acceptance is made in a separate instrument, the
donor shall be notified thereof in an authentic form, and this If the attestation clause is in a language not known to the
step shall be noted in both instruments. witnesses, it shall be interpreted to them.

Art. 751 - Donations cannot comprehend future property. Art. 815 - When a Filipino is in a foreign country, he is
authorized to make a will in any of the forms established
By future property is understood anything which the donor by the law of the country in which he may be. Such will may
cannot dispose of at the time of the donation. be probated in the Philippines.

Art. 755 - The right to dispose of some of the things Art. 816 - The will of an alien who is abroad produces
donated, or of some amount which shall be a charge effect in the Philippines if made with the formalities
thereon, may be reserved by the donor; but if he should die prescribed by the law of the place in which he resides, or
without having made use of this right, the property or according to the formalities observed in his country, or in
amount reserved shall belong to the donee. conformity with those which this Code prescribes.

Art. 764 - The donation shall be revoked at the instance of Art. 838 - No will shall pass either real or personal property
the donor, when the donee fails to comply with any of the unless it is proved and allowed in accordance with the
conditions which the former imposed upon the latter. Rules of Court.

In this case, the property donated shall be returned to the The testator himself may, during his lifetime, petition the
donor, the alienations made by the donee and the court having jurisdiction for the allowance of his will. In
mortgages imposed thereon by him being void, with the such case, the pertinent provisions of the Rules of Court
limitations established, with regard to third persons, by the for the allowance of wills after the testator's a death shall
Mortgage Law and the Land Registration Laws. govern.

This action shall prescribe after four years from the The Supreme Court shall formulate such additional Rules
noncompliance with the condition, may be transmitted to of Court as may be necessary for the allowance of wills on
the heirs of the donor, and may be exercised against the petition of the testator.
donee's heirs.
Subject to the right of appeal, the allowance of the will,
Art. 805 - Every will, other than a holographic will, must be either during the lifetime of the testator or after his death,
subscribed at the end thereof by the testator himself or by shall be conclusive as to its due execution.
the testator's name written by some other person in his
presence, and by his express direction, and attested and Art. 854 - The preterition or omission of one, some, or all
subscribed by three or more credible witnesses in the of the compulsory heirs in the direct line, whether living at
presence of the testator and of one another. the time of the execution of the will or born after the death
of the testator, shall annul the institution of heir; but the
The testator or the person requested by him to write his devises and legacies shall be valid insofar as they are not
name and the instrumental witnesses of the will, shall also inofficious.
18
If the omitted compulsory heirs should die before the Code, shall annul the institution of heirs insofar as it may
testator, the institution shall be effectual, without prejudice prejudice the person disinherited; but the devises and
to the right of representation. legacies and other testamentary dispositions shall be valid
to such extent as will not impair the legitime.
Art. 856 - A voluntary heir who dies before the testator
transmits nothing to his heirs.
Art. 921 - The following shall be sufficient causes for
disinheriting a spouse:
A compulsory heir who dies before the testator, a person
(1) When the spouse has been convicted of an
incapacitated to succeed, and one who renounces the
attempt against the life of the testator, his or her
inheritance, shall transmit no right to his own heirs except
descendants, or ascendants;
in cases expressly provided for in this Code.
(2) When the spouse has accused the testator of
Art. 858 - Substitution of heirs may be:
a crime for which the law prescribes
imprisonment of six years or more, and the
(1) Simple or common; accusation has been found to be false;

(2) Brief or compendious; (3) When the spouse by fraud, violence,


intimidation, or undue influence cause the testator
(3) Reciprocal; or to make a will or to change one already made;

(4) Fideicommissary. (4) When the spouse has given cause for legal
separation;
Art. 863 - A fideicommissary substitution by virtue of which
the fiduciary or first heir instituted is entrusted with the (5) When the spouse has given grounds for the
obligation to preserve and to transmit to a second heir the loss of parental authority;
whole or part of the inheritance, shall be valid and shall
take effect, provided such substitution does not go beyond (6) Unjustifiable refusal to support the children or
the other spouse.
one degree from the heir originally instituted, and provided
further, that the fiduciary or first heir and the second heir
Art. 923 - The children and descendants of the person
are living at the time of the death of the testator.
disinherited shall take his or her place and shall preserve
the rights of compulsory heirs with respect to the legitime;
Art. 864 - A fideicommissary substitution can never burden
but the disinherited parent shall not have the usufruct or
the legitime.
administration of the property which constitutes the
Art. 865 - Every fideicommissary substitution must be legitime.
expressly made in order that it may be valid.
Art. 972 - The right of representation takes place in the
The fiduciary shall be obliged to deliver the inheritance to direct descending line, but never in the ascending.
the second heir, without other deductions than those which
arise from legitimate expenses, credits and improvements, Art. 975 - When children of one or more brothers or sisters
save in the case where the testator has provided of the deceased survive, they shall inherit from the latter by
otherwise.
representation, if they survive with their uncles or aunts.
But if they alone survive, they shall inherit in equal portions.
Art. 915 - A compulsory heir may, in consequence of
disinheritance, be deprived of his legitime, for causes
Art. 977 - Heirs who repudiate their share may not be
expressly stated by law.
represented.

Art. 918 - Disinheritance without a specification of the


Art. 981 - Should children of the deceased and
cause, or for a cause the truth of which, if contradicted, is
descendants of other children who are dead, survive, the
not proved, or which is not one of those set forth in this
19
former shall inherit in their own right, and the latter by right (2) The relatives of such priest or minister of the
of representation. gospel within the fourth degree, the church, order,
chapter, community, organization, or institution to
which such priest or minister may belong;
Art. 982 - The grandchildren and other descendants shall
inherit by right of representation, and if any one of them
(3) A guardian with respect to testamentary
should have died, leaving several heirs, the portion dispositions given by a ward in his favor before
pertaining to him shall be divided among the latter in equal the final accounts of the guardianship have been
portions. approved, even if the testator should die after the
approval thereof; nevertheless, any provision
Art. 990 - The hereditary rights granted by the two made by the ward in favor of the guardian when
preceding articles to illegitimate children shall be the latter is his ascendant, descendant, brother,
sister, or spouse, shall be valid;
transmitted upon their death to their descendants, who
shall inherit by right of representation from their deceased
(4) Any attesting witness to the execution of a will,
grandparent. the spouse, parents, or children, or any one
claiming under such witness, spouse, parents, or
Art. 992 - An illegitimate child has no right to inherit ab children;
intestato from the legitimate children and relatives of his
father or mother; nor shall such children or relatives inherit (5) Any physician, surgeon, nurse, health officer
in the same manner from the illegitimate child. or druggist who took care of the testator during his
last illness;
Art. 1001 - Should brothers and sisters or their children
(6) Individuals, associations and corporations not
survive with the widow or widower, the latter shall be
permitted by law to inherit.
entitled to one-half of the inheritance and the brothers and
sisters or their children to the other half. Art. 1028 - The prohibitions mentioned in article 739,
concerning donations inter vivos shall apply to
Art. 1015 - Accretion is a right by virtue of which, when two
testamentary provisions.
or more persons are called to the same inheritance, devise
or legacy, the part assigned to the one who renounces or Art. 1034 - In order to judge the capacity of the heir,
cannot receive his share, or who died before the testator, devisee or legatee, his qualification at the time of the death
is added or incorporated to that of his co-heirs, co- of the decedent shall be the criterion.
devisees, or co-legatees.
In cases falling under Nos. 2, 3, or 5 of Article 1032, it shall
Art. 1025 - In order to be capacitated to inherit, the heir, be necessary to wait until final judgment is rendered, and
devisee or legatee must be living at the moment the in the case falling under No. 4, the expiration of the month
succession opens, except in case of representation, when allowed for the report.
it is proper.
If the institution, devise or legacy should be conditional, the
A child already conceived at the time of the death of the time of the compliance with the condition shall also be
decedent is capable of succeeding provided it be born later considered.
under the conditions prescribed in article 41.
Art. 1035 - If the person excluded from the inheritance by
Art. 1027 - The following are incapable of succeeding: reason of incapacity should be a child or descendant of the
decedent and should have children or descendants, the
(1) The priest who heard the confession of the latter shall acquire his right to the legitime.
testator during his last illness, or the minister of
the gospel who extended spiritual aid to him
Art. 1039 - Capacity to succeed is governed by the law of
during the same period;
the nation of the decedent.
20
Art. 1110 - Prescription, acquisitive and extinctive, runs in interest, he shall be responsible for any fortuitous event
favor of, or against a married woman. until he has effected the delivery.

