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Charges Upon the CPG - Useless and unjust demands of the wife cannot be obligate the CPG to

the payment of litis expensas


Art. 121, FC. The conjugal partnership shall be liable for: - Expenses incurred by the wife in litigations concerning herself alone are
1. support: spouse, common children, legitimate children of her exclusive responsibility if she has sufficient means. In case she is poor,
either spouse; support of illegitimate children governed by the provisions litis expensas may be demanded from the CPG by application of Art. 122,
of on Support FC.
2. all debts and obligations contracted during the marriage a. by - If expenses are incurred in the production of the fruits on separate
the designate administrator-spouse for the benefit of the conjugal property of a spouse, and then the fruits are destroyed or are not
partnership of gains, b. by both spouses c. by one of the with the consent sufficient to even cover such expenses, the loss must be borne by the CPG.
of the other If there is a net remainder in the fruits, it belongs to the CPG. The CPG is a
3. debts and obligations contracted by either spouse without the usufructuary of the separate property of the spouse so it must suffer the
consent of the other to the extent that the family may have been losses in the production of the fruits.
benefited - Only minor repairs (those required by the deterioration caused by the
4. all taxes, liens, charges and expenses including major or minor natural use of the thing and are indispensable for its preservation) on the
repairs upon the conjugal partnership property separate property are chargeable against the CPG. Major repairs (those
5. all taxes and expenses for mere preservation made during the occasioned by extraordinary events, such as floods, storms, earthquakes,
marriage upon the separate property of either spouse fires, etc., affecting the substance of the thing and not merely its
6. expenses to enable their spouse to commence or complete a enjoyment) are chargeable against the owner-spouse.
professional, vocational or other activity for self-improvement
7. ante-nuptial debts of either spouse insofar as they have Art. 122, FC. The payment of personal debts contracted by the husband or
redounded to the benefit of the family the wife before or during the marriage shall not be charged to the conjugal
8. value of what is donated or promised by both spouses in favor partnership except insofar as they redounded to the benefit of the family.
of their common legitimate children for the exclusive purpose of Neither shall the fines and pecuniary indemnities imposed upon
commencing or completing a professional or vocational course or other them be charged to the partnership.
activity for self-improvement However, the payment of personal debts contracted by either
9. expenses of litigation between spouses unless the suit is spouse before the marriage, that of fines and indemnities imposed upon
found to be groundless. them, as well as the support of illegitimate children of either spouse, may
If the conjugal partnership is insufficient to cover the foregoing be enforced against the partnership assets, after the responsibilities
liabilities, the spouse shall be solidarily liable for the unpaid balance with enumerated in the preceding Article have been covered, if the spouse who
their separate properties. is bound should have no exclusive property or if it should be insufficient;
but at the time of the liquidation of the partnership, such spouse shall be
- Same as those in Art. 94
charged for what has been paid for the purpose above-mentioned.
- Family must be understood as limited to include only the spouses and
their legitimate children
- Nothing is said about personal debts contracted during the marriage but
- The partnership is not relieved of the obligation to support by the mere
Tolentino believes that the rule on personal debts before the marriage
fact that the spouses do not live under the same roof.
should be applied because it would be prejudicial to the creditors of the
- Amounts advanced by third persons for the subsistence of the wife and
spouses, when the latter have no property, to be absolutely deprived of
for funeral expenses (construction of a tombstone or mausoleum) upon
any recourse against the partnership properties, upon the existence of
her death are chargeable against the property of the CPG.
which they may even have relied in extending credit to the spouses.
- Expenses of litigation in the interest of children had by one spouse in a
- Provision was merely copied Art. 163 of the Civil Code which was
former marriage cant be charged upon the CPG because they are not
deficient for not including personal debts of the spouses incurred during
considered family
the marriage.
- If only one contracts obligation, it shall only bind the property of the
- Pecuniary indemnities upon one of the spouses are not chargeable
debtor-spouse unless it has benefited the family
against the CPG notwithstanding that the innocent spouse was present on
- If spouses agree that one of them is the manager of the CPG, such
the occasion of the commission of the wrongful acts by the other spouse.
manager can act alone without the consent of the other. Debts contracted
- There are cases, however, which such indemnities must be chargeable
by him will bind the partnership because there is a presumption that he is
against the CPG. Where the wrongful act benefited the partnership, it is
acting for the partnership.
unjust to make the partnership keep the benefit and impose the duty of
- Presumption may be rebutted (1) when the husband manifests
indemnification exclusively upon the spouse who committed the act.
clearly that he is acting privately for his exclusive interest and
- ex.: (1) if a husband, by using trust funds to support the family,
that the partnership should not be considered as obligated or
has committed estafa, the indemnification to the injured party
(2) when the nature of the contract or transaction itself may be
must come from the conjugal funds; otherwise the CPG would
such as to indicated that it is for the private interest of the
be unjustly enriched at the expense of the husband. (2) The
husband (ex.: when he borrows money for gambling or for
harboring of a vicious dog by a husband and wife for purposes
political campaign expenses beyond the maximum limit set by
of protecting the home from intruders, as an act for the benefit
law, or for donations to strangers)
of the partnership, and where, as a result of such act, injury is
- Debts contracted by the administrator for and in the exercise of the
suffered by another, under the circumstances which render the
industry or profession by which he contributes to the support of the family
harborers of the dog liable, the liability is a partnership liability.
is charged upon the CPG.
- After a decree of legal separation, the offending spouse shall have no
- When husband mortgages conjugal property to secure the indebtedness
right to any share in the profits earned by the conjugal partnership.
of a third person, the CPG is not liable for and deficiency judgment and
when the mortgaged property is sold to pay the third persons debt, the
CPG, as the owner of the property, may recover from the real debtor such
damages as it may have suffered.
Art. 123, FC. Whatever may be lost during the marriage in any game of properties. Magsajo then scheduled the auction sale of the properties
change, or in betting, sweepstakes or any other kind of gambling whether levied.
permitted or prohibited by law, shall be borne by the loser and shall not The respondents filed a case for injunction against petitioners to
be charged to the conjugal partnership but any winnings therefrom shall enjoin the auction sale alleging that the petitioners cannot enforce the
form part of the CPG. judgment against the conjugal partnership levied on the ground that the
subject loan did not redound to the benefit of the conjugal partnership.
