Вы находитесь на странице: 1из 32

Reference No.: BatStateU-REC-COL-05 Effectivity Date: January 3, 2017 Revision No.

: 00

COLLEGE OF LAW
SYLLABUS/ COURSE OUTLINE
PROPERTY 1
Second Semester AY 2017-2018

VISION
A globally recognized institution of higher learning that develops competent and morally upright
citizens who are active participants in nation building and responsive to the challenges of 21st
century.

MISSION
Batangas State University is committed to the holistic development of productive citizens by
providing a conducive learning environment for the generation, dissemination and utilization of
knowledge through innovative education, multidisciplinary research collaborations, and
community partnerships that would nurture the spirit of nationhood and help fuel economy for
sustainable development.

CORE VALUES
Faith Integrity
Patriotism Mutual Respect
Human Dignity Excellence

COURSE TITLE: PROPERTY


Course Code: LAW 612 Document Code:
Prerequisite: Property Revision No.:
Instructor: Atty. Ethel A. Malabanan Issue No.:
Year Level: Second Year Issued Date:
Credit Units: 4 Effectivity Date:

COURSE DESCRIPTION: The study of the different kinds of property, the elements and
characteristics of ownership, possession, usufruct, easements or servitudes, nuisance, and the
different modes of acquiring ownership.

GENERAL INSTRUCTIONS:

a. Students must come to class prepared to recite the assignments for the day. Soft
copies of the Supreme Court decisions may be downloaded from
http://sc.judiciary.gov.ph and www.lawphil.net.
b. The use of cellular phones is strictly prohibited during class. Cellular phones
must be turned off or placed in silent mode during class. If a student needs to
attend to an emergency call, he/she may do so outside the classroom.
c. Inquiries may be sent via email at attyeram2018@gmail.com

REFERENCE BOOKS:

Books on “Property” by the following authors:

1 This outline is patterned on the outline of Prof. Ed Labitag of the UP College of Law on the same subject.

1
1. Senator Arturo Tolentino
2. Prof. Elmer T. Rabuya

GRADING SYSTEM:

The final grade will be determined as follows:

Quizzes 10 %
Recitation 20 %
Midterm Exams 30 %
Final Exams 40 %
100 %
REQUIREMENTS:

1. Recitation – Every meeting or class day, students will be called randomly to recite on the
provisions or cases assigned for the day. In case the student is called, but he is absent then
he will be given a grade of “5” for that day. (Note: Reporting on a specific topic will be
conducted. The student’s grade in this activity would be included in this portion).
2. Quizzes – Quizzes may be given on topics or cases assigned for the day or for topics
discussed in previous sessions. Generally, quizzes, surprise or otherwise, will be given at
the start of the class.
3. Mid-term exam – The Mid-term exam is a two (2) hour exam to be given on the date
assigned by the College for the class exam. It is a comprehensive exam testing the ability
of the student to apply the knowledge of the law in practical situations. It will also include
objective type of questions.
4. Final Exam – The final exam is a two (2) hour exam to be given on the date assigned by
the College for the class exam.

I. DEFINITION

A. Classification under the Civil Code – Art. 414

1. Immovable or Real Property – Art. 415

a. by Nature – (1) & (8)


b. by Incorporation – (2), (3), (7)
c. by Destination – (4), (5), (6), (9)

d. by Analogy – (10)

2. Movable or Personal Property – Arts. 416 – 417

Standard Oil Co. of New York v. Jaramillo 44 Phil 630


Davao Sawmill v. Castillo 61 Phil 709
Berkenkotter v. Cu Unjieng 61 Phil 663
Mindanao Bus Co. v. City Assessor and Treasurer 6 SCRA 197
Makati Leasing v. Wearever 122 SCRA 296
Bicerra v. Teneza 6 SCRA 649
Serg’s Products v. PCI Leasing and Finance G.R. No. 137705 August 22, 2000
Tumalad v. Vicencio 41 SCRA 143

2
Tsai v. Court of Appeals 366 SCRA 324
Bd. of Assessment Appeals v. Meralco 10 SCRA 63
Benguet Corp. v. Central Bd. of Assessment Appeals 218 SCRA 271
Marcelo Soriano v. Sps. Galit G.R. No. 156295 1/29/2003
Sibal v. Valdez 50 Phil 521
Punzalan v. Lacsama 121 SCRA 381
FELS Energy Inc. v. Province of Batangas Feb 16, 2007 G.R. Nos. 168557 &
170628
Provincial Assessor of Agusan del Sur v. Filipinas Palm Oil Plantation G.R. No.
183416 October 5, 2016

