CIVIL LAW XVII.

Civil
TABLE OF CONTENTS Registrar ...............................................................................................................
I. Effect and Application of Laws (Civil 61
Code) ................................................................... 1 Exclude: Act No. 375 and the Implementing Rules and Regulations of R.A. No.
Include: Conflict of Laws (Private International 9048
Law) ...................................................... 3 PROPERTY
II. Human Relations (Arts. 19-22, Civil I.
Code) ..................................................................... 8 Characteristics .........................................................................................................
Exclude: Independent civil actions and prejudicial questions which will be .... 61
covered by the examinations in Remedial Law II.
PERSONS Classification ...........................................................................................................
I. Persons and Personality (Civil ..... 63
Code) ............................................................................ 9 III.
II. Marriage (Family Ownership ................................................................................................................
Code) ............................................................................................... 12 .... 65
Exclude: Muslim Code (P.D. 1083) IV.
Exclude: Duties of a Civil Registrar under Articles 12-19, 23-25 (Family Code) Accession .................................................................................................................
Exclude: A.M. No. 02-11-10-SC, Rule on Declaration of Absolute Nullity of ... 67
Void Marriages and Annulment of Voidable Marriages; R.A. No. 6955, entitled V. Quieting of Title to or Interest in and Removal or Prevention of Cloud over
“An Act to Declare Unlawful the Practice of Matching Filipino Women for Title to or Interest in Real
Marriage to Foreign Nationals on a Mail Order Basis and Other Similar Practices Property ............................................................................................... 73
x x x”; R.A. No. 9208 or the Anti-Trafficking in Persons Act of 2003 VI. Co-
III. Legal Separation (Family ownership ...............................................................................................................
Code) .................................................................................. 32 73
Exclude: A.M. No. 02-11-11-SC, or the Rule on Legal Separation VII.
IV. Rights and Obligations Between Husband and Wife (Family Possession ................................................................................................................
Code) .............................. 34 .. 75
Exclude: R.A. No. 7192 or the Women in Development and Nation Building VIII.
Act; R.A. No. 8187, or the Paternity Leave Act of 1996; R.A. No. 9710, or The Usufruct ...................................................................................................................
Magna Carta of Women. .... 77
V. Property Relations of the Spouses (Family IX.
Code) ........................................................ 34 Easements ................................................................................................................
VI. The ... 78
Family ................................................................................................................... X.
45 Nuisance ..................................................................................................................
VII. Paternity and Filiation (Family .... 81
Code) ........................................................................... 45 XI. Modes of Acquiring
VIII. Ownership ..................................................................................... 81
Adoption .................................................................................................................. PRESCRIPTION
.... 50 I. Definition
A. Domestic Adoption Act of 1998 (R.A. No. II. No prescription applicable
8552) ...................................................... 50 III. Prescription or limitation of
Exclude: actions ................................................................................ 86
1. Rule on Adoption (A.M. No. 02-6-02-SC ) OBLIGATIONS
2. R.A. No. 9523, entitled “An Act Requiring Certification of the Department of I. Definition
Social Welfare and Development to Declare a ‘Child Legally Available for II. Elements of an
Adoption’ as a Prerequisite for Adoption Proceedings x x x.” Obligation ............................................................................................. 87
B. Inter-Country Adoption Act of 1995 (R.A. No. III. Different Kinds of Prestations
8043) ........................................... 54 IV. Classification of
Exclude: Articles 183-188, 191-193 (Family Code) Obligations .......................................................................................... 87
IX. Support (Family V. Sources of
Code) ................................................................................................ 54 Obligations ................................................................................................. 88
X. Parental Authority (Family VI. Nature and Effect of
Code) ................................................................................. 57 Obligations ................................................................................... 88
Exclude: VII. Kinds of Civil
1. Rule on Guardianship of Minors (A.M. No. 03-02-05-SC) Obligations .............................................................................................. 91
2. Rules on Custody of Minors and Writ of Habeas Corpus in Relation to VIII. Joint and Solidary
Custody of Minors (A.M. No. 03-04-04-SC) Obligation ........................................................................................ 91
3. Solo Parents' Welfare Act of 2000 (R.A. No. 8972) IX. Extinguishment of
4. The Early Childhood Care and Development Act (R.A. No. 8980) Obligations ....................................................................................... 94
Exclude: R.A. No. 9231, entitled “An Act Providing for the Elimination of the CONTRACTS
Worst Forms of Child Labor and Affording Stronger Protection for the Working I. Essential
Child x x x,” which will be covered under Labor Law Requisites ................................................................................................... 100
Include: Child Abuse Law (R.A. No. II. Kinds of
7610) ................................................................... 60 Contracts ...................................................................................................... 100
XI. Emancipation (Arts. 234 and 236, Family Code, as amended by R.A. No. III.
6809 which lowered the age of majority) Formality .................................................................................................................
XII. Summary Judicial Proceedings in Family Law Cases ... 104
XIII. Retroactivity of the Family Code (Art. 256) IV. Defective
Exclude: Arts. 254-255, 257 (Family Code) Contracts .................................................................................................... 106
XIV. Funerals (Arts. 305-310, Civil Code) V. Effect of
Exclude: Care and Education of Children (Arts. 356-363, Civil Code) Contracts ...................................................................................................... 108
XV. Use of SALES
Surnames .......................................................................................................... 60 I. Definition and Essential Requisites of a Contract of
Arts. 364-369, 369-380, Civil Code (other articles repealed by Family Code) Sale ............................................ 109
XVI. Absence (Art. 43, Civil Code; Art. 41, Family Code)
II. Parties to a Contract of X. Irrevocable
Sale ....................................................................................... 114 Agency ..................................................................................................... 155
III. Subject XI. Modes of
Matter ............................................................................................................ 116 Extinguishment ........................................................................................... 156
IV. Obligations of the Seller to Transfer COMPROMISE
Ownership .......................................................... 116 I. Definition
V. II. Void
Price ......................................................................................................................... Compromise .......................................................................................................
. 117 156
VI. Formation of Contract of III. Effect
Sale ..................................................................................... 119 CREDIT TRANSACTIONS
VII. Transfer of I.
Ownership ................................................................................................ 123 Loan .........................................................................................................................
VIII. Risk of . 156
Loss ............................................................................................................... 123 II.
IX. Documents of Deposit .....................................................................................................................
Title ..................................................................................................... 123 . 159
X. Remedies of an Unpaid III. Guaranty and
Seller .................................................................................... 123 Suretyship ............................................................................................ 160
XI. Performance of IV.
Contract ............................................................................................ 124 Pledge ......................................................................................................................
XII. . 162
Warranties ................................................................................................................ V. Real
. 125 Mortgage ........................................................................................................... 164
XIII. Breach of Include: Act 3135, as amended by R.A. No.
Contract ..................................................................................................... 125 4118 ....................................................... 170
XIV. Extinguishment of the VI.
Sale ......................................................................................... 125 Antichresis ...............................................................................................................
XV. The Subdivision and Condominium Buyers' Protective Decree (P.D. .. 174
957) .................. 126 VII. Chattel
XVI. The Condominium Act (R.A. No. Mortgage ....................................................................................................... 175
4726) ...................................................................... 126 Include: Act
Exclude: Electronic Commerce Act of 2000 (R.A. No. 8792); Public Land Law, 1508 ....................................................................................................... 175
Retail Trade and Liberalization Act, Bulk Sales Law (Act No. 3952) VIII. Quasi-
SUCCESSION contracts.......................................................................................................... 178
I. General IX. Concurrence and Preference of Credits
Provisions ..................................................................................................... 126 LEASE
II. Testamentary I. Lease of Things
Succession .......................................................................................... 126 II. Lease of Work or
III. Legal or Intestate Services ......................................................................................... 178
Succession .................................................................................... 136 III. Lease of Rural and Urban
IV. Provisions Common to Testate and Intestate Lands ................................................................................ 179
Succession ........................................... 145 IV. Rights and Obligations of Lessor and
Exclude: Executors and administrators (Arts. 1058-1060, Civil Code), which will Lessee ............................................................. 179
be covered under Remedial Law V. Special Rules for Lease of Rural/Urban
PARTNERSHIP Lands ............................................................ 183
I. Contract of VI. Household Service (Exclude, for inclusion in Labor Law)
Partnership .............................................................................................. 147 VII. Contract of Labor (Exclude, for inclusion in Labor Law)
II. Rights and Obligations of VIII. Contract for Piece of Work (Exclude, for inclusion in Labor Law)
Partnership ......................................................................... 151 LAND TITLES AND DEEDS
III. Rights and Obligations of Partners Among I. Torrens
Themselves .............................................. 151 System .......................................................................................................... 183
IV. Obligations of Partnership/Partners to Third II. Regalian
Persons .................................................. 151 Doctrine....................................................................................................... 183
V. III. Citizenship
Dissolution ............................................................................................................... Requirement ............................................................................................ 184
.. 152 IV. Original
VI. Limited Registration ................................................................................................... 184
Partnership ..................................................................................................... 153 V. Subsequent
AGENCY Registration ............................................................................................ 188
I. Definition of VI. Non-registrable
Agency.................................................................................................... 153 Properties .......................................................................................... 188
II. VII. Dealings with Unregistered
Powers ..................................................................................................................... Lands .............................................................................. 188
.. 153 Exclude:
III. Express vs. Implied Agency 1. History of land laws
IV. Agency by Estoppel 2. Remedies sufficiently covered under Remedial Law
V. General vs. Special Agency 3. Registration of judgments, orders and partitions
VI. Agency Couched in General 4. Assurance fund
Terms ............................................................................ 153 5. Registration of patents
VII. Agency Requiring Special Power of 6. Administrative structure of the Register of Deeds
Attorney .............................................................. 153 7. Consultas
VIII. Agency by Operation of Law TORTS AND DAMAGES
IX. Rights and Obligations of Book I--Torts
Principal ............................................................................. 155
I.
Principles .................................................................................................................
.. 190
II. Classification of Torts
III. The
Tortfeasor ...........................................................................................................
195
IV. Act of Omission and its
Modalities .............................................................................. 195
V. Proximate
Cause ....................................................................................................... 196
VI. Legal Injury
VII. Intentional Torts
VIII.
Negligence................................................................................................................
. 196
IX. Special Liability in Particular Activities
X. Strict
Liability ..............................................................................................................
197
Book II--Damages
I. General
Considerations .............................................................................................. 198
II. Actual and Compensatory
Damages .......................................................................... 199
III. Moral
Damages ......................................................................................................... 200
IV. Nominal
Damages ..................................................................................................... 201
V. Temperate or Moderate
Damages .............................................................................. 201
VI. Liquidated Damages
VII. Exemplary or Corrective
Damages ............................................................................. 201
VIII. Damages in Case of
Death ........................................................................................ 202
IX. Graduation of Damages
X. Miscellaneous
Rules .................................................................................................. 202
JURIST TIPS Ronnie Sotto is married to Cynthia. He, however, had an
illegitimate son named Christian who was already three years
X is a 16-year old master chess player. But he looks older than old. Cynthia came to accept Christian and he had been allowed
his age. He won many competitions locally and abroad. TV to join family gatherings. On May 5, 2018, Ronnie asked
Channel 5 approached him in one competition and offered to Christian’s natural mother, Carla, if he could bring Christian to
make a biopic movie about his life. X agreed and he and the Tokyo Disneyland. Carla agreed. After the vacation of Ronnie
producer signed a contract. After which X accepted the advance and his family, he refused to return Christian to Carla
payment of P200,000.00. When the movie came out, X’s contending that Christian would have a better life with him
parents were shocked to know that it was about their minor since he can provide the child with all the financial support he
son. They sued TV Channel 5 for annulment of contract because needs and that he has recognized the child in his birth
of X’s minority. TV Channel 5, however, defended that it did not certificate which entitles him to have custody of Christina.
know that X was still a minor. Should the contract be annulled? Carla sued Ronnie for habeas corpus. If you were the judge, to
No, the contract should not be annulled. As a rule, a minor cannot enter into whom will you award custody of Christian? In view of the
contracts because of lack of capacity. However, as an exception, as held in recognition of Christian by Ronnie, may the latter compel the
several decisions (e.g. Suan vs. Alcantara) of the Supreme Court, when a minor child to use his surname Sotto?
misrepresents his age and the other party is not aware of his minority, the I will award custody to Carla. An illegitimate child shall be under the sole
minor is estopped and the contract is valid and binding. parental authority of the mother even if he is recognized by the father. The
In this case, X looks older than his age, he did not inform TV Channel 5 that he recognition of Christian by Ronnie will not be a reason to compel the former to
is a minor and TV Channel 5 was not aware of his minority. Furthermore, X even use the surname of his father because in the case of illegitimate children, they are
received the advance payment, thereby ratifying the contract. given the right to use the surname if recognized by the father but there is no
Hence, the contract cannot be annulled. compulsion on their part. The operative word used by 9255 is “may” indicating
that the use of the surname by the child is not mandatory.
X and Y were sweethearts. Y impregnated X but Y immediately
broke up with X. During her pregnancy, X demanded from Y for Fely is married to Horacio. In 2001, Horacio who was an army
financial support for their unborn child. Y refused, claiming lieutenant was sent on a military mission in Mindanao. From
that an unborn child has no personality and is not entitled to the time he left, Horacio was never heard of again. In 2009 Fely
support. Is Y correct? filed a petition for declaration of presumptive death of Horacio
No, Y is not correct. Under the Civil Code, personality begins at conception, which the trial court granted. In 2015, Fely married Bong and a
provided that the conceived child is born under the conditions favorable to it. child was born to them the following year. However, in June
Furthermore, in a case decided by the Supreme Court (Quimiging vs. Icao), it
was held that the unborn child has a right to support from its progenitors even 2017, Fely learned from her cousin in Cotobato that Horacio
if the said child is only "en ventre de sa mere”. In this case, there is no doubt that was still alive and was living with Gregoria. Will the
the unborn child is fathered by Y. Thus, he is incorrect in refusing the demand reappearance of Horacio have the effect of terminating the
for support. marriage of Fely and Bong?
No, if the absentee reappears, but no step is taken to terminate the subsequent
What is the status of a marriage where one of the spouses marriage either by affidavit or by court action, such absentee’s mere
“refuses” to have sex? Void or voidable? reappearance, even if made known to the spouses in the subsequent marriage will
not terminate such marriage (SSS vs. Bailon, G.R. No. 165545, March 24,
Under the Family Code, if the failure to have sex is due a physical inability or
2006).
disability, the marriage is voidable and can be annulled. However, in a case
Article 41 of the Family Code provides that it is the recording of the affidavit
decided by the Supreme Court (Chi Ming Tsoi vs. Lao Tsoi), if the failure or
of reappearance of the absent spouse which will terminate the subsequent
refusal is due to some mental condition or disorder, then the marriage is void due
marriage.
to psychological incapacity to perform an essential marital obligation.

Bert and Brenda chose the regime of conjugal partnership of Kato married Kat in 2004. Five years prior to the marriage,
gains in their marriage settlement executed before their Kato purchased on 120 equal monthly installments a parcel of
marriage in 2010. Bert worked as the Executive Vice-President land in Batangas for P1,200,000. The deed contained a
of Wealth Manufacturing Corporation (WMC) since 2007. In stipulation whereby the seller, Kiko, reserved ownership over
2017, Bert signed a comprehensive surety agreement in favor the land until Kato completes payment. Using their combined
of Investor’s Finance Corporation (IFC) for a loan contracted by income, Kato and Kat completed payment for the land in 2009.
WMC binding himself solidarily for all obligations of WMC to They also constructed a modest bungalow for a total price of
IFC. WMC failed to pay the loan and IFC sued Bert and attached P800,000 on the land using the income from Kato’s farm which
several parcels of land belonging to the conjugal partnership of they used as a family dwelling.
Bert and Brenda. Brenda objected to the levy on their parcels a) Assuming that the parties are governed by the regime of
of land and argued that the loan did not redound to the benefit conjugal partnership of gains, is the land conjugal or exclusive?
of the family. WMC argued that Bert’s continued employment The land is conjugal property of Kato and Kat.
Under the Family Code, property bought on installments paid partly from
in WMC as its EVP is certainly a benefit to the family of Bert as
exclusive funds and partly from conjugal funds belongs to the conjugal
he receives a hefty sum as compensation in addition to his partnership if full ownership was vested to the buyer during the marriage.
allowances. May the conjugal properties of Bert and Brenda be Here while the land was purchased by Kato prior to the marriage, there was a
liable for the loan of WMC? Explain fully. reservation of ownership on the part of the seller until full payment. The full
No, the conjugal properties of Brenda and Bert may not be held liable for the payment was completed at a time when Kato was already married and using
loans of WMC. As a rule, the obligation must have redounded to the benefit of the conjugal funds from the spouses’ combined income. Thus the full
the family for the conjugal properties to be answerable for the obligation. The ownership vested upon the buyer Kato only during the marriage.
benefit required is a direct benefit resulting from the loan and not merely a spin- Hence the land is conjugal.
off of the loan itself. The benefit referred to by WMC is not a direct benefit but b) What about the bungalow?
an indirect benefit in the form of Bert’s continued employment with the The bungalow is likewise part of the conjugal property of Kato and Kat.
company. Under the Family Code, anything acquired by onerous title during the
Question 5: marriage at the expense of the common fund is conjugal property.
Here the house was acquired by onerous title or sale during the marriage using Josefina’s petition for nullity of her marriage to Eduardo was
the income from Kato’s farm. Income from separate property is conjugal or granted on the ground of existence of a prior marriage. She
common fund. [Article 117, Family Code] now asserts that since her marriage to Eduardo is void, their
Hence the bungalow is conjugal property.
property relation is to be governed by the rules on co‐
c) Suppose Kato died in 2013 and left Kat and his brother Kimpy as ownership under Article 148 of the FC and not by Article 144 of
heirs, may the latter compel partition of the bungalow and the the Civil Code. In this regime, Eduardo has no share at all in the
land? properties since no proof was adduced by him as regards his
No, Kimpy may not compel the partition of the bungalow and the land. participation in their purchase. However, she did not prove
Under the Family Code, the family home shall continue despite the death of
one spouse for a period of ten years and the heirs cannot partition the same that she acquired the properties using her personal funds and
unless the court finds compelling reasons therefor. prior to her cohabitation with Eduardo. Is her contention
Here the land and the bungalow constitute the family home of Kato and Kat correct?
and there is no showing of any compelling reason for partition. No. Article 148 of the FC does not apply since, in said article, a co ‐ownership
Hence Kimpy cannot compel the partition of the bungalow and the land. may ensue in case of cohabitation where, for instance, one party has a pre‐
existing valid marriage, provided that the parties prove their actual joint
While married, Leonardo Nonato and Marietta Barrido were contribution of money, property or industry and only to the extent of their
proportionate interest thereon.
able to acquire a property in Bacolod City. Their marriage was Petitioner failed to adduce by a preponderance of evidence that she contributed
subsequently declared void on the ground of psychological money, property or industry in the acquisition of the subject property and, hence,
incapacity. Nonato asked Barrido for partition, but the latter is not a co‐owner of the property. Since the subject property was acquired
refused. As such, Nonato filed a complaint for partition. Is during the subsistence of the first marriage of Eduardo, under normal
partition in equal shares the proper remedy under Art 147 of circumstances, the same should be presumed to be conjugal property of
the Family Code? Eduardo and Josefina. (Francisco v. Master Iron Works Construction
Yes. Under the property regime in Art. 147 of the Family Code, any property Corp.,G.R. No. 151967. Feb. 16, 2005)
acquired during the union is prima facie presumed to have been obtained
through their joint efforts. A party who did not participate in the acquisition of Francisco and Erminda’s marriage was nullified by the trial
the property shall be considered as having contributed to the same jointly if court due to psychological incapacity. He did not contest the
said party's efforts consisted in the care and maintenance of the family decree of nullity but he assailed the division in the properties
household. Efforts in the care and maintenance of the family and household are
which was contained in the decree. He asserted that the
regarded as contributions to the acquisition of common property by one who has
no salary or income or work or industry. properties were acquired through his efforts and that she had
In the case presented, since the former spouses both agreed that they acquired the no contribution whatsoever in their acquisition and
subject property during the subsistence of their marriage, it shall be presumed to maintenance; hence, she should not be entitled to a joint share
have been obtained by their joint efforts, work or industry, thus, the property is in their properties. Is Francisco’s contention correct?
jointly owned by them in equal shares. (Barrido vs Nonato, GR. No. 176492, No. The property relation between the parties is governed by Article 147 of the
October 20, 2014) FC. Under this article, there is a presumption that the properties which they
acquired during their cohabitation were acquired through their joint efforts, work
Sps. Alfredo and Candelaria Aguilar (Aguilar spouses) died or industry. It further provides that a party who did not participate in the
intestate. Rodolfo filed with the RTC a civil case against Edna acquisition thereof shall be deemed to have contributed jointly in the
acquisition thereof if his or her efforts consisted in the care and
Siasat, the niece of the deceased Candelaria and who allegedly
maintenance of the family and of the household.
has possession of the titles to the properties of the Aguilar Note: In this case, Francisco himself testified that his wife was not a plain
spouses. Rodolfo alleged that he is the only son and sole housewife but one who helped him in managing the family's business. Hence,
surviving heir of the Aguilar spouses and after their death, he Erminda is rightfully entitled to a joint share in their properties. (Gonzales v.
discovered that the titles to the properties of his parents were Gonzales,G.R. No. 159521, Dec. 16, 2005)
missing. Rodolfo presented several pieces of evidence to
support his claim to be the sole heir. Among others, he Romeo and Juliet lived together as husband and wife without
presented Alfredo Aguilar’s SSS Form E-1 which bears his the benefit of marriage. During their cohabitation, they
signature and thumb mark and indicates that Rodolfo is his son acquired a house. When they broke up, they executed an
and dependent. Both the RTC and CA ruled that the pieces of agreement where he agreed to leave the house provided Juliet
evidence presented by Rodolfo failed to establish his claim to will pay his entire share in their properties. She failed to do so
be the sole surviving heir of Aguilar spouses. Whether or not but she also ignored his demand for her to vacate. Romeo sued
the SSS Form E-1 satisfies the requirement for the proof of her for ejectment which the court granted. Was the court
filiation? correct in granting the same?
Yes. The due recognition of an illegitimate child in a record of birth, a will, a No. The property is co‐owned by the parties.
statement before a court of record, or in any authentic writing is, in itself, a Under Article 147 of the FC, in the absence of proof to the contrary, any property
consummated act of acknowledgment of the child, and no further court acquired by common‐law spouses during their cohabitation is presumed to have
action is required. In fact, any authentic writing is treated not just a ground for been obtained thru their joint efforts and is owned by them in equal shares .
compulsory recognition; it is in itself a voluntary recognition that does not Their property relationship in such a case is essentially governed by the rules on
require a separate action for judicial approval. Alfredo Aguilar’s SSS form co‐ownership.
satisfies the requirement for proof of filiation. By itself, said document Thus, Romeo cannot seek the ejectment of Juliet therefrom. As a co‐owner,
constitutes an “admission of legitimate filiation in a public document or a she is as much entitled to enjoy its possession and ownership as him. (Abing
private handwritten instrument and signed by the parent concerned.” v. Court of Appeals,G.R. No. 146294, Jul. 31, 2006)
(Aguilar vs. Siasat, GR. No 200169, January 28, 2015)
In 1973, Mauricio, a Filipino pensioner of the US Government, PROPERTY
contracted a bigamous marriage with Erlinda, despite the fact
that his first wife, Carol, was still living. In 1975, Mauricio and easement
Erlinda jointly bought a parcel of rice land with the title being A lessee installs a machinery needed for his business in the
placed jointly in their names. Shortly thereafter, they leased premises. In the lease contract, it was provided that
purchased another property (a house and lot) which was upon the expiration of the lease, all improvements introduced
placed in her name alone as the buyer. In 1981, Mauricio died by the lessee shall belong to the lessor. What is the nature of
and Carol promptly filed an action against Erlinda to recover the machinery installed by the lessee? Immovable or movable?
both the rice land and the house and lot, claiming them to be The machinery installed by the lessee is immovable property.
conjugal property of the first marriage. Erlinda contends that Under the Civil Code, for a machinery, a movable by nature, to be deemed
she and the late Mauricio were co‐owners of the rice land, and immovable, it must be attached to an immovable by the owner of the
with respect to the house and lot she claims she is the exclusive immovable property. This rule generally does not apply if the one who
attached it is a mere lessee. The exception, however, is when the lease contract
owner. Assuming she fails to prove that she had actually used provides that the machinery installed by the lessee shall belong to the lessor
her own money in either purchase, how do you decide the upon the expiration of the lease because in that case the lessee acts as an agent
case? of the lessor.
Carol's action to recover both the rice land and the house and lot is well‐founded. Thus, in the problem given, the machinery installed is an immovable.
Both are conjugal property, in view of the failure of Erlinda, the wife in a
bigamous marriage, to prove that her own money was used in the purchases Arcadio and his wife Alicia built a house adjacent to the
made. The Supreme Court in a case applied Article 148, Family Code, despite
the fact that the husband's death took place prior to the effectivity of said law. property of their neighbor Casmot in 1975. Arcadio’s house
However, even under Article 144, Civil Code, the same conclusion would have had four large windows on each side of his property through
been reached in view of the bigamous nature of the second marriage. (1998 Bar which they enjoyed the light and view of the neighboring
Question) estates. In 2013, Casmot started the construction of a thirty
storey condominium unit which effectively blocked the light
Luis and Rizza, both 26 years of age and single, live exclusively and the view previously enjoyed by Arcadio’s family. Arcadio
with each other as husband and wife without the benefit of filed a suit for injunction to restrain Casmot from continuing
marriage, Luis is gainfully employed, Rizza is not employed, with the construction on the ground that his family’s long
stays at home, and takes charge of the household chores. After continued enjoyment of the light and view through the
living together for a little over twenty years, Luis was able to windows on their property for 39 years entitles them to the
save from his salary earnings during that period the amount of legal easement of light and view. Will the suit prosper? Explain
P200,000.00 presently deposited in a bank. A house and lot fully.
worth P500,000.00 was recently purchased for the same No, the suit will not prosper.
amount by the couple. Of the P500.000.00 used by the The easement of light and view is a negative easement because the windows
common‐law spouses to purchase the property, P200.000.00 were opened on the wall of the supposed dominant estate. Thus, in order to
acquire by prescription the easement of light and view, the owner of the
had come from the sale of palay harvested from the hacienda dominant estate Arcadio must have served a notarial prohibition upon
owned by Luis and P300,000.00 from the rentals of a building Casmot. It is the notarial prohibition which makes apparent that which is
belonging to Rizza. In fine, the sum of P500.000.00 had been non-apparent. Not having served the notarial prohibition, the opening of the
part of the fruits received during the period of cohabitation window on Arcadio’s property will not result into the acquisition of the
from their separate property, a car worth P100.000.00 being easement of light and view by prescription.
used by the common‐law spouses, was donated just months accession
ago to Rizza by her parents. Luis and Rizza now decide to Yanu owns a parcel of land in Cebu. He left for Canada in 2009
terminate their cohabitation, and they ask you to give them and in his absence, Yetti occupied Yanu’s land and cultivated it
your legal advice on how, under the law should the bank and harvested the fruits thereon on the assumption that the
deposit of P200,000.00 the house and lot valued at land was owned by his (Yetti’s) grandfather. Yetti also
P500.000.00 and the car worth P100.000.00 be allocated to constructed a small concrete house on the land in 2012 using
them? the materials he purchased on credit from Yolly’s hardware
Article 147 of the Family Code provides in part that when a man and a woman
who are capacitated to marry each other, live exclusively with each other as store. When Yanu returned in 2013, he sued Yetti for recovery
husband and wife without the benefit of marriage or under a void marriage, of possession of the land and prayed that he be reimbursed for
their wages and salaries shall be owned by them in equal shares and the the value of the fruits and that the house be removed. The trial
property acquired by both of them through their work or industry shall be court ruled for Yanu and ordered Yetti to deliver the land and
governed by the rules of co‐ownership. In the absence of proof to the contrary, the value of the fruits from the time he occupied the land in
properties acquired while they lived together shall be presumed to have 2009. The court also ordered that the house be removed to
been obtained by their joint efforts, worker industry, and shall be owned by
restore the land to its former condition.
them in equal shares. A party who did not participate in the acquisition by the
other party of any property shall be deemed to have contributed jointly in the a) Is the judgment of the court correct?
acquisition thereof if the former's efforts consisted in the care and maintenance a) No, the judgment is not correct.
of the family and of the household. Thus: Yetti is presumed a builder in good faith because he believed that the land on
1) the wages and salaries of Luis in the amount of P200,000.00 shall be which he was building on was owned by his predecessor. (Article 526 Civil
divided equally between Luis and Rizza. code) As such, he is entitled to the fruits received before his possession is
2) the house and lot valued at P500.000.00 having been acquired by both of them legally interrupted. (Article 544)
through work or industry shall be divided between them in proportion to their The court also erred in ordering the demolition of the house because the only
respective contribution, in consonance with the rules on co‐ownership. Hence, options of the landowner in case the builder is in good faith are to
Luis gets 2/5 while Rizza gets 3/5 of P500.000.00. appropriate the building with appropriate indemnity or to compel the
3) the car worth P100,000.00 shall be exclusively owned by Rizza, the same builder to buy the land. Demolition of the structure is not one of the options
having been donated to her by her parents. (1997 Bar Question) given to the landowner.
b) May Yetti compel Yanu to sell the land to him?
b) No, Yetti may not compel Yanu to sell the land to him. Under the law, even
if the builder acted in good faith, the option still belongs to the landowner
because by the principle of accession, as owner of the principal which is the land,
he becomes the owner of anything which is added or incorporated into it he has no right of action for forcible entry and detainer even if he should be
subject to his obligation to indemnify the builder or planter if the landowner the owner of the property. (Sps. Ocampo vs. Heirs of Dionisio G.R. No. 191101
decides to appropriate the building or improvement. October 1, 2014)

Is patrimonial property susceptible to acquisitive If the owner of the land encroached upon requires the builder,
prescription? whether in good faith or bad faith, to buy the land, how must
The Civil Code makes it clear that patrimonial property of the State may be the price be fixed?
acquired by private persons through prescription. The price must be fixed at the prevailing market value, reckoned at the time
Article 422 of the Civil Code states that property of public dominion, when no that the landowner elected the choice, and not at the time that the property
longer intended for public use or for public service, shall form part of the was purchased or acquired by the landowner. (Mercy Vda. De Roxas vs. Our
patrimonial property of the state.” It is this provision that controls how public Lady’s Foundation, Inc., G.R. No. 182378, March 6, 2013)
dominion property may be converted into patrimonial property susceptible to
acquisition by prescription.
X promised to donate a property to Y. Y constructed a house
Accordingly, there must be an express declaration by the state that the public
dominion property is no longer intended for public service or the thereon before the donation. If the property was not donated
development of the national wealth or that the property has been converted to him, is Y considered a possessor in good faith?
into patrimonial. Without such express declaration, the property, even if The mere promise to donate the property to Y cannot convert him into a
classified as alienable or disposable, remains property of the public builder in good faith for at the time the improvement was built, such promise
dominion pursuant to Article 420(2), and thus, incapable of acquisition by was not yet fulfilled. It was a mere expectancy of ownership that may or may
prescription. It is only when such alienable and disposable lands are expressly not be realized. If at all, Y is a mere possessor by tolerance. A person whose
declared by the state to be no longer intended for public service or for the occupation of a realty is by sheer tolerance of its owners is not a possessor in
development of national wealth that the period of acquisitive prescription good faith. Hence, he is not entitled to the value of the improvements built
can begin to run. Such declaration shall be in the form of a law duly enacted thereon. (Pada-Kilario vs. CA G.R. No. 134329 January 19, 2000)
by the Congress or a Presidential Proclamation in cases where the President Question 19:
is duly authorized by law. (Republic of the Philippines vs. Cortez G.R. No.
186639 February 5, 2014) A, a co-owner of a parcel of land, allowed C to reside in said
Question 14: land. After some time, A later demands that C should vacate the
property, but the latter refused. May A file an ejectment suit
Does a Certificate of Title vest ownership? even if he is a mere co-owner of the lot?
NO. It is true that certificates of title are indefeasible and binding upon the whole Yes. Any one of the co-owners may bring an action for ejectment.
world. However, certificates of title do not vest ownership. They merely A’s action for ejectment against C is deemed to be instituted for the benefit of
evidence title or ownership of the property. Courts may, therefore, cancel or all co-owners of the property. (Resuena vs. CA, G.R. No. 128338, March 28,
declare a certificate of title null and void when it finds that it was issued 2005)
irregularly. (De Pedro vs. Romasan Development Corporation G.R. No. 194751
November 26, 2014)
Can a co-owner acquire the share of the other co-owners by
prescription?
A, B, C and D are co-owners of a parcel of land. The had their A co-owner cannot acquire by prescription the share of the other co-owners,
land surveyed and the result showed that the adjoining lot of E absent any clear repudiation of the co-ownership.
encroached their land by 500 square meters. They filed a suit In order that the title may prescribe in favor of a co-owner, the following
for unlawful detainer against E. The MTC dismissed the case requisites must concur:
saying that an ejectment suit is not the proper remedy to (1) the co-owner has performed unequivocal acts of repudiation amounting
recover the portion encroached. Is the MTC correct? to an ouster of the other co-owners
Yes. A boundary dispute must be resolved in the context of accion (2) such positive acts of repudiation have been made known to the other co-
reivindicatoria, not an ejectment case. owners
A boundary dispute is not about possession, but encroachment, that is, whether (3) the evidence thereof is clear and convincing. (Antipolo Ining (deceased),
the property claimed by the defendant formed part of the plaintiff‘s property. survived by Manuel Villanueva et. al., vs. Leonardo Vega et. al., G.R. No.
(Ruben Manalang, et. al. vs. Bienvenido and Mercedes Bacani G.R. No. 156995 174727, August 12, 2013)
January 12 2015) The action filed by A, B, C and D did not allege that they
permitted or tolerated the occupation of the portion of their property by E hence, The coconut farm of Federico is surrounded by the lands of
it cannot be an unlawful detainer suit. Romulo. Federico seeks a right of way through a portion of the
land of Romulo to bring his coconut products to the market. He
A complaint for forcible entry was filed by X against Y. X has chosen a point where he will pass through a housing
alleged that Y occupied a piece of his land by constructing a project of Romulo. The latter wants him to pass another way
piggery thereon without his consent. Y, on the other hand, which is about 2 kilometers longer. Who should prevail?
alleged that the land is owned by his wife who inherited the Romulo will prevail.
same from her father. The trial court dismissed the complaint Under Article 650, the easement of right of way shall be established at the point
for forcible entry for failure to establish his prior possession of least prejudicial to the servient estate and where the distance from the
dominant estate to a public highway is the shortest. In case of conflict, the
the parcel of land. Thereafter, X died. Consequently, the heirs
criterion of least prejudice prevails over the criterion of shortest distance.
of X filed a complaint with the trial court for recovery of Since the route chosen by Federico will prejudice the housing project of Romulo,
possession of the same portion of said parcel of land. The trial Romulo has the right to demand that Federico pass another way even though it
court dismissed the complaint because of res judicata. Is there will be longer.
res judicata?
No. There is no identity of causes of action.
The forcible entry case only involves the issue of possession over the subject
property while the recovery of possession case puts in issue the ownership of the
subject property and the concomitant right to possess the same as an attribute of
ownership.
In an action for forcible entry and detainer, the only issue is possession in fact, or
physical possession of real property, independently of any claim of ownership
that either party may put forth in his pleading. If plaintiff can prove prior
physical possession in himself, he may recover such possession even from the
owner, but, on the other hand, if he cannot prove such prior physical possession,
Daniela bought a property that was surrounded by other disease. The lockdown and order preventing or prohibiting mass gatherings is an
properties. She demanded a right of way through Samantha’s event beyond the control of the Hotel.
property. The right of way demanded will cut through half of
the house of Samantha. Samantha claimed that Daniela can John filed a case for specific performance with damages against
actually use the other side of his property which is next to an AHRI before the HLURB. AHRI filed its answer and argued that
irrigation canal by building a bridge over the irrigation canal. it was relieved of its obligation to complete the amenities due
Daniela refused because that would not be the shortest route to its difficult financial condition which rendered compliance
and it would be costly to her. Is Daniela entitled to have a right with its obligation so difficult and under Article 1267, it was
of way through Samantha’s property through the route that she released from its obligation under the contract to sell. Is AHRI
demanded? correct?
No, Daniela cannot demand the route that she wants. No, AHRI is not correct. AHRI’s invocation of Art. 1267 which provides that
Applying the Civil Code, in easement of right of way, when there is a conflict “when the service has become so difficult as to be manifestly beyond the
between convenience to the requesting property, also called the dominant estate, contemplation of the parties, the obligor may also be released therefrom in whole
and the prejudice caused to the requested property, also called the servient estate, or in part,” was factually unfounded. For Art. 1267 to apply, the following
the criterion of least prejudice prevails over the criterion of convenience. conditions should concur, namely: (a) the event or change in circumstances
In this case, the route demanded will seriously prejudice Samantha because it could not have been foreseen at the time of the execution of the contract
will cut through half of her house. On the other hand, the way through the (b) it makes the performance of the contract extremely difficult but not
irrigation canal is very much possible albeit it will be costly to Daniela. impossible
(c) it must not be due to the act of any of the parties
(d) the contract is for a future prestation.
Who has the burden of proving entitlement to an easement of The requisites did not concur because the difficulty of performance under Art.
right of way? 1267 of the Civil Code should be such one party would be placed at a
The dominant estate owner must prove by preponderance of evidence the disadvantage by the unforeseen event. Mere inconvenience, or unexpected
entitlement to an easement of right of way. (Cristobal vs. CA G.R. No. 125339 impediments, or increased expenses did not suffice to relieve the debtor
June 22, 1998) from a bad bargain. (TAGAYTAY REALTY CO., INC. v. GACUTAN, G.R.
No. 160033, July 1, 2015)
Jose claims that a footpath was used by him and his ancestors
for more than 50 years. Later on, a subdivision developer Sacramento Steel Corporation (SSC) is a business entity
enclosed the estate and blocked the footpath of Jose. Jose manufacturing and producing steel and steel products. It
contends that he had already acquired the easement of right of entered into a credit agreement with International Exchange
way by prescription having used it for 50 years or more. Is Bank (IEB). SSC defaulted in the payment of its obligations.
Jose’s contention correct? IEB’s demand for payment went unheeded. IEB filed case for
No. The use of the footpath (right of way) is apparent but not continuous. It is injunction with damages against SSC to enjoin it from removing
not incessant and depends upon the acts of men. Therefore, it cannot be the mortgaged chattels outside of its premises. SSC on the
acquired by prescription. An easement of right of way being a discontinuous
easement can only be acquired by virtue of a title and not by prescription.
other hand filed a case to annul mortgage contracts and to
Further, the subdivision has the right to enclose and fence its property for restructure its outstanding obligations. IEB later filed a
privacy purposes. (Abellana vs. CA G.R. No. 97039 April 24 1992) petition for extrajudicial foreclosure of the chattel mortgage.
Metrobank moved to intervene in the case between SSC and
Because of the Covid-19 Pandemic lockdowns, online business, IEB contending that as creditor of SSC, it has a legal interest in
work from home, became popular. X made a production plant the properties subject of the litigation. Metrobank prayed that
at home which emitted odorous and bad smells. When the mortgage contracts between IEB and SSC be rescinded on
complained, X claimed that she has all the right to do as she the ground that they were entered into to defraud the latter’s
wishes because it is within her property. Is she correct? creditors. Is Metrobank entitled to have the mortgage
No, X is not correct. The right to property, while Constitutionally protected, is contracts rescinded?
not absolute. One of the limitations is that arising from conflict with other rights. No. The following successive measures must be taken by a creditor before he
Particularly, the Civil Code states that the owner of a thing cannot make use may bring an action for rescission of an allegedly fraudulent contract:
thereof in such a manner as to injure the rights of a third person. Sic utere (1) exhaust the properties of the debtor through levying by attachment and
tuo ut alienum non laedas. execution upon all the property of the debtor, except such as are exempt by law
from execution
(2) exercise all the rights and actions of the debtor, save those personal to him
(accion subrogatoria)
OBLIGATIONS AND CONTRACTS (3) seek rescission of the contracts executed by the debtor in fraud of their rights
X and Y were to be married in April 2020. They hired a (accion pauliana).
It is thus apparent that an action to rescind, or an accion pauliana, must be of
wedding planner, booked the hotel, the caterer, makeup artists last resort, availed of only after the creditor has exhausted all the properties
and singers. Then the Covid-19 pandemic came. The of the debtor not exempt from execution of after all other legal remedies
government locked down the whole country, preventing mass have been exhausted and have been proven futile.
gatherings, including the weddings. X and Y demanded that the Metrobank does not appear to have sought other properties of SSC nor has it
wedding push through. While everyone agreed, the hotel exercised all other legal remedies against SSC.
refused. The Hotel claimed that its obligation is made Hence, it is not entitled to the rescission of the mortgage contracts.
(Metropolitan Bank and Trust Company v. International Exchange Bank, GR
impossible by due to a fortuitous event. X and Y objected,
176008, August 10, 2011).
claiming that no one from the side of the couple, from the hotel
or from the suppliers has been afflicted with Covid-19. Is the
Hotel correct in refusing to hold the wedding?
Yes, the Hotel is correct. Under the Civil Code, an obligor is excused from
performing an obligation to do when the obligation cannot be performed due to
impossibility or fortuitous event.
A fortuitous event is an event or happening that is unexpected, or even if
expected cannot be avoided, without fault on the part of the obligor.
In this case, the reason for the Hotel’s inability to perform its obligation is the
strict government response to the Covid-19 pandemic, not simply the
A Joint Affidavit of Undertaking was executed containing a The SPA executed on the same day as the Deeds of Absolute sale appointing
stipulation where C and G promised to replace the damaged Cora as administratix of Amalia’s properties is repugnant to Cora’s claim that
car of R of the same model and of at least the same quality, and the ownership of the same had been transferred to her.) (CLEMENTE v. CA
(G.R. No. 175483, October 14, 2015)
in the event that they cannot replace the car within the stated
period, they would pay the cost of R’s car with interest at 12%
Spouses Tan and Cornelio executed a deed of sale covering two
per month for any delayed payment after November 15, 2015,
lots. On the face of the deed, the sum of P400,000 appears as
until fully paid. Is the Joint Affidavit executed by C and G a
consideration of Cornelio’s purported purchase of properties.
contract that can be the basis of an obligation to pay a sum of
The deed was also undated. After the execution of the deeds,
money in favor of R?
Yes. Contracts are obligatory no matter what their forms may be, whenever the the TCTs of the lots were delivered to Cornelio although none
essential requisites for their validity are present. of the parties are in actual physical possession of the
In determining whether a document is an affidavit or a contract, the court must properties. It appears that the Tans executed the deed merely
look beyond the title of the document, since the denomination or title given by to show to their neighbors that they are the true owners of the
the parties in their document is not conclusive of the nature of its contents. In property because a certain Juan was illegally conveying
the construction or interpretation of an instrument, the intention of the parties is portions of these lands to unsuspecting buyers. Spouses Tan
primordial and is to be pursued. If the terms of the document are clear and
later tried to recover the TCTs from Cornelio but the latter
leave no doubt on the intention of the contracting parties, the literal meaning
of its stipulations shall control. If the words appear to be contrary to the parties’ refused to return them despite repeated demands. Spouses
evident intention, the latter shall prevail over the former. (Cruz v. Gruspe, G.R. Tan filed a complaint for annulment of the deed of sale alleging
No. 191431, March 13, 2013) that the subject deed was simulated and hence null and void. Is
the subject deed void?
Congress enacted RA8436 which authorized the COMELEC “to YES. The parties never intended to be bound by the agreement. Instead, the
use an automated election system (AES) xxx for the process of subject deed as executed merely as a front to show the public that Spouses Tan
were the owners of the properties in order to deter the group of Juan from
voting, counting of votes and canvassing /consolidation of illegally selling the same. Although the subject deed between the parties
results for the national and local elections”. Smartmaatik won stipulated a consideration of P400,000, there was actually no exchange of
the public bidding for the AES contract. COMELEC, through a money between them. And finally, the undated deed, which serves as counter-
resolution, approved Smartmaatik’s PCOS Extended Warranty agreement to, and which was simultaneously executed with, the subject deed,
Proposal through direct contracting in view of the reason that unmistakably evinces absolute simulation. (TANCHULING, ET.AL. v.
time is of the essence such that the Commission and the Bids CANTELA (G.R. No. 209284, November 10, 2015)
and Awards Committee are constrained by tight time schedule
if public bidding are to be conducted in the refurbishment Margaret leased her studio apartment to Myrna for a
and/or repair of the machines considering all procurement stipulated rent of P15,000 per month for one year, payable on
activities are lined up. COMELEC and Smartmaatik entered into the first Friday of every month. As a condition for the
the Extended Contract Warranty. Is the Extended Warranty acceptance of the lease, Myrna demanded that the plumbing be
Contract valid? first fixed no later than 30 days, to which Margaret agreed.
NO. The principle of autonomy of contracts cannot preclude the Extended Meanwhile, the first rent fell due and Margaret demanded
Warranty Contract from scrutiny. “Government contracts shall be void as against payment from Myrna. The latter, however, refused to pay on
the law and public policy, where a statutory requirement of open competitive the ground that Margaret had not yet complied with her
bidding has been ignored. As a corollary, agreements directly tending to prevent obligation to fix the plumbing. Margaret still sued Myrna for
bidding for covered government contracts may violate public policy”. The
eviction.
exhortation holds true with respect to the Extended Warranty Contract which is
unquestionably a government contract imbued with public interest. (Pabillo vs. a. What is delay? Is Myrna in delay?
Comelec, G.R. No. 216562, April 21, 2015) a. Under the Civil Code, delay occurs when those obliged to deliver or to do
something fails to do so and the obligee has made a judicial or extrajudicial
demand.
Amalia was the owner of lots 1, 2 and 3. Amalia allowed her
In this case, Myrna is not yet in delay.
children and grandchildren the use and possession of her Under the same law, in reciprocal obligations, neither party incurs in delay if
properties. In 2013, Amalia executed a deed of absolute sale in the other party does not comply or is not ready to comply in a proper
favor of her daughter Cora, bearing on its face the price of manner with what is incumbent upon him.
P250,000. On the same day, Amalia also executed a Special Here, Margaret cannot demand Myrna’s obligation to pay rent under the lease
Power of Attorney in favor of Cora which empowered Cora to because she, Margaret herself, had not yet complied with her obligation to fix
administer Lots 1,2, and 3. Amalia and her other children the plumbing.
continued to possess the lands in question. Thereafter, Amalia b. Under the Civil Code, what are the instances where demand by
and Cora left for the U.S. When Cora returned to the Philippines the creditor is not necessary for delay to exist?
in 2016, she registered the sale over lots 1 and 2 with the b. In the following situations, demand by the creditor is not necessary in order
Registry of Deeds. In 2017 Amalia died in the U.S. and was that delay may exist:
1. When the obligation or the law expressly so declares; or
succeeded by her four children. Soon, Cora sought to eject her 2. When from the nature and the circumstances of the obligation it appears
siblings Bong and Dado, who were then staying on the that the designation of the time when the thing is to be delivered or the
properties. Only then did Bong and Dado learn of the transfer service to be rendered was a controlling motive for the establishment of the
of titles of Amalia to Cora. Were the Deeds of Absolute Sale contract; or
between Amalia and Cora over the properties valid? 3. When demand would be useless, as when the obligor has rendered it
There was no valid contract between Amalia and Cora because their consent was beyond his power to perform.
absent.
The contract of sale was a mere simulation. Simulation takes place when the
parties do not really want the contract they have to produce legal effects
expressed by its wordings. In ruling that the Deed of Absolute Sale was
simulated, the lower court considered the totality of prior, contemporaneous
and subsequent acts of the parties.
In this case, there was no indication that Amalia intended to alienate her
properties in favor of Cora. Amalia continued exercising acts of dominion and
control over the properties even after the execution of Deeds of Absolute Sale.
CREDIT TRANSACTIONS ERDI was engaged in realty construction and the sale of
condominium buildings. Rosario Tajonera, the VP of ERDI,
Spouses Lito and Linda Jimenez executed a promissory note obtained loans from PNB and entered into several credit
and real estate mortgage in favor of the Rural Bank of Hagonoy agreements. As security, ERDI executed REM over 3 parcels of
(RBH) to secure a loan which they obtained from the bank in land. The parties entered into an amendment of the loan
the amount of P300,000.00. About two months thereafter, the agreement whereby the credit line of ERDI was increased by
RBH in turn borrowed money from the Bangko Sentral ng PNB. PNB refused to release the balance of the last credit
Pilipinas (BSP) in the amount of P600,000.00. As security for accommodation granted to ERDI which resulted in the delay of
the loan that RBH obtained from BSP, they pledged the the completion of the project. Upon failure to pay, PNB
promissory note executed by the Jimenez in favor of RBH and foreclosed the said property and a new title was issued in the
the latter also surrendered possession of the loan documents name of PNB. The ERDI filed a complaint for annulment of sale,
as well as the TCT of the Jimenez to BSP. BSP later demanded cancellation of mortgage. It alleged that the title to the
payment of the loan from the Jimenez and when the latter mortgaged property that was transferred to PNB as a
failed to pay, BSP filed an application for extrajudicial consequence of the foreclosure proceedings was null and void
foreclosure of the mortgage executed by the Jimenez. The as their mortgage obligation had been novated and no new
Jimenez contested the extrajudicial foreclosure and filed an loans were released to them. Is the contention of ERDI correct?
application for preliminary injunction. YES. The agreement between PNB and Spouses Tajonera and ERDI was one of
Does the Rural Bank of Hagonoy have the right to pledge the a loan. Under the law, a loan requires the delivery of money or any other
security documents of BSP? consumable object by one party to another who acquires ownership thereof,
RBH has no authority to pledge the security documents to BSP during the term on the condition that the same amount or quality shall be paid. Loan is a
of the real estate mortgage contract between Rural bank and the spouses Jimenez reciprocal obligation, as it arises from the same cause where one party is the
because if it is within the term of the contract, the mortgaged property remains creditor, and the other the debtor. The obligation of one party in a reciprocal
to be property of the Jimenez. obligation is dependent upon the obligation of the other, and the performance
The RBH was neither the absolute owner of the subject property nor the should ideally be simultaneous. This means that in a loan, the creditor should
security documents it had pledge to BSP. The possession of the security release the full loan amount and the debtor repays it when it becomes due
documents was given to the Rural Bank merely as security collateral in case and demandable.
of non-payment of the loans. Its only purpose is to guarantee the fulfillment of PNB, not having released the balance of the last loan proceeds in accordance
the Jimenez obligation and in case of default on the part of the latter bank as with the Amendment had no right to demand from Spouses Tajonera’s
credit-mortgagee by way of judicial or extrajudicial foreclosure. compliance with their own obligation under the loan. Indeed, if a party in a
reciprocal contract like a loan does not perform its obligation, the other party
Does BSP have the right to foreclose the mortgage of the Jimenez? cannot be obliged to perform what is expected of them while the other's
BSP has no authority to foreclose the subject mortgage. The mere pledge and obligation remains unfulfilled. (PNB vs. Spouses Tajonera, G.R. No. 195889,
deposit of the mortgage contract, transfer certificate of title and promissory note September 24, 2014)
executed by the RBH in favor of BSP, does not produce the effect of giving
BSP the authority to intervene with the transaction between the Spouses
Jimenez and the Rural Bank because under the principle of relativity,
Menelia Chua borrowed from Spouses Martires the amount of
contracts take effect only between the parties, their assigns and their heirs. P150,000. The loan was secured by a real estate mortgage over
In the absence of a valid assignment of RBH’s right to BSP, the latter cannot 24 memorial lots located at Holy Cross Memorial Park. Upon
proceed against the property of the Jimenez. (BSP vs. Libo-on November 23, failure of Chua to pay the obligation, the titles over the said lots
2015 G. R. No. 173864) were transferred in the name of the Spouses Martires, without
foreclosure by virtue of a Deed of Transfer. Chua then filed a
iBank, a commercial bank, granted Yulim, a domestic complaint with the RTC seeking the annulment of the mortgage
partnership, a credit facility in the form of an Omnibus Loan contracts and the alleged forged Deed of Transfer of their lands
Line for P5,000,000.00. The partners, namely, H, I, J and K to Spouses Martires. Spouses Martires opposed, alleging that
executed a Continuing Surety Agreement in favor of iBank the Deed of Transfer was valid. Is the transfer of the lands to
whereby bound themselves jointly and severally with Yulim Martires via the deed of transfer valid?
and unconditionally and irrevocably guaranteed full and No, the transfer is not valid.
complete payment of any and all credit accomodations granted The original transaction between the parties was a mortgage and the intent of
by the bank to Yulim. Yulim defaulted on the said note. iBank both Chua and Martires is that the subject property shall serve as security for the
former's obligation to the latter. The execution of the disputed Deed of Transfer
sent demand letters to Yulim but the demand went unheeded.
would show that the said document was executed to circumvent the terms of
iBank then filed a Complaint for Sum of Money with Replevin the original agreement and deprive respondent of her mortgaged property
against Yulim and its sureties, H, I, J, and K. Are the individual without the requisite foreclosure. The subsequent assignment of ownership of
defendants liable for the obligation of Yulim? the lands to the Spouses Martires without the benefit of foreclosure constitutes
Yes, the individual defendants are jointly and severally with Yulim. pactum commissorium which is prohibited by law. (Spouses Lehner vs Chua,
A surety is considered in law as being the same party as the debtor in relation G.R. No. 174240, March 20, 2013.)
to whatever is adjudged touching the obligation of the latter, and their
liabilities are interwoven as to be inseparable. And it is well settled that when X borrowed P2 Million from Y. As security, X offered his house
the obligor or obligors undertake to be ―jointly and severally liable, it means
that the obligation is solidary, as in this case. There can thus be no doubt that
and lot. Y drafted a Deed of Sale with right of repurchase. X
the individual petitioners have bound themselves to be solidarily liable with failed to pay the loan within the stipulated period. Y filed an
Yulim for the payment of its loan with iBank.(Yulim International Company Affidavit of Consolidation to attest that the seller has not
vs. International Exchange Bank (now Union Bank), G.R. No. 203133 February repurchased the property. Is Y correct?
18, 2015) No, Y is not correct. The contract entered by X and Y was an equitable
Thus, the provisions on solidary obligations will apply and the creditor can mortgage because the property was not intended to be sold but only to be used
demand full compliance of the entire obligation for any one of the solidary as security for the payment of the loan. Under the Civil Code, the creditor
debtors. cannot appropriate the property given as security because that would violate
the rule on pactum commissorium.
Thus, Y’s Affidavit of Consolidation should not be accepted.
TORTS Can the court award moral damages despite the failure of the
parties to present other evidences other than the death of the
X, a bestselling online seller of lip tints, found her sales going victim in cases of homicide or murder?
down because her customers were having lip rashes. X even YES. Moral damages are mandatory without need of allegation and proof other
had to refund some of the buyers. When X had her stocks than the death of the victim, owing to the fact of the commission of murder or
examined by a chemist, it was found that it had a high alcohol homicide, such as when the victim was gunned down in front of his house.
content. Due to this, X demanded damages against her supplier If medical and funeral expenses were substantiated, actual damages may be
on the basis of Art. 2176 of the Civil Code. Her supplier awarded.
However, damages for loss of earning capacity may not be awarded absent
defended that X is not entitled to damages on the basis of Art. documentary evidence except where the victim was either self-employed or a
2176 because they have a pre-existing contract. Is the supplier daily wage worker earning less than the minimum wage under current labor
correct? laws. The testimony of the wife of the victim, a Senior Desk Coordinator of a
No, the supplier is not correct. radio station, as to the latter’s monthly salary without any documentary evidence
Jurisprudence (e.g. Loadmasters vs. Glodel Brokerage) postulates that a liability will not suffice to substantiate the claim. (Espineli v. People G.R. No. 179535,
for tort may arise even under a contract, where tort is that which breaches June 9, 2014)
the contract.
In this case, the negligence or fault of the supplier broke the contract because the
Can actual damages and temperate damages be awarded at the
object of the sale between them was toxic and not suitable for public
consumption. same time?
Hence, the action for damages can proceed. No. temperate and actual damages are mutually exclusive in that both may
not be awarded at the same time. (People v. Gutierrez, G.R. No. 188602,
February 4, 2010)
When does the doctrine of res ipsa loquitur apply?
For the doctrine of res ipsa loquitur to apply, the complainant must show that: (1)
the accident is of such character as to warrant an inference that it would not MMTC entered into an Agreement to Sell with Rapid Transit
have happened except for the defendant’s negligence; (2) the accident must Corporation under the Bus Installment Purchase Program of
have been caused by an agency or instrumentality within the exclusive the government. Rapid was given authority to operate the
management or control of the person charged with the negligence buses which were the subject of the sale although MMTC still
complained of; and (3) the accident must not have been due to any voluntary appears to be the registered owner until the price is fully paid.
action or contribution on the part of the person injured. The present case On May 5, 2015 one of the buses driven by Rapid’s driver hit
satisfies all the elements of res ipsa loquitur. (Josefa vs. MERALCO, G.R. No.
and ran over Maligaya Coo, a pedestrian, while she was
182705, July 1, 2014)
crossing Taft Avenue. The heirs of Maligaya filed a suit for
damages against MMTC, Rapid Transit and the latter’s driver.
X, a Grab driver, was bumped by a speeding Toyota Innova
MMTC filed an Answer claiming that it has no liability to the
owned and driven by Y. X was hospitalized and was not able to
heirs of Maligaya because it was not the beneficial owner of the
earn a living for a month. In the trial for damages against Y, X
bus but Rapid Transit and that it was the latter’s employee who
claimed actual damages in the form of hospital expenses,
was guilty of negligence. Resolve.
therapy expenses, medicines, and lost of regular income. All The contention of MMTC is without merit.
except the regular income was substantiated with receipts. The Under the registered owner rule, the registered owner of a motor vehicle
trial court still awarded actual damages for regular income, involved in a vehicular accident continues to be liable to third persons who
estimating it at P4,000.00 per week based on the average sales are injured as a result of the operation thereof. The main aim of the motor
of X. Is the trial court correct? vehicle registration is to identify the owner so that if any accident happens, or
No, the trial court is not correct. any damage or injury is caused by the vehicle on the public highways,
Jurisprudence (e.g. Sui Yong vs. IAC) postulates that actual or compensatory responsibility therefor can be fixed on a definite individual, the registered
damages cannot be presumed and that they must be duly proved. Here, the trial owner.
court simply based its award on X’s testimony. This is wrong because the Instances are numerous where vehicles without positive identification of the
question of income could have been duly established through receipts or owner or drivers, or with very scant means of identification. It is to forestall these
financial documents from the company. Hence, the award of P4,000 per week as circumstances, so prejudicial to the public that the motor vehicle registration is
lost regular income should be deleted. primarily ordained in the interest of the determination of persons responsible for
damages or injuries caused on public highways. (MMTC v. Cuevas June 15,
2015)
The Aegis Nursing Institution, Inc. (ANI) was lambasted by Ding
in a radio broadcast as operating a diploma mill churning out
ill-trained nursing graduates who had paid their way through. In 2010, X sued Y for sum of money, arising from a loan
ANI sued Ding for moral damages. Ding filed an answer where contract. The court decided in favor of X. The decision became
he raised the defense that a juridical person is not entitled to final and executory in December 2012. To this day, Y has not
moral damages because it cannot experience physical suffering paid the money judgment. What legal interest rate shall be
or wounded feelings. Is Ding’s defense meritorious? Explain. imposed on the unpaid monetary judgment?
The legal rate of interest on judgments based on money obligations is 6%
No, Ding’s defense that a juridical person is not entitled to moral damages is not
provided for under the Monetary Board Circular (No, 799) as applied by the
meritorious.
Supreme Court in several cases (e.g. Nacar vs. Gallery Frames).
Under the Civil Code provisions on Torts, moral damages may be recovered in
However, this rate of 6% will only be applied prospectively or from July 1, 2013.
cases of libel, slander, or any other form of defamation. The Supreme Court has
Before July 1, 2013, the rate is 12%. Thus, in this case, from December 2012 to
held that the law does not distinguish whether the plaintiff is a natural or juridical
June 30, 2013, the rate shall be 12%. From July 1, 2013 onwards, the rate shall
person.
be 6%.
Here Ding was guilty of libel or defamation when he lambasted ANI in a radio
broadcast.
Hence he is liable for moral damages to ANI. [Filipinas Broadcasting Corp. v.
Ago Medical and Educational Center, G.R. 141994, 17 Jan 2005; Article
2219(17)]
 testamentary provisions if the will is executed in China and the property being
Effect and Application of Laws disposed is located in Indonesia? (2012 BAR) a) Chinese law b) Philippine law
c) Indonesia law d) Japanese law A Japanese national and a Filipino national
(Civil Code) entered into a contract for services in Thailand. The services will be rendered in
Congress passed a law imposing taxes on income earned out of a particular Singapore. In case of breach, what law will govern? (2012 BAR) a) Thailand law
activity that was not previously taxed. The law, however, taxed incomes already b) Philippine law c) Singapore law d) Japanese law Pedro (Filipino) and his wife
earned within the fiscal year when the law took effect. Is the law valid? (2011 Jane (American) executed a joint will in Canada, where such joint will is valid.
BAR) (A) No, because laws are intended to be prospective, not retroactive. (B) In case the joint will is probated in Japan, what law will govern the formalities of
No, the law is arbitrary in that it taxes income that has already been spent. (C) the joint will? (2012 BAR) a) American law b) Philippine law c) Canadian law d)
Yes, since tax laws are the lifeblood of the nation. (D) Yes, tax laws are an Japanese law
exception; they can be given retroactive effect. A French national revokes his will in Japan where he is domiciled. He then
The doctrine of stare decisis prescribes adherence to precedents in order to changed his domicile to the Philippines where he died. The revocation of his will
promote the stability of the law. But the doctrine can be abandoned (2011 BAR) in Japan is valid under Japanese law but invalid under Philippine law. The
(A) When adherence to it would result in the Government’s loss of its case. (B) affected heir is a Malaysian national residing in the Philippines. What law will
When the application of the doctrine would cause great prejudice to a foreign apply? (2012 BAR) a) Japanese law b) Philippine law c) French law d)
national. (C) When necessary to promote the passage of a new law. (D) When the Malaysian law
precedent has ceased to be beneficial and useful. Pedro (Filipino) and Bill (American) entered into a contract in Australia,
Include: Conflict of Laws (Private International Law) whereby it was agreed that Pedro will build a commercial building for Bill in the
Q: Ted, married to Annie, went to Canada to work. Five (5) years later, Ted Philippines, and in payment for the construction, Bill will transfer and convey his
became a naturalized Canadian citizen. He returned to the Philippines to cattle ranch located in Japan in favor of Pedro. In case Pedro performs his
convince Annie to settle in Canada. Unfortunately, Ted discovered that Annie obligation, but Bill fails or refuses to pay, what law will govern? (2012 BAR) a)
and his friend Louie were having an affair. Deeply hurt, Ted returned to Canada American law b) Philippine law c) Australian law d) Japanese law
and filed a petition for divorce which was granted. In December 2013, Ted Give at least two reasons why a court may assume jurisdiction over a conflict of
decided to marry his childhood friend Corazon in the Philippines. In preparation laws case. (2010 Bar Question)
for the wedding, Ted went to the Local Civil Registry of Quezon City where his
marriage contract with Annie was registered. He asked the Civil Register to Page 4 of 199
annotate the decree of divorce on his marriage contract with Annie. However, he Civil Law
was advised by the National Statistics Office (NSO) to file a petition for judicial 1. Statute theory. There is a domestic law authorizing the local court to assume
recognition of the decree of divorce in the Philippines. jurisdiction.
Is it necessary for Ted to file a petition for judicial recognition of the decree of 2. Comity theory. The local court assumes jurisdiction based on the principle of
divorce he obtained in Canada before he can contract a second marriage in the comity or courtesy.
Philippines? (2014 BAR) ALTERNATIVE
A: YES, a divorce decree even if validly obtained abroad cannot have effect in
the Philippines unless it is judicially recognized through an appropriate petition 3. Public Order. To maintain peace and order, disputes that disturb the peace of
filed before Philippine courts. The foreigner must file a petition under Rule 108 the forum should be settled by the courts of the forum even though the
and prove therein the fact of divorce by presenting an official copy attested by application of a foreign law is necessary for the purpose.
the officer having custody of the original. He must also prove that the court 4. Humanitarian Principle. An aggrieved party should not be left without remedy
which issued the divorce has jurisdiction to in a forum even though the application of a foreign law by the courts of the
Page 2 of 199 forum is unavoidable in order to extend relief.
Civil Law TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the
issue it and the law of the foreign country on divorce (Corpuz v. Sto. Tomas, statement is false. Explain your answer in not more than two (2) sentences. (5%)
G.R. No. 186571, August 11, 2010). The doctrine of “processual presumption” allows the court of the forum to
An Australian living in the Philippines acquired shares of stock worth P10 presume that the foreign law applicable to the case is the same as the local or
million in food manufacturing companies. He died in Manila, leaving a legal domestic law. (2009 Bar Question)
wife and a child in Australia and a live-in partner with whom he had two children
in Manila. He also left a will, done according to Philippine laws, leaving all his TRUE. If the foreign law necessary to resolve an issue is not proven as a fact, the
properties to his live-in partner and their children. What law will govern the court of the forum may presume that the foreign law is the same as the law of the
validity of the disposition in the will? (2011 BAR) (A) Australia law since his forum.
legal wife and legitimate child are Australians and domiciled in Australia. (B) On December 1, 2000, Dr. Juanito Fuentes executed a holographic will, wherein
Australian law since the intrinsic validity of the provisions of a will is governed he gave nothing to his recognized illegitimate son, Jay. Dr. Fuentes left for the
by the decedent’s national law. (C) Philippine law since the decedent died in United States, passed the New York medical licensure examinations, resided
Manila and he executed his will according to such law. (D) Philippine law since therein, and became a naturalized American citizen. He died in New York in
the decedent’s properties are in the Philippines. This attribute or incident of a 2007. The laws of New York do not recognize holographic wills or compulsory
case determine whether it is a conflict-of-laws case or one covered by domestic heirs.
law. (2012 BAR) a) Cause of action b) Foreign element c) Jurisdiction d) Forum Can the holographic will of Dr. Fuentes be admitted to probate in the
non conveniens Philippines? Why or why not? (3%) (2009 Bar Question)
Atty. BUKO, a Filipino, executed a will while he was in Spain. The attestation
clause of the said will does not contain Buko’s signature. It is valid under Yes, the holographic will of Dr. Fuentes may be admitted to probate in the
Spanish law. At its probate in Manila, it is being opposed on the ground that the Philippines because there is no public policy violated by such probate. The only
attestation clause does not contain BUKO’s signature. Is the opposition correct? issue at probate is the due execution of the will which includes the formal
Choose the best answer. (2012 BAR) a) Yes, because it is a fatal defect. b) Yes, validity of the will. As regards formal validity, the only issue the court will
the will is not valid under Philippine law. c) No, attestation clause is not an act of resolve at probate is whether or not the will was executed in accordance with the
the testator. d) No, the governing law is Spanish law. form prescribed by the law observed by the testator in the execution of his will.
Even if the applicable law is a foreign law, a count in the Philippines may be For purposes of probate in the Philippines, an alien testator
constrained to apply Philippine law under any of the following instances, except: Page 5 of 199
(2012 BAR) a) when the foreign law, judgment or contract is contrary to a sound Civil Law
and important public policy of the forum; b) when the property subject of the may observe the law of the place where the will was executed (Article 17, NCC),
case is located outside of the Philippines; c) when the foreign law or judgment is or the formalities of the law of the place where he resides, or according to the
penal in nature; d) when the foreign law is procedural in nature. If a will is formalities of the law of his own country, or in accordance with the Philippine
executed by a testator who was born a Filipino citizen but became naturalized Civil Code (Art. 816, NCC).Since Dr. Fuentes executed his will in accordance
Japanese citizen at the time of his death, what law will govern its with Philippine law, the Philippine court shall apply the New Civil Code in
Page 3 of 199 determining the formal validity of the holographic will. The subsequent change
Civil Law in the citizenship of Dr. Fuentes did not affect the law governing the validity of
his will. Under the New Civil Code, which was the law used by Dr. Fuentes, the
law in force at the time of execution of the will shall govern the formal validity
of the will (Article 795, NCC). New York law shall apply. The petition for change of name filed in New York
Assuming that the will is probated in the Philippines, can Jay validly insist that does not concern the legal capacity or status of the petitioner. Moreover, it does
he be given his legitime? Why or why not? (3%) (2009 Bar Question) not affect the Registry of any other country including the country of birth of the
petitioner. Whatever judgment is rendered in that petition will have effect only in
No, Jay cannot insist because under New York law he is not a compulsory heir New York. The New York court cannot, for instance, order the Civil Registrar in
entitled to a legitime. the Philippines to change its records. The judgment of the New York Court
The national law of the testator determines who his heirs are, the order that they allowing a change in the name of the Petitioner will be limited to the records of
succeed, how much their successional rights are, and whether or not a the petitioner in New York and the use of the new name in all her transactions in
testamentary disposition in his will is valid (Article 16, NCC). Since, Dr. Fuentes New York. Since the records and processes in New York are the only ones
was a US citizen, the laws of New York determines who his heirs are. And since affected the New York Court will apply New York law in resolving the petition.
New York law does not recognize the concept of compulsory heirs, Jay is not a ALTERNATIVE
compulsory heir of Dr. Fuentes entitled to a legitime.
Emmanuel and Margarita, American citizens and employees of the U.S. State Philippine law shall apply (Art. 15, NCC). Status, conditions, family rights and
Department, got married in the African state of Kenya where sterility is a ground duties are governed by Philippine laws as to Filipinos even though sojourning
for annulment of marriage. Thereafter, the spouses were assigned to the U.S. abroad.
Embassy in Manila. On the first year of the spouses’ tour of duty in the ANOTHER ALTERNATIVE
Philippines, Margarita filed an annulment case against Emmanuel before a
Philippine court on the ground of her husband’s sterility at the time of the If Ligaya, a Filipino, files a petition for change of name with the District Court of
celebration of the marriage. New York, the laws of New York will govern since change of name is not one of
A. Will the suit prosper? Explain your answer. (3%) (2009 Bar Question) those covered by the principles of nationality.
B. If Henry, an American citizen residing in the Philippines, files a petition for
No, the suit will not prosper. As applied to foreign nationals with respect to change of name before a Philippine court, what law shall apply? Explain (2%)
family relations and status of persons, the nationality principle set forth in Article (2009 Bar Question)
15 of the Civil Code will govern the relations of Emmanuel and Margarita. Since
they are American citizens, the governing law as to the ground for annulment is Philippine law will apply. The petition for change of name in the Philippines will
not Kenyan law which Margarita invokes in support of sterility as such ground; affect only the records of the petitioner and his transactions in the Philippines.
but should be U.S. law, which is the national law of both Emmanuel and The Philippine court can never acquire jurisdiction over the custodian in the US
Margarita as recognized under Philippine law. Hence, the Philippine court will of the records of the petitioner. Moreover, change of name has nothing to do with
not give due course to the case based on Kenyan law. The nationality principle as the legal capacity or status of the alien. Since Philippine records and transactions
expressed in the application of national law of foreign nationals by Philippine are the only ones affected, the Philippine court may effect the change only in
courts is established by precedents (Pilapil v. Ibay-Somera, 174 SCRA 653 accordance with the laws governing those records and transactions. That the law
[1989], Garcia v. cannot be but Philippine law.
Page 6 of 199 ALTERNATIVE
Civil Law
Recio, 366 SCRA 437 [2001], Llorente v. Court of Appeals 345 SCRA 92 U.S. Law shall apply as it is his national law. This is pursuant to the application
[2000], and Bayot v. Court of Appeals 570 SCRA 472 [2008]). of lex patriae or the nationality principle, by which his legal status is governed by
ANOTHER national law, the matter of change of name being included in legal status. The
The forum has jurisdiction over an action for the annulment of marriage Supreme Court has
solemnized elsewhere but only when the party bringing the action is domiciled in Page 8 of 199
the forum. In this case, none of the parties to the marriage is domiciled in the Civil Law
Philippines. They are here as officials of the US Embassy whose stay in the reiterated in several cases, that the lex patriae as provided in Article 15 of the
country is merely temporary, lasting only during their fixed tour of duty. Fence, Civil Code is applicable to foreign nationals in determining their legal status
the Philippine courts have no jurisdiction over the action. (supra).
B. Assume Emmanuel and Margarita are both Filipinos. After their wedding in II. Human Relations (Arts. 19-22, Civil Code)
Kenya, they come back and take up residence in the Philippines. Can their Spouses Magtanggol managed and operated a gasoline station on a 1,000 sq.m.
marriage be annulled on the ground of Emmanuel’s sterility? Explain. (3%) lot which they leased from Francisco Bigla-awa. The contract was for a period of
(2009 Bar Question) three (3) years. When the contract expired, Francisco asked the spouses to
peacefully vacate the premises. The spouses ignored the demand and continued
No, the marriage cannot be annulled under Philippine law. Sterility is not a with the operation of the gasoline station.
ground for annulment of marriage under Article 45 of the Family Code. One month after, Francisco, with the aid of a group of armed men, caused the
ANOTHER closure of the gasoline station by constructing fences around it.
No, the marriage cannot be annulled in the Philippines. Was the act of Francisco and his men lawful? Why? (4%) (2014 BAR)
The Philippine court shall have jurisdiction over the action to annul the marriage
not only because the parties are residents of the Philippines but because they are No, the act was not lawful. Even if the lessee’s right to occupy the premises has
Filipino citizens. The Philippine court, however, shall apply the law of the place expired, the lessor cannot physically oust the lessee from the leased premises if
where the marriage was celebrated in determining its formal validity (Article 26, the latter refuses to vacate. The lessor must go through the proper channels by
FC; Article 17, NCC). filing an appropriate case for unlawful detainer or recovery of possession. Every
Since the marriage was celebrated in Kenya in accordance with Kenyan law, the possessor has a right to be respected in his possession (Article 539) and in no
formal validity of such marriage is governed by Kenyan law and any issue as to case my possession be acquired through force or intimidation as long as there is a
the formal validity of that marriage shall be determined by applying Kenyan law possessor who objects thereto. (Article 536) The act of Francisco is an abuse of
and not Philippine law. rights because even if he has the right to recover possession of his property, he
However, while Kenyan law governs the formal validity of the marriage, the must act with justice and give the lessees their day in court and observe honesty
legal capacity of the Filipino parties to the marriage is governed not by Kenyan and good faith.
law but by Philippine law (Article 15, NCC). Sterility of a party as a ground for When one exercises a right recognized by law, knowing that he thereby causes an
the annulment of marriage is not a matter of form but a matter of legal capacity. injustice to another, the latter is entitled to recover damages. This is known as the
Hence, the Philippine court must apply Philippine law in determining the status principle of (2011 BAR) (A) res ipsa loquitur. (B) damnum absque injuria. (C)
of the marriage on the ground of absence or defect in the legal capacity of the vicarious liability. (D) abuse of rights.
Filipino parties. Since sterility does not constitute absence or defect in the legal Six tenants sued X, the landowner, for willfully denying them water for their
capacity of the parties under Philippine law, there is no ground to avoid or annul farms, which water happened to flow from land under X’s control, his intention
the marriage. Hence, the Philippine court has to deny the petition. being to force them to leave his properties. Is X liable for his act and why? (2011
Page 7 of 199 BAR) (A) No, because the tenants must be content with waiting for rainfall for
Civil Law their farms. (B) No, since X owns both the land and the water. (C) Yes, because
A. If Ligaya, a Filipino citizen residing in the United States, file a petition for the tenants’ farms have the natural right of access to water wherever it is located.
change of name before the District Court of New York, what law shall apply? Page 9 of 199
Explain. (2%) (2009 Bar Question) Civil Law
(D) Yes, since X willfully caused injury to his tenants contrary to morals, good
customs or public policy.
Janice and Jennifer are sisters. Janice sued Jennifer and Laura, Jennifer’s
business partner for recovery of property with damages. The complaint did not
allege that Janice exerted earnest efforts to come to a compromise with the
defendants and that such efforts failed. The judge dismissed the complaint
outright for failure to comply with a condition precedent. Is the dismissal in
order? (2011 BAR) (A) No, since Laura is a stranger to the sisters, Janice has no
moral obligation to settle with her. (B) Yes, since court should promote amicable
settlement among relatives. (C) Yes, since members of the same family, as
parties to the suit, are required to exert earnest efforts to settle their disputes
before coming to court. (D) No, the family council, which would ordinarily
mediate the dispute, has been eliminated under the Family Code.
PERSONS
 a beneficiary became vested upon the death of Dr. Lopez. When Roberto died
PERSONS AND PERSONALITY after Dr. Lopez, his right to receive the insurance proceeds became part of his
hereditary estate, which in turn was inherited in equal shares by his legal
Which of the following is NOT included in the attributes of heirs, namely, his spouse and children. Therefore, Roberto’s children and his
juridical capacity? (2012 BAR) a) Juridical capacity is inherent spouse are entitled to Roberto’s one-third share in the insurance proceeds.
in every natural person, and therefore it is not acquired. b)
Juridical capacity is lost only through death. c) Juridical At age 18, Marian found out that she was pregnant. She insured her own life
capacity is the fitness to be the subject of legal relations. d) and named her unborn child as her sole beneficiary. When she was already
Juridical capacity cannot exist without capacity to act. due to give birth, she and her boyfriend Pietro, the father of her unborn child,
were kidnapped in a resort in Bataan where they were vacationing. The military
gave chase and after one week, they were found in an abandoned hut in Cavite.
A pedestrian, who was four (4) months pregnant, was hit by a Marian and Pietro were hacked with bolos. Marian and the baby she delivered
bus driver while crossing the street. Although the pedestrian were both found dead, with the baby’s umbilical cord already cut. Pietro
survived, the fetus inside her womb was aborted. Can the survived.
pedestrian recover damages on account of the death of the
fetus?
No, if the fetus did not comply with the requirements under Article 41 of the
Civil Code.
Article 41 of the Civil Code requires that to be considered a person, a fetus with
an intrauterine life of less than seven months must survive for the full
twenty-four hours from complete separation from the mother’s womb.