DBP v. Adil, May 11, 1989 The lower court issued a restraining order in favor of the respondents.
AIDC then filed a petition for certiorari before the CA. CA issued
Facts: a TRO in favor of respondents allowing for the scheduled auction to
On February 10, 1940, spouses Particio Confesor and Jovita proceed.
Villafuerta obtained an agricultural loan from the Agricultural and AIDC, being the only bidder in the auction sale, was issued a
Industrial Bank, now the DBP, in the sum of P2,000. This is evidenced by a Certificate of Sale by Magsajo and upon expiration of the redemption
promissory note of the same date where the spouses bound themselves period, Magsajo issued the final deed of sale.
jointly and severally to pay in 10 equal yearly amortizations. As the CA, however, issued a decision granting the petition for
obligation remained outstanding and unpaid after the lapse of the 10-year certiorari and affirming the lower courts issuance of a TRO in favor of the
period, Confesor execute a secondary promissory note on April 11, 1961, respondents.
expressly acknowledging the loan and promising to pay on or before June AIDC filed a motion to dismiss claiming that the petition had
15, 1961 and agreeing to the foreclosure of the mortgage upon his failure become moot and academic with the consummation of the sale. The lower
to pay. court denied the motion and proceeded with the trial. The trial court then
The spouses again failed to pay on the specified date so the DBP promulgated its decision declaring the sale on execution null and void. The
filed a complaint against the spouses for the payment of the loan. CA also promulgated the lower courts decision.
The trial court ruled in favor of the DBP. The spouses appealed
and the same court reversed its decision and dismissed the complaint. Issue:
W/N a surety agreement entered into by the husband in favor
Issue: of his employer within the contemplation of Art. 121 and 122 of the Family
W/N the promissory note which was executed in consideration Code.
of a previous promissory note, the enforcement of which had been barred
by prescription, is valid. Held:
No. If the money or services are given to another person or
Held: entity, and the husband acted only as a surety or guarantor, that contract
Yes. Under Art. 1112 of the Civil Code, the right to prescription cannot, by itself, alone be categorized as falling within the context of
may be waived. When Confesor executed the second promissory note, he obligations for the benefit of the conjugal partnership. The contract of
effectively and expressly renounced and waived his right to the loan or services is clearly for the benefit of the principal debtor and not
prescription of the action covering the first promissory note. for the surety or his family.
The Court held that this is not a mere case of acknowledgement Moreover, PBM has a personality distinct and separate from the
of a debt that has prescribed but a new promise to pay the debt. The family of the spouses. The debt was clearly a corporate debt and AIDCs
consideration of the new promissory note is the pre-existing obligation right of recourse against Alfredo Ching as surety is only to the extent of his
under the first promissory note. corporate stockholdings.
Furthermore, the lower court erred in holding that in signing the Also, in decisions involving accommodation contracts of the
promissory note alone, Confesor cannot thereby bind his wife citing Art. husband, the requirement is that there must be a showing of some
166 of the New Civil Code which provides that unless the wife has been advantage which clearly accrued to the welfare of the spouses or benefits
declared a non compos or a spend thrift, or is under civil interdiction or is to his family or that such obligations are productive of some benefit to the
confined in a leprosarium, the husband cannot alienate or encumber any family. The petition did not show proof of any.
real property of the conjugal partnership without the wifes consent. Art. 122 (1) also provides that payment of personal debts
Under Art. 165 of the Civil Code, the husband is the administrator of the contracted by either spouse before or during the marriage shall not be
conjugal partnership and as such, all debts and obligations contracted by charged to the conjugal partnership except insofar as they redounded to
the husband for the benefit of the conjugal partnership. the benefit of the family. In this case, the loan was for the sole benefit and
advancement of PBM and not for the benefit of the family. The salaries
Ayala Investment v. CA, February 12, 1998 and benefits that petitioners claim as the benefits that the respondents
would anticipate because of the loan are not the benefits contemplated
Facts: by Art. 121 and 122 of the Family Code. The benefits contemplated by the
Philippine Blooming Mills (PBM) obtained a P50,300,000 loan provisions is that benefit derived directly from the use of the loan. The
from petitioner Ayala Investment and Development Corp. (AIDC). As alleged benefits here are incidental and speculative.
added security, respondent Alfredo Ching, Executive Vice President of Lastly, signing as surety is not an exercise of an industry or
PBM, executed security agreements making himself jointly and severally profession. No matter how often an executive acted as a surety for his
answerable with PBMs indebtedness to AIDC. employer, this should not be taken to mean that he had thereby embarked
PMB failed to pay the loan so AIDC subsequently filed a case for in the business of suretyship or guaranty. The loan is a corporate loan and
the sum of money against PBM and Alfredo. The trial court ruled in favor not a personal one. Hence, signing as a surety is not an exercise of an
of AIDC and ordered the respondents to pay. Upon AIDCs putting up of an industry or profession nor an act of administration for the benefit of the
P8,000,000 bond, a writ of execution was issued. Thereafter, petitioner family.
Magsajo, Sr., the appointed sheriff of the case caused the issuance and
service upon spouses Ching of a notice of sheriff sale of their conjugal
Carlos v. Abelardo, April 9, 2002 bidder. After one year without the property having been redeemed, the
property was consolidated and registered in the name of PNB Laoag.
Facts: Claiming that she has no knowledge of the loan nor has she
In October 1989, respondent and his wife Maria Teresa Carlos- consented to the mortgage instituted on the conjugal property, Estrella
Abelardo approached and requested the petitioner to advance the Aguete, the wife of Ros, she filed a complaint to annul the sale of the
amount of $25,000 for the purchase of a house and lot. To enable and property. She adds that her signatures on the documents were forged and
assist the spouses to conduct their married life independently, the that the loan did not redound to the benefit of the family.
petitioner issued a check in the name of a certain Pura Vallejo, seller of
the property, who acknowledged the receipt thereof. Issue:
When petitioner asked the spouses in July 1991 about the status W/N the CPG is liable for the loan.
of the loan, they acknowledged their obligation but pleaded that they
were not yet ready to make a definite settlement of the loan. Thereafter, Held:
respondent expressed violent resistance to the petitioners inquiries and Yes.