Art. 1120 - Possession is interrupted for the purposes of Art. 1167 - If a person obliged to do something fails to do
it, the same shall be executed at his cost.
prescription, naturally or civilly
This same rule shall be observed if he does it in
Art. 1127 - The good faith of the possessor consists in the contravention of the tenor of the obligation. Furthermore, it
reasonable belief that the person from whom he received may be decreed that what has been poorly done be
the thing was the owner thereof, and could transmit his undone.
ownership.
Art. 1169 - Those obliged to deliver or to do something
Art. 1129 - For the purposes of prescription, there is just incur in delay from the time the obligee judicially or
title when the adverse claimant came into possession of extrajudicially demands from them the fulfillment of their
obligation.
the property through one of the modes recognized by law
for the acquisition of ownership or other real rights, but the However, the demand by the creditor shall not be
grantor was not the owner or could not transmit any right. necessary in order that delay may exist:

Art. 1132 - The ownership of movables prescribes through (1) When the obligation or the law expressly so
uninterrupted possession for four years in good faith. declare; or

The ownership of personal property also prescribes (2) When from the nature and the circumstances
through uninterrupted possession for eight years, without of the obligation it appears that the designation of
need of any other condition. the time when the thing is to be delivered or the
service is to be rendered was a controlling motive
With regard to the right of the owner to recover personal for the establishment of the contract; or
property lost or of which he has been illegally deprived, as
well as with respect to movables acquired in a public sale, (3) When demand would be useless, as when the
fair, or market, or from a merchant's store the provisions of obligor has rendered it beyond his power to
Articles 559 and 1505 of this Code shall be observed. perform.

Art. 1137 - Ownership and other real rights over In reciprocal obligations, neither party incurs in delay if the
immovables also prescribe through uninterrupted adverse other does not comply or is not ready to comply in a proper
possession thereof for thirty years, without need of title or manner with what is incumbent upon him. From the
of good faith. moment one of the parties fulfills his obligation, delay by
the other begins. (1100a)
Art. 1164 – The creditor has a right to the fruits of the thing
Art. 1170. Those who in the performance of their
from the time the obligation to deliver it arises. However, obligations are guilty of fraud, negligence, or delay, and
he shall acquire no real right over it until the same has been those who in any manner contravene the tenor thereof, are
delivered to him. liable for damages.

Art. 1165 - When what is to be delivered is a determinate Art. 1174 - Except in cases expressly specified by the law,
thing, the creditor, in addition to the right granted him by or when it is otherwise declared by stipulation, or when the
Article 1170, may compel the debtor to make the delivery.
nature of the obligation requires the assumption of risk, no
If the thing is indeterminate or generic, he may ask that the person shall be responsible for those events which could
obligation be complied with at the expense of the debtor. not be foreseen, or which, though foreseen, were
inevitable.
If the obligor delays, or has promised to deliver the same
thing to two or more persons who do not have the same
21
Art. 1180 - When the debtor binds himself to pay when his after he has chosen fulfillment, if the latter should become
means permit him to do so, the obligation shall be deemed impossible.
to be one with a period, subject to the provisions of Article
1197. The court shall decree the rescission claimed, unless there
be just cause authorizing the fixing of a period.
Art. 1181 - In conditional obligations, the acquisition of This is understood to be without prejudice to the rights of
rights, as well as the extinguishment or loss of those third persons who have acquired the thing, in accordance
already acquired, shall depend upon the happening of the with Articles 1385 and 1388 and the Mortgage Law
event which constitutes the condition.
Art. 1196 - Whenever in an obligation a period is
Art. 1189 - When the conditions have been imposed with designated, it is presumed to have been established for the
the intention of suspending the efficacy of an obligation to benefit of both the creditor and the debtor, unless from the
give, the following rules shall be observed in case of the
tenor of the same or other circumstances it should appear
improvement, loss or deterioration of the thing during the
pendency of the condition: that the period has been established in favor of one or of
the other.
(1) If the thing is lost without the fault of the
debtor, the obligation shall be extinguished; Art. 1198 - The debtor shall lose every right to make use
of the period:
(2) If the thing is lost through the fault of the
debtor, he shall be obliged to pay damages; it is (1) When after the obligation has been contracted, he
understood that the thing is lost when it perishes, becomes insolvent, unless he gives a guaranty or security
or goes out of commerce, or disappears in such a for the debt;
way that its existence is unknown or it cannot be
recovered; (2) When he does not furnish to the creditor the guaranties
or securities which he has promised;
(3) When the thing deteriorates without the fault
of the debtor, the impairment is to be borne by the (3) When by his own acts he has impaired said guaranties
creditor; or securities after their establishment, and when through a
fortuitous event they disappear, unless he immediately
(4) If it deteriorates through the fault of the debtor, gives new ones equally satisfactory;
the creditor may choose between the rescission
of the obligation and its fulfillment, with indemnity (4) When the debtor violates any undertaking, in
for damages in either case; consideration of which the creditor agreed to the period;

(5) If the thing is improved by its nature, or by (5) When the debtor attempts to abscond.
time, the improvement shall inure to the benefit of
the creditor; Art. 1207 - The concurrence of two or more creditors or of
two or more debtors in one and the same obligation does
(6) If it is improved at the expense of the debtor, not imply that each one of the former has a right to
he shall have no other right than that granted to
demand, or that each one of the latter is bound to render,
the usufructuary.
entire compliance with the prestation. There is a solidary
Art. 1191 - The power to rescind obligations is implied in liability only when the obligation expressly so states, or
reciprocal ones, in case one of the obligors should not when the law or the nature of the obligation requires
comply with what is incumbent upon him. solidarity.

The injured party may choose between the fulfillment and Art. 1211 - Solidarity may exist although the creditors and
the rescission of the obligation, with the payment of the debtors may not be bound in the same manner and by
damages in either case. He may also seek rescission, even the same periods and conditions.
22
Art. 1216 - The creditor may proceed against any one of the prestations in which the obligation consists. Neither
the solidary debtors or some or all of them simultaneously. may the debtor be required to make partial payments.
The demand made against one of them shall not be an
obstacle to those which may subsequently be directed However, when the debt is in part liquidated and in part
unliquidated, the creditor may demand and the debtor may
against the others, so long as the debt has not been fully effect the payment of the former without waiting for the
collected. liquidation of the latter.

Art. 1217 - Payment made by one of the solidary debtors Art. 1249 - The payment of debts in money shall be made
extinguishes the obligation. If two or more solidary debtors in the currency stipulated, and if it is not possible to deliver
offer to pay, the creditor may choose which offer to accept. such currency, then in the currency which is legal tender in
the Philippines.
He who made the payment may claim from his co-debtors
only the share which corresponds to each, with the interest The delivery of promissory notes payable to order, or bills
for the payment already made. If the payment is made of exchange or other mercantile documents shall produce
before the debt is due, no interest for the intervening period the effect of payment only when they have been cashed,
may be demanded. or when through the fault of the creditor they have been
impaired.
When one of the solidary debtors cannot, because of his
insolvency, reimburse his share to the debtor paying the In the meantime, the action derived from the original
obligation, such share shall be borne by all his co-debtors, obligation shall be held in the abeyance.
in proportion to the debt of each.
Art. 1251 - Payment shall be made in the place designated
Art. 1220 - The remission of the whole obligation, obtained in the obligation.
by one of the solidary debtors, does not entitle him to
reimbursement from his co-debtors. There being no express stipulation and if the undertaking
is to deliver a determinate thing, the payment shall be
Art. 1235 - When the obligee accepts the performance, made wherever the thing might be at the moment the
knowing its incompleteness or irregularity, and without obligation was constituted.
expressing any protest or objection, the obligation is
In any other case the place of payment shall be the
deemed fully complied with. domicile of the debtor.