Because of X’s gross negligence, Y suffered injuries that

resulted in the abortion of the foetus she carried. Y sued X for,
among other damages, P1 million for the death of a family
member. Is Y entitled to indemnity for the death of the foetus
she carried? (2011 BAR) (A) Yes, since the foetus is already
regarded as a child from conception, though unborn. (B) No,
since X’s would not have known that the accident would result
in Y’s abortion. (C) No, since birth determines personality, the
accident did not result in the death of a person. (D) Yes, since
the mother believed in her heart that she lost a child.

Birth determines personality. Death extinguishes it. Under what circumstances

may the personality of a deceased person continue to exist? (2011 BAR) (A) In
case of re-appearance of a missing person presumed dead. (B) In protecting the
works of a deceased under intellectual property laws. (C) In case of declaration
of presumptive death of a missing spouse. (D) In the settlement of the estate of a
deceased person.

Dr. Lopez, a 70-year old widower, and his son Roberto both
died in a fire that gutted their home while they were sleeping
in their air-conditioned rooms. Roberto’s wife, Marilyn, and
their two children were spared because they were in the
province at the time. Dr. Lopez left an estate worth P20M and a
life insurance policy in the amount of P1M with his three
children --- one of whom is Roberto --- as beneficiaries. Marilyn
is now claiming for herself and her children her husband’s
share in the estate left by Dr. Lopez, and her husband’s share in
the proceeds of Dr. Lopez’s life insurance policy. Rule on the
validity of Marilyn’s claims with reasons. (4%) (2009 Bar
Question)
As to the Estate of Dr. Lopez:
Marilyn is not entitled to a share in the estate of Dr. Lopez. For purposes of
succession, Dr. Lopez and his son Roberto are presumed to have died at the
same time, there being no evidence to prove otherwise, and there shall be no
transmission of rights from one to the other (Article 43, NCC). Hence,
Roberto inherited nothing from his father that Marilyn would in turn inherit
from Roberto. The children of Roberto, however, will succeed their grandfather,
Dr. Lopez, in representation of their father Roberto and together will receive 1/3
of the estate of Dr. Lopez since their father Roberto was one of the three children
of Dr. Lopez. Marilyn cannot represent her husband Roberto because the
right is not given by law to a surviving spouse.
As to the proceeds of the insurance on the life of Dr. Lopez:
Since succession is not involved as regards the insurance is not involved as
regular the insurance contract, the provisions of the Rules of Court (Rule 131,
Sec. 3, [jj] [5]) on survivorship shall apply. Under Rules, Dr. Lopez, who was
70 years old, is presumed to have died ahead of Roberto, who is presumably
between the ages of 15 and 60. Having survived the insured, Roberto’s right as
MARRIAGE (FAMILY CODE) Romeo and Juliet, both Filipinos, got married. After a few years,
Juliet got word from her mother that she can go to the United
State whether the following marital unions are valid, void, or States for naturalization. Juliet promised she will be back the
voidable, and give the corresponding justifications for your moment she becomes an American. After some time, Romeo
(2017 Bar) learned from a friend that Juliet already became a US citizen
and even divorced him to marry a wealthy American
(a) Ador and Becky’s marriage when Ador was afflicted with AIDS
businessman. Romeo filed a petition before the Regional Trial
prior to marriage. (2%) (2017 BAR)
(a) The marriage is voidable because Ador was afflicted with a serious and
Court praying that an order be issued authorizing him to
incurable sexually-transmitted disease at the time of the marriage. For a marriage remarry pursuant to Article 26 of the Family Code. Decide the
to be annulled under Art. 45(6), the sexually-transmissible disease must be: 1) petition with reasons. (5%) (2016 BAR)
existing at the time of the marriage; 2) found to be serious and incurable; and If the time of Juliet’s acquisition of U.S. citizenship preceded the time when she
3) unknown to the other party. Since Ador was afflicted with AIDS, which is a obtained the divorce decree, then the divorce decree can be given effect in the
serious and incurable disease, and the condition existed at the time of the Philippines, and consequently, Romeo will be capacitated to remarry under
marriage, the marriage is voidable, provided that such illness was not known to Philippine law.
Becky. On the other hand, if Juliet obtained the divorce decree before she acquired U.S.
citizenship, then the foreign divorce decree cannot be recognized by Philippine
(b) Carlos’ marriage to Dina which took place after Dina had
courts.
poisoned her previous husband Edu in order to free herself from Article 26, paragraph 2 of the Family Code provides that where a marriage
any impediment in order to live with Carlos. (2%) (2017 BAR) between a Filipino citizen and a foreigner is validly celebrated and a divorce
(b) The marriage of Carlos to Dina is void for reasons of public policy. Article is thereafter validly obtained abroad by the alien spouse capacitating him or
38 (9) of the Family Code provides that marriage between parties where one, her to remarry, the Filipino spouse shall have capacity to remarry under
with the intention to marry the other, killed that other person’s spouse or his or Philippine law.
her own spouse is void from the beginning for reasons of public policy. In Republic v. Orbecido (472 SCRA 114 [2005])i the Supreme Court ruled that
(c) Eli and Fely’s marriage solemnized seven years after the Article 26, paragraph 2 should be interpreted to include cases involving
disappearance of Chona, Eli’s previous spouse, after the plane she parties who, at the time of the celebration of the marriage were Filipino
citizens, but later on, one of them becomes naturalized as a foreign citizen
had boarded crashed in the West Philippine Sea. (2%) (2017 BAR)
and obtains a divorce decree. The reckoning point is their citizenship not at the
(c) The marriage is void under Article 35 (4) in relation to Article 41 of the time of celebration of marriage but at the time the divorce decree is obtained
Family Code. The requisites of a valid marriage under Article 41 are as follows: abroad by the alien spouse capacitating him/her to remarry.
1) the prior spouse had been absent for four consecutive years, except when the
disappearance is in danger of death which only requires two years; 2) the
present spouse had a well-founded belief that the absent spouse was already Leo married Lina and they begot a son. After the birth of their
dead; and 3) the spouse present must institute a summary proceeding for child, Lina exhibited unusual behavior and started to neglect
declaration of presumptive death. her son; she frequently went out with her friends and gambled
Here, there is no showing that Eli instituted a summary proceeding for in casinos. Lina later had extra-marital affairs with several
declaration of presumptive death of his previous spouse and this cannot be men and eventually abandoned Leo and their son. Leo was able
presumed. Thus, the exception under Article 35 (4) is inapplicable and the
to talk to the psychiatrist of Lina who told him that Lina suffers
subsequent marriage is void.
from dementia praecox, a form of psychosis where the afflicted
(d) David who married Lina immediately the day after obtaining a
person is prone to commit homicidal attacks. Leo was once
judicial decree annulling his prior marriage to Elisa. (2%) (2017
stabbed by Lina but fortunately he only suffered minor
BAR)
injuries. Will a Petition for Declaration of Nullity of Marriage
(d) The marriage was valid as there were no facts showing that David and Elisa
have properties and children, which would render the marriage void under
filed with the court prosper? Explain. (5%) (2016 BAR)
NO, a Petition for Declaration of Nullity of Marriage under Article 36 of the
Article 53 of the Family Code in relation to Article 52. In addition, David and
Lina have no impediment to marry. Family Code will not prosper. Even if taken as true, the grounds alleged are not
sufficient to declare the marriage void under “psychological incapacity”. In
ALTERNATIVE
Santos v. CA (240 SCRA 20 [1995J), the Supreme Court explained that
psychological incapacity must be characterized by (a) gravity, (b) juridical
(d) If the spouses have properties and children, the marriage is void under Article
antecedence, and (c) incurability. The illness must be shown as downright
53 of the Family Code in relation to Article 52. For a marriage subsequent to a
incapacity or inability to perform one’s marital obligations, not a mere refusal,
judgment of annulment of a previous marriage to be valid
neglect, difficulty, or much less, ill will.
(1) the properties of the spouses must have been partitioned and distributed;
While Lina was not examined by a physician, the Supreme Court has ruled in
(2) the presumptive legitimes of children, if any, must have been delivered; and
Marcos v. Marcos (343 SCRA 755 12000]) that actual medical examination
(3) the aforementioned facts must have been recorded in the civil registry and
need not be resorted to where the totality of evidence presented is enough to
registries of property.
sustain a finding of psychological incapacity. However, in this case, the pieces
Here, the marriage was entered into the day after obtaining a judicial decree of
of evidence presented are not sufficient to conclude that indeed Lina is suffering
annulment and it would have been impossible for David to comply with the
from psychological incapacity existing already before the marriage, incurable
requirements in such a short time. Therefore, the marriage is void.
and serious enough to prevent her from performing her essential marital
(e) Marriage of Zoren and Carmina who did not secure a marriage obligations.
license prior to their wedding, but lived together as husband and ALTERNATIVE
wife for 10 years without any legal impediment to marry. (2%)
(2017 BAR) No, a Petition for Declaration of Nullity of Marriage under Article 36 of the
(e) If Zorena and Carmina lived together as husband and wife for 10 years prior Family Code will not prosper. However, a Petition for Annulment of Marriage
to their marriage, then the marriage is valid, despite the absence of the marriage under Article 45 of the Family Code may prosper, on the ground of unsound
license. An exception to the rule that a marriage shall be void if solemnized mind, assuming that Lina’s unsound mind existed at the time of the celebration
without a license under Article 35 (3) is that provided for under Article 34 of the of the marriage.
Family Code. When a man and a woman have lived together as husband and wife
for at least 5 years and without any legal impediment to marry each other,
they may celebrate the marriage without securing a marriage license.
Void marriages Kardo met Glenda as a young lieutenant and after a whirlwind
courtship, they were married. In the early part of his military
Brad and Angelina had a secret marriage before a pastor career, Kardo was assigned to different places all over the
whose office is located in Arroeeros Street, City of Manila. They country but Glenda refused to accompany him as she preferred
paid money to the pastor who took care of all the to live in her hometown. They did not live together until the
documentation. When Angelina wanted to go to the U.S., she 12th year of their marriage when Kardo had risen up the ranks
found out that there was no marriage license issued to them and was given his own command. They moved to living
before their marriage. Since their marriage was solemnized in quarters in Fort Gregorio. One day, while Kardo was away on
1995 after the effectivity of the Family Code, Angelina filed a official business, one of his military aides caught Glenda having
petition for judicial declaration of nullity on the strength of a sex with the corporal assigned as Kardo's driver. The aide
certification by the Civil Registrar of Manila that, after a immediately reported the matter to Kardo who rushed home
diligent and exhaustive search, the alleged marriage license to confront his wife. Glenda readily admitted the affair and
indicated in the marriage certificate does not appear in the Kardo sent her away in anger. Kardo would later come to know
records and cannot be found. the true extent of Glenda's unfaithfulness from his aides, his
[a] Decide the case and explain. (2.5%) household staff, and former neighbors who informed him that
[a] I will grant the petition for judicial declaration of nullity of Brad and Glenda has had intimate relations with various men
Angelina’s marriage on the ground that there is a lack of a marriage license. throughout their marriage whenever Kardo was away on
Article 3 of the Family Code provides that one of the formal requisites of
assignment. Kardo filed a petition for declaration of nullity of
marriage is a valid marriage license and Article 4 of the same Code states that
absence of any of the essential or formal requisites shall render the marriage void marriage under Article 36. Based on interviews from Kardo,
ah initio. In Abbas v. Abbas, (689 SCRA 646 12013/), the Supreme Court his aide, and the housekeeper, a psychologist testified that
declared the marriage as void ah initio because there is proof of lack of record of Glenda's habitual infidelity was due to her affliction with
marriage license. The certification by the Civil Registrar of Manila that, after a Histrionic Personality Disorder, an illness characterized by
diligent and exhaustive search, the alleged marriage license indicated in the excessive emotionalism and uncontrollable attention-seeking
marriage certificate does not appear in the records and cannot be found proves behavior rooted in Glenda's abandonment as a child by her
that the marriage of Brad and Angelina was solemnized without the
father. Kardo himself, his aide, and his housekeeper also
requisite marriage license and is therefore void ab initio. The absence of the
marriage license was certified to by the local civil registrar who is the official testified in court. The RTC granted the petition, relying on the
custodian of these documents and who is in the best position to certify as to liberality espoused by Te v. Te and Azcueta v. Republic.
the existence of these records. Also, there is a presumption of regularity in However, the OSG filed an appeal, arguing that sexual infidelity
the performance of official duty (Republic v. CA and Castro, 236 SCRA 257 was only a ground for legal separation and that the RTC failed
/1994/). to abide by the guidelines laid down in the Molina case. How
[b] In ease the marriage was solemnized in 1980 before the would you decide the appeal? (2015 BAR)
effectivity of the Family Code, is it required that a judicial petition I will resolve the appeal in favor of the Republic.
be tiled to declare the marriage null and void? Explain. (2.5%) In the case of Dedel v. Dedel (G.R. No. 151867, January 29, 2004), the Supreme
(2016 Bar Question) Court refused to declare the marriage of the parties void on the ground of sexual
infidelity of the wife Sharon. In the case mentioned, the wife committed
[b] No, it is not required that a judicial petition be filed to declare the marriage
infidelity with several men up to the extent of siring two illegitimate children
null and void when said marriage was solemnized before the effectivity of the
with a foreigner. The court, however, said that it was not shown that the sexual
Family Code. As stated in the cases of People v. Men- doza, 95 Phil. 845 (1954/
infidelity was a product of a disordered personality and that it was rooted in the
and People v. Aragon, 100 Phil. 1033 (1957/^ the old rule is that where a
history of the party alleged to be psychologically incapacitated. Also, the finding
marriage is illegal and void from its perfor- mance, no judicial is necessary to
of psychological incapacity cannot be based on the interviews conducted by the
establish its invalidity.
clinical psychologist on the husband or his witnesses and the person alleged to be
psychologically incapacitated must be personally examined to arrive at such
declaration. (Marcos v. Marcos, G.R. No. 136490, October 19, 2000; Agraviador
v. Agraviador, G.R. No. 170729, December 8, 2010).

A petition for declaration of nullity of a void marriage can only

be filed by either the husband or the wife. Do you agree?
Explain your answer. (2012 BAR)
YES, I agree. Under the rules promulgated by the Supreme Court, a direct action
for declaration of nullity may only be filed by any of the spouses.

Foreign divorce
Cipriano and Lady Miros married each other. Lady Miros then
left for the US and there, she obtained American citizenship.
Cipriano later learned all about this including the fact that
Lady Miros has divorced him in America and that she had
remarried there. He then filed a petition for authority to
remarry, invoking Par. 2, Art. 26 of the Family Code. Is Cipriano
capacitated to re-marry by virtue of the divorce decree
obtained by his Filipino spouse who was later naturalized as an
American citizen? Explain. (2012 BAR)
YES, he is capacitated to re-marry. While the second paragraph of Article 26 of
the Family Code is applicable only to a Filipino who married a foreigner at
the time of the marriage, the Supreme Court ruled in the case of Republic v.
Orbecido, GR. No. 154380, October 5, 2005, that the said provision equally
applies to a Filipino who married another Filipino, at the time of the
marriage, but who was already a foreigner when the divorce was obtained.
Psychological incapacity the marriage was merely voidable and Judy ratified it by freely cohabiting with
Baldo after the force and intimidation had ceased . (C) No, since the action
The petitioner filed a petition for declaration of nullity of prescribed 5 years from the date of the celebration of the marriage. (D) Yes,
marriage based allegedly on the psychological incapacity of the because the marriage was celebrated without Judy's consent freely given.
respondent, but the psychologist was not able to personally Conrad and Linda, both 20 years old, applied for a marriage license, making it
examine the respondent and the psychological report was appear that they were over 25. They married without their parents’ knowledge
based only on the narration of petitioner. Should the before an unsuspecting judge. After the couple has been in cohabitation for 6
years, Linda’s parents filed an action to annul the marriage on ground of lack of
annulment be granted? Explain. (2012 BAR)
parental consent. Will the case prosper? (2011 BAR)
NO. The annulment cannot be guaranteed solely on the basis of the
(A) No, since only the couple can question the validity of their marriage after
psychological report. For the report to prove the psychological incapacity of the
they became 21 of age; their cohabitation also convalidated the marriage. (B) No,
respondent, it is required that the psychologist should personally examine the
since Linda’s parents made no allegations that earnest efforts have been made to
respondent and the psychological report should be based on the psychologist’s
come to a compromise with Conrad and Linda and which efforts failed. (C) Yes,
independent assessment of the facts as to whether or not the respondent is
since the marriage is voidable, the couple being below 21 years of age when they
psychologically incapacitated.
married. (D) Yes, since Linda’s parents never gave their consent to the marriage.
Since, the psychologist did not personally examine the respondent, and his report
is based solely on the story of the petitioner who has an interest in the outcome of
the petition, the marriage cannot be annulled on the ground of respondent’s Miko and Dinah started to live together as husband and wife
psychological incapacity if the said report is the only evidence of respondent’s without the benefit of marriage in 1984. Ten (10) years after,
psychological incapacity. they separated. In 1996, they decided to live together again,
and in 1998, they got married. On February 17, 2001, Dinah
Psychological incapacity filed a complaint for declaration of nullity of her marriage with
Ariz and Paz were officemates at Perlas ng Silangan Bank Miko on the ground of psychological incapacity under Article
(PSB). They fell in love with each other and had a civil and 36 of the Family Code. The court rendered the following
church wedding. Meanwhile, Paz rapidly climbed the corporate decision:
ladder of PSB and eventually became its Vice President, while 1. “Declaring the marriage null and void;
Ariz remained one of its bank supervisors, although he was 2. Dissolving the regime of absolute community of property;
short of 12 units to finish his Masters of Business and
Administration (MBA) degree. Ariz became envious of the 3. Declaring that a decree of absolute nullity of marriage shall
success of his wife. He started to drink alcohol until he became only be issued after liquidation, partition and distribution of
a drunkard. He preferred to join his "barkadas"; became a the parties’ properties under Article 147 of the Family Code."
wifebeater; would hurt his children without any reason; and
Dinah filed a motion for partial reconsideration questioning
failed to contribute to the needs of the family. Despite
the portion of the decision on the issuance of a decree of nullity
rehabilitation and consultation with a psychiatrist, his ways
of marriage only after the liquidation, partition and
did not change. After 19 years of marriage, Paz, a devout
distribution of properties under Article 147 of the Code.
Catholic, decided to have their marriage annulled by the
church. Through the testimony of Paz and a psychiatrist, it was If you are the judge, how will you decide petitioner’s motion for
found that Ariz was a spoiled brat in his youth and was partial reconsideration? Why? (2014 BAR)
I will grant partial reconsideration. If the marriage is declared void under Art. 36,
sometimes involved in brawls. In his teens, he was once the provisions of the Family Code on liquidation, partition, and distribution of
referred to a psychiatrist for treatment due to his violent the properties on absolute community or conjugal partnership will not apply but
tendencies. In due time, the National Appellate Matrimonial rather Art. 147 or 148 depending on the presence or absence of a legal
Tribunal (NAMT) annulled the union of Ariz and Paz due to the impediment between them.
failure of Ariz to perform and fulfill his duties as a husband and In Diño v. Diño (G.R. No. 178044, January 19, 2011), the SC ruled that Art. 50
as a father to their children. The NAMT concluded that it is for of the FC and Section 19 of the Rules on Declaration of Nullity applies only to
the best interest of Paz, Ariz and their children to have the marriages which are declared void ab initio or annulled by final judgment under
Arts. 40 and 45 of the FC. In short, Art. 50 of the FC does not apply to marriages
marriage annulled. In view of the NAMT decision, Paz decided which are declared void ab initio under Art. 36 of the FC which should be
to file a Petition for Declaration of Nullity of Marriage of their declared void without waiting for the liquidation of the properties of the
civil wedding before the Regional Trial Court (RTC) of Makati parties.
City using the NAMT decision and the same evidence adduced
in the church annulment proceedings as basis. If you are the After undergoing sex reassignment in a foreign country, Jose,
judge, will you grant the petition? Explain. (2014 BAR) who is now using the name of "Josie," married his partner
If I were the judge, I will not grant the petition. While the decision of the church Ador. Is the marriage valid? (2014 BAR)
tribunal annulling the marriage of the parties may be persuasive, it is not a. Yes, the marriage is valid for as long as it is valid in the place where it is
binding upon the civil courts. celebrated following Article 17 of the Civil Code.
For psychological incapacity to be a ground for nullity, it must be shown that it b. Yes, the marriage is valid if all the essential and formal elements of marriage
was rooted in the history of the party alleged to be suffering from it, it must be under the Family Code are present.
grave and serious, and incurable such that it renders the person incapacitated to c. No, the marriage is not valid because one essential element of marriage is
perform the essential marital obligations due to causes psychological in absent.
nature. In the case presented, it appears that Ariz fulfilled his marital d. No, the marriage is not valid but is voidable because "Josie" concealed her real
obligations at the beginning and it was only after feeling envious about the identity.
success of Paz that he started exhibiting violent tendencies and refused to
comply with marital obligations. Psychological incapacity is not mere refusal
but outright incapacity to perform marital obligations which does not appear
to be present in the case of Ariz (Marcos v. Marcos, G.R. No. 136490, October
19, 2000).
Baldo, a rejected suitor, intimidated Judy into marrying him. While she wanted
to question the validity of their marriage two years after the intimidation ceased,
Judy decided in the meantime to freely cohabit with Baldo. After more than 5
years following their wedding, Judy wants to file a case for annulment of
marriage against Baldo on ground of lack of consent. Will her action prosper?
(2011 BAR) (A) Yes, the action for annulment is imprescriptible. (B) No, since
You are a Family Court judge and before you is a Petition for While engaged to be married, Arnold and Josephine agreed in a
the Declaration of Nullity of Marriage (under Article 36 of the public instrument to adopt out the economic regime of
Family Code) filed by Maria against Neil. Maria claims that Neil absolute community of property. Arnold acknowledged in the
is psychologically incapacitated to comply with the essential same instrument that Josephine’s daughter Mary, is his
obligations of marriage because Neil is a drunkard, a illegitimate child. But Josephine died before the marriage
womanizer, a gambler, and a mama's boy- traits that she never could take place. Does the marriage settlement have any
knew or saw when Neil was courting her. Although summoned, significance? (2011 BAR) (A) None, since the instrument
Neil did not answer Maria's petition and never appeared in containing the marriage settlement is essentially void for
court. To support her petition, Maria presented three containing an unrelated matter. (B) Yes, insofar as Arnold
witnesses- herself, Dr. Elsie Chan, and Ambrosia. Dr. Chan acknowledged Mary as his illegitimate child. (C) None, since
testified on the psychological report on Neil that she prepared. the marriage did not take place. (D) Yes, if they acquired
Since Neil never acknowledged nor responded to her invitation properties while living together as husband and wife.
for interviews, her report is solely based on her interviews Joseph, a 17-year old Filipino, married Jenny, a 21-year old
with Maria and the spouses' minor children. Dr. Chan American in Illinois, USA, where the marriage was valid. Their
concluded that Neil is suffering from Narcissistic Personality parents gave full consent to the marriage of their children.
Disorder, an ailment that she found to be already present since After three years, Joseph filed a petition in the USA to promptly
Neil's early adulthood and one that is grave and incurable. divorce Jenny and this was granted. When Joseph turned 25
Maria testified on the specific instances when she found Neil years, he returned to the Philippines and married Leonora.
drunk, with another woman, or squandering the family's What is the status of this second marriage? (2011 BAR) (A)
resources in a casino. Ambrosia, the spouses' current Void, because he did not cause the judicial issuance of
household help, corroborated Maria's testimony. On the basis declaration of the nullity of his first marriage to Jenny before
of the evidence presented, will you grant the petition? (1996, marrying Leonora. (B) Valid, because Joseph's marriage to
2006, 2012, 2013) Jenny is void, he being only 17 years of age when he married
NO. The petition should be denied. her. (C) Valid, because his marriage to Leonora has all the
The psychological incapacity under Article 36 of the Family Code must be
elements of a valid marriage. (D) Void, because Joseph is still
characterized by (a) gravity, (b) juridical antecedence, and (c) incurability. It is
not enough to prove that the parties failed to meet their responsibilities and duties considered married to Jenny since the Philippines does not
as married persons; it is essential that they must be shown to be incapable of recognize divorce. Josie, 18, married Dante, 25, without her
doing so, due to some psychological (not physical) illness (Republic v. CA and parents’ knowledge and consent, and lived with him. After a
Molina, G.R. No. 108763 February 13, 1997). In this case, the pieces of evidence year, Josie returned to her parents’ home, complained of the
presented are not sufficient to conclude that indeed Niel is suffering from a unbearable battering she was getting from Dante, and
psychological incapacity [Narcissistic Personality Disorder] existing already expressed a desire to have her marriage with him annulled.
before the marriage, incurable and serious enough to prevent Neil from
Who may bring the action? (2011 BAR) (A) Dante. (B) Her
performing his essential marital obligations. Dr. Chan’s report contains mere
conclusions. Being a drunkard, a womanizer, a gambler and a mama’s boy parents. (C) Josie herself. (D) The State.
merely shows Neil’s failure to perform his marital obligations. In a number of Page 23 of 199
cases, the Supreme Court did not find the existence of psychological incapacity Civil Law
in cases where the respondents showed habitual drunkenness (Republic v. X, a married man, cohabited with Y, an unmarried woman. Their relation bore
Melgar, G.R. No. 139676, March 31, 2006), blatant display of infidelity and them BB, a baby boy. Subsequently, after X became a widower, he married Y.
irresponsibility (Dedel v. CA, G.R. No. 151867, January 29, 2004), or being Was BB legitimated by that marriage? (2011 BAR) (A) Yes, since his parents are
hooked to gambling and drugs (Republic v. Tanyag-San Jose, G.R. No. 168328, now lawfully married. (B) Yes, since he is an innocent party and the marriage
February 28, 2007). rectified the wrong done him. (C) No, since once illegitimate, a child shall
always remain illegitimate. (D) No, since his parents were not qualified to marry
each other when he was conceived.
Lito was a commercial pilot who flew for Pacific-Micronesian Air. In 1998, he
was the co-pilot of the airline's Flight MA916 that mysteriously disappeared two
hours after take-off from Agana, Guam, presumably over the Pacific Ocean. No
trace of the plane and its 105 passengers and crew was ever found despite
diligent search; Lito himself was never heard of again. Lito left behind his wife,
Lita, and their two children.
In 2008, Lita met and and married Jaime. They now have a child of their own.
While on a tour with her former high school classmates in a remote province of
China in 2010, Lita was surprised to see Lito or somebody who looked exactly
like him, but she was sure it was Lito because of the extreme surprise that
registered in his face when he also saw her. Shocked, she immediately fled to her
hotel and post haste returned to the country the next day. Lita now comes to you
for legal advice. She asks you the following questions: (2013 BAR)
1) If Lito is alive, what is the status of his marriage to Lita? (1%)
(A) The marriage subsists because the marital bond has not been terminated by
death.
(B) The marriage was terminated when Lita married Jaime.
(C) The marriage subsists because Lita's marriage to Jaime is void.
(D) The marriage is terminated because Lito is presumed dead after his plane has
been missing for more than 4 years.
(E) The marriage can be formally declared terminated if Lito would not
resurface.

A – Since Lito is still alive the marital bond has not been severed
2) If Lito is alive, what is the status of Lita's marriage to Jaime? (1%)
(A) The marriage is valid because Lita's marriage to Lito was terminated upon
Lito's disappearance for more than seven years.
(B) The marriage is valid. After an absence of more than 10 years, Lito is already
presumed dead for all purposes.
Page 24 of 199 beneficiary was irrevocable. (C) No, X’s designation of Y is revoked by
Civil Law operation of law upon the annulment of their marriage based on Y’s fault. (D)
(C) The marriage is void. Lito's mere absence, however lengthy, is insufficient to Yes, since without judicial revocation, X’s designation of Y remains valid and
authorize Lita to contract a subsequent marriage. binding.
(D) The marriage is void. If Lito is indeed alive, his marriage to Lita was never In gratitude, the groom’s parents made a donation of a property in writing to the
dissolved and they can resume their marital relations at any time. bride’s parents shortly before their children’s wedding. The donation was
accepted. What is the nature of the donation? (2011 BAR) (A) It is an ordinary
C – Lito’s absence did not automatically grant Lita the right to remarry without donation since it was not given to the bride or groom. (B) It is donation propter
securing a declaration of presumptive death nuptias since it was given with the marriage in mind. (C) It is an indirect
Rene and Lily got married after a brief courtship. After one month, Lily donation propter nuptias since the bride would eventually inherit the property
discovered that while Rene presented himself as a macho man he was actually from her parents. (D) It is a remunatory donation.
gay. He would not go to bed with her. He kept obscene magazines of nude men X and Y, both Filipinos, were married and resided in Spain although they intend
and always sought the company of handsome boys. What legal remedy does Lily to return to the Philippines at some future time. They have not executed any
have? (2011 BAR) (A) She can file an action for annulment of marriage on marriage settlements. What law governs their property relations? (2011 BAR)
ground of fraud. (B) She can seek a declaration of nullity of the marriage based (A) They may choose between Spanish law and Philippine law. (B) Philippine
on Rene’s psychological incapacity. (C) She can go abroad and file for divorce in law since they are both Filipinos. (C) No regime of property relations will apply
a country that can grant it. (D) She has none since she had the opportunity to to them. (D) Spanish law since they live in Spain.
examine the goods and freely entered into the marriage. QR and TS who had a marriage license requested a newly appointed Judge in
Manuel came to Manila and married Marianne. Unknown to Marianne, Manuel Manila to marry them on the beach of Boracay. Since the Judge maintained
had been previously convicted in Palawan of theft and served time for it. After Boracay as his residence, he agreed. The sponsors were all public officials. What
Marianne learned of his previous conviction, she stopped living with him. Can is the status of the marriage. (2011 BAR) (A) Valid, since the improper venue is
Marianne seek the annulment of the marriage based on Manuel’s nondisclosure merely an irregularity; all the elements of a valid marriage are present. (B) Void,
of his previous crime? (2011 BAR) (A) No, since the assumption is that marriage because the couple did not get local permit for a beach wedding. (C) Voidable,
forgives all past wrongs. (B) Yes, since the non-disclosure of that crime is the because the Judge acted beyond his territorial jurisdiction and is administratively
equivalent of fraud, which is a ground for annulment. (C) No, in case of doubt, liable for the same. (D) Void, because the Judge did not solemnize the marriage
the law must be construed to preserve the institution of marriage. (D) No, since within the premises of his court.
Manuel already served the penalty for his crime. In 1989, Charice (Filipina) and Justine (American), were married in the
Arthur and Helen, both Filipinos, got married and had 2 children. Arthur later Philippines. In 1990, they separated and Justine went to Las Vegas where he
worked in Rome where he acquired Italian citizenship. He got a divorce from obtained a divorce in the same year. He then married another Filipina, Lea, in
Helen in Rome but, on returning to the Philippines, he realized his mistake, asked Canada on January 1, 1992. They had two (2) sons, James and John (who were
forgiveness of his wife, and resumed living with her. They had 2 more children. both born in 1992). In 1993, after failing to hear from Justine, Charice married
What is the status of their 4 children? (2011 BAR) (A) The children born before Bugoy (a Filipino), by whom
the divorce are legitimate but those born after it are not since Arthur got the Page 27 of 199
divorce when he had ceased to be a Filipino. (B) The divorce rendered Civil Law
illegitimate the children born before it since the marriage that begot them had she had a daughter, Regine. In 2009, Regine married James (son of Justine with
been nullified. (C) The children born before and after the divorce are all Lea) in California, where such marriage is valid. (2012 BAR) What is the current
legitimate since Philippine law does not recognize divorce. status of the marriage of Charice and Justine under Philippine laws? a) Valid b)
Page 25 of 199 Void c) Voidable d) Dissolved What is the status of the marriage between Justine
Civil Law and Lea under Philippine laws? a) Valid b) Void c) Voidable d) Unenforceable
(D) All the children are legitimate since they were born of the same father and What is the status of the marriage between Charice and Bugoy under Philippine
mother. laws? a) Valid b) Void c) Voidable d) Unenforceable What is the status of the
When can a missing person who left someone to administer his property be marriage between Regine and James under Philippine laws? a) Valid b) Void c)
declared an absentee by the court? When he has been missing for (2011 BAR) Voidable d) Unenforceable
(A) 2 years from the receipt of the last news about him. (B) 7 years from the Ricky and Princess were sweethearts. Princess became pregnant. Knowing that
receipt of the last news about him. (C) 10 years from the receipt of the last news Ricky is preparing for the examinations, Marforth, a lawyer and cousin of
about him. (D) 5 years from the receipt of the last news about him. Princess, threatened Ricky with the filing of a complaint for immorality in the
X and Y, although not suffering from any impediment, cohabited as husband and Supreme Court, thus preventing him from taking examinations unless he marries
wife without the benefit of marriage. Following the birth of their child, the Princess. As a consequence of the threat, Ricky married Princess. Can the
couple got married. A year after, however, the court annulled the marriage and marriage be annulled on the ground of intimidation under Article 45 of the
issued a decree of annulment. What is the present status of the child? (2011 Family Code? Choose the best answer. (2012 BAR) a) Yes, because without the
BAR) (A) Legitimated. (B) Illegitimate. (C) Natural child. (D) Legitimate. threat, Ricky would not have married Princess. b) Yes, because the threat to
X and Y agreed verbally before their marriage (a) on the paternity of the enforce the claim of Princess vitiates the consent of Ricky in contracting the
illegitimate child of Y and (b) on the economic regime that will govern X and marriage. c) No, because the threat made by Marforth is just and legal. d) No,
Y’s property relations. Is the verbal agreement valid? (2011 BAR) (A) No, because Marforth is not a party to the contract of marriage between Princess and
because a marriage settlement to be valid should be in writing. (B) Yes, since Ricky.
ante-nuptial agreements need not be in writing. (C) No, because a marriage Agay, a Filipino citizen and Topacio, an Australian citizen, got married in the
settlement cannot include an agreement on the paternity of an illegitimate child. consular office of the Philippines in Australia. According to the laws of
(D) Yes, since even if it is not a valid marriage settlement, it is a valid verbal Australia, a
contract. Page 28 of 199
Fidel, a Filipino with fair complexion, married Gloria. Before the marriage, Civil Law
Gloria confessed to Fidel that she was two-month pregnant with the child of a marriage solemnized by a consular official is valid, provided that such marriage
black African who had left the country for good. When the child was born, Fidel is celebrated in accordance with the laws of such consular official. Under
could not accept it being too black in complexion. What is the status of the child? Philippine law, what is the status of the marriage of Agay and Topacio? Choose
(2011 BAR) (A) Illegitimate, because Gloria confessed that the child is not the best answer. (2012 BAR) a) Void, because the consular official only has
Fidel’s. (B) Illegitimate, because by the color of its skin, the child could not authority to solemnize marriages between Filipinos. b) Valid, because according
possibly be that of Fidel. (C) Legitimate, because the child was born within a to the laws of Australia, such consular official has authority to celebrate the
valid marriage. (D) Legitimate, because Fidel agreed to treat the child as his own marriage. c) Voidable, because there is an irregularity in the authority of the
after Gloria told him who the father was. consular official to solemnize marriages. d) Valid, because such marriage is
X insured himself for P5 million, designating Y, his wife, as his sole beneficiary. recognized as valid in the place where it was celebrated.
The designation was irrevocable. A few years later, X had their marriage A marriage is void if: (2012 BAR) a) solemnized with a marriage license issued
annulled without complying with the required 10-day posting. b) solemnized by a minister
Page 26 of 199 whom the parties believe to have the authority. c) between parties both 23 years
Civil Law of age but without parental advice. d) none of the above
in court on the ground that Y had an existing prior marriage. X subsequently Which of the following marriages is void for reasons of public policy? (2012
died, Is Y entitled to the insurance benefits? (2011 BAR) (A) Yes, since the BAR) a) Between brothers and sisters, whether of the full or half blood. b)
insurance was not dependent on the marriage. (B) Yes, since her designation as
Between step-parents and step children. c) Between parents-in-law and children- I will advise Harry to:
in-law. d) b and c 1. dissolve and liquidate his property relations with Wilma; and
The following constitute the different circumstances or case of fraud which will 2. if he will remarry, file a petition for the recognition and enforcement of the
serves as ground for the annulment of a marriage, except? (2012 BAR) a) Non- foreign judgment of divorce (Rule 39, Rules of Court).
disclosure of the previous conviction by final judgment of the other party of a Harry tells you that he has fallen in love with another woman, Elizabeth, and
crime involving moral turpitude. b) Concealment of a sexually-transmissible wants to marry her because, after all, Wilma is already married to Joseph. Can
disease, regardless of its nature, existing at the time of the marriage. c) Harry legally marry Elizabeth? Explain. (2%) (2009 Bar Question)
Concealment of drug addiction, habitual alcoholism, homosexuality or
lesbianism existing at the time of marriage. d) Concealment by the wife or the Yes, he can validly marry Elizabeth, applying the doctrine laid down by the
husband of the fact of sexual relations prior to the marriage. Supreme Court in Republic v. Obrecido (427 SCRA 114 [2005]).
True or False. Under the second paragraph of Article 26 of the Family Code, for the Filipino
Under Article 26 of the Family Code, when a foreign spouse divorces his/her spouse to have capacity to remarry, the law expressly requires the spouse who
Filipino spouse, the latter may re-marry by proving only that the foreign spouse obtained the divorce to be a foreigner at the time of the marriage. Applying this
has obtained a divorce against her or him abroad. (1%) (2010 Bar Question) requirement to the case of Harry, it would seem that he is not given the capacity
to remarry. This is because Wilma was a Filipino at the time of her marriage to
False. Harry.
Page 29 of 199 Page 31 of 199
Civil Law Civil Law
In Garcia v. Recio, 366 SCRA 437 (2001), the SC held that for a Filipino spouse In Republic v. Obrecido, however, the Supreme Court ruled that a Filipino
to have capacity to contract a subsequent marriage, it must also be proven that spouse is given the capacity to remarry even though the spouse who obtained the
the foreign divorce obtained by the foreigner spouse gives such foreigner spouse divorce was a Filipino at the time of the marriage, if the latter was already a
capacity to remarry. foreigner when the divorce was obtained abroad. According to the Court, to rule
ALTERNATIVE otherwise will violate the equal protection clause of the Constitution.
Emmanuel and Margarita, American citizens and employees of the U.S. State
True. Department, got married in the African state of Kenya where sterility is a ground
Art. 26 (2) (FC), clearly provides that the decree of divorce obtained abroad by for annulment of marriage. Thereafter, the spouses were assigned to the U.S.
the foreigner spouse is sufficient to capacitate the Filipino spouse to remarry. Embassy in Manila. On the first year of the spouses’ tour of duty in the
In December 2000, Michael and Anna, after obtaining a valid marriage license, Philippines, Margarita filed an annulment case against Emmanuel before a
went to the Office of the Mayor of Urbano, Bulacan, to get married. The Mayor Philippine court on the ground of her husband’s sterility at the time of the
was not there, but the Mayor’s secretary asked Michael and Anna and their celebration of the marriage.
witnesses to fill up and sign the required marriage contract forms. The secretary xxx
then told them to wait, and went out to look for the Mayor who was attending a Assume Emmanuel and Margarita are both Filipinos. After their wedding in
wedding in a neighboring municipality. Kenya, they come back and take up residence in the Philippines. Can their
When the secretary caught up with the Mayor at the wedding reception, she marriage be annulled on the ground of Emmanuel’s sterility? Explain. (3%)
showed him the marriage contract forms and told him that the couple and their (2009 Bar Question)
witnesses were waiting in his office. The Mayor forthwith signed all the copies
of the marriage contract, gave them to the secretary who returned to the Mayor’s No, the marriage cannot be annulled under Philippine law. Sterility is not a
office.' She then gave copies of the marriage contract to the parties, and told ground for annulment of marriage under Article 45 of the Family Code.
Michael and Anna that they were already married. Thereafter, the couple lived ANOTHER
together as husband and wife, and had three sons. No, the marriage cannot be annulled in the Philippines.
Is the marriage of Michael and Anna valid, voidable, or void? Explain your The Philippine court shall have jurisdiction over the action to annul the marriage
answer. (3%) (2009 Bar Question) not only because the parties are residents of the Philippines but because they are
Filipino citizens. The Philippine court, however, shall apply the law of the place
The marriage is void because the formal requisite of marriage ceremony was where the marriage was celebrated in determining its formal validity (Article
absent (Art. 3, F.C. 209, Family Code). 26,FC; Article 17, NCC).
ALTERNATIVE Since the marriage was celebrated in Kenya in accordance with Kenyan law, the
formal validity of such marriage is governed by Kenyan law and any issue as to
The marriage is void because an essential requisite was absent: consent of the the formal validity of that marriage shall be determined by applying Kenyan law
parties freely given in the presence of the solemnizing officer (Art. 2, FC). and not Philippine law.
Harry married Wilma, a very wealthy woman. Barely five (5) years into the However, while Kenyan law governs the formal validity of the marriage, the
marriage, Wilma fell in love with Joseph. Thus, Wilma went to a small country legal capacity of the Filipino parties to the marriage is governed not by Kenyan
in Europe, became a naturalized citizen of that country, divorced j Harry, and law but by Philippine law (Article 15, NCC). Sterility of a party as a ground for
married Joseph. A year thereafter, Wilma and Joseph returned and established the annulment of marriage is not a matter of form but a matter of legal capacity.
permanent residence in the Philippines. Hence, the Philippine court must apply Philippine law in determining the status
Page 30 of 199 of the marriage on the ground of absence or defect in the legal capacity of the
Civil Law Filipino parties. Since sterility does not constitute absence or defect in the legal
Is the divorce obtained by Wilma from Harry-recognized in the Philippines? capacity of the parties under Philippine law, there is no
Explain your answer. (3%) (2009 Bar Question) Page 32 of 199
Civil Law
As to Wilma, the divorce obtained by her is recognized as valid in the ground to avoid or annul the marriage. Hence, the Philippine court has to deny
Philippines because she is now a foreigner. Philippine personal laws do not apply the petition.
to a foreigner. However, recognition of the divorce as regards Harry will depend When does a declaration of absence of a missing person take effect? (2011 BAR)
on the applicability to his case of the second paragraph of Article 26 of the (A) Immediately from the issuance of the declaration of absence. (B) 3 months
Family Code. If it is applicable, divorce is recognized as to him and, therefore, he after the publication of the declaration of absence. (C) 6 months after the
can remarry. However, if it is not applicable, divorce is not recognized as to him publication of the declaration of absence. (D) 15 days from the issuance of the
and, consequently, he cannot remarry. declaration of absence.
ANOTHER III. Legal Separation (Family Code)
Yes, the divorce obtained by Wilma is recognized as valid in the Philippines. At The wife filed a case of legal separation against her husband on the ground of
the time she got the divorce, she was already a foreign national having been sexual infidelity without previously exerting earnest efforts to come to a
naturalized as a citizen of that “small country in Europe.” Based on precedents compromise with him. The judge dismissed the case for having been filed
established by the Supreme Court (Bayot v. CA, 570SCRA 472 [2008]), divorce without complying with a condition precedent. Is the dismissal proper? (2011
obtained by a foreigner is recognized in the Philippines if validly obtained in' BAR) (A) No, efforts at a compromise will only deepen the wife’s anguish. (B)
accordance with his or her national law. No, since legal separation like validity of marriage is not subject to compromise
If Harry hires you as his lawyer, what legal recourse would you advise him to agreement for purposes of filing. (C) Yes, to avoid a family feud that is hurtful to
take? Why? (2%) (2009 Bar Question) everyone. (D) Yes, since the dispute could have been settled with the parties
agreeing to legal separation.
No decree of legal separation can be issued (2011 BAR) (A) unless the children’s Under this article, neither party can encumber or dispose by acts inter vivos of
welfare is attended to first. (B) without prior efforts at reconciliation shown to be his or her share in the property ac- quired during cohabitation and owned in
futile. (C) unless the court first directs mediation of the parties. (D) without prior common, without the consent of the other, until after the termination of their
investigation conducted by a public prosecutor. cohabitation, thus, Bernard may not validly dispose of the lot without the consent
Q: After they got married, Nikki discovered that Christian was having an affair of Dorothy as the lot was acquired through their work during their cohabi- tation.
with another woman. But Nikki decided to give it a try and lived with him for [NOTE: It is suggested that some credit be given to examinees who reason that
two (2) years. After two (2) years, Nikki filed an action for legal separation on Article 147 does not apply became under the facts given, Dorothy and Bernard
the ground of Christian’s sexual infidelity. Will the action prosper? Explain. were not living together as husband and wife].
(2012 BAR) [b] YES, if Dorothy was jobless and did not contribute money to the acquisition
SUGGESTED of the lot, her consent is still a prerequisite to the validity of the sale. Under the
Nikki’s action will not prosper on account at condonation. Although the action same article, a party
for legal separation has not yet prescribed, the prescriptive period being five Page 35 of 199
years, the decision of Nikki to live with Christian after discovering his affair Civil Law
amounts to condonation of such act. However, if such affair is still continuing, who did not participate in the acquisition by the other party of any property shall
Nikki's action would prosper because the action will surely be within (5) years be deemed to have contributed jointly in the acquisition thereof if the former’s
from the commission of the latest act of sexual infidelity. Every act or sexual efforts con- sisted in the care and maintenance of the family and the household.
liaison is a ground for legal separation. In this case, although the money used to buy the lot was solely from Bernard,
Page 33 of 199 Dorothy’s care and maintenance of the family and household are deemed
Civil Law contributions in the acquisition of the lot. Article 147, 2nd paragraph is
In legal separation, which is not correct? (2012 BAR) a) The aggrieved spouse applicable, as the lot is deemed owned in common by the common-law spouses
may file the action within five (5) years from the time of the occurrence of the in equal shares as the same was acquired dur- ing their cohabitation, without
cause. b) No trial shall be held without the 6-month cooling off period being prejudice to the rights of a buyer in good faith and for value.
observed. c) The spouses will be entitled to live separately upon the start of the Maria, wife of Pedro, withdrew P 5 Million from their conjugal funds. With this
trial. d) The prosecuting attorney has to conduct his own investigation. money, she constructed a building on a lot which she inherited from her father. Is
X and Y, Filipinos, got married in Los Angeles, USA, using a marriage license the building conjugal or paraphernal? Reasons. (2012 BAR)
issued by the Philippine consul in Los Angeles, acting as Civil Registrar. X and SUGGESTED
Y did not know that they were first cousins because their mothers, who were It depends. If the value of the building is more than the value of the land, the
sisters, were separated when they were quite young. Since X did not want to building is conjugal and the land becomes conjugal property under Art. 120 of
continue with the relation when he heard of it, he left Y, came to the Philippines the FC. This is a case of reverse accession, where the building is considered as
and married Z. Can X be held liable for bigamy? (2011 BAR) (A) No since X’s the principal and the land, the accessory. If, on the other hand, the value of the
marriage to Y is void ab initio or did not exist. (B) No since X acted in good land is more than the value of the building, then the ordinary rule of accession
faith, conscious that public policy did not approve of marriage between first applies where the land is the principal and the building, the accessory. In such
cousins. (C) Yes since he married Z without first securing a judicial declaration case, the land remains paraphernal property and the building becomes
of nullity of his marriage to Y. (D) Yes since his first marriage to Y in Los paraphernal properly. (Note: The rule on reverse accession is applicable only to
Angeles is valid. the regime of conjugal partnership of gains in both the Family Code and the New
IV. Rights and Obligations Between Husband and Wife (Family Code) Civil Code. The foregoing answer assumes that CPG is the regime of the
The husband’s acts of forcibly ejecting his wife without just cause from the property relations of the spouses.)
conjugal dwelling and refusing to take her back constitutes (2011 BAR) (A) Before Karen married Karl, she inherited P5 million from her deceased mother
desertion. (B) recrimination. (C) constructive abandonment. (D) de facto which amount she brought into the marriage. She later used part of the money to
separation. buy a new Mercedes Benz in her name, which Karen and her husband used as a
V. Property Relations of the Spouses (Family Code) family car. Is the car a conjugal or Karen’s exclusive property? (2011 BAR) (A)
Danny and Elsa were married in 2002. in 2012, Elsa left the conjugal home and It is conjugal property since the spouses use it as a family car. (B) It is Karen’s
her two minor children with Danny to live with her paramour. In 2015, Danny exclusive property since it is in her name. (C) It is conjugal property having been
sold without Elsa's consent a parcel of land registered in his name that he had bought during the marriage. (D) It is Karen’s exclusive property since she bought
purchased prior to the marriage. Danny used the proceeds of the sale to pay for it with her own money.
his children's tuition fees. Is the sale valid, void or voidable'? Explainyour Jambrich, an Austrian, fell in-love and lived together with Descallar and bought
answer. (3%) (2017 BAR) their houses and lots at Agro-Macro Subdivision. In the Contracts to Sell,
Page 34 of 199 Jambrich and Descallar were referred to as the buyers. When the Deed of
Civil Law Absolute Sale was presented for registration before the Register of Deeds, it was
The sale of the parcel of land is void. There is no indication in the facts that refused because Jambrich was an alien and could not acquire alienable lands of
Danny and Elsa executed a marriage settlement prior to their marriage. As the the public domain. After Jambrich and Descallar separated, Jambrich purchased
marriage was celebrated during the effectivity of the Family Code and absent a an engine and some accessories for his boat from Borromeo. To pay for his debt,
marriage settlement, the property regime between the spouses is the Absolute he sold his rights and interests in the Agro-Macro properties to Borromeo.
Community of Property (Article 75, FC). Under the Absolute Community of Borromeo discovered that titles to the three (3) lots have been transferred in the
Property regime, the parcel of land belongs to the community property as the name of Descallar. Who is the rightful owner of the properties? Explain. (2012
property he had brought into the marriage even if said property were registered in BAR)
the name of Danny (Article 91, FC). In addition, said property do not fall under Page 36 of 199
any of the exceptions under Article 92. Therefore, the sale of the property is Civil Law
void, because it was executed without the authority of the court or the written
consent of the other spouse (Article 96, 100, FC). It depends. On the assumption that the Family Code is the applicable law, the
Bernard and Dorothy lived together as common-law spouses although they are ownership of the properties depends on whether or not Jambrich and Descallar
both capacitated to marry. After one year of co-habitation, Dorothy went abroad are capacitated to marry each other during their cohabitation, and whether or not
to work in Dubai as a hair stylist and regularly sent money to Bernard. With the both have contributed funds for the acquisition of the properties.
money, Bernard bought a lot. For a good price, Bernard sold the lot. Dorothy If both of them were capacitated to marry each other, Art. 147 will apply to their
came to know about the acquisition and sale of the lot and filed a suit to nullify property relations and the properties in question are owned by them in equal
the sale because she did not give her consent to the sale. shares even though all the funds used in acquiring the properties came only from
[a] Will Dorothy's suit prosper? Decide with reasons. (2.5%) the salaries or wages or the income of Jambrich from his business or profession.
[b] Suppose Dorothy was jobless and did not contribute money to the acquisition In such a case, while Jambrich is disqualified to own any part of the properties,
of the lot and her efforts consisted mainly in the care and maintenance of the his subsequent transfer of all his interest therein to Borromeo, a Filipino, was
family and household, is her consent to the sale a prerequisite to its validity? valid as it removed the disqualification. In such case, the properties are owned by
Explain. (2.5%) (2016 BAR) Borromeo and Descallar in equal shares.
If, on the other hand, Jambrich and Descallar were not capacitated to marry each
[a] YES, Dorothy’s suit will prosper, unless the buyer is a buyer in good faith other, Article 153 governs their property relations. Under this regime, Jambrich
and for value. The rule of co-ownership governs the property relationship in a and Descallar are owners of the properties but only if both of them contributed in
union without marriage between a man and a woman who are capacitated to their acquisition. If all the funds used in acquiring the properties in question
marry each other. Article 147 of the Family Code is specifically applicable. came from Jambrich, the entire property is his even though he is disqualified
from owning it. His subsequent transfer to Borromeo, however, is valid as it where the party who acted in bad faith forfeits his share in the net profits. (B)
removed the disqualification. In such case, all of the properties are owned by Since the marriage has been declared void, the rule for liquidation of absolute
Borromeo. If, on the other hand, Descallar contributed to their acquisition, the community of property shall be followed. (C) The liquidation of a co-ownership
properties are co-owned by Descallar and Borromeo in proportion to the applies since the annulment brought their property relation under the chapter on
respective contributions of Descallar and Jambrich. (Note: The facts of the property regimes without marriage. (D) The law on liquidation of partnerships
problem are not exactly the same as in the case of Borromeo v. Descallar, G.R. applies.
No. 159310, February 24, 2009, hence, the difference in the resulting answer.) The husband assumed sole administration of the family’s mango plantation since
When does the regime of conjugal partnership of gains begin to exist? (2011 his wife worked abroad. Subsequently, without his wife’s knowledge, the
BAR) (A) At the moment the parties take and declare each other as husband and husband entered into an antichretic transaction with a company, giving it
wife before officiating officer. (B) At the time the spouses acquire properties possession and management of the plantation with power to harvest and sell the
through joint efforts. (C) On the date the future spouses executed their marriage fruits and to apply the proceeds to the payment of a loan he got. What is the
settlements because this is the starting point of their marital relationship. (D) On standing of the contract? (2011 BAR) (A) It is void in the absence of the wife’s
the date agreed upon by the future spouses in their marriage settlements since consent. (B) It is void absent an authorization from the court. (C) The transaction
their agreement is the law between them. is void and can neither be ratified by the wife nor authorized by the court. (D) It
Venecio and Ester lived as common-law spouses since both have been married to is considered a continuing offer by the parties, perfected only upon the wife’s
other persons from whom they had been separated in fact for several years. acceptance or the court’s authorization.
Hardworking and bright, each earned incomes from their respective professions May a spouse freely donate communal or conjugal property without the consent
and enterprises. What is the nature of their incomes? (2011 BAR) (A) Conjugal of the other? (2011 BAR) (A) Absolutely not, since the spouses co-own such
since they earned the same while living as husband and wife. (B) Separate since property. (B) Yes, for properties that the family may spare, regardless of value.
their property relations with their legal spouses are still subsisting. (C) Co- Page 39 of 199
ownership since they agreed to work for their mutual benefit. Civil Law
Page 37 of 199 (C) Yes, provided the donation is moderate and intended for charity or family
Civil Law rejoicing. (D) Yes, in a donation mortis causa that the donor may still revoke in
(D) Communal since they earned the same as common-law spouses. his lifetime.
Can common-law spouses donate properties of substantial value to one another? What happens to the property regimes that were subsisting under the New Civil
(2011 BAR) (A) No, they are only allowed to give moderate gifts to each other Code when the Family Code took effect? (2011 BAR) (A) The original property
during family rejoicing. (B) No, they cannot give anything of value to each other regimes are immutable and remain effective. (B) Those enjoying specific
to prevent placing their legitimate relatives at a disadvantage. (C) Yes, unlike the regimes under the New Civil Code may adopt the regime of absolute community
case of legally married spouses, such donations are not prohibited. (D) Yes, as of property under the Family Code. (C) Those that married under the New Civil
long as they leave sufficient property for themselves and for their dependents. Code but did not choose any of its regimes shall now be governed by the regime
Josie owned a lot worth P5 million prior to her marriage to Rey. Subsequently, of absolute community of property. (D) They are superseded by the Family Code
their conjugal partnership spent P3 million for the construction of a house on the which has retroactive effect. In the absence of contrary stipulation in a marriage
lot. The construction resulted in an increase in the value of the house and lot to settlement, property relations of Filipino spouses shall be governed by --- (2012
P9 million. Who owns the house and the lot? (2011 BAR) (A) Josie and the BAR) a) Philippines laws b) Law of the place where the spouses reside c) Law of
conjugal partnership of gains will own both on a 50-50 basis. (B) Josie will own the place where the properties are situated d) Law of the place where they were
both since the value of the house and the increase in the property’s value is less married. Audrey, single, bought a parcel of land in Malolos City from Franco for
than her lot’s value; but she is to reimburse conjugal partnership expenses. (C) P 1Million. A contract was executed between them which already vested upon
Josie still owns the lot, it being her exclusive property, but the house belongs to Audrey full ownership of the property, although payable in monthly installments
the conjugal partnership. (D) The house and lot shall both belong to the conjugal for a period of four (4) years. One (1) year after the execution of the contract,
partnership, with Josie entitled to reimbursement for the value of the lot. Audrey got married to Arnel. They executed a marriage settlement whereby they
Marco and Gina were married in 1989. Ten years later, or in 1999, Gina left agreed that their properties shall be governed by the regime of conjugal
Marco and lived with another man, leaving their two children of school age with partnership of gains. Thereafter, subsequent installments were paid from the
Marco. When Marco needed money for their children's education he sold a parcel conjugal partnership funds. Is the land conjugal or paraphernal? (2012 BAR) a)
of land registered in his name, without Gina's consent, which he purchased The land is conjugal because the installments were paid from the conjugal
before his marriage. Is the sale by Marco valid, void or voidable? Explain with partnership funds. b) The land is paraphernal because ownership thereof was
legal basis. (2015 BAR) acquired before the marriage. c) The land is both conjugal and paraphernal funds
of installments were paid from both the personal funds of Audrey and the
The sale made by Marco is considered void. The parties were married in 1989 conjugal partnership funds. d) The land is paraphernal because it was Audrey
and no mention was made whether they executed a marriage settlement. In the who purchased the same. Separation of property between spouses during the
absence of a marriage settlement, the parties shall be governed by absolute marriage may take place only: (2012 BAR) a) by agreement of the spouses. b) If
community of property whereby all the properties owned by the spouses at the one of the spouses has given ground for legal separation. c) Upon order of the
time of the celebration of the marriage as well as whatever they may acquire court. d) If one spouse has abandoned the other.
during the marriage shall form part of the absolute community. In ACP, neither Page 40 of 199
spouse can sell or encumber property belonging to the ACP without the consent Civil Law
of the other. Any sale or encumbrance made by one spouse without the consent A husband by chance discovered hidden treasure on the paraphernal property of
of the other shall be void although it is considered as a continuing offer on the his wife. Who owns the discovered treasure? (2012 BAR) a) The half pertaining
part of the consenting spouse upon authority of the court or written consent of the to the husband (finder) belongs to the conjugal partnership. b) The half
other spouse (Art. 96, FC). pertaining to the wife (as owner) belongs to the conjugal partnership. c) One half
Page 38 of 199 shall belong to the husband as finder and the other half shall belong to the wife as
Civil Law owner of the property. d) a and b Which of the following is not a requisite for a
Solomon sold his coconut plantation to Aragon, Inc. for P100 million, payable in valid donation propter nuptias? (2012 BAR) a) The donation must be made
installments of P10 million per month with 6% interest per annum. Solomon before the celebration of the marriage. b) The donation shall be automatically
married Lorna after 5 months and they chose conjugal partnership of gains to revoked in case of non-celebration of the marriage. c) The donation must be
govern their property relations. When they married, Aragon had an unpaid made in consideration of the marriage. d) The donation must be made in favor of
balance of P50 million plus interest in Solomon’s favor. To whom will Aragon’s one or both of the future spouses.
monthly payments go after the marriage? (2011 BAR) (A) The principal shall go G filed on July 8, 2000 a petition for declaration of nullity of her marriage to B.
to the conjugal partnership but the interests to Solomon. (B) Both principal and During the pendency of the case, the couple entered into a compromise
interests shall go to Solomon since they are his exclusive properties. (C) Both agreement to dissolve their absolute community of property. B ceded his right to
principal and interests shall go to the conjugal partnership since these become their house and lot and all his shares in two business firms to G and their two
due after the marriage. (D) The principal shall go to Solomon but the interests to children, aged 18 and 19.
the conjugal partnership. B also opened a bank account in the amount of P3 million in the name of the two
When A and B married, they chose conjugal partnership of gains to govern their children to answer for their educational expenses until they finish their college
property relations. After 3 years, B succeeded in getting her marriage to A degrees.
annulled on ground of the latter’s psychological incapacity. What liquidation For her part, G undertook to shoulder the day-to-day living expenses and upkeep
procedure will they follow in disposing of their assets? (2011 BAR) (A) They of the children. The Court approved the spouses’ agreement on September 8,
will follow the rule governing the liquidation of a conjugal partnership of gains 2000.
a. Suppose the business firms suffered reverses, rendering G unable to support If G and B had married on July 3, 1987 and their marriage was dissolved in 2007,
herself and the children. Can G still ask for support pendente lite from B? who owns the properties? Explain. (5%) (2010 Bar Question)
Explain. (3%) (2010 Bar Question)
The answer is the same as in letter A. Since the parties to the marriage which was
Yes, G can still ask for support from B because during the pendency of the later declared void ab initio were capacitated to marry each other, the applicable
action, the marriage between them is considered still subsisting (Article 68, law under the New Civil Code was Article 144. This Article is substantially the
Family Code). Being considered still married to each other, B and G still have same as Article 147 of the Family Code. Hence, the determination of ownership
the obligation to support each other. The compromise agreement cannot operate will remain the same as in question A. And even assuming that the two
to waive future support when needed (Article 2035, Civil Code). provisions are not the same, Article 147 of the Family Code is still the law that
After the compromise agreement was approved by the court and the properties of will govern the property relations of B and G because under Article 256, the
the marriage were distributed, there remained no more common properties of B Family Code has retroactive effect insofar as it does not prejudice or impair
and G. While Article 198 of the Family Code appears ' to limit the source of vested or acquired rights under the New Civil Code or other laws. Applying
support to the common properties of the said marriage in case of the pendency of Article 147 retroactively to the case of G and B will not impair any vested right.
an action to declare the nullity of marriage, Article 94 and Article 121 indicate Until the declaration of nullity of the marriage under the Family Code, B and G
otherwise. Under the said Articles, the have not as yet acquired any vested right over the properties acquired during
Page 41 of 199 their cohabitation.
Civil Law In 1997, B and G started living together without the benefit of marriage. The
spouses remain personally and solidarily liable with their separate properties for relationship produced one offspring, Venus. The couple acquired a residential lot
support even though, for whatever reason, there are no more community or in Paranaque. After four (4) years or in 2001, G having completed her 4- year
partnership properties left. college degree as a fulltime student, she and B contracted marriage without a
The judgment based on the compromise dissolving the property relations of B license.
and G does not bar G from asking support pendente lite. The dissolution of the Page 43 of 199
property relations of the spouses did not terminate the obligation between them Civil Law
to support each other. The declaration of the nullity of their marriage is what The marriage of B and G was, two years later, declared null and void due to the
terminates the right of G to be supported by B as his spouse. absence of a marriage license.
G and B were married on July 3, 1989. On March 4, 2001, the marriage, which If you were the judge who declared the nullity of the marriage, to whom would
bore no offspring, was declared void ab initio under Article 36 of the Family you award the lot? Explain briefly. (3%) (2010 Bar Question)
Code. At the time of the dissolution of the marriage, the couple possessed the
following properties: Since the marriage was null and void, no Absolute Community or Conjugal
1. a house and lot acquired by B on August 3, 1988, one third (1/3) of the Partnership was established between B and G. Their properties are governed by
purchase price (representing down payment) of which he paid; one third (1/3) the “special co-ownership” provision of Article 147 of the Family Code because
was paid by G on February 14, 1990 out of a cash gift given to her by her parents both B and G were capacitated to marry each other. The said Article provides
on her graduation on April 6, 1989; and the balance was paid out of the spouses’ that when a man and a woman who are capacitated to marry each other, live
joint income; and exclusively with each other as husband and wife without the benefit of marriage,
2. an apartment unit donated to B by an uncle on June 19, 1987. or under a void marriage: (1) their wages and salaries shall be owned by them in
Who owns the foregoing properties? Explain. (5%) (2010 Bar Question) equal shares; and (2) property acquired by both of them through their work or
industry shall be governed by the rules on co-ownership. In co-ownership, the
Since the marriage was declared void ab initio in 2001, no Absolute Community parties are co-owners if they contributed something of value in the acquisition of
or Conjugal Partnership was ever established between B and G. Their property the property. Their share is in proportion to their respective contributions. In an
relation is governed by a “special co-ownership” under Article 147 of the Family ordinary co- ownership the care and maintenance of the family is not recognized
Code because they were capacitated to marry each other. Under that Article 147, as a valuable contribution for the acquisition of a property. In the Article 147
wages and salaries of the “former spouses” earned during their cohabitation shall “special co-ownerships, however, care and maintenance is recognized as a
be owned by them in equal shares while properties acquired thru their work or valuable contribution which will entitle the contributor to half of the property
industry shall be owned by them in proportion to their respective contributions. acquired.
Care and maintenance of the family is recognized as a valuable contribution. In Having been acquired during their cohabitation, the residential lot is presumed
the absence of proof as to the value of their respective contributions, they shall acquired through their joint work and industry under Article 147, hence, B and G
share equally. are co-owners of the said property in equal shares.
If ownership over the house and lot was acquired by B on August 3,1988 at the Article 147 also provides that when a party to the void marriage was in bad faith,
time he bought it on installment before he got married, he shall remain owner of he forfeits his share in the co-ownership in favor of the common children or
the house and lot but he must reimburse G for all the amounts she advanced to descendants. In default of children or descendants, the forfeited share shall
pay the purchase price and for her one-half share in the last payment from their belong to the innocent party. In the foregoing problem, there is no showing that
joint income. In such case, the house and lot were not acquired during their one party was in bad faith. Hence, both shall be presumed in good faith and no
cohabitation, hence, are not co-owned by B and G. forfeiture shall take place.
But if the ownership of the house and lot was acquired during the cohabitation, In December 2000, Michael and Anna, after obtaining a valid marriage license,
the house and lot will be owned as follows: went to the Office of the Mayor of Urbano, Bulacan, to get married. The Mayor
Page 42 of 199 was not there, but the Mayor’s secretary asked Michael and Anna and their
Civil Law witnesses to fill up and sign the required marriage contract forms. The secretary
a. 1/3 of the house and lot is owned by B. He is an undivided co-owner to that then told them to wait, and went out to look for the Mayor who was attending a
extent for his contribution in its acquisition in the form of the down payment he wedding in a neighboring municipality.
made before the celebration of the marriage. The money he used to pay the down When the secretary caught up with the Mayor at the wedding reception, she
payment was not earned during the cohabitation, hence, it is his exclusive showed him the marriage contract forms and told him that the couple and their
property. witnesses were waiting in his office. The Mayor forthwith signed all the copies
b. 1 / 3 of the house and lot is owned by G. She is an undivided co-owner to the of the marriage contract, gave them to the secretary who returned to the Mayor’s
extent for her contribution in its acquisition when she paid 1/ 3 of the purchase office.' She then gave copies of the marriage contract to the parties, and told
price using the gift from her parents. Although the gift was acquired by G during Michael and Anna that
her cohabitation with B, it is her exclusive property. It did not consist of wage or Page 44 of 199
salary or fruit of her work or industry Civil Law
c. 1/3 of the house is co-owned by B and G because the payment came from their they were already married. Thereafter, the couple lived together as husband and
co-owned funds, i.e., their joint income during their cohabitation which is shared wife, and had three sons.
by them equally in the absence of any proof to the contrary. xxx
After summing up their respective shares, B and G are undivided co-owners of What property regime governs the properties acquired by the couple? Explain.
the house and lot in equal shares. (2%) (2009 Bar Question)
As to the apartment, it is owned exclusively by B because he acquired it before
their cohabitation. Even if he acquired it during their cohabitation it will still be The marriage being void, the property relationship that governed their union is
his exclusive property because it did not come from his wage or salary, or from special co-ownership under Article 147 of the Family Code. This is on the
his work or industry. It was acquired gratuitously from his uncle. assumption that there was no impediment for them to validly marry each other.
TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the child may use the surname of his father when his filiation is established in any of
statement is false. Explain your answer in not more than two (2) sentences. (5%) the following instances, except: (2012 BAR) a) Filiation has been recognized by
xxx the father through the record of birth appearing in the civil register b) Admission
If there is no marriage settlement, the salary of a “spouse” in an adulterous of filiation by the father in a public document. c) Private handwritten instrument
marriage belongs to the conjugal partnership of gains. (2009 Bar Question) is made by the father acknowledging his filiation. d) Affidavit by the mother
stating the name of his true father.
False. In an adulterous relationship, the salary of a married partner belongs to the Spouses B and G begot two offsprings. Albeit they had serious personality
absolute community, or conjugal partnership, of such married partner with his or differences, the spouses continued to live under one roof. B begot a son by
her lawful spouse. Under Article 148 of the Family Code, the property relations another woman. G also begot a daughter by another man.
between married partner and his/ her paramour is governed by ordinary co- b. If G gives the surname of B to her daughter by another man, what can B do to
ownership where the partners become co-owners only when they contributed to protect their legitimate children’s interests? Explain. (5%) (2010 Bar Question)
the acquisition of the property. The paramour is deemed to have not contributed
in the earning of the salary of the married partner. B can impugn the status of G’s daughter by another man as his legitimate
VI. The Family daughter on the ground that for biological reason he could not have been the
Spouses A and B leased a piece of land belonging to B's parents for 25 years. father of the child, a fact that may be proven by the DNA test. Having been born
The spouses built their house on it worth P300,000.00. Subsequently, in a case during the marriage between B and G, G’s daughter by another man is presumed
that C filed against A and B, the court found the latter liable to C for as the child of B under Article 164 of the Family Code. In the same action to
P200,000.00. When the sheriff was attaching their house for the satisfaction of impugn, B can pray for the correction of the status of the said daughter in her
the judgment, A and B claimed that it was exempt from execution, being a family record of birth.
home. Is this claim correct? (2011 BAR) (A) Yes, because while B’s parents own If B acquiesces to the use of his surname by G’s daughter by another man, what
the land, they agreed to have their daughter build her family home on it. (B) No, is/are the consequence/s? Explain. (5%) (2010 Bar Question)
because there is no judicial declaration that it is a family home. (C) No, since the
land does not belong to A and B, it cannot qualify as a family home. (D) Yes, Page 47 of 199
because the A and B’s family actually lives in that house. Civil Law
VII. Paternity and Filiation (Family Code) If B acquiesces and does not file the action to impugn the legitimacy of the child
Page 45 of 199 within the prescriptive period for doing so in Article 170 of the Family Code, G’s
Civil Law daughter by another man shall be conclusively presumed as the legitimate
Julie had a relationship with a married man who had legitimate children. A son daughter of B by G.
was born out of that illicit relationship in 1981. Although the putative father did Gigolo entered into an agreement with Majorette for her to carry in her womb his
not recognize the child in his certificate of birth, he nevertheless provided the baby via in vitro fertilization. Gigolo undertook to underwrite Majorette’s pre-
child with all the support he needed and spent time regularly with the child and natal expenses as well as those attendant to her delivery. Gigolo would thereafter
his mother. When the man died in 2000, the child was already 18 years old so he pay Majorette P2 million and, in return, she would give custody of the baby to
filed a petition to be recognized as an illegitimate child of the putative father and him.
sought to be given a share in his putative father's estate. The legitimate family After Majorette gives birth and delivers the baby to Gigolo following her receipt
opposed, saying that under the Family Code his action cannot prosper because he of P2 million, she engages your services as her lawyer to regain custody of the
did not bring the action for recognition during the lifetime of his putative father. baby.
(2015 BAR) xxx
a. If you were the judge in this case, would how you rule? D. Is the child entitled to support and inheritance from Gigolo? Explain. (2.5%)
(2010 Bar Question)
If I were the judge, I will not allow the action for recognition filed after the death FIRST
of the putative father. Under the Family Code, an illegitimate child who has not If Gigolo voluntarily recognized the child as his illegitimate child in accordance
been recognized by the father in the record of birth, or in a private handwritten with Article 175 in relation to Article 172 of the Family Code, the child is
instrument, or in a public document and may prove his filiation based on open entitled to support and inheritance from Gigolo.
and continuous possession of the status of an illegitimate child but pursuant to SECOND
Article 175, he or she must file the action for recognition during the lifetime of Yes, because Gigolo is the natural and biological parent of the baby.
the putative father. The provision of Article 285 of the Civil Code allowing the In 1997, B and G started living together without the benefit of marriage. The
child to file the action for recognition even after the death of the father will not relationship produced one offspring, Venus. The couple acquired a residential lot
apply because in the case presented, the child was no longer a minor at the time in Paranaque. After four (4) years or in 2001, G having completed her 4- year
of death of the putative father. college degree as a fulltime student, she and B contracted marriage without a
b. Wishing to keep the peace, the child during the pendency of the case decides license.
to compromise with his putative father's family by abandoning his petition in The marriage of B and G was, two years later, declared null and void due to the
exchange for what he would have received as inheritance if he were recognized absence of a marriage license.
as an illegitimate child. As the judge, would you approve such a compromise? xxx
Is Venus legitimate, illegitimate, or legitimated? Explain briefly. (3%) (2010 Bar
NO, I will not approve the compromise agreement because filiation is a matter to Question)
be decided by law. It is not for the parties to stipulate whether a person is a
legitimate or illegitimate child of another (De Jesus v. Estate of Dizon, G.R. No. Venus is illegitimate. She was conceived and born outside a valid marriage.
142877, October 2, 2001). In all cases of illegitimate children, their filiation must Thus, she is considered illegitimate (.Article 165, Family Code). While Venus
be duly proved (Art. 887, NCC). was legitimated by the subsequent marriage of her parents, such legitimation was
A left B, his wife, in the Philippines to work in Egypt but died in that country rendered ineffective when the said marriage was later on declared null and void
after a year’s continuous stay. Two months after A’s death, B gave birth to a due to absence of a marriage license.
child, claiming it is A’s child. Who can assail the legitimacy of the child? (2011 Page 48 of 199
BAR) (A) A’s other heirs apart from B. (B) The State which has interest in the Civil Law
welfare of overseas contract workers. (C) Any one who is outraged by B’s claim. Under Article 178 of the Family Code, “legitimation shall take place by a
(D) No one since A died. subsequent valid marriage between parents. The annulment of a voidable
Page 46 of 199 marriage shall not affect the legitimation.”
Civil Law The inclusion of the underscored portion in the Article necessarily implies that
The husband may impugn the legitimacy of his child but not on the ground that: the Article’s application is limited to voidable marriages. It follows that when the
(2012 BAR) a) the wife is suspected of infidelity. b) the husband had a serious subsequent marriage is null and void, the legitimation must also be null and void.
illness that prevented him from engaging in sexual intercourse. c) they were In the present problem, the marriage between B and G was not voidable but void.
living apart. d) he is physically incapable of sexual intercourse. Who are Hence, Venus has remained an illegitimate child.
illegitimate children? (2012 BAR) a) Children conceived or born outside a valid TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the
marriage. b) Children born under a valid marriage, which was later declared void statement is false. Explain your answer in not more than two (2) sentences. (5%)
because of the psychological incapacity of either or both of the spouses. c) xxx
Children conceived and born outside a valid marriage. d) Children born under a [e] A dead child can be legitimated. (2009 Bar Question)
valid marriage, but the parents later obtained a legal separation. An illegitimate
TRUE. To be legitimated, the law does not require a child to be alive at the time her mother’s middle name and surname; and that he is now a widower and
of the marriage of his/her parents (Article 177, FC). Furthermore, Art. 181 of the qualified to be her adopting parent. He prayed that Stephanie’s middle name be
Family Code which states that “[Th]e legitimation of children who died before changed from "Astorga" to "Garcia," which is her mother’s surname and that her
the celebration of marriage will benefit their descendants,” does not preclude surname "Garcia" be changed to "Catindig," which is his surname. This the trial
instances where such legitimation will benefit no one but the child’s ascendants, court denied. Was the trial court correct in denying Hororato’s request for
or other relatives. Stephanie’s use of her mother’s surname as her middle name? Explain. (1996,
In December 2000, Michael and Anna, after obtaining a valid marriage license, 2012)
went to the Office of the Mayor of Urbano, Bulacan, to get married. The Mayor
was not there, but the Mayor’s secretary asked Michael and Anna and their NO, the trial court was not correct. There is no law prohibiting an illegitimate
witnesses to fill up and sign the required marriage contract forms. The secretary child adopted by his natural father to use as middle name his mother's surname.
then told them to wait, and went out to look for the Mayor who was attending a The law is silent as to what middle name an adoptee may use. In the case of In
wedding in a neighboring municipality. re: Adoption of Stephanie Nathy Astorga Garcia (G.R. No, 148311, March 31,
When the secretary caught up with the Mayor at the wedding reception, she 2005), the Supreme Court ruled that the adopted child may use the surname of
showed him the marriage contract forms and told him that the couple and their the natural mother as his middle name because there is no prohibition in the law
witnesses were waiting in his office. The Mayor forthwith signed all the copies against it. Moreover, it will also be for the benefit of the adopted child who shall
of the marriage contract, gave them to the secretary who returned to the Mayor’s preserve his lineage on his mother’s side and reinforce his right to inherit from
office.' She then gave copies of the marriage contract to the parties, and told his mother and her family. Lastly, it will make the adopted child conform with
Michael and Anna that they were already married. Thereafter, the couple lived the time-honored Filipino tradition of carrying the mother’s surname as the
together as husband and wife, and had three sons. person’s middle name.
xxx Spouses Primo and Monina Lim, childless, were entrusted with the custody of
[b] What is the status of the three children of Michael and Anna? Explain your two (2) minor children, the parents of whom were unknown. Eager of having
answer. (2%) (2009 Bar Question) children of their own, the spouses made it appear that they were the children’s
parents by naming them Michelle P. Lim and Michael Jude Lim. Subsequently,
Page 49 of 199 Monina married Angel Olario after Primo’s death. She decided to adopt the
Civil Law children by availing the amnesty given under R.A. 8552 to those individuals who
The children are illegitimate, having been born outside a valid marriage. simulated the birth of a child. She filed separate petitions for the adoption of
Four children, namely: Alberto, Baldomero, Caridad, and Dioscoro, were born to Michelle, then 25 years old and Michael, 18. Both Michelle and
the spouses Conrado and Clarita de la Costa. The children’s birth certificates Page 51 of 199
were duly signed by Conrado, showing them to be the couple’s legitimate Civil Law
children. Michael gave consent to the adoption. The trial court dismissed the petition and
Later, one Edilberto de la Cruz executed a notarial document acknowledging ruled that Monina should have filed the petition jointly with her new husband.
Alberto and Baldomero as his illegitimate children with Clarita. Edilberto died Monina, in a Motion for Reconsideration argues that mere consent of her
leaving substantial properties. In the settlement of his estate, Alberto and husband would suffice and that joint adoption is not needed, for the adoptees are
Baldomero intervened claiming shares as the deceased’s illegitimate children. already emancipated. Is the trial court correct in dismissing the petitions for
The legitimate family of Edilberto opposed the claim. adoption? Explain. (2012 BAR)
Are Alberto and Baldomero entitled to share in the estate of Edilberto? Explain.
(4%) (2009 Bar Question) YES, the trial court was correct. At the time the positions for adoptions were
filed, petitioner had already remarried. Under the law, husband and wife shall
No, Alberto and Baldomero are not entitled to share in Edilberto’s estate. They adopt jointly, except in cases enumerated in the law. The adoption cases of
are not related at all to Edilberto. They were born during the marriage of Michelle and James do not fall in any of the exceptions provided in the law
Conrado and Clarita, hence, are considered legitimate children of the said where a spouse is permitted to adopt alone. Hence, Monina should adopt jointly
spouses. This status is conferred on them at birth by law. with her husband Angel (Adoption of Michelle P. Lim, G.R. Nos. 168992-93,
Under Philippine law, a person cannot have more than one natural filiation. The May 21, 2009).
legitimate filiation of a person can be changed only if the legitimate father will Spouses Rex and Lea bore two children now aged 14 and 8. During the
successfully impugn such status. subsistence of their marriage, Rex begot a child by another woman. He is now 10
In the problem, therefore, the filiation of Alberto and Baldomero as the years of age.
legitimate children of Conrado cannot be changed by their recognition by On Lea’s discovery of Rex’s fathering a child by another woman, she filed a
Edilberto as his illegitimate children. Before they can be conferred the status of petition for legal separation which was granted.
Edilberto’s illegitimate children, Conrado must first impugn their legitimacy. Rex now wants to adopt his illegitimate child.
Since Conrado has not initiated any action to impugn their legitimacy, they Whose consent is needed for Rex’s adoption of his illegitimate child? (2.5%)
continue to be the legitimate children of Conrado. They cannot be the illegitimate (2010 Bar Question)
children of Edilberto at the same time. Not being the illegitimate children of
Edilberto, they have no right to inherit from him. The consent of the 14-year-old legitimate child, of the 10-year-old illegitimate
VIII. Adoption child, and of the biological mother of the illegitimate child are needed for the
A. Domestic Adoption Act of 1998 (R.A. No. 8552) adoption. (Section 7 and 9, RA 8552). The consent of Lea is no longer required
Spouses Esteban and Maria decided to raise their two (2) nieces, Faith and Hope, because there was already a final decree of legal separation.
both minors, as their own children after the parents of the minors died in a If there was no legal separation, can Rex still adopt his illegitimate child?
vehicular accident. Explain. (2.5%) (2010 Bar Question)
Ten (10) years after, Esteban died. Maria later on married her boss Daniel, a
British national who had been living in the Philippines for two (2) years. Yes, he can still adopt his illegitimate child but with the consent of his spouse, of
Page 50 of 199 his 14-year-old legitimate child, of the illegitimate child, and of the biological
Civil Law mother of the illegitimate child (Section 7 and 9, RA 8552).
With the permission of Daniel, Maria filed a petition for the adoption of Faith Page 52 of 199
and Hope. She did not include Daniel as her co-petitioner because for Maria, it Civil Law
was her former husband Esteban who raised the kids. Eighteen-year old Filipina Patrice had a daughter out of wedlock whom she
If you are the judge, how will you resolve the petition? (2014 BAR) named Laurie. At 26, Patrice married American citizen John who brought her to
live with him in the United States of America. John at once signified his
I will dismiss the petition for adoption. The rule is that the husband and wife willingness to adopt Laurie.
must jointly adopt and there are only three recognized exceptions to joint Can John file the petition for adoption? If yes, what are the requirements? If no,
adoption by the husband and wife: 1) if one spouse seeks to adopt the legitimate why? (5%) (2010 Bar Question)
child of the other; 2) if one spouse seeks to adopt his or her own illegitimate
child; 3) if the spouses are legally separated. The case of Maria and Daniel does No, John cannot file the petition to adopt alone. Philippine law requires husband
not appear to fall under any of the recognized exceptions, accordingly the and wife to adopt jointly except in certain situations enumerated in the law. The
petition filed by the wife alone should be dismissed. case of John does not fall in any of the exceptions. (R.A. 8552).
Honorato filed a petition to adopt his minor illegitimate child Stephanie, alleging Rafael, a wealthy bachelor, filed a petition for the adoption of Dolly, a one-year
that Stephanie’s mother is Gemma Astorga Garcia; that Stephanie has been using old foundling who had a severe heart ailment. During the pendency of the
adoption proceedings, Rafael died of natural causes. The Office of the Solicitor Illegitimate brothers and sisters, whether of full or half-blood, are bound to
General files a motion to dismiss the petition on the ground that the case can no support each other, EXCEPT when (2011 BAR) (A) the brother or sister who
longer proceed because of the petitioner’s death. needs support lives in another place. (B) such brothers and sisters are not
Should the case be dismissed? Explain. (2%) (2009 Bar Question) recognized by their father. (C) the brother or sister in need stops schooling
without valid reason. (D) the need for support of a brother or sister, already of
It depends on the stage of the proceedings when Rafael died. If he died after all age, is due to the latter's fault.
the requirements under the law have been complied with and the case is already G filed on July 8, 2000 a petition for declaration of nullity of her marriage to B.
submitted for resolution, the court may grant the petition and issue a decree of During the pendency of the case, the couple entered into a compromise
adoption despite the death of the adopter (Section 13, RA 8552). Otherwise, the agreement to dissolve their absolute community of property. B ceded his right to
death of the petitioner shall have the effect of terminating the proceedings. their house and lot and all his shares in two business firms to G and their two
Will your answer be the same if it was Dolly who died during the pendency of children, aged 18 and 19.
the adoption proceedings? Explain. (2%) (2009 Bar Question) B also opened a bank account in the amount of P3 million in the name of the two
children to answer for their educational expenses until they finish their college
No, if it was Dolly who died, the case should be dismissed. Her death terminates degrees.
the proceedings (Art. 13, Domestic Adoption Law). Page 55 of 199
ALTERNATIVE Civil Law
For her part, G undertook to shoulder the day-to-day living expenses and upkeep
It depends. If all the requirements under the law have already been complied with of the children. The Court approved the spouses’ agreement on September 8,
and the case is already submitted for resolution, the death of the adoptee should 2000.
not abate the proceedings. The court should issue the decree of adoption if it will Suppose the business firms suffered reverses, rendering G unable to support
be for the best interest of the adoptee. While RA 8552 provides only for the case herself and the children. Can G still ask for support pendente lite from B?
where it is the petitioner who Explain. (3%) (2010 Bar Question)
Page 53 of 199
Civil Law Yes, G can still ask for support from B because during the pendency of the
dies before the decree is issued, it is with more compelling reason that the decree action, the marriage between them is considered still subsisting (Article 68,
should allowed in case it is the adoptee who dies because adoption is primarily Family Code). Being considered still married to each other, B and G still have
for his benefit. the obligation to support each other. The compromise agreement cannot operate
B. Inter-Country Adoption Act of 1995 (R.A. No. 8043) to waive future support when needed (Article 2035, Civil Code).
Under RA 8043, an adopter is required to be at least ____ years old and ____ After the compromise agreement was approved by the court and the properties of
years older than the child to be adopted at the time of the application unless the the marriage were distributed, there remained no more common properties of B
adopter is the parent by nature of the child. (2012 BAR) a) 30 and 15 b) 27 and and G. While Article 198 of the Family Code appears ' to limit the source of
16 c) 50 and 10 d) 18 and 15 Under RA 8043, a child qualified to be adopted is support to the common properties of the said marriage in case of the pendency of
any person below _____ years old. (2012 BAR) a) 18 b) 21 c) 15 d) 16 an action to declare the nullity of marriage, Article 94 and Article 121 indicate
IX. Support (Family Code) otherwise. Under the said Articles, the spouses remain personally and solidarily
Is the wife who leaves her husband without just cause entitled to support? (2011 liable with their separate properties for support even though, for whatever reason,
BAR) (A) No, because the wife must always be submissive and respectful to the there are no more community or partnership properties left.
husband. (B) Yes. The marriage not having been dissolved, the husband The judgment based on the compromise dissolving the property relations of B
continues to have an obligation to support his wife. (C) No, because in leaving and G does not bar G from asking support pendente lite. The dissolution of the
the conjugal home without just cause, she forfeits her right to support. (D) Yes, property relations of the spouses did not terminate the obligation between them
since the right to receive support is not subject to any condition. to support each other. The declaration of the nullity of their marriage is what
Mrs. L was married to a ship captain who worked for an international maritime terminates the right of G to be supported by B as his spouse.
vessel. For her and her family's support, she would claim monthly allotments Suppose in late 2004 the two children had squandered the P3 million fund for
from her husband's company. One day, while en route from Hong Kong to their education before they could obtain their college degrees, can they ask for
Manila, the vessel manned by Captain L encountered a severe typhoon at sea. more support from B? Explain. (3%) (2010 Bar Question)
The captain was able to send radio messages of distress to the head office until Yes, the two children can still ask for support for schooling or training for some
all communications were lost. In the weeks that followed, the search operations profession, trade or vocation, even beyond the age of majority until they shall
yielded debris of the lost ship but the bodies of the crew and the passengers were have finished or completed their education (Article 194, Paragraph 2, Family
not recovered. The insurance company thereafter paid out the death benefits to Code; Javier v. Lucero, 94 Phil. 634 [1954]). Their having squandered the money
all the heirs of the passengers and crew. Mrs. L filed a complaint demanding that given to them for their education will not deprive them of their right to complete
her monthly allotments continue for the next four years until her husband may be an education, or to extinguish the obligation of the parents to ensure the future of
legally presumed dead because of his absence. If you were the magistrate would their children.
how you rule? (3%) Gigolo entered into an agreement with Majorette for her to carry in her womb his
baby via in vitro fertilization. Gigolo undertook to underwrite Majorette’s pre-
Page 54 of 199 natal expenses as well as those attendant to her delivery. Gigolo would thereafter
Civil Law pay Majorette P2 million and, in return, she would give custody of the baby to
I would rule against Mrs. L. There is no merit in her contention that the monthly him.
allotments to her should continue despite the presumptive death of the husband. Page 56 of 199
In case of disappearance where there is danger of death, the person shall be Civil Law
presumed to have died at the beginning of the four (4) year period although his After Majorette gives birth and delivers the baby to Gigolo following her receipt
succession will be opened only at the end of the four year period. (Article 391, of P2 million, she engages your services as her lawyer to regain custody of the
Civil Code) Since the husband of Mrs. L is presumed to have died at about the baby.
time of disappearance, he is no longer entitled to receive his salary from the day xxx
the presumption of death arises. Spouses X and Y have a minor daughter, Z, who Is the child entitled to support and inheritance from Gigolo? Explain. (2.5%)
needs support for her education. Both X and Y, who are financially distressed, (2010 Bar Question)
could not give the needed support to Z. As it happens, Z’s other relatives are FIRST
financially capable of giving that support. From whom may Z first rightfully If Gigolo voluntarily recognized the child as his illegitimate child in accordance
demand support? From her (2011 BAR) (A) grandfather. (B) brother. (C) uncle. with Article 175 in relation to Article 172 of the Family Code, the child is
(D) first cousin. entitled to support and inheritance from Gigolo.
When the donor gives donations without reserving sufficient funds for his SECOND
support or for the support of his dependents, his donations are (A) Rescissible, Yes, because Gigolo is the natural and biological parent of the baby.
since it results in economic lesion of more than 25% of the value of his X. Parental Authority (Family Code)
properties. (B) Voidable, since his consent to the donation is vitiated by mindless Which of the following DOES NOT result in permanent termination of parental
kindness. (C) Void, since it amounts to wanton expenditure beyond his means. authority? (2012 BAR) a) Death of the parents. b) Death of the child. c)
(D) Reducible to the extent that the donations impaired the support due to Emancipation of the child. d) Conviction of the parents of a crime which carries
himself and his dependents. with it the penalty of civil interdiction. The court, in an action filed for the
purpose, may suspend parental authority if the parent or the person exercising
parental authority commits any of the following acts, except: (2012 BAR) a) No, because Rodolfo has no parental authority over Rona. He who has the
Treats the child with excessive harshness or cruelty. b) Gives the child corrupting parental authority has the right to custody. Under the Family Code, the mother
orders, counsel or example. c) Compels the child to take up a course in college alone has parental authority over the illegitimate child. This is true even if the
against his/her will. d) Subjects the child or allows him to be subjected to acts of illegitimate father has recognized the child and even though he is giving support
lasciviousness. for the child. To acquire custody over Rona, Rodolfo should first deprive Nanette
Gigolo entered into an agreement with Majorette for her to carry in her womb his of parental authority if there is a ground under the law, and in a proper court
baby via in vitro fertilization. Gigolo undertook to underwrite Majorette’s pre- proceeding. In the same action, the court may award custody of Rona to Rodolfo
natal expenses as well as those attendant to her delivery. Gigolo would thereafter if it is for her best interest.
pay Majorette P2 million and, in return, she would give custody of the baby to The authority that school administrators exercise over school children under their
him. supervision, instruction, or custody is called (2011 BAR) (A) legal parental
After Majorette gives birth and delivers the baby to Gigolo following her receipt authority. (B) substitute parental authority. (C) ordinary parental authority. (D)
of P2 million, she engages your services as her lawyer to regain custody of the special parental authority.
baby. Include: Child Abuse Law (R.A. No. 7610)
What legal action can you file on behalf of Majorette? Explain. (2.5%) (2010 Bar Gigolo entered into an agreement with Majorette for her to carry in her womb his
Question) baby via in vitro fertilization. Gigolo undertook to underwrite Majorette’s pre-
Page 57 of 199 natal expenses as well as those attendant to her delivery. Gigolo would thereafter
Civil Law pay Majorette P2 million and, in return, she would give custody of the baby to
FIRST him.
As her lawyer, I can file a petition for habeas corpus on behalf of Majorette to Page 59 of 199
recover custody of her child. Since she is the mother of the child that was born Civil Law
out of wedlock, she has exclusive parental authority and custody over the child. After Majorette gives birth and delivers the baby to Gigolo following her receipt
Gigolo, therefore, has no right to have custody of the child and his refusal to give of P2 million, she engages your services as her lawyer to regain custody of the
up custody will constitute illegal detention for which habeas corpus is the proper baby.
remedy. xxx
Can Gigolo demand from Majorette the return of the P2 million if he returns the
The action to regain custody will not prosper. In the first place Majorette cannot baby? Explain. (2.5%) (2010 Bar Question)
regain custody of the baby. As surrogate mother she merely carries the child in FIRST
her womb for its development. The child is the child of the natural parents - No, he cannot. Both he and Majorette are guilty of violating the provision of the
Gigolo and his partner. The agreement between Gigolo and Majorette is a valid Anti-Child Abuse Law (RA7610) on child trafficking. Being in pari delicto, the
agreement. parties shall be left where they are and Gigolo cannot demand the return of what
xxx he paid.
Who of the two can exercise parental authority over the child? Explain. (2.5%) SECOND
(2010 Bar Question) Yes. The agreement between Gigolo and Majorette is a valid agreement.
FIRST XI. Emancipation (Arts. 234 and 236, Family Code, as amended by R.A. No.
Majorette, the mother, can exercise parental authority. Since the child was born 6809 which lowered the age of majority)
out of wedlock, the child is illegitimate and the mother has the exclusive parental XII. Summary Judicial Proceedings in Family Law Cases
authority and custody over the child. XIII. Retroactivity of the Family Code (Art. 256)
SECOND XIV. Funerals (Arts. 305-310, Civil Code)
Gigolo can exercise parental authority over the child. Majorette has no blood XV. Use of Surnames
relation to the child. She is just a “carrier” of the child. Illegitimate children, those not recognized by their biological fathers, shall use
On May 5, 1989, 16-year old Rozanno, who was issued a student permit, drove the surname of their (2011 BAR) (A) biological father subject to no condition.
to school a car, a gift from his parents. On even date, as his class was scheduled (B) mother or biological father, at the mother’s discretion. (C) mother. (D)
to go on a field trip, his teacher requested him to accommodate in his car, as he biological father unless he judicially opposes it.
did, four (4) of his classmates because the van rented by the school was too Rodolfo, married to Sharon, had an illicit affair with his secretary, Nanette, a 19-
crowded. On the way to a museum which the students were scheduled to visit, year old girl, and begot a baby girl, Rona. Nanette sued Rodolfo for damages:
Rozanno made a wrong maneuver, causing a collision with a jeepney. One of his actual, for hospital and other medical expenses in delivering the child by I
classmates died. He and the three (3) others were badly injured. caesarean section; moral, claiming that Rodolfo promised to j marry her,
Who is liable for the death of Rozanno’s classmate and the injuries suffered by representing that he was single when, in fact, he was not; and exemplary, to teach
Rozanno and his 3 other classmates? Explain. (2%) (2010 Bar Question) a lesson to like-minded Lotharios.
xxx
At the time the incident occurred in May 1989, Rozanno was still a minor. Being Page 60 of 199
a minor, Article 218 of the Family Code applies. Pursuant to Article 218, the Civil Law
school, its administrators and teachers shall be liable for the acts of the minor Suppose Rodolfo later on acknowledges Rona and gives her regular support, can
Rozanno because of he compel her to use his surname? Why or why not? (2%) (2009 Bar Question)
Page 58 of 199
Civil Law No, he has no right to compel Rona to use his surname. The law does not give
the special parental authority and responsibility that they exercise over him. This him that right simply because he gave her support (RA 9255).
authority applies to all authorized activities, whether inside or outside the Under the Family Code, an illegitimate child was required to use only the
premises of the school, entity or institution. The field trip, on which occasion surname of the mother. Under RA 9255, otherwise known as the Revilla law,
Rozanno drove the car, was an authorized activity, and, thus, covered by the however, the illegitimate child is given the option to use the surname of the
provision. Furthermore, the parents of Rozanno are subsidiarily liable pursuant to illegitimate father when the latter has recognized the former in accordance with
Article 219 (FC), and principally liable under Article 221 (FC), if they were law. Since the choice belongs to the illegitimate child, Rodolfo cannot compel
negligent. Rona, if already of age, to use his surname against her will. If Rona is still a
Rodolfo, married to Sharon, had an illicit affair with his secretary, Nanette, a 19- minor, to use the surname of Rodolfo will require the consent of Rona’s mother
year old girl, and begot a baby girl, Rona. Nanette sued Rodolfo for damages: who has sole parental authority over her.
actual, for hospital and other medical expenses in delivering the child by I XVI. Absence (Art. 43, Civil Code; Art. 41, Family Code)
caesarean section; moral, claiming that Rodolfo promised to marry her, XVII. Civil Registrar
representing that he was single when, in fact, he was not; and exemplary, to teach
a lesson to like-minded Lotharios.
xxx
When Rona reaches seven (7) years old, she tells Rodolfo that she prefers to live
with him, because he is better off financially than Nanette. If Rodolfo files an
action for the custody of Rona, alleging that he is Rona’s choice as custodial
parent, will the court grant Rodolfo’s petition? Why or why not? (2%) (2009 Bar
Question)
PROPERTY Pedro is the registered owner of a parcel of land situated in
Malolos, Bulacan. In 1973, he mortgaged the land to the
Philippine National Bank (PNB) to secure a loan of
Characteristics P100,000.00. For Pedro’s failure to pay the loan, the PNB
TRUE or FALSE — Explain your answers. foreclosed on the mortgage in 1980, and the land was sold at
(a) All rights are considered as property. (2%) (2017 BAR) public auction to PNB for being the highest bidder. PNB
False. Only right which are patrimonial in character can be considered secured the title thereto in 1987. In the meanwhile, Pedro, who
property. Rights which are not patrimonial, such as the right to liberty, the right was still in possession of the land, constructed a warehouse on
to honor, family rights, and political rights cannot be considered property. the property. In 1988, the PNB sold the land to Pablo. The Deed
(b) A lessee cannot bring a case for quieting of title respecting the of Sale was amended in 1989 to include the warehouse. Pedro,
property that he leases. (2%) (2017 BAR) claiming ownership of the warehouse, files a complaint to
True. The plaintiff must have a legal or equitable title to the real property in annul the amended Deed of Sale before the Regional Trial
question or some interest therein, (or must be possession thereof, so that the Court of Quezon City, where he resides, against both the PNB
action may be in prescriptible (Article 476-477, Civil Code)
and Pablo. The PNB filed a motion to dismiss the complaint for
(c) Only the city or municipal mayor can file a civil action to abate improper venue contending that the warehouse is real
a public nuisance. (2%) (2017 BAR) property under Art. 415(1) of the Civil Code and therefore the
False. Article 703 of the New Civil Code provides that a private person may action should have instead been filed in Malolos, Bulacan.
file an action on account of a public nuisance, if it is especially injurious to
himself. Thus, a private person may file a civil action to abate a public Pedro claims otherwise. The question arose as to whether the
nuisance that is especially injurious to him. warehouse should be considered as real or personal property.
(d) Possession of a movable property is lost when the location of If consulted, what would your legal advice be? (1997 Bar)
The warehouse which is a construction adhered to the soil is an immovable by
the said movable is unknown to the owner. (2%) (2017 BAR) nature under Art. 415(1), and the proper venue of any case to recover ownership
False. Article 556 of the Civil Code provides that the possession of movables is of the same which is what the purpose of the complaint to annul the amended
not deemed lost so long as they remain under the control of the possessor, Deed of Sale amounts to, should be the place where the property is located, or
even though for the time being he may not know their whereabouts. Possession the RTC of Bulacan.
of a movable, therefore, is lost only when possessor loses control over it.
(e) Continuous non-apparent easements can be acquired either Manila Petroleum Co. owned and operated a petroleum
through title or by prescription. (2%) (2017 BAR) operation facility off the coast of Manila. The facility was
False. Article 620 of the Civil Code provides that continuous and apparent located on a floating platform made of wood and metal, upon
easement is acquired either by virtue of a title or by prescription of ten years.
Continuous non-apparent easements and discontinuous ones, whether apparent or which was permanently attached the heavy equipment for the
not, maybe acquired only by virtue of a title (Art. 622, NCC). An easement petroleum operations and living quarters of the crew. The
must be both continuous and apparent in Order to be subject to acquisition by floating platform likewise contained a garden area, where
prescription. trees, plants and flowers were planted. The platform was
tethered to a ship, the MV 101, which was anchored to the
seabed.
CLASSIFICATION a) Is the platform movable or immovable property?
a) The platform is an immovable property under Art. 415 (9) NCC, which
Salvador, a timber concessionaire, built on his lot a warehouse provides that "docks and structures which, though floating, are intended by their
where he processes and stores his timber for shipment. nature and object to remain at a fixed place on a river, lake or coast." Since the
Adjoining the warehouse is a furniture factory owned by floating platform is a petroleum operation facility, it is intended to remain
NARRAMIX of which Salvador is a majority stockholder. permanently where it is situated, even if it is tethered to a ship which is anchored
NARRAMIX leased space in the warehouse where it placed its to the seabed.
furniture-making machinery. (1995 Bar) b) Are the equipment and living quarters movable or immovable
1. How would you classify the furniture-making machinery as property?
property under the Civil Code? Explain. b) The equipment and living quarters of the crew are immovable property. Art.
1. The furniture-making machinery is movable property because it was not 415(3) of the NCC classifies as an immovable "everything attached to an
installed by the owner of the tenement. To become immovable under Art. 415 immovable in a fixed manner, in such a way that it cannot be separated therefrom
(5) of the NCC, the machinery must be installed by the owner of the without breaking the material or deterioration of the object."
tenement. Both the equipment and the living quarters are permanently attached to the
platform which is also an immovable. The equipment can also be classified as an
2. Suppose the lease contract between Salvador and NARRAMIX immovable property under Art. 415(5) NCC because such equipment are
stipulates that at the end of the lease the machinery shall become "machinery, receptacles, instruments or implements intended by the owner of the
the property of the lessor, will your answer be the same? Explain. tenement for an industry or works which may be carried on in a building or on a
2. It is immovable property. When there is a provision in the lease contract piece of land and which tend directly to meet the needs of the industry or works."
making the lessor, at the end of the lease owner of the machinery installed by the It is logically assumed that the petroleum industry may be carried on in a
lessee, the said machinery is considered to have been installed by the lessor building or on a piece of land and the platform is analogous to a building.
through the lessee who acted merely as his agent. Having been installed by the c) Are the trees, plants and flowers immovable or movable
owner of the tenement, the machinery became immovable under Art. 415 of the property? (2007 Bar)
NCC. (Davao Sawmill v. Castillo, 61 Phil 709)
c) The trees, plants and flowers planted in the garden area of the platform are
immovable property under Art. 415(2) NCC which classifies as an immovable
property "trees, plants and growing fruits, while they are attached to the land or
form an integral part of an immovable, the petroleum operation facility.
 If in removing the useful improvements Boboy caused more impairment on the
OWNERSHIP property leased than what is necessary, he will be liable for damages. (Art.
Joven and Juliana are the owners of a 30-hectare plantation in 1678)
Cotabato, covered by a title. One day, a group of armed men
forcibly entered their house and, at gun point, forced them to ACCESSION
sign a Deed of Absolute Sale in favor of Romeo. Romeo got the
title from them and they were ejected from the house and HIDDEN TREASURE
threatened not to come back or else they will be killed. The Tim came into possession of an old map showing where a
spouses went to Manila and resided there for more than 35 purported cache of gold bullion was hidden. Without any
years. They never went back to Cotabato for fear of their lives. authority from the government Tim conducted a relentless
Word came to them that peace and order have been restored in search and finally found the treasure buried in a new riverbed
their former place of residence and they decided to reclaim formerly part of a parcel of land owned by spouses Tirso and
their land for the benefit of their grandchildren. Joven and Tessie. The old river which used to cut through the land of
Juliana filed a suit for reconveyance of their property. This was Spouses Ursula and Urbito changed its course through natural
opposed by the grandson of Romeo to whom the title was causes. To whom shall the treasure belong? Explain (1995 Bar)
eventually transferred, on the ground of laches and The treasure was found in a property of public dominion, the new riverbed. Since
prescription. Decide the case and rule on the defenses of laches Tim did not have authority from the government and, therefore, was a trespasser,
and prescription. Explain your answer. (2016 Bar) he is not entitled to the one-half share allotted to a finder of hidden treasure. All
The right of the registered owners, Joven and Juliana, to file suit to recover their of it will go to the State. In addition, under Art. 438 of the NCC in order that the
property, is not barred by prescription. Under Section 47 of P.D. No. 1529, no finder be entitled to the 1/2 share, the treasure must be found by chance, that is
title to registered land in derogation of the title of the registered owner shall be by sheer luck. In this case, since Tim found the treasure not by chance but
acquired by prescription or adverse possession. Proof of possession by the owner because he relentlessly searched for it, he is not entitled to any share in the
in an action for recoveyance is immaterial and inconsequential. The right to hidden treasure.
recover possession is equally imprescriptible since possession is a mere
consequence of ownership (Republic v. Mendoza, 627 SCRA 443 [2010]). Marcelino, a treasure hunter as just a hobby, has found a map
The right of Joven and Juliana to recover is not barred by laches, either. Laches which appears to indicate the location of hidden treasure. He
deals with unreasonable delay in filing the action. The owner’s delay, if any, has an idea of the land where the treasure might possibly be
cannot be construed as deliberate and intentional. They were simply coerced out found. Upon inquiry, Marcelino learns that the owner of the
of Cotabato and threatened with death if they returned, and, thus, could not have
filed them.
land, Leopoldo, is a permanent resident of Canada. Nobody,
however, could give him Leopoldo's exact address. Ultimately,
Anselmo is the registered owner of a land and a house that his anyway, he enters the land and conducts a search. He succeeds.
Leopoldo learning of Marcelino's "find", seeks to recover the
friend Boboy for a nominal rental and on the condition that
Boboy would vacate the property on demand. With Anselmo's treasure from Marcelino but the latter is not willing to part
with it. Failing to reach an agreement, Leopoldo sues Marcelino
knowledge, Boboy introduced renovations consisting of an
additional bedroom, a covered veranda, and a concrete block for the recovery of the property. Marcelino contests the action.
How would you decide the case? (1997 Bar)
fence, at his own expense. Subsequently, Anselmo needed the
I would decide in favor of Marcelino since he is considered a finder by chance of
property as his residence and thus asked Boboy to vacate and the hidden treasure, hence, he is entitled to one-half (1/2) of the hidden treasure.
turn it over to him. Boboy, despite an extension, failed to While Marcelino may have had the intention to look for the hidden treasure, still
vacate the property, forcing Anselmo to send him a written he is a finder by chance since it is enough that he tried to look for it. By chance
demand to vacate. In his own written reply, Boboy signified in the law does not mean sheer luck such that the finder should have no intention
that he was ready to leave but Anselmo must first reimburse at all to look for the treasure. By chance means good luck, implying that one
him the value of the improvements he introduced on the who intentionally looks for the treasure is embraced in the provision. The reason
is that it is extremely difficult to find hidden treasure without looking for it
property as he is a builder in good faith. Anselmo refused,
deliberately. Marcelino is not a trespasser since there is no prohibition for him
insisting that Boboy cannot ask for reimbursement as he is a to enter the premises, hence, he is entitled to half of the treasure.
mere lessee. Boboy responded by removing the improvements
and leaving the building in its original state. Adam, a building contractor, was engaged by Blas to construct
1. Resolve Boboy's claim that as a builder in good faith, he should a house on a lot which he (Blas) owns. While digging on the lot
be reimbursed the value of the improvements he introduced. in order to lay down the foundation of the house, Adam hit a
Boboy’s claim that he is a builder in good faith has no legal basis. very hard object. It turned out to be the vault of the old Banco
A builder in good faith is someone who occupies the property in the concept of de las Islas Filipinas. Using a detonation device, Adam was able
an owner. The provisions on builder-planter-sower under the Civil Code cover
cases in which the builder, planter and sower believe themselves to be owners to open the vault containing old notes and coins which were in
of the land, or at least, to have a claim of title thereto. circulation during the Spanish era. While the notes and coins
As Boboy is a lessee of the property, even if he was paying nominal rental, are no longer legal tender, they were valued at P100 million
Article 1678 Civil Code, is applicable. Under this provision, if the lessee makes, because of their historical value and the coins silver nickel
in good faith, useful improvements which are suitable to the use for which the content. The following filed legal claims over the notes and
lease is intended without altering the form or substance of the property coins: i. Adam, as finder; ii. Blas, as owner of the property
leased, the lessor upon the termination of the lease shall pay the lessee one-half
where they were found; iii. Bank of the Philippine Islands, as
of the value of the improvements at that time. Should the lessor refuse to
reimburse said amount, the lessee may remove the improvements even though successor-in-interest of the owner of the vault; and iv. The
the principal thing may suffer damage thereby. Philippine Government because of their historical value. Who
2. Can Boboy be held liable for damages for removing the owns the notes and coins? (2008 Bar)
Hidden treasure is a money jewelry or other precious objects the ownership of
improvements over Anselmo's objection? (1990, 2013 Bar)
which does not appear. (Art. 439, CC) The vault of the Banco de las Islas
No. Boboy cannot be held liable for damages. The lessor, Anselmo, refused to Filipinas has been buried for about a century and the Bank of the Philippine
reimburse one-half of the value of the improvements, so the lessee, Boboy, Islands cannot succeed by inheritance to the property of Banco de las Islas
may remove the same, even though the principal thing may suffer damage Filipinas. The ownership of the vault, together with the notes and coins can now
thereby. legally be considered as hidden treasure because its ownership is no longer
apparent. The contractor, Adam, is not a trespasser and therefore entitled to
one-half of the hidden treasure and Blas as owner of the property, is entitled If Pedro is a builder in bad faith and Juan is an owner in bad faith, it shall be as if
to the other half. (Art. 438, CC) Since the notes and coins have historical both of them were in good faith. (Art. 453, New Civil Code)
value, the government may acquire them at their just price which in turn
will be divided equally between Adam and Blas. (Art. 438, par. 3, CC) Benjamin is the owner of a titled lot which is bounded on the
north by the Maragondon River. An alluvial deposit of two (2)
O, owner of Lot A, learning that Japanese soldiers may have hectares was added to the registered area. Daniel took
buried gold and other treasures at the adjoining vacant Lot B possession of the portion formed by accretion and claims that
belonging to spouses X & Y, excavated in Lot B where she he has been in open, continuous and undisturbed possession of
succeeded in unearthing gold and precious stones. How will said portion since 1923 as shown by a tax declaration. In 1958,
the treasures found by O be divided? 1. 100% to O as finder; 2. Benjamin filed a Complaint for Quieting of Title and contends
50% to O and 50% to the spouses X and Y; 3. 50% to O and that the alluvium belongs to him as the riparian owner and
50% to the state; 4. None of the above (2010 BAR) that since the alluvium is, by law, part and parcel of the
None of the above. The general rule us that the treasure shall belong to the registered property, the same may be considered as registered
spouses X and Y, the owners of Lot B.
Under Article 438 (NCC), the exception is that when the discovery of a hidden
property. Decide the case and explain. (2016, 2017 Bar)
treasure is made on the property of another and by chance, one-half thereof I will decide in favor of Daniel and dismiss the action to quite title filed by
shall belong to the owner of the land and the other one-half is allowed to the Benjamin.
finder. Under Art. 457 of the Civil Code, to the owner of lands adjoining the banks of
Here, the finding of the treasure was not by chance because O knew that the rivers belong the accretion which they gradually receive from the effects of the
treasure was in Lot B. While a trespasser is also not entitled to any share, and current of the waters. The accretion, however, does not automatically become
there is no indication in the problem whether or not O was a trespasser, O is not registered land. It must be brought under the Torrens system of registration
entitled to a share because the finding was not “by chance.” by Benjamin, the riparian owner. Since he did not, then the increment, not being
registered land, was open to acquisition through prescription by third
persons, like Daniel. (Grande v. Court of Appeals, 5 SCRA 524 [1962]; Cureg v.
BUILDER, PLANTER, SOWER Intermediate Appellate Court, 177 SCRA 313 [1989])
Pedro bought a parcel of land described as Cadastral Lot No.
123 and the title was issued to his name. Juan also bought a lot Ciriaco Realty Corporation (CRC) sold to the spouses Del a Cruz
in the same place, which is described as Cadastral Lot No. 124. a 500-square meter land (Lot A) in Paranaque. The land now
Pedro hired a geodetic engineer to determine the actual has a fair market value of P1, 200,000. CRC likewise sold to the
location of Lot No. 123 but for some reason, the engineer spouses Rodriguez, a 700-square meter land (Lot B) which is
pointed to Lot No. 124 by mistake. Pedro hired a contractor to adjacent to Lot A. Lot B has a present fair market value of
construct his house and the latter put up a sign stating the P1,500,000. The spouses Dela Cruz constructed a house on Lot
name of the owner of the project and the construction permit B, relying on the representation of the CRC sales agent that it is
number. It took more than a year before the house was the property they purchased. Only upon the completion of
constructed. When Pedro was already residing in his house, their house did the spouses Dela Cruz discover that they had
Juan told him to remove his house because it was built on his built on Lot B owned by the spouses Rodriguez, not on Lot A
(Juan's) lot. Juan filed a Complaint for Recovery of Possession that they purchased. They spent P1,000,000 for the house. As
and prayed that the house be removed because Pedro is a their lawyer, advise the spouses Dela Cruz on their rights and
builder in bad faith. Pedro filed his Answer with Counterclaim obligations under the given circumstances, and the recourses
that he is entitled to the payment of the value of the house plus and options open to them to protect their interests. (1992,
damages because he is a builder in good faith and that Juan is 2001, 2013 Bar)
guilty of estoppel and laches. Based on the facts as stated, the spouses Dela Cruz as builders and the spouses
Rodriguez as landowners, are both in good faith.
1. If Pedro is a builder in good faith, what are the rights given to The spouses Dela Cruz are builders in good faith because before constructing the
Juan under the law? Explain. house they exercised due diligence by asking the agent of CRC the location of
1. If Pedro is a builder in good faith and Juan is an owner in good faith, Juan has Lot A and they relied on the information given by the agent who is presumed
the right to appropriate as his own the house after payment of indemnity to know the identity of the lot purchased by the Dela Cruz spouses .
provided for in Articles 546 and 548 of the Civil Code, which are the necessary (Pleasantville v. CA, G.R. No. 79688, February 1, 1996)
and useful expenses. As to useful expenses, Juan has the option to either refund On the other hand, there is no showing that the landowners, spouses
the amount of the expenses, or pay the increase in value which the land may Rodriguez, acted in bad faith. The facts do not show that the building was done
have acquired by reason thereof. Alternatively, under Article 448 of the Civil with their knowledge and without opposition on their part (Art. 453). Good faith
Code, Juan has the right to oblige Pedro to pay the price of the land. However, is always presumed (Art. 527).
Pedro cannot be obliged to buy the land if its value is considerably more The owner of the land on which anything has been built, sown or planted in good
than that of the house. In such case, he shall pay reasonable rent, if Juan does faith shall have the right: 1. to appropriate as his own the works after
not choose to appropriate the house after proper indemnity. It is the owner of payment of the indemnity provided for in Articles 546 and 548, or 2. to oblige
the land who is authorized to exercise the options under Article 448 because his the one who built to pay the price of the land. However, the builder cannot be
right is older and by principle of accession, he is entitled to the ownership of obliged to buy the land if its value is considerably more than that of the
the accessory thing. building. In such case, he shall pay reasonable rent if the owner of the land
If Pedro is a builder in good faith and Juan is an owner in bad faith because Juan does not choose to appropriate the building or trees after proper indemnity.
knew that Pedro was building on his lot and did not oppose it (Art. 453 par. 2), (Art. 448, CC)
and Art. 454 in relation to Art. 447 of the Civil Code applies. Juan shall pay the The house constructed by the spouses Dela Cruz is considered as a useful
value of the house and is also liable for reparation of damage; however, Pedro expense, since it increased the value of the lot. As such, should the spouses
also has the right to remove or demolish the house and ask for damages. Rodriguez decide to appropriate the house, the spouses Dela Cruz are entitled to
2. If Pedro is a builder in bad faith, what are the rights given to the right of retention pending reimbursement of the expenses they incurred
Juan under the law? Explain. (2016 Bar) or the increase in value which the thing may have acquired by reason of the
If Pedro is a builder in bad faith and Juan is an owner in good faith, Juan has improvement (Art. 546). Thus, the spouses Dela Cruz may demand P1,000,000
three options. He may appropriate the improvements without indemnity as payment of the expenses in building the house or increase in value of the land
under Art. 449 of the Civil Code or demand the demolition of the house in because of the house as a useful improvement, as may be determined by the court
order to replace things to their former condition at Pedro’s expense under from the evidence presented during the trial. (Depra Dumlao, G.R. No. L 57348,
Art. 450 or compel Pedro to pay the price of the land. In addition to these May 16, 1985; Technogas Phils. v. CA,G.R. No. 108894, February 10, 1997)
options, Juan is also entitled to damages from Pedro.
A delayed accession is: (2014 BAR) A. Formation of an island B. Avulsion C.
Alluvium D. Change in the course of the riverbed
B (Art. 459, CC) Bartolome constructed a chapel on the land of Eric. What are
his right if he were:
Mr. and Mrs. X migrated to the US with all their children. As a. A possessor of the land in good faith?
they had no intention of coming back, they offered their house A chapel is a useful improvement. Bartolome may remove the chapel if it can be
and lot for sale to their neighbors, Mr. and Mrs. A (the buyers) removed without damage to the land, unless Eric chooses to acquire the chapel.
who agreed to buy the property for 128 Million. Because Mr. In the latter case, Bartolome has the right to the reimbursement of the value of
and Mrs. A needed to obtain a loan from a bank first, and since the chapel with right of retention until he is reimbursed. (Art. 448 in relation to
the sellers were in a hurry to migrate, the latter told the buyers Art. 546 and 547, NCC)
that they could already occupy the house, renovate it as it was b. A possessor of the land in bad faith? (1996 Bar)
already in a state of disrepair, and pay only when their loan is Bartolome, under Art. 449 of the NCC, loses whatever he built, without any
right to indemnity.
approved and released. While waiting for the loan approval,
the buyers spent P1 Million in repairing the house. A month
later, a person carrying an authenticated special power of Because of confusion as to the boundaries of the adjoining lots
attorney from the sellers demanded that the buyers either that they bought from the same subdivision company, X
immediately pay for the property in full now or vacate it and constructed a house on the adjoining lot of Y in the honest
pay damages for having made improvements on the property belief that it is the land that he bought from the subdivision
without a sale having been perfected. What are the buyers' company.
options or legal rights with respect to the expenses they What are the respective rights of X and Y with respect to X's house?
incurred in improving the property under circumstances? The rights of Y, as owner of the lot, and of X, as builder of a house thereon, are
governed by Art. 448 of the Civil Code which grants to Y the right to choose
(2015 Bar)
between two remedies: (a) appropriate the house by indemnifying X for its
The buyers here may be deemed possessors or builders in good faith because
value plus whatever necessary expenses the latter may have incurred for the
they were made to believe that they were allowed to make repairs or
preservation of the land, or (b) compel X to buy the land if the price of the
renovation by the sellers themselves.
land is not considerably more than the value of the house. If it is, then X
As builders in good faith, they have the right to seek reimbursement for the
cannot be obliged to buy the land, but he shall pay reasonable rent, and in
value of the improvements in case the owner decides to appropriate them.
case of disagreement, the court shall fix the terms of the lease.
They cannot be asked to remove the improvements because that is not one of
the options given by law to the landowner in case the builder is in good faith. Suppose X was in good faith but Y knew that X was constructing on
his (Y's) land but simply kept quiet about it, thinking perhaps that
A owns a parcel of residential land worth P500,000.00. he could get X's house later. What are the respective rights of the
Unknown to A, a residential house costing P100,000.00 is built parties over X's house in this case? (1999 Bar)
on the entire parcel by B who claims ownership of the land. Since the lot owner Y is deemed to be in bad faith (Art. 453), X as the party in
Answer all the following questions based on the premise that B good faith may (a) remove the house and demand indemnification for
damages suffered by him, or (b) demand payment of the value of the house
is a builder in good faith and A is a landowner in good faith plus reparation for damages (Art. 447, in relation to Art 454).
a) May A acquire the house built by B? If so, how? Y continues as owner of the lot and becomes, under the second option, owner of
a) Yes, A may acquire the house built by B by paying indemnity to B. Article the house as well, after he pays the sums demanded.
448 of the Civil Code provides that the owner of the land on which anyting has
been built, sown or planted in good faith, shall have the right to appropriate as In good faith, Pedro constructed a fivedoor commercial
his own works, sowing or planting, after payment of the indemnity provided
for in Article 546 of the Civil Code.
building on the land of Pablo who was also in good faith. When
Pablo discovered the construction, he opted to appropriate the
b) If the land increased in value to P550,000.00 by reason of the
building by paying Pedro the cost thereof. However, Pedro
building of the house thereon, what amount should be paid by A in
insists that he should be paid the current market value of the
order to acquire the house from B?
building, which was much higher because of inflation. (2000
b) A should pay B the sum of P50,000.00. Article 548 of the Civil Code provides
that useful expenses shall be refunded to the possessor in good faith with the Bar)
right of retention, the person who has defeated him in the possession having the 1) Who is correct Pedro or Pablo?
option of refunding the amount of the expenses or of paying the increase in Pablo is correct.
value which the thing may have acquired by reason thereof. The increase in Under Article 448 of the New Civil Code in relation to Article 546, the builder in
value amounts to P50,000. good faith is entitled to a refund of the necessary and useful expenses incurred by
c) Assuming that the cost of the house was P900,000.00 and not him, or the increase in value which the land may have acquired by reason of
the improvement, at the option of the landowner. The builder is entitled to a
P100,000.00, may A require B to buy the land?
refund of the expenses he incurred, and not to the market value of the
c) Yes, A may require B to buy the land. Article 448 of the Civil Code provides improvement. The case of Pecson v. CA (G.R. No. 115814, 26 May 1995), is
that the owner of the land on which anything has been built in good faith shall not applicable to the problem. In the Pecson case, the builder was the owner of
have the right to oblige the one who built to pay the price of the land if its the land who later lost the property at a public sale due to non-payment of taxes.
value is not considerably more than that of the building. The Court ruled that Article 448 does not apply to the case where the owner of
d) If B voluntarily buys the land as desired by A, under what the land is the builder but who later lost the land; not being applicable, the
circumstances may A nevertheless be entitled to have the house indemnity that should be paid to the buyer must be the fair market value of the
removed? building and not just the cost of construction thereof. The Court opined that to
d) If B agrees to buy land but fails to pay, A can have the house removed. do otherwise would unjustly enrich the new owner of the land.
(Depra v. Dumlao, 136 SCRA 475) 2) In the meantime, that Pedro is not yet paid, who is entitled to
e) In what situation may a “forced lease” arise between A and B, the rentals of the building, Pedro or Pablo?
and what terms and conditions would govern the lease? Give Pablo is entitled to the rentals of the building. As the owner of the land, Pablo is
reasons for your answers. (1992 Bar) also the owner of the building being an accession thereto. However, Pedro who
is entitled to retain the building is also entitled to retain the rentals. He, however,
e) Art. 448 of the Civil Code provides that the builder cannot be obliged to buy
shall apply the rentals to the indemnity payable to him after deducting reasonable
the land if its value is considerably more than that of the building. In such
cost of repair and maintenance.
case, he shall pay reasonable rent, if the owner of the land does not choose to
Mike built a house on his lot in Pasay City. Two years later, a survey disclosed
appropriate the building after proper indemnity. The parties shall agree upon
that a portion of the building actually stood on the neighboring land of Jose, to
the terms of the lease and in case of disagreement, the court fix the terms thereof.
the extent of 40 square meters. Jose claims that Mike is a builder in bad faith
because he should know the boundaries of his lot, and demands that the portion
of the house which encroached on his land should be destroyed or removed. giving rise to a new patch of dry land. Can they validly lay claim to the patch of
Mike replies that he is a builder in good faith and offers to buy the land occupied land? (2008, 2017 Bar)
by the building instead. 1) Is Mike a builder in good faith or bad faith? Why? 2) a) Jenny can legally claim ownership of the lands by right of accession
Whose preference should be followed? Why? (2001 Bar) (accretion) under Art. 457 of the Civil Code. The lands came into being over the
1) Yes, Mike is a builder in good faith. There is no showing that when he built years through the gradual deposition of soil and silt by the natural action of the
his house, he knew that a portion thereof encroached on Jose's lot. Unless one is waters of the river. Jessica cannot claim the two meter-wide strip of land added
versed in the science of surveying, he cannot determine the precise boundaries or to her land. Jessica constructed the cement barrier two meters in front of her
location of his property by merely examining his title. In the absence of contrary property towards the river not to protect her land from the destructive forces of
proof, the law presumes that the encroachment was done in good faith. the water but to trap the alluvium. In order that the riparian owner may be
(Technogas Phils, v. CA, G.R. No. 108894, February 10, 1997) 2) None of the entitled to the alluvium the deposition must occur naturally without the
preferences shall be followed. The preference of Mike cannot prevail because intervention of the riparian owner. (Republic v. CA 132 SCRA 514 [1984]) b)
under Article 448 of the Civil Code, it is the owner of the land who has the No, the registration of Jessica’s and Jenny’s adjoining property does not
option or choice, not the builder. On the other hand, even though the option automatically extend to the accretions. They have to bring their lands under the
belongs to Jose, he cannot demand that the portion of the house encroaching on operation of the Torrens system of land registration following the procedure
his land be destroyed or removed because this is not one of the options given by prescribed in P.D. No. 1529. c) Jessica and Jenny cannot validly lay claim to the
law to the owner of the land. The owner may choose between the appropriation price of dry land that resulted from the dumping of rocks and carth materials
of what was built after payment of indemnity, or to compel the builder to pay for excavated from their properties because it is a reclamation without authority. The
the land if the value of the land is not considerably more than that of the CIVIL LAW 2 0 2 1 A C A D E M I C S C O M M I T T E E U S T B A R O P E
building. Otherwise, the builder shall pay rent for the portion of the land R A T I O N S 58 land is part of the lakeshore, if not the lakebed, which is
encroached. inalienable land of the public domain.
For many years, the Rio Grande river deposited soil along its bank, beside the Marciano is the owner of a parcel of land through which a river runs out into the
titled land of Jose. In time, such deposit reached an area of one thousand square sea. The land had been brought under the Torrens System, and is cultivated by
meters. With the permission of Jose, Vicente cultivated the said area. Ten years Ulpiano and his family as farmworkers therein. Over the years, the river has
later, a big flood occurred in the river and transferred 1000 square meters to the brought silt and sediment from its sources up in the mountains and forests so that
opposite bank, beside the land of Agustin. The land transferred is now contested gradually the land owned by Marciano increased in area by three hectares.
by Jose and Agustin as riparian owners , and by Vicente who claims ownership Ulpiano built three huts on this additional area, where he and his two married
by prescription. Who QUAMTO (1987-2019) 57 should prevail? Why? (2001 children live. On this same area, Ulpiano and his family planted peanuts, monggo
Bar) beans and vegetables. Ulpiano also regularly paid taxes on the land, as shown by
Jose should prevail. The disputed area, which is an alluvion, belongs by right of tax declarations, for over thirty years. When Marciano learned of the increase in
accretion to Jose, the riparian owner. (Art. 457) When, as given in the problem, the size of the land, he ordered Ulpiano to demolish the huts, and demanded that
the very same area was "transferred" by flood waters to the opposite bank, it he be paid his share in the proceeds of the harvest. Marciano claims that under
became an avulsion and ownership thereof is retained by Jose who has two years the Civil Code, the alluvium belongs to him as a registered riparian owner to
to remove it. (Art. 459) Vicente's claim based on prescription is baseless since whose land the accretion attaches, and that his right is enforceable against the
his possession was by mere tolerance of Jose and, therefore, did not adversely whole world. a) Is Marciano correct? Explain. b) What rights, if any, does
affect Jose's possession and ownership. (Art. 537) Inasmuch as his possession is Ulpiano have against Marciano? Explain. (2009 Bar)
merely that of a holder, he cannot acquire the disputed area by prescription. a) Marciano’s contention is correct. Since that accretion was deposited on his
Andres is a riparian owner of a parcel of registered land. His land, however, has land by the action of the waters of the river and he did not construct any structure
gradually diminished in area due to the current of the river, while the registered to increase the deposition of soil and silt, Marciano automatically owns the
land of Mario on the opposite bank has gradually increased in area by 200-square accretion. His real right of ownership is enforceable against the whole world
meters. a) Who has the better right over the 200- square meter area that has been including Ulpiano and his two married children. Although Marciano’s land is
added to Mario’s registered land, Mario or Andres? b) May a third person registered, the three (3) hectares land deposited through accretion was not
acquire said 200- square meter land by prescription? (2003 Bar) automatically registered. As an unregistered land, it is subject to acquisitive
a. Mario has a better right over the 200 square meters increase in area by reason prescription by third persons. Although Ulpiano and his children live in the three
of accretion, applying Article 457 of the New Civil Code, which provides that (3) hectare unregistered land owned by Marciano, they are farm workers;
“to the owners of lands adjoining the banks of rivers belong the accretion which therefore, they are possessors not in the concept of owners but in the concept of
they gradually received from the effects of the current of the waters.” Andres mere holders. Even if they possess the land for more than 30 years, they cannot
cannot claim that the increase in Mario’s land is his own, because such is an become the owners thereof through extraordinary acquisitive prescription,
accretion and not a result of the sudden detachment of a known portion of his because the law requires possession in the concept of the owner. Payment of
land and its attachment to Mario’s land, a process called “avulsion”. He can no taxes and tax declaration are not enough to make their possession one in the
longer claim ownership of the portion of his registered land which was gradually concept of owner. They must repudiate the possession in the concept of holder by
and naturally eroded due to the current of the river, because he had lost it by executing unequivocal acts of repudiation amounting to ouster of Marciano,
operation of law. That portion of the land has become part of the public domain. known to Marciano and must be proven by clear and convincing evidence. Only
b. Yes, a third party may acquire by prescription the 200 square meters, increase then would his possession become adverse. b) Although Ulpiano is a possessor in
in area, because it is not included in the Torrens Title of the riparian owner. bad faith, because he knew he does not own the land, he will lose the three huts
Hence, this does not involve the imprescriptibility conferred by Section 47, P.D. he built in bad faith and make an accounting of the fruits he has gathered, he has
No. 1529. The fact that the riparian land is registered does not automatically the right to deduct from the value of the fruits the expenses for production,
make the accretion thereto a registered land. (Grande v. CA, G.R. No. L- 17652, gathering and preservation of the fruits. (Art. 443) He may also ask for
June 30, 1962; Jagualing v. CA, G.R. No. 94283, March 4, 1991) reimbursement of the taxes he has paid, as these are charges on the land owned
The properties of Jessica and Jenny, who are neighbors, lie along the banks of the by Marciano. This obligation is based on a quasi-contract. (Art. 2175)
Marikina River. At certain times of the year, the river would swell and as the Believing that he owned a certain parcel of land and completely unaware of any
water recedes, soil, rocks and other materials are deposited on Jessica's and defect in his title thereto, Mr. A started to build a house thereon. When Mr. P, the
Jenny's properties. This pattern of the river swelling, receding and depositing soil real owner of the land learned of Mr. A's actions, Mr. P immediately demanded
and other materials being deposited on the neighbors’ properties have gone on Mr. A to leave the premises. However, Mr. A refused to leave, and instead,
for many years. Knowing this pattern, Jessica constructed a concrete barrier asserted that as a builder in good faith, Mr. P is obliged to sell the land to him. a.
about 2 meters from her property line and extending towards the river, so that Is the claim of Mr. A correct? Explain. b. Assuming that Mr. P all the while,
when the water recedes, soil and other materials are trapped within this barrier. knew but did not object to Mr. A's construction of the house on his property, may
After several years, the area between Jessica's property line to the concrete Mr. A compel Mr. P to purchase the said improvement due to Mr. P's bad faith?
barrier was completely filled with soil, effectively increasing Jessica's property Explain. (2019 Bar)
by 2 meters. Jenny's property, where no barrier was constructed, also increased a. No, Mr. A is not correct. Mr. A who was completely unaware of any defect in
by one meter along the side of the river. a) Can Jessica and Jenny legally claim his title, is a builder in good faith. Mr. P who prompted Mr. A’s possession also
ownership over the additional 2 meters and one meter, respectively, of land acted in good faith. Article 448 applies in this case, which provides that only the
deposited along their properties? b) If Jessica's and Jenny's properties are owner of the land on which anything has been built, sown or planted in good
registered, will the benefit of such registration extend to the increased area of faith, has the right to appropriate as his own the works, sowing or planting, after
their properties? c) Assume the two properties are on a cliff adjoining the shore payment of the indemnity for necessary expenses and useful expenses where
of Laguna Lake. Jessica and Jenny had a hotel built on the properties. They had applicable, OR to oblige the one who built or planted to pay the price of the land,
the earth and rocks excavated from the properties dumped on the adjoining shore, and the one who sowed, the proper rent; however, the builder or planter cannot
be obliged to buy the land if its value is considerably more than that of the b) Given that, according to Section 48(b) of Commonwealth Act No.
building or trees. The law grants said rights to the owner of the land. The builder 141, M relation to Section 14(1) of Presidential Decree No. 1529,
in good faith, Mr. A in this case, cannot compel Mr. P, the owner of the land, to the open, continuous, exclusive, and notorious possession and
choose which right to exercise, for the option belongs to the owner alone. b. Yes,
Mr. A may compel Mr. P to purchase the improvements, Under Art. 454 of the
occupation of alienable and disposable lands of the public domain
Civil Code it provides that when the landowner acted in bad faith and the builder, as basis for judicial confirmation of imperfect title must be from
planter or sower proceeded in good faith, the provisions under Art. 447 shall June 12, 1945, or earlier, may Mike nevertheless validly base his
apply. Art. 453 of the same Code provides that it is understood that there is bad assertion of the right of ownership on prescription under the Civil
faith on the QUAMTO (1987-2019) 59 CO-OWNERSHIP (1993, 1998, 2000, Code? Explain your answer. (4%)
2002, 2006, 2008, 2009, 2015 BAR) part of the landowner whenever the act was (b) No, because the land remains property of public dominion and, therefore, not
done with his knowledge and without opposition on his part. Art. 447 provides susceptible to acquisition by prescription. According to jurisprudence, the
that the owner of the land who makes thereon, personally or through another, classification of the subject property as alienable and disposable land of the
plantings, constructions or works with the materials of another, shall pay their public domain does not change its status as property of the public dominion. In
value; and, if the landowner acted in bad faith, the owner of the materials may order to convert the property into patrimonial, there must be an express
remove them in any event, with a right to be indemnified for damages. The declaration by the State that the public dominion property is no longer intended
landowner, having known and without opposing the construction made by Mr. A for public service or the development of the national wealth or that the property
is deemed to have acted in bad faith: Art. 447, therefore, applies and Mr. P shall has been converted into patrimonial. Without such express declaration, the
pay the value of the improvement; i.e., the value of the materials, plus damages. property, even if classified as alienable or disposable, remains property of the
public dominion, and thus incapable of acquisition by prescription (Heirs of
Mario Malabanan v. Republic, G.R. No. 179987, April 29, 2009 and September
3,2013).
Here, the declaration of the property into alienable and disposable land of the
public domain in 1991 did not convert the property into patrimonial in the
absence of an express declaration of such conversion into patrimonial in the form
of a law duly enacted by Congress or by a Presidential proclamation in cases
where the President is duly authorized by law to that effect.
In 1960, Rigor and Mike occupied two separate but adjacent Does Rigor have legal basis for his application for judicial
tracts of land in Mindoro. Rigor's tract was classified as timber confirmation of imperfect title based on prescription as defined by
land while Mike's was classified as agricultural land. Each of the Civil Code given that, like Mike, his open, continuous, exclusive,
them fenced and cultivated his own tract continuously for 30 and notorious possession and occupation was not since June 12,
years. In 1991, the Government declared the land occupied by 1945, or earlier, and his tract of land was timber land until the
Mike as alienable and disposable, and the one cultivated by declaration in 1991. Explain your answer. (4%)
Rigor as no longer intended for public use or public service.
Rigor and Mike now come to you today for legal advice in (b) None, because Rigor's possession was short of the period required by the
asserting their right of ownership of their respective lands Civil Code for purposes of acquisitive prescription which requires ten (10) years
based on their long possession and occupation since 1960. of continuous possession, if possession was in good faith and with a just title, or
thirty years, in any event. While property may be considered converted into
What are the legal consequences of the 1991 declarations of the
patrimonial because of the 1991 declaration that it is no longer intended for
Government respecting the lands? Explain your answer. (2%) public use or public service (provided that the declaration be in the form of a law
(2017 BAR) duly enacted by Congress or by a Presidential proclamation in cases where the
As to the land occupied by Mike, the same remains a property of the public President is duly authorized by law to that effect), Rigor failed to complete the
dominion. According to jurisprudence, the classification of the property as 30-year period required by law in case of extraordinary prescription. Since the
alienable and disposable land of the public domain does not change its status as property was converted into patrimonial only in 1991, the period of prescription
property of the public dominion. There must be an express declaration by the commenced to run beginning that year only. Rigor's possession prior to the
State that the public dominion property is no longer intended for public service conversion of the property into patrimonial cannot be counted for the purpose
or the development of the national wealth or that the property, has been of completing the prescriptive period because prescription did not operate
converted into patrimonial. Without such express declaration, the property, against the State at that time, the property then being public dominion property
even if classified as alienable or disposable, remains property of the public (Heirs of Mark Malabonan v. Republic, G.R. No.179987 April 29, 2009 and
dominion (Heirs of Mario Malabanan v. Republic,G.R. No. 179987, April 29, September 3,2013). Rigor may not likewise acquire ownership by virtue of the
2009 and September 3,2013). shorter 10-year ordinary prescription because his possession was not in good
As to the land occupied by Rigor, the declaration that it is no longer intended for faith and without just title.
public use or public service converted the same into patrimonial property
provided that such express declaration was in the form of a law duly enacted by Joven and Juliana are the owners of a 30-hectare plantation in Cotabato, covered
Congress or in a Presidential Proclamation in cases where the President was by a title. One day, a group of armed men forcibly entered their house and, at gun
duly authorized by law. point, forced them to sign a Deed of Absolute Sale in favor of Romeo.
According to jurisprudence, when public land is no longer intended for public Romeo got the title from them and they were ejected from the house and
use, public service or for the development of the national wealth it is thereby threatened not to come back or else they will be killed. The spouses went to
effectively removed from the ambit of public dominion and converted into Manila and resided there for more than 35 years. They never went back to
patrimonial provided that the declaration of such conversion must be made in Cotabato for fear of their lives. Word came to them that peace and order have
the form of a law duly enacted by Congress or by a Presidential proclamation been restored in their former place of residence and they decided to reclaim their
in cases where the President is duly authorized by law to that effect (Heirs of land for the benefit of their grandchildren. Joven and Juliana filed a suit for
Mario Malabanan v. Republic, G.R. No. 179987, April 29, 2009 and September reconveyance of their property. This was opposed by the grandson of Romeo to
3, 2013). whom the title was eventually transferred, on the ground of laches and
prescription. Decide the case and rule on the defenses of laches and prescription.
Explain your answer. (5%) (2016 BAR)

The right of the registered owners, Joven and Juliana, to file suit to recover their
property, is not barred by prescription. Under Section 47 of P.D. No. 1529, no
title to registered land in derogation of the title of the registered owner shall be
acquired by prescription or adverse possession.
Proof of possession by the owner in an action for reconveyance is immaterial and
inconsequential. The right to recover possession is equally imprescriptible since
possession is a mere consequence of ownership (Republic v. Mendoza, 627
SCRA 443 [2010]). The right of Joven and Juliana to recover is not barred by
laches, either. Laches deals with unreasonable delay in filing the action. The Plutarco owned land that borders on a river. After several
owners’ delay, if any, cannot be construed as deliberate and intentional. They years the action of the water of the river caused the deposit of
were simply coerced out of Cotabato and threatened with death if they re- turned, soil, and increased the area of Plutarco's property by 200
and, thus, could not have filed the action.
square meters.
(a) If Plutarco wants to own the increase in area, what will be his
Ownership
legal basis for doing so? Explain your answer. (2%) (2017 BAR)
A congregation for religious women, by way of commodatum, is using the real
Plutarco's legal basis for owning the increase in area would be by accretion under
property owned and registered in the name of Spouses Manuel as a retreat house.
Article 457 of the New Civil Code, which says that the accretion of soil which is
Maria, a helper of the congregation discovered a chest in the backyard. When she
gradually received from the effects of the current of the waters belongs to the
opened the chest, it contained several pieces of jewelry and money.
owners of land adjoining the banks of the river. The requisites in order that the
a. Can the chest containing the pieces of jewelry and money be considered as
riparian owner will own the alluvion deposited through the process of accretion
hidden treasure?
are as follows: the deposit should be gradual and imperceptible, the cause of the
A: NO, for property to be considered hidden treasure it must consist of money,
accretion is the current of the river and is not artificial or man-made, and the land
jewelry or other precious objects, the lawful ownership of which does not appear.
where the accretion takes place is adjacent to the river bank.
In the case at bar, the chest was just lay in the backyard and the real property
In Plutarco's case, all three requisites are met, as the accretion took place over
where it was found belongs to the Spouses Manuel. They are thus presumed the
several years, was caused by the action of the river, and the land he owned
owner of the chest where the jewelry was found.
borders a riven therefore, he owns the increase In area by virtue of accretion.
b. Who has the right to claim ownership of it? (2014 BAR)
A: Since it does not come within the purview of hidden treasure, the spouses (b) On the other hand, if the river dries up, may Plutarco validly
Manuel have the right to claim ownership over the chest as well as its contents. claim a right of ownership of the dried-up river bed? Explain your
answer. (2%) (2017 BAR)
Multiple choice. Rivers and their natural beds, being of public dominion (Article 502(1) Civil
O, owner of Lot A, learning that Japanese soldiers may have buried gold and Code), are not subject to appropriation or accretion. The dried-up riverbed
other treasures at the adjoining vacant Lot B belonging to spouses X & Y, remains to be of public dominion and Plutarco cannot validly claim a right
excavated in Lot B where she succeeded in unearthing gold and precious stones. ownership over it (Republic v. Santos, G.R. No. 160453, November 12,2012).
How will the treasures found by O be divided? (1%) (2010 Bar Question)
A. 100% to O as finder
B. 50% to O and 50% to the spouses X and Y Benjamin is the owner of a titled lot which is bounded on the
C. 50% to O and 50% to the state north by the Maragondon River. An alluvial deposit of two (2)
D. None of the above hectares was added to the registered area. Daniel took posses-
sion of the portion formed by accretion and claims that he has
D. None of the above. been in open, continuous and undisturbed possession of said
The general rule is that the treasure shall belong to the spouses X and Y, the portion since 1923 as shown by a tax declaration. In 1958, Ben-
owners of Lot B. Under Article 438 (NCC), the exception is that when the
jamin filed a Complaint for Quieting of Title and contends that
discovery of a hidden treasure is made on the property of another and by chance,
one-half thereof shall belong to the owner of the land and the other one-half is the alluvium belongs to him as the riparian owner and that
allowed to the finder. In the problem, the finding of the treasure was not by since the alluvium is, by law, part and parcel of the registered
chance because O knew that the treasure was in Lot B. While a trespasser is also property, the same may be considered as registered property.
not entitled to any share, and there is no indication in the problem whether or not Decide the case and explain. (5%) (2016 BAR)
O was a trespasser, O is not entitled to a share because the finding was not “by I will decide in favor of Daniel and dismiss the action to quiet title filed by
chance”. Benjamin. Under Article 457 of the Civil Code, the owner of lands adjoining the
The owner of a thing cannot use it in a way that will injure the right of a third banks of rivers belong the accretion which they gradually receive from the
person. Thus, every building or land is subject to the easement which prohibits effects of the current of the waters. The accretion however, does not
its proprietor or possessor from committing nuisance like noise, jarring, automatically become registered land. It must be brought under the Torrens
offensive odor, and smoke. This principle is known as (2011 BAR) (A) Jus system of registration by Benjamin, the riparian owner. Since he did not, the then
vindicandi. (B) Sic utere tuo ut alienum non laedas. (C) Jus dispondendi. (D) Jus increment, not being registered land, was open to acquisition through
abutendi. prescription by third persons, like Daniel. (Grande v. Court of Appeals, 5 SCRA
524 [1962]; Cureg v. Intermediate Appellate Court, 177 SCRA 313 [1989]).
Accession
Josef owns a piece of land in Pampanga. The National Housing Authority (NHA) Pedro bought a parcel of land described as Cadastral Lot No.
sought to expropriate the property for its socialized housing project. The trial 123 and the title was issued to his name. Juan also bought a lot
court fixed the just compensation for the property at P50 million. The NHA in the same place, which is described as Cadastral Lot No. 124.
immediately deposited the same at the authorized depository bank and filed a Pedro hired a geodetic engineer to determine the actual
motion for the issuance of a writ of possession with the trial court. Unfortunately, location of Lot No. 123 but for some reason, the engineer
there was delay in the resolution of the motion. Meanwhile, the amount deposited
earned interest.
pointed to Lot No. 124 by mistake. Pedro hired a contractor to
When Josef sought the release of the amount deposited NHA argued that Josef construct his house and the latter put up a sign stating the
should only be entitled to P50 million. Who owns the interest earned? (3%) name of the owner of the project and the construction permit
(2017 Bar) number. It took more than a year before the house was
constructed. When Pedro was already residing in his house,
Josef owns the interest earned. In Republic v. Holy Trinity Realty Development Juan told him to remove his house because it was built on his
Corp., (CR. No. 172410, April 14, 2008), the Supreme Court has declared that (Juan’s) lot. Juan filed a Complaint for Recovery of Possession
upon deposit by the appropriator of the amount fixed for just compensation, the
owner whose property is sought to be expropriated becomes the owner of the and prayed that the house be removed because Pedro is a
deposited amount. Any interest, therefore, that accrues to such deposit belongs to builder in bad faith. Pedro filed his Answer with Counterclaim
the owner by right of accession. In the case at bar, Josef became the owner of the that he is entitled to the payment of the value of the house plus
amount deposited by NHA; thus, any interest that accrues therefrom pertains to damages because he is a builder in good faith and that Juan is
Josef by right of accession. guilty of estoppel and laches.
Note: In the case of NPC v. Heirs of Ramoran, OR. No. 193455, June 13, 2016,
[a] If Pedro is a builder in good faith, what are the rights given to
the Supreme Court ruled that the imposable rate of interest is 12% per annum
from the time of the taking until June 30, 2013, and 6% per' annum from July 1, Juan under the law? Explain. (2.5%)
2013 until full payment]. [a] If Pedro is a builder in good faith and Juan is an owner in good faith, Juan has
the right to appropriate as his own the house after payment of indemnity
provided for in Articles 546 and 548 of the Civil Code, which are the necessary
and useful expenses. As to useful expenses, Juan has the option to either refund
the amount of the expenses, or pay the increase in value which the land may have Ciriaco Realty Corporation (CRC) sold to the spouses Del a Cruz
acquired by reason thereof. a 500-square meter land (Lot A) in Paranaque. The land now
Alternatively, under Article 448 of the Civil Code, Juan has the right to oblige has a fair market value of Pl,200,000. CRC likewise sold to the
Pedro to pay the price of the land. However, Pedro cannot be obliged to buy the
land if its value is considerably more than that of the house. In such case, he shall
spouses Rodriguez, a 700-square meter land (Lot B) which is
pay reasonable rent, if Juan does not choose to appropriate the house after adjacent to Lot A. Lot B has a present fair market value of
proper indemnity. It is the owner of the land who is authorized to exercise the P1,500,000. The spouses Dela Cruz constructed a house on Lot
options under Article 448 because his right is older and by principle of accession, B, relying on there presentation of the CRC sales agent that it is
he is entitled to the ownership of the accessory thing. the property they purchased. Only upon the completion of
[b] If Pedro is a builder in bad faith, what are the rights given to their house did the spouses Dela Cruz discover that they had
Juan under the law? Explain. (2.5%) (2016 BAR) built on Lot B owned by the spouses Rodriguez, not on Lot A
that they purchased. They spent P 1 000,000 for the house. As
If Pedro is a builder in good faith and Juan is an owner in bad faith because Juan their lawyer, advise the spouses Dela Cruz on their rights and
knew that Pedro was building on his lot and did not oppose it (Article 453 par. obligations under the given circumstances, and the recourses
2), and Article 454 in relation to Article 447 of the Civil Code applies. Juan shall
and options open to them to protect their interests. (1992,
pay the value of the house and is also liable for reparation of damages; however,
Pedro also has the right to remove or demolish the house and ask for damages. 2001, 2013)
[b]If Pedro is a builder in bad faith and Juan is an owner in good faith, Juan has
three options. He may appropriate the improvements without indemnity under
Article 449 of the Civil Code, or demand the demoli- tion of the house in order to Based on the facts as stated, the spouses Dela Cruz as builders and the spouses
replace things to their former condition at Pedro’s expense under Article 450, or Rodriguez as landowners, are both in good faith. The spouses Dela Cruz are
compel Pedro to pay the price of the land. In addition to these options, Juan is builders in good faith because before constructing the house they exercised due
also entitled to damages from Pedro. diligence by asking the agent of CRC the location of Lot A and they relied on the
If Pedro is a builder in bad faith and Juan is an owner in bad faith, it shall be as if information given by the agent who is presumed to know the identity of the lot
both of them were in good faith (Article 453, New Civil Code). purchased by the Dela Cruz spouses. (Pleasantville v. CA, G.R. No. 79688,
February 1, 1996).
On the other hand, there is no showing that the landowners, spouses Rodriguez,
Mr. and Mrs. X migrated to the US with all their children. As acted in bad faith. The facts do not show that the building was done with their
they had no intention of coming back, they offered their house knowledge and without opposition on their part (Art. 453).
and lot for sale to their neighbors, Mr. and Mrs. A (the buyers) Good faith is always presumed (Art. 527). The owner of the land on which
who agreed to buy the property for 128 Million. Because Mr. anything has been built, sown or planted in good faith shall have the right:
and Mrs. A needed to obtain a loan from a bank first, and since 1. to appropriate as his own the works after payment of the indemnity
the sellers were in a hurry to migrate, the latter told the buyers provided for in Articles 546 and 548, or
2. to oblige the one who built to pay the price of the land.
that they could already occupy the house, renovate it as it was However, the builder cannot be obliged to buy the land if its value is
already in a state of disrepair, and pay only when their loan is considerably more than that of the building. In such case, he shall pay
approved and released. While waiting for the loan approval, reasonable rent if the owner of the land does not choose to appropriate the
the buyers spent .Pl Million in repairing the house. A month building or trees after proper indemnity. (Art. 448).
later, a person carrying an authenticated special power of The house constructed by the spouses Dela Cruz is considered as a useful
attorney from the sellers demanded that the buyers either expense, since it increased the value of the lot. As such, should the spouses
Rodriguez decide to appropriate the house, the spouses Dela Cruz are entitled to
immediately pay for the property in full now or vacate it and
the right of retention pending reimbursement of the expenses they incurred or the
pay damages for having made improvements on the property increase in value which the thing may have acquired by reason of the
without a sale having been perfected. improvement (Art. 546). Thus, the spouses Dela Cruz may demand P1,000,000
a. What are the buyers' options or legal rights with respect to the as payment of the expenses in building the house or increase in value of the land
they expenses incurred in improving the property under because of the house as a useful improvement, as may be determined by the court
circumstances? (2015 BAR) from the evidence presented during the trial (Depra Dumlao, G.R. No. L 57348,
May 16, 1985; Technogas Phils. v. CA, G.R. No. 108894, February 10, 1997).
A: The buyers here may be deemed possessors or builders in good faith because
they were made to believe that they were allowed to make repairs or renovation
by the sellers themselves. As builders in good faith, they have the right to seek Marciano is the owner of a parcel of land through which a river
reimbursement for the value of the improvements in case the owner decides to runs out into the sea. The land had been brought under the
appropriate them. They cannot be asked to remove the improvements because Torrens System, and is cultivated by Ulpiano and his family as
that is not one of the options given by law to the landowner in case the farmworkers therein. Over the years, the river brought silt and
builder is in good faith.
sediment from its source up in the mountains and forests so
A delayed accession is: (2014 BAR)
A. formation of an island that gradually the land owned by Marciano increased in area
B. avulsion by three hectares. Ulpiano built three huts on this additional
C. alluvium area, where he and his two married children live. On this same
D. change in the course of the riverbed area, Ulpiano and his family planted peanuts, mongo, beans
and vegetables. Ulpiano also regular paid taxes on the land, as
shown by tax declarations, for over thirty years. When
B (Art. 459)
Marciano learned of the increase in the size of the land he
ordered Ulpiano to demolish the huts, and demanded that he
be paid his share in the proceeds of the harvest. Marciano
claims that under the civil code, the alluvium belongs to him as
a registered riparian owner to whose land the accretion
attaches, and that his right is enforceable against the whole
world.
Is Marciano correct? Explain. (3%) (2009 Bar Question)

Marciano's contention is correct. Since the accretion was deposited on his land
by the action of the waters of the river and he did not construct any structure to
increase the deposition of soil and silt, Marciano automatically owns the
accretion. His real right of ownership is enforceable against the whole word in common if not decided upon by the majority of the co-owners who represent
including Ulpiano and his two married children. Although Marciano's land is the controlling interest. (Arts. 489 and 492, Civil Code)
registered, the 3 hectares land deposited through accretion was not automatically What are the legal effects of the contract of sale executed by A, C
registered. As unregistered land, it is subject to acquisitive prescription by third
and X? Reasons.
persons.
The sale to X shall not bind the 1/3 share of B and shall be deemed to cover only
Although Ulpiano and his children live in the 3 hectare unregistered land owned
the 2/3 share of A and C in the land (Art. 493, Civil Code). B shall have the right
by Marciano, they are farmworkers; therefore they are possessors not in the
to redeem the 2/3 share sold to X by A and C since X is a third person. (Art.
concept of owners but in the concept of mere holders. Even if they possessed the
1620, Civil Code)
land for more than 30 years, they cannot become the owners thereof through
extraordinary acquisitive prescription, because the law requires possession in
the concept of owner. Payment of taxes and tax declaration are not enough to Juan and his sister Juana inherited from their mother two
make their possession one in the concept of owner. They must repudiate the parcels of farmland with exactly the same areas. For
possession in the concept of holder by executing unequivocal acts of repudiation convenience, the Torrens certificates of title covering both lots
amounting to ouster of Marciano, known to Marciano and must be proven by were placed in Juan’s name alone. In 1996, Juan sold to an
clear and convincing evidence. Only then would his possession become adverse.
innocent purchaser one parcel in its entirety without the
What rights, if any, does Ulpiano have against Marciano? Explain knowledge and consent of Juana, and wrongfully kept for
(3%) (2009 Bar Question) himself the entire price paid. Since the two lots have the same
area, suppose Juana files a complaint to have herself declared
Although Ulpiano is a possessor in bad faith, because he knew he does not own
sole owner of the entire remaining second lot, contending that
the land, he will lose the three huts he built in bad faith and make an accounting
of the fruits he has gathered, he has the right to deduct from the value of the her brother had forfeited his share thereof by wrongfully
fruits the expenses for production, gathering and preservation of the fruits disposing of her undivided share in the first lot, will the suit
(Article 443, NCC). prosper? (1998 Bar)
He may also ask for reimbursement of the taxes he has paid, as these are
charges on the land owned by Marciano. This obligation is based on a quasi- Juana’s suit to have herself declared as sole owner of the entire remaining area
contract. (Article 2175, NCC). will not prosper because while Juan’s act in selling the other lot was wrongful, it
did not have the legal effect of forfeiting his share in the remaining lot.
However, Juana can file an action against Juan for partition or termination of the
co-ownership with a prayer that the lot sold be adjudicated to Juan, and the
remaining lot be adjudicated and reconveyed to her.

Co-ownership In 1955, Ramon and his sister Rosario inherited a parcel of

A, B and C are the co-owners in equal shares of a residential land in Albay from their parents. Since Rosario was gainfully
house and lot. During their co-ownership, the following acts employed in Manila, she left Ramon alone to process and
were respectively done by the co- owners: cultivate the land. However, Ramon never shared the harvest
1. A undertook the repair of the foundation of the house, with Rosario and was even able to sell one-half of the land in
then tilting to one side, to prevent the house from 1985 by claiming to be the sole heir of his parents. Having
collapsing. reached retirement age in 1990, Rosario returned to the
2. B and C mortgaged the house and lot to secure a loan. province and upon learning what had transpired, demanded
that the remaining half of the land be given to her as her share.
3. B engaged a contractor to build a concrete fence all around
Ramon opposed, asserting that he has already acquired
the lot.
ownership of the land by prescription, and that Rosario is
4. C built a beautiful grotto in the garden. barred by laches from demanding partition and reconveyance.
5. A and C sold the land to X for a very good price. Decide the conflicting claims. (2000 Bar)
Is A’s sole decision to repair the foundation of the house binding Ramon is wrong on both counts: prescription and laches.
on B and C? May A require B and C to contribute their 2/3 share of His possession as co-owner did not give rise to acquisitive prescription.
the expense? Reasons. Possession by a co-owner is deemed not adverse to the other co-owners but is,
on the contrary, deemed beneficial to them. (Pangan v. CA 166 SCRA 375)
Yes. A’s sole decision to repair the foundation is binding upon B and C, who
Ramon’s possession will become adverse only when he has repudiated the co-
must contribute 2/3 of the expense.
ownership and such repudiation was made known to Rosario.
Under the law on co-ownership, each co-owner has the right to compel the other
Assuming that the sale in 1985 where Ramon claimed he was the sole heir of his
co-owners to contribute to the expense for preservation of the thing (the house)
parents amounted to repudiation of the co-ownership; the prescriptive period
owned in common in proportion to their respective interests. (Arts. 485 and 488,
began to run only from that time. Not more than 30 years having lapsed since
Civil Code)
then, the claim of Rosario has not yet prescribed.
What is the legal effect f the mortgage contract executed by B and The claim of laches is not also meritorious.
C? Reasons. Until the repudiation of the co-ownership was made known to the other co-
The mortgage shall not bind the 1/3 right and interest of A and shall be deemed owners, no right has been violated for the said co-owners, no right has been
to cover only the rights and interests of B and C in the house and lot. violated for the said co-owners to vindicate. Mere delay in vindicating the
The mortgage shall be limited to the portion (2/3) which may be allotted to B and right, standing alone, does not constitute laches.
C in the partition. (Art. 493, Civil Code)
Is B’s sole decision to build the fence binding upon A and C? May B
require A and C to contribute their 2/3 share of the expense?
Reasons.
B’s sole decision to build the concrete fence is not binding upon A and C.
Expenses to improve the thing owned in common must be decided upon by a
majority of the co- owners who represent the controlling interest. (Arts. 489 and
492, Civil Code)
Is C’s sole decision to build the grotto binding upon A and B? May C
require A and B to contribute their 2/3 share of the expense?
Reasons.
C’s sole decision to build the grotto is not binding upon A and B who cannot be
required to contribute to the expenses for the embellishment of the thing owned
Senen and Peter are brothers. Senen migrated to Canada early preservation of the co-owned property. In effect, there is dacion en pago because
while still a teenager. Peter stayed in Bulacan to take care of the co-owner is discharging his monetary obligation by paying it with his non-
their widowed mother and continued to work on the Family monetary interest in the co-owned property. The fact that he is giving up his
entire interest simply means that he is accepting the value of his interest as
farm even after her death. Returning to the country some thirty equivalent to his share in the taxes and expenses of preservation.
years after he had left, Senen seeks a partition of the farm to
get his share as the only co-heir of Peter. Peter interposes his Ambrosio died, leaving his three daughters, Belen, Rosario and
opposition, contending that acquisitive prescription has Sylvia a hacienda which was mortgaged to the Philippine
already set in and that estoppel lies to bar the action for National Bank due to the failure of the daughters to pay the
partition, citing his continuous possession of the property for bank, the latter foreclosed the mortgage and the hacienda was
at least 10 years, for almost 30 years in fact. It is undisputed sold to it as the highest bidder. Six months later, Sylvia won the
that Peter has never openly claimed sole ownership of the grand prize at the lotto and used part of it to redeem the
property. If he ever had the intention to do so, Senen was hacienda from the bank. Thereafter, she took possession of the
completely ignorant of it. Will Senen’s action prosper? Explain. hacienda and refused to share its fruits with her sisters,
(2000, 2002 Bar) contending that it was owned exclusively by her, having bought
Senen’s action will prosper. Article 494 of the New Civil Code provides that “no
prescription shall run in favor of a co-owner or co-heir against his co-owners or it from the bank with her own money. Is she correct or not?
co-heirs so long as he expressly or impliedly recognizes the co-ownership (1993, 2000 Bar)
Sylvia is not correct.
The three daughters are co-owners of the hacienda being the only heirs of
nor notified Senen of his having repudiated the same.” Ambrosio. When the property was foreclosed, the right of redemption belongs
also to the three daughters. When Sylvia redeemed the entire property before the
lapse of the redemption period, she also exercised the right of redemption of her
Anthony bought a piece of untitled agricultural land from Bert. co-owners on their behalf. As such, she is holding the shares of her two sisters in
Bert, in turn, acquired the property by forging Carlo's the property and all the fruits corresponding thereto in trust for them.
signature in a deed of sale over the property. Carlo had been in Redemption by one co-owner inures to the benefit of all. (Adille v. CA,
possession of the property for 8 years, declared it for tax G.R. No. L-44546, January 29, 1988)
purposes, and religiously paid all taxes due on the property. Sylvia, however, is entitled to be reimbursed the shares of her two sisters in the
Anthony is not aware of the defect in Bert's title, but has been redemption price.
in actual physical possession of the property from the time he
bought it from Bert, who had never been in possession of the Antonio, Bart, and Carlos are brothers. They purchased from
property for one year. their parents specific portions of a parcel of land as evidenced
Can Anthony acquire ownership of the property by acquisitive by three separate deeds of sale, each deed referring to a
prescription? How many more years does he have to possess it to particular lot in metes and bounds. When the deeds were
acquire ownership? presented for registration, the Register of Deeds could not
Yes, Anthony can acquire ownership of the property by ordinary prescription issue separate certificates of title due to the absence of a
which requires just title and good faith (Art. 1117). There was just title because a subdivision plan. The new title had to be issued, therefore, in
deed of sale was issued in his favor even though it was forged, which in fact he the names of the brothers as co-owners of the entire property.
was not aware of. He needs to possess the land in good faith and in the concept The situation has not change up to now, but each of the
of an owner for a total of ten years in order to acquire ownership. Since Anthony brothers has been receiving rentals exclusively from the lot
possessed the land for only one year, he has not completed the ten-year period. actually purchased by him. Antonio sells his lot to a third
Even if Anthony tacks the 8-year period of possession by Carlo who in the deed
person, with notice to his brothers. To enable the buyer to
of sale is supposed to be his grantor or predecessor in interest (Art. 1138 (1)), the
period is still short of ten years. secure a new title in his name, the deed of sale was made to
refer to an undivided interest in the property of the seller
If Carlo is able to legally recover his property, can he require
(Antonio), with the metes and bound for the lot sold being
Anthony to account for all the fruits he has harvested from the
stated. Bart and Carlos reacted by signifying their exercise of
property while in possession?
their right redemption as co-owners. Antonio, in his behalf and
Anthony is a possessor in good faith. Anthony cannot be made to account for the
fruits he gathered before he was served with summons. A possessor in good faith in behalf of his buyer, contend that they are no longer co-
is entitled to the fruits received before the possession was legally interrupted by owners, although the title covering the property has remained
the service of summons (Art. 554). After Anthony was served with summons, he in their names assuch. Mary Bart and Carlos still redeem the lot
became a possessor in bad faith and a builder, planter, sower in bad faith. He can sold by Antonio? Explain. (2002 Bar)
also be made toaccount for the fruits but he may deduct expenses or production No, they may not redeem because there was no co-ownership among Antonio,
gathering and preservation of the fruits (Art. 443). Bart, and Carlos to start with. Their parents already partitioned the land in
If there are standing crops on the property when Carlo recovers selling separate portions to them. (Si v. Court of Appeals, G.R. No. 122047,
possession, can Carlo appropriate them? (2008 Bar) October 12, 2000)
The value of the standing crops must be prorated depending upon the period of
possession and the period of growing and producing the fruits. Anthony is X, Y, Z are siblings who inherited a 10-storey building from
entitled to a part of the net harvest and a part of expenses of cultivation in their parents. They agreed in writing to maintain it as a co-
proportion to his period of possession. Carlo may appropriate the respective parts owned property for leasing out and to divide the net profits
subject to prorating the respective periods of possession. However, Carlos may among themselves equally for a period of 20 years. On the 8th
allow Anthony to gather these growing fruits as an indemnity for the expenses of
year, X wanted to get out of the co-ownership so he could get
cultivation. If Anthony refuses to accept the concession, he shall lose the right to
indemnity under Art. 443 (Art. 545 par. 3). his 1/3 share in the property. Y and Z refused, saying X is
bound by their agreement to keep the co-ownership for 20
The renunciation by a co-owner of his undivided share in the years. Are Y and Z correct? Explain. (2015 Bar)
Y and Z are partly correct. The law provides that none of the co-owners shall be
co-owned property in lieu of the performance of his obligation obliged to remain in the co-ownership and it is the right of a co-owner to ask for
to contribute to taxes and expenses for the preservation of the partition of the co-ownership anytime.
property constitutes dacion en pago. (2009 Bar) One exception to the rule is if the co-owners agree to keep the thing undivided
Under the Civil Code, a co-owner may renounce his share in the co-owned which period shall not exceed ten years. In this case, the agreement to keep the
property in lieu of paying for his share in the taxes and expenses for the thing undivided shall be valid at the most for ten years. (Art. 494)
 equivalent of the performance of an obligation is considered as the object of the
Q: Distinguish between possession and contract of sale, while the debt is considered as the purchase price. In any case,
common con- sent is an essential prerequisite, be it sale or innovation to have the
occupation as these terms are commonly used in Book II and Book III of the effect of totally extinguishing the debt or obligation (Fiiinvest Credit Corporation
Civil Code. (1997, 2007 Bar) vs. Philippine Acetylene Company, Inc. G.R. No. L-50449 January 30, 1982).
There being no mention in the facts that Hagibis has given its consent to accept
A: Possession is a real right, while occupation is one of the original modes of the SUVs as equivalent payment, the obligation of Butch is not thereby
acquiring ownership and other real rights. Possession, the holding of a thing or extinguished by mere delivery of the SUVs.
the exercise of a right does not in itself constitute ownership. There can be
possession without ownership.
X, Y, Z are siblings who inherited a 10-storey building from
Alberto and Janine migrated to the United States of America, their parents. They agreed in writing to maintain it as a co-
leaving behind their 4 children, one of whom is Manny. They owned property for leasing out and to divide the net profits
own a duplex apartment and allowed Manny to live in one of among themselves equally for a period of 20 years. On the 8th
the units. While in the United States, Alberto died. His widow year, X wanted to get out of the co-ownership so he could get
and all his children executed an Extrajudicial Settlement of his 1/3 share in the property. Y and Z refused, saying X is
Alberto's estate wherein the two-door apartment was assigned bound by their agreement to keep the co-ownership for 20
by all the children to their mother, Janine. Subsequently, she years. Are Y and Z correct? Explain. (2015 BAR)
sold the property to George. The latter required Manny to sign
a prepared Lease Contract so that he and his family could Y and Z are partly correct. The law provides that none of the co-owners shall be
continue occupying the unit. Manny refused to sign the obliged to remain in the co-ownership and it is the right of a co-owner to ask
contract alleging that his parents allowed him and his family to for partition of the co-ownership anytime. One exception to the rule is if the
co-owners agree to keep the thing undivided which period shall not exceed
continue occupying the premises. If you were George's counsel, ten years. In this case, the agreement to keep the thing undivided shall be valid
what legal steps will you take? Explain. (2006 Bar) at the most for ten years. (Art. 494).
As George’s counsel, I will give Manny a written demand to vacate within a
definite period, say 15 days. After the lapse of 15-day period, I will file an action
for unlawful detainer to recover the possession of the apartment from Manny.
Manny’s occupation of the premises was by mere tolerance of his parents. When Raul, Ester, and Rufus inherited a 10-hectare land from their
all the co-heirs/co-owners assigned the 2-door apartment to Janine in the father. Before the land could be partitioned, however, Raul
extrajudicial partition, Janine became the sole owner of the same. He continued sold his hereditary right to Raffy, a stranger to the family, for
to occupy it under the same familial arrangement. Upon the sale of the property P5 million. Do Ester and Rufus have a remedy for keeping the
to George, Manny’s lawful occupation of the property was terminated and land within their family? (2011 BAR)
Manny’s refusal to sign the lease contract and to vacate the premises after the
period to vacate lapsed made his occupation unlawful, hence, entitling George to
the remedy of unlawful detainer. (A) Yes, they may be subrogated to Raffy’s right by reimbursing to him within
the required time what he paid Raul. (B) Yes, they may be subrogated to Raffy’s
Q: Felix cultivated a parcel of land and planted it with sugar cane, believing it to right provided they buy him out before he registers the sale. (C) No, they can be
be his own. When the crop was eight months old and harvestable after two more subrogated to Raffy’s right only with his conformity. (D) No, since there was no
months, a resurvey of the land showed that it really belonged to Fred. What are impediment to Raul selling his inheritance to a stranger.
the options available to Fred? (2000 Bar)

A: As to the pending crops planted by Felix in good faith, Fred has the option of
allowing Felix to continue the cultivation and to harvest the crops, or to continue
TRUE or FALSE. The renunciation by a co-owner of his
the cultivation and harvest the crops himself. In the latter option, however, Felix undivided share in the co-owned property in lieu of the
shall have the right to a part of the expenses of cultivation and to a part of the net performance of his obligation to contribute to taxes and
harvest, both in proportion to the time of possession. (Art. 545 NCC) expenses for the preservation of the property constitutes
dacion en pago. (2009 Bar Question)
True. Under the Civil Code, a co-owner may renounce his share in the co-owned
property in lieu of paying for his share in the taxes and expenses for the
preservation of the co-owned property. In effect, there is dacion en pago because
Butch got a loan from Hagibis Corporation (Hagibis) but he de- the co-owner is discharging his monetary obligation by paying it with his non-
faulted in the payment. A case for collection of a sum of money monetary interest in the co-owned property. The fact that he is giving up his
entire interest simply means that he is accepting the value of his interest as
was filed against him. As a defense, Butch claims that there was
equivalent to his share in the taxes and expenses of preservation.
already an arrangement with Hagibis on the payment of the
loan. To implement the same, Butch already surrendered five
(5) service utility vehicles (SUVs) to the company for it to sell
arid the proceeds to be credited to the loan as payment. Was Easements
the obliga- tion of Butch extinguished by reason of dacion en An easement that can be acquired by prescription: (2014 BAR)
pago upon the surrender of the SUVs? Decide and explain. (5%) D. Light and view
D – only continuous and apparent easements may be acquired by prescription.
(2016 BAR)

No, the obligation of Butch to Hagibis was not extinguished by the mere
surrender of the SUV’s to the latter. Dation in payment, whereby property is
alienated to the creditor in satisfaction of a debt in money, shall be governed by
the law of sales. (Article 1245). In dacion en pago, as a special mode of payment,
the debtor offers another thing to the creditor who accepts it as equivalent of
payment of an outstanding debt. The undertaking really partakes in one sense of
the nature of sale, that is, the creditor is really buying the thing or property of the
debtor, payment for which is to be charged against the debtor’s debt. As such, the
essential elements of a contract of sale, namely, consent, object certain, and
cause or consideration must be present. In dacion en pago there is in reality an
objective novation of the obligation where the thing offered as an accepted
Tyler owns a lot that is enclosed by the lots of Riley to the elements of a legal right of way under Art. 649 and 650 of the NCC are complied
North and East, of Dylan to the South, and of Reece to the West. with.
The current route to the public highway is a kilometer's walk
Q: David is the owner of the subdivision in Sta. Rosa, Laguna, without an access
through the northern lot of Riley, but the route is a rough road to the highway. When he applied for a license to establish the subdivision, David
that gets muddy during the rainy season, and is inconvenient represented that he will purchase a rice field located between his land and the
because it is only 2.5 meters wide. Tyler's nearest access to the highway, and develop it into an access road. But when the license was already
public highway would be through the southern lot of Dylan. granted, he did not bother to buy the rice field, which remains unutilized until the
May Dylan be legally required to afford to Tyler a right of way present. Instead, he chose to connect his subdivision with the neighboring
subdivision of Nestor, which has access to the highway. Nestor allowed him to
through his property? Explain your answer. (4%) (2017 BAR)
do this, pending negotiations on the compensation to be paid. When they failed
to arrive at an agreement, Nestor built a wall across the road connecting with
Dylan may not be legally required to afford Tyler a right of way through his David's subdivision. David filed a complaint in court, for the establishment of an
property, because Tyler already has an adequate outlet to the public highway easement of right of way through the subdivision of Nestor which he claims to be
through his Riley's lot. the most adequate and practical outlet to the highway.
One of the requisites for a compulsory grant of right of way is that the estate of
the claimant of a right of way must be isolated and without adequate outlet to a 1) What are the requisites for the establishment of a compulsory
public highway. The true standard for the grant of compulsory right of way is easement of a right of way?
"adequacy" of outlet going to a public highway and not the convenience of the 2) Is David entitled to a right of way in this case? Why or why not?
dominant estate. (1996 Bar)
Here, there is already an existing adequate outlet from the dominant estate to a
public highway. Even if said outlet be inconvenient, the need to open up another A:
legal easement or servitude is entirely unjustified. 1) The requisites for a compulsory easement of right of way are: (a) the
dominant estate is surrounded by other immovables and is without an adequate
Emma bought a parcel of land from Equitable-PCI Bank, which outlet to a public street or highway; (b) proper indemnity must be paid; (c) the
acquired the same from Felisa, the original owner. Thereafter, isolation must not be due to the acts of the owner of
Emma discovered that Felisa had granted a right of way over
the land in favor of the land of Georgina, which had no outlet to the dominant estate; and (d) the right of way claimed is at a point least
prejudicial to the servient estate and, insofar as is consistent with this rule, where
a public highway, but the easement was not annotated when
the distance to the street or highway is shortest. (Art. 650, NCC)
the servient estate was registered under the Torrens system.
Emma then filed a complaint for cancellation of the right of 2) No, David is not entitled to the right of way being claimed. The
way, on the ground that it had been extinguished by such isolation of his subdivision was due to his own act or omission because he did
failure to annotate. How would you decide the controversy? not develop into an access road the rice field which he was supposed to purchase
(2001 Bar) according to his own representation when he applied for a license to establish the
A: The complaint for cancellation of easement of right of way must fail. The subdivision. (Floro
failure to annotate the easement upon the title of the servient estate is not among i. Llenado, 244 SCRA 713)
the grounds for extinguishing an easement under Article 631 of the NCC. Under
Article 617, easements are inseparable from the estate to which they actively or Q: Don was the owner of an agricultural land with no access to a public road. He
passively belong. Once it attaches, it can only be extinguished under Article 631, had been passing through the land of Ernie with the latter's acquiescence for over
and they exist even if they are not stated or annotated as an encumbrance on the 20 years. Subsequently, Don subdivided his property into 20 residential lots and
Torrens title of the servient estate. (II Tolentino 326, 1987 ed.) sold them to different persons. Ernie blocked the pathway and refused to let the
buyers pass through his land.
Q: Franz was the owner of Lot E which was surrounded by four (4) lots one of
which – Lot C – he also owned. He promised Ava that if she bought Lot E, he a) Did Don acquire an easement of right of way? Explain.
would give her a right of way in Lot C. Convinced, Ava bought Lot E and, as b) What are the rights of the lot buyers, if any? Explain. (2005 Bar)
promised, Franz gave her a right of way in Lot C. Ava cultivated Lot E and used
the right of way granted by Franz. Ava later found gainful employment abroad. A:
On her return after more than 10 years, the right of way was no longer available a) Don did not acquire an easement of right of way. His passage through
to her because Franz had in the meantime sold Lot C to Julia who had it fenced. Ernie’s land was by mere acquiescence or tolerance. He cannot claim to have
acquired the easement of right of way by prescription, because this easement is
A. Does Ava have a right to demand from Julia the activation of her right discontinuous although apparent. Only continuous and apparent easements can
of way? Explain. be acquired by prescription of 10 years of uninterrupted use and enjoyment.
B. Assuming Ava opts to demand a right of way from any of the owners b) Prior to the grant of an easement, the buyers of the dominant estate
of Lots A, B, and D, can she do that? Explain. (2010 Bar) have no other right than to compel grant of easement of right of way. Since the
properties of the buyers are surrounded by other immovable and has no adequate
A: outlet to a public highway and the isolation is not due to their acts, buyers may
A. Yes. Ava has the right to demand from Julia the activation of the right demand an easement of a right of way provided proper indemnity is paid and the
of way, for the right of way demanded is the shortest and least prejudicial to Ernie.

following reasons: Tyler owns a lot that is enclosed by the lots of Riley to the
1. The easement of the right of way is a real right which attaches to, and North and East, of Dylan to the South, and of Reece to the West.
is inseparable from, the estate to which it belongs. The current route to the public highway is a kilometer’s walk
2. The sale of the property includes the easement or servitude, even if
through the northern lot of Riley, but the route is a rough road
the deed of sale is silent on the matter.
3. The vendee of the property in which a servitude or easement exists that gets muddy during the rainy season, and is inconvenient
cannot close or put obstructions thereon to prevent the dominant estate from because it is only 2.5 meters wide. Tyler’s nearest access to the
using it. public highway would be through the southern lot of Dylan.
4. Ava’s working abroad for more than ten (10) years should not be May Dylan be legally required to afford to Tyler a right of way
construed as non-user, because it cannot be implied from the fact that she or through his property? Explain your answer. (2017 Bar)
those she left behind to cultivate the lot no longer use the right of way. Dylan may not be legally required to afford Tyler a right of way through his
5. Renunciation or waiver of an easement must be specific, clear, property, because Tyler already has an adequate outlet to the public highway
express and made in a public instrument in accordance of Art. 1358 of the NCC. through his Riley’s lot.
One of the requisites for a compulsory grant of an easement of right of way is
B. Yes. Ava has the option to demand a right of way on any of the that the estate of the claimant of a right of way must be isolated and without
remaining lots of Franz more so after Franz sold lot C to Julia. The essential
adequate outlet to a public highway. The true standard for the grant of 1. An easement of right of way is a real right which attaches to, and is
compulsory right of way is “adequacy” of outlet going to a public highway and inseparable from, the estate to which it belongs.
not the convenience of the dominant estate. In the case at bar, there is already an 2. The sale of the property includes the easement or servitude, even if the
existing adequate outlet from the dominant estate to a public highway. Even if deed of sale is silent on the matter.
said outlet be inconvenient, the need to open up another legal easement or 3. The vendee of the property in which a servitude or easement exists cannot
servitude is entirely unjustified [Article 649, NCC; Dichoso Jr. v. Marcos, G.R. close or put up obstructions thereon to prevent the dominant estate from
No. 180282 (2011); Costabella Corp. v. CA, G.R. No. 80511 (1991)]. using it.
4. Ava’s working abroad for more than ten (10) years should not be construed as
non-user, because it cannot be implied from the facts that she or those whom
she left behind to cultivate the lot no longer use the right of way.
In 2005, Andres built a residential house on a lot whose only Note: Since a right of way is a discontinuous easement, the period of 10 years of
non-user shall be computed from the day it ceased to be used.
access to the national highway was a pathway crossing
5. Renunciation or waiver of an easement must be specific, clear, express, and
Brando's property. Andres and others have been using this made in a public instrument in accordance with Article 1358 of the New Civil
pathway (pathway A) since 1980. In 2006, Brando fenced off Code.
his property, thereby blocking Andres' access to the national Assuming Ava opts to demand a right of way from any of the
highway. Andres demanded that part of the fence be removed owners of Lots A, B, and D, can she do that? Explain. (2.5%) (2010
to maintain his old access route to the highway (pathway A), Bar Question)
but Brando refused, claiming that there was another available
pathway (pathway B) for ingress and egress to the highway. Yes. Ava has the option to demand a right of way on any of the remaining lots of
Andres countered that pathway B has defects, is circuitous, and Franz more so after Franz sold Lot C to Julia. The essential elements of a legal
is extremely inconvenient to use. To settle their dispute, right of way under Article 649 and 650 of the New Civil Code are complied with.
Andres and Brando hired Damian, a geodetic and civil The law also provides that whenever a piece of land acquired by sale, exchange
engineer, to survey and examine the two pathways and the or partition is surrounded by other estates of the vendor, exchanger, or co-owner,
he shall be obliged to grant a right of way without indemnity.
surrounding areas, and to determine the shortest and the least
prejudicial way through the servient estates. After the survey, TRUE or FALSE. Acquisitive prescription of a negative easement runs from the
the engineer concluded that pathway B is the longer route and time the owner of the dominant estate forbids, in a notarized document, the
will need improvements and repairs, but will not significantly owner of the servient estate from executing an act which would be lawful
affect the use of Brando's property. On the other hand, pathway without the easement. (2009 Bar Question)
A that had long been in place, is the shorter route but would
significantly affect the use of Brando's property. In light of the True. In negative easements, acquisitive prescription runs from the moment the
owner of the dominant estate forbade, by an instrument acknowledged before a
engineer's findings and the circumstances of the case, resolve notary public, the owner of the servient estate from executing an act which would
the parties' right of way dispute. (1996, 2013) be lawful without the easement (Art. 621, NCC).
Andres is not entitled to the easement of right of way for Pathway A. Pathway B
must be used.
The owner of a dominant estate may validly obtain a compulsory right of way
only after he has established the existence of four requisites, to wit:
1. the (dominant) estate is surrounded by other immovables and is without Nuisance
adequate outlet to a public highway; According to Art. 694 of the Civil Code, a nuisance is any act, omission,
2. after payment of the proper indemnity; establishment, business condition of property, or anything else which:
3. the isolation was not due to the proprietor's own acts; and i. Injures or endangers the health or safety of others; or
4. the right of way claimed is at a point least prejudicial to the servient estate, ii. Annoys or offends the sense; or
and insofar as consistent with this rule, where the distance from the dominant iii. Shocks, defies, or disregards decency or morality; or
estate to the public highway may be the shortest. (Art. 650). iv. Obstructs or interferes with the free passage of any public highway or
However, the Supreme Court has consistently ruled that in case both criteria street, or any body of water; or
cannot be complied with, the right of way shall be established at the point least v. Hinders or impairs the use of property.
prejudicial to the servient estate.
The first and fourth requisites are not complied with. First, there is another A nuisance may be either public or private.
available outlet to the national highway (Pathway B). Second, the right of way Under Art. 685, a public nuisance affects a community or neighborhood or
obtained (Pathway A) is not the least prejudicial to Brando's property as any considerable number of persons, although the extent of the annoyance,
evidenced by the reports of the geodetic and civil engineer. danger of damage upon individuals may be unequal.
When there is already an existing adequate outlet from the dominant estate to a A private nuisance, on the other hand, is one that violates only private rights
public highway, even if the said outlet, for one reason or another, be and produces damage to but one or a few persons.
inconvenient, the need to open up another servitude is entirely unjustified.
The rule that the easement of right of way shall be established at the point least
prejudicial to the servient estate is controlling. State with reason whether each of the following is a nuisance,
and if so, give its classification, whether public or private:
Franz was the owner of Lot E which was surrounded by four (4) a) A squatter’s hut
lots one of which - Lot C - he also owned. He promised Ava that A squatter’s hut being an illegal construction, constitutes a public nuisance per
se, if it poses problems of health and sanitation. (City of Manila v. Garcia, 19
if she bought Lot E, he would give her a right of way in Lot C.
SCRA 41, [1967]) If the squatter’s hut is built on a private land and hinders or
Convinced, Ava bought Lot E and, as promised, Franz gave her a impairs the owner’s use of his or her own property, then it would constitute a
right of way in Lot C. Ava cultivated Lot E and used the right of private nuisance.
way granted by Franz. Ava later found gainful employment b) A swimming pool
abroad. On her return after more than 10 years, the right of A swimming pool is not a nuisance and is an exception to the attractive nuisance
way was no longer available to her because Franz had in the doctrine. (Hidalgo v. Guillermo, 91 Phil. 488 [1952]) It generally does not cause
meantime sold Lot C to Julia who had it fenced. an injury, harm or prejudice to an individual or the public. (Art. 694, par. 1)
Does Ava have a right to demand from Julia the activation of her c) A house of prostitution
right of way? Explain. (2.5%) (2010 Bar Question) A house of prostitution is a public nuisance because it shocks or disregards the
decency or morality of the community. (Art. 694 par. 3, Civil Code)
Yes. Ava has the right to demand from Julia the activation of the right of way,
for the following reasons:
d) A noisy or dangerous factory in a private land
A noisy or dangerous factory even if built in a private land may be considered a
nuisance if it offends the sense of the owners of the adjacent property or
poses a danger to their safety. (Art. 694, par. 1, Civil Code) This kind of
nuisance may be classified as a public nuisance if it affects and annoys those who
come within its sphere.
e) Uncollected garbage
Uncollected garbage can be injurious to heath and even the environment. It is
thus, considered a public nuisance.

A drug lord and his family reside in a small bungalow where

they sell shabu and other prohibited drugs. When the police
found the illegal trade, they immediately demolished the house
because according to them, it was a nuisance per se that should
be abated. Can this demolition be sustained? Explain. (2006
Bar)
No, the demolition cannot be sustained. The house is not a nuisance per se or at
law as it is not an act, occupation, or structure which is a nuisance at all times
and under any circumstances, regardless of location or surroundings. A nuisance
per se is a nuisance in and of itself, without regard to circumstances.

Respondent Ernesto Lardizabal (Ernesto) filed a complaint for

demolition, before the City Engineer's Office of Baguio City
(City Engineer's Office), questioning the ongoing construction
of a residential structure and garage extension by petitioners
on a parcel of land. Upon investigation, the City Engineer's
Office found out that the construction had no building permit.
Consequently, the City Mayor issued Demolition Order No. 5.
Aggrieved, petitioners moved for a reconsideration of DO No.
05, but was denied by the City Mayor. Thus, they were
prompted to file a complaint for injunction and prohibition
with the RTC. Shall DO No. 5 be enjoined?
Yes. The following shall be subject for summary Eviction: (1) New squatter
families whose structures were built after the affectivity of RA 7279; and (2)
Squatter families identified by the LGU in cooperation with the Presidential
Commission of the Urban Poor (PCUP), Philippine National Police (PNP) and
accredited Urban Poor Organization (UPO) as professional squatters or members
of squatting syndicates as defined in the Act.
In this case, petitioners cannot be considered as new squatters, since, although
their structures were built after March 28, 1992, they or their predecessors-in-
interest had occupied, and were claimants of the subject property long before
the said date. Neither have they been identified by the LGU as professional
squatters nor members of a squatting syndicate. Thus, since petitioners do
not fall under the coverage of the said IRR, the issuance of DO No. 05 had no
legal basis at the onset.
 Page 88 of 199
OBLIGATIONS Civil Law
I. Definition a) Negligence b) Fraud c) Delay d) Mistake The following are the requisites of
II. Elements of an Obligation fortuitous event, except: (2012 BAR) a) Cause is independent of the will of the
The following are the elements of an obligation, except: (2012 BAR) a) debtor. b) The event is unforeseeable/unavoidable. c) Occurrence renders it
Juridical/Legal Tie b) Active subject c) Passive subject d) Consideration It is a absolutely impossible for the debtor to fulfill his obligation in a normal manner;
conduct that may consist of giving, doing, or not doing something. (2012 BAR) impossibility must be absolute not partial, otherwise not force majeure. d) Debtor
a) Obligation b) Juridical necessity c) Prestation d) Contract contributed to the aggravation of the injury to the creditor.
III. Different Kinds of Prestations
IV. Classification of Obligations A debtor may still be held liable for loss or damages even if it was caused by a
fortuitous event in any of the following instances, except: (2012 BAR) a) The
debtor is guilty of dolo, malice or bad faith, has promised the same thing to two
Zeny and Nolan were best friends for a long time already. Zeny or more persons who do not have the same interest. b) The debtor contributed to
borrowed 310,000.00 from Nolan, evidenced by a promissory the loss. c) The thing to be delivered is generic. d) The creditor is guilty of fraud,
note whereby Zeny promised to pay the loan "once his means negligence or delay or if he contravened the tenor of the obligation.
permit." Two months later, they had a quarrel that broke their Gary is a tobacco trader and also a lending investor. He sold tobacco leaves to
long-standing friendship. Nolan seeks your advice on how to Homer for delivery within a month, although the period for delivery was not
collect from Zeny despite the tenor of the promissory note. guaranteed. Despite Gary's efforts to deliver on time, transportation problems
What will your advice be? Explain your answer. and government red tape hindered his efforts and he could only deliver after 30
days. Homer refused to accept the late delivery and to pay on the ground that the
The remedy of Nolan is to go to court and ask that a period be fixed for the
agreed term had not been complied with.
payment of the debt. Article 1180 of the New Civil Code provides that when a
As lending investor, Gary granted a Pl,000,000 loan to Isaac to be paid within
debtorbinds himself to pay when his means permit him to do so, the obligation
two years from execution of the contract. As security for the loan, Isaac promised
shall be deemed to be one with a period (suspensive). Article 1197 provides that
to deliver to Gary his Toyota Innova within seven (7) days, but Isaac failed to do
the Courts may fix a period if such was
so. Gary was thus compelled to demand payment for the loan before the end of
intended from the nature of the obligation and may also fix the duration of the
the agreed two-year term. (2013 BAR)
period when such depends on the will of the debtor.
1) Was Homer justified in refusing to accept the tobacco leaves? (1%) (2012
BAR)
Sara borrowed PS0,000.00 from Julia and orally promised to (A) Yes. Homer was justified in refusing to accept the tobacco leaves. The
pay it within six months. When Sara tried to pay her debt on delivery was to be made within a month. Gary's promise of delivery on a "best
the gth month, Julia demanded the payment of interest of 12% effort" basis made the delivery uncertain. The term, therefore, was ambiguous.
per annum because of Sara's delay in payment. Sara paid her (B) No. Homer was not justified in refusing to accept the tobacco leaves. He
debt and the interest claimed by Julia. After rethinking, Sara consented to the terms and conditions of the sale and must abide by it.
Obligations arising from contract have the force of law between the contracting
demanded back from Julia the amount she had paid as interest. parties.
Julia claims she has no obligation to return the interest paid by Page 89 of 199
Sara because it was a natural obligation which Sara voluntarily Civil Law
performed and can no longer recover. Do you agree? Explain. (C) Yes. Homer was justified in his refusal to accept the delivery. The contract
(4%) contemplates an obligation with a term. Since the delivery was made after 30
No, the case is not one of a natural obligation because even if the contract of loan days, contrary to the terms agreed upon, Gary could not insist that Homer accept
is verbal, the delay of Julia made her liable for interest upon demand by Sara. the tobacco leaves.
This is not a case of a natural obligation but a civil obligation to pay interest by (D) No. Homer was not justified in refusing to accept the tobacco leaves. There
way of damages by reason of delay. (Article 1956; Article 1169; Article 2209 was no term in the contract but a mixed condition. The fulfillment of the
Civil Code) condition did not depend purely on Gary's will but on other factors, e.g., the
shipping company and the government. Homer should comply with his
obligation.
Distinguish civil and natural obligations. (2%) (2015 BAR)
A civil obligation is based on positive law which gives a right of action to
B (obligations arising from contracts have the force of law) or D (the obligation
compel their performance in case of breach. A natural obligation is based on
is not with the term but with a mixed condition –although the facts are not clear
equity and natural law and cannot be enforced by court action but after
enough if it was stated in the contract that the other factors like transportation or
voluntary fulfilment by the obligor, they authorize the retention of what may
government regulations would be a factor)
have been delivered or rendered by reason thereof. (Article 1423, Civil Code)
2) Can Gary compel Isaac to pay his loan even before the end of the two-year
period? (1%) (2012 BAR)
(A) Yes, Gary can compel Isaac to immediately pay the loan. Non-compliance
Sources of Obligations with the promised guaranty or security renders the obligation immediately
It is a juridical relation arising from lawful, voluntary and unilateral acts based demandable. Isaac lost his right to make use of the period.
on the principle that no one should unjustly enrich himself at the expense of (B) Yes, Gary can compel Isaac to immediately pay the loan. The delivery of the
another. (2012 BAR) a) Quasi-contract b) Quasi-delict c) Cotract d) Delict The Toyota Innova is a condition for the loan. Isaac's failure to deliver the car
following are the elements of quasi-delict, except: (2012 BAR) a) Act or violated the condition upon which the loan was granted. It is but fair for Gary to
omission b) Fault/negligence c) Damage/injury d) Pre-existing contract demand immediate payment.
VI. Nature and Effect of Obligations The creditor has the right to the fruits of the (C) No, Gary cannot compel Isaac to immediately pay the loan. The delivery of
thing from the time: (2012 BAR) a) the thing is delivered. b) the obligation to the car as security for the loan is an accessory contract; the principal contract is
deliver the things arises. c) the contract is perfected. d) the fruits are delivered. A still the P 1,000,000 loan. Thus, Isaac can still make use of the period.
debtor is liable for damages in case of delay if he is guilty of any of the (D) No, Gary cannot compel Isaac to immediately pay the loan. Equity dictates
following, except: (2012 BAR) a) default (mora) b) mistake c) negligence (culpa) that Gary should have granted a reasonable extension of time for Isaac to deliver
d) breach through contravention of the tenor thereof This term refers to a delay his Toyota Innova. It would be unfair and burdensome for Isaac to pay the
on the part of both the debtor and creditor in reciprocal obligations. (2012 BAR) P1,000,000 simply because the promised security was not delivered.
a) Mora accipiendi b) Mora solvendi c) Compensation morae d) Solution indibiti
The following are the requisites of mora solvendi, except: (2012 BAR) a) A – Article 1198 Isaac lost his right to make use of the period because he failed
Obligation pertains to the debtor and is determinate, due, demandable, and to furnish the guaranty or security in consideration of which Gary agreed to the
liquidated. b) Obligation was performed on its maturity date. c) There is judicial period
or extrajudicial demand by the creditor. d) Failure of the debtor to comply with VII. Kinds of Civil Obligations
such demand. It is an international evasion of the faithful performance of the Page 90 of 199
obligation. (2012 BAR) Civil Law
A natural obligation under the New Civil Code of the Philippines is one which C – Under Art. 1217 when one of the solidary debtors cannot because of his
(2011 BAR) (A) the obligor has a moral obligation to do, otherwise entitling the insolvency reimburse his share to the debtor paying, such share shall be borne by
obligee to damages. (B) refers to an obligation in writing to do or not to do. (C) all his co-debtors in proportion to the debt of each
the obligee may enforce through the court if violated by the obligor. (D) cannot Rudolf borrowed P1 million from Rodrigo and Fernando who acted as solidary
be judicially enforced but authorizes the obligee to retain the obligor’s payment creditors. When the loan matured, Rodrigo wrote a letter to Rudolf, demanding
or performance. payment of the loan directly to him. Before Rudolf could comply, Fernando went
to see him personally to collect and he paid him. Did Rudolf make a valid
payment? (2011 BAR) (A) No, since Rudolf should have split the payment
Joint and Solidary Obligation
between Rodrigo and Fernando. (B) No, since Rodrigo, the other solidary
Buko, Fermin and Toti bound themselves solidarily to pay Ayee the amount of P creditor, already made a prior demand for payment from Rudolf. (C) Yes, since
5,000.00. Suppose Buko paid the obligation, what is his right as against his co- the payment covers the whole obligation. (D) Yes, since Fernando was a solidary
debtors? (2012 BAR) a) Buko cas ask for reimbursement from Fermin and Toti. creditor, payment to him extinguished the obligation.
b) Buko can sue Fermin and Toti for damages. c) Buko can sue for rescission. d) Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat
Buko can claim a refund from Ayee. Buko, Fermin and Toti bound themselves docked in Subic. Before they could deliver it, however, the boat sank in a storm.
solidarily to pay Ayee the sum of P 10,000.00. When the obligation became due The contract provides that fortuitous event shall not exempt Roy and Carlos from
and demandable, Ayee sued Buko for the payment of the P 10,000.00. Buko their obligation. Owing to the loss of the motor boat, such obligation is deemed
moved to dismiss on the ground that there was failure to implead Fermin and converted into one of indemnity for damages. Is the liability of Roy and Carlos
Toti who are indispensable parties. Will the motion to dismiss prosper? Why? joint or solidary? (2011 BAR) (A) Neither solidary nor joint since they cannot
(2012 BAR) a) Yes, because Fermin and Toti should have been impleaded as waive the defense of fortuitous event to which they are entitled. (B) Solidary or
their obligation is solidary. b) No, because the creditor may proceed against any joint upon the discretion of Sam. (C) Solidary since Roy and Carlos failed to
one of the solidary debtors or some or all of them simultaneously. c) No, because perform their obligation to deliver the motor boat. (D) Joint since the conversion
a motion to dismiss is a prohibited pleading. d) Yes, because Fermin and Toti of their liability to one of indemnity for damages made it joint.
should also pay their share of the obligation. Buko, Fermin and Toti are
solidarily debtors of Ayee. Twelve (12) years after the obligation became due
and demandable, Buko paid Ayee and later on asked for reimbursement of
Fermin’s and Toti’s shares. Is Buko correct? Why? (2012 BAR) a) No, because Extinguishment of Obligations
the obligation has already prescribed. b) Yes, because the obligation is solidary. Jerico, the project owner, entered into a Construction Contract
c) No, because in solidary obligation any one of the solidary debtors can pay the
with Ivan for the latter to construct his house. Jojo executed a
entire debt. d) Yes, because Fermin and Toti will be unduly enriched at the
expense of Buko. Buko, Fermin and Toti are solidary debtors under a loan Surety undertaking to guarantee the performance of the work
obligation of P 300,000.00 which has fallen due. The creditor has, however, by Ivan. Jerico and Ivan later entered into a Memorandum of
condoned Fermin’s entire share in the debt. Since Toti has become insolvent, the Agree- ment (MOA) revising the work schedule of Ivan and the
creditor makes a demand on Buko to pay the debt. How much, if any, may Buko subcontractors. The MOA stated that all the stipulations of the
be compelled to pay? (2012 BAR) a) P 200.000.00 original contract not in conflict with said agreement shall
b) P 300,000.00 c) P 100,000.00 d) P 150,000.00 remain valid and legally effective. Jojo filed a suit to declare
a. Iya and Betty owed Jun P500,000.00 for advancing their equity in a
him relieved of his undertaking as a result of the MOA because
corporation they joined as incorporators. Iya and Betty bound themselves
solidarily liable for the debt. Later, Iya and Jun became sweethearts so Jun of the change in the work schedule. Jerico claims there is no
condoned the debt of P500,000.00. May lya demand from Betty P250,000.00 as novation of the Con- struction Contract. Decide the case and
her share in the debt? Explain with legal basis. explain. (5%) (2016 BAR)
I will decide in favor of Jerico as there is no novation of the Construction
NO, Iya may not demand the 250,000 from Betty because the entire obligation Contract. Novation is never presumed and may only take place when the
has been condoned by the creditor Jun. In a solidary obligation the remission of following are present:
the whole obligation obtained by one of the solidary debtors does not entitle him (1) a previous valid obligation;
to reimbursement from his co-debtors (Art. 1220). (2) the agreement of all the parties to the new contract;
b. Juancho, Don and Pedro borrowed P150,000.00 from their friend Cita to put (3) the extinguishment of the old contract; and
up an internet cafe orally promising to pay her the full amount after one year. (4) validity of the new one.
Because of their lack of business know-how, their business collapsed. Juancho There must be consent of all the parties to the substitution, resulting in the
and Don ended up penniless but Pedro was able to borrow money and put up a extinction of the old obligation and the creation of a new valid one. In this case,
restaurant which did well. Can Cita demand that Pedro pay the entire obligation the revision of the work schedule of Ivan and the subcontractors is not shown to
since he, together with the two others, promised to pay the amount in full after be so substantial as to extinguish the old contract, and there was also no
one year? Defend your answer. (2015 BAR) irreconcilable incompatibility between the old and new obligations. It has
also been held in jurisprudence that a surety may only be relieved of his
NO, Cita cannot demand that Pedro pay the entire obligation because the undertaking if there is a material change in the principal contract and such
obligation in this case is presumed to be joint. The concurrence of two or more would make the obligation of the surety onerous. The principal contract
creditors or of two or more debtors in one and the same obligation does not subject of the surety agreement still exists, and Jojo is still bound as a surety.
imply that each one of the former has a right to demand, or that each one of the
latter is bound to render, entire compliance with the prestation (Art. 1207). In a Dina bought a car from Jai and delivered a check in payment of
joint obligation, there is no mutual agency among the joint debtors such that if
the same. Has Dina paid the obligation? Why? (2012 BAR) a)
one of them is insolvent the others shall not be liable for his share.
A, B, C and D are the solidary debtors of X for P40,000. X released D from the No, not yet. The delivery of promissory notes payable to order,
payment of his share of PI 0,000. When the obligation became due and or bills of exchange or other mercantile documents shall
demandable, C turned out to be insolvent. produce the effect of payment only when they have been
Should the share of insolvent debtor C be divided only between the two other cashed, or when through the fault of the creditor they have
remaining debtors, A and B? (1%) (2013 BAR) been impaired. b) Yes, because a check is a valid legal tender of
(A) Yes. Remission of D's share carries with it total extinguishment of his payment.
obligation to the benefit of the solidary debtors. Page 94 of 199
Page 92 of 199 Civil Law
Civil Law c) It depends. If the check is a manager’s check or cashier’s check it will produce
(B) Yes. The Civil Code recognizes remission as a mode of extinguishing an the effect of payment. If it’s an ordinary check, no payment. d) Yes, because a
obligation. This clearly applies to D. check is as good as cash.
(C) No. The rule is that gratuitous acts should be restrictively construed, allowing
only the least transmission of rights. The following are the requisites of legal compensation, except: (2012 BAR) a)
(D) No, as the release of the share of one debtor would then increase the burden That each of the obligors is bound principally and that he be the same time a
of the other debtors without their consent. principal creditor of the other. b) That both debts consist in a sum of money, or if
the things due are consumable, they be the same kind, and also of the same
quality if the latter has been stated. c) That the two (2) debts are not yet due. d) In the case of JC, it does not appear that MSI had agreed to release JC from the
That they be liquidated and demandable. obligation. Hence, the obligation of JC was not extinguished.

X, a dressmaker, accepted clothing materials from Karla to Upon the proposal of a third person, a new debtor substituted
make two dresses for her day. On the day X was supposed to the original debtor without the latter’s consent. The creditor
deliver Karla's dresses, X called up Karla to say that she had an accepted the substitution. Later, however, the new debtor
urgent matter to attend to and will deliver them the next day. became insolvent and defaulted in his obligation. What is the
That night, however, a robber broke into her shop and took effect of the new debtor’s default upon the original debtor?
everything including Karla's two dresses. X claims she is not (2011 BAR)
liable to deliver Karla's dresses or to pay for the clothing (A) The original debtor is freed of liability since novation took place and this
materials considering she herself was a victim of the robbery relieved him of his obligation.
which was a fortuitous event and over which she had no
control. Do you agree? Why? (2015 BAR) Allan bought Billy’s property through Carlos, an agent
NO, I do not agree with the contention of X. empowered with a special power of attorney (SPA) to sell the
The law provides that except when it is otherwise declared by stipulation or same. When Allan was ready to pay as scheduled, Billy called,
when the law provides or the nature of the obligation requires the assumption of directing Allan to pay directly to him. On learning of this,
risk, no person shall be liable for those events which could not be foreseen or Carlos, Billy's agent, told Allan to pay through him as his SPA
which though foreseen were inevitable (Art. 1174).
provided and to protect his commission. Faced with two
In the case presented, X cannot invoke fortuitous event as a defense because she
had already incurred in delay at the time of the occurrence of the loss (Art. claimants, Allan consigned the payment in court. Billy
1165). protested, contending that the consignation is ineffective since
no tender of payment was made to him. Is he correct? (2011
X and Y are partners in a shop offering portrait painting. Y BAR)
provided the capital and the marketing while X was the (A) No, since consignation without tender of payment is allowed in the face of
the conflicting claims on the plaintiff. (B) Yes, as owner of the property sold,
portrait artist. They accepted the P50,000.00 payment of Kyla Billy can demand payment directly to himself. (C) Yes, since Allan made no
to do her portrait but X passed away without being able to do announcement of the tender. (D) Yes, a tender of payment is required for a valid
it. Can Kyla demand that Y deliver the portrait she had paid for consignation.
because she was dealing the with business establishment and
not with the artist personally? Why or why not? Anne owed Bessy P1 million due on October 1, 2011 but failed
NO, Kyla cannot demand that Y deliver the portrait. The death of X has the to pay her on due date. Bessy sent a demand letter to Anne
effect of dissolving the partnership (Art. 1830). Also, while the obligation was
giving her 5 days from receipt within which to pay. Two days
contracted by the partnership, it was X who was supposed to create the portrait
for Kyla. Since X died before creating the portrait, the obligation can no longer after receipt of the letter, Anne personally offered to pay Bessy
be complied because of impossibility of performance (Art. 1266). in manager's check but the latter refused to accept the same.
In obligations to do, the debtor shall be released when the prestation becomes The 5 days lapsed. May Anne’s obligation be considered
legally or physically impossible without the debtor’s fault. extinguished? (2011 BAR)
(A) Yes, since Bessy’s refusal of the manager’s check, which is presumed
In this jurisdiction, is a joint venture (i.e., a group of funded, amounts to a satisfaction of the obligation. (B) No, since tender of
corporations contributing resources for a specific project and payment even in cash, if refused, will not discharge the obligation without proper
consignation in court. (C) Yes, since Anne tendered payment of the full amount
sharing the profits therefrom) considered a partnership? due. (D) No, since a manager’s check is not considered legal tender in the
(2015 BAR) Philippines.
YES, under Philippine law, a joint venture is understood to mean an organization
formed for some temporary purpose and is hardly distinguishable form a
partnership since its elements are similar which are: community of interest in X borrowed money from a bank, secured by a mortgage on the
business, sharing of profits, and losses, and a mutual right of control (Primelink land of Y, his close friend. When the loan matured, Y offered to
Properties v. Lazatin, G.R. No. 167379, June 27, 2006 citing Blackner v. pay the bank but it refused since Y was not the borrower. Is the
Mcdermott, 176 F. 2d 498[1949]). bank’s action correct? (2011 BAR) (A) Yes, since X, the true
borrower, did not give his consent to Y’s offer to pay. (B) No,
J.C. Construction (J.C.) bought steel bars from Matibay Steel since anybody can discharge X’s obligation to his benefit. (C)
Industries (MSI) which is owned by Buddy Batungbacal. J.C. No, since Y, the owner of the collateral, has an interest in the
failed to pay the purchased materials worth P500,000.00 on payment of the obligation. (D) Yes, since it was X who has an
due date. J.C. persuaded its client Amoroso with whom it had obligation to the bank.
receivables to pay its obligation to MSI. Amoroso agreed and
paid MSI the amount of P50,000.00. After two (2) other Sarah had a deposit in a savings account with Filipino
payments, Amoroso stopped making further payments. Buddy Universal Bank in the amount of five Million pesos
filed a complaint for collection of the balance of the obligation (P5,000,000.00). To buy a new car, she obtained a loan from
and damages against J.C. J.C. denied any liability claiming that the same bank in the amount of P1,200,000.00, payable in
its obligation was extinguished by reason of novation which twelve monthly installments. Sarah issued in favor of the bank
took place when MSI accepted partial payments from Amoroso in post-dated checks, each in the amount of P100,000.00 to
on its behalf. Was the obligation of J.C. Construction to MSI cover the twelve monthly installment payments. On the third,
extinguished by novation? Why? (2014 BAR) fourth and fifth months, the corresponding checks bounced.
NO, the obligation of JC was not extinguished by novation. The bank then declared the whole obligation due, and proceed
Novation may either be objective or subjective. to deduct the amount of one million pesos (P1,000,000.00)
Subjective novation takes place by the substitution of the debtor or subrogation
from Sarah's deposit after notice to her that this is a form of
of a third person to the rights of the creditor.
Novation by substituting a new debtor may take place even without the compensation allowed by law. Is the bank correct? Explain.
knowledge or against the will of the original debtor but not without the consent (4%) (2009 Bar Question)
of the creditor. Moreover, novation must be expressed and it cannot be implied No the bank is not correct, while the Bank is correct about the applicability of
and there must be an agreement that the old obligation is extinguished. compensation, it was not correct as to the amount compensated.
A bank deposit is a contract of loan, where the depositor is the creditor and the
bank the debtor. Since Sarah is also the debtor of the bank with respect to the
loan, both are mutually principal debtors and creditors of each other. Both
obligations are due, demandable and liquidated but only up to the extent of
P300,000 (covering the unpaid third, fourth and fifth monthly installments). The
entire one million was not yet due because the loan has no acceleration clause in
case of default. And since there is no retention or controversy commenced by
third persons and communicated in due time to the debtor, then all the requisites
of legal compensation are present but only up to the amount of P300,000. The
bank, therefore, may deduct P300,000 pesos from Sarah's bank deposit by way of
compensation.
 The following are the ways by which innominate contracts are regulated, except:
CONTRACTS (2012 BAR) a) By the stipulation of the parties. b) By the general principles of
It is a principle which holds that contracts must be binding to both parties and its quasi-contracts and delicts c) By the rules governing the most analogous
validity and effectivity can never be left to the will of one of the parties. (2012 nominate contracts. d) By the customs of the place. An obligation which is based
BAR) a) Obligatory force of contracts b) Mutuality of contracts c) Autonomy of on equity and natural law is known as: (2012 BAR) a) pure b) quasi-contract c)
contracts d) Relativity of contracts civil d) natural

It refers to the rule that a contract is binding not only between parties but extends Mr. A, a businessman, put several real estate properties under
to the heirs, successors in interest, and assignees of the parties, provided that the the name of his eldest son X because at that time, X was the
contract involved transmissible rights by their nature, or by stipulation or by law. only one of legal age among his four children. He told his son
(2012 BAR) a) Obligatory force of contracts b) Mutuality of contracts c)
Autonomy of contracts d) Relativity of contracts he was to hold those assets for his siblings until they become
adults themselves. X then got married. After 5 years, Mr. A
It is rule which holds that the freedom of the parties to contract asked X to transfer the titles over three properties to his three
includes the freedom to stipulate, provided the stipulations are siblings, leaving two properties for himself. To A’s surprise, X
not contrary to law, morals, good customs, public order or said that he can no longer be made to transfer the properties to
public policy. (2012 BAR) his siblings because more than 5 years have passed since the
a) Obligatory force of contracts b) Mutuality of contracts c) Autonomy of titles were registered in his name. Do you agree? Explain.
contracts d) Relativity of contracts (2015 BAR)
NO, the transfer of the properties in the name of X was without cause or
Contracts take effect only between the parties or their assigns and heirs, except consideration and it was made for the purpose of holding these properties in
where the rights and obligations arising from the contract are not transmissible trust for the siblings of X. If the transfer was by virtue of a sale, the same is
by their nature, by stipulation, or by provision of law. In the latter case, the void for lack of cause or consideration. Hence, the action to declare the sale void
assigns or the heirs are not bound by the contracts. This is known as the principle is imprescriptible (Heirs of Ureta vs. Ureta, G.R. No. 165748 September 14,
of (2011 BAR) (A) Relativity of contracts. (B) Freedom to stipulate. (C) 2011).
Mutuality of contracts. (D) Obligatory force of contracts.
Marvin offered to construct the house of Carlos for a very
Essential Requisites reasonable price of P900,000.00, giving the latter 10 days
An offer becomes ineffective on any of the following grounds, except: (2012 within which to accept or reject the offer. On the fifth day,
BAR) a) Death, civil interdiction, insanity/insolvency of either party before before Carlos could make up his mind, Marvin withdrew his
acceptance is conveyed. b) Acceptance of the offer by the offeree. c) offer.
Qualified/conditional acceptance of the offer, which becomes counter-offer. d)
What is the effect of the withdrawal of Marvin's offer?
Subject matter becomes illegal/impossible before acceptance is communicated.
The withdrawal of Marvin’s offer is valid because there was no consideration
paid for the option. An option is a separate contract from the contract which is
Which of the following statements is correct? (2012 BAR) a) Offers in
the subject of the offer, and if not supported by any consideration, the option
interrelated contracts are perfected upon consent. b) Offers in interrelated
contract is not deemed perfected. Thus, Marvin may withdraw the offer at any
contracts require a single acceptance. c) Business advertisements are definite
time before acceptance of the offer.
offers that require specific acceptance. d) Advertisements for Bidders are only
invitations to make proposals and the advertiser is not bound to accept the Will your answer be the same if Carlos paid Marvin P10,000.00 as
highest/lowest bidder, unless it appears otherwise. consideration for that option? Explain.
If Carlos paid P10,000.00 as consideration for that option, Marvin cannot
withdraw the offer prior to expiration of the option period. The option is a
Kinds of Contracts separate contract and if founded on consideration is a perfected option contract
and must be respected by Marvin.
Briefly explain whether the following contracts are valid, Supposing that Carlos accepted the offer before Marvin could
rescissible, unenforceable, or void: communicate his withdrawal thereof? Discuss the legal
(a) A contract of sale between Lana and Andy wherein I6-year old consequences.
Lana agreed to sell her grand piano for 25,000.00. (2%) (2017 If Carlos has already accepted the offer and such acceptance has been
BAR) communicated to Marvin before Marvin communicates the withdrawal, the
The contract of sale is voidable, because Lana is a minor, and is thus incapable acceptance creates a perfected construction contract, even if no consideration
of giving consent to a contract. was as yet paid for the option. If Marvin does not perform his obligations under
(b) A contract of lease of the Philippine Sea entered by and the perfected contract of construction, he shall be liable for all consequences
arising from the breach thereof based on any of the available remedies which
between Mitoy and Elsa. (2%) (2017 BAR)
may be instituted by Carlos, such as specific performance, or rescission with
The contract of sale is void, because its object, the Philippine Sea, Is outside the
damages in both cases.
commerce of men.
(c) A barter of toys executed by I2-year old Clarence and 10-year
Distinguish briefly but clearly between:
old Czar (2%) (2017 BAR)
The contract Is unenforceable, because both parties, being minors, are incapable
Inexistent contracts and annullable contracts.
of giving consent. In inexistent contracts, one or more requisites of a valid contract are absent. In
anullable contracts, all the elements of a contract are present except that the
(d) A sale entered by Bind and Garri, both minors, which their consent of one of the contracting parties was vitiated or one of them has no
parents later ratified. (2%) (2017 BAR) capacity to give consent.
The contract is valid and may not be annulled by either party due to the Inexistent contracts are considered as not having been entered into and, therefore,
ratification by the parents of Barni and Garri, if done while both were still void ab initio. They do not create any obligation and cannot be ratified or
minors. Ratification extinguishes the action to annul a voidable contract, or an validated, as there is no agreement to ratify or validate. On the other hand,
unenforceable contract, as in this case were both parties were minors and may be annullable or voidable contracts are valid until invalidated by the court but may
done by the parents, as guardians of the minor children (Article 1407, NCC). be ratified.
(e) Jenny's sale of her car to Celestine in order to evade attachment
by Jenny's creditors. (2%) ( 2017 BAR)
The contract is rescissible because it is In fraud of creditors (Article 1381, NCC).
Jo-Ann asked her close friend, Aissa, to buy some groceries for Arlene owns a row of apartment houses in Kamuning, Quezon
her in the supermarket. Was there a nominate contract City. She agreed to lease Apartment No. 1 to Janet for a period
entered into between Jo-Ann and Aissa? In the affirmative, of 18 months at the rate of P10,000 per month. The lease was
what was it? Explain. (2003 Bar Question) not covered by any contract. Janet promptly gave Arlene two
Yes, there was a nominate contract. On the assumption that Aissa accepted the (2) months deposit and 18 checks covering the rental payment
request of her close friend Jo-Ann to buy some groceries for her in the for 18 months. This show of good faith prompted Arlene to
supermarket, what they entered into was the nominate contract of Agency. promise Janet that should Arlene decide to sell the property,
Article 1868 of the New Civil code provides that by the contract of agency a
person binds himself to render some service or to do something in representation
she would give Janet the right of first refusal. Not long after
or on behalf of another, with the consent or authority of the latter. Janet moved in, she received news that her application for a
Master of Laws scholarship at King's College in London had
Distinguish consensual from real contracts and name at least been approved. Since her acceptance of the scholarship
four (4) kinds of real contracts under the present law. (3%) entailed a transfer of residence, Janet asked Arlene to return
(1998 Bar Question) the advance rental payments she made. Arlene refused,
Consensual contracts are those which are perfected by mere consent (Art. 1315, prompting Janet to file an action to recover the payments.
Civil Code). Real contracts are those which are perfected by the delivery of the Arlene filed a motion to dismiss, claiming that the lease on which
object of the obligation. (Art. 1316, Civil Code) the action is based, is unenforceable. If you were the judge, would
Examples of real contracts are deposit, pledge, commodatum and simple loan you grant Arlene's motion? (1%)
(mutuum).
(A) Yes, I will grant the motion because the lease contract between Arlene and
Janet was not in writing, hence, Janet may not enforce any right arising from the
Formality same contract.
Which of the following contracts of sale is void? (2012 BAR) a) Sale of EGM’s (B) No, I will not grant the motion because to allow Arlene to retain the advance
car by KRP, EGM’s agent, whose authority is not reduced into writing. b) Sale of payments would amount to unjust enrichment.
EGM’s piece of land by KRP, EGM’s agent, whose authority is not reduced into (C) Yes, I will grant the motion because the action for recovery is premature;
writing. c) Sale of EGM’s car by KRP, a person stranger to EGM, without Janet should first secure a judicial rescission of the contract of lease.
EGM’s consent or authority. d) Sale of EGM’s piece of land by KRP, a person (D) No. I will not grant the motion because the cause of action does not seek to
stranger to EGM, without EGM’s consent or authority. The following are solemn enforce any right under the contract of lease.
contracts (Contracts which must appear in writing), except: (2012 BAR) a)
Donations of real estate or of movables if the value exceeds P 5,000.00. b) D – recovery of advance rental payments made is not covered by the statute of
Stipulation to pay interest in loans. c) Sale of land through an agent (authority frauds because its purpose it not to perpetrate fraud but to prevent fraud
must be in writing). Assume that Janet decided not to accept the scholarship and
Page 103 of 199 continued leasing Apartment No. 1. Midway through the lease
Civil Law
period, Arlene decided to sell Apartment No. 1 to Jun in breach of
d) Construction contract of a building.
her promise to Janet to grant her the right of first refusal. Thus,
Janet filed an action seeking the recognition of her right of first
Suppose that in an oral contract, which by its terms is not to be
performed within one year from the execution thereof, one of refusal, the payment of damages for the violation of this right, and
the contracting parties has already complied within the year the rescission of the sale between Arlene and Jun. Is Janet's action
with the obligations imposed upon him by said contract, can meritorious? (1%)
(A) Yes, under the Civil Code, a promise to buy and sell a determinate thing is
the other party avoid fulfillment of those incumbent upon him
reciprocally demandable.
by invoking the Statute of Frauds? (1988 Bar Question) (B) No, the promise to buy and sell a determinate thing was not supported by a
No, he cannot. This is so, because the Statute of Frauds aims to prevent and not consideration.
to protect fraud. It is well-settled that when the law declares that an agreement (C) Yes, Janet's right of first refusal was clearly violated when the property was
which by its terms is not to be performed within a year from the making thereof not offered for sale to her before it was sold to Jun.
is unenforceable by action, unless the same* or some note or memorandum (D) No, a right of first refusal involves an interest over real property that must be
thereof, be in writing, and subscribed by the party charged, or by his agent, it embodied in a written contract to be enforceable.
refers only to an agreement which by its terms is not to be performed on either (E) None of the above.
side within a year from the execution thereof. Hence, one which has already been Page 105 of 199
fully performed on one side within a year is taken out of the operation of the Civil Law
statute. (Phil. Nat. Bank vs. Phil. Vegetable Oil Co., 49 Phil. 857; Shoemaker vs.
La Tondena, 68 Phil. 24.) D – although the lease itself is valid even if verbal, the right of first refusal is a
different matter because a verbal promise to grant a right of first refusal which in
Which of the following actions or defenses are meritorious: essence is a promise to sell is unenforceable under the Statute of Frauds
(1%) (2013 BAR)
(A) An action for recovery of downpayment paid under a rescinded oral sale of Defective Contracts
real property.
(B) A defense in an action for ejectment that the lessor verbally promised to If one of the parties to the contract is without juridical
extend or renew the lease. capacity, the contract is:
(C) An action for payment of sum of money filed against one who orally (2012 BAR) a) voidable b) rescissible c) void d) unenforceable
promised to answer another's debt in case the latter defaults.
(D) A defense in an action for damages that the debtor has sufficient, but When both parties to the contract are minors, the contract is
unliquidated assets to satisfy the credit acquired when it becomes due. unenforceable
(E) None of the above.

A - In Asia Productions v. Pano (205 SCRA 458) the SC allowed recovery of the When the consent of one of the parties was vitiated, the
partial payment made by the buyer of a building under a verbal contract of sale contract is:
because the buyer is not seeking the enforcement of the contract and at any rate it voidable
is not covered by the statute of frauds. Consent was given by one in representation of another but without authority. The
contract is: (2012 BAR) a) voidable b) rescissible c) void d) unenforceable

The following are rescissible contracts, except: (2012 BAR) a) Entered into by
guardian whenever ward suffers damage more than ¼ of value of property. b)
Agreed upon in representation of absentees, if absentee suffers lesion by more
than ¼ of value of property. c) Contracts where fraud is committed on creditor
(accion pauliana). d) Contracts entered into by minors. The following are the
requisites before a contract entered into in fraud of creditors may be rescinded,
except: (2012 BAR) a) There must be credited existing prior to the celebration of
the contract. b) There must be fraud, or at least, the intent to commit fraud to the
prejudice of the creditor seeking rescission.

c) The creditor cannot in any legal manner collect his credit (subsidiary character
of rescission) d) The object of the contract must be legally in the possession of a
3rd person in good faith.

The following are the characteristics of a voidable contract, except: (2012 BAR)
a) Effective until set aside. b) May be assailed/attacked only in an action for that
purpose. c) Can be confirmed or ratified. d) Can be assailed only by either party.

The following are void contracts, except:

a) Pactum commissorium
b) Pactum de non alienando
c) Pactum leonine
d) Pacto de retro

When bilateral contracts are vitiated with vices of consent,

they are rendered (2011 BAR)
(A) rescissible. (B) void. (C) unenforceable. (D) voidable.

The presence of a vice of consent vitiates the consent of a party

in a contract and this renders the contract (2011 BAR)
(A) Rescissible. (B) Unenforceable. (C) Voidable. (D) Void.

Which of the following expresses a correct principle of law?

Choose the best answer. (2012 BAR)
a) Failure to disclose facts when there is a duty to reveal them, does not
constitute fraud.
b) Violence or intimidation does not render a contract annullable if employed not
by a contracting party but by a third person.
c) A threat to enforce one’s claim through competent authority, if the claim
is legal or just, does not vitiate consent.
d) Absolute simulation of a contract always results in a void contract.

Effect of Contracts
Which of the following statements is wrong? (2012 BAR)
a) Creditors are protected in cases of contracts intended to defraud them.
b) Contracts take effect only between the parties, their assign and heirs, except in
case where the rights and obligations arising from the contract are not
transmissible by their nature, or by stipulation or by provision of law.
c) If a contract should contain some stipulation in favor of a third person, he may
demand its fulfillment provided he communicated his acceptance to the obligor
before its revocation.
d) In contracts creating real rights, third persons who come into possession
of the object of the contract are not bound thereby.

Which phrase most accurately completes the statement – Any

third person who induces another to violate his contract:
(2012 BAR)
a) shall be liable for damages only if he is a party to the same contract.
b) shall be liable for damages to the other contracting party.
c) shall not be liable for damages to the other contracting party.
d) shall not be liable for damages if the parties are in pari delicto.

X sold Y 100 sacks of rice that Y was to pick up from X’s rice
mill on a particular date. Y did not, however, appear on the
agreed date to take delivery of the rice. After one week, X
automatically rescinded the sale without notarial notice to Y. Is
the rescission valid? (2011 BAR)
a) Yes, automatic rescission is allowed since, having the character of movables
and consumables, rice can easily deteriorate. b) No, the buyer is entitled to a
customary 30-day extension of his obligation to take delivery of the goods. c)
No, since there was no express agreement regarding automatic rescission. d) No,
the seller should first determine that Y was not justified in failing to appear.
 sell from arising and, thus, the prospective seller retains ownership without
SALES further remedies by the buyer. Since title is reserved to Alice until Bernadette
I. Definition and Essential Requisites of a Contract of Sale pays the full price for the lot, the contract in this case is a conditional sale.
Alice agreed to sell a parcel of land with an area of 500 square meters registered ANOTHER
in her name and covered by her TCT No. 12345 in favor of Bernadette for the (b) No, because there was no previous sale of the same property prior to its sale
amount of P900,000.00. Their agreement dated October 15, 2015 reads as to Chona. Despite the earlier transaction of Alice with Bernadette, the former is
follows: not guilty of double sale because the previous transaction with Bernadette is
I, Bernadette, agree to buy the lot owned by Alice covered by TCTNo. 12345 for characterized as a contract to sell. In a contract to sell, there being no previous
the amount of P900000.00 subject to the following schedule of payment: sale of the property, a third person buying such property despite the fulfillment of
Upon signing of agreement P100,000.00 the suspensive condition such as the full payment of the purchase price, for
November 15, 2015 P200,000.00 instance, cannot be deemed a buyer in bad faith and the prospective buyer cannot
December 15, 2015 P200,000.00 seek the relief of reconveyance of the property. There is no double sale in such
January IS, 2016 P200,000.00 case. Title to the property will transfer to the buyer after registration because
February 15, 2016 P200,000.00 there is no defect in the owner-sellers title per se, but the latter, of
Page 108 of 199 course, may be sued for damages by the intending buyer (Coronel c CA, G.R.
Civil Law No. 103577, October 7, 1996).
Title to the property shall be transferred upon full payment of P900,000.00 on or Jackie, 16, inherited a townhouse. Because she wanted to study in an exclusive
before February 15, 2016. school, she sold her townhouse by signing a Deed of Sale and turning over
After making the initial payment of P100,000.00 on October 15, 2015, and the possession of the same to the buyer. When the buyer discovered she was still a
second installment of P200,000.00 on November 15, 2015, Bernadette defaulted minor, she promised to execute another Deed of Sale when she turns 18. When
despite repeated demands from Alice. In December 2016, Bernadette offered to Jackie turned 25 and was already working, she wanted to annul the sale and
pay her balance but Alice refused and told her that the land was no longer for return the buyer's money to recover her townhouse. Was the sale contract void,
sale. Due to the refusal, Bernadette caused the annotation of her adverse claim voidable
upon TCT No. 12145 on December 19, 2016. Later on, Bernadette discovered Page 110 of 199
that Alice had sold the property to Chona on February 5,2016. and that TCT No. Civil Law
12345 had been cancelled and another one issued (TCT No. 67891) in favor of or valid? Can Jackie still recover the property? Explain. (2015 BAR)
Chona as the new owner.
Bernadette sued Alice and Chona for specific performance, annulment of sale
and cancellation of TCT No. 67891. Bernadette insisted that she, had entered into The contract of sale was voidable on the ground that Jackie is incapable of giving
a contract of sale with Alice; and that because Alice had engaged in double sale, consent at the time of the execution of the sale(Art. 1390 and Art. 1327). Jackie
TCT No. 67891 should be cancelled and another title be issued in Bemadette'S can no longer recover the townhouse unit because if a contract is voidable on the
favor. ground of minority, the action to annul it must be filed within four (4) years from
a) Did Alice and Bernadette enter into a contract of sale of the lot covered by attainment of the age of majority. Since Jackie was already 25 years old, the
TCT No. 12345? Explain your answer. (4%) (2017 BAR) action has clearly prescribed because she should have filed it before she reached
the age of 22 (Art. 1391).
(a) Yes, they entered into a contract of sale which is a conditional sale. Article Z, a gambler, wagered and lost P2 Million in baccarat, a card game. He was
1458(2) provides that a contract of sale may be absolute or conditional. In a pressured into signing a Deed of Absolute Sale in favor of the winner covering a
contract of conditional sale, the buyer automatically acquires title to the property parcel of land with improvements worth P20 Million. One month later, the
upon full payment of the purchase price. This transfer of title is "by operation of supposed vendee of the property demanded that he and his family vacate the
law without any further act having to be performed by the seller. In a contract to property subject of the deed of sale. Was the deed of sale valid? What can Z do?
sell, transfer of title to the prospective buyer is not automatic, The prospective (2015 BAR)
seller [must] convey title to the property (through a deed of conditional sale"
(Olivarez Realty Corporation v. Castillo, G.R. No. 196251, July 9,2014).
In this case, it was stipulated that "Title to the property shall be transferred upon The sale is valid. Being pressured to sign the deed of sale is not equivalent to
full payment of P900,00000 or before February 15, 2016." Thus, they entered vitiation of consent under Art. 1390(2). Mere pressure cannot constitute
into a conditional sale. intimidation because for intimidation to arise, the party must be compelled by a
ANOTHER reasonable or well- grounded fear of an imminent & grave danger upon person &
(a) No, because in the agreement between Alice and Bernadette, the ownership is property of himself, spouse, ascendants or descendants. It also cannot constitute
reserved in the vendor and is not .to pass to the vendee until full payment of the undue influence or when a person takes improper advantage of his power over
purchase price, which makes the contract one of contract to sell and not a will of another depriving latter of reasonable freedom of choice because there
contract of sale. Distinctions between a contract to sell and a contract of sale are was no indication that the winner has moral ascendency or power over Z.
well-established in jurisprudence. In a contract of sale, the title to the property However, Z can recover his losses from the winner because the law provides that
passes to the vendee upon the delivery of the thing sold; in a contract to sell, no action can be maintained by the winner for the collection of what he has won
ownership is, by agreement, reserved in any game of chance. But any loser in a game of chance may recover his loss
Page 109 of 199 from the winner, with legal interests from the time he paid the amount lost (Art.
Civil Law 2014).
in the vendor and is not to pass to the vendee until full payment of the purchase Tess leased her 1,500 sq. m. lot in Antipolo City to Ruth for a period of three (3)
price. Otherwise stated, in a contract of sale, the vendor loses ownership over the years, from January 2010 to February 2013. On March 19, 2011, Tess sent a
property and cannot recover it until and unless the contract is resolved or letter to Ruth, part of which reads as follows:
rescinded; whereas, in a contract to sell, title is retained by the vendor until full "I am offering you to buy the property you are presently leasing at P5,000.00 per
payment of the price. In the latter contract, payment of the price is a positive sq. m. or for a total of P7,500,000.00. You can pay the contract price by
suspensive condition, failure of which 'snot a breach but an event that prevents installment for two (2) years without interest. I will give you a period of one (1)
the obligation of the vendor to convey title from becoming effective (Saberon v. year from receipt of this letter to decide whether you will buy the property."
Ventanilla, Jr., G.R. No. 192669, April 21, 2014). After the expiration of the lease contract, Tess sold the property to her niece for a
In this case, the contract entered between the parties is a contract to sell because total consideration of P4 million. Ruth filed a complaint for the annulment of the
ownership is retained by the vendor and is not to pass to the vendee until full sale, reconveyance and damages against Tess and her niece. Ruth alleged that the
payment of the purchase price. sale of the leased property violated her right to buy under the principle of right of
(b) Did Alice engage in double sale of the property? Explain first refusal. Is the allegation of Ruth tenable? (2014 BAR)
your answer. (4%) (2017 BAR) Page 111 of 199
Civil Law
(b) No, Alice did not engage in double sale. Article 1544 of the Civil Code
contemplates contracts of sale which are absolute sales. The sale to Bernadette,
however, is a conditional sale wherein the condition was not fulfilled. In a NO, the allegation of Ruth is not tenable. The letter written by Tess did not grant
conditional sale, the non-fulfillment of the condition prevents the obligation to a right of first refusal to Ruth. At most, it is to be construed as an option contract
whereby Ruth was given the right to buy or not to buy the leased property. An
option is itself not a purchase but it merely secures the privilege to buy. possession of the property. Nante alleged that the agreement was one to sell,
However, the option is not valid because it was not supported by a cause or which was not consummated as the full contract price was not paid.
consideration distinct from the price of the property (Art. 1479). Also, Ruth does Is the contention of Nante tenable? (2014 BAR)
not appear to have exercised her option before the offer was withdrawn by the
subsequent sale of the property to the niece of Tess.
Lino entered into a contract to sell with Ramon, undertaking to convey to the NO, the contention of Nante is not tenable. The deed itself states that for
latter one of the five lots he owns, without specifying which lot it was, for the consideration received, he sells, transfers, and conveys the land to Monica and
price of P1 million. Later, the parties could not agree which of five lots he owned there was delivery of the property to the latter. The contract is clearly one of sale
Lino undertook to sell to Ramon. What is the standing of the contract? (2011 as there was no reservation of ownership on the part of the seller Nante. The non-
BAR) (A) Unenforceable. (B) Voidable. (C) Rescissible. (D) Void. payment of the price in a contract of sale would only entitle the seller to rescind
Spouses Biong and Linda wanted to sell their house. They found a prospective the contract but it does not thereby prevent the transfer of ownership particularly
buyer, Ray. Linda negotiated with Ray for the sale of the property. They agreed so as in this case, where there was already delivery to the buyer.
on a fair price of P2 Million. Ray sent Linda a letter confirming his intention to Rica petitioned for the annulment of her ten-year old marriage to Richard.
buy the property. Later, another couple, Bemie and Elena, offered a similar house Richard hired Atty. Cruz to represent him in the proceedings. In payment for
at a lower price of PI.5 Million. But Ray insisted on buying the house of Biong Atty. Cruz's acceptance and legal fees, Richard conveyed to Atty. Cruz a parcel
and Linda for sentimental reason. Ray prepared a deed of sale to be signed by the of land in Taguig that he recently purchased with his lotto winnings. The transfer
couple and a manager’s check of P2 Million. documents were duly signed and Atty. Cruz immediately took possession by
After receiving the P2 Million, Biong signed the deed of sale. However, Linda fencing off the property's entire perimeter. Desperately needing money to pay for
was not able to sign it because she was abroad. On her return she refused to sign his mounting legal fees and his other needs and despite the transfer to Atty. Cruz,
the document saying she changed her mind. Linda filed suit for nullification of Richard offered the same parcel of land for sale to the spouses Garcia. After
the deed of sale and for moral and exemplary damages against Ray. inspection of the land, the spouses considered it a good investment and
(1) Will the suit prosper? Explain. 2.5% (2006 Bar Question) purchased it from Richard. Immediately after the sale, the spouses Garcia
commenced the construction of a three-story building over the land, but they
The suit will prosper. The sale was void because Linda did not give her written were prevented from doing this by Atty. Cruz who claimed he has a better right
consent to the sale. In Jader-Manalo v. Camaisa, 374 SCRA 498 (2002), the in light of the prior conveyance in his favor.
Supreme Court has ruled that the sale of conjugal property is void if both spouses Is Atty. Cruz's claim correct? (2013 BAR)
have not given their written consent to it and even if the spouse who did not sign
the Deed of Sale participated in the negotiation of the contract. In Abalos v.
Macatangay, 439 SCRA 649 (2004), the Supreme Court even held that for the NO, Atty. Cruz is not correct. At first glance, it may appear that Atty. Cruz is the
sale to be valid, the signatures of the spouses to signify their written consent one who has a better right because he first took possession of the property.
must be on the same document. In this case, Linda, although she was the one However, a lawyer is prohibited under Art. 1491 of the Civil Code from
who negotiated the sale, did not give her written consent to the sale. Hence, the acquiring the property and rights which may be the object of any litigation in
Page 112 of 199 which they may take part by virtue of their profession. While the suit is for
Civil Law annulment of marriage and it may be argued that the land itself is not the object
sale is void. However, Linda will not be entitled to damages because Ray is not of the litigation, the annulment of marriage, if granted, will carry with it the
in any way in bad faith. liquidation of the absolute community or conjugal partnership of the spouses as
ANOTHER the case may be (Art. 50 in relation to Art. 43, FC). Richard purchased the land
The suit will not prosper because the contract of sale has already been perfected with his lotto winnings during the pendency of the suit for annulment and on the
and partly consummated. The contract of sale is perfected upon the meeting of assumption that the parties are governed by the regime of absolute community or
the minds of the buyer and seller on to the thing to be sold and on the price conjugal partnership,
thereof. In this case, Linda had a meeting of minds with Ray when they agreed Page 114 of 199
that the property will be sold for 2 million pesos at the conclusion of her Civil Law
negotiations with him, while Biong had a meeting of minds with Ray when he winnings from gambling or betting will form part thereof. Also, since the land is
signed the Deed of Sale and accepted the 2 million-peso payment by Ray. Linda part of the absolute community or conjugal partnership of Richard and Rica, it
is estopped from questioning the validity of the contract she herself negotiated may not be sold or alienated without the consent of the latter and any disposition
with Ray. or encumbrance of the property of the community or conjugal property without
(2) Does Ray have any cause of action against Biong and Linda? Can he also the consent of the other spouse is void (Art. 96 and Art. 124, FC).
recover damages from the spouses? Explain. 2.5% (2006 Bar Question) III. Subject Matter Which phrase most accurately completes the statement – If at
the time the contract of sale is perfected, the thing which is the object of the
Yes, Ray has a cause of action against Linda and Biong for the return of the 2 contract has been entirely lost: (2012 BAR) a) the buyer bears the risk of loss. b)
million pesos he paid for the property. He may recover damages from the the contract shall be without any effect. c) the seller bears the risk of loss. d) the
spouses, if it can be proven that they were in bad faith in backing out from the buyer may withdraw from the contract. Can future inheritance be the subject of a
contract, as this is an act contrary to morals and good customs under Articles 19 contract of sale?(2011 BAR) (A) No, since it will put the predecessor at the risk
and 21 of the Civil Code. of harm from a tempted buyer, contrary to public policy. (B) Yes, since the death
ANOTHER of the decedent is certain to occur. (C) No, since the seller owns no inheritance
Assuming that the contract of sale has been perfected, Ray may file a while his predecessor lives. (D) Yes, but on the condition that the amount of the
counterclaim against Linda and Biong for specific performance or rescission, inheritance can only be ascertained after the obligations of the estate have been
with damages in either case. Linda has breached the obligation created by the paid.
contract when she filed an action for nullification of sale. IV. Obligations of the Seller to Transfer Ownership
On account of Linda’s bad faith or fraud, Ray may ask for damages under Article JV, owner of a parcel of land, sold it to PP. But the deed of sale was not
1170 of the Civil Code. registered. One year later, JV sold the parcel again to RR, who succeeded to
II. Parties to a Contract of Sale register the deed and to obtain a transfer certificate of title over the property in
Nante, a registered owner of a parcel of land in Quezon City, sold the property to his own name.
Monica under a deed of sale which reads as follows: Who has a better right over the parcel of land, RR or PP? Why? Explain the legal
"That for and in consideration of the sum of P500,000.00, value to be paid and basis for your answer. (5%) (2004 Bar Question)
delivered to me, and receipt of which shall be acknowledged by me to the full
satisfaction of Monica, referred to as Vendee, I hereby sell, transfer, cede, It depends on whether or not RR is an innocent purchaser for value.
convey, and assign, as by these presents, I do have sold, transferred, ceded, Under the Torrens System, a deed or instrument operated only as a contract
conveyed and assigned a parcel of land covered by TCT No. 2468 in favor of the between the parties and as evidence of authority to the Register of Deeds to make
Vendee." the registration. It is the registration of the deed or the instrument that is the
Page 113 of 199 operative act that conveys or affects the land. (Sec. 51, P.D. No. 1529).
Civil Law In cases of double sale of titled land, it is a well-settled rule that the buyer who
After delivery of the initial payment of P100,000.00, Monica immediately took first registers the sale in good faith acquires a better right to the land. (Art. 1544,
possession of the property. Five (5) months after, Monica failed to pay the Civil Code).
remaining balance of the purchase price. Nante filed an action for the recovery of Page 115 of 199
Civil Law
Persons dealing with property covered by Torrens title are not required to go A contract granting a privilege to a person, for which he has paid a consideration,
beyond what appears on its face. (Orquiola v. CA386, SCRA301, [2002]; which gives him the right to buy certain merchandise or specified property, from
Domingo v. Roces 401 SCRA 197, [2003]). Thus, absent any showing that RR another person, at anytime within the agreed period, at a fixed price. What
knew about, or ought to have known the prior sale of the land to PP or that he contract is being referred to? (2012 BAR) a) Option Contract b) Contract to Sell
acted in bad faith, and being first to register the sale, RR acquired a good and a c) Contract of Sale d) Lease
clean title to the property as against PP. Page 117 of 199
On June 15, 1995, Jesus sold a parcel of registered land to Jaime. On June 30. Civil Law
1995, he sold the same land to Jose. Who has a better right if: VI. Formation of Contract of Sale
a. the first sale is registered ahead of the second sale, with knowledge of the On March 13, 2008, Ariel entered into a Deed of Absolute Sale (DAS) with Noel
latter. Why? (3%) where the former sold his titled lot in Quezon City with an area of three hundred
b. the second sale is registered ahead of the first sale, with knowledge of the (300) square meters to the latter for the price of P300, 000.00. The prevailing
latter? Why? (5%) (2001 Bar Question) market value of the lot was P3, 000.00 per square meter. On March 20, 2008,
they execut- ed another ’’Agreement to Buy Back/Redeem Property” where Ariel
a. The first buyer has the better right if his sale was first to be registered, even was given an option to repurchase the property on or before March 20, 2010 for
though the first buyer knew of the second sale. The fact that he knew of the the same price. Ariel, however, remained in actual possession of the lot. Since
second sale at the time of his registration does not make him as acting in bad Noel did not pay the taxes, Ariel paid the real property taxes to avoid a
faith because the sale to him was ahead in time, hence, has a priority in right. delinquency sale.
What creates bad faith in the case of double sale of land is knowledge of a On March 21, 2010, Ariel sent a letter to Noel, attaching thereto a manager's
previous sale. check for P300, 000.00 manifesting that he is redeeming the property. Noel
b. The first buyer is still to be preferred, where the second sale is registered rejected the redemption claiming that the DAS was a true and valid sale
ahead of the first sale but with knowledge of the latter. This is because the representing the true intent of the parties. Ariel filed a suit for the nullification of
second buyer, who at the time he registered his sale knew that the property had the DAS or the ref- ormation of said agreement to that of a Loan with Real Estate
already been sold to someone else, acted in bad faith. (Article 1544, C.C.) Mortgage. He claims the DAS and the redemption agreement constitute an
V. Price equitable mortgage; Noel however claims it is a valid sale with pacto de retro and
Sergio is the registered owner of a 500-square meter land. His friend, Marcelo, Ariel clearly failed to redeem the property.
who has long been interested in the property, succeeded in persuading Sergio to As the RTC judge, decide the case with reasons. (5%) (2016 BAR)
sell it to him. On June 2, 2012, they agreed on the purchase price of P600,000 l will decide in favor of Ariel and allow the reformation of the agreement. The
and that Sergio would give Marcelo up to June 30, 2012 within which to raise the DAS and the redemption agreement constitute an equitable mortgage and Ariel
amount. Marcelo, in a light tone usual between them, said that they should seal may ask for the reformation of the agreement to that of a Loan with Real Estate
their agreement through a case of Jack Daniels Black and P5,000 "pulutan" Mortgage as allowed by Article 1605 of the Civil Code. The circumstances
money which he immediately handed to Sergio and which the latter accepted. dearly show that that the agreement is an equitable mortgage, such as the: a),
The friends then sat down and drank the first bottle from the case of bourbon. On price of the lot was inade- quate since it was only sold at P300, 000 when the
June 15, 2013, Sergio learned of another buyer, Roberto, who was offering prevailing market value of such was P900, 000; b). the vendor, Ariel, remained
P800,000 in ready cash for the land. When Roberto confirmed that he could pay in actual possession of the property after the purported sale; and c). Ariel was the
in cash as soon as Sergio could get the documentation ready, Sergio decided to one who paid the real property taxes. Under the circumstances, a presumption
withdraw his offer to Marcelo, hoping to just explain matters to his friend. arises under Article 1602 NCC that what was really executed was an equitable
Marcelo, however, objected when the withdrawal was communicated to him, mortgage.
taking the position that they have a firm and binding agreement that Sergio Moreover, Article 1603 NCC provides that in case of doubt, a contract
cannot simply walk away from because he has an option to buy that is duly purporting to be a sale with right to repurchase shall be construed as an equitable
supported by a duly accepted valuable consideration. (2013 BAR) mortgage. Michael Fermin, without the authority of Pascual Lacas, owner of a
Page 116 of 199 car, sold the same car in the name of Mr. Lacas to Atty. Buko. The contract
Civil Law between Atty. Buko and Mr. Lacas is --- (2012 BAR) a) void because of the
a. Does Marcelo have a cause of action against Sergio? absence of consent from the owner, Mr. Lacas. b) valid because all of the
essential requisites of a contract are present. c) unenforceable because Michael
Fermin had no authority but he sold the car in the name of Mr. Lacas, the owner.
YES. Marcelo has a cause of action against Sergio. Under Art. 1324, when the d) rescissible because the contract caused lesion to Atty. Buko. Which of the
offerer has allowed the offeree a certain period to accept, the offer may be following contracts is void? (2012 BAR) a) An oral sale of a parcel of land.
withdrawn at any time before acceptance by communicating such withdrawal, Page 118 of 199
except when the option is founded upon a consideration, as something paid or Civil Law
promised. An accepted unilateral promise to buy or to sell a determinate thing for b) A sale of land by an agent in a public instrument where his authority from the
a price certain is binding upon the promissor if the promise is supported by a principal is oral. c) A donation of a wrist watch worth P 4,500.00. d) A relatively
consideration distinct from the price (Art. 1479). Consideration in an option simulated contract. Aligada orally offered to sell his two-hectare rice land to
contract may be anything of value, unlike in sale where it must be the price Balane for P 10Million. The offer was orally accepted. By agreement, the land
certain in money or its equivalent (San Miguel Properties Inc v. Spouse: Huang, was to be delivered (through execution of a notarized Deed of Sale) and the price
G.R. No. 137290, July 31, 2000). Here, the ease of Jack Daniels Black and the was to be paid exactly one-month from their oral agreement. Which statement is
5,000 “pulutan” money was a consideration to “seal their agreement", an most accurate? (2012 BAR) a) If Aligada refuses to deliver the land on the
agreement that Marcelo is given until June 30, 2012 to buy the parcel of land. agreed date despite payment by Balane, the latter may not successfully sue
There is also no showing that such consideration will be considered part of the Aligada because the contract is oral. b) If Aligada refused to deliver the land,
purchase price. Thus, Sergio‘s unilateral withdrawal of the offer violated the Balane may successfully sue for fulfillment of the obligation even if he has not
Option Contract between him and Marcelo. tendered payment of the purchase price. c) The contract between the parties is
b. Can Sergio claim that whatever they might have agreed upon cannot be rescissible. d) The contract between the parties is subject to ratification by the
enforced because any agreement relating to the sale of real property must be parties. A contract to sell is the same as a conditional contract of sale. Do you
supported by evidence in writing and they never reduced their agreement to agree? Explain your answer. (2012 BAR)
writing?

NO. A contract to sell is specie of conditional sale. The contract to sell does not
NO. Sergio‘s claim has no legal basis. The contract at issue in the present case is sell a thing or property; it sells the right to buy the property. A conditional sale is
the option contract, not the contract of sale for the real property. Therefore, Art. a sale subject to the happening or performance of a condition, such as payment of
I403 does not apply. The Statute of Frauds covers an agreement for the sale of the full purchase price, or the performance of other prestation to give, to do, or
real property or of an interest therein. Such agreement is unenforceable by action, not to do. Compliance with the condition automatically gives the right to the
unless the same, or some note or memorandum, thereof, be in writing (Art. 1403 vendee to demand the delivery of the object of the sale. In a contract to sell,
[e]). Here, Marcelo and Sergio merely entered into an Option Contract, which however, the compliance with the condition does not automatically sell the
refers to a unilateral promise to buy or sell, which need not be in writing to be property to the vendee. It merely gives the vendee the right to compel the vendor
enforceable. (Sanchez v. Rigos, G.R. No. L-25494, June 14, I972, citing Atkins, to execute the deed of absolute sale.
Kroll and Co., Inc. v. Cua Hian Tek and Southwestern Sugar & Molasses Co. v. On July 14, 2004, Pedro executed in favor of Juan a Deed of Absolute Sale over
Atlantic Gulf & Pacific Co.). a parcel of land covered by TCT No. 6245. It appears in the Deed of Sale that
Pedro received from Juan P120,000.00 as purchase price. However, Pedro merely secure the payment of the shortage incurred by Domeng in the conduct of
retained the owner’s duplicate of said title. Thereafter, Juan, as lessor, and Pedro, the cattle-buying operations. Under Art. 1602, the contract shall be presumed to
as lessee, executed a contract of lease over the property for a period of one (1) be an equitable mortgage when it may be fairly inferred that the real intention of
year with a monthly rental of P1,000.00. Pedro, as lessee, was also obligated to the parties is simply to secure the payment of a debt or the performance of any
pay the realty taxes on the property during the period of lease. Subsequently, other obligation. The present transaction was clearly intended to just secure the
Pedro filed a complaint against Juan for the reformation of the Deed of Absolute shortage incurred by Eulalia because Bandong remained in possession of the
Sale, alleging that the transaction covered by the deed was an equitable property in spite of the execution of the sale.
mortgage. In his verified answer to the complaint, Juan alleged that the property VII. Transfer of Ownership
was sold to him under the Deed of Absolute Sale, and interposed counterclaims VIII. Risk of Loss
to recover possession of the property and to compel Pedro to turn over to him the D sold a second-hand car to E for P150,000.00 The agreement between D and E
owner's duplicate of title. was that half of the purchase price, or P75,000.00, shall be paid upon delivery of
Resolve the case with reasons. (6%) (2005 Bar Question) the car to E and the balance of P75,000.00 shall be paid in five equal monthly
Page 119 of 199 installments of P15,000.00 each. The car was delivered to E, and E paid the
Civil Law amount of P75,000.00 to D. Less than one month thereafter, the car was stolen
from E’s garage with no
An equitable mortgage arises from a transaction, regardless of its form, which Page 121 of 199
results into a security, or an offer or attempt to pledge land as security for a debt Civil Law
or liability. Its essence is the intent of the parties to create a mortgage, lien or fault on E’s part and was never recovered. Is E legally bound to pay the said
charge on the property sufficiently described or identified to secure an obligation, unpaid balance of P75,000.00? Explain your answer. (1990 Bar Question)
which intent must be clearly established in order that such a mortgage may exist.
Defendant's defense that he acquired the land through an Absolute Deed of Sale Yes, E is legally bound to pay the balance of P75,000.00. The ownership of the
and not through pacto de retro is untenable. The presumption of equitable car sold was acquired by E from the moment it was delivered to him. Having
mortgage under Article 1602 of the Civil Code, equally applies to a contract acquired ownership, E bears the risk of the loss of the thing under the doctrine of
purporting to be an absolute sale (Article 1604, NCC). The facts and res perit domino. (Articles 1496, 1497, Civil Code).
circumstances that Pedro retained possession of the Owner's Duplicate Copy of IX. Documents of Title
the Certificate of Title; that he remained in possession of the land as lessee; that X. Remedies of an Unpaid Seller
he bound himself to pay the realty taxes during the period of lease, are matters Spouses Macario and Bonifacia Dakila entered into a contract to sell with
collectively and strongly indicating that the Deed of Absolute Sale is an equitable Honorio Cruz over a parcel of industrial land in Valenzuela, Bulacan for a price
mortgage. In case of doubt, the Deed of Sale should be considered as a loan with of Three Million Five Hundred Thousand Pesos (P3,500,000.00). The spouses
mortgage, because this juridical relation involves a lesser transmission of rights would give a downpayment of Five Hundred Thousand Pesos (P500,000.00)
and interests. upon the signing of the contract, while the balance would be paid for the next
If the transaction is proven to be an equitable mortgage, Pedro's prayer for three (3) consecutive months in the amount of One Million Pesos
reformation of the instrument should be granted in accordance with Article 1605 (P1,000,000.00) per month. The spouses paid the first two (2) installments but
of the Civil Code. Thus, in case of non-payment, he may foreclose the mortgage not the last installment. After one (1) year, the spouses offered to pay the unpaid
and consolidate his ownership of the land. In that event, Juan's counterclaim to balance which Honorio refused to accept. The spouses filed a complaint for
recover possession of the land and to compel Pedro to surrender the Owner’s specific performance against Honorio invoking the application of the Maceda
Duplicate Copy of the title becomes a consequential right. Law.
In a true pacto de retro sale, the title and ownership of the property sold are If you are the judge, how will you decide the case? (2014 BAR)
immediately vested in the vendee a retro subject only to the resolutory condition
of repurchase by the vendor a retro within the stipulated period. This is known as
(2011 BAR) (A) equitable mortgage. (B) conventional redemption. (C) legal I will rule in favor of Honorio. The invocation of the Maceda Law is misplaced.
redemption. (D) equity of redemption. The law applies only to sale or financing of realty on installment payments
Arturo gave Richard a receipt which states: including residential units or residential condominium apartments and does not
“Receipt apply to sales of industrial units or industrial lands like in the case presented.
Received from Richard as down payment Another reason why the Maceda law will not apply is that, the sale in the case at
For my 1995 Toyota Corolla with bar is not the sale on installment as contemplated by the law. The sale on
plate No. XYZ-1 23 .............................. installment covered by the Maceda Law is one where the price is paid or
P50.000.00 amortized over a certain period in equal installments. The sale to the Spouses
Balance payable: 12/30/01 ............ Dakila is not a sale on installment but more of a straight sale where a down
P50 000.00 payment is to be made and the balance to be paid in a relatively short period of
Page 120 of 199 three months.
Civil Law XI. Performance of Contract
September 15, 2001. A buyer ordered 5,000 apples from the seller at P20 per apple. The seller
(Sgd.) Arturo delivered 6,000 apples. What are the rights and obligations of the buyer? (2011
Does this receipt evidence a contract to sell? Why? (5%) (2001 Bar Question) BAR) (A) He can accept all 6,000 apples and pay the seller at P20 per apple.
Page 122 of 199
It is a contract of sale because the seller did not reserve ownership until he was Civil Law
fully paid. (B) He can accept all 6,000 apples and pay a lesser price for the 1,000 excess
Eulalia was engaged in the business of buying and selling large cattle. In order to apples. (C) He can keep the 6,000 apples without paying for the 1,000 excess
secure the financial capital, she advanced for her employees (biyaheros). She since the seller delivered them anyway. (D) He can cancel the whole transaction
required them to surrender TCT of their properties and to execute the since the seller violated the terms of their agreement.
corresponding Deeds of Sale in her favor. Domeng Bandong was not required to X sold a parcel of land to Y on 01 January 2002, payment and delivery to be
post any security but when Eulalia discovered that he incurred shortage in cattle made on 01 February 2002. It was stipulated that if payment were not to be made
procurement operation, he was required to execute a Deed of Sale over a parcel by Y on 01 February 2002, the sale between the parties would automatically be
of land in favor of Eulalia. She sold the property to her grand neice Jocelyn who rescinded. Y failed to pay on 01 February 2002, but offered to pay three days
thereafter instituted an action for ejectment against the Spouses Bandong. To later, which payment X refused to accept, claiming that their contract of sale had
assert their right, Spouses Bandong filed an action for annulment of sale against already been rescinded. Is X's contention correct? Why? (2003 Bar Question)
Eulalia and Jocelyn alleging that there was no sale intended but only equitable
mortgage for the purpose of securing the shortage incurred by Domeng in the No, X is not correct. In the sale of immovable property, even though it may have
amount of P 70, 000.00 while employed as "biyahero" by Eulalia. Was the Deed been stipulated, as in this case, that upon failure to pay the price at the time
of Sale between Domeng and Eulalia a contract of sale or an equitable mortgage? agreed upon the rescission of the contract shall of right take place, the vendee
Explain. (2012 BAR) may pay, even after the expiration of the period, as long as no demand for
rescission of the contract has been made upon him either judicially or by a
notarial act (Article 1592, New Civil Code). Since no demand for rescission was
The contract between Domeng Bandong and Eulalia was an equitable mortgage made on Y, either judicially or by a notarial act, X cannot refuse to accept the
rather than a contract of sale. The purported deed of sale was actually intended to payment offered by Y three (3) days after the expiration of the period.
ANOTHER the equal protection of the laws. He ex- plained that an illegitimate child of an
This is a contract to sell and not a contract of absolute sale, since as there has illegitimate parent is al- lowed to inherit under Articles 902, 982 and 990 of the
been no delivery of the land. Article 1592 of the New Civil Code is not Civil Code while he - an illegitimate child of a legitimate father - cannot. Civil
applicable. Instead, Article 1595 of the New Civil Code applies. The seller has Law commentator Arturo Tolentino opined that Article 992 created an absurdity
two alternative remedies: (1) specific performance, or (2) rescission or resolution and committed an injustice because while the illegit- imate descendant of an
under Article 1191 of the New Civil Code. In both remedies, damages are due illegitimate child can represent, the illegit- imate descendant of a legitimate child
because of default. cannot. Decide the case and explain. (5%) (2016 BAR)
ALTERNATIVE Page 125 of 199
Civil Law
Yes, the contract was automatically rescinded upon Y’s failure to pay on 01 I will deny the motion of Tomas, Jr. to be declared as an heir of the deceased.
February 2002. Tomas Jr., being an illegitimate child of the deceased legiti- mate son, Tomas,
By the express terms of the contract, there is no need for X to make a demand in cannot inherit ab intestate from the deceased, Don Ricardo, because of the iron
order for rescission to take place. (Article 1191, New Civil Code; Suria v. IAC, curtain rule under Article 992 of the Civil Code.
151 SCRA 661 [1987]; U.P. v. de los Angeles, 35 SCRA 102 [1970]). Tomas cannot argue that Article 992 is violative of the equal protection clause
XII. Warranties because equal protection simply requires that all persons or things similarly
Knowing that the car had a hidden crack in the engine, X sold it to Y without situated should be treated alike, both as to rights con- ferred and responsibilities
informing the latter about it. In any event, the deed of sale expressly stipulated imposed (Ichong v. Hernandez 101 Phil. 1155 [May 31, 1957]). It, however, does
that X was not liable for hidden defects. Does Y have the right to demand from X not require the universal appli- cation of the laws to all persons or things without
a reimbursement of what he spent to repair the engine plus damages? (2011 distinction. What it simply requires is equality among equals as determined
BAR) according to a valid classification. Indeed, the equal protection clause permits
Page 123 of 199 classification.
Civil Law The attestation clause contains the following, except: (2012 BAR) a) the number
(A) Yes. X is liable whether or not he was aware of the hidden defect. (B) Yes, of pages used; b) that the testator signed or caused another to sign the will and
since the defect was not hidden; X knew of it but he acted in bad faith in not every page thereof in the presence of the instrumental witnesses; c) notary
disclosing the fact to Y. (C) No, because Y is in estoppel, having changed engine public; d) the instrumental witnesses witnessed and signed the will and all the
without prior demand. (D) No, because Y waived the warranty against hidden pages thereof in the presence of the testator and one another. The following are
defects. the formalities required in the execution of holographic will, except: (2012 BAR)
Acme Cannery produced sardines in cans known as "Sards." Mylene bought a a) Entirely written; b) Dated; c) Signed by testator himself d) Notarized by a
can of Sards from a store, ate it, and suffered from poisoning caused by a notary public. The following are the grounds for disallowance of wills, except:
noxious substance found in the sardines. Mylene filed a case for damages against (2012 BAR) a) The formalities required by law have not been complied with. b)
Acme. Which of the following defenses will hold? (2011 BAR) (A) The expiry The testator was insane or mentally incapable of making will. c) The will was
date of the "Sards" was clearly printed on its can, still the store sold and Mylene executed through force or under duress, or influence of fear or threats. d) The
bought it. (B) Mylene must have detected the noxious substance in the sardines will contains an attestation clause. It is the omission in the testator’s will of one,
by smell, yet she still ate it. (C) Acme had no transaction with Mylene; she some or all of the compulsory heirs in direct line, whether living at the time of
bought the "Sards" from a store, not directly from Acme. (D) Acme enjoys the execution of the will or born after the death of the testator. What principle is
presumption of safeness of its canning procedure and Mylene has not overcome being referred to? (2012 BAR) a) reserva troncal b) preterition c)
such presumption. fideicommissary d) disposicion captatoria Any disposition made upon the
A warranty inherent in a contract of sale, whether or not mentioned in it, is condition that the heir shall make some provision in his will in favor of the
known as the (2011 BAR) (A) warranty on quality. (B) warranty against hidden testator or of any other person shall be void. Here, both
defects. (C) warranty against eviction. (D) warranty in merchantability. Page 126 of 199
XIII. Breach of Contract Civil Law
XIV. Extinguishment of the Sale the condition and the disposition are void. What principle is being referred to?
XV. The Subdivision and Condominium Buyers' Protective Decree (P.D. 957) (2012 BAR) a) reserva troncal b) preterition c) fideicommissary d) disposicion
XVI. The Condominium Act (R.A. No. 4726) captatoria Natividad’s holographic will, which had only one (1) substantial
The Ifugao Arms is a condominium project in Baguio City. A strong earthquake provision, as first written, named Rosa as her sole heir. However, when Gregorio
occurred which left huge cracks in the outer walls of the building. As a result, a presented it for probate, it already contained an alteration, naming Gregorio,
number of condominium units were rendered unfit for use. May Edwin, owner of instead of Rosa, as sole heir, but without authentication by Natividad’s signature.
one of the condominium units affected, legally sue for partition by sale of the Rosa opposes the probate alleging such lack of proper authentication. She claims
whole project? Explain. (4%) (2009 Bar Question) that the unaltered form of the will should be given effect. Whose claim should be
granted? Explain. (1996, 2012)
Page 124 of 199
Civil Law
Yes, Edwin may legally sue for partition by sale of the whole condominium It depends. If the cancellation of Rosa's name in the will was done by the testator
project under the following conditions: (a) the damage or destruction caused by himself, Rosa's claim that the holographic will in its original tenor should be
the earthquake has rendered one-half (½) or more of the units therein given effect must be denied. The said cancellation has revoked the entire will as
untenantable, and (b) that the condominium owners holding an aggregate of more nothing remains of the will after the name of Rosa was cancelled. Such
than thirty (30%) percent interest of the common areas are opposed to the cancellation is valid revocation of the will and does not require authentication by
restoration of the condominium project (Section 8[b], Republic Act No. 4726 the full signature of the testator to be effective. However, if the cancellation of
“Condominium Act”). Rosa's name was not done by the testator himself, such cancellation shall not be
SUCCESSION effective and the will in its original tenor shall remain valid. The efficacy of a
I. General Provisions The requisites of succession are as follows, except: (2012 holographic will cannot be left to the mercy of unscrupulous third parties. The
BAR) a) Death of decedent b) Transmissible estate c) Existence and capacity of writing of Gregorio‘s name as sole heir was ineffective, even though written by
successor, designated by decedent or law d) Payment of Taxes The the testator himself, because such is an alteration that requires the authentication
characteristics of succession are as follows, except: (2012 BAR) a) It is a legal by the full signature of the testator to be valid and effective. Not having been
contract. b) Only property, rights and obligations to the extent of the value of the authenticated. The designation of Gregorio as an heir was ineffective. (Kalaw v.
inheritance are transmitted. c) The transmission takes place only at the time of Relova, G.R. No. L-40207, September 28, 1984).
death. d) The transmission takes place either by will or by operation of law. The Crispin died testate and was survived by Alex and Josine, his children from his
following rights are extinguished by death, except: (2012 BAR) a) Legal support first wife; Rene and Ruby, his children from his second wife; and Allan, Bea, and
b) Parental authority c) Right to inherit d) Agency II. Testamentary Succession Cheska, his children from his third wife. One important provision in his will
Don Ricardo had 2 legitimate children - Tomas and Tristan. Tristan has 3 reads as follows: "Ang lupa at bahay sa Lungsod ng Maynila ay ililipat at
children. Meanwhile, Tomas had a relationship with Nancy, who was also single ilalagay sa pangalan nila Alex at Rene hindi bilang pamana ko sa kanila kundi
and had the legal capacity to marry. Nancy became pregnant and gave birth to upang pamahalaan at pangalagaan lamang nila at nang ang sinuman sa aking mga
Tomas, Jr. After the birth of Tomas, Jr., his father, Tomas, died. Later, Don anak, sampu ng aking mga apo at kaapuapuhan ko sa habang panahon, ay may
Ricardo died with- out a will and Tristan opposed the motion of Tomas, Jr. to be tutuluyan kung magnanais na mag-aral sa Maynila o sa kalapit na mga lungsod."
de- clared an heir of the deceased since he is an illegitimate child. Tomas, Jr. Is the provision valid? (2014 BAR)
countered that Article 992 of the Civil Code is unconsti- tutional for violation of
Page 127 of 199 executed their joint will out of mutual love and care, values that the generally
Civil Law accepted principles of international law accepts. (D) Yes, since it is valid in the
NO. The provision imposing the division of the property “habang panahon” is country where it was executed, applying the principle of "lex loci celebrationis."
invalid. In Santiago v. Santiago (G.R. No. 179859, August 9, 2010), a similar John Sagun and Maria Carla Camua, British citizens at birth, acquired Philippine
provision appears in the will. However, Art. 1083 provides that the period of citizenship by naturalization after their marriage. During their marriage, the
indivision imposed by the testator shall not exceed 20 years. Hence, the provision couple acquired substantial landholdings in London and in Makati. Maria begot
leaving the administration of the house and lot to Alex and Rene is valid but the three (3) children, Jorge, Luisito, and Joshur. In one of their trips to London, the
provision “habang buhay” is invalid as to the excess beyond 20 years. couple executed a joint will appointing each other as their heirs and providing
What is the effect of preterition ? (1%) (2014 BAR) that upon the death of the survivor between them, the entire estate would go to
(A) It annuls the devise and legacy Jorge and Luisito only but the two (2) could not dispose of nor divide the London
(B) It annuls the institution of heir estate as long as they live. John and Maria died tragically in the London subway
(C) It reduces the devise and legacy terrorist attack in 2005. Jorge and Luisito filed a petition for probate of their
(D) It partially annuls the institution of heir parents’ will before a Makati RTC. Joshur vehemently objected because he was
preterited. (2000, 2008, 2012) a. Should the will be admitted to probate? Explain.
NO, the will should not be admitted to probate since the couple are both Filipino
Letter B (preterition annuls the institution of heirs) citizens. Arts. 818 and 819 shall apply. Said Articles prohibit the execution of
Which of the following is NOT a basis for rendering a disinheritance defective or joint wills and make them void, even though authorized by the laws of the
imperfect? (2011 BAR) (A) Its cause comes from the guilt of a spouse in a legal country where they were executed. b. Are the testamentary dispositions valid?
separation case, the innocent-spouse having died. (B) The truth of its cause is Explain.
denied and not sufficiently proved by evidence. (C) Its cause is not authorized by NO. Since the joint will is void, all the testamentary dispositions written therein
the law. (D) Its cause is not specified. are also void. However, if the will is valid, the institutions of heirs shall be
Pepito executed a will that he and 3 attesting witnesses signed following the annulled because Joshur was preterited. He was preterited because he will
formalities of law, except that the Notary Public failed to come. Two days later, receive nothing from the will, will receive nothing by intestacy, and the facts do
the Notary Public notarized the will in his law office where all signatories to the not show that he received anything as an advance on his inheritance. He was
will acknowledged that the testator signed the will in the presence of the totally excluded from the inheritance of his parents. c. Is the testamentary
witnesses and that the latter themselves signed the will in the presence of the prohibition against the division of the London estate valid? Explain.
testator and of one another. Was the will validly notarized? (2011 BAR) (A) No, Assuming the will of John and Maria is valid, the testamentary prohibition on
since it was not notarized on the occasion when the signatories affixed their the division of the London estate shall be valid but only for 20 years. A
signatures on the will. (B) Yes, since the Notary Public has to be present only testamentary disposition of the
when the signatories acknowledged the acts required of them in relation to the Page 130 of 199
will. (C) Yes, but the defect in the mere notarization of the will is not fatal to its Civil Law
execution. (D) No, since the notary public did not require the signatories to sign testator cannot forbid the partition of all or part of his estate for a period longer
their respective attestations again. than twenty (20) years (Arts. 1083 and 494).
In his will, the testator designated X as a legatee to receive P2 million for the Mario executed his last will and testament where he acknowledges the child
purpose of buying an ambulance that the residents of his Barangay can use. What being conceived by his live-in partner Josie as his own child; and that his house
kind of institution is this? (2011 BAR) (A) a fideicomissary institution. and lot in Baguio City be given to his unborn conceived child. Are the
Page 128 of 199 acknowledgment and the donation mortis causa valid? Why? (2014 BAR)
Civil Law
(B) a modal institution. (C) a conditional institution. (D) a collective institution.
X owed Y P1.5 million. In his will, X gave Y legacy of P1 million but the will YES, the acknowledgment is considered valid because a will (although not
provided that this legacy is to be set off against the P1.5 million X owed Y. After required to be filed by the notary public) may still constitute a document, which
the set off, X still owed Y P500,000. Can Y still collect this amount? (2011 contains an admission of illegitimate filiation. The recognition of an illegitimate
BAR) (A) Yes, because the designation of Y as legatee created a new and child does not lose its legal effect even though the will wherein it was made
separate juridical relationship between them, that of testator-legatee. (B) It should be revoked (Art. 834). This provision by itself warrants a conclusion that
depends upon the discretion of the probate court if a claim is filed in the testate a will may be considered as proof of filiation. The donation mortis causa may be
proceedings. (C) No, because the intention of the testator in giving the legacy is considered valid because although unborn, a fetus has a presumptive personality
to abrogate his entire obligation to Y. (D) No, because X had no instruction in his for all purposes favorable to it provided it be born under the conditions specified
will to deliver more than the legacy of P1 million to Y. in Art. 41.
Fernando executed a will, prohibiting his wife Marina from remarrying after his Ricky and Arlene are married. They begot Franco during their marriage. Franco
death, at the pain of the legacy of P100 Million in her favor becoming a nullity. had an illicit relationship with Audrey and out of which, they begot Arnel.
But a year after Fernando’s death, Marina was so overwhelmed with love that Franco predeceased Ricky, Arlene and Arnel. Before Ricky died, he executed a
she married another man. Is she entitled to the legacy, the amount of which is will which when submitted to probate was opposed by Arnel on the ground that
well within the capacity of the disposable free portion of Fernando’s estate? (A) he should be given the share of his father, Franco. Is the opposition of Arnel
Yes, since the prohibition against remarrying is absolute, it is deemed not correct? Why? (2012 BAR)
written. (B) Yes, because the prohibition is inhuman and oppressive and violates NO, his opposition is not correct. Arnel cannot inherit from Ricky in
Marina’s rights as a free woman. (C) No, because the nullity of the prohibition representation of his father, Franco. The representative must not only be a legal
also nullifies the legacy. (D) No, since such prohibition is authorized by law and heir of the person he is representing but he must also be a legal heir of the
is not repressive; she could remarry but must give up the money. The testator decedent he seeks to inherit from.
executed a will following the formalities required by the law on succession While Arnel is a legal heir of Franco, he is not a legal heir of Ricky because an
without designating any heir. The only testamentary disposition in the will is the illegitimate child has no right to inherit ab intestato from the legitimate children
recognition of the testator's illegitimate child with a popular actress. Is the will and relatives of his father or mother (Art. 992). Arnel is disqualified to Inherit
valid? (2011 BAR) (A) Yes, since in recognizing his illegitimate child, the from Ricky because Arnel is an illegitimate child of Franco and Ricky is a
testator has made him his heir. (B) No, because the non-designation of heirs legitimate relative of Franco.
defeats the purpose of a will. (C) No, the will comes to life only when the proper How can RJP distribute his estate by will, if his heirs are JCP, his wife; HBR and
heirs are instituted. (D) Yes, the recognition of an illegitimate heir is an ample RVC, his parents; and an illegitimate child, SGO? (2012 BAR)
reason for a will. Ric and Josie, Filipinos, have been sweethearts for 5 years.
While working in a European country where the execution of joint wills are
allowed, the two of them executed a joint holographic will where they named A testator may dispose of by will the free portion of his estate. Since the legitime
each other as sole heir of the other in case either of them dies. Unfortunately, Ric of JCP is 1/8 of the estate, SGO is 1⁄4 of the estate and that of HBR and RVC is
died a year later. Can Josie have the joint will successfully probated in the 1⁄2 of the hereditary estate under Art. 889 of the Civil Code, the remaining 1/8 of
Philippines? (2011 BAR) the estate is the free portion which the testator may dispose of by will.
Page 129 of 199 Page 131 of 199
Civil Law Civil Law
(A) Yes, in the highest interest of comity of nations and to honor the wishes of The capacity of an heir to succeed shall be governed by the: (2012 BAR) a)
the deceased. (B) No, since Philippine law prohibits the execution of joint wills national law of the decedent’s heirs b) law of the country where the decedent was
and such law is binding on Ric and Josie even abroad. (C) Yes, since they
a resident at the time of his death c) national law of the person who died d) law b. Can the joint will produce legal effect in the Philippines with respect to the
of the country where the properties of the decedent are located. properties of Alden and Stela found here? If so, how?
Ramon, a Filipino, executed a will in Manila, where he left his house and located
in BP Homes Parañaque in favor of his Filipino son, Ramgen. Ramon’s other
children RJ and Ramona, both Turkish nationals, are disputing the bequest to YES, the joint will of Alden and Stela can take effect even with respect to the
Ramgen. They plotted to kill Ramgen. Ramon learned of the plot, so he tore his properties located in the Philippines because what governs the distribution of
will in two pieces out of anger. Which statement is most accurate? (2012 BAR) their estate is no longer Philippine law but their national law at the time of their
a) The mere act of Ramon Sr. is immaterial because the will is still readable. b) demise. Hence, the joint will produces legal effect even with respect to the
The mere act of tearing the will amounts to revocation. c) The tearing of the will properties situated in the Philippines.
may amount to revocation if coupled with intent of revoking it. d) The act of c. Is the situation presented in Item I an example of dépeçage?
tearing the will is material.
The will of a Filipino executed in a foreign country --- (2012 BAR) a) cannot be
probated in the Philippines; b) may be probated in the Philippines provided that NO, because dépeçage is a process of applying rules of different states on the
properties in the estate are located in the Philippines; c) cannot be probated basis of the precise issue involved. It is a conflict of laws where different issues
before the death of the testator; d) may be probated in the Philippines provided it within a case may be governed by the laws of different states. In the situation in
was executed in accordance with the laws of the place where the will was letter (a) no conflict of laws will arise because Alden and Stela are no longer
executed. Filipino citizens at the time of the execution of their joint will and the place of
Multiple choice. execution is not the Philippines.
A executed a 5-page notarial will before a notary public and three witnesses. All On December 1, 2000, Dr. Juanito Fuentes executed a holographic will, wherein
of them signed each and every page of the will. he gave nothing to his recognized illegitimate son, Jay. Dr. Fuentes left for the
One of the witnesses was B, the father of one of the legatees to the will. What is United States, passed the New York medical licensure examinations, resided
the effect of B being a witness to the will? (1%) (2010 Bar Question) therein, and became a naturalized American citizen. He died in New York in
1. The will is invalidated 2007. The laws of New York do not recognize holographic wills or compulsory
2. The will is valid and effective heirs.
3. The legacy given to B’s child is not valid [a] Can the holographic will of Dr. Fuentes be admitted to probate in the
Philippines? Why or why not? (3%) (2009 Bar Question)
No. 3. The legacy given to B’s child is not valid.
The validity of the will is not affected by the legacy in favor of the son of an Yes, the holographic will of Dr. Fuentes may be admitted to probate in the
attesting witness to the will. However, the said legacy is void under Article 823 Philippines because there is no public policy violated by such probate. The only
NCC. issue at probate is the due execution of the will which includes the formal
Page 132 of 199 validity of the will. As regards formal validity, the only issue the court will
Civil Law resolve at probate is whether or not the will was executed in accordance with the
ALTERNATIVE form prescribed by the law observed by the testator in the execution of his will.
For purposes of probate in the Philippines, an alien testator may observe the law
No. 2. The will is valid and effective. of the place where the will was executed (Article 17, NCC), or the formalities of
Under Article 823 (NCC), the legacy given in favor of the son of an instrumental the law of the place where he resides, or according to the formalities of the law
witness to a will has no effect on the validity of the will. Hence, the will is valid of his own country, or in accordance with the Philippine Civil Code (Art. 816,
and effective. NCC).Since Dr. Fuentes executed his will in accordance with Philippine law, the
TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the Philippine court shall apply the New Civil Code in determining the formal
statement is false. Explain your answer in not more than two (2) sentences. (5%) validity of the holographic will. The subsequent change in the citizenship of Dr.
xx Fuentes did not affect
In reserva troncal, all reservatarios (reservees) inherit as a class and in equal Page 134 of 199
shares regardless pf their proximity in degree to the prepositus (2009 Bar Civil Law
Question) the law governing the validity of his will. Under the New Civil Code, which was
the law used by Dr. Fuentes, the law in force at the time of execution of the will
FALSE. Not all of the relatives within the third degree will inherit as shall govern the formal validity of the will (Article 795, NCC).
reservatario, and not all of those who are entitled to inherit will inherit in equal Assuming that the will is probated in the Philippines, can Jay validly insist that
shares. The applicable laws of intestate succession will determine who among the he be given his legitime? Why or why not? (3%) (2009 Bar Question)
relatives will inherit as reservatarios and what shares they will take, i.e., the
direct line excludes the collateral, the descending direct line excludes the No, Jay cannot insist because under New York law he is not a compulsory heir
ascending, the nearer excludes the more remote, the nephews and nieces exclude entitled to a legitime.
the uncles and the aunts, and half blood relatives inherit half the share of full- The national law of the testator determines who his heirs are, the order that they
blood relatives. succeed, how much their successional rights are, and whether or not a
Alden and Stela were both former Filipino citizens. They were married in the testamentary disposition in his will is valid (Article 16, NCC). Since, Dr. Fuentes
Philippines but they later migrated to the United States where they were was a US citizen, the laws of New York determines who his heirs are. And since
naturalized as American citizens. In their union they were able to accumulate New York law does not recognize the concept of compulsory heirs, Jay is not a
several real properties both in the US and in the Philippines. Unfortunately, they compulsory heir of Dr. Fuentes entitled to a legitime.
were not blessed with children. In the US, they executed a joint will instituting as III. Legal or Intestate Succession
their common heirs to divide their combined estate in equal shares, the five Pedro had worked for 1$ years in Saudi Arabia when he finally decided to
siblings of Alden and the seven siblings of Stela. Alden passed away in 2013 and engage in farming in his home province where his 10-hectare farmland valued at
a year later, Stela also died. The siblings of Alden who were all citizens of the P2,000,000 was located. He had already P3,000,000 savings from his long stint
US instituted probate proceedings in a US court impleading the siblings of Stela in Saudi Arabia. Eagerly awaiting Pedro's arrival at the NAIA were his aging
who were all in the Philippines. (2015 BAR) parents
a. Was the joint will executed by Alden and Stela who were both former Modesto and Jacinta, his common-law spouse Veneranda, their three children,
Filipinos valid? Explain with legal basis. and Alex, his child by Carol, his departed legal wife. Sadly for all of them, Pedro
suffered a stroke because of his over-excitement just as the plane was about to
YES, the joint will of Alden and Stela is valid. Being no longer Filipino citizens land, and died without seeing any of them. The farmland and the savings were all
at the time they executed their joint will, the prohibition under our Civil Code on the properties he left.
joint wills will no longer apply to Alden and Stela. For as long as their will was (a) State who are Pedro's legal heirs, and the shares of each
executed in accordance with the law of the place where they reside, or the law of legal heir to the estate? Explain your answer. (4%) (2017 BAR)
the country of which they are citizens
Page 133 of 199 Pedro's legal heirs areAlex, who is his legitimate child by his deceased wife
Civil Law (Article 979, NCC), and his three children by Veneranda, who are his illegitimate
or even in accordance with the Civil Code, a will executed by an alien is children (Article 873, NCC). Modesto and Jacinta, his parents, are excluded by
considered valid in the Philippines. (Art. 816) Alex, his legitimate child. Veneranda, as a common-law spouse, is not among
Pedro's legal heirs. Assuming that
the farmland and savings are the exclusive properties of Pedro, Pedro's estate are the successional rights of the boy Bert and Joe raised as their son? (2015
amounts to P5,000,000. Alex is entitled to one-half of Pedro's estate, amounting BAR)
to P2,500,000, while three illegitimate children divide the remaining one-half The boy has no successional rights. Since Bert died without a will, intestate
equally, such that each will receive P833,333.33. succession shall apply. While the boy is the son of Bert’s living brother, and
Page 135 of 199 hence is Bert’s nephew, he cannot inherit from Bert as a legal heir since he is
Civil Law excluded by his father under the proximity rule (Art. 962). He cannot invoke the
(b) Assuming that Pedro's will is discovered soon after his rights of an adopted child to inherit from Bert since the boy was not legally
funeral. In the will, he disposed of half of his estate in favor of Veneranda, adopted. A mere ward or “ampon” has no right to inherit from the adopting
and the other half in favor of his children and his parents in equal shares. parents (Manuel v. Ferrer, G.R. No. 117246, August 21, 1995).
Assuming also that the will is admitted to probate by the proper court. Are Page 137 of 199
the testamentary dispositions valid and effective under the law on succession? Civil Law
Explain your answer. (4%) (2017 BAR) c. If Bert and Joe had decided in the early years of their cohabitation to jointly
adopt the boy, would they have been legally allowed to do so? Explain with legal
(b) The testamentary dispositions are invalid insofar as they impair the legitimes basis.
of Pedro's compulsory heirs. Pedro's compulsory heirs are Alex and his three NO, Bert and Joe could not have jointly adopted the boy. Under the Domestic
illegitimate children (Article 887, NCC). Alex, as Pedro's sole legitimate child, is Adoption Act, joint adoption is permitted, and in certain cases mandated, for
entitled to a legitime to one-half of his father's estate, amounting to P2,500,000 spouses. Here, Bert and Joe are not spouses.
(Article 888, NCC). The three illegitimate children of Pedro are theoretically Esteban and Martha had four (4) children: Rolando, Jun, Mark, and Hector.
entitled to a legitime equal to one-half of the legitime of Alex, amounting to Rolando had a daughter, Edith, while Mark had a son, Philip. After the death of
P1,250,000 each or P3,750,000 total, but as this exceeds the balance of the estate Esteban and Martha, their three (3) parcels of land were adjudicated to Jun. After
amounting to P2,500,000, the latter amount must be divided equally among the the death of Jun, the properties passed to his surviving spouse Anita, and son
three, amounting to P833,333.33 each. The other testamentary dispositions to Cesar. When Anita died, her share went to her son Cesar. Ten (10) years after,
Veneranda and Pedro's parents, may not be given effect, as there is nothing le(t Cesar died intestate without any issue. Peachy, Anita’s sister, adjudicated to
of the estate to distribute. herself the properties as the only surviving heir of Anita and Cesar. Edith and
[Note: If the farmland and the NM savings were acquired during the cohabitation Philip would like to recover the properties claiming that they should have been
of Pedro and Veneranda, these are owned in common by both of them (Art. 147, reserved by Peachy in their behalf and must now revert back to them.
Family Code). One-half of the P5M belongs to Veneranda as her share in the co- Is the contention of Edith and Philip valid? (2014 BAR)
ownership]
Princess married Roberto and bore a son, Onofre. Roberto died in a plane crash.
Princess later married Mark and they also had a son - Pepito. Onofre donated to NO, the contention is not valid. The property adjudicated to Jun from the estate
Pepito, his half-brother, a lot in Makati City worth P3, 000,000.00. Pepito of his parents which he in turn left to Anita and Cesar is not subject to
succumbed to an illness and died intestate. The lot given to Pepito by Onofre was reservation in favor of Edith and Philip. In Mendoza et. al. v. Policarpio, et. al.
inherited by his father, Mark. Mark also died intestate. Lonely, Princess followed (G.R. No. 176422, March 20 2013) the court ruled that lineal character of the
Mark to the life beyond. The claimants to the subject lot emerged - Jojo, the reservable property is reckoned from the ascendant from whom the propositus
father of Princess; Victor, the father of Mark; and Jerico, the father of Roberto. received the property by gratuitous title. The ownership should be reckoned only
Who among the three (3) ascendants is entitled to the lot? Explain. (5%) (2016 from Jun, as he is the ascendant from where the first transmission occurred or
BAR) from whom Cesar inherited the properties. Moreover, Art. 891 provides that the
person obliged to reserve the property should be an ascendant. Peachy is not
Jojo, Princess’s father, is entitled to the lot. Cesar’s ascendant but a mere collateral relative. On the assumption that the
This is a clear case of reserva troncaL The Origin is Onofre. The Prepositus is property is reservable, Edith and Philip being first cousins of Cesar who is the
Pepito. The mode of transmission from Onofre to Pepito is donation (hence, by propositus are disqualified to be reservatarios as they are not third degree
gratuitous title). The Reservista is Mark, who acquired it from his descendant relatives of Cesar.
(son) Pepito by legitime and intestacy (hence, by operation of law). On March 30, 2000, Mariano died intestate and was survived by his wife,
The Reservatario is Princess, a relative of the Prepositus Pepito within the third Leonora, and children, Danilo and Carlito. One of the properties he left was a
degree and who belonged to the line of origin (the maternal line). Line of origin piece of land in Alabang where he built his residential house.
is the maternal line because Onofre (the Origin) and Pepito (the Prepositus) are After his burial, Leonora and Mariano’s children extrajudicially settled his estate.
maternal half-blood siblings. Thereafter, Leonora and Danilo advised Carlito of their intention to partition the
Page 136 of 199 property. Carlito opposed invoking Article 159 of the Family Code. Carlito
Civil Law alleged that since his minor child Lucas still resides in the premises, the family
When Mark (Reservista) died, the property passed to Princess as sole home continues until that minor beneficiary becomes of age.
reservatario^ thus extinguishing the reserva troncaL Upon Princess’s death, the Page 138 of 199
property was transmitted ah intestato to her father Jojo. Transmission to Jojo is Civil Law
by the ordinary rules of compulsory and intes- tate succession, not by reserva Is the contention of Carlito tenable? (2014 BAR)
troncaL because the reserva was ex- tinguished upon the transmission of the
property to Princess, this mak- ing Princess the absolute owner subject to no
reserva. In the order of intestate succession where the decedent is legitimate, who NO, the contention of Carlito is not tenable. To qualify as beneficiary of the
is the last intestate heirs or heir who will inherit if all heirs in the higher level are family home, the person must be among those mentioned in Art. 154, he/she
disqualified or unable to inherit? (2011 BAR) (A) Nephews and nieces. (B) must be actually living in the family home and must be dependent for legal
Brothers and sisters. (C) State. (D) Other collateral relatives up to the 5th degree support upon the head of the family (Patricio v. Dario, G.R. No. 170829,
of consanguinity. November 20, 2006). While Lucas, the son of Carlito satisfies the first and
Bert and Joe, both male and single, lived together as common law spouses and second requisites, he cannot however, directly claim legal support from his
agreed to raise a son of Bert's living brother as their child without legally grandmother, Leonora because the person primarily obliged to give support to
adopting him. Bert worked while Joe took care of their home and the boy. In Lucas is his father, Carlito. Thus, partition may be successfully claimed by
their 20 years of cohabitation they were able to acquire real estate assets Leonora and Danilo.
registered in their names as co-owners. Unfortunately, Bert died of cardiac arrest, Armand died intestate. His full-blood brothers, Bobby and Conrad, and half-
leaving no will. Bert was survived by his biological siblings, Joe, and the boy. blood brothers, Danny, Edward and Floro, all predeceased him. The following
a. Can Article 147 on co-ownership apply to Bert and Joe, whereby all properties are the surviving relatives: (2013 BAR)
they acquired will be presumed to have been acquired by their joint industry and 1. Benny and Bonnie, legitimate children of Bobby;
shall be owned by them in equal shares? 2. Cesar, legitimate child of Conrad;
3. Dante, illegitimate child of Danny;
4. Ernie, adopted child of Edward; and
No, Article 147 cannot apply to Bert and Joe because the law only applies to a 5. Felix, grandson of Floro.
man and a woman who are capacitated to marry each other who live together as The net value of Armand's estate is P 1,200,000. (2012 BAR)
husband and wife without the benefit of marriage or under a void marriage. In 1) How much do Benny and Bonnie stand to inherit by right of representation?
the case of Bert and Joe, they are both men so the law does not apply. b. What (1%)
(A) P200,000
(B) P300,000 If the judgment of nullity was for other causes, the three children are illegitimate
(C) P400,000 and the estate shall be distributed such that an illegitimate child of the first
(D) P150,000 marriage shall receive half the share of a legitimate child of the second marriage,
(E) None of the above. and the second wife will inherit a share equal to that of a legitimate child. In no
case may the two legitimate children of the second marriage receive a share less
than one-half of the estate which is their legitime. When the estate is not
E - In intestate succession if all the brothers and sisters of the decedent sufficient to pay all the legitimes of the compulsory heirs, the legitime of the
predeceased the latter, the nephews and nieces inherit in their own right or per spouse is preferred and the illegitimate children will suffer the reduction.
capita and not by right of representation. (See Article 975) Computation:
2) How much is Dante's share in the net estate? (1%) A. If the ground of nullity is psychological incapacity:
(A) P150,000. 3 children by first marriage ------------------ 1/6th of the estate for each
(B) P200,000. 2 children by second marriage -------------- 1/6th of the estate for each
(C) P300,000. Surviving second spouse --------------------- 1/6th of the estate
(D) P400,000. Page 141 of 199
(E) None of the above. Civil Law
Page 139 of 199 B. If the ground of nullity is not psychological incapacity
Civil Law 2 legitimate children --------------------------- 1/4 of the estate for each of second
marriage
Surviving second spouse ---------------------1/4 of the estate
E- Dante will not inherit because his is an illegitimate child of a legitimate half- 3 illegitimate children -------------------------- 1/12 of estate for each of first
brother of Armand thus the barrier applies. marriage
3) How much is Ernie's share in the net estate. (1%) Note: The legitime of an illegitimate child is supposed to be Yu the legitime of a
(A) P 0. legitimate child or 1/ 8th of the estate. But the estate will not be sufficient to pay
(B) P400,000. the said legitimes of the 3 illegitimate children, because only Y* of the estate is
(C) P150,000. left after paying the legitime of the surviving spouse which is preferred. Hence,
(D) P200,000. the remaining Y* of the estate shall be divided among the 3 illegitimate children.
(E) None of the above. What is the effect of the receipt by Peter’s 3 children by his first marriage of their
presumptive legitimes on their right to inherit following Peter’s death? (5%)
(2010 Bar Question)
A - Ernie will not inherit because being an adopted child of Edward, he cannot
inherit from the relatives of the latter as the adoption creates only a relationship In the distribution of Peter’s estate, one-half of the presumptive legitime received
between adopter and adopted. (Sayson v. CA 205 SCRA 321) by the three children of the first marriage shall be collated to Peter’s estate and
4) How much is Felix's share in the net estate? (1%) shall be imputed as an advance on their respective inheritance from Peter. Only
(A) P400,000. half of the presumptive legitime is collated to the estate of Peter because the
(B) P150,000. other half shall be collated to the estate of his first wife.
(C) P300,000. Dr. Lopez, a 70-year old widower, and his son Roberto both died in a fire that
(D) P0. gutted their home while they were sleeping in their air-conditioned rooms.
(E) None of the above. Roberto’s wife, Marilyn, and their two children were spared because they were in
the province at the time. Dr. Lopez left an estate worth P20M and a life insurance
policy in the amount of P1M with his three children --- one of whom is Roberto
D – Felix is not entitled to inherit because the right of representation in the --- as beneficiaries.
collateral line is only available to nephews and nieces of the decedent and not to Marilyn is now claiming for herself and her children her husband’s share in the
grandnephews or grandnieces. estate left by Dr. Lopez, and her husband’s share in the proceeds of Dr. Lopez’s
The decedent died intestate leaving an estate of P10 million. He left the life insurance policy. Rule on the validity of Marilyn’s claims with reasons. (4%)
following heirs: a) Marlon, a legitimate child and b) Cecilia, the legal spouse. (2009 Bar Question)
Divide the estate. (2011 BAR) (A) Marlon gets 1/4 and Cecilia gets 3/4. (B)
Marlon gets 2/3 and Cecilia 1/3. (C) Marlon gets 1/2 and Cecilia gets 1/2. (D) As to the Estate of Dr. Lopez:
Marlon gets 3/4 and Cecilia 1/4. Marilyn is not entitled to a share in the estate of Dr. Lopez. For purposes of
A court declared Ricardo, an old bachelor, an absentee and appointed Cicero succession, Dr. Lopez and his son Roberto are presumed to have died at the same
administrator of his property. After a year, it was discovered that Ricardo had time, there being no evidence to prove otherwise, and there shall be no
died abroad. What is the effect of the fact of his death on the administration of transmission of rights from one to the other (Article 43, NCC). Hence, Roberto
his property? (2011 BAR) inherited nothing from his father that Marilyn would in turn inherit from
Page 140 of 199 Roberto. The children of Roberto, however, will succeed their grandfather, Dr.
Civil Law Lopez, in representation of their father Roberto and together will receive
(A) With Ricardo no longer an absentee but a deceased person, Cicero will cease Page 142 of 199
to be administrator of his properties. (B) The administration shall be given by the Civil Law
court having jurisdiction over the intestate proceedings to a new administrator 1/3 of the estate of Dr. Lopez since their father Roberto was one of the three
whom it will appoint. (C) Cicero automatically becomes administrator of children of Dr. Lopez. Marilyn cannot represent her husband Roberto because
Ricardo’s estate until judicially relieved. (D) Cicero’s alienations of Ricardo's the right is not given by law to a surviving spouse.
property will be set aside. As to the proceeds of the insurance on the life of Dr. Lopez:
The spouses Peter and Paula had three (3) children. Paula later obtained a Since succession is not involved as regards the insurance is not involved as
judgment of nullity of marriage. Their absolute community of property having regular the insurance contract, the provisions of the Rules of Court (Rule 131,
been dissolved, they delivered PI million to each of their 3 children as their Sec. 3, [jj] [5]) on survivorship shall apply. Under Rules, Dr. Lopez, who was 70
presumptive legitimes. years old, is presumed to have died ahead of Roberto, who is presumably
Peter later re-married and had two (2) children by his second wife Marie. Peter between the ages of 15 and 60. Having survived the insured, Roberto’s right as a
and Marie, having successfully engaged in business, acquired real properties. beneficiary became vested upon the death of Dr. Lopez. When Roberto died after
Peter later died intestate. Dr. upon the death of Dr. Lopez. When Roberto died after Dr. Lopez, his right to
Who are Peter’s legal heirs and how will his estate be divided among them? (5%) receive the insurance proceeds became part of his hereditary estate, which in turn
(2010 Bar Question) was inherited in equal shares by his legal heirs, namely, his spouse and children.
Therefore,
The legal heirs of Peter are his children by the first and second marriages and his Roberto’s children and his spouse are entitled to Roberto’s one-third share in the
surviving second wife. insurance proceeds.
Their shares in the estate of Peter will depend, however, on the cause of the Ramon Mayaman died intestate, leaving a net estate of P10,000,000.00.
nullity of the first marriage. If the nullity of the first marriage was psychological Determine how much each heir will receive : from the estate:
incapacity of one or both spouses, the three children of that void marriage are
legitimate and all of the legal heirs shall share the estate of Peter in equal shares.
If Ramon is survived by his wife, three full-blood brothers, two half-brothers, did not leave a will, if the house and lot constituted their family home, Article
and one nephew (the son of a deceased full-blood brother)? Explain. (3%) (2009 159 of the Family Code prohibits its partition for a period often (10) yeans, or for
Bar Question) long as there is a minor beneficiary living in the family home.
Four children, namely: Alberto, Baldomero, Caridad, and Dioscoro, were born to
Having died intestate, the estate of Ramon shall be inherited by his wife and his the spouses Conrado and Clarita de la Costa. The children’s birth certificates
full and half-blood siblings or their respective representatives. In intestacy, if the were duly signed by Conrado, showing them to be the couple’s legitimate
wife concurs with no one but the siblings of the husband, all of them are the children.
intestate heirs of the deceased husband. The wife will receive half of the intestate Later, one Edilberto de la Cruz executed a notarial document acknowledging
estate, while the siblings or their respective representatives, will inherit the other Alberto and Baldomero as his illegitimate children with Clarita. Edilberto died
half to be divided among them equally. If some siblings are of the full-blood and leaving substantial properties. In the settlement of his estate, Alberto and
the others of the half blood, a half blood sibling will receive half the share of Baldomero intervened claiming shares as the deceased’s illegitimate children.
full-blood sibling. The legitimate family of Edilberto opposed the claim.
1. The wife of Ramon will, therefore, receive one half of the estate or the amount Are Alberto and Baldomero entitled to share in the estate of Edilberto? Explain.
of P5,000.000.00, (4%) (2009 Bar Question)
2. The three (3) full-blood brothers, will, therefore, receive PI,000,000.00 each.
3. The nephew will receive PI,000,000.00 by right of representation. Page 145 of 199
4. The two (2) half-brothers will receive P500,000.00 each. Civil Law
If Ramon is survived by his wife, a half-sister, and three nephews (sons of a No, Alberto and Baldomero are not entitled to share in Edilberto’s estate. They
deceased full-blood brother)? Explain. (3%) (2009 Bar Question) are not related at all to Edilberto. They were born during the marriage of
Conrado and Clarita, hence, are considered legitimate children of the said
Page 143 of 199 spouses. This status is conferred on them at birth by law.
Civil Law Under Philippine law, a person cannot have more than one natural filiation. The
The wife will receive one half of the estate or P5,000,000.00. The other half shall legitimate filiation of a person can be changed only if the legitimate father will
be inherited by (1) the full-blood brother, represented by his 3 children, and (2) successfully impugn such status.
the half- sister. They will divide that other half between them such that the share In the problem, therefore, the filiation of Alberto and Baldomero as the
of the half -sister is just half the share of the full-blood brother. The share of the legitimate children of Conrado cannot be changed by their recognition by
full-blood brother shall in turn be inherited by the three (3) nephews in equal Edilberto as his illegitimate children. Before they can be conferred the status of
shares by right of representation. Edilberto’s illegitimate children, Conrado must first impugn their legitimacy.
Therefore, the three (3) nephews will receive P1,111,111.10 each and the half- Since Conrado has not initiated any action to impugn their legitimacy, they
sister will receive the sum of PI,666,666.60. continue to be the legitimate children of Conrado. They cannot be the illegitimate
IV. Provisions Common to Testate and Intestate Succession children of Edilberto at the same time. Not being the illegitimate children of
Joanne married James, a person with no known relatives. Through James' hard Edilberto, they have no right to inherit from him.
work, he and his wife Joane prospered. When James died, his estate alone PARTNERSHIP
amounted to P100 million. If, in his will, James designates Joanne as his only I. Contract of Partnership
heir, what will be the free portion of his estate. (2011 BAR) (A) Joanne gets all; Timothy executed a Memorandum of Agreement (MOA) with Kristopher setting
estate has no free portion left. (B) Joanne gets 1/2; the other half is free portion. up a business venture covering three (3) fastfood stores known as "Hungry
(C) Joanne gets 1/3; the remaining 2/3 is free portion. (D) Joanne gets 1/4; the Toppings" that will be established at Mall Uno, Mall Dos, and Mall Tres.
remaining 3/4 is free portion. T died intestate, leaving an estate of P9,000,000. The pertinent provisions of the MOA provides:
He left as heirs three legitimate children, namely, A, B, and C. A has two 1. Timothy shall be considered a partner with thirty percent (30%) share in all of
children, D and E. Before he died, A irrevocably repudiated his inheritance from the stores to be set up by Kristopher;
T in a public instrument filed with the court. How much, if any, will D and E, as 2. The proceeds of the business, after deducting expenses, shall be used to pay
A’s children, get from T’s estate? (2011 BAR) (A) Each of D and E will get the principal amount of P500,000.00 and the interest therein which is to be
P1,500,000 by right of representation since their father repudiated his computed based on the bank rate, representing the bank loan secured by
inheritance. (B) Each of D and E will get P2,225,000 because they will inherit Timothy;
from the estate equally with B and C. (C) D and E will get none because of the 3. The net profits, if any, after deducting the expenses and payments of the
repudiation; "B" and "C" will get A’s share by right of accretion. (D) Each of D principal and interest shall be divided as follows: seventy percent (70%) for
and E will get P2,000,000 because the law gives them some advantage due to the Kristopher and thirty percent (30%) for Timothy;
demise of "A". ML inherited from his father P5 million in legitime but he waived 4. Kristopher shall have a free hand in running the business without any
it in a public instrument in favor of his sister QY who accepted the waiver in interference from Timothy, his agents, representatives, or assigns , and should
writing. But as it happened, ML borrowed P6 million from PF before the waiver. such interference happen, Kristopher has the right to buy back the share of
PF objected to the waiver and filed an action for its rescission on the ground that Timothy less the amounts already paid on the principal and to dissolve the MOA;
he had the right to ML’s P5 million legitime as partial settlement of what ML and
owed him since ML has proved to be insolvent. Does PF, as creditor, have the 5. Kristopher shall submit his monthly sales report in connection with the
right to rescind the waiver? (2011 BAR) business to Timothy.
Page 144 of 199 What is the contractual relationship between Timothy and Kristopher? (2014
Civil Law BAR)
(A) No, because the waiver in favor of his sister QY amounts to a donation and Page 146 of 199
she already accepted it. (B) Yes, because the waiver is prejudicial to the interest Civil Law
of a third person whose interest is recognized by law. (C) No, PF must wait for
ML to become solvent and, thereafter, sue him for the unpaid loan. (D) Yes,
because a legitime cannot be waived in favor of a specific heir; it must be The contractual relationship between Timothy and Kristopher is a contract of
divided among all the other heirs. partnership (Art. 1767) since they have bound themselves to contribute money,
True or False. property or industry to a common fund, with the intention of dividing the profits
X, a widower, died leaving a will stating that the house and lot where he lived of the partnership among themselves. With a seed money of P500, 000.00
cannot be partitioned for as long as the youngest of his four children desires to obtained by Timothy through a bank loan, they agreed to divide the profits, 70%
stay there. As coheirs and co-owners, the other three may demand partition for Kristopher and 30% for Timothy.
anytime. (1%) (2010 Bar Question) However, to be more specific, theirs is a limited partnership (Art. 1843) because
Timothy does not take part in the control of the business pursuant to Art. 1848.
FALSE. Nevertheless, Timothy is entitled to monthly sales reports in connection with the
The other three co- heirs may not at any time demand the partition of the house business, a right enshrined in Art. 1851 of the Civil Code.
and lot since it was expressly provided by the decedent in his will that the same In 2005, L, M, N, 0 and P formed a partnership. L, M and N were capitalist
cannot be partitioned while his youngest child desires to stay there. Article partners who contributed P500,000 each, while 0, a limited partner, contributed
1083of the New Civil Code allows a decedent to prohibit, by will, the partition of P1 ,000,000. P joined as an industrial partner, contributing only his services. The
a property in his estate for a period not longer than 20 years no matter what his Articles of Partnership, registered with the Securities and Exchange Commission,
reason may be. Hence, the three co-heirs cannot' demand its partition at anytime designated L and 0 as managing partners; L was liable only to the extent of his
but only after 20 years from the death of their father. Even if the deceased parent capital contribution; and P was not liable for losses.
In 2006, the partnership earned a net profit of P800,000. In the same year, P said property signed by the parties must be attached to said public instrument
engaged in a different business with the consent of all the partners. However, in (Art. 1773, NCC.).
2007, the partnership incurred a net loss of P500,000. In 2008,the partners ANOTHER
dissolved the partnership. The proceeds of the sale of partnership assets were TRUE. Partnership is a consensual contract, hence, it is valid even though not in
insufficient to settle its obligation. After liquidation, the partnership had an writing. The oral contract of partnership is also valid even if an immovable
unpaid liability ofP300,000. (2013 BAR) property or real right is contributed thereto. While the law in such a case,
1) Assuming that the just and equitable share of the industrial partner, P, in the requires the partnership to be in a public document, the law does not expressly
profit in 2006 amounted to P1 00,000, how much is the share of 0, a limited declare the contract void if not executed in the required form (Article 1409[7],
partner, in the P800,000 net profit? (1%) (2012 BAR) NCC). And there being nothing in the law from which it can be inferred that the
(A) P160,000. said requirement is prohibitory or mandatory (Article 5, NCC), the said oral
(B) P175,000. contract of partnership must also be valid. The interested party may simply
(C) P280,000. require the contract to be made into a public document in order to comply with
(D) P200,000. the required form (Article 1357, NCC). The purpose of the law in requiring a
(E) None of the above. public document is simply to notify the public about the contribution.
II. Rights and Obligations of Partnership
III. Rights and Obligations of Partners Among Themselves
C – P280,000. Since after deducting the P100k share of P there remains P700k, A, B, and C entered into a partnership to operate a restaurant business. When the
the three partners L, M, N will each have 1 share and O will have two shares restaurant had gone past break-even stage and started to gamer considerable
(2:1) three shares plus two shares, the balance of P700k will be divided by 5 profits, C died. A and B continued the business without dissolving the
which will yield the result of P140k multiplied by 2 (for O) partnership. They in fact opened a branch of the restaurant, incurring obligations
2) In 2007, how much is the share of 0, a limited partner, in the net loss of in the process. Creditors started demanding for the payment of their obligations.
P500,000? (1%) (2012 BAR) Page 149 of 199
Page 147 of 199 Civil Law
Civil Law Who are liable for the settlement of the partnership’s obligations? Explain? (3%)
(A) P 0. (2010 Bar Question)
(B) P1 00,000.
(C) P125,000. The two remaining partners, A and B, are liable. When any partner dies and the
(D) P200,000. business is continued without any settlement of accounts as between him or his
(E) None of the above. estate, the surviving partners are held liable for continuing the business despite
the death of C (Articles 1841, 1785, par. 2, and 1833 of the New Civil Code).
IV. Obligations of Partnership/Partners to Third Persons
D - Article 1797 share in profits and losses is proportionate to contribution The liability of the partners, including industrial partners for partnership
3) Can the partnership creditors hold L, 0 and Pliable after all the assets of the contracts entered into in its name and for its account, when all partnership assets
partnership are exhausted? (1%) (2012 BAR) have been exhausted is (2011 BAR) (A) Pro-rata. (B) Joint. (C) Solidary. (D)
(A) Yes. The stipulation exempting P from losses is valid only among the Voluntary.
partners. L is liable because the agreement limiting his liability to his capital A, B, and C entered into a partnership to operate a restaurant business. When the
contribution is not valid insofar as the creditors are concerned. Having taken part restaurant had gone past break-even stage and started to gamer considerable
in the management of the partnership, 0 is liable as capitalist partner. profits, C died. A and B continued the business without dissolving the
(B) No. P is not liable because there is a valid stipulation exempting him from partnership. They in fact opened a branch of the restaurant, incurring obligations
losses. Since the other partners allowed him to engage in an outside business in the process. Creditors started demanding for the payment of their obligations.
activity, the stipulation absolving P from liability is valid. For 0, it is basic that a xxx
limited partner is liable only up to the extent of his capital contribution. B. What are the creditors’ recourse/s? Explain. (3%) (2010 Bar Question)
(C) Yes. The stipulations exempting P and L from losses are not binding upon
the creditors. 0 is likewise liable because the partnership was not formed in Creditors can file the appropriate actions, for instance, an action for the
accordance with the requirements of a limited partnership. collection of sum of money against the “partnership at will” and if there are no
(D) No. The Civil Code allows the partners to stipulate that a partner shall not be sufficient funds, the creditors may go after the private properties of Aand B
liable for losses. The registration of the Articles of Partnership embodying such (Article 1816,New Civil Code). Creditors may also sue the estate of C. The estate
stipulations serves as constructive notice to the partnership creditors.(E) None of is not excused from the liabilities of the partnership even if C is dead already but
the above is completely accurate. only up to the time that he remained a partner (Article 1829, 1835, par. 2; NCC,
Testate Estate of Mota v. Serra, 47 Phil. 464 [1925]). However, the liability of
C’s individual property shall be subject first to the payment of his separate debts
A – Article 1799 a stipulation which excludes one or more partners from any (Article 1835,New Civil Code).
share in profits and losses is void. P, industrial partner may be exempt but that is V. Dissolution
only with respect to the partners but not the creditors. O, by taking part in the A, B, and C entered into a partnership to operate a restaurant business. When the
management even if he is a limited partner becomes liable as a general partner restaurant had gone past break-even stage and started to gamer considerable
(Article 1848) profits, C died. A and B continued the business without dissolving the
A partner cannot demand the return of his share (contribution) during the partnership.
existence of a partnership. Do you agree? Explain your answer. (2012 BAR) Page 150 of 199
Civil Law
Page 148 of 199 They in fact opened a branch of the restaurant, incurring obligations in the
Civil Law process. Creditors started demanding for the payment of their obligations.
YES I agree, he is not entitled to the return of his contribution to the capital of Who are liable for the settlement of the partnership’s obligations? Explain? (3%)
the partnership, but only to the net profits from the partnership business during (2010 Bar Question)
the life of the partnership period. If he is a limited partner, however, he may ask
for the return of his contributions as provided in Arts. 1856 and 1857. The two remaining partners, A and B, are liable. When any partner dies and the
TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the business is continued without any settlement of accounts as between him or his
statement is false. Explain your answer in not more than two (2) sentences. (5%) estate, the surviving partners are held liable for continuing the business despite
x x x [c] An oral partnership is valid. (2009 Bar Question) the death of C (Articles 1841, 1785, par. 2, and 1833 of the New Civil Code).
What are the creditors’ recourse/s? Explain. (3%) (2010 Bar Question)
TRUE. Partnership is a consensual contract, hence, it is valid even though not in
writing. Creditors can file the appropriate actions, for instance, an action for the
ANOTHER collection of sum of money against the “partnership at will” and if there are no
TRUE. An oral contract of partnership is valid even though not in writing. sufficient funds, the creditors may go after the private properties of A and B
However, if it involves contribution of an immovable property or a real right, an (Article 1816, New Civil Code). Creditors may also sue the estate of C. The
oral contract of partnership is void. In such a case, the contract of partnership to estate is not excused from the liabilities of the partnership even if C is dead
be valid, must be in a public instrument (Art. 1771, NCC), and the inventory of already but only up to the time that he remained a partner (Article 1829, 1835,
par. 2; NCC, Testate Estate of Mota v. Serra, 47 Phil. 464 [1925]). However, the
liability of C’s individual property shall be subject first to the payment of his Under the facts, B-1 has a better right to the land. Given the fact that the Deed of
separate debts (Article 1835, New Civil Code). Sale in favor of B-1 and B- 2 are not inscribed in the Registry of Deeds, the case
VI. Limited Partnership is governed by Article 1544 of the New Civil Code which provides that in case
AGENCY of double sales of an immovable property, the ownership shall pertain to the
I. Definition of Agency person who in good faith was first in possession and in the absence thereof to the
II. Powers person who presents the oldest title, provided there is good faith.
An agent, authorized by a special power of attorney to sell a land belonging to In a case, the Supreme Court has held that in a sale of real estate the execution of
the principal succeeded in selling the same to a buyer according to the a notarial document of sale is tantamount to delivery of the possession of the
instructions given the agent. The agent executed the deed of absolute sale on property sold. Ownership of the land therefore pertains to the lmt buyer. It may
behalf of his principal two days after the principal died, an event that neither the also be mentioned that under Act 3344 no instruments or deed establishing,
agent nor the buyer knew at the time of the sale. What is the standing of the sale? transmitting, acknowledging, modifying, or extinguishing right to real property
(2011 BAR) (A) Voidable. (B) Valid. (C) Void. (D) Unenforceable. not registered under Act 496 shall be valid between the parties. Thus, the Deed of
III. Express vs. Implied Agency Sale of B-2 has no binding effect on B-1.
Page 151 of 199 VIII. Agency by Operation of Law
Civil Law IX. Rights and Obligations of Principal
IV. Agency by Estoppel Page 153 of 199
V. General vs. Special Agency Civil Law
VI. Agency Couched in General Terms X. Irrevocable Agency
VII. Agency Requiring Special Power of Attorney A lawyer was given an authority by means of a Special Power of Attorney by his
Fe, Esperanza, and Caridad inherited from their parents a 500 sq. m. lot which client to sell a parcel of land for the amount of P3 Million. Since the client owed
they leased to Maria for three (3) years. One year after, Fe, claiming to have the the lawyer Pl Million in attorney's fees in a prior case he handled, the client
authority to represent her siblings Esperanza and Caridad, offered to sell the agreed that if the property is sold, the lawyer was entitled to get 5% agent's fee
leased property to Maria which the latter accepted. The sale was not reduced into plus Pl Million as payment for his unpaid attorney's fees. The client, however,
writing, but Maria started to make partial payments to Fe, which the latter subsequently found a buyer of his own who was willing to buy the property for a
received and acknowledged. After giving the full payment, Maria demanded for higher amount. Can the client unilaterally rescind the authority he gave in favor
the execution of a deed of absolute sale which Esperanza and Caridad refused to of his lawyer? Why or why not? (2015 BAR)
do. Worst, Maria learned that the siblings sold the same property to Manuel. This
compelled Maria to file a complaint for the annulment of the sale with specific
performance and damages. NO, the agency in the case presented is one which is coupled with an interest. As
If you are the judge, how will you decide the case? (2014 BAR) a rule, agency is revocable at will except if it was established for the common
benefit of the agent and the principal. In this case, the interest of the lawyer is not
merely limited to his commission for the sale of the property but extends to his
I will dismiss the case for annulment of the sale and specific performance filed right to collect his unpaid professional fees. Hence, it is not revocable at will
by Maria with respect to the shares pertaining to Esperanza and Caridad. Since (Art.1927).
the object of the sale is a co-owned property, a co-owner may sell his undivided Joe Miguel, a well-known treasure hunter in Mindanao, executed a Special
share or interest in the property owned in common but the sale will be subject to Power of Attorney (SPA) appointing his nephew, John Paul, as his attorney-in-
the result of the partition among the co-owners. In a co-ownership there is no fact. John Paul was given the power to deal with treasure-hunting activities on
mutual agency except as provided under Art. 487. Thus, Fe cannot sell the shares Joe Miguel’s land and to file charges against those who may enter it without the
of Esperanza and Caridad without a special power of attorney from them and the latter’s authority. Joe Miguel agreed to give John Paul forty percent (40%) of the
sale with respect to the shares of the latter without their written authority is void treasure that may be found on the land. Thereafter, John Paul filed a case for
under Art.1874. Hence, the sale of the property to Manuel is not valid with damages and injunction against Lilo for illegally entering Joe Miguel’s land.
respect to the shares of Esperanza and Caridad. Maria can only assail the portion Subsequently, he hired the legal services of Atty. Audrey agreeing to give the
pertaining to Fe as the same has been validly sold to her by Fe. latter thirty percent (30%) of Joe Miguel’s share in whatever treasure that may be
X, who was abroad, phoned his brother, Y, authorizing him to sell X’s parcel of found in the land. Dissatisfied however with the strategies implemented by John
land in Pasay. X sent the title to Y by courier service. Acting for his brother, Y Paul, Joe Miguel unilaterally revoked the SPA granted to John Paul. Is the
executed a notarized deed of absolute sale of the land to Z after receiving revocation proper? (2014 BAR)
payment. What is the status of the sale? (2011 BAR) (A) Valid, since a notarized
deed of absolute sale covered the transaction and full payment was made. (B)
Void, since X should have authorized agent Y in writing to sell the land. (C) NO, the revocation was not proper. As a rule, a contract of agency may be
Valid, since Y was truly his brother X’s agent and entrusted with the title needed revoked by the principal at will. However, an agency ceases to be revocable at
to effect the sale. (D) Valid, since the buyer could file an action to compel X to will if it is coupled with an interest or if it is a means of fulfilling an obligation
execute a deed of sale. already contracted (Art. 1927). In the case at bar, the agency may be deemed an
Page 152 of 199 agency coupled with an interest not only because of the fact that John Paul
Civil Law expects to receive 40% of whatever treasure may be found but also because he
X was the owner of an unregistered parcel of land in Cabanatuan City. As she also contracted the services of a lawyer pursuant to his mandate under the
was abroad, she advised her sister Y via overseas call to sell the land and sign a contract of agency and he therefore stands to be liable to the lawyer whose
contract of sale on her behalf. services he has contracted. (Sevilla v. Tourist World Service, G.R. No. L-41182-
Y thus sold the land to B1 on March 31, 2001 and executed a deed of absolute 3 April 16, 1988)
sale on behalf of X. B1 fully paid the purchase price. XI. Modes of Extinguishment
B2, unaware of the sale of the land to B1, signified to Y his interest to buy it but Page 154 of 199
asked Y for her authority from X. Without informing X that she had sold the land Civil Law
to B1, Y sought X for a written authority to sell. COMPROMISE
X e-mailed Y an authority to sell the land. Y thereafter sold the land on May 1, I. Definition
2001 to B2 on monthly installment basis for two years, the first installment to be II. Void Compromise
paid at the end of May 2001. Who between B1 and B2 has a better right over the I. TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the
land? Explain. (5%) statement is false. Explain your answer in not more than two (2) sentences. (5%)
(2010 Bar Question) a. x x x
b. A clause in an arbitration contract granting one of the parties the power to
B-2 has a better title. This is not a case of double sale since the first sale was choose more arbitrators than the other renders the arbitration contract void. (2009
void. The law provides that when a sale of a piece of land or any interest therein Bar Question)
is through an agent, the authority of the latter shall be in writing; otherwise, the
sale shall be void (Article 1874,New Civil Code). The property was sold by Y to True. The Civil Code provides that “Any clause giving one of the parties power
B1 without any written authority from the owner X. Hence, the sale to B1 was to choose more arbitrators than the other is void and of no effect” (Art. 2045,
void. NCC).
ALTERNATIVE III. Effect
CREDIT TRANSACTIONS 1) After the bar exams, Cruz asked for the return of his car. Jose said he would
I. Loan return it as soon as Cruz has reimbursed him for the car maintenance and
Distinguish commodatutn from mutuum. (3%) (2017 BAR) repainting costs of P 18,000.
Is Jose's refusal justified? (1%)
(1) In commodalum, the creditor or bailor delivers to the debtor or bailee (A) No, Jose's refusal is not justified. In this kind of contract, Jose is obliged to
consumable or non-consumable property so that the latter may use the same for a pay for all the expenses incurred for the preservation of the thing loaned.
certain time and must return the same thing (Article 1933, NCC). (B) Yes, Jose's refusal is justified. He is obliged to pay forall the ordinary and
(2) Inmutuum, the creditor delivers to the debtor money or other consumable extraordinary expenses, but subject to reimbursement from Cruz.
thing upon the condition that the same amount of the same kind and quality is (C) Yes, Jose's refusal is justified. The principle of unjust enrichment warrants
paid (Article 1933, NCC). the reimbursement of Jose's expenses.
(3) The subject matter of commodalum maybe a movableor immovable thing, (D) No, Jose's refusal is not justified. The expenses he incurred are useful for the
which is ordinarily non-consumable (if the thing borrowed is consumable, it is preservation of the thing loaned. It is Jose's obligation to shoulder these useful
merely for display or exhibition), while the subject matter of mutuum is either expenses.
money or consumable.
(4) Commodatum is essentially gratuitous, while nuctuum may be gratuitous or
with a stipulation to pay interest. NO CORRECT CHOICE – in commodatum, the bailee has no right of retention
(5) In commodatum, there is no transmission of ownership of the thing borrowed Article 1944 the bailee (Jose) has no right of retention even if it may be by
then while in mutuum, the borrower acquires ownership of the thing loaned. reason of expenses, Article 1951 he can only retain if he suffers damage by
(6) In commodatum, the same thing borrowed is required to be returned while in reason of a flaw or defect in the thing
mutuum, the borrower discharges his obligation not by returning the identical Page 157 of 199
thing Civil Law
Page 155 of 199 2) During the bar exam month, Jose lent the car to his girlfriend, Jolie, who
Civil Law parked the car at the Mall of Asia's open parking lot, with the ignition key inside
loaned, but by paying its equivalent in kind, quality, and quantity. the car. Car thieves broke into and took the car.
[Note: It is suggested that any three (3) of the above should merit full points]. Is Jose liable to Cruz for the loss of the car due to Jolie's negligence? (1%) (2012
The borrower in a contract of loan or mutuum must pay interest to the lender. a) BAR)
If there is an agreement in writing to the effect. (2012 BAR) b) As a matter of (A) No, Jose is not liable to Cruz as the loss was not due to his fault or
course. c) If the amount borrowed is very large. d) If the lender so demands at the negligence.
maturity date. Siga-an granted a loan to Villanueva in the amount of P 540, (B) No, Jose is not liable to Cruz. In the absence of any prohibition, Jose could
000.00. Such agreement was not reduced to writing. Siga-an demanded interest lend the car to Jolie. Since the loss was due to force majeure, neither Jose nor
which was paid by Villanueva in cash and checks. The total amount Villanueva Jolie is liable.
paid accumulated to P 1, 200, 000.00. Upon advice of her lawyer, Villanueva (C) Yes, Jose is liable to Cruz. Since Jose lent the car to Jolie without Cruz's
demanded for the return of the excess amount of P 660, 000.00 which was consent, Jose must bear the consequent loss of the car.
ignored by Siga-an. (2012 BAR) a. Is the payment of interest valid? Explain. (D) Yes, Jose is liable to Cruz. The contract between them is personal in nature.
Jose can neither lend nor lease the car to a third person.

NO. Art. 1956, provides that "no interest shall be due unless it has been expressly
stipulated in writing". b. Is solutio indebiti applicable? Explain. D – Commodatum is purely personal in nature (Article 1939) the bailee can
neither lend nor lease the object of the contract to a third person.
II. Deposit
YES. Under Art. 1960, if the borrower pays interest when there has been no Due to the continuous heavy rainfall, the major streets in Manila became flooded.
stipulation thereof, the provisions of the Civil Code concerning solutio indebiti This compelled Cris to check-in at Square One Hotel. As soon as Crisgot off
shall be applied. Villanueva paid in excess of P660.000 representing interest from his Toyota Altis, the Hotel’s parking attendant got the key of his car and
payment which is not due. Therefore, he can demand its return. gave him a valet parking customer’s claim stub. The attendant parked his car at
Sarah had a deposit in a savings account with Filipino Universal Bank in the the basement of the hotel. Early in the morning, Cris was informed by the hotel
amount of five Million pesos (P5,000,000.00). To buy a new car, she obtained a manager that his car was carnapped. (2014 BAR)
loan from the same bank in the amount of P1,200,000.00, payable in twelve a. What contract, if any, was perfected between Cris and the Hotel when Cris
monthly installments. Sarah issued in favor of the bank in post-dated checks, surrendered the key of his car to the Hotel’s parking attendant?
each in the amount of P100,000.00 to cover the twelve monthly installment
payments. On the third, fourth and fifth months, the corresponding checks
bounced. The contract between Cris and Square One Hotel is one of necessary deposit.
The bank then declared the whole obligation due, and proceed to deduct the Deposit of effects made by travelers or guests in hotels or inns is considered a
amount of one million pesos (P1,000,000.00) from Sarah's deposit after notice to necessary deposit (Art. 1998). This includes not only the personal effects brought
her that this is a form of compensation allowed by law. Is the bank correct? inside the hotel premises but also vehicles or animals and articles which have
Explain. (4%) (2009 Bar Question) been introduced or placed in the annexes of the hotel.
b. What is the liability, if any, of the Hotel for the loss of Cris’ car?
Page 156 of 199
Civil Law
No the bank is not correct, while the Bank is correct about the applicability of Page 158 of 199
compensation, it was not correct as to the amount compensated. Civil Law
A bank deposit is a contract of loan, where the depositor is the creditor and the In the case of Durban Apartments v. Pioneer Insurance (G.R. No. 179419
bank the debtor. Since Sarah is also the debtor of the bank with respect to the January 12, 2011), the Supreme Court held the hotel liable for the loss of the
loan, both are mutually principal debtors and creditors of each other. Both vehicle of the guest after its valet parking attendant parked the vehicle in front of
obligations are due, demandable and liquidated but only up to the extent of a bank near the hotel premises. The court ruled that the bank’s parking area
P300,000 (covering the unpaid third, fourth and fifth monthly installments). The became an annex of the hotel when the management of the bank allowed the
entire one million was not yet due because the loan has no acceleration clause in hotel to park vehicles there on the night in question. The contract of deposit was
case of default. And since there is no retention or controversy commenced by perfected when the guest surrendered the keys to his vehicle to the parking
third persons and communicated in due time to the debtor, then all the requisites attendant and the hotel is under obligation of safely keeping and returning it.
of legal compensation are present but only up to the amount of P300,000. The Ultimately, Square One Hotel is liable for the loss of the vehicle.
bank, therefore, may deduct P300,000 pesos from Sarah's bank deposit by way of Who enjoys the Right of Retention? (1%) (A) Depositary until full payment of
compensation. what may be due him in deposit. (B) Lessee if he advances the expenses for the
Cruz lent Jose his car until Jose finished his Bar exams. Soon after Cruz repair of the leased premises. (C) Bailee if bailor owes him something. (D)
delivered the car, Jose brought it to Mitsubishi Cubao for maintenance check up Builder in bad faith for the recovery of necessary and useful expenses.
and incurred costs of P8,000. Seeing the car's peeling and faded paint, Jose also
had the car repainted for P10,000. Answer the two questions below based on
these common facts. (2013 BAR) Letter A – depositary (Article 1994)
III. Guaranty and Suretyship
Kevin signed a loan agreement with ABC Bank. To secure payment, Kevin
requested his girlfriend Roselle to execute a document entitled "Continuing One example of a pledge created by operation of law is the right of the
Guaranty Agreement" whereby she expressly agreed to be solidarily liable for the depositary to retain the thing deposited until the depositor shall have paid him
obligation of Kevin. Can ABC Bank proceed directly against Rosetta upon whatever may be due to the depositary by reason of the deposit (Art. 1994).
Kevin's default even without proceeding against Kevin first? Explain your Another is the right of the agent to retain the thing which is the object of the
answer. (3%) (2017 BAR) agency until the principal reimburses him the expenses incurred in the execution
of the agency. (Art. 1914)
Yes. Despite the designation of the contract as a "Continuing Guaranty Ozamis Paper Corporation secured loans from ABC Universal Bank in the
Agreement," the terms of the document prevail. Rosella expressly agreed to be aggregate principal amount of P100 M, evidenced by several promissory notes,
solidarily liable for obligation of Kevin. According to par. 2, Article 2047 of the and secured by a continuing guaranty of its principal stockholder Menandro
New Civil Code, if a person binds himself solidarity with the principal debtor, Marquez; a pledge of Marquez’s shares in the corporation valued at P45 M; and a
the contract is called a suretyship. A real estate mortgage over certain parcels of land owned by Marquez.
surety is under a direct and primary obligation to the creditor and may be The corporation defaulted and the bank extra-judicially foreclosed on the real
proceeded against in case the principal debtor does not pay as he is an insurer of estate mortgage. The bank, which was the sole bidder for P75 M, won the award.
the debt. Only a guarantor, an insurer of the principal debtor's solvency, enjoys xxx
the benefit of exeussion. Can the bank foreclose on the pledged shares of Marquez and recover the
[Note: It is the panel's recommendation that due credit should also be given to deficiency from the corporation? (2010 Bar Question)
examinees who answered that suretyship being an accessory contract, the
principal debtor should be an indispensable party to the action against the If the bank forecloses the pledge, it cannot recover the deficiency because the
surety]. foreclosure extinguishes the principal obligation, whether or not the proceeds
Define, Enumerate or Explain. (2% each) from the foreclosure are equal to the amount of the principal obligation.
What is the difference between “guaranty” and “suretyship”? (2010 Bar Page 161 of 199
Question) Civil Law
Page 159 of 199 Rosario obtained a loan of P100,000.00 from Jennifer, and pledge her diamond
Civil Law ring. The contract signed by the parties stipulated and if Rosario is unable to
redeem the ring on due date, she will execute a document in favor of Jennifer
Guaranty and Suretyship distinguished: providing that the ring shall automatically be considered full payment of the
a. The obligation in guaranty is secondary; whereas, in suretyship, it is primary. loan.
b. In guaranty, the undertaking is to pay if the principal debtor cannot pay; Is the contract valid? Explain. (3%) (2009 Bar Question)
whereas, in suretyship, the undertaking is to pay if the principal debtor does not
pay. The contract is valid because Rosario has to execute a document in favor of
c. In guaranty, the guarantor is entitled to the benefit of excussion; whereas, in Jennifer to transfer the ownership of the pledged ring to the latter. The contract
suretyship the surety is not so entitled. does not amount to a pactum commissorium because it does not provide for the
d. Liability in guaranty depends upon an independent agreement to pay the automatic appropriation by the pledge of the thing pledged in case of default by
obligations of the principal if he fails to do so; whereas, in suretyship, the surety the pledgor.
assumes liability as a regular party. Will your answer to [a] be the same if the contract stipulates that upon failure of
e. The Guarantor insures the solvency of the principal debtor; whereas, the surety Rosario to redeem the ring on due date, Jennifer may immediately sell the ring
insures the debt. and appropriate the entire proceeds thereof for herself as full payment of the?
f. In a guaranty, the guarantor is subsidiarily liable; whereas, in a Suretyship, the Reasons. (3%) (2009 Bar Question)
surety binds himself solidarily with the principal debtor. (Art. 2047, Civil Code)
TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the No, my answer will be different. While the contract of pledge is valid, the
statement is false. Explain your answer in not more than two (2) sentences. (5%) stipulation authorizing the pledge to immediately sell the thing pledged is void
xxx under Article 2088 of the new
[d] An oral promise of guaranty is valid and binding. (2009 Bar Question) Civil Code which provides that: “the creditor cannot appropriate the things given
by way of pledge or mortgage, or dispose of them x xx”. Jennifer cannot
FALSE. An oral contract of guaranty, being a special promise to answer for the immediately sell by herself the thing pledge.
debt of another, is unenforceable unless in writing (Article 1403 [2] b, NCC). It must be foreclosed by selling it at a public auction in accordance with the
ANOTHER procedure under Article 2112 of the New Civil Code.
TRUE. An oral promise of guaranty is valid and binding. While the contract is V. Real Mortgage
valid, however, it is unenforceable because it is not in writing. Being a special Ellen entrusted her title over the lot where she is residing to Patrick, her nephew,
promise to answer for the debt, default, or miscarriage of another, the Statute of for safekeeping because of her poor eyesight. Patrick, a gambler, prepared a
Frauds requires it to be in writing to be enforceable (Article 1403 [2] b, NCC). Special Power of Attorney empowering him to mortgage the lot. Ellen's signature
The validity of a contract should be distinguished from its enforceability. was forged. With the help of Julia who represented herself as Ellen, Mega Bank
IV. Pledge granted a loan to Patrick secured by a mortgage on Ellen's lot. Due to non-
Donna pledged a set of diamond ring and earrings to Jane for P200,000.00 She payment, Mega Bank foreclosed the mortgage and was declared the highest
was made to sign an agreement that if she cannot pay her debt within six months, bidder. Title was later regis- tered in the name of the bank. When Ellen was
Jane could immediately appropriate the jewelry for herself. After six months, notified that she should vacate the premises, she filed a complaint to nullify the
Donna failed to pay. Jane then displayed the earrings and ring set in her jewelry loan with mortgage, the auction sale and the title of Mega Bank on the ground
shop located in a mall. A buyer, Juana, bought the jewelry set for P300,000.00. that the bank is not a mortgagee in good faith. Decide the case with reasons.
(2015 BAR) (5%)
Page 160 of 199 (2016 BAR)
Civil Law Page 162 of 199
a. Was the agreement which Donna signed with Jane valid? Explain with legal Civil Law
basis.
I will decide in favor of Ellen. Banks, their business being impressed with public
interest, are expected to exercise more care and prudence than private individuals
NO, the agreement to appropriate the jewelry upon default of Donna is in their dealings, even those involv- ing registered lands. The highest degree of
considered pactum commissorium and it is considered void by law ( Art. 2088). diligence is expected, and high standards of integrity and performance are even
b. Can Donna redeem the jewelry set from Juana by paying the amount she owed required of it.
Jane to Juana? Explain with legal basis. A mortgagee - usually, can rely on what appears on the cer- tificate of title
presented by the mortgagor and an innocent mortgagee is not expected to
conduct an exhaustive investigation on the history of the mortgagor’s title. This
NO, Donna cannot redeem it from Juana because the pledge contract is between rule is, however, strictly applied against banking institutions. Mega Bank cannot
her and Jane. Juana is not a party to the pledge contract (Art. 1311) be considered a mortgagee in good faith as it failed to inspect the disputed
c. Give an example of a pledge created by operation of law.
property when offered to it as security for the loan, which could have led it to
discover the forged Special Power of Attorney.
Mr. Bong owns several properties in Pasig City. He decided to build a Ferdie’s refusal is justified. A check, whether a manager’s check or ordinary
condominium named Flores de Manila in one of his lots. To fund the project, he check, is not legal tender, and an offer of a check in payment of a debt is not a
obtained a loan from the National Bank (NB) secured by a real estate mortgage valid tender if payment
over the adjoining property which he also owned. During construction, he built Page 164 of 199
three (3) pumps on the mortgaged property to supply water to the condominium. Civil Law
After one (1) year, the project was completed and the condominium was turned and may be refused receipt by the obligee or creditors (Philippine Airlines v. CA
over to the buyers. However, Mr. Bong failed to pay his loan obligation to NB. and Amelia Tan, GR. No. L-49188, January 30, 1990). Mere delivery of checks
Thus, NB foreclosed the mortgaged property where the pumps were installed. does not discharge the obligation under a judgment. A check shall produce the
During the sale on public auction of the mortgaged property, Mr. Simon won in effect of payment only when they have been cashed or when through the fault of
the bidding. When Mr. Simon attempted to take possession of the property, the the creditor, they have been impaired (Art. 1249). However, it is not necessary
condominium owners, who in the meantime constituted themselves into Flores that the right of redemption be exercised by delivery of legal tender. A check
de Manila Inc. (FMI), claimed that they have earlier filed a case for the may be used for the exercise of right of redemption, the same being a right and
declaration of the existence of an easement before the Regional Trial Court not an obligation. The tender of a check is sufficient to compel redemption but is
(RTC) of Pasig City and prayed that the easement be annotated in the title of the not in itself a payment that relieves the redemptioner from his liability to pay the
property foreclosed by NB. FMI further claimed that when Mr. Bong installed redemption price (Bianca v. Gimenez, G.R. No. 132768, September 9, 2005,
the pumps in his adjoining property, a voluntary easement was constituted in citing Fortunado v. CA). Redemption within the period allowed by law is not a
favor of FMI. matter of intent but a question of payment of valid tender of full redemption price
Will the action prosper? (2014 BAR) within the said period. Whether the redemption is being made under Act 3135 or
under the General Banking Law, the mortgagor or his assignee is required to
tender payment to make said redemption valid (Heirs of Quisumbing v. PNB and
NO, the action will not prosper. The essence of a mortgage is that it immediately SLDC, GR. No. 178242, January 20, 2009). Moreover, Ferdie's refusal was
subjects the property upon which it is imposed, and whoever the possessor may justified on the ground that the amount tendered does not include interest. In
be, to the fulfillment of the obligation for whose security it was constituted (Art. order to effect the redemption of the foreclosed property, the payment to the
2126). There was no voluntary easement in this case because at the time the purchaser must include the following sums: (a) the bid price; (b) the interest on
water pumps were constructed, the subject lot where the water pumps were the bid price, computed at one per centum (1%) per month; and (c) the
constructed and the condominium belong to the same person. No one can have an assessments or taxes, if any, paid by the purchaser, with the same rate of interest
easement over his own property (Bogo- Medellin v. CA G.R. 124699, July 31, (Sec. 28, Rules of Court). Unless there is an express stipulation to that effect, the
2003). Even of the assumption that an easement was created in favor of FMI, that creditor cannot be compelled to receive partial payment of the prestation (Art.
alone will not defeat the right of the mortgagee to enforce the security if the 1248).
debtor defaults. Amador obtained a loan of P300,000 from Basilio payable on March25, 2012. As
Page 163 of 199 security for the payment of his loan, Amador constituted a mortgage on his
Civil Law residential house and lot in Basilio's favor. Cacho, a good friend of Amador,
Lito obtained a loan of P1,000,000 from Ferdie, payable within one year. To guaranteed and obligated himself to pay Basilio, in case Amador fails to pay his
secure payment, Lito executed a chattel mortgage on a Toyota Avanza and a real loan at maturity. (2013 BAR)
estate mortgage on a 200-square meter piece of property. (2013 BAR) 1) If Amador fails to pay Basilio his loan on March 25, 2012, can Basilio compel
a. Would it be legally significant - from the point of view of validity and Cacho to pay? (1%)
enforceability - if the loan and the mortgages were in public or private (A) No, Basilio cannot compel Cacho to pay because as guarantor, Cacho can
instruments? invoke the principle of excussion, i.e., all the assets of Basilio must first be
exhausted.
(B) No, Basilio cannot compel Cacho to pay because Basilio has not exhausted
From the point of view of validity and enforceability, there would be legal the available remedies against Amador.
significance if the mortgage was in public or private instrument. As for the loan, (C) Yes, Basilio can compel Cacho to pay because the nature of Cacho's
there is no legal significance except if interest were charged on the loan, in which undertaking indicates that he has bound himself solidarily with Amador.
case the charging of interest must be in writing. A contract of loan is a real (D) Yes, Basilio can compel Cacho who bound himself to unconditionally pay in
contract and is perfected upon the delivery of the object of the obligation (Art. case Amador fails to pay; thus the benefit of excussion will not apply.
1914). Thus, a contract of loan is valid and enforceable even if it is neither in a
private nor in a public document. As a rule, contracts shall he obligatory in
whatever form they may have been entered into provided all the essential Page 165 of 199
requisites for their validity are present. With regard to its enforceability, a Civil Law
contract of loan is not among those enumerated under Art. 1403 (2), which are B – Basilio has in his favor a REM and he should exhaust his legal remedies
covered by the Statute of Frauds. It is important to note that under Art. 1358, all against Amador. (Art. 2058)
other contracts where the amount involved exceeds five hundred pesos must 2) If Amador sells his residential house and lot to Diego, can Basilio foreclose
appear in writing, even a private one. However, the requirement is not for the the real estate mortgage? (1%)
validity of the contract, but only for its greater efficacy. With regard the chattel (A) Yes, Basilio can foreclose the real estate mortgage because real estate
mortgage, Act No. 1508, the Chattel Mortgage Law, requires an affidavit of good mortgage creates a real right that attaches to the property.
faith stating that the chattel mortgage is supposed to stand as security for the (B) Yes, Basilio can foreclose the real estate mortgage. It is binding upon Diego
loan; thus, for validity of the chattel mortgage, it must be in a public document as the mortgage is embodied in a public instrument.
and recorded in the Chattel Mortgage Register in the Registry of Deeds. A real (C) No, Basilio cannot foreclose the real estate mortgage. The sale confers
estate mortgage under the provisions of Art. 2125 requires that in order that a ownership on the buyer, Diego, who must therefore consent.
mortgage may be validly constituted the document in which it appears be (D) No, Basilio cannot foreclose the real estate mortgage. To deprive the new
recorded. If the instrument is not recorded, the mortgage is nevertheless valid and owner of ownership and possession is unjustand inequitable.
binding between the parties. Hence, for validity of both chattel and real estate
mortgages, they must appear in a public instrument. But for purposes of
enforceability, it is submitted that the form of the contract, whether in a public or A- Art. 2126 The mortgage directly and immediately subjects the property upon
private document, would be immaterial (Mobil Oil v. Diocares, G.R. No. L- which it is imposed, whoever the possessor may be to the fulfillment of the
26371, September 30, 1969). Also, under Art. 1358, acts and contracts which obligation for whose security it was constituted.
have for their object the creation or transmission of real rights over immovable Asiong borrowed P1 million from a bank, secured by a mortgage on his land.
property must be in a public document fur greater efficacy, and a real estate Without his consent, his friend Boyong paid the whole loan. Since Asiong
mortgage is a real right over immovable property. benefited from the payment, can Boyong compel the bank to subrogate him in its
b. Lito's failure to pay led to the extra-judicial foreclosure of the mortgaged real right as mortgagee of Asiong's land? (2011 BAR) (A) No, but the bank can
property. Within a year from foreclosure, Lito tendered a manager's check to foreclose and pay Boyong back. (B) No, since Boyong paid for Asiong’s loan
Ferdie to redeem the property. Ferdie refused to accept payment on the ground without his approval. (C) Yes, since a change of creditor took place by novation
that he wanted payment in cash: the check does not qualify as legal tender and with the bank’s consent. (D) Yes, since it is but right that Boyong be able to get
does not include the interest payment. Is Ferdie's refusal justified? back his money and, if not, to foreclose the mortgage in the manner of the bank.
The right of a mortgagor in a judicial foreclosure to redeem the mortgaged the extrajudicial foreclosure of the said mortgage by filing a petition for sale on
property after his default in the performance of the conditions of the mortgage June 30, 2003. On September 4, 2003, the mortgaged property was sold at public
but before the sale of the mortgaged property or confirmation of the sale by the auction, which was eventually awarded to NB as the highest bidder. That same
court, is known as (2011 BAR) (A) accion publiciana. (B) equity of redemption. day, the Sheriff executed a Certificate of Sale in favor of NB.
(C) pacto de retro. (D) right of redemption. On October 21, 2003, DMP filed a Petition for Rehabilitation before the RTC.
Page 166 of 199 Pursuant to this, a Stay Order was issued by the RTC on October 27, 2003.
Civil Law On the other hand, NB caused the recording of the Sheriff’s certificate of Sale on
Does the right to request for the issuance of a writ of possession over a December 3, 2003 with the Register of Deeds of Cabanatuan City. NB executed
foreclosed real property prescribe in five (5) years? (2012 BAR) an Affidavit of Consolidation of Ownership and had the same annotated on the
title of DMP.
Page 168 of 199
NO, the purchaser’s right to request for the issuance of the writ of possession of Civil Law
the land never prescribes. The right to possess a property merely follows the right Consequently, the Register of Deeds cancelled DMP’s title and issued a new title
of ownership, and it would be illogical to hold that a person having ownership of in the name of NB on December 10, 2003.
a parcel of land is barred from seeking possession thereof (Spouses Edralin v. NB also filed on March 17, 2004 an Ex-Parte Petition for Issuance of Writ of
Philippine Veteran’s Bank, G.R. No. 168523, March 9, 2011). Possession before the RTC of Cabanatuan City. After hearing, the RTC issued on
X obtained a P10 M loan from BBB Banking Corporation. The loan is secured September 6, 2004 an Order directing the Issuance of the Writ of Possession,
by REM on his vacation house in Tagaytay City. The original Deed of REM for which was issued on October 4, 2004.
the P10 M was duly registered. The Deed of REM also provides that “The DMP claims that all subsequent actions pertaining to the Cabanatuan property
mortgagor also agrees that this mortgage will secure the payment of additional should have been held in abeyance after the Stay Order was issued by the
loans or credit accommodations that may be granted by the mortgagee…” rehabilitation court. Is DMP correct? (2014 Bar Question)
Subsequently, because he needed more funds, he obtained another P5 M loan. On
due dates of both loans, X failed to pay the P5 M but fully paid the P10 M. BBB No. DMP is not correct. Since the foreclosure of the mortgage and the issuance
Banking Corporation instituted extrajudicial foreclosure proceedings. of the certificate of sale in favor of the mortgagee were done prior to the
a. Will the extrajudicial foreclosure prosper considering that the additional P5 M appointment of a Rehabilitation Receiver and the issuance of the Stay Order, all
was not covered by the registration? the actions taken with respect to the foreclosed mortgaged property which were
b. What is the meaning of a “dragnet clause” in a Deed of Real Estate Mortgage? subsequent to the issuance of the Stay Order were not affected by the Stay Order.
Under what circumstances will be “dragnet clause” applicable? (2012 Bar Thus, after the redemption period expired without the mortgagor redeeming the
Question) foreclosed property, the mortgagee becomes the absolute owner of the property
and it was within its right to ask for consolidation of title and the issuance of new
a. Yes. X executed a REM containing a “blanket mortgage clause”. Mortgages title in its favor. The writ of possession procured by the mortgagee despite the
given to secure future advancements are valid and legal contracts, and the subsequent issuance of Stay Order in the rehabilitation proceeding instituted is
amounts names as consideration in said contracts do not limit the amount for also valid.
which the mortgage may stand as security if from the four corners of the X defaulted in his loan with Y. Y instituted extra-judicial foreclosure of the
instrument the intent to secure future and other indebtedness. property subject to a real estate mortgage that secured the loan. X has 1 year
b. Generally, a dragnet clause is a clause in a deed of REM stating that the within which to redeem the property. After the foreclosure, X filed an action
mortgage secures all the loans and advances that the mortgagor may at any time questioning the validity of the extra-judicial foreclosure sale. Which statement is
owe to the mortgagee. The word “dragnet” is a reference to a net drawn through most accurate? (2012 Bar Question)
a river or across ground to trap fish or game. It is also known in American a. The 1 year period within which to redeem will be interrupted by the filing of
jurisprudence as a “blanket mortgage clause” or an “anaconda clause”. A an action questioning the validity of the foreclosure;
mortgage with a dragnet clause enables the parties to provide continuous b. The 1 year period will not be interrupted by the filing of the action;
dealings, the nature or extent of which may not be known or anticipated at the c. The 1 year period will be extended for another year because of the filing of an
time, and they avoid the expense and inconvenience of executing a new security action questioning the validity of the foreclosure sale;
on each new transaction. It operates as a convenience and accommodation to the d. If the action which questions the validity of the foreclosure prospers, the
borrower as it makes available additional funds to him without his having to period will be interrupted.
execute additional security documents, thereby saving time, travel, costs of extra
legal services, recording fees, etc. b. The 1 year period will not be interrupted by the filing of the action.
Page 167 of 199 What is the effect if the proceeds in an extra-judicial foreclosure sale is not
Civil Law sufficient to pay for the obligation? (2012 Bar Question)
The “dragnet clause” may not apply to other loans extended by the mortgagee to Page 169 of 199
the mortgagor for which other securities were given. In the case of Prudential Civil Law
Bank v. Alviar, the Supreme Court adopted the “reliance on the security test” to a. The mortgagee can claim for deficiency judgment from the debtor;
the effect that “when the mortgagor takes another loan [from the mortgagee] for b. The mortgagee can claim for deficiency judgment from the mortgagor even
which another security was given, it could not be inferred that such loan was though it is a third party mortgage;
made in reliance solely on the original security with the “dragnet clause”, but c. The mortgagee has no more recourse or claim against the debtor;
rather, on the new security given”. This means that the existence of the new d. The mortgagee cannot claim for deficiency judgment from the debtor because
security must be respected and the foreclosure of the old security should only be it’s an extrajudicial foreclosure.
for the other loans not separately collateralized and for any amount not covered
by the new security for the new loan. a) The mortgagee can claim for deficiency judgment from the debtor.
X, at Y’s request, executed a Real Estate Mortgage (REM) on his (X’s) land to X mortgaged her residential house and lot in favor of ABC Bank. X defaulted in
secure Y’s loan from Z. Z successfully foreclosed the REM when Y defaulted on her loan and so the bank foreclosed the real estate mortgage on the residential
the loan but half of Y’s obligation remained unpaid. May Z sue X to enforce his house. Y then bought the residential house and lot before the expiration of the
right to the deficiency? (2011 Bar Question) redemption period. Can Y now take possession of the property? (2012 Bar
a. Yes, but solidarily with Y. Question)
b. Yes, since X’s is deemed to warrant that his land would cover the whole a. No, because it is still covered by the redemption period and the purchaser is
obligation. not yet entitled as a matter of right to take possession of the property;
c. No, since it is the buyer at the auction sale who should answer for the b. Yes, the purchaser is now entitled to the possession of the house;
deficiency. c. No, because there is a need to talk to X to leave the house;
d. No, because X is not Z’s debtor. d. No, because Y was not the one who foreclosed the mortgage on the property.

d. No, because X is not Z’s debtor. a) No, because it is still covered by the redemption period and the purchaser is
Include: Act 3135, as amended by R.A. No. 4118 not yet entitled as a matter of right to take possession of the property
DMP Corporation (DMP) obtained a loan of P20 M from National Bank (NB) Which phrase best completes the statement—When a debt is secured by a real
secured by a real estate mortgage over a 63,380-square meter land situated in estate mortgage, upon default of the debtor: (2012 Bar Question)
Cabanatuan City. Due to the Asian Economic Crisis, DMP experienced liquidity a. The only remedy of the creditor is to foreclose the real estate mortgage;
problems disenabling it from paying its loan on time. For that reason, NB sought
b. Another remedy is filing an action for collection and then foreclose if 2. If the bank opts to file an action for collection against the corporation, can it
collection is not enough; afterwards institute a real action to foreclose the mortgage? Explain. (2010 Bar
c. The creditor can foreclose the mortgage and demand collection for any Question)
deficiency;
d. None of the above. No, the bank can no longer file an action to foreclose the real estate mortgage.
When it filed a collection case, it was deemed to have abandoned the real estate
c) The creditor can foreclose the mortgage and demand collection for any mortgage.
deficiency. 3. Can the bank foreclose on the pledged shares of Marquez and recover the
X obtained a loan for P50 M from SSS Bank. The collateral is his vacation house deficiency from the corporation? (2010 Bar Question)
in Baguio City under a real estate mortgage. X needed more funds for his
business so he again borrowed another P10 M, this time from BBB Bank, Page 172 of 199
another bank, using the same collateral. The loan secured from SSS Bank fell Civil Law
due and X defaulted. If the bank forecloses the pledge, it cannot recover the deficiency because the
Page 170 of 199 foreclosure extinguishes the principal obligation, whether or not the proceeds
Civil Law from the foreclosure are equal to the amount of the principal obligation.
a. If SSS Bank forecloses the real estate mortgage, what rights, if any, are left VI. Antichresis
with BBB Bank as mortgagee also? Multiple choice: Choose the right answer. (2% each)
b. If the value of the Baguio property is less than the amount of loan, what would A contract of antichresis is always:
be the recourse of SSS bank? BBB Bank? a. a written contract;
c. If the value of the property is more that the amount of the loan, who will b. a contract with a stipulation that the debt will be paid through receipt of the
benefit from the excess value of the property? fruits of an immovable;
d. If X defaulted with its loan in favor of BBB Bank but fully paid his loan with c. involves the payment of interests, if owing;
SSS Bank, can BBB foreclose the real mortgage executed in its favor? d. all of the above;
e. Does X have any legal remedy after the foreclosure in the event that later on e. letters a and b.
he has the money to pay for the loan?
f. If SSS Bank and BBB Bank abandoned their rights under the real estate d (all of the above)
mortgage, is there any legal recourse available to them? (2012 Bar Question) VII. Chattel Mortgage
Which phrase best completes the statement—A chattel mortgage can be
a. BBB Bank, as junior mortgagee, would have a right to redeem the foreclosed constituted to secure: (2012 Bar Question)
property, together with X, his successors in interest, any judicial or judgment a. Obligation both past and future;
creditor of X, or any other person or entity having a lien on the vacation house b. Obligation existing at the time the mortgage is constituted;
subsequent to the real estate mortgage in favor of SSS Bank. c. Future obligations only;
b. In case of a deficiency, SSS Bank could file suit to claim for the deficiency. d. Past obligations only.
BBB Bank could file an ordinary action to collect its loan from X. if it does so, it
would be deemed to have waived it mortgage lien. If the judgment in the action b. Obligation existing at the time the mortgage is constituted.
to collect is favorable to BBB Bank, and it becomes final and executor, BBB X constituted a chattel mortgage on a car (valued at P1 M) to secure a P500,000
Bank could enforce the said judgment by execution. It could even levy execution loan. For the mortgage to be valid, X should have (2011 Bar Question)
on the same mortgaged property, but it would not have priority over the latter. a. The right to mortgage the car to the extent of half its value.
c. If the value of the property is more than the amount of the loan, the excess b. Ownership of the car.
could benefit and be claimed by BBB Bank, any judicial or judgment creditor of c. Unqualified free disposal of his car.
X, any other junior mortgagee, and X. d. Registered the car in his name.
d. If X defaulted in respect of his loan from BBB Bank but fully paid his loan
from SSS Bank, BBB Bank could now foreclose the mortgaged property as it c. Unqualified free disposal of his car.
would be the only remaining mortgagee of the same. Page 173 of 199
e. Yes, X could redeem the property within 1 year from the date of registration of Civil Law
the sheriff’s certificate of foreclosure sale. Include: Act 1508
f. SSS Bank and BBB Bank could each file an ordinary action to collect its loan Which phrase best completes the statement—The Deed of Chattel mortgage, if
from X. not registered with the Register of Deeds where debtor resides: (2012 Bar
On X’s failure to pay his loan to ABC Bank, the latter foreclosed the Real Estate Question)
Mortgage he executed in its favor. The auction sale was set for Dec. 1, 2010 with a. Is not valid, hence not binding between the mortgagor and the mortgagee;
the notices of sale published as the law required. The sale was, however, b. Is binding between the mortgagor and the mortgagee but will not affect third
cancelled when Dec. 1, 2010 was declared a holiday and rescheduled to Jan. 10, party;
2011 without c. To be valid between the mortgagor and the mortgagee, it must be coupled with
Page 171 of 199 the delivery of the subject matter of the chattel mortgage;
Civil Law d. Is as if a non-existent chattel mortgage.
republication of notice. The auction sale then proceeded on the new date. Under
the circumstance, the auction sale is (2011 Bar Question) b. Is binding between the mortgagor and the mortgagee but will not affect third
a. Rescissible. party.
b. Unenforceable. Which phrase best completes the statement—A chattel mortgage can cover:
c. Void. (2012 Bar Question)
d. Voidable. a. Only property described in the deed without exception;
b. Can also cover substituted property;
c. Void. c. Properties described in the deed except in case of stock in trade being a
Ozamis Paper Corporation secured loans from ABC Universal Bank in the substitute;
aggregate principal amount of P100 M, evidenced by several promissory notes, d. After acquired property.
and secured by a continuing guaranty of its principal stockholder Menandro
Marquez; a pledge of Marquez’s shares in the corporation valued at P45 M; and a c. Properties described in the deed except in case of stock in trade being a
real estate mortgage over certain parcels of land owned by Marquez. substitute.
The corporation defaulted and the bank extra-judicially foreclosed on the real Which phrase best completes the statement—To bind third parties, a chattel
estate mortgage. The bank, which was the sole bidder for P75 M, won the award. mortgage of shares of stock must be registered: (2012 Bar Question)
1. Can the bank sue Marquez for the deficiency of P25 M? Explain. (2010 Bar a) With the Register of Deeds where the debtor resides;
Question) b) With the Register of Deeds where the principal office of the corporation is;
c) In the Stock and Transfer Book of the corporation with the Corporate
Yes, the bank can sue Marquez for the deficiency of P25 M. in extrajudicial Secretary;
foreclosure of a real estate mortgage, if the proceeds of the sale are insufficient to d) With the Register of Deeds where the debtor resides and the principal office of
pay the debt, the mortgagee has the right to sue for the deficiency. the corporation.
 (a) Did his operation of the school bus service for a limited clientele render
d) With the Register of Deeds where the debtor resides and the principal office of Jovencio a common carrier? Explain your answer. (3%) (2017 Bar)
the corporation. Page 176 of 199
Page 174 of 199 Civil Law
Civil Law
Which phrase best completes the statement—The affidavit of good faith in a (a) Yes. Jovencio is a common carrier. The true test for a common carrier is not
Deed of Chattel Mortgage is: (2012 Bar Question) the quantity or extent of the business actually transacted, or the number and
a) An oath where the parties swear that the mortgage is made for the purpose of character of the conveyances used in the activity, but whether the undertaking is
securing the obligations specified and that the obligation is just and valid; a part of the activity engaged in by the carrier that he has held out to the general
b) An affidavit, the absence of which will vitiate the mortgage between the public as his business or
parties; occupation (Spouses Pereira v. Spouses Zarale, G.R. No. 157917, August 29,
c) Necessary only if the chattel being mortgaged are growing crops; 2012, 679 SCRA 208, 234).
d) A certification from the mortgagor that he is the mortgagor of the chattel. Jovencio operated the school bus as a business and not just as a casual
occupation; he undertook to carry the students in established routes to and from
b) An oath where the parties swear that the mortgage is made for the purpose of the school; and he transported the students for a fee, Joveneio was a common
securing the obligations specified and that the obligation is just and valid. carrier notwithstanding the limited clientele.
Armando, a resident of Manila, borrowed P3 M from Bernardo, offering as (b) In accordance with your answer to the preceding question,
security his 500 shares of stock worth P1.5 M in Xerxes Corporation, and his state the degree of diligence to be observed by Jovencio, and the consequences
2007 BMW sedan, valued at P2 M. the mortgage on the shares of stock was thereof. Explain your answer. (3%) (2017 BAR)
registered in the Office of the Register of Deeds of Makati City where Xerxes
Corporation has its principal office. The mortgage on the car was registered in Jovencio, as a common carrier, must observe extraordinary diligence In the
the Office of the Register of Deeds of Manila. Armando executed a single vigilance over the goods and for the safety of the passengers transported by them,
Affidavit of Good Faith, covering both mortgages. according to all the circumstances of each case. A common carrier should "carry
Armando defaulted on the payment of his obligation; thus, Bernardo foreclosed the passengers safely as far as human car and foresight can provide, using the
on the two chattel mortgages. Armando filed suit to nullify the foreclosure and utmost diligence of very cautious person with due regard for all the
the mortgages, raising the following issues: circumstances.
The execution of only one Affidavit of Good Faith for both mortgages (c) Assuming that the fatality was a minor of only 15 years of age who had no
invalidated the two mortgages; and (2009 Bar Question) earning capacity at the time of his death because he was still a student in high
school, and the trial court is minded to award indemnity, what may possibly be
The execution of only one Affidavit of Good Faith for both mortgages is not a the legal and factual justifications for the award of loss of earning capacity?
ground to nullify the said mortgages and the foreclosure thereof. Said mortgages Explain your answer. (4%) (2017 BAR)
are valid as between immediate parties, although they cannot bind third parties.
The mortgage on the shares of stocks should have been registered in the Office of (c) If it can be shown that the deceased student was enrolled in a reputable
the Register Deeds of Manila where he resides, as well as in the stock and institution and was able-bodied prior to his death, the basis for award of loss of
transfer book of Xerxes Corporation. earning capacity is the prevailing minimum wage at the time of the child's death.
Rule on the foregoing issues with reasons. (2009 Bar Question) The computation of the child's life expectancy must be reckoned from the age of
21 years, which is the age when the child would have graduated from college and
The mortgage on the shares of stock should be registered in the chattel mortgage would have begun to work (Spouses Perena v. Spouses Zarate, G.R. No. 157917,
registry in the register of Deeds of Makati City where the corporation has its August 29, 2012).
principal office and III. Lease of Rural and Urban Lands
Page 175 of 199 IV. Rights and Obligations of Lessor and Lessee
Civil Law Page 177 of 199
also in the Register of Deeds of Manila where the mortgagor resides. Civil Law
Registration of chattel mortgage in the stock and transfer book is not required to Dorotea leased portions of her 2,000 sq. m. lot to Monet, Kathy, Celia, and Ruth
make the chattel mortgage valid. Registration of dealings in the stock and for five (5) years. Two (2) years before the expiration of the lease contract,
transfer book under Section 63 of the Corporation Code applies only to sale or Dorotea sold the property to PM Realty and Development Corporation. The
disposition of shares, and has no application to mortgages and other forms of following month, Dorotea and PM Realty stopped accepting rental payments
encumbrances. from all the lessees because they wanted to terminate the lease contracts. Due to
Assume that Bernardo extrajudicially foreclosed on the mortgages, and both the the refusal of Dorotea to accept rental payments, the lessees , Ruth, et al., filed a
car and the shared of stock were sold at public auction. If the proceeds from such complaint for consignation of the rentals before the Regional Trial Court (RTC)
public sale should be 1-million short of Armando’s total obligation, can Bernardo of Manila without notifying Dorotea.
recover the deficiency? Why or why not? (2009 Bar Question) Is the consignation valid? (2014 BAR)

Yes. Bernardo can recover the deficiency. Chattels are given as mere security,
and not as payment or pledge. NO, the consignation is not valid. For consignation of the thing or sum due to be
VIII. Quasi-contracts proper, there must be prior notice to the creditor that the debtor is going to
IX. Concurrence and Preference of Credits consign the payment in court (Art.1257). This notice is intended to give the
LEASE creditor the opportunity to accept payment and thus avoid liability for costs in
I. Lease of Things case it is found that the act of consignation was properly made. Even on the
II. Lease of Work or Services assumption that Dorotea was no longer the creditor as she had already sold the
Jovencio operated a school bus to ferry his two sons and five of their property to DM Realty, the facts do not state that the realty corporation was also
schoolmates from their houses to their school, and back. The parents of the five given notice before filing the case for consignation.
schoolmates paid for the service. One morning, Porfirio, the driver, took a short Isaac leased the apartment of Dorotea for two (2) years. Six (6) months after,
cut on the way to school because he was running late, and drove across an Isaac subleased a portion of the apartment due to financial difficulty. Is the
unmanned railway crossing. At the time, Porfirio was wearing earphones because sublease contract valid? (2014 BAR)
he loved to hear loud music while driving. As he crossed the railway tracks, a
speeding PNR train loudly blared its horn to warn Porfirio, but the latter did not
hear the horn because of the loud music. The train inevitably rammed into the YES, it is valid if there is no express prohibition for subleasing in the lease
school bus. The strong impact of the collision between the school bus and the contract.
train resulted in the instant death of one of the classmates of Jovencio's younger Anselmo is the registered owner of a land and a house that his friend Boboy
son. The parents of the fatality sued Jovencio for damages based on culpa occupied for a nominal rental and on the condition that Boboy would vacate the
contractual alleging that Jovencio was a common carrier; Porfirio for being property on demand. With Anselmo's knowledge, Boboy introduced renovations
negligent; and the PNR for damages based on culpa aquiliana. Jovencio denied consisting of an additional bedroom, a covered veranda, and a concrete block
being a common carrier. He insisted that he had exercised the diligence of a good fence, at his own expense. Subsequently, Anselmo needed the property as his
father of a family in supervising Porfirio, claiming that the latter had had no residence and thus asked Boboy to vacate and turn it over to him. Boboy, despite
history of negligence or recklessness before the fatal accident. an extension, failed to vacate the property, forcing Anselmo to send him a
written demand to vacate. In his own written reply, Boboy signified that he was Under Article 1723 (NCC), the engineer or architect who drew up the plans and
ready to leave but Anselmo must first reimburse him the value of the specifications for a building is liable for damages if within 15 years from the
improvements he introduced on the property as he is a builder in good faith. completion of the structure, the same should collapse by reason of a defect in
Anselmo refused, insisting that Boboy cannot ask for reimbursement as he is a those plans and specifications, or due to the defects in the ground. Under Article
mere lessee. Boboy responded by removing the improvements and leaving the 2192 (NCC), however, if the damages should be the result of any of the defect in
building in its original state. (2013 BAR) the construction mentioned in Article 1723 (NCC), the third person suffering
a. Resolve Boboy's claim that as a builder in good faith, he should be reimbursed damages may proceed only against the engineer or architect or contractor within
the value of the improvements he introduced. the period fixed therein. The damages suffered by the lessee in the problem are
Page 178 of 199 clearly those resulting from defects in the construction plans or specifications.
Civil Law Page 180 of 199
Civil Law
Jude owned a building which he had leased to several tenants. Without informing
Boboy’s claim that he is a builder in good faith has no basis. A builder in good his tenants, Jude sold the building to Ildefonso. Thereafter, the latter notified all
faith is someone who occupies the property in the concept of an owner. The the tenants that he is the new owner of the building. Ildefonso ordered the tenants
provisions on builder-planter-sower under the Civil Code cover cases in which to vacate the premises within thirty (30) days from notice because he had other
the builder, planter and sower believe themselves to be owners of the land, or at plans for the building. The tenants refused to vacate, insisting that they will only
least, to have a claim of title thereto. do so when the term of their lease shall have expired. Is Ildefonso bound to
As Boboy is a lessee of the property, even if he was paying nominal rental, Art. respect the lease contracts between Jude and his tenants? Explain your answer.
1678, is applicable. Under this provision, if the lessee makes, in good faith, (3%) (2009 Bar Question)
useful improvements which are suitable to the use for which the lease is
intended, without altering the form or substance of the property leased, the lessor Yes, Ildefonso must respect the lease contracts between Jude and his tenants.
upon the termination of the lease, shall pay the lessee one-half of the value of While it is true that the said lease contracts were not registered and annotated on
improvements at that time. Should the lessor refuse to reimburse said amount, the the title to the property, Ildefonso is still not an innocent purchaser for value. He
lessee may remove the improvements, even though the principal thing may suffer ought to know the existence of the lease because the building was already
damage thereby. occupied by the tenants at the time he bought it. Applying the principle of caveat
b. Can Boboy be held liable for damages for removing the improvements over emptor, he should have checked and known the status of the occupants or their
Anselmo's objection? right to occupy the building before buying it.
V. Special Rules for Lease of Rural/Urban Lands
LAND TITLES AND DEEDS
NO. Boboy cannot be held liable for damages. The lessor, Anselmo, refused to I. Torrens System
reimburse one-half of the value of the improvements, so the lessee, Boboy, may Before migrating to Canada in 1992, the spouses Teodoro and Anita entrusted all
remove the same, even though the principal thing may suffer damage thereby. If their legal papers and documents to their nephew, Atty. Tan. Taking advantage
in removing the useful improvements Boboy caused more impairment in the of the situation, Atty. Tan forged a deed of sale, making it appear that he had
property leased than is necessary, he will be liable for damages (Art. 1678). bought the couple’s property in Quezon City. In 2000, he succeeded in obtaining
The term of a 5-year lease contract between X the lessor and Y the lessee, where a TCT over the property in his name. Subsequently, Atty. Tan sold the same
rents were paid from month to month, came to an end. Still, Y continued using property to Luis, who built an auto repair shop on the property. In 2004, Luis
the property with X’s consent. In such a case, it is understood that they impliedly registered the deed of conveyance, and title over the property was transferred in
renewed the lease (2011 BAR) (A) from month to month under the same his name.
conditions as to the rest. (B) under the same terms and conditions as before. (C) In 2006, the spouses Teodoro and Anita came to the Philippines for a visit and
under the same terms except the rent which they or the court must fix. (D) for discovered what had happened to their property. They immediately hire you as
only a year, with the rent raised by 10% pursuant to the rental control law. lawyer. What action or actions will you institute in order to vindicate their rights?
Multiple choice. Explain fully. (4%) (2009 Bar Question)
A had a 4-storey building which was constructed by Engineer B. After five years,
the building developed cracks and its stairway eventually gave way and I will institute the following actions against Atty. Tan:
collapsed, resulting to injuries to some lessees. Who should the lessees sue for 1. A civil action for damages for the fraudulent transfer of the title in his name
damages? (1%) (2010 Bar Question) and to recover the value of the property;
A. A, the owner Page 181 of 199
Page 179 of 199 Civil Law
Civil Law 2. An action against the National Treasurer for compensation from the State
B. B, the engineer Assurance Fund which is set aside by law to pay those who lose their land or
C. both A & B suffer damages as a consequence of the operation of the Torrens system;
3. A criminal action for forgery or falsification of public document;
C. Both A & B. 4. A complaint with the Supreme Court/Integrated Bar of the Philippines to
The lessee may proceed against A for breach of contract, and against B for tort or disbar or suspend him or other disciplinary action for violation or the Code of
statutory liability. Professional Ethics.
Under Article 1654 (2, of the) New Civil Code, the lessor is obliged to make all Any action against Luis will not prosper because he is an innocent purchaser for
the necessary repairs in order to keep the leased property suitable for the use to value. The Title to the land he bought was already in the name of the person who
which it has been devoted. Consequently, under Article 1659 NCC, the sold the property to him and there is nothing on the title which will make him
proprietor of a building or structure is responsible for the damages resulting from suspect about the fraud committed by Atty. Tan.
its total or partial collapse, if it is due to the lack of necessary repairs. II. Regalian Doctrine
Under Article 1723 NCC, the engineer or architect who drew up the plans and III. Citizenship Requirement
specifications for a building is liable for damages if within 15 years from the In 1972, Luciano de la Cruz sold to Chua Chung Chun, a Chinese citizen, a
completion of the structure, the same should collapse by reason of a defect in parcel of land in Binondo, Chua died in1990 leaving behind his wife and three
those plans and specifications, or due to the defects in the ground. This liability children, one of whom, Julian is a naturalized Filipino citizen. Six years after
may be enforced against the architect or engineer even by a third party who has Chua's death, the heirs executed an extrajudicial settlement of estate, and the
no privity of contract with the architect or engineer under Article 2192 NCC. parcel of land was allocated to Julian. In 2007, Luciano filed suit to recover the
ALTERNATIVE land he sold to Chua, alleging that the sale was void because it contravened the
Constitution which prohibits the sale of private lands to aliens, Julian moved to
A -. A, the owner. dismiss the suit on grounds of pari delicto, laches and acquisitive prescription.
The lessee can sue only the lessor for breach of contract under Article 1659 in Decide the case with reasons. (4%) (2009 Bar Question)
relation to Article 1654 NCC. The lessee cannot sue the architect or the engineer
because there was no privity of contract between them. When sued, however, the The case must be dismissed. Julian, who is a naturalized Filipino citizen and to
lessor may file a third party claim against the architect or the engineer. whom the property was allocated in an extra-judicial partition of the estate, is
ANOTHER ALTERNATIVE now the new owner of the property. The defect in ownership of the property of
Julian's alien father has already been cured by its transfer to Julian. It has been
B - B, the Engineer. validated by the transfer of the property to a Filipino citizen. Hence, there is no
more violation of the constitution because the subject real property is now owned annotated at the back of the title still in Ramon's name. Alex contends that since
by a Filipino citizen (Halili v. CA 287 SCRA 465 [1998]). Further, after the the Affidavit of Ad- verse Claim is effective only for 30 days from the date of its
lapse of 35 years, laches has set in and the motion to dismiss may be granted, for regis- tration, then its validity has expired. Macario posits that the anno- tation of
the failure of Luciano to question the ownership of Chua before its transfer to his adverse claim is notice to the whole world of his pur- chase of the lot in
Julian. question. Who has the superior right over the disputed property - Macario or
IV. Original Registration Alex? Explain. (5%) (2016 BAR)
On February 28, S998, Arthur filed an application for registration of title of a lot
in Ternate, Cavite before the Regional Trial Court of Naic, Cavite under Section Macario is preferred since the registration of his adverse claim was made ahead
48(b) of Commonwealth Act No. 141 (CA 141) for judicial confirmation of of the notice of levy and writ of execution in favor of Alex. Macario’s adverse
imperfect title. Section 48(b) of CA 141 requires possession counted from June claim, coupled with the fact that he was in posses- sion of the disputed property,
12, 1945. Arthur presented testimonial and documentary evidence that his are circumstances which should have put Alex on constructive notice that the
possession and that of property being offered to him had already been sold to another (Citing v Enrile,
Page 182 of 199 G.R. No. 156076 12008]). The contention that the adverse claim is effective only
Civil Law for 30 years is puerile. In Sajonas v. Court of Appeals, 258 (SCRA 79 ]1996])y
his predecessors-in- interest started in 1936. The lot was declared alienable and the Court held that the adverse claim does not ipso facto lose its validity since an
disposable (A and D) in 1993 based on a PENRO certification and a certified true independent action is still necessary to render it ineffective. Until then, the
copy of the original classification made by the DENR Secretary. adverse claim shall continue as a prior lien on the property.
The government opposed the application on the ground that the lot was certified On March 27, 1980, Cornelio filed an application for land registration involving
A and D only in 1993 while the application was instituted only in 1998. Arthur’s a parcel of agricultural land that he had bought from Isaac identified as Lot No.
possession of five (5) years from the date of declaration does not comply with the 2716 with an area of one (1) hectare. During the trial, Cornelio claimed that he
30-year period required under CA 141. Should the possession of Arthur be reck- and his predecessors-in-interest had been in open, continuous, uninterrupted,
oned from the date when the lot was declared A and D or from the date of actual public and adverse possession and occupation of the land for more than thirty
possession of the applicant? Explain. (5%) (2016 BAR) (30) years. He likewise introduced in evidence a certification dated February 12,
1981 citing a presidential declaration to the effect that on June 14, 1980,
Arthur’s possession should be reckoned from the date of his actual possession, agricultural lands of the public domain, including the subject matter of the
by himself and his predecessors-in-interest, since 1936. Under Section 48(b) of application, were declared alienable and disposable agricultural land.
CA 141, as amended by PD No. 1973, the length of the requisite possession was Page 184 of 199
changed from possession for “thirty (30) years immediately preceding the filing Civil Law
of the application” to possession “since June 12, 1945 or earlier”. But possession a. If you are the judge, will you grant the application for land registration of
is different from classification. As held in Maiabanan v. Republic, 587 SCRA Cornelio?
172 [2009/, it is only necessary that the land be already classified as A and D “at
the time the application for registration is filed” to make public the release of the
property for alienation or disposition. But the possession of Arthur even prior to NO, I will not grant the application. To be entitled to registration of the parcel of
the classification of the land as A and D shall be counted in determining the land, the applicant must show that the land being applied for is alienable land. At
period of possession. the time of the filing of the application, the land has not yet been declared
ALTERNATIVE alienable by the state (Republic v. CA, G.R. No. 144057, January 17, 2005).
b. Can Cornelio acquire said agricultural land through acquisitive prescription,
Arthur’s possession should be reckoned from the date the Ternate lot was whether ordinary or extraordinary? (2014 BAR)
declared alienable and disposable land of the public domain.
In Zarate v. Director of Lands, (G.R. No. 131501, July 14, 2004), the Supreme
Court, citing the case of Bracewell v. CA, (G.R. No. 107427, Jan. 25, 2000) Cornelio can acquire the land by acquisitive prescription only after it was
ruled that “possession of the property prior to the classi- fication thereof as declared part of alienable land by the state by possession for the required number
alienable or disposable, cannot be credited as part of the thirty (30)-year required of years for ordinary prescription, ten years possession in good faith with just
under Section 48(b) of CA No. 141, as amended. title or extraordinary prescription by possession for thirty years without need of
In Heirs of Malabanan v. Republic (G.R. No. 179987, September 3, 2010), the any other condition (Art. 1134).
Supreme Court explained that the possession of Arthur should be reckoned only Manuel was born on 12 March 1940 in a 1000-square meter property where he
from the date lots A and D were declared as alienable and disposable by the State grew up helping his father, Michael, cultivate the land. Michael has lived on the
and not from the date of actual possession. Section 48(b) of the Public Land Act property since the land was opened for settlement at about the time of the
used the words "lands of the public domain" or "alienable and disposable lands Commonwealth government in 193 5, but for some reason never secured any title
of the public domain" to clearly signify that lands otherwise classified, i.e., to the property other than a tax declaration in his name. He has held the property
mineral, forest or timber, or national parks, and lands of patrimonial or private through the years in the concept of an owner and his stay was uncontested by
ownership, are outside the coverage of the Public Land Act. What the law does others. He has also conscientiously and continuously paid the realty taxes on the
not include, it excludes. The use of the descriptive phrase "alienable and land. Michael died in 2000 and Manuel - as Michael’s only son and heir -now
disposable" further limits the coverage of Sec- tion 48(b) to only the agricultural wants to secure and register title to the land in his own name. He consults you for
lands of the public domain. Section 48(b) of the Public Land Act, in relation to legal advice as he wants to perfect his title to the land and secure its registration
Section 14(1) of the Property Registration Decree, presupposes that the land in his name.
subject of the applica- tion for a. What are the laws that you need to consider in advising Manuel on how he can
Page 183 of 199 perfect his title and register the land in his name? Explain the relevance of these
Civil Law laws to your projected course of action. (2013 BAR)
registration must have been already classified as agricultural land of the public
domain in order for the provision to apply. Thus, ab- sent proof that the land is I would advise Manuel to file an application for registration under Sec. 14 of
already classified as agricultural land of the public domain, the Regalian Pres. Decree No. 1529, or the Property Registration Decree (PRD), specifically
Doctrine applies, and overcomes the pre- sumption that the land is alienable and Sec. 14 (1) which requires (a) that the land applied for forms part of the alienable
disposable as laid down in Section 48(b) of the Public Land Act. (Heirs of and disposable (A & D) portion of the public domain, and (b) that the applicant
Malabanan v. Republic, G.R. No. 179987,September 3, 2013) has been in open, continuous and notorious possession and occupation thereof
The basis of the 30 year open continuous and notorious possession in the concept under a bona fide claim of ownership since June 12, 1945, or earlier. However, it
of owner of A and D land is extraordinary acquisitive pre- scription of is only necessary that the land is already declared A & D land “at the time the
immovable property. Lands classified as forest, mineral, and national parks are application for registration is filed" (Malabanan v. Republic, G.R. No. 180067,
properties of public dominion which cannot be acquired by acquisitive June 30, 2009).
prescription. Page 185 of 199
Macario bought a titled lot from Ramon, got the title and took possession of the Civil Law
lot. Since Macario did not have the money to pay the taxes, fees and registration Manuel could also invoke Sec. 14 (2) of the same Decree, which allows
expenses, he was not able to register the Deed of Absolute Sale. Upon advice, he registration through ordinary acquisitive prescription for thirty years, provided,
merely exe- cuted an Affidavit of Adverse Claim and had it annotated at the back however, that the land is “patrimonial” in character, i.e., already declared by the
of the title. A few years after, he received a Notice of Levy on Attachment and government (a) as A & D land, and (b) no longer needed for public use or public
Writ of Execution in favor of Alex. The notice, writ and certificate of sale were service (Id).
Manuel could also file an application for “confirmation of imperfect or NO, because Juan is not attacking the title but merely invoking his right as
incomplete title" through "judicial legalization under Sec. 48 (b) of CA No. 141 transferee. Hence, it does not involve a collateral attack on the title.
or the Public Land Act (PLA). But, as held in Malabanan, there is no substantial Page 187 of 199
difference between this provision and Sec. 14 (1), PRD. Both refer to agricultural Civil Law
lands already classified us alienable and disposable at the time the application is VI. Non-registrable Properties
filed, and require possession and occupation since June 12, 1945. The only VII. Dealings with Unregistered Lands
difference is that under the PRD, there already exists a title which is to he Marciano is the owner of a parcel of land through which a river runs out into the
confirmed, whereas under the PLA, the presumption is that land is still public sea. The land had been brought under the Torrens System, and is cultivated by
land (Republic v. Aquino, G.R. No. L-33983, January 27, 1983). Ulpiano and his family as farmworkers therein. Over the years, the river brought
Manuel may also invoke “vested rights" acquired under R.A. No. 1942 dated silt and sediment from its source up in the mountains and forests so that
June 2, 1957, which amended Sec. 48 (b), PLA by providing for a prescriptive gradually the land owned by Marciano increased in area by three hectares.
period of thirty years or judicial confirmation of imperfect title. It must only be Ulpiano built three huts on this additional area, where he and his two married
demonstrated that possession and occupation commenced on January 24, 1947 children live. On this same area. Ulpiano and his family planted peanuts, mongo,
and the 30-year period was completed prior to the effectivity of PD No. 1073 on beans and vegetables. Ulpiano also regular paid taxes on the land, as shown by
January 25, 1977. PD No. 1073 now requires possession and occupation since tax declarations, for over thirty years.
June 12, 1945 (Republic v. Espinosa, G.R. No. 171514, July 18, 2012). When Marciano learned of the increase in the size of the land he ordered Ulpiano
Another alternative is for Manuel to secure title through administrative to demolish the huts, and demanded that he be paid his share in the proceeds of
proceedings under the homestead or free patent provisions of the PLA. The title the harvest. Marciano claims that under the civil code, the alluvium belongs to
issued has the same efficacy and validity as a title issued through judicial him as a registered riparian owner to whose land the accretion attaches, and that
proceedings, but with the limitation that the land cannot be sold or disposed of his right is enforceable against the whole world.
within five years from the issuance of patent (Sec. 118, CA No. 141, as Is Marciano correct? Explain. (3%) (2009 Bar Question)
amended).
b. What do you have to prove to secure Manuel's objectives and what Marciano's contention is correct. Since the accretion was deposited on his land
documentation is necessary? (2013 BAR) by the action of the waters of the river and he did not construct any structure to
increase the deposition of soil ad silt, Marciano automatically owns the accretion.
Manuel has the burden to overcome the presumption of State ownership by His real right of ownership is enforceable against the whole word including
“well-nigh incontrovertible” evidence (Ong v. Republic, G.R. No. 175746, Ulpiano and his two married children. Although Marciano's land is registered the
March 12, 2008). Accordingly, he must show that the land is already classified as 3 hectares land deposited through accretion was not automatically registered. As
A & D “at the time the application for registration is filed" and that he has been unregistered land, it is subject to acquisitive prescription by third persons.
in “possession and occupation thereof" in the manner required by law since June Although Ulpiano and his children live in the 3 hectare unregistered land owned
12, 1945, or earlier. by Marciano, they are farmworkers; therefore they are possessors not in the
Manuel may tack his possession to that of his predecessor-in-interest (Michael) concept of owners but in the concept of more holders. Even if they possessed the
by the testimony of disinterested and knowledgeable eyewitnesses. Overt acts of land for more than 30 years, they cannot become the owners thereof through
possession may consist in introducing valuable improvements like fencing the extraordinary acquisitive prescription, because the law requires possession in the
land, constructing a residential house thereon, cultivating the land and planting concept of owner. Payment of taxes and tax declaration are not enough to make
fruit hearing trees, declaring the land for taxation purposes and paying realty their possession one in the concept of owner. They must repudiate the possession
taxes, all of which are corroborative proof of possession. in the concept of holder by executing unequivocal acts of repudiation amounting
Page 186 of 199 to custer of Marciano, known to Marciano and must be proven by clear and
Civil Law convincing evidence. Only then would his possession become adverse.
To identify the land, he must submit the tracing cloth plan or a duly-certified TORTS AND DAMAGES
blueprint or whiteprint copy thereof (Director of Lands v. Reyes, G.R. No. L- Book I—Torts
27594, November 28, 1975; Director of Lands v. CA and Iglesia ni Cristo, GR Page 188 of 199
No. L-56613, March 14, 1988). Civil Law
To show the classification of the land as A & D, the application must be I. Principles The liability of the school, its administrators and teachers, or the
accompanied by (1) a CENRO or PENRO certification; and (2) a certified true individual, entity or institution engaged in child care over the minor child or
copy of the original classification approved by the DENR Secretary (Republic v. damage caused by the acts or omissions of the unemancipated minor while under
Bantigue, G.R. No. 162322, March 14, 2012). A presidential or legislative act their supervision, instruction or custody shall be: (2012 BAR) a) Joint and
may also be considered. subsidiary b) Principal and solidary c) Principal and joint d) Subsidiary and
V. Subsequent Registration solidary.
Mr. and Mrs. Roman and Mr. and Mrs. Cruz filed an application for registration A driver of a bus owned by company Z ran over a boy who died instantly. A
of a parcel of land which after due proceedings was granted by the RTC acting criminal case for reckless imprudence resulting in homicide was filed against the
registration as land court. However, before the decree of registration could be driver. He was convicted and was ordered to pay P2 Million in actual and moral
issued, the spouses Roman and the spouses Cruz sold the lot to Juan. In the damages to the parents of the boy who was an honor student and had a bright
notarized deed of sale, the sellers expressly undertook to submit the deed of sale future. Without even trying to find out if the driver had assets or means to pay
to the land registration court so that the title to the property would be directly the award of damages, the parents of the boy filed a civil action against the bus
issued in Juan's name. (2015 BAR) company to make it directly liable for the damages.
a) Is such a stipulation valid? a) Will their action prosper?

YES, because when one who is not the owner of the property sells or alienates it YES, the action will prosper. The liability of the employer in this case may be
and later the seller or grantor acquires title, such title passes by operation of law based on quasi-delict and is included within the coverage of independent civil
to the buyer or grantee (Art. 1434). action. It is not necessary to enforce the civil liability based on culpa aquiliana
b) Distinguish a direct attack from a collateral attack on a title. that the driver or employee be proven to be insolvent since the liability of the
employer for the quasi- delicts committed by their employees is direct and
primary subject to the defense of due diligence on their part (Art. 2176; Art.
A direct attack on a title is one where the action filed is precisely for the purpose 2180).
of pointing out the defects in the title with a prayer that it be declared void. A b) If the parents of the boy do not wish to file a separate civil action against the
collateral attack is one where the action is not instituted for the purpose of bus company, can they still make the bus company liable if the driver cannot' pay
attacking the title but the nullity of the title is raised as a defense in a different the award for damages? If so, what is the nature of the employer's liability and
action. how may civil damages be satisfied? (2015 BAR)
c) If the title in Item XX.A is issued in the names of the original sellers, would a
motion filed by Juan in the same case to correct or amend the title in order to
reflect his name as owner considered be collateral attack? YES, the parents of the boy can enforce the subsidiary liability of the employer
in the criminal case against the driver. The conviction of the driver is a condition
sine qua non for the subsidiary liability of the employer to attach. Proof must be
shown that the driver is insolvent (Art. 103, RPC).
A collision occurred at an intersection involving a bicycle and a taxicab. Both the contract, not a quasi-delict. (H) Yes, since quasi-delict presupposes the absence
bicycle rider (a businessman then doing his morning exercise) and the taxi driver of a pre-existing contractual relation between the parties.
claimed that the other was at fault. Based on the police report, the bicycle crossed Virgilio owned a bare and simple swimming pool in his garden. MB, a 7-year old
Page 189 of 199 child, surreptitiously entered the garden and merrily romped around the ledges of
Civil Law the pool. He accidentally tripped, fell into the pool, and drowned. MB’s parents
the intersection first but the taxicab, crossing at a fast clip from the bicycle's left, sued Virgilio for damages arising from their child’s death, premised on the
could not brake in time and hit the bicycle's rear wheel, toppling it and throwing principle of "attractive nuisance". Is Virgilio liable for the death of MB? (2011
the bicycle rider into the sidewalk 5 meters away. BAR)
The bicycle rider suffered a fractured right knee, sustained when he fell on his Page 191 of 199
right side on the concrete side walk. He was hospitalized and was subsequently Civil Law
operated on, rendering him immobile for 3 weeks and requiring physical (A) No, the child was 7 years old and knew the dangers that the pool offered. (B)
rehabilitation for another 3 months. In his complaint for damages, the rider Yes, being an attractive nuisance, Virgilio had the duty to prevent children from
prayed for the award of P1,000,000 actual damages, P200,000 moral damages, coming near it. (C) No, since the pool was bare and had no enticing or alluring
P200,000 exemplary damages, P100,000 nominal damages and P50,000 gadgets, floats, or devices in it that would attract a 7-year old child. (D) Yes,
attorney's fees. since Virgilio did not cover the swimming pool while not in use to prevent
Assuming the police report to be correct and as the lawyer for the bicycle rider, children from falling into it.
what evidence (documentary and testimonial) and legal arguments will you Define quasi tort. Who are the persons liable under quasi torts and what are the
present in court to justify the damages that your client claims? (1994, 2002, defenses available to them? (2010 Bar Question)
2013) NOTE: It is recommended that the examiner exercise leniency and liberality in
grading the answers given to this question. The term quasi-tort is not a part of
legal developments in civil law. In Philippine legal tradition, quasi-delict has
I will base the claim of my client on quasi-delict under Art. 2176. been treated as the closest civil law equivalent of the common law tort. In fact, in
The requisites for a claim under quasi-delict to prosper are as follows: a number of Supreme Court decisions, the two terms have been considered
1. Act or omission, there being fault or negligence; synonymous. In reality, however, the common law tort is much broader in scope
2. Damage or injury; and than the civil law quasi-delict.
3. Causal connection between the damage and the act or omission. In recent developments in common law, the concept of “quasi-torts” can be
The case clearly involves a quasi-delict where my client, the bicycle rider, considered as the closest common law equivalent of the civil law concept of
suffered injury as a result of the negligence of the over-speeding taxi driver, quasi-delict. This is because it is argued that the growing recognition of quasi-
without fault on my client’s part. torts as a source of obligation is hinged on the acceptance at common law of the
To prove actual damages, aside from the testimony of my client, I will present civil law principles of quasi-delict.
his hospital and medical bills. Receipts of the fees paid on the rehabilitation will FIRST
also be presented. Furthermore, I will present income tax returns, contracts and Quasi-tort is a legal concept upholding the doctrine that some legal duty exists
other documents to prove unrealized profits as a result of this temporary injury. I that can not be classified strictly as a personal duty (that is, resulting in a tort),
will also call the attending physician to testify as to the extent of the injuries nor as a contractual duty (thus resulting in a breach of contract) but rather some
suffered by my client, and to corroborate the contents of the medical documents. other kind of duty recognizable by the law. “Tort” or “Quasi-Tort” is an Anglo
Based on Art. 2202, in quasi-delicts, the defendant shall be liable for all damages American or Common Law concept, while “Delict” or “Quasi-Delict” is a
which are the natural and probable consequences of the act or omission Civil Law concept. (Wikipedia Encyclopedia)
complained of. It is not necessary that such damages have been foreseen or could SECOND
have been foreseen by the dfendant. Quasi-tort is considered as the equivalent of quasi-delict. Hence the rules of the
Unlike actual damages, no proof of pecuniary loss is necessary in order that latter pertaining to persons who can be held liable and their defenses would also
moral, nominal, temperate, liquidated or exemplary damages may be adjudicated. apply.
The assessment is left to the discretion of the Court (Art. 2216). There must still Those liable for quasi-delict include:
be proof of pecuniary estimation, however. 1. The tortfeasor or the person causing damage to another through fault or
Page 190 of 199 negligence (Article 2176 NCC); and
Civil Law 2. Persons vicariously liable under Article 2180 (NCC).
Moral damages can be recovered by my client under Arts. 2219 and 2200. Moral The defenses available include:
damages may be recovered in case of a quasi-delict causing physical injuries. Page 192 of 199
Additionally, it must be proved that such damages were the proximate result of Civil Law
the act complained of. Medical certificates will be presented, along with the 1. That the defendant was not negligent or that he exercised due diligence
testimony from my client and other eyewitness accounts, in order to support the (Article 2176 NCC).
award for moral damages. 2. That although the defendant is negligent, his negligence is not the proximate
Exemplary damages may be granted if the defendant acted in wanton, fraudulent, cause of the injury. (Article 2179 NCC).
reckless, oppressive, or malevolent manner. While the amount of exemplary 3. That the plaintiffs own negligence was the immediate and proximate cause of
damages need not be proved, the plaintiff must show that he is entitled to moral his injury (Article 2179 NCC).
or compensatory damages. In support of this, I will present the police report 4. That the person vicariously liable has observed all the diligence of a good
showing the circumstances under which the accident took place, taking into father of a family to prevent damage (2180 NCC).
account the actions of the parties. I will ask the officials who responded to the 5. That the cause of action has prescribed after the lapse of 4 years (Article 1146
accident to testify as to the conduct of the parties at the time of the accident in NCC).
order to determine whether defendant was guilty of gross negligence. 6. The fact that the plaintiff had committed contributory negligence is a partial
Finally, attorney’s fees may be recovered when exemplary damages are awarded defense (Article 2179 NCC).
(Art. 2208). II. Classification of Torts
Lennie bought a business class ticket from Alta Airlines. As she checked in, the III. The Tortfeasor
manager downgraded her to economy on the ground that a Congressman had to
be accommodated in the business class. Lennie suffered the discomfort and
embarrassment of the downgrade. She sued the airlines for quasi-delict but Alta
IV. Act or Omission and its Modalities
Airlines countered that, since her travel was governed by a contract between
them, no quasi-delict could arise. Is the airline correct? (2011 BAR) (A) No, the Mabuhay Elementary School organized a field trip for its Grade VI students in
breach of contract may in fact be tortious as when it is tainted as in this case with Fort Santiago, Manila Zoo, and Star City. To be able to join, the parents of the
arbitrariness, gross bad faith, and malice. (B) No, denying Lennie the comfort students had to sign a piece of paper that reads as follows:
and amenities of the business class as provided in the ticket is a tortious act. (C) "I allow my child (name of student), Grade – Section, to join the school’s field
Yes, since the facts show a breach of contract, not a quasi-delict. (D) Yes, since trip on February 14, 2014.
quasi-delict presupposes the absence of a pre-existing contractual relation I will not file any claim against the school, administrator or teacher in case
between the parties. (E) No, the breach of contract may in fact be tortious as something happens to my child during the trip."
when it is tainted as in this case with arbitrariness, gross bad faith, and malice. Joey, a 7-year-old student of Mabuhay Elementary School was bitten by a snake
(F) No, denying Lennie the comfort and amenities of the business class as while the group was touring Manila Zoo. The parents of Joey sued the school for
provided in the ticket is a tortious act. (G) Yes, since the facts show a breach of
damages. The school, as a defense, presented the waiver signed by Joey’s negligent and such negligence contributed to the happening of the incident. In
parents. that event, the school or his parents are not liable under Article 218, 219 or 221
Was there a valid waiver of right to sue the school? Why? (2014 BAR) of the Family Code, but will be liable under the general provisions of the Civil
Code on quasi-delict.

NO, there was no valid waiver of the right to sue the school. A waiver to be valid
must have three requisites
X. Strict Liability
1) existence of the right
2) legal capacity of the person waiving the right and Primo owns a pet iguana which he keeps in a man- made pond
3) the waiver must not be contrary to law, morals, good customs, public order or enclosed by a fence situated in his residential lot. A typhoon
public policy or prejudicial to a third person with a right recognized by law. knocked down the fence of the pond and the iguana crawled
In the case presented, the waiver may be considered contrary to public policy as out of the gate of Primo’s residence. N, a neighbor who was
it exonerates the school from liability for future negligence. The waiver in
passing by, started throwing stones at the iguana, drawing the
effect allows the school to not exercise even ordinary diligence.
iguana to move toward him. N panicked and ran but tripped on
Liwayway Vinzons-Chato was then the Commissioner of Internal Revenue while something and suffered a broken leg.
Fortune Tobacco Corporation is an entity engaged in the manufacture of different Is anyone liable for N’s injuries? Explain. (4%) (2010 Bar
brands of cigarettes, among which are "Champion," "Hope," and "More" Question)
cigarettes. Fortune filed a complaint against Vinzons-Chato to recover damages
for the alleged violation of its constitutional rights arising from Vinzons-Chato’s No one is liable.
issuance of Revenue Memorandum Circular No. 37-934 (which re-classified The possessor of an animal or whoever may make use of the same is responsible
Fortune cigarettes as locally manufactured with foreign brands and thereby for the damage which it may cause, although it may escape or be lost. This
imposed higher taxes), which the Supreme Court later declared invalid. Vinzons- responsibility shall cease only in case the damage should come from force
Chato filed a Motion to dismiss arguing that she cannot be held liable for majeure or from the fault of the person who has suffered damage (Art. 2183,
damages for acts she performed while in the discharge of her duties as BIR New Civil Code).
Commissioner. Is she correct? Explain (2012 BAR)
YES. As a general rule, a public officer is not liable for acts performed in the
discharge of his duties. The exceptions are when he acted with malice, bad faith, Rommel’s private car, while being driven by the regular family
or gross negligence in the performance of his duty, or when his act is in violation driver, Amado, hits a pedestrian causing the latter’s death.
of the constitutionally guaranteed rights and liberties of a person under Art. 32. Rommel is not in the car when the incident happened.
The public officer is not automatically considered to have violated the rights or Is Rommel liable for damages to the heirs of the deceased? Explain.
liberties of a person simply because the rule the public officer issued was
(2%) (2009 Bar Question)
declared invalid by the Court. The complainant must still allege and prove the
particular injury or prejudice he has suffered from the violation of his Yes, Rommel may be held liable for damages if he fails to prove that he
constitutional right by the issuance of the invalidated rule. The problem does not exercised the diligence of a good father of a family (Art. 2180, par. 5, NCC) in
state any fact from which any malice, bad faith or gross negligence on the part of selecting and supervising his family driver.
Vinzons-Chato may be inferred, or the particular injury or prejudice the The owner is presumed liable unless he proves the defense of diligence. If the
complainant may have suffered as a result of the violation of his constitutional driver was performing his assigned task when the incident happened, Rommel
rights. Hence, she cannot be held liable. The facts presented are similar to the shall be solidarily liable with the driver.
facts of the case of Vinzons-Chato v. Fortune, (G.R. No. 141309, December 23, In case the driver is convicted of reckless imprudence and cannot pay the civil
2008). liability, Rommel is subsidiarily liable for the damages awarded against the
driver and the defense of diligence is not available.
Would your answer be the same if Rommel was in the car at the
V. Proximate Cause time of the accident? Explain. (2%) (2009 Bar Question)
VI. Legal Injury Yes, my answer would be the same. Rommel, who was in the car, shall be liable
VII. Intentional Torts for damages if he could have prevented the misfortune by the use of due
diligence in supervising his driver but failed to exercise it (Art. 2184, NCC). In
VIII. Negligence such a case, his liability is solidary with his driver.
ALTERNATIVE
On May 5, 1989, 16-year old Rozanno, who was issued a
student permit, drove to school a car, a gift from his parents. Yes, my answer will be the same except that in such a case the liability of the
On even date, as his class was scheduled to go on a field trip, owner is not presumed. When the owner is inside the vehicle, he becomes liable
his teacher requested him to accommodate in his car, as he did, only when it is shown that he could have prevented the misfortune by the use of
four (4) of his classmates because the van rented by the school due diligence (Article 2184, NCC). For the owner to be held liable, the burden of
proving that he could have prevented the misfortune rests on the shoulder of the
was too crowded. On the way to a museum which the students victim.
were scheduled to visit, Rozanno made a wrong maneuver,
causing a collision with a jeepney. One of his classmates died.
He and the three (3) others were badly injured.
Who is liable for] the damage to the jeepney? Explain. (2%) (2010
Bar Question)
With respect to the damages caused to the jeepney, only Rozanno should be held
liable because his negligence or tortious act was the sole, proximate, and
immediate cause thereof.
Under the same facts, except the date of occurrence of the incident,
this time in mid-1994, what would be your answer? Explain. (2%)
(2010 Bar Question)
Since Rozanno was 16 years old in 1989, if the incident happened sometime in
the middle of 1994, Rozanno would have been 21 years old at that time. Hence,
he was already of legal age. The law reducing the age of majority to 18 years
took effect in December 1989.
Being of legal age, Articles 218, 219, and 221 of the Family Code are no longer
applicable. In such case, only Rozanno will be personally responsible for all the
consequences of his act unless the school or his parents were themselves also
 bad faith or fraud as would warrant the award of moral and exemplary
Damages damages.
GENERAL PROVISIONS (1994, 2009)
Johnny Maton's conviction for homicide was affirmed by the ACTUAL AND COMPENSATORY DAMAGES
Court of Appeals and in addition although the prosecution had
On her third month of pregnancy, Rosemarie married to Boy.
not appealed at all. The appellate court increased the
For reasons known only to her, and without informing Boy,
indemnity for death from P30,000.00 to P50,000.00. On his
went to the clinic of X, a known abortionist, who for a fee,
appeal to the Supreme Court, among the other things Johnny
removed and expelled the fetus from her womb, Boy learned of
Maton brought to the high court's attention, was the increase of
the abortion six (6) months later. Availing of that portion of
indemnity imposed by the Court of Appeals despite the clear
Section 12 of Article II of the 1987 Constitution which reads:
fact that the People had not appealed from the appellate
The State xxx shall equally protect the life of the mother and
court’s judgment. Is Johnny Maton correct? (1994 Bar)
In Abejam v. Court of Appeals, the Supreme Court said that even if the issue of the life of the unborn from conception, xxx which he claims
damages were not raised by the appellant in the Court of Appeals but the Court confers a civil personality on the unborn from the moment of
of Appeals in its findings increased the damages, the Supreme Court will not conception. Boy filed a case for damages against the
disturb the findings of the Court of Appeals. abortionist, praying therein that the latter be ordered to pay
him: (a) P30,000.00 as indemnity for the death of the fetus, (b)
Rommel’s private car, while being driven by the regular family P100, 000.00 as moral damages for the mental anguish and
driver, Amado, hits a pedestrian causing the latter’s death. anxiety he suffered, (c) P50,000.00 as exemplary damages, (d)
Rommel is not in the car when the incident happened. P20,000.00 as nominal damages, and (e) P25,000.00 as
1. Is Rommel liable for damages to the heirs of the deceased? attorney's fees.
Explain. May actual damages be also recovered? If so, what facts should be
Yes, Rommel may be held liable for damages if he fails to prove that he alleged and proved? (1991 Bar)
exercised the diligence of a good father of a family (Art. 2180, par 5) in Yes, provided that the pecuniary loss suffered should be substantiated and duly
selecting and supervising his family driver. The owner is presumed liable proved.
unless he proves the defense of diligence.
If the driver was performing his assigned task when the accident happened,
If a pregnant woman passenger of a bus were to suffer an
Rommel shall be solidarily liable with the driver.
In case the driver is convicted of reckless imprudence and cannot pay the civil abortion following a vehicular accident due to the gross
liability, Rommel is subsidiarily liable for the damage awarded against the negligence of the bus driver, may she and her husband claim
driver and the defense of diligence is not available. damages from the bus company for the death of their unborn
2. Would your answer be the same if Rommel was in the car at the child? Explain. (2003, 2014 Bar)
time of the accident? Explain. No, the spouses cannot recover actual damages in the form of indemnity for the
Yes, my answer would be the same. Rommel, who was in the car, shall be liable loss of life of the unborn child. This is because the unborn child is not yet
for damages if he could have prevented the misfortune by the use of due considered a person and the law allows indemnity only for loss of life of
diligence in supervising his driver but failed to exercise it. (Art. 2184) In such person.
case, his liability is solidary with his driver. The mother, however may recover damages for the bodily injury she suffered
from the loss of the fetus which is considered part of her internal organ.
The parents may also recover damages for injuries that are inflicted directly upon
Peter, a resident of Cebu City, sent through Reliable Pera them, e.g., moral damages for mental anguish that attended the loss of the unborn
Padala (RPP) the amount of P20,000.00 to his daughter, Paula, child. Since there is gross negligence, exemplary damages can also be recovered.
for the payment of her tuition fee. Paula went to an RPP branch (Geluz v. CA, G.R. No. L-16439, July 20, 1961)
but was informed that there was no money remitted to her
name. Peter inquired from RPP and was informed that there MORAL DAMAGES
was a computer glitch and the money was credited to another Ortillo contracts Fabricato, Inc. to supply and install tile
person. Peter and Paula sued RPP for actual damages, moral materials in a building he is donating to his province. Ortillo
damages and exemplary damages. The trial court ruled that pays 50% of the contract price as per agreement. It is also
there was no proof of pecuniary loss to the plaintiffs but agreed that the balance would be payable periodically after
awarded moral damages of P20,000.00 and exemplary every 10% performance until completed. After performing
damages of P5,000.00. On appeal, RPP questioned the award of about 93% of the contract, for which it has been paid an
moral and exemplary damages. Is the trial court correct in additional 40% as per agreement, Fabricato, Inc. did not
awarding moral and exemplary damages? Explain. (2016 Bar) complete the project due to its sudden cessation of operations.
No, the trial court is not correct in awarding moral and exemplary damages.
The damages in this case are prayed for based on the breach of contract
Instead, Fabricato, Inc. demands payment of the last 10% of the
committed by RPP in failing to deliver the sum of money to Paula. contract despite its noncompletion of the project. Ortillo
Under the provisions of the Civil Code on Moral Damages, in breach of contract, refuses to pay, invoking the stipulation that payment of the last
moral damages may be recovered when the defendant acted in bad faith or was amount 10% shall be upon completion. Fabricato, Inc. brings
guilty of gross negligence (amounting to bad faith) or in wanton disregard of suit for the entire 10%. Plus damages, Ortillo counters with
his contractual obligation. In the same fashion, to warrant the award of claims for (a) moral damages for Fabricato, Inc.’s unfounded
exemplary damages, the wrongful act must be accomplished by bad faith, and an suit which has damaged his reputation as a philanthropist and
award of damages would be allowed only if the guilty party acted in a wanton,
fraudulent, reckless or malevolent manner. (Art. 2232, CC) Bad faith does not respect businessman in his community, and (b) attorney’s fees.
simply connote bad judgment or negligence. It imports a dishonest purpose or a. Does Ortillo have a legal basis for his claim for moral damages?
some moral obliquity and conscious doing of a wrong, a breach of known There is no legal basis to Ortillo’s claim for moral damages. It does not fall under
duty through some motive or interest or ill will that partakes of the nature of the coverage of Art. 2219.
fraud.
In this case, however, RPP’s breach was due to a computer glitch which at most
can be considered as negligence on its part, but definitely does not constitute
b. How about his claim for attorney’s fees, having hired a lawyer to liable spring from the liability of its employee (Nikko Hotel Manila Garden v.
defend him? (2002 Bar) Reyes, G.R. No. 154259, February 28, 2005).
Ortillo is entitled to attorney’s fees because Fabricato’s complaint is a case of
malicious prosecution or a clearly unfounded civil action. (Art. 2208 [4] and Actual and Compensatory Damages
[11])
With regard to an award of interest in the concept of actual and
compensatory damages, please state the guidelines regarding
Rodolfo, married to Sharon, had an illicit affair with his
the manner of computing legal interest in the following
secretary, Nanette, a 19-yearold girl, and begot a baby girl,
situations:
Rona. Nanette sued Rodolfo for damages: actual, for hospital
and other medical expenses in delivering the child by [a] when the obligation is breached and it consists in the payment
caesarean section; moral, claiming that Rodolfo promised to of a sum of money like a loan or forbearance of money; (2.5%)
[a| When the obligation is breached and it consists in the payment of a sum of
marry her, representing that he was single when, in fact, he
money like a loan or forbearance of money, in the absence of stipulation, the rate
was not; and exemplary, to teach a lesson to like-minded of interest shall be the legal rate of 6% per annum (Article 2209 CC), which
Lotharios. If you were the judge, would you award all the was increased to 12% per NB Circular No. 905, Series of 1982) to be computed
claims of Nanette? Explain. from default. The twelve percent 12% per annum legal interest shall apply only
If Rodolfo's marriage could not have been possibly known to Nanette or there is until June 30, 2013. From July 1, 2013, the new rate of six percent (6%) per
no gross negligence on the part of Nanette, Rodolfo could be held liable for annum shall be the prevailing rate of interest when applicable (Nacar v.
moral damages. If there is gross negligence in a suit for quasi-delict, exemplary Gallery Frames, 703 SCRA 439 12013}, applying BSP -MB Circular No. 799).
could be awarded. [b] when the obligation does not constitute a loan or forbearance
of money. (2.5%)
Rosa was leasing an apartment in the city. Because of the Rent Consider the issuance of BSP-MB Circular No. 799, which became effective on
Control Law, her landlord could not increase the rental as July 1, 2013. (2016 BAR)
much as he wanted to, nor terminate her lease as long as she [NOTE: It is suggested that credit also be given in the event that the examinees
was paying her rent. In order to force her to leave the cite Tahada v. Tuvera to support the conclusion that publication is unnecessary in
premises, the landlord stopped making repairs on the the case of interpretative regulations and those merely internal in nature, as the
language of the problem may be interpreted by the examinees to refer only to
apartment, and caused the water and electricity services to be
mere guidelines or directory matters}. The examinee should be given credit if he
disconnected. The difficulty of living without electricity and mentions that the actual base for computing the interest due on the loan or
running water resulted in Rosa's suffering a nervous forbearance of money, goods or credit is the amount of the loans, forbearance,
breakdown. She sued the landlord for actual and moral plus whatever interest is stimulated in writing; otherwise no interest may be
damages. Will the action prosper? Explain. (1996 Bar) charge for using the money (Art. 1956 CC)
a) Yes, based on breach of contract. The lessor has the obligation to undertake [b] The interest on the amount of damages awarded may be imposed at the
repairs to make the apartment habitable and to maintain the lessee in the discretion of the court at the rate of 6% per annum. No interest, however, shall be
peaceful and adequate enjoyment of the lease for the entire duration of the adjudged on unliquidated claims or damages, except when or until the demand
contract (Article 1654. NCC). Since there was willful breach of contract by the can be established with reasonable certainty. Accordingly, where the demand
lessor, the lessee is entitled to moral damages under Article 2220, NCC. She is is established with reasonable certainty, the interest shall begin to run from the
also entitled to actual damages, e. g. loss of income, medical expenses, etc., time the claim is made judicially or extrajudicially, but when such certainty
which she can prove at the trial. cannot be so reasonably established at the time the demand is made, the interest
c) Yes, the action should prosper for both actual and moral damages. In fact, shall begin to run only from the date the judgment of the court is made (at
even exemplary damages and attorney’s fees can be claimed by Rosa, on the which time the quantification of damages may be deemed to have been
authority of Magbanua vs. IAC (137 SCRA 328), considering that, as given, the reasonably ascertained). The actual base for the computation of legal interest
lessor’s willful and illegal act of disconnecting the water and electric services shall, in any case, be on the amount finally adjudged. (Nacar v. Gallery
resulted in Rosa’s suffering a nervous breakdown. Art. 20 NCC and Art, 21, Frames, 703 SCRA 439 [2013]).
NCC authorize the award of damages for such willful and illegal conduct.

Moral Damages
Peter, a resident of Cebu City, sent through Reliable Pera
Padala (RPP) the amount of P20, 000.00 to his daughter, Paula,
I. General Considerations for the payment of her tuition fee. Paula went to an RPP branch
but was informed that there was no money remitted to her
Roberto was in Nikko Hotel when he bumped into a friend who
name. Peter inquired from RPP and was informed that there
was then on her way to a wedding reception being held in said
was a computer glitch and the money was credited to another
hotel. Roberto alleged that he was then invited by his friend to
person. Peter and Paula sued RPP for actual damages, moral
join her at the wedding reception and carried the basket full of
damages and exemplary damages. The trial court ruled that
fruits which she was bringing to the affair. At the reception, the
there was no proof of pecuniary loss to the plaintiffs but
wedding coordinator of the hotel noticed him and asked him,
awarded moral damages of P20,000.00 and exemplary
allegedly in a loud voice, to leave as he was not in the guest list.
damages of P5, 000.00. On appeal, RPP questioned the award of
He retorted that he had been invited to the affair by his friend,
moral and exemplary damages. Is the trial court correct in
who however denied doing so. Deeply embarrassed by the
awarding moral and exemplary damages? Explain. (5%) (2016
incident, Roberto then sued the hotel for damages under
BAR)
Articles 19 and 21 of the Civil Code. Will Roberto’s action No, the trial court is not correct in awarding moral and exemplary damages. The
prosper? Explain. (5%) (2012 BAR) damages in this case are prayed for based on the breach of contract committed by
It depends. While the hotel has the right to exclude an uninvited guest from the RPP in failing to deliver the sum of money to Paula.
wedding reception, that does not give the hotel the license to humiliate Roberto. Under the provisions of the Civil Code, in breach of contract, moral damages
If the wedding coordinator of the hotel acted wrongfully e.g. with abuse of right, may be recovered when the defendant acted in bad faith or was guilty of gross
unfairly, or in a manner that exposed Roberto to unnecessary ridicule or shame, negligence (amounting to bad faith) or in wanton disregard of his contractual
his action will proper. Otherwise, Roberto’s action will prosper. The hotel is obligation. In the same fashion, to warrant the award of exemplary damages, the
liable for the wrongful acts of its employees. NO. Roberto’s action will not wrongful act must be accomplished by bad faith, and an award of damages would
prosper. From the facts given in the problem, the wedding coordinator did not be allowed only if the guilty party acted in a wanton, fraudulent, reckless,
abuse her right when she asked him to leave the wedding reception because he oppressive, or malevolent manner (Article 2232 of the Civil Code).
was not in the guest list. Hotel Nikko could not be held liable for damages as its
Bad faith does not simply connote bad judgment or negligence. It imports a
dishonest purpose or some moral obliquity and conscious doing of a wrong, a
breach of known duty through some motive or interest or ill will that partakes of
the nature of fraud.
In this case, however, RPP’s breach was due to a computer glitch which at most
can be considered as negligence on its part, but definitely does not constitute
bad faith or fraud as would warrant the award of moral and exemplary
damages.

Rodolfo, married to Sharon, had an illicit affair with his

secretary, Nanette, a 19-year old girl, and begot a baby girl,
Rona. Nanette sued Rodolfo for damages: actual, for hospital
and other medical expenses in delivering the child by
caesarean section; moral, claiming that Rodolfo promised to
marry her, representing that he was single when, in fact, he
was not; and exemplary, to teach a lesson to like-minded
Lotharios. If you were the judge, would you award all the
claims of Nanette? Explain. (3%) (2009 Bar Question)

If Rodolfo’s marriage could not have been possibly known to Nanette or there is
no gross negligence on the part of Nanette, Rodolfo could be held liable for
moral damages.
If there is gross negligence in a suit for quasi-delict, exemplary damages could be
awarded.

IV. Nominal Damages

V. Temperate or Moderate Damages
Page 199 of 199
Civil Law
VI. Liquidated Damages
Exemplary or Corrective Damages
Rodolfo, married to Sharon, had an illicit affair with his secretary, Nanette, a 19-
year old girl, and begot a baby girl, Rona. Nanette sued Rodolfo for damages:
actual, for hospital and other medical expenses in delivering the child by I
caesarean section; moral, claiming that Rodolfo promised to marry her,
representing that he was single when, in fact, he was not; and exemplary, to teach
a lesson to like-minded Lotharios.
xxx
If you were the judge, would you award all the claims of Nanette? Explain. (3%)
(2009 Bar Question)

If Rodolfo’s marriage could not have been possibly known to Nanette or there is
no gross negligence on the part of Nanette, Rodolfo could be held liable for
moral damages.
If there is gross negligence in a suit for quasi-delict, exemplary damages could be
awarded.