went as far as to making death threats. With regards to Aguetes claim that her signatures on the
Petitioner then made a formal demand for the payment but the documents were forged, the same were acknowledged before a notary
spouses again failed to comply with their obligation so the petitioner filed public, hence they are public documents. The execution of a document
a complaint for the collection of the money. that has been ratified before a notary public cannot be disproved by mere
As they were separated in fact for more than a year, the spouses denial of the alleged signer. Ros himself cannot bring action against PNB
filed separate answers to the complaint. The wife admitted securing a loan for no one can come before the courts with unclean hands. In their
together with her husband but claimed that the loan was payable on a memorandum before the trial court, petitioners themselves admitted that
staggered basis so she was surprised when petitioner demanded Ros forged Aguetes signatures.
immediate payment of the full amount. Furthermore, the application for the loan shows that it would be
Respondent, on the other hand, claimed that he devoted all his used exclusively for additional working capital of buy and sell of garlic and
efforts and skill in reviving the dormant construction firm of the plaintiff virginia tobacco, which Arguete confirmed was the business engaged into
and that the said amount was never intended as a loan but was his share by Ros. Aguete was also aware of loans contracted by Ros, but did not
of income on contracts obtained by him for the construction firm. know where he wasted the money. Debts contracted by the husband for
Petitioner presented as evidence an instrument executed by the and in the exercise of the industry or profession by which he contributes
wife acknowledging the loan but the husband did not sign the instrument. to the support of the family cannot be deemed to be his exclusive and
private debts.
Issue:
W/N the CPG is liable for the loan. Administration and Disposition of the CPG

Held: Art. 124, FC. The administration and enjoyment of the conjugal
Yes. First, the check that petitioner issued in the amount of partnership property shall belong to both spouses jointly. In case of
$25,000 was drawn from his personal account and not from the account disagreement, the husbands decision shall prevail, subject to recourse to
of the construction firm. Thus, respondents argument that the amount the court by the wife for proper remedy, which must be availed of within
was his share of income is devoid of merit. five years from the date of contract implementing such decision.
Second, Art. 121 of the Family Code provides that the conjugal In the event that one spouse is incapacitated or otherwise
partnership shall be liable for debts and obligations by either spouse for unable to participate in the administration of the conjugal properties, the
the benefit of the family. While respondent did not and refused to sign the other spouse may assume sole powers of administration. These powers
acknowledgement executed and signed by his wife, the loan redounded do not include disposition or encumbrance without authority of the court
to the benefit of the family because it was used to purchase the house and or the written consent of the other spouse. In the absence of such
lot which became the conjugal home of respondent and his family authority or consent the disposition or encumbrance shall be void.
However, the transaction shall be construed as a continuing offer on the
Carandang v. Heirs of Quirino de Guzman, November 29, 2006 part of the consenting souse and the third person, and may be perfected
as a binding contract upon the acceptance by the other spouse or
Facts: authorization by the court before the offer is withdrawn by either or both
offerors.
Issues:
- under the Civil Code, the husband was the administrator.
Held: - same as Art. 96 on the administration of the ACP
- absence of consent to the sale of property is void ab initio. Merely being
aware of a transaction is not consent.
Ros v. PNB, April 6, 2011 - under Art. 97, either spouse may dispose by will his or her interest in the
ACP but here, no similar provision is made but the same rule should apply.
Facts:
Joe Ros obtained a loan of P115,000 from PNB Laoag on October Art. 125, FC. Neither spouse may donate any conjugal partnership
14, 1974 and as a security for the loan, Ros executed a real estate property without the consent of the other. However, either spouse may,
mortgage involving a parcel of land. Upon maturity, the loan remained without the consent of the other, make moderate donations from the
outstanding. As a result, PNB instituted extrajudicial foreclosure conjugal partnership property for charity or on occasions of family
proceedings on the mortgaged property. After the extrajudicial sale rejoicing or family distress.
thereof, a Certificate of Sale was issued in favor of PNB Laoag as he highest
- donations must be made jointly
- donations made by the husband, without the consent of the wife, would In both transactions, the consent of Severino Tinitigan Sr.
be subject to attack as a fraudulent alienation, or an alienation impairing (Tinitigan Sr.), husband of Payuran and respondent, was not secured. On
the interest of the wife if the conjugal partnership property, under Art. May 22, 1975, Tinitigan Sr., as a conjugal partner and shareholder of
173. Molave Development Corporation which is a family corporation, filed a
- its nullity may be declared at the instance of the wife. complaint seeking to annul the contract of lease executed by Payuran in
- a donation made by the husband after the death of the wife is void as to favor of United Electronics Corporation and was later amended to include
the half that pertains to her in said property. restraining his relatives from encumbering or disposing properties in the
name of Molave Development Corporation or those in the name of the
Felipe v. Heirs of Maximo Aldon, February 16, 1983 spouses Tinitigan.
At the hearing of the preliminary injunction, the issue with the
Facts: lease of United Electronics Corporation was settled amicably. Tinitigan Sr.,
Maximo Aldon married Gimena Almosara in 1936. They bought however, subsequently filed a motion seeking judicial approval of sale of
several pieces of land between 1948 and 1950. In 1960-1962, the lands a two-storey residential house and lot which are conjugal properties. The
were divided into three lots. house is tenanted by Quintin Lim who is President and General Manager
In 1951, Gimena sold the lots to the spouses Eduardo Felipe and of Pentel.
Hermogena Felipe without the consent of Maximo. Tinitigan Sr. contends that the proposed sale for P300,000 to
On April 26, 1976, the heirs of Maximo, namely his widow and Quintin Lim, who was given priority right to purchase, was necessary to
their children, filed a complaint alleging that they were the owners of the pay outstanding conjugal obligations that were overdue in the amount of
three lots and that they had orally mortgaged the same to the spouses P256k and to forestall the foreclosure of the mortgaged conjugal
Felipe and that an offer to redeem the mortgage has been refused so they properties. The same property had been earlier leased by Payuran to
filed the complaint in order to recover the three parcels of land. Pentel with an option to buy at P350,000.
Spouses Felipe maintain that they had acquired the lots by CFI or Rizal granted the motion. Payuran and their children then
purchase and subsequent delivery to them by Gimena. filed an urgent motion for reconsideration alleging that the sale would
result in substantial and tremendous losses because the property sought
Issues: to be sold is a suitable condominium and/or hotel site and would
(1) W/N the sale of lands belonging to the conjugal partnership command a higher price.
made by the wife without the consent of the husband has legal effect. Two days later, Payuran filed against her husband a complaint
(2) W/N the petitioners acquired the land by acquisitive for legal separation and dissolution of conjugal partnership. The Pasay
prescription. Court after noting that the parties had agreed to the continuation of the
(3) W/N the right of action of Maximos children is barred by administration of the conjugal properties by Payuran, appointed her
the statute of limitations. administratix of the conjugal properties subject to certain conditions.