Art. 1240 - Payment shall be made to the person in whose If the debtor changes his domicile in bad faith or after he
favor the obligation has been constituted, or his successor has incurred in delay, the additional expenses shall be
in interest, or any person authorized to receive it. borne by him.

Art. 1245 - Dation in payment, whereby property is These provisions are without prejudice to venue under the
alienated to the creditor in satisfaction of a debt in money, Rules of Court.
shall be governed by the law of sales.
Art. 1252 - He who has various debts of the same kind in
favor of one and the same creditor, may declare at the time
Art. 1246 - When the obligation consists in the delivery of of making the payment, to which of them the same must
an indeterminate or generic thing, whose quality and be applied. Unless the parties so stipulate, or when the
circumstances have not been stated, the creditor cannot application of payment is made by the party for whose
demand a thing of superior quality. Neither can the debtor benefit the term has been constituted, application shall not
deliver a thing of inferior quality. The purpose of the be made as to debts which are not yet due.
obligation and other circumstances shall be taken into
consideration. If the debtor accepts from the creditor a receipt in which an
application of the payment is made, the former cannot
complain of the same, unless there is a cause for
Art. 1248 - Unless there is an express stipulation to that
invalidating the contract.
effect, the creditor cannot be compelled partially to receive
23
Art. 1253 - If the debt produces interest, payment of the The consignation having been made, the interested parties
principal shall not be deemed to have been made until the shall also be notified thereof.
interests have been covered.
Art. 1259 - The expenses of consignation, when properly
Art. 1255 - The debtor may cede or assign his property to made, shall be charged against the creditor.
his creditors in payment of his debts. This cession, unless
Art. 1260 - Once the consignation has been duly made,
there is stipulation to the contrary, shall only release the
the debtor may ask the judge to order the cancellation of
debtor from responsibility for the net proceeds of the thing the obligation.
assigned. The agreements which, on the effect of the
cession, are made between the debtor and his creditors Before the creditor has accepted the consignation, or
shall be governed by special laws. before a judicial declaration that the consignation has been
properly made, the debtor may withdraw the thing or the
Art. 1256 - If the creditor to whom tender of payment has sum deposited, allowing the obligation to remain in force.
been made refuses without just cause to accept it, the
debtor shall be released from responsibility by the Art. 1261 - If, the consignation having been made, the
consignation of the thing or sum due. creditor should authorize the debtor to withdraw the same,
he shall lose every preference which he may have over the
Consignation alone shall produce the same effect in the
thing. The co-debtors, guarantors and sureties shall be
following cases:
released.
(1) When the creditor is absent or unknown, or
does not appear at the place of payment; Art. 1262 - An obligation which consists in the delivery of
a determinate thing shall be extinguished if it should be lost
(2) When he is incapacitated to receive the or destroyed without the fault of the debtor, and before he
payment at the time it is due; has incurred in delay.

(3) When, without just cause, he refuses to give a When by law or stipulation, the obligor is liable even for
receipt; fortuitous events, the loss of the thing does not extinguish
the obligation, and he shall be responsible for damages.
The same rule applies when the nature of the obligation
(4) When two or more persons claim the same
requires the assumption of risk.
right to collect;

(5) When the title of the obligation has been lost. Art. 1266 - The debtor in obligations to do shall also be
released when the prestation becomes legally or physically
impossible without the fault of the obligor.

Art. 1257 - In order that the consignation of the thing due Art. 1267 - When the service has become so difficult as to
may release the obligor, it must first be announced to the be manifestly beyond the contemplation of the parties, the
persons interested in the fulfillment of the obligation. obligor may also be released therefrom, in whole or in part.

The consignation shall be ineffectual if it is not made strictly Art. 1278 - Compensation shall take place when two
in consonance with the provisions which regulate payment. persons, in their own right, are creditors and debtors of
(1177)
each other.
Art. 1258. Consignation shall be made by depositing the
Art. 1279 - In order that compensation may be proper, it is
things due at the disposal of judicial authority, before whom
necessary:
the tender of payment shall be proved, in a proper case,
and the announcement of the consignation in other cases.
(1) That each one of the obligors be bound
principally, and that he be at the same time a
principal creditor of the other;
24
(2) That both debts consist in a sum of money, or is not sufficient. The contracting parties must have clearly
if the things due are consumable, they be of the and deliberately conferred a favor upon a third person.
same kind, and also of the same quality if the
latter has been stated; Art. 1314 - Any third person who induces another to violate
his contract shall be liable for damages to the other
(3) That the two debts be due; contracting party.
(4) That they be liquidated and demandable;
Art. 1323 - An offer becomes ineffective upon the death,
(5) That over neither of them there be any civil interdiction, insanity, or insolvency of either party
retention or controversy, commenced by third before acceptance is conveyed.
persons and communicated in due time to the
debtor. Art. 1324 - When the offerer has allowed the offeree a
certain period to accept, the offer may be withdrawn at any
Art. 1291 - Obligations may be modified by: time before acceptance by communicating such
(1) Changing their object or principal conditions; withdrawal, except when the option is founded upon a
consideration, as something paid or promised.
(2) Substituting the person of the debtor;
Art. 1326 - Advertisements for bidders are simply
(3) Subrogating a third person in the rights of the
creditor. invitations to make proposals, and the advertiser is not
bound to accept the highest or lowest bidder, unless the
Art. 1292 - In order that an obligation may be extinguished contrary appears.
by another which substitute the same, it is imperative that
Art. 1327 - The following cannot give consent to a contract:
it be so declared in unequivocal terms, or that the old and
the new obligations be on every point incompatible with
(1) Unemancipated minors;
each other.
(2) Insane or demented persons, and deaf-mutes
Art. 1296 - When the principal obligation is extinguished in who do not know how to write.
consequence of a novation, accessory obligations may
subsist only insofar as they may benefit third persons who Art. 1339 - Failure to disclose facts, when there is a duty
did not give their consent. to reveal them, as when the parties are bound by
confidential relations, constitutes fraud.
Art. 1306 - The contracting parties may establish such
stipulations, clauses, terms and conditions as they may Art. 1390 - The following contracts are voidable or
deem convenient, provided they are not contrary to law, annullable, even though there may have been no damage
morals, good customs, public order, or public policy. to the contracting parties:
(1) Those where one of the parties is incapable of
Art. 1311 - Contracts take effect only between the parties, giving consent to a contract;
their assigns and heirs, except in case where the rights and
obligations arising from the contract are not transmissible (2) Those where the consent is vitiated by
by their nature, or by stipulation or by provision of law. The mistake, violence, intimidation, undue influence
heir is not liable beyond the value of the property he or fraud.
received from the decedent.
These contracts are binding, unless they are annulled by a
If a contract should contain some stipulation in favor of a proper action in court. They are susceptible of ratification.
third person, he may demand its fulfillment provided he
communicated his acceptance to the obligor before its Art. 1391 - The action for annulment shall be brought
revocation. A mere incidental benefit or interest of a person within four years.
25
This period shall begin: pay at the time some part of the
purchase money; but when a sale is
In cases of intimidation, violence or undue made by auction and entry is made by
influence, from the time the defect of the consent the auctioneer in his sales book, at the
ceases. time of the sale, of the amount and kind
of property sold, terms of sale, price,
In case of mistake or fraud, from the time of the names of the purchasers and person on
discovery of the same. whose account the sale is made, it is a
sufficient memorandum;
And when the action refers to contracts entered into by
minors or other incapacitated persons, from the time the (e) An agreement of the leasing for a
guardianship ceases. longer period than one year, or for the
sale of real property or of an interest
therein;
Art. 1399 - When the defect of the contract consists in the
incapacity of one of the parties, the incapacitated person is
(f) A representation as to the credit of a
not obliged to make any restitution except insofar as he third person.
has been benefited by the thing or price received by him.
(3) Those where both parties are incapable of
Art. 1403 - The following contracts are unenforceable, giving consent to a contract.
unless they are ratified:
(1) Those entered into in the name of another Art. 1411 - When the nullity proceeds from the illegality of
person by one who has been given no authority the cause or object of the contract, and the act constitutes
or legal representation, or who has acted beyond a criminal offense, both parties being in pari delicto, they
his powers; shall have no action against each other, and both shall be
prosecuted. Moreover, the provisions of the Penal Code
(2) Those that do not comply with the Statute of relative to the disposal of effects or instruments of a crime
Frauds as set forth in this number. In the following shall be applicable to the things or the price of the contract.
cases an agreement hereafter made shall be
unenforceable by action, unless the same, or This rule shall be applicable when only one of the parties
some note or memorandum, thereof, be in writing, is guilty; but the innocent one may claim what he has given,
and subscribed by the party charged, or by his and shall not be bound to comply with his promise.
agent; evidence, therefore, of the agreement
cannot be received without the writing, or a Art. 1412 - If the act in which the unlawful or forbidden
secondary evidence of its contents:
cause consists does not constitute a criminal offense, the
following rules shall be observed:
(a) An agreement that by its terms is not
to be performed within a year from the (1) When the fault is on the part of both
making thereof; contracting parties, neither may recover what he
has given by virtue of the contract, or demand the
(b) A special promise to answer for the performance of the other's undertaking;
debt, default, or miscarriage of another;
(2) When only one of the contracting parties is at
(c) An agreement made in consideration fault, he cannot recover what he has given by
of marriage, other than a mutual promise reason of the contract, or ask for the fulfillment of
to marry; what has been promised him. The other, who is
not at fault, may demand the return of what he has
(d) An agreement for the sale of goods, given without any obligation to comply his
chattels or things in action, at a price not promise.
less than five hundred pesos, unless the
buyer accept and receive part of such
goods and chattels, or the evidences, or
some of them, of such things in action or
26
Art. 1413 - Interest paid in excess of the interest allowed trustee of an implied trust for the benefit of the person from
by the usury laws may be recovered by the debtor, with whom the property comes.
interest thereon from the date of the payment.
Art. 1475 - The contract of sale is perfected at the moment
Art. 1420 - In case of a divisible contract, if the illegal terms there is a meeting of minds upon the thing which is the
can be separated from the legal ones, the latter may be object of the contract and upon the price.
enforced.
From that moment, the parties may reciprocally demand
performance, subject to the provisions of the law governing
Art. 1423 - Obligations are civil or natural. Civil obligations the form of contracts.
give a right of action to compel their performance. Natural
obligations, not being based on positive law but on equity Art. 1479 - A promise to buy and sell a determinate thing
and natural law, do not grant a right of action to enforce for a price certain is reciprocally demandable.
their performance, but after voluntary fulfillment by the
obligor, they authorize the retention of what has been An accepted unilateral promise to buy or to sell a
delivered or rendered by reason thereof. Some natural determinate thing for a price certain is binding upon the
promissor if the promise is supported by a consideration
obligations are set forth in the following articles.
distinct from the price.
Art. 1424 - When a right to sue upon a civil obligation has
Art. 1484 - In a contract of sale of personal property the
lapsed by extinctive prescription, the obligor who
price of which is payable in installments, the vendor may
voluntarily performs the contract cannot recover what he
exercise any of the following remedies:
has delivered or the value of the service he has rendered.
(1) Exact fulfillment of the obligation, should the
Art. 1431 - Through estoppel an admission or vendee fail to pay;
representation is rendered conclusive upon the person
making it, and cannot be denied or disproved as against (2) Cancel the sale, should the vendee's failure to
the person relying thereon. pay cover two or more installments;