3. Importance and Significance of Classification


a. From point of view of:
i. Criminal Law – nature of the crime
ii. Form of contracts involving movables or
immovables – public documents or verbal contract
iii. Prescription – filing action
iv. Venue
v. Taxation

3. Differences between Real Rights and Personal Rights

B. By Ownership – PUBLIC OR PRIVATE OWNERSHIP

1. Res Nullius
2. Public Domain, (cf. Patrimonial – those that are not, or are no
longer, for public use or public service or property of the State
owned by it in its private or proprietary capacity) (Arts. 419, 420-
422, 424)
n.b. Art 422 – not self executing.

a. Property of State – Art. 420-422


i. For Public Use
ii. For Public Service
iii. For Development of National Wealth – minerals,
coal, oil, forest and other natural resources

Municipality of Cavite v. Rojas 30 Phil. 602


Heirs of Malabanan v. Republic Sept 3, 2013 GR No. 179987
Chavez v. Public Estates Authority 384 SCRA 152
On Reconsideration: Chavez v. Public Estates Authority G.R. No. 133250 May 6,
2003
Usero v. CA G.R. No. 152115 Jan 26, 2005
Manila International Airport Authority v. CA 495 SCRA 591

b. Property of Municipal Corporations – Art. 424, par. 1


i. For Public Use including Public works for Public
Service

Levy Macasiano v. Roberto Diokno G.R. No. 97764 Aug 10, 1992

3
3. Private Property
i. Patrimonial Property of State – Art. 424 2nd par.
ii. Patrimonial Property of Municipal Corporations –
Art. 424, par. 2
iii. Private Property of Private Persons – Art. 425

Government v. Cabangis 53 Phil 112


Cebu v. Bercilles 66 SCRA 481
Tantoco v. Municipal Council 49 Phil 52
Salas v. Jarencio 46 SCRA 743
Zamboanga del Norte v. City of Zamboanga 22 SCRA 1334

4. Effect and Significance of Classification of Property as Property of


Public Dominion
a. Property is Outside the Commerce of Man
b. Property Cannot be the Subject of Acquisitive Prescription
c. Property Cannot be Attached or Levied upon in Execution
d. Property Cannot be Burdened with a Voluntary Easement

C. Other Classification
1. By their physical existence
a. Corporeal
b. Incorporeal
2. By their Autonomy of Dependence
a. Principal
b. Accessory
3. By their Subsistence After Use
a. Consumable – Art. 418
b. Non – Consumable – Art. 418
Differentiated from Fungible or Non – Fungible

c. Deteriorable or Non – deteriorable

4. By reason of their Susceptibility to Division


a. Divisible
b. Indivisible
5. By reason of Designation
a. Generic
b. Specific
6. Existence in Point of Time
a. Present
b. Future
7. Contents and Constitution
a. Singular
i. Simple
ii. Compound
b. Universal
8. Susceptibility to Appropriation
a. Non – appropriable
b. Appropriable
i. Already appropriated
ii. Not yet appropriated

4
9. Susceptibility to Commerce
a. Within the Commerce of Man
b. Outside the Commerce of Man

II. OWNERSHIP

A. Definitions
Ownership – It is an independent right of exclusive enjoyment and control of a thing for
the purpose of deriving therefrom all the advantages required by the reasonable needs of the owner
(or holder of the right) and the promotion of the general welfare, but subject to the restrictions
imposed by law and rights of others. (J.B.L. Reyes)

Ownership is a relation in private law by virtue of which a thing (or property right)
pertaining to one person is completely subjected to his will in everything not prohibited by public
law or the concurrence with the rights of another. (Scialoja)

B. Bundle of rights included in Ownership Art. 429


1. Jus Utendi (right to use and enjoy)
2. Jus Fruendi (right over the fruits – natural, civil & industrial)
3. Jus Abutendi (right to consume the thing by its use and to abuse)
4. Jus Disponendi (right to dispose, alienate, donate, sell, pledge, mortgage)
5. Jus Vindicandi (right to vindicate or recover possession/ownership)
6. Jus Possidendi (right to possess)

C. Other Specific Rights Found in Civil Code Arts. 429, 430, 437, 438, 444

a. Right to Exclude; Self-Help; Doctrine of Self-Help; Elements Art.