The CFI of Rizal, however, denied their motion for
Held: reconsideration and by a deed of absolute sale, Tinitigan Sr. sold the
(1) No. The law in effect back then was the Civil Code. Under Art. property for P315,000 not to Quintin Lim but to Chiu Chin Siong (Chiu).
165, the husband is the administrator of the conjugal partnership and
under Art. 172, the wife cannot bind the conjugal partnership without the Issue:
husbands consent, except in cases provide by law. W/N Tinitigan Sr. had the authority to sell the premises, they
Under Art. 1390, however, the sale was not a void contract but being under the administration of Payuran.
a voidable one. The provision states that a contract is voidable where on
of the parties is incapable of giving consent. Gimena had no capacity to Held:
give consent to the contract. That capacity belonged to both spouses. Yes. Art. 165 of the New Civil Code provides that the husband is
(2) The CA was correct when it held that petitioners could not the administrator of the conjugal partnership. The judicial decree
have acquired the lots by prescription because of bad faith which was seen appointing Payuran as administratix of the conjugal partnership cannot be
when Vicente Felipe, the son of petitioners, attempted in December 1970 treated as an exception because it was issued only after the CFI of Rizal
to have Gimena sign a ready-made document purporting to sell the lots to had granted Tinitgan Sr. the authority to sell the disputed property.
his parents. This was a clear indication that petitioners knew that the lots Besides, the appointment of Payuran as administratix was not absolute as
still did not belong to them it was made subject to certain conditions.
(3) The childrens cause of action accrued from the death of their Being administrator, however, does not give him outright
father in 1959 and they had thirty years to institute it under Art. 1141. authority to alienate or encumber conjugal assets as this kind of
They filed the action in 1976 which was well within the period. transaction requires the express or implied consent of the wife subject to
certain exceptions. But this was precisely why Tinitigan Sr. sought judicial
Tinitigan v. Tinitigan Sr., October 30, 1980 approval of the sale of the property. As the evidence warrants, the sale of
the property was necessary to answer for a big conjugal liability which
Facts: might endanger the familys economic standing.
On March 25, 1975, petitioners Pentel Merchandising Co., Inc.
(Pentel) and Teofista Payuran Tinitigan (Payuran) entered into a contract Guiang v. CA, June 26, 1998
lease of a residential house whereby for a year of 4 years, Payuran shall
lease to Pentel the house at a rental of P1,500 per month with option to Facts:
buy the same within the term of the lease for P350,000. Respondent Gilda Corpuz and Judie Corpuz were married on
On April 22, 1975, Payuran and her three children, Efren, Elsa, December 24, 1968 in Bacolod and have three children. Sometime on
and Severino Jr., leased to United Electronics Corporation a factory February 14, 1983, the couple, with Gilda as vendee, bought a 421-square
building together with the portion of the land on which it is erected. meter lot in Koronadal, South Cotabato from Manuel Callejo.
Sometime on April 22, 1988, the couple sold one-half portion of illegal contract, is also void and inexistent. Hence, both the Deed of
their lot to the petitioners. The latter have since occupied the one-half Transfer of Rights and the amicable settlement are null and void.
portion and built their house thereon making them adjoining neighbors. Neither can the settlement be considered a continuing offer
Gilda left for Manila sometime in June 1989 to look for work because it did not mention a continuing offer to sell the property or an
abroad but unfortunately became a victim of an unscrupulous illegal acceptance of such a continuing offer.
recruiter. She wasnt able to go abroad and stayed for some time in
Manila. Her departure for Manila to look for work was with the consent of Relucio v. Lopez, January 16, 2002
her husband.
After Gildas departure, Judie seldom went home to the conjugal Facts:
dwelling and stayed most of the time at his place of work. Their daughter On September 15, 1993, respondent Angelina Mejia Lopez filed
Harriet went to school but was working at the same time as household a petition for appointment as sole administratix of conjugal partnership
help of, and staying at, the house of Mr. Panes. Her brother Junie was not properties against Alberto Lopez and petitioner Imelda Relucio. Lopez
working. Her younger sister Jodie was going to school. Gilda sometimes alleged that sometime in 1968, Alberto, who is legally married to her,
sent them money. abandoned her and their four legitimate children and arrogated unto
Sometime in January 1990, Harriet learned that Judie intended himself full and exclusive control of their and administration of the
to sell the remaining one-half of their land, including their house, to the conjugal properties, spending and using them for his sole gain and benefit
spouses Guiang. Harriet then informed Gilda who then objected to the to the total exclusion of Lopez and their children, and that after
sale. Harriet, however, did not inform Judie but instead gave the letter to abandoning his family, cohabited with Relucio since 1976.
Mrs. Guiang so that Mrs. Guianf would advise Judie. Alberto and Relucio, during their period of cohabitation since
But Judie pushed through with the sale and sold the land for 1976, have amassed a fortune consisting mainly of stockholdings in Lopez-
P30,000. Junie and Harriet signed the document as witnesses. Four days owned or controlled corporations and several other properties. These
later, to cure the defect in the sale, Mrs. Guiang executed another properties, which are under the name of Alberto and Relucio, have been
agreement over the land with Manuela Callejo, the widow of the original acquired principally through the actual contribution of money, property,
owner of the land, who signed as vendor for a consideration of P9,000. and industry of Alberto with minimal actual contribution from Relucio.
Judie signed as a witness to the sale. The new sale describes the lot sold Alberto, in order to avoid his obligations as a father and
as Lot 8, Block 9, (LRC) Psd-165408 but it is obvious from the evidence that husband, excluded Lopez and their children from sharing or benefiting
the correct lot is Lot 8, Block 9, (LRC) Psd-165409, the lot earlier sold to from the conjugal properties and its fruits and placed substantial portions
spouses Corpuz. of these conjugal properties in the name of Relucio.