Art. 1440 - A person who establishes a trust is called the (3) Foreclose the chattel mortgage on the thing
trustor; one in whom confidence is reposed as regards sold, if one has been constituted, should the
vendee's failure to pay cover two or more
property for the benefit of another person is known as the
installments. In this case, he shall have no further
trustee; and the person for whose benefit the trust has action against the purchaser to recover any
been created is referred to as the beneficiary. unpaid balance of the price. Any agreement to the
contrary shall be void.
Art. 1448 – Associations and societies, whose articles are
kept secret among the members, and wherein any one of Art. 1485 - The preceding article shall be applied to
the members may contract in his own name with third contracts purporting to be leases of personal property with
persons, shall have no juridical personality, and shall be option to buy, when the lessor has deprived the lessee of
governed by the provisions relating to co-ownership. the possession or enjoyment of the thing.

Art. 1453 – When property is conveyed to a person in Art. 1496 - The ownership of the thing sold is acquired by
reliance upon his declared intention to hold it for, or transfer the vendee from the moment it is delivered to him in any of
it to another or the grantor, there is an implied trust in favor the ways specified in Articles 1497 to 1501, or in any other
of the person whose benefit is contemplated. manner signifying an agreement that the possession is
transferred from the vendor to the vendee.
Art. 1456 - If property is acquired through mistake or fraud,
the person obtaining it is, by force of law, considered a
27
Art. 1497 - The thing sold shall be understood as (3) When upon or after the expiration of the right
delivered, when it is placed in the control and possession to repurchase another instrument extending the
of the vendee. period of redemption or granting a new period is
executed;
Art. 1504 - Unless otherwise agreed, the goods remain at
the seller's risk until the ownership therein is transferred to (4) When the purchaser retains for himself a part
the buyer, but when the ownership therein is transferred to of the purchase price;
the buyer the goods are at the buyer's risk whether actual
delivery has been made or not, except that: (5) When the vendor binds himself to pay the
taxes on the thing sold;
(1) Where delivery of the goods has been made
to the buyer or to a bailee for the buyer, in (6) In any other case where it may be fairly
pursuance of the contract and the ownership in inferred that the real intention of the parties is that
the goods has been retained by the seller merely the transaction shall secure the payment of a debt
to secure performance by the buyer of his or the performance of any other obligation.
obligations under the contract, the goods are at
the buyer's risk from the time of such delivery; In any of the foregoing cases, any money, fruits, or other
benefit to be received by the vendee as rent or otherwise
(2) Where actual delivery has been delayed shall be considered as interest which shall be subject to
through the fault of either the buyer or seller the the usury laws.
goods are at the risk of the party in fault.
Art. 1603 - In case of doubt, a contract purporting to be a
Art. 1537 - The vendor is bound to deliver the thing sold sale with right to repurchase shall be construed as an
and its accessions and accessories in the condition in equitable mortgage.
which they were upon the perfection of the contract.
Art. 1606 - The right referred to in Article 1601, in the
All the fruits shall pertain to the vendee from the day on absence of an express agreement, shall last four years
which the contract was perfected. from the date of the contract.