429
b. Right to Enclose or Fence – Art. 430
c. Right to Receive Just Compensation in Case of Expropriation –
Art. 435
d. Right to Hidden Treasure – Arts. 438-439
e. Right to Accession – Art. 440
f. Right to Recover Possession and/or Ownership – Jus Vindicandi

i. Available Actions to Recover


Possession/Ownership

Re: Immovable Property

- Accion Reivindicatoria
- Accion Publiciana
- Forcible Entry/ Unlawful Detainer (Rule 70 Rules of
Court)
Re: Movable Property

- Replevin (Rule 60 Rules of Civil Procedure)

ii. Requisites for Recovery – Art. 434

a. Identify the property

5
b. Prove his right of ownership – rely on strength of his
evidence not on weakness of defendant (Art. 434)

Perez v. Mendoza, G.R. No. L-22006 July 28, 1975


Dizon v. CA G.R. No. 101929 January 6, 1993
Santos v. Ayon G.R. No. 137013 May 6, 2005
Ganila v. CA G.R. No. 150755 June 8, 2005

D. Limitations of Real Right of Ownership

1. General Limitation
a. police power
b. taxation
c. eminent domain
2. Specific Limitation
3. Limitation From Scattered Provisions of Civil Code
Arts. 431, 432
Arts. 2191, 677-679, 649 & 652, 637, 676, 644, 684-687

U.S. v. Causby 328 U.S. 256


Lunod v. Meneses 11 Phil 128

a. Latin Maxim: Sic Utere Tuo Ut Alienum Non Laedas – Art. 431
b. Act in State of Necessity

III. RIGHT OF ACCESSION


A. Concept – Art. 440 – NOT a mode of acquiring ownership but a mere
attribute or an incident of ownership except art 461 (exchange of ownership
of river beds)
B. General Principles of Accession
a. Accessory Follows the Principal
b. No Unjust Enrichment
c. All works, Sowing and Planting are Presumed Made by Owner and at
His Expense, Unless contrary is Proved
d. Accessory Incorporated to Principal such that it cannot be Separated
without Injury to Work Constructed or Destruction to Plantings,
Construction or Works – Art. 447
e. Bad Faith involves Liability for Damages and Other Dire
Consequences
f. Bad Faith of One Party Neutralizes Bad Faith of the Other – Art. 453
g. Ownership of Fruits – Rule: To Owner of Principal Thing:

Exceptions:

i. Possession in Good Faith


ii. In Usufruct
iii. In Lease
iv. In Antichresis

6
C. Obligations of Receiver of Fruits to Pay Expenses by 3rd Person in
Production, Gathering and Preservation – Art. 443
D. Kinds of Accession
1. Accession Discreta (Fruits) – Art. 440
a. Natural – spontaneous products of soil & the young & other
products of animals
b. Industrial – those produced by lands of any kind thru
cultivation or labor
c. Civil – rent of buildings, the price of leases of land and other
property and the amount of perpetual or life annuities or other
similar income

Bachrach v. Seifert, 87 Phil 117


Bachrach v. Talisay Silay, 56 Phil 117

2. Accession Continua
a. Over Immovables
1. Artificial or Industrial – Building, Planting, Sowing (BSP)
---- The rules on accession industrial are inapplicable to cases where
there is a juridical relation existing between the owner of the land and
the B, P or S covering the property in question; instead their
agreement, primarily, and the provisions of the CC on obligations and
contracts including special contracts that could be relevant,
suppletorily, would govern. (example lease –CC 1678, usufruct
CC529)

a. Owner is Builder, Planter, Sower (BPS)


Using Material of Another Art. 447

- In Good Faith
- In Bad Faith
b. BPS Builds, Plants or Sows on Another’s Land Using
His Own Materials – Art. 448-454
BPS in Good Faith – Art. 448

BPS In Bad Faith – Art. 449, 450, 451

i. Options Open to Owner of Land


a. To acquire building, planting and sowing
BPS has right of retention

- retains possession without paying rental


- not entitled to fruits; his rights are the same as an
antichretic creditor
b. To sell land to BP to lease land S
- BP may refuse if value of land considerable more than
BP; then – forced lease by LO and BP