Gilda returned on March 11, 1990 and found her children Lopez also averred that in the 25 years since Alberto abandoned
staying with other households. She gathered her children and stayed at them, he has sold and removed properties, assets, and income belonging
their house Judie was nowhere to be found. She was told by her children to the conjugal partnership and spent the proceeds for his sole benefit and
that he already had a new wife. For staying at her house, she was that of Relucio and their two illegitimate children.
complained against by spouses Guiang before the Barangay authorities.
Subsequently, the parties signed an amicable settlement. Issues:
(1) W/N respondents petition for appointment as sole
Issues: administratix of the conjugal property against her husband established a
(1) W/N the contract of sale was merely voidable. cause of action against petitioner.
(2) W/N such contract was ratified by Gilda when she entered (2) W/N petitioners inclusion as party defendant is essential in
into an amicable settlement with the petitioners. the proceedings for a complete adjudication of the controversy.

Held: Held:
(1) No. The contract was void. (1) No. The elements of a cause of action are (1) a right in favor
Petitioners contend that the questioned Deed of Transfer was of the plaintiff by whatever means and under whatever law it arises or is
validly executed by the parties in good faith and for valuable consideration created, (2) an obligation on the part of the named defendant to respect
and that the absence of Gildas consent merely rendered the Deed or not violate such right, and (3) an act or omission on the part of such
voidable under Art. 1390 of the Civil Code. defendant in violation of the right of the plaintiff or constituting a breach
Art. 1390, however, refers to contracts visited by vices of of the obligation of the defendant to the plaintiff for which the latter may
consent. In this case, Gildas consent was totally inexistent and the maintain an action for recovery of damages.
contract falls within Art. 124 of the Family Code which provides that in the The complaint is by an aggrieved wife against her husband.
absence of authority or consent of the other spouse, the disposition or Nowhere in the allegations does it appear that relief is sought against
encumbrance of the conjugal partnership property shall be void. petitioner. The first cause of action is for judicial appointment of
The nullity of the contract of sale is premised on the absence of respondent as administratix of the conjugal partnership. Petitioner is a
Gildas consent. To constitute a valid contract, the Civil Code requires the complete stranger to this cause of action. There is no right-duty relation
concurrence of (1) cause, (2) object, and (3) consent. In this case, the third between petitioner and respondent that can possibly support a cause of
element is missing. action.
(2) Petitioners insist that the contract was ratified through the The second cause of action is for an accounting by Alberto. The
subsequent amicable settlement between them and Gilda. accounting is an incident of marriage. Petitioner has nothing to do with
The trial court correctly held that the Deed of Transfer of Rights their marriage.
cannot be ratified even by an amicable settlement. The participation by The third cause of action is for forfeiture of Albertos share in
some barangay authorities in the amicable settlement cannot validate an the co-owned property of him and Relucio. It does not involve the issue of
invalid act. The amicable settlement was another contract that was the validity of the co-ownership between Alberto and Relucio.
direct offshoot of the Deed of Transfer of Rights and Art. 1422 of the Civil (2) No. Petitioner is not a real party in interest in this case
Code provides that a contract which is the direct result of a previous because she would not be affected by any judgment. If she is not a real
party in interest, she cannot be an indispensable party. Nor can she be a incapacitated or otherwise unable to participate in the administration of
necessary party because Lopez would be accorded complete relief if the conjugal properties, the other spouse may assume sole powers of
Alberto were ordered to account for his alleged conjugal partnership administration. These powers do not include the powers of disposition or
property with Lopez, give support to Lopez and their children, turn over encumbrance which must have the authority of the court or the written
his share in the co-ownership with Relucio, and dissolve his conjugal consent of the other spouse. In the absence of such authority or consent,
partnership with Lopez. the disposition or encumbrance shall be void.
The properties subject of the contracts in this case were
Jader-Manalo v. Camaisa, January 23, 2002 conjugal. Hence, for the contracts to sell to be effective, the consent of
both spouses must be present.
Facts: Even granting that Norma actively participated in negotiating for
Petitioner was interested in buying two properties and the sale which she denied, her written consent to the sale is required by
negotiated for their purchase through a real estate broker, Mr. Proceso law for its validity. Norma may have been aware of the negotiations but
Ereno, authotized by respondent spouses. Petitioner made a visual being merely aware of a transaction is not consent.
inspection of the properties with the real estate broker and was shown Lastly, petitioners assertion that since Norma unjustly refuses
the tax declarations real property tax payment receipts, location plans, to affix her signatures to the contracts to sell, court authorization under
and vicinity maps relating to the properties. Petitioner then met with the Art. 124 of the Family Code is warranted.
vendors (respondent spouses). She made a definite offer to buy the The argument is bereft of merit because court authorization
properties to respondent Edilberto Camaisa with the knowledge and under Art. 124 is only resorted to in cases where the spouse who does not
conformity of his wife, respondent Norma Camaisa in the presence of the give consent is incapacitated. In this case, petitioner failed to allege and
real estate broker. Petitioner and Edilberto agreed upon the price and the prove that Norma was incapacitated to give her consent to the contracts.
mode of payment. The agreement was handwritten by petitioner and
signed by Edilberto. When petitioner pointed out the conjugal nature of Villanueva v. Chiong, June 5, 2008
the properties, Edilberto assured her of his wifes conformity and consent
to the sale. Facts:
The following day, petitioner, the real estate broker, and Respondents Florentino and Elisera Chiong were married
Edilberto met in the latters office for the formal signing of the typewritten sometime in January 1960 but have been separated in fact since 1975.
Contracts to Sell. After signing, petitioner delivered two checks to During their marriage they acquired a lot in Dipolog. Sometime in 1985,
Edliberto in the presence of the broker and an employee in Edilbertos Florentino sold the one-half western portion of the lot to petitioners for
office. The contracts were then given to Edilberto for the formal affixing P8,000 payable in installments. Thereafter, Florentino allowed the
of his wifes signature. petitioners to occupy the lot and build a store, a shop, and a house
The following day, petitioner received a call from Norma thereon. After their last installment payment, petitioners demanded from
requesting a meeting to clarify some provisions of the contracts. During respondents the execution of a deed of sale in their favor. Elisera,
the meeting, handwritten notations were made on the contracts to sell, however, refused to sign a deed of sale.
so they arranged to incorporate the notations and to meet again for the
formal signing of the contracts. Issues:
When they met again, petitioner was surprised when (1) W/N the subject lot is a conjugal property.