Art. 1544 - If the same thing should have been sold to Should there be an agreement, the period cannot exceed
different vendees, the ownership shall be transferred to the ten years.
person who may have first taken possession thereof in
good faith, if it should be movable property. However, the vendor may still exercise the right to
repurchase within thirty days from the time final judgment
Should it be immovable property, the ownership shall was rendered in a civil action on the basis that the contract
belong to the person acquiring it who in good faith first was a true sale with right to repurchase.
recorded it in the Registry of Property.
Art. 1607 - In case of real property, the consolidation of
Should there be no inscription, the ownership shall pertain ownership in the vendee by virtue of the failure of the
to the person who in good faith was first in the possession;
vendor to comply with the provisions of article 1616 shall
and, in the absence thereof, to the person who presents
the oldest title, provided there is good faith. not be recorded in the Registry of Property without a
judicial order, after the vendor has been duly heard.
Art. 1602 - The contract shall be presumed to be an
equitable mortgage, in any of the following cases: Art. 1619 - Legal redemption is the right to be subrogated,
upon the same terms and conditions stipulated in the
(1) When the price of a sale with right to contract, in the place of one who acquires a thing by
repurchase is unusually inadequate; purchase or dation in payment, or by any other transaction
whereby ownership is transmitted by onerous title.
(2) When the vendor remains in possession as
lessee or otherwise;
28
Art. 1620 - A co-owner of a thing may exercise the right of The debtor may exercise his right within thirty days from
redemption in case the shares of all the other co-owners or the date the assignee demands payment from him.
of any of them, are sold to a third person. If the price of the
alienation is grossly excessive, the redemptioner shall pay
only a reasonable one.
Art. 1647 - If a lease is to be recorded in the Registry of
Should two or more co-owners desire to exercise the right
Property, the following persons cannot constitute the same
of redemption, they may only do so in proportion to the
share they may respectively have in the thing owned in without proper authority: the husband with respect to the
common. wife's paraphernal real estate, the father or guardian as to
the property of the minor or ward, and the manager without
Art. 1621 - The owners of adjoining lands shall also have special power.
the right of redemption when a piece of rural land, the area
of which does not exceed one hectare, is alienated, unless Art. 1649 - The lessee cannot assign the lease without the
the grantee does not own any rural land. consent of the lessor, unless there is a stipulation to the
contrary.
This right is not applicable to adjacent lands which are
separated by brooks, drains, ravines, roads and other
apparent servitudes for the benefit of other estates. Art. 1650 - When in the contract of lease of things there is
no express prohibition, the lessee may sublet the thing
If two or more adjoining owners desire to exercise the right leased, in whole or in part, without prejudice to his
of redemption at the same time, the owner of the adjoining responsibility for the performance of the contract toward
land of smaller area shall be preferred; and should both the lessor.
lands have the same area, the one who first requested the
redemption. Art. 1655 - If the thing leased is totally destroyed by a
fortuitous event, the lease is extinguished. If the
Art. 1623 - The right of legal pre-emption or redemption
destruction is partial, the lessee may choose between a
shall not be exercised except within thirty days from the
notice in writing by the prospective vendor, or by the proportional reduction of the rent and a rescission of the
vendor, as the case may be. The deed of sale shall not be lease.
recorded in the Registry of Property, unless accompanied
by an affidavit of the vendor that he has given written notice Art. 1656 - The lessor of a business or industrial
thereof to all possible redemptioners. establishment may continue engaging in the same
business or industry to which the lessee devotes the thing
The right of redemption of co-owners excludes that of leased, unless there is a stipulation to the contrary.
adjoining owners.
Art. 1665 -The lessee shall return the thing leased, upon
Art. 1624 - An assignment of creditors and other
the termination of the lease, as he received it, save what
incorporeal rights shall be perfected in accordance with the
has been lost or impaired by the lapse of time, or by
provisions of Article 1475.
ordinary wear and tear, or from an inevitable cause.
Art. 1634 - When a credit or other incorporeal right in
litigation is sold, the debtor shall have a right to extinguish Art. 1667 - The lessee is responsible for the deterioration
it by reimbursing the assignee for the price the latter paid or loss of the thing leased, unless he proves that it took
therefor, the judicial costs incurred by him, and the interest place without his fault. This burden of proof on the lessee
on the price from the day on which the same was paid. does not apply when the destruction is due to earthquake,
flood, storm or other natural calamity.
A credit or other incorporeal right shall be considered in
litigation from the time the complaint concerning the same Art. 1670 - If at the end of the contract the lessee should
is answered.
continue enjoying the thing leased for fifteen days with the
acquiescence of the lessor, and unless a notice to the
29
contrary by either party has previously been given, it is reimburse said amount, the lessee may remove the
understood that there is an implied new lease, not for the improvements, even though the principal thing may suffer
period of the original contract, but for the time established damage thereby. He shall not, however, cause any more
impairment upon the property leased than is necessary.
in Articles 1682 and 1687. The other terms of the original
contract shall be revived. With regard to ornamental expenses, the lessee shall not
be entitled to any reimbursement, but he may remove the
Art. 1673 - The lessor may judicially eject the lessee for ornamental objects, provided no damage is caused to the
any of the following causes: principal thing, and the lessor does not choose to retain
them by paying their value at the time the lease is
(1) When the period agreed upon, or that which is extinguished.
fixed for the duration of leases under Articles
1682 and 1687, has expired; Art. 1680 - The lessee shall have no right to a reduction of
the rent on account of the sterility of the land leased, or by
(2) Lack of payment of the price stipulated; reason of the loss of fruits due to ordinary fortuitous events;
but he shall have such right in case of the loss of more than
(3) Violation of any of the conditions agreed upon one-half of the fruits through extraordinary and unforeseen
in the contract; fortuitous events, save always when there is a specific
stipulation to the contrary.
(4) When the lessee devotes the thing leased to
any use or service not stipulated which causes Extraordinary fortuitous events are understood to be: fire,
the deterioration thereof; or if he does not observe war, pestilence, unusual flood, locusts, earthquake, or
the requirement in No. 2 of Article 1657, as others which are uncommon, and which the contracting
regards the use thereof. parties could not have reasonably foreseen.

The ejectment of tenants of agricultural lands is governed Art. 1687 - If the period for the lease has not been fixed, it
by special laws. is understood to be from year to year, if the rent agreed
upon is annual; from month to month, if it is monthly; from
Art. 1676 - The purchaser of a piece of land which is under
week to week, if the rent is weekly; and from day to day, if
a lease that is not recorded in the Registry of Property may
terminate the lease, save when there is a stipulation to the the rent is to be paid daily. However, even though a
contrary in the contract of sale, or when the purchaser monthly rent is paid, and no period for the lease has been
knows of the existence of the lease. set, the courts may fix a longer term for the lease after the
lessee has occupied the premises for over one year. If the
If the buyer makes use of this right, the lessee may rent is weekly, the courts may likewise determine a longer
demand that he be allowed to gather the fruits of the period after the lessee has been in possession for over six
harvest which corresponds to the current agricultural year months. In case of daily rent, the courts may also fix a
and that the vendor indemnify him for damages suffered.
longer period after the lessee has stayed in the place for
If the sale is fictitious, for the purpose of extinguishing the over one month.
lease, the supposed vendee cannot make use of the right
granted in the first paragraph of this article. The sale is Art. 1700 - The relations between capital and labor are not
presumed to be fictitious if at the time the supposed merely contractual. They are so impressed with public
vendee demands the termination of the lease, the sale is interest that labor contracts must yield to the common
not recorded in the Registry of Property. good. Therefore, such contracts are subject to the special
laws on labor unions, collective bargaining, strikes and
Art. 1678 - If the lessee makes, in good faith, useful lockouts, closed shop, wages, working conditions, hours of
improvements which are suitable to the use for which the
lease is intended, without altering the form or substance of labor and similar subjects.
the property leased, the lessor upon the termination of the
lease shall pay the lessee one-half of the value of the Art. 1723 - The engineer or architect who drew up the
improvements at that time. Should the lessor refuse to plans and specifications for a building is liable for damages
if within fifteen years from the completion of the structure,
30
the same should collapse by reason of a defect in those Art. 1756 - In case of death of or injuries to passengers,
plans and specifications, or due to the defects in the common carriers are presumed to have been at fault or to
ground. The contractor is likewise responsible for the have acted negligently, unless they prove that they
damages if the edifice falls, within the same period, on
observed extraordinary diligence as prescribed in Articles
account of defects in the construction or the use of
materials of inferior quality furnished by him, or due to any 1733 and 1755.
violation of the terms of the contract. If the engineer or
architect supervises the construction, he shall be solidarily Art. 1759 - Common carriers are liable for the death of or
liable with the contractor. injuries to passengers through the negligence or wilful acts
of the former's employees, although such employees may
Acceptance of the building, after completion, does not have acted beyond the scope of their authority or in
imply waiver of any of the cause of action by reason of any violation of the orders of the common carriers.
defect mentioned in the preceding paragraph.
This liability of the common carriers does not cease upon
The action must be brought within ten years following the proof that they exercised all the diligence of a good father
collapse of the building. of a family in the selection and supervision of their
employees.
Art. 1724 - The contractor who undertakes to build a
structure or any other work for a stipulated price, in Art. 1760 - The common carrier's responsibility prescribed
conformity with plans and specifications agreed upon with in the preceding article cannot be eliminated or limited by
the land-owner, can neither withdraw from the contract nor stipulation, by the posting of notices, by statements on the
demand an increase in the price on account of the higher tickets or otherwise.
cost of labor or materials, save when there has been a
change in the plans and specifications, provided:
Art. 1764 - Damages in cases comprised in this Section
shall be awarded in accordance with Title XVIII of this
(1) Such change has been authorized by the
proprietor in writing; and Book, concerning Damages. Article 2206 shall also apply
to the death of a passenger caused by the breach of
(2) The additional price to be paid to the contract by a common carrier.
contractor has been determined in writing by both
parties. Art. 1767 - By the contract of partnership two or more
persons bind themselves to contribute money, property, or
Art. 1727 - The contractor is responsible for the work done industry to a common fund, with the intention of dividing
by persons employed by him. the profits among themselves.