BPS in Bad Faith – Art. 449, 450, 451

7
ii. Rights of Builder Planter Sower in Bad Faith – Art.
452, 443
- Landowner in bad faith but BPS in good faith – Art,
454, 447 – reason for adverting to rule 447

b. BPS builds, plants, sows on another’s land with materials


owned by 3rd person – Art. 455
Nota Bene: good faith does not exclude negligence – Art. 456

Bernardo v. Bataclan, 66 Phil 598


Ignacio v. Hilarion, 76 Phil 605
Sarmiento v. Agana, 129 SCRA 122
Pershing Tan Queto v. CA 148 SCRA 54
Pecson v. CA 244 SCRA 407
Depra v. Dumlao, 136 SCRA 475
Tecnogas Phils. v. CA 268 SCRA 5
Ortiz v. Kayanan 92 SCRA 146
Geminiano v. CA 259 SCRA 10
Pleasantville Dev’t. Corp. v. CA 253 SCRA 10
Baltazar v. Caridad 17 SCRA 460
Spouses Del Campo v. Abesia 167 SCRA 379
Programme Incorporated v. Province of Bataan 492 SCRA 529
Sulo sa Nayon Inc. v. Nayong Pilipino Foundation 576 SCRA 655
Ballatan v. CA 304 SCRA 37

2. Natural

a. Alluvium – Art. 457 – gives the owners of the lands adjoining


the banks of rivers or streams any accretion which is gradually
received from the effects of the current of waters

REASON: to provide some kind of compensation to owners of


land continually exposed to the destructive force of water and
subject to various easements.

Republic v. CA 132 SCRA 514


Grande v. CA G.R. No. L-17652 June 30, 1962

c. Avulsion
d. Change of Course of River – Art. 461-463
Baes v. CA, 224 SCRA 562
Binalay v. Manalo 195 SCRA 374

e. Formation of Islands – Art. 461-465


PRESIDENTIAL DECREE NO. 1067

3. Over Movables
a. Conjunction and Adjunction
i. Inclusion or Engraftment
ii. Soldadura or soldering
a. Plumbatura – different metals
b. Ferruminatio – same metal

8
iii. Tejido or weaving
iv. Escritura or writing
v. Pintura or painting
b. Commixtion and Confusion

Siari Valley Estates v. Lucasan G.R. No. L-7046, August 31, 1955
Santos v. Bernabe, 54 Phil 19

c. Specification

IV. QUIETING OF TITLE

A. Differences Between Action to Quiet Title and Action:

- To Remove a Cloud
- To Prevent a Cloud
B. Prescription of Action – Imprescriptible if plaintiff is in possession; if not,
prescribes within period for filing accion publiciana, accion
reivindicatoria

Olviga v. CA, G.R. No. 104813 October 21, 1993


Pingol v. CA, G.R. No. 102909 September 6, 1993

C. Who are Entitled to Bring Action? Art 477


D. Notes:
1. There is a cloud on title to real property or any interest to real
property (Art. 476)
2. Plaintiff has legal or equitable title to or interest in the subject/real
property
3. Instrument record claim, etc. must be valid and binding on its face
but in truth and in fact invalid, ineffective, voidable or
unenforceable
4. Plaintiff must return benefits received from defendant
Titong v. Court of Appeals G.R. No. 111141 March 6, 1998

V. CO-OWNERSHIP

A. Definition
The right of common dominion which two or more persons have in a spiritual part (or ideal
portion) or a thing which is not physically divided.

B. Characteristics
1. There is plurality of owners, but only one real right or ownership;
2. The recognition of ideal shares, defined but not physically
identified.
3. Each co-owner has absolute control over his ideal share;
4. Mutual respect among co-owners in regard to use enjoyment and
preservation of thing as a whole

9
Pardell v. Bartolome, 23 Phil 450

C. Differences between co-ownership and joint tenancy


D. Differences between partnership and co-ownership
Gatchalian v. Collector, 67 Phil 666

E. Sources of co-ownership
a. LAW
i. Cohabitation (Art. 147 & 148, Family Code); Art.
90 on suppletory application of the principles of co-
ownership to ACP
ii. Purchase (Art. 1452)
iii. Succession (Intestate: Art. 1078; Testate: Property is
given to two or more heirs)
iv. Donation (Art. 753 2nd par.)
v. Chance (Art. 472)
Case: Siari Valley Estate v. Lucasan, supra

vi. Hidden treasure (Art. 438)