respondent spouses informed her that they were backing out of the (2) W/N the sale by Florentino without Eliseras consent valid.
agreement because they needed spot cash for the full amount of the
consideration. Petitioner reminded the spouses that the contracts to sell Held:
had already been duly perfected and that Normas refusal to sign would (1) Petitioners contend that the lot is the exclusive property of
unduly prejudice her. Norma still refused to sign prompting petitioner to Florentino because respondents were already separated in fact at the time
file a complaint. of the sale and that the share of Elisera had previously been sold to
Respondents argue that the agreement between petitioner and spouses Castro and Cuenca, and that while there was no formal liquidation
Edilberto was that the sale was still subject to the approval and conformity of their properties, their separation in fact resulted in its actual liquidation,
of Norma and when Norma refused to give her consent, her refusal was and that assuming arguendo that the lot is still conjugal, the transaction
duly communicated by Edilberto to petitioner. The checks issued by should not be entirely void as Florentino had one-half share over the lot.
petitioner were returned and respondents claim that her acceptance of Elisera counters that the sale of the lot without her knowledge,
the returned checks signified her assent to the cancellation of the sale. consent, or authority was void because the lot is conjugal property. The
Petitioner argues that the trial court erred when it entered into sale was neither authorized by any competent court nor did it redound to
a summary judgment in favor of respondents there being a genuine issue her or their childrens benefit. As proof of the conjugal nature of the lot,
of fact, that the issue of whether the contracts to sell between petitioner she presented several documents which she and her husband had
and respondents was perfected is a question of fact necessitating a trial executed.
on the merits. Respondents separation in fact neither affected the conjugal
nature of the lot nor prejudiced Eliseras interest over it. Under Art. 178 of
Issue: the Family Code, the separation in fact between husband and wife without
W/N the husband may validly dispose of a conjugal property judicial approval shall not affect the conjugal partnership. The conjugal
without the wifes written consent. nature of the lot was also admitted by Florentino in the Deed of Absolute
Sale where he declared his capacity to sell as co-owner of the subject lot.
Held: (2) The sale by Florentino without the consent of Elisera is not
No. The law requires that the disposition of the conjugal void ab initio but merely voidable. Without the wifes consent, the
property by the husband as administrator in appropriate cases requires husbands alienation or encumbrance of the conjugal property prior to the
the written consent of the wife, otherwise, the disposition is void. Art. 124 effectivity of the Family Code is not void but merely voidable. Art. 166 of
of the Family Code provides that in the event that one spouse is the Civil Code provides that the husband cannot alienate or encumber
any real property of the conjugal partnership without the wifes consent. The Court also took into consideration other circumstances in
Art. 173 of the Civil Code provides that the wife may, during the marriage, deciding the case.
and within ten years from the transaction questioned, ask the courts for First, the trial court rules that petitioner was not entitled to
the annulment of any contract of the husband entered into without her judicial foreclosure because the deed of real estate mortgage was
consent, when such consent is required. executed without Enricos consent. Accordingly, since the deed was
Applying Art. 166, the requisite consent of both Elisera and executed by Edna lacks the consent or authority of Enrico, the deed is void
Florentino is necessary for the sale. In this case, the requisite consent of pursuant to Art. 96 of the Family Code. This means that the petitioner can
Elisera was not obtained when Florentino sold the lot. And accordingly, only recover the loan by instituting a personal action against Edna which
applying Art. 173, the contract entered by Florentino is annullable at should be filed where petitioner resides or where the respondents reside.
Eliseras instance. Also, the subsequent special power of attorney cannot be made
Petitioners contention that assuming arguendo the property is to retroact and validate the mortgage.
still conjugal, the transaction should not be entirely voided as Florentino In an invalid mortgage, the obligation still matures and becomes
had one-half share over the lot lacks merit. It has been held before that in demandable in accordance with the stipulation pertaining to it. What is
a case involving the annulment of a sale executed by the husband without lost is merely the right to foreclose the mortgage and in case of nullity, the
the consent of the wife, the alienation must be annulled in its entirety and mortgage deed remains as evidence of a personal obligation of the debtor
not only insofar as the share of the wife in the conjugal property is and the amount due to the creditor may be enforced in an ordinary action.
concerned. The trial courts erred when they ruled that Ednas liability is not
affected by the illegality of the mortgage. Art. 124 of the Family Code
Flores v. Lindo, April 13, 2011 states that a transaction shall be construed as a continuing offer on the
part of the consenting spouse and the third person, and may be perfected
Facts: as a binding contract upon the acceptance by the other spouse or
On October 1995, Edna Lindo obtained a loan from petitioner authorization by the court before the offer is withdrawn by either or both
Arturo Flores amounting to P400,000. To secure the loan, Edna executed offerors. In this case, the execution of the SPA is the acceptance by the
a Deed of Real Estate Mortgage covering a property in the name of Edna other spouse that perfected the continuing offer as a binding contract
and her husband Enrico Lindo, Jr. Edna also signed a Promissory Note and between the parties, making the deed a valid contract.
the Deed for herself and for Enrico as his attorney-in-fact. However, as the CA noted, petitioner allowed the decisions of
Edna issued three checks as partial payments for the loan. All the trial courts to become final and executory without asking for an
checks, however, were dishonored for insufficiency of funds, prompting alternative relief and merely relied on the declarations of those courts that
petitioner to file a complaint for foreclosure of mortgage with damages he could file a separate personal action and thus failed to observe the rules
against respondents. on multiplicity of suits, closing his avenue for recovery of the loan.
The trial court ruled that petitioner was not entitled to judicial Nevertheless, petitioner still has a remedy under the law under
foreclosure of the mortgage because the deed was executed by Edna the principle of unjust enrichment provided by Art. 22 of the Civil Code.
without the consent and authority of Enrico. The deed was executed on The principle is applicable in this case since Edna admitted obtaining a loan
October 31, 1995 while the Special Power of Attorney (SPA) was executed and the same has not been fully paid without a just cause. And the
by Enrico on November 4, 1995. The trial court, however, also said that principle of unjust enrichment, being a substantive law, should prevail
petitioner was not precluded from recovering the loan from Edna as he over the procedural rule on multiplicity of suits.
could file a personal action against her.
Petitioner then filed a complaint for sum of money with Dissolution of the CPG
damages against respondents.