Art. 1733 - Common carriers, from the nature of their Two or more persons may also form a partnership for the
business and for reasons of public policy, are bound to exercise of a profession.
observe extraordinary diligence in the vigilance over the
goods and for the safety of the passengers transported by Art. 1797 - The losses and profits shall be distributed in
them, according to all the circumstances of each case. conformity with the agreement. If only the share of each
partner in the profits has been agreed upon, the share of
Such extraordinary diligence in the vigilance over the each in the losses shall be in the same proportion.
goods is further expressed in Articles 1734, 1735, and
1745, Nos. 5, 6, and 7, while the extraordinary diligence for In the absence of stipulation, the share of each partner in
the safety of the passengers is further set forth in Articles the profits and losses shall be in proportion to what he may
1755 and 1756. have contributed, but the industrial partner shall not be
liable for the losses. As for the profits, the industrial partner
shall receive such share as may be just and equitable
Art. 1755 - A common carrier is bound to carry the
under the circumstances. If besides his services he has
passengers safely as far as human care and foresight can contributed capital, he shall also receive a share in the
provide, using the utmost diligence of very cautious profits in proportion to his capital.
persons, with a due regard for all the circumstances.
31
Art. 1799 - A stipulation which excludes one or more (b) By the express will of any partner,
partners from any share in the profits or losses is void. who must act in good faith, when no
definite term or particular is specified;
Art. 1800 - The partner who has been appointed manager
in the articles of partnership may execute all acts of (c) By the express will of all the partners
administration despite the opposition of his partners, who have not assigned their interests or
unless he should act in bad faith; and his power is suffered them to be charged for their
irrevocable without just or lawful cause. The vote of the separate debts, either before or after the
partners representing the controlling interest shall be termination of any specified term or
necessary for such revocation of power. particular undertaking;

A power granted after the partnership has been constituted (d) By the expulsion of any partner from
may be revoked at any time. the business bona fide in accordance
with such a power conferred by the
agreement between the partners;
Art. 1801 - If two or more partners have been intrusted with
the management of the partnership without specification of
(2) In contravention of the agreement between
their respective duties, or without a stipulation that one of the partners, where the circumstances do not
them shall not act without the consent of all the others, permit a dissolution under any other provision of
each one may separately execute all acts of this article, by the express will of any partner at
administration, but if any of them should oppose the acts any time;
of the others, the decision of the majority shall prevail. In
case of a tie, the matter shall be decided by the partners (3) By any event which makes it unlawful for the
owning the controlling interest. business of the partnership to be carried on or for
the members to carry it on in partnership;
Art. 1816 - All partners, including industrial ones, shall be (4) When a specific thing which a partner had
liable pro rata with all their property and after all the promised to contribute to the partnership,
partnership assets have been exhausted, for the contracts perishes before the delivery; in any case by the
which may be entered into in the name and for the account loss of the thing, when the partner who
of the partnership, under its signature and by a person contributed it having reserved the ownership
authorized to act for the partnership. However, any partner thereof, has only transferred to the partnership
may enter into a separate obligation to perform a the use or enjoyment of the same; but the
partnership shall not be dissolved by the loss of
partnership contract.
the thing when it occurs after the partnership has
acquired the ownership thereof;
Art. 1829 - On dissolution the partnership is not
terminated, but continues until the winding up of (5) By the death of any partner;
partnership affairs is completed.
(6) By the insolvency of any partner or of the
Art. 1830 - Dissolution is caused: partnership;

(7) By the civil interdiction of any partner;


(1) Without violation of the agreement between
the partners: (8) By decree of court under the following article.

(a) By the termination of the definite term Art. 1837 - When dissolution is caused in any way, except
or particular undertaking specified in the in contravention of the partnership agreement, each
agreement; partner, as against his co-partners and all persons claiming
through them in respect of their interests in the partnership,
unless otherwise agreed, may have the partnership
property applied to discharge its liabilities, and the surplus
32
applied to pay in cash the net amount owing to the the right as against his co-partners and
respective partners. But if dissolution is caused by all claiming through them in respect of
expulsion of a partner, bona fide under the partnership their interests in the partnership, to have
agreement and if the expelled partner is discharged from the value of his interest in the
all partnership liabilities, either by payment or agreement partnership, less any damage caused to
under the second paragraph of Article 1835, he shall his co-partners by the dissolution,
receive in cash only the net amount due him from the ascertained and paid to him in cash, or
partnership. the payment secured by a bond
approved by the court, and to be
When dissolution is caused in contravention of the released from all existing liabilities of the
partnership agreement the rights of the partners shall be partnership; but in ascertaining the value
as follows: of the partner's interest the value of the
good-will of the business shall not be
(1) Each partner who has not caused dissolution considered.
wrongfully shall have:
Art. 1838 - Where a partnership contract is rescinded on
(a) All the rights specified in the first the ground of the fraud or misrepresentation of one of the
paragraph of this article, and parties thereto, the party entitled to rescind is, without
prejudice to any other right, entitled:
(b) The right, as against each partner (1) To a lien on, or right of retention of, the surplus
who has caused the dissolution of the partnership property after satisfying the
wrongfully, to damages breach of the partnership liabilities to third persons for any sum
agreement. of money paid by him for the purchase of an
interest in the partnership and for any capital or
(2) The partners who have not caused the advances contributed by him;
dissolution wrongfully, if they all desire to
continue the business in the same name either by (2) To stand, after all liabilities to third persons
themselves or jointly with others, may do so, have been satisfied, in the place of the creditors
during the agreed term for the partnership and for of the partnership for any payments made by him
that purpose may possess the partnership in respect of the partnership liabilities; and
property, provided they secure the payment by
bond approved by the court, or pay any partner (3) To be indemnified by the person guilty of the
who has caused the dissolution wrongfully, the fraud or making the representation against all
value of his interest in the partnership at the debts and liabilities of the partnership.
dissolution, less any damages recoverable under
the second paragraph, No. 1 (b) of this article, and Art. 1877 - An agency couched in general terms comprises
in like manner indemnify him against all present only acts of administration, even if the principal should
or future partnership liabilities. state that he withholds no power or that the agent may
execute such acts as he may consider appropriate, or even
(3) A partner who has caused the dissolution
wrongfully shall have: though the agency should authorize a general and
unlimited management.

(a) If the business is not continued under Art. 1878 - Special powers of attorney are necessary in the
the provisions of the second paragraph, following cases:
No. 2, all the rights of a partner under the
first paragraph, subject to liability for (1) To make such payments as are not usually
damages in the second paragraph, No. considered as acts of administration;
1 (b), of this article.
(2) To effect novations which put an end to
(b) If the business is continued under the obligations already in existence at the time the
second paragraph, No. 2, of this article, agency was constituted;
33
(3) To compromise, to submit questions to Art. 1898 - f the agent contracts in the name of the
arbitration, to renounce the right to appeal from a principal, exceeding the scope of his authority, and the
judgment, to waive objections to the venue of an principal does not ratify the contract, it shall be void if the
action or to abandon a prescription already
party with whom the agent contracted is aware of the limits
acquired;
of the powers granted by the principal. In this case,
(4) To waive any obligation gratuitously; however, the agent is liable if he undertook to secure the
principal's ratification.
(5) To enter into any contract by which the
ownership of an immovable is transmitted or Art. 1900 - So far as third persons are concerned, an act
acquired either gratuitously or for a valuable is deemed to have been performed within the scope of the
consideration; agent's authority, if such act is within the terms of the power
of attorney, as written, even if the agent has in fact
(6) To make gifts, except customary ones for
exceeded the limits of his authority according to an
charity or those made to employees in the
business managed by the agent; understanding between the principal and the agent.