vii. Easement of party wall (Art. 658)
viii. Occupation
Punzalan v. Boon Liat, 44 Phil 320

ix. Condominium Law (Sec. 6(c) Rep. Act 4726, as


amended)

b. CONTRACT
i. By agreement (duration of co-ownership, Art. 494)
ii. Universal partnership (Arts. 1778-1780)
iii. Association and societies with secret articles (Art.
1775)
F. Rights of each co-owner as to thing owned in common:

a. To use the thing according to the purpose intended may be


altered by agreement, express or implied; provided:
i. It is without injury or prejudice to interest of co-
ownership and;
ii. Without preventing the use of other co-owners, Art.
486
Case: Pardell v. Bartolome, 23 Phil 450

b. To share in the benefits in proportion to his interest, provided


the charges are borne by each in the same proportion (Art. 485)
- Contrary stipulation in void
- Presumption is that portions are equal unless contrary is
proved
c. Each co-owner may bring an action in ejectment (Art. 487)

10
d. To compel other co-owner to contribute to expenses for
preservation of the thing or right owned in common and to
payment of taxes (Art. 488)
- Co-owner’s option not to contribute by waiving his
undivided interest equal to amount of contribution
(exception: if waiver prejudicial to co-ownership)
- Requisites before repairs for preservation may be made
or expenses for embellishment or improvement may be
made (Art. 489)

- Effects of failure to notify co-owners

Trinidad v. Ricafort 7 Phil 449


Hibberd v. Estate of McElroy 25 Phil 164

e. To oppose any act of alteration; remedy of other co-owners re:


acts of alteration (Art. 491)
1. Acts of alteration
i. Concept
ii. Distinguished from acts of administration Art. 492
iii. Effect of acts of alteration and remedies of non-
consenting co-owner
Query: Is lease of real property owned in common
an act of alteration? Art. 1647 in relation to Art.
1878(8)

f. To protest against acts of majority which are prejudicial to


minority (Art. 492 par. 3)

Lavadia v. Cosme, 72 Phil 196


Melencio v. Dy Tiao Lay, 55 Phil 100
Tuason v. Tuason, 88 Phil 428

g. To exercise legal redemption – Art. 1620, 1623

Mariano v. CA, 222 SCRA 736


Verdad v. CA, 256 SCRA 593

h. To ask for partition – Art. 494

Ramirez v. Ramirez 21 SCRA 384


Aguilar v. CA, G.R. NO. 76351 October 26, 1993

i. Other cases where right of legal redemption is given – Arts.


1621, 1622

Halili v. CA G.R. No. 113539, March 12, 1998


Francisco v. Boiser G.R. No. 137677, May 31, 2000

11
G. Implications of co-owners right over his ideal share:
a. Co-owner has the right:

1. To share in fruits and benefits


2. To alienate, mortgage or encumber, and dispose of his ideal
share – (but other co-owners may exercise right of legal
redemption)
3. To substitute another person in the enjoyment of thing
4. To renounce part of his interest to reimburse necessary
expenses incurred by another co-owner (Art. 488)

i. Effect of transaction by each co-owner


i. Limited to his share in the partition
ii. Transferee does not acquire any specific portion
of whole property until partition
iii. Creditors of co-owners may intervene in
partition or attack the same if prejudicial (Art.
499), except that creditors cannot ask for
rescission even if not notified in the absence of
fraud (Art. 497)

Carvajal v. CA 112 SCRA 237


Pamplona v. Moreto 96 SCRA 775
Castro v. Atienza 53 SCRA 264
Estoque v. Pajimula 24 SCRA 59
Diversified Credit v. Rosado 26 SCRA 470
PNB v. CA 98 SCRA 207

b. Rules on co-ownership not applicable to conjugal


partnership of gains or absolute community of property.
c. Special rules on ownership of different stories of a
house as differentiated from provisions of
Condominium Law (Act No. 4726)
i. Concept of Condominium
ii. Essential requisites for Condominium
iii. Rights and Obligations of Condominium owner
Sunset View Condominium v. Judge Campos G.R. No. 52361, April
27, 1981

d. Extinguishment of co-ownership
i. Total destruction of thing
ii. Merger of all interests in one person
iii. Acquisitive prescription
a. By a third person
b. By one co-owner as against the other co-
owners requisites and unequivocal acts
of:
1. Unequivocal acts of repudiation of
co-ownership (acts amounting to
ouster of other co-owners) known
to other co-owners and shown by
clear and convincing evidence