Respondents admitted the loan but claimed that it only Art. 126, FC. The conjugal partnership terminates:
amounted to P340,000 and that Enrico was not a party to the loan because (1) Upon the death of either spouse;
it was contracted by Edna without his signature. Respondents prayed for (2) When there is a decree of legal separation;
the dismissal of the case on the grounds of improper venue, res judicata, (3) When the marriage is annulled or declared void; or
and forum-shopping. (4) In case of judicial separation of property during the marriage under
The trial court ruled in favor of petitioner, but the CA ruled in Articles 134 to 138.
favor of respondents.
- all the provisions from 116 to 125 will cease to apply
Issue: - whatever is acquired by the surviving spouse after the dissolution of the
W/N the CA committed a reversible error in dismissing the partnership by death, or by either spouses after the termination of the
complaint for collection of sum of money on the ground of multiplicity of partnership for other reasons, whether the acquisition be made by his or
suits. her labor or industry, or whether by onerous or lucrative title, forms a part
of his or her own capital, in which no one can claim a share
Held: - an obligation incurred by the surviving spouse after the death of the
Yes. other can no longer be charged against the property of the conjugal
The rule is that a mortgage-creditor has a single cause of action partnership which had been dissolved by such death
against a mortgage-debtor, which is to recover the debt. The creditor has - after the death of a spouse, any portion of the community property can
the option of either filing a personal action for collection of sum of money be sold if it is necessary in order to pay outstanding obligations of the
or instituting a real action to foreclose on the mortgage security. An partnership as long as such sale is made in the manner and with the
election of the first bars recourse to the second, otherwise there would be formalities established by the Rules of Court for the sale of property of the
multiplicity of suits in which the debtor would be tossed from one venue deceased
to another depending on the location of the mortgaged properties and the - any sale or transaction effected without said formalities shall be null and
residence of the parties. void except as regards the portion belonging to the vendor
- applies not just to sale but also to mortgages
- the law recognizes the validity of transactions that are null and void so (4) The debts and obligations of the conjugal partnership shall
long as they do not exceed the portion which pertains to the surviving be paid out of the conjugal assets. In case of insufficiency of said assets,
spouse who made the contract the spouses shall be solidarily liable for the unpaid balance with their
- dissolution must be recorded in the registry of property for the benefit separate properties, in accordance with the provisions of paragraph (2) of
of third persons Article 121.
- when the husband is the administrator of the conjugal property, upon (5) Whatever remains of the exclusive properties of the spouses
the death of the wife, he becomes a trustee of the highest order and is not shall thereafter be delivered to each of them.
permitted by law to hold that estate or any portion thereof adversely to (6) Unless the owner had been indemnified from whatever
those whose benefit the law imposes upon him the duty of administrator source, the loss or deterioration of movables used for the benefit of the
- if after the death of one spouse and there is no liquidation, but the family, belonging to either spouse, even due to fortuitous event, shall be
surviving spouse and the heirs of the deceased spouse keep the properties paid to said spouse from the conjugal funds, if any.
undivided, it doesnt mean that the conjugal partnership continues. The (7) The net remainder of the conjugal partnership properties
parties in such a case impliedly establish a co-ownership among shall constitute the profits, which shall be divided equally between
themselves and rights are then governed by the rules on co-ownership husband and wife, unless a different proportion or division was agreed
upon in the marriage settlements or unless there has been a voluntary
Art. 127, FC. The separation in fact between husband and wife shall not waiver or forfeiture of such share as provided in this Code.
affect the regime of conjugal partnership, except that: (8) The presumptive legitimes of the common children shall be
(1) The spouse who leaves the conjugal home or refuses to live delivered upon the partition in accordance with Article 51.
therein, without just cause, shall not have the right to be supported; (9) In the partition of the properties, the conjugal dwelling and
(2) When the consent of one spouse to any transaction of the the lot on which it is situated shall, unless otherwise agreed upon by the
other is required by law, judicial authorization shall be obtained in a parties, be adjudicated to the spouse with whom the majority of the
summary proceeding; common children choose to remain. Children below the age of seven years
(3) In the absence of sufficient conjugal partnership property, are deemed to have chosen the mother, unless the court has decided
the separate property of both spouses shall be solidarily liable for the otherwise. In case there is no such majority, the court shall decide, taking
support of the family. The spouse present shall, upon petition in a into consideration the best interests of said children.
summary proceeding, be given judicial authority to administer or
encumber any specific separate property of the other spouse and use the Methods of Liquidation
fruits or proceeds thereof to satisfy the latter's share. 1. Extrajudicial partition between the husband and wife or their heirs
2. By an ordinary action for partition
- same as Art. 100 3. By testate or intestate proceedings

Art. 128, FC. If a spouse without just cause abandons the other or fails to - any of the three may be followed when the CPG is dissolved by death.
comply with his or her obligation to the family, the aggrieved spouse may - if the dissolution takes place by annulment of marriage, legal separation,
petition the court for receivership, for judicial separation of property, or or judicial separation of property, only the first two are legally applicable.
for authority to be the sole administrator of the conjugal partnership - they are alternative, and not cumulative, in the sense that they cannot
property, subject to such precautionary conditions as the court may be availed of at the same time, inasmuch as a chaotic and anomalous
impose. situation would result if the conjugal property were administered,
The obligations to the family mentioned in the preceding liquidated, and distributed at the same time in an intestate or
paragraph refer to marital, parental or property relations. testamentary proceeding and in an ordinary action for liquidation and
A spouse is deemed to have abandoned the other when he or partition of property.
she has left the conjugal dwelling without intention of returning. The - no funds or property may be adjudicated to the heir or legal
spouse who has left the conjugal dwelling for a period of three months or representation of the deceased without the liquidation being first
has failed within the same period to give any information as to his or her terminated
whereabouts shall be prima facie presumed to have no intention of - an extrajudicial partition of the inheritance made among themselves by
returning to the conjugal dwelling. the widow and the heirs of the deceased husband who are of legal age,
pending an action for the acknowledgment of a natural child brought
- same as Art. 101 against the predecessor during his lifetime, and his heirs, by substitution,
- separation of property may be ordered if the husband abandons his wife after his death, is illegal and void, for the reason that such action implies
a claim for inheritance.
Liquidation of Assets and Liabilities - the liquidation of the partnership is implied in the action for partition.