(7) To loan or borrow money, unless the latter act Art. 1927 - An agency cannot be revoked if a bilateral
be urgent and indispensable for the preservation contract depends upon it, or if it is the means of fulfilling an
of the things which are under administration; obligation already contracted, or if a partner is appointed
manager of a partnership in the contract of partnership and
(8) To lease any real property to another person his removal from the management is unjustifiable.
for more than one year;
Art. 1930 - The agency shall remain in full force and effect
(9) To bind the principal to render some service
even after the death of the principal, if it has been
without compensation;
constituted in the common interest of the latter and of the
(10) To bind the principal in a contract of agent, or in the interest of a third person who has accepted
partnership; the stipulation in his favour.

(11) To obligate the principal as a guarantor or Art. 1931 - Anything done by the agent, without knowledge
surety; of the death of the principal or of any other cause which
extinguishes the agency, is valid and shall be fully effective
(12) To create or convey real rights over with respect to third persons who may have contracted with
immovable property; him in good faith.
(13) To accept or repudiate an inheritance; Art. 1933 - By the contract of loan, one of the parties
delivers to another, either something not consumable so
(14) To ratify or recognize obligations contracted that the latter may use the same for a certain time and
before the agency; return it, in which case the contract is called a
commodatum; or money or other consumable thing, upon
(15) Any other act of strict dominion. the condition that the same amount of the same kind and
quality shall be paid, in which case the contract is simply
Art. 1891 - Every agent is bound to render an account of called a loan or mutuum.
his transactions and to deliver to the principal whatever he
may have received by virtue of the agency, even though it Commodatum is essentially gratuitous.
may not be owing to the principal.
Simple loan may be gratuitous or with a stipulation to pay
Every stipulation exempting the agent from the obligation interest.
to render an account shall be void.
34
In commodatum the bailor retains the ownership of the Nevertheless, a guaranty may be constituted to guarantee
thing loaned, while in simple loan, ownership passes to the the performance of a voidable or an unenforceable
borrower. contract. It may also guarantee a natural obligation.

Art. 1942 - The bailee is liable for the loss of the thing, Art. 2058 - he guarantor cannot be compelled to pay the
even if it should be through a fortuitous event: creditor unless the latter has exhausted all the property of
the debtor, and has resorted to all the legal remedies
(1) If he devotes the thing to any purpose different
against the debtor.
from that for which it has been loaned;
Art. 2059 - The excussion shall not take place:
(2) If he keeps it longer than the period stipulated,
or after the accomplishment of the use for which
the commodatum has been constituted; (1) If the guarantor has expressly renounced it;

(2) If he has bound himself solidarily with the


(3) If the thing loaned has been delivered with
debtor;
appraisal of its value, unless there is a stipulation
exemption the bailee from responsibility in case
of a fortuitous event; (3) In case of insolvency of the debtor;

(4) If he lends or leases the thing to a third person, (4) When he has absconded, or cannot be sued
who is not a member of his household; within the Philippines unless he has left a
manager or representative;
(5) If, being able to save either the thing borrowed
or his own thing, he chose to save the latter. (5) If it may be presumed that an execution on the
(1744a and 1745) property of the principal debtor would not result in
the satisfaction of the obligation. (1831a)
Art. 1943. The bailee does not answer for the deterioration
of the thing loaned due only to the use thereof and without Art. 2060. In order that the guarantor may make use of the
his fault. (1746) benefit of exclusion, he must set it up against the creditor
upon the latter's demand for payment from him, and point
Art. 1944. The bailee cannot retain the thing loaned on the out to the creditor available property of the debtor within
ground that the bailor owes him something, even though it Philippine territory, sufficient to cover the amount of the
may be by reason of expenses. However, the bailee has a debt.
right of retention for damages mentioned in Article 1951.
(1747a) Art. 2086 - The provisions of Article 2052 are applicable
to a pledge or mortgage.
Art. 1945. When there are two or more bailees to whom a
thing is loaned in the same contract, they are liable Art. 2093 - In addition to the requisites prescribed in Article
solidarily. 2085, it is necessary, in order to constitute the contract of
pledge, that the thing pledged be placed in the possession
Art. 2047 - By guaranty a person, called the guarantor, of the creditor, or of a third person by common agreement.
binds himself to the creditor to fulfill the obligation of the
principal debtor in case the latter should fail to do so.
Art. 2104 - The creditor cannot use the thing pledged,
If a person binds himself solidarily with the principal debtor, without the authority of the owner, and if he should do so,
the provisions of Section 4, Chapter 3, Title I of this Book or should misuse the thing in any other way, the owner may
shall be observed. In such case the contract is called a ask that it be judicially or extrajudicially deposited. When
suretyship. the preservation of the thing pledged requires its use, it
must be used by the creditor but only for that purpose.
Art. 2052 - A guaranty cannot exist without a valid
obligation.
35
Art. 2114 - All bids at the public auction shall offer to pay Art. 2145 - The officious manager shall perform his duties
the purchase price at once. If any other bid is accepted, the with all the diligence of a good father of a family, and pay
pledgee is deemed to have been received the purchase the damages which through his fault or negligence may be
suffered by the owner of the property or business under
price, as far as the pledgor or owner is concerned.
management.

Art. 2115 - The sale of the thing pledged shall extinguish The courts may, however, increase or moderate the
the principal obligation, whether or not the proceeds of the indemnity according to the circumstances of each case.
sale are equal to the amount of the principal obligation, (1889a)
interest and expenses in a proper case. If the price of the
sale is more than said amount, the debtor shall not be Art. 2146. If the officious manager delegates to another
entitled to the excess, unless it is otherwise agreed. If the person all or some of his duties, he shall be liable for the
price of the sale is less, neither shall the creditor be entitled acts of the delegate, without prejudice to the direct
obligation of the latter toward the owner of the business.
to recover the deficiency, notwithstanding any stipulation
to the contrary. The responsibility of two or more officious managers shall
be solidary, unless the management was assumed to save
Art. 2124 - Only the following property may be the object the thing or business from imminent danger.
of a contract of mortgage:
(1) Immovables; Art. 2147 - The officious manager shall be liable for any
fortuitous event:
(2) Alienable real rights in accordance with the
laws, imposed upon immovables. (1) If he undertakes risky operations which the
owner was not accustomed to embark upon;
Nevertheless, movables may be the object of a chattel
mortgage. (2) If he has preferred his own interest to that of
the owner;
Art. 2132 - By the contract of antichresis the creditor
acquires the right to receive the fruits of an immovable of (3) If he fails to return the property or business
his debtor, with the obligation to apply them to the payment after demand by the owner;
of the interest, if owing, and thereafter to the principal of
his credit. (4) If he assumed the management in bad faith.

Art. 2144 - Whoever voluntarily takes charge of the agency Art. 2149 - The ratification of the management by the
or management of the business or property of another, owner of the business produces the effects of an express
without any power from the latter, is obliged to continue the agency, even if the business may not have been
same until the termination of the affair and its incidents, or successful.
to require the person concerned to substitute him, if the
owner is in a position to do so. This juridical relation does
Art. 2150 - Although the officious management may not
not arise in either of these instances:
have been expressly ratified, the owner of the property or
(1) When the property or business is not
business who enjoys the advantages of the same shall be
neglected or abandoned;
liable for obligations incurred in his interest, and shall
reimburse the officious manager for the necessary and
(2) If in fact the manager has been tacitly useful expenses and for the damages which the latter may
authorized by the owner. have suffered in the performance of his duties.