12
2. Open and adverse possession, not
mere silent possession for the
required period of extraordinary
acquisitive prescription
3. The presumption is that possession
by co-owner is not adverse

iv. Partition or Division


a. Right to ask for partition at any time
except:
1. When there is a stipulation against
it (not over ten years)
2. When condition of indivision is
imposed by transferor (donor or
testator) not exceed 20 years – Art.
494
3. When the legal nature of
community prevents partition
(party wall)
4. When partition is generally
prohibited by law (e.g. absolute
community of property)
5. When partition would render the
thing unserviceable (but the thing
may be sold and co-owners divide
the proceeds) (Art. 494)
- Action for partition will fail if acquisitive
prescription has set in

b. Effect of Partition- Arts. 1091, 543, 1092-


1093, 499-501
c. Right of Creditors of Individual Co-
owners Art. 497
d. Procedure for Partition – Rule 69 Rules of
Court

5. POSSESSION

a. Definition and Concept (Art. 523)


b. Essential requisites of possession:

a. Holding or control of a thing or right


(corpus) consists of either
1. The material or physical either
2. Exercise of a right
3. Constructive possession
Ramos v. Director of Lands, 39 Phil 175
Director v. CA, 130 SCRA 9
b. Intention to possess (animus possidendi)

13
c. Degrees of holding or possession
i. Mere holding or possession without title
whatsoever and in violation of the right of the
owner, e.g. possession of a thief or a usurper of
land. –
a. thief, squatter ---without any legal
basis or justification
b. can’t ripen into ownership (Art 1133)
ii. Possession with juridical title but not that of
ownership, e.g. possession of tenant, depository
agent, bailee trustee, lessee, antichretic creditor.
This degree of possession will never ripen into
full ownership as long as there is no repudiation
of concept under which property is held.
----predicated on a juridical relation that exists
between the possessor and the owner of the thing

iii. Possession in the Concept of an Owner..---


Possession with just title or title sufficient to
transfer ownership, but not from the true owner
e.g. possession of a vendee from vendor who
pretends to be the owner. This degree of
possession ripens into full ownership by lapse of
time.
iv. Possession with just title from the true owner.
Possession with a Title in Fee Simple. Highest
degree of possession. The delivery of
possession transfer ownership, and strictly
speaking, is the jus possidendi
d. Cases of possession:
i. Possession for oneself, or possession exercised
in one’s own name and possession in the name
of another – (Art. 524)
ii. Possession in the concept of an owner and
possession in the concept of a holder with the
ownership belonging to another (Art. 525)
iii. Possession in good faith and possession in bad
faith (Art. 526)
Pleasantville Development Corp. v. CA 253 SCRA 10 supra

a. Mistake upon a doubtful or difficult


question of law as a basis of good faith.
Kasilag v. Roque G.R. No. 46623, December 17, 1939

e. What things or rights may be possessed.


f. What may not be possessed by private persons.
a. Res communes
b. Property of public dominion
c. Right under discontinuous and/or non-
apparent easement
g. Acquisition of Possession
i. Ways of acquiring possession (Art. 531)

14
a. Material occupation of the thing
1. The doctrine of constructive
possession
2. Includes constructive delivery:

1. Traditio brevi manu (things already in transferee’s


hands, e.g. under a contract of lease, then delivered
under a sale)
2. Traditio constitutum possessorium (thing remains in
transferor’s hands, e.g. sale, then retained under a
commodatum)
b. Subjection to the action of our will
Includes traditio longa manu and traditio simbolica

c. Proper acts and legal formalities – refers


to the acquisition of possession by
sufficient title, intervivos or mortis causa,
lucrative or onerous. Example: donations,
succession (testate or intestate), contracts,
judicial writs of possession, writ of
execution of judgments, execution and
registration of public instruments.

Banco Español Filipino v. Peterson 7 Phil 409

ii. By whom may possession be acquired: (Art.


532)
a. By same person; elements of personal
acquisition
b. By his legal representative; requisites
c. By his agent
d. By any person without any power
whatsoever but subject to ratification,
without prejudice to proper case of
negotiorum gestio (Arts. 2144, 4129,
2150)
e. Qualifiedly, minors and incapacitated
persons (Art. 525)

iii. What do not affect possession (Arts. 537, 1119)


a. Acts merely tolerated