- if there are debts upon the death of one of the spouses, and the parties
Art. 129, FC. Upon the dissolution of the conjugal partnership regime, the interested cannot agree on the settlement of said debts, the liquidation of
following procedure shall apply: the partnership can take place only in a judicial administration proceeding.
(1) An inventory shall be prepared, listing separately all the it is in an ordinary action for liquidation and partition, or a testamentary
properties of the conjugal partnership and the exclusive properties of each or intestate proceeding that all questions regarding the character of the
spouse. various kinds of property, whether paraphernal, husbands capital,
(2) Amounts advanced by the conjugal partnership in payment conjugal, or subject to collation, should be raised and determined.
of personal debts and obligations of either spouse shall be credited to the
conjugal partnership as an asset thereof. Steps in Liquidation
(3) Each spouse shall be reimbursed for the use of his or her 1. The formation if the inventory, separately listing the conjugal properties
exclusive funds in the acquisition of property or for the value of his or her and the separate properties of the spouses.
exclusive property, the ownership of which has been vested by law in the
conjugal partnership.
- only the actual property existing in the community at the time in its entirety. The heirs as co-owner have each full ownership of his part
of the partnership is terminated can be included in the inventory as and he may alienate, mortgage, or assign it.
partnership assets
- in the following cases, an inventory of the conjugal partnership Art. 131, FC. Whenever the liquidation of the conjugal partnership
property is not necessary: properties of two or more marriages contracted by the same person
a. when one of the spouses, or his heirs, should before the effectivity of this Code is carried out simultaneously, the
renounce the benefits of the partnership. But when the respective capital, fruits and income of each partnership shall be
renunciation is prejudicial to creditors, the latter may require an determined upon such proof as may be considered according to the rules
inventory to be made so that they may enforce their clams on of evidence. In case of doubt as to which partnership the existing
whatever share may be adjudicated to the debtor properties belong, the same shall be divided between the different
b. when separation of property has preceded the partnerships in proportion to the capital and duration of each.
dissolution of the marriage. Since there would have been a
liquidation already, there would be no need for another - the conjugal properties of the first marriage shall first be liquidated so as
liquidation. to determine the share of the first wife, which shall pass to the children of
c. when the partnership is dissolved by death of one the first marriage, and the share corresponding to the deceased husband.
of the spouses, and the deceased leaves no heir except the - likewise, the conjugal properties of the second marriage shall be
surviving spouse. liquidated, so as to determine the half corresponding to the surviving
d. when the dissolution is cause by legal separation, widow, and the other half corresponding to the deceased husband.
and the share of the guilty spouse is forfeited to the innocent - the properties corresponding to the deceased husband in the first and
spouse, there being no children. second marriages, constitute his estate which will be distributed among
2. Mutual restitutions his heirs and legatees.
- equilibrium in the patrimony of the spouses and the conjugal - in the absence of proof showing the conjugal property belonging to each
partnership is to be maintained so that one would not be enriched at the of the partnerships to be liquidated, the total mass of the property in all
expense of the other. the partnerships shall be divided among such partnerships on the basis of
- does not involve the actual transfer of properties, but only the a double proportion: (1) on the basis of duration of each partnership and
crediting or inclusion of the value to be restored as assets of the conjugal (2) on the basis of the separate property brought to the marriage by the
partnership or assets of the spouse who was made the advance, in the respective spouses.
computation.

3. Payment of debts
=

- if the conjugal partnership property is not enough to pay for


the partnership debts, the separate properties of the spouses, remaining Art. 132, FC. The Rules of Court on the administration of estates of
after the payment of their own creditors, shall be solidarily liable. deceased persons shall be observed in the appraisal and sale of property
4. The net remainder of the conjugal properties shall be divided equally of the conjugal partnership, and other matters which are not expressly
between the spouses and/or their respective heirs, unless a different determined in this Chapter.
proportion has been agreed upon in their marriage settlement, or unless
the surviving spouse or the heirs of the deceased renounce their shares. Art. 133, FC. From the common mass of property support shall be given to
5. The presumptive legitimes of the common children shall then be the surviving spouse and to the children during the liquidation of the
delivered, to be taken from the total properties. inventoried property and until what belongs to them is delivered; but from
6. Whatever remains after all the payments and deductions shall be this shall be deducted that amount received for support which exceeds
delivered to the spouses and/or their respective heirs. the fruits or rents pertaining to them.

- if a spouse is a creditor and at the same time a debtor of the conjugal - under the Rules of Court, the widow and minor or incapacitated children
partnership, compensation should take place, and only the balance will be of a deceased person, during the settlement of the estate, shall receive,
either payable to or by such spouse. under the direction of the court, allowances as are provided by law
- same as Art. 102 - while the Rules of Court limit the right to allowance to the widow and
minor or incapacitated children, the Family Code refers to surviving
Art. 130, FC. Upon the termination of the marriage by death, the conjugal spouse and children without qualification. Thu Code thus gives allowance
partnership property shall be liquidated in the same proceeding for the also to the widower and to children of age, or married, or even gainfully
settlement of the estate of the deceased. employed without distinction.
If no judicial settlement proceeding is instituted, the surviving - Art. 132 prevails over the Rules of Court as it points out that the Rules of
spouse shall liquidate the conjugal partnership property either judicially Court apply only as to matters not expressly determined in the Family
or extra-judicially within six months from the death of the deceased Code.
spouse. If upon the lapse of the six-month period no liquidation is made, - the right to allowance recognized in the Family Code is substantive in
any disposition or encumbrance involving the conjugal partnership nature and cannot be qualified by the Rules of Court, which refer only to
property of the terminated marriage shall be void. procedural matters
Should the surviving spouse contract a subsequent marriage - grandchildren are not entitled to allowance as this is limited to children.
without compliance with the foregoing requirements, a mandatory But in the absence of legitimate children, parents may be given support
regime of complete separation of property shall govern the property during the liquidation
relations of the subsequent marriage. - in the case of other compulsory heirs other than those already
mentioned, such allowances are considered advances on their legitimes.
- for mortgages during proceedings, the fact alone that in the settlement - if the allowance given exceeds what pertains to them, such excess is
of the estate of the deceased spouse the entire conjugal partnership considered as an advance upon such shares.
property is under administration is not sufficient to invalidate a mortgage
- the widows right to support during the settlement of the estate of the
deceased husband depends entirely upon whether or not she has any
share of any right at all in the estate under administration.

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