In the first case, the provisions of Articles 1317, 1403, No. The same obligation shall be incumbent upon him when
1, and 1404 regarding unauthorized contracts shall govern. the management had for its purpose the prevention of an
imminent and manifest loss, although no benefit may have
In the second case, the rules on agency in Title X of this been derived.
Book shall be applicable.
36
Art. 2154 - If something is received when there is no right The State is responsible in like manner when it acts
to demand it, and it was unduly delivered through mistake, through a special agent; but not when the damage has
the obligation to return it arises. been caused by the official to whom the task done properly
pertains, in which case what is provided in Article 2176
shall be applicable.
Art. 2174 - When in a small community a nationality of the
inhabitants of age decide upon a measure for protection Lastly, teachers or heads of establishments of arts and
against lawlessness, fire, flood, storm or other calamity, trades shall be liable for damages caused by their pupils
any one who objects to the plan and refuses to contribute and students or apprentices, so long as they remain in their
to the expenses but is benefited by the project as executed custody.
shall be liable to pay his share of said expenses.
The responsibility treated of in this article shall cease when
Art. 2176 - Whoever by act or omission causes damage to the persons herein mentioned prove that they observed all
the diligence of a good father of a family to prevent
another, there being fault or negligence, is obliged to pay
damage.
for the damage done. Such fault or negligence, if there is
no pre-existing contractual relation between the parties, is Art. 2184 - In motor vehicle mishaps, the owner is solidarily
called a quasi-delict and is governed by the provisions of liable with his driver, if the former, who was in the vehicle,
this Chapter. could have, by the use of the due diligence, prevented the
misfortune. It is disputably presumed that a driver was
Art. 2179 - When the plaintiff's own negligence was the negligent, if he had been found guilty or reckless driving or
immediate and proximate cause of his injury, he cannot violating traffic regulations at least twice within the next
preceding two months.
recover damages. But if his negligence was only
contributory, the immediate and proximate cause of the
If the owner was not in the motor vehicle, the provisions of
injury being the defendant's lack of due care, the plaintiff Article 2180 are applicable.
may recover damages, but the courts shall mitigate the
damages to be awarded. Art. 2190 - The proprietor of a building or structure is
responsible for the damages resulting from its total or
Art. 2180 - The obligation imposed by Article 2176 is partial collapse, if it should be due to the lack of necessary
demandable not only for one's own acts or omissions, but
also for those of persons for whom one is responsible. repairs.

The father and, in case of his death or incapacity, the Art. 2194 - The responsibility of two or more persons who
mother, are responsible for the damages caused by the are liable for quasi-delict is solidary.
minor children who live in their company.
Art. 2201 - In contracts and quasi-contracts, the damages
Guardians are liable for damages caused by the minors or for which the obligor who acted in good faith is liable shall
incapacitated persons who are under their authority and be those that are the natural and probable consequences
live in their company. of the breach of the obligation, and which the parties have
foreseen or could have reasonably foreseen at the time the
The owners and managers of an establishment or obligation was constituted.
enterprise are likewise responsible for damages caused by
their employees in the service of the branches in which the In case of fraud, bad faith, malice or wanton attitude, the
latter are employed or on the occasion of their functions. obligor shall be responsible for all damages which may be
reasonably attributed to the non-performance of the
Employers shall be liable for the damages caused by their obligation.
employees and household helpers acting within the scope
of their assigned tasks, even though the former are not Art. 2206 - The amount of damages for death caused by a
engaged in any business or industry. crime or quasi-delict shall be at least three thousand
pesos, even though there may have been mitigating
circumstances. In addition:
37
(1) The defendant shall be liable for the loss of the (5) Where the defendant acted in gross and
earning capacity of the deceased, and the evident bad faith in refusing to satisfy the
indemnity shall be paid to the heirs of the latter; plaintiff's plainly valid, just and demandable claim;
such indemnity shall in every case be assessed
and awarded by the court, unless the deceased (6) In actions for legal support;
on account of permanent physical disability not
caused by the defendant, had no earning capacity (7) In actions for the recovery of wages of
at the time of his death; household helpers, laborers and skilled workers;

(2) If the deceased was obliged to give support (8) In actions for indemnity under workmen's
according to the provisions of Article 291, the compensation and employer's liability laws;
recipient who is not an heir called to the
decedent's inheritance by the law of testate or (9) In a separate civil action to recover civil liability
intestate succession, may demand support from arising from a crime;
the person causing the death, for a period not
exceeding five years, the exact duration to be (10) When at least double judicial costs are
fixed by the court; awarded;
(3) The spouse, legitimate and illegitimate (11) In any other case where the court deems it
descendants and ascendants of the deceased just and equitable that attorney's fees and
may demand moral damages for mental anguish expenses of litigation should be recovered.
by reason of the death of the deceased.
In all cases, the attorney's fees and expenses of litigation
Art. 2207 - If the plaintiff's property has been insured, and must be reasonable.
he has received indemnity from the insurance company for
the injury or loss arising out of the wrong or breach of Art. 2209 - If the obligation consists in the payment of a
contract complained of, the insurance company shall be sum of money, and the debtor incurs in delay, the
subrogated to the rights of the insured against the indemnity for damages, there being no stipulation to the
wrongdoer or the person who has violated the contract. If contrary, shall be the payment of the interest agreed upon,
the amount paid by the insurance company does not fully and in the absence of stipulation, the legal interest, which
cover the injury or loss, the aggrieved party shall be entitled is six per cent per annum.
to recover the deficiency from the person causing the loss
or injury. Art. 2214 - In quasi-delicts, the contributory negligence of
the plaintiff shall reduce the damages that he may recover.
Art. 2208 - In the absence of stipulation, attorney's fees
and expenses of litigation, other than judicial costs, cannot Art. 2217 - Moral damages include physical suffering,
be recovered, except: mental anguish, fright, serious anxiety, besmirched
reputation, wounded feelings, moral shock, social
(1) When exemplary damages are awarded;
humiliation, and similar injury. Though incapable of
(2) When the defendant's act or omission has pecuniary computation, moral damages may be recovered
compelled the plaintiff to litigate with third persons if they are the proximate result of the defendant's wrongful
or to incur expenses to protect his interest; act for omission.

(3) In criminal cases of malicious prosecution Art. 2219 - Moral damages may be recovered in the
against the plaintiff; following and analogous cases:

(4) In case of a clearly unfounded civil action or (1) A criminal offense resulting in physical
proceeding against the plaintiff; injuries;

(2) Quasi-delicts causing physical injuries;


38
(3) Seduction, abduction, rape, or other lascivious Art. 2234 - While the amount of the exemplary damages
acts; need not be proved, the plaintiff must show that he is
entitled to moral, temperate or compensatory damages
(4) Adultery or concubinage;
before the court may consider the question of whether or
not exemplary damages should be awarded. In case
(5) Illegal or arbitrary detention or arrest;
liquidated damages have been agreed upon, although no
(6) Illegal search; proof of loss is necessary in order that such liquidated
damages may be recovered, nevertheless, before the
(7) Libel, slander or any other form of defamation; court may consider the question of granting exemplary in
addition to the liquidated damages, the plaintiff must show
(8) Malicious prosecution; that he would be entitled to moral, temperate or
compensatory damages were it not for the stipulation for
(9) Acts mentioned in Article 309; liquidated damages.

(10) Acts and actions referred to in Articles 21, 26,


27, 28, 29, 30, 32, 34, and 35.

The parents of the female seduced, abducted, raped, or


abused, referred to in No. 3 of this article, may also recover
moral damages.

The spouse, descendants, ascendants, and brothers and


sisters may bring the action mentioned in No. 9 of this
article, in the order named.

Art. 2220 - Willful injury to property may be a legal ground


for awarding moral damages if the court should find that,
under the circumstances, such damages are justly due.
The same rule applies to breaches of contract where the
defendant acted fraudulently or in bad faith.

Art. 2221 - Nominal damages are adjudicated in order that


a right of the plaintiff, which has been violated or invaded
by the defendant, may be vindicated or recognized, and
not for the purpose of indemnifying the plaintiff for any loss
suffered by him.

Art. 2224 - Temperate or moderate damages, which are


more than nominal but less than compensatory damages,
may be recovered when the court finds that some
pecuniary loss has been suffered but its amount can not,
from the nature of the case, be provided with certainty.

Art. 2232 - In contracts and quasi-contracts, the court may


award exemplary damages if the defendant acted in a
wanton, fraudulent, reckless, oppressive, or malevolent
manner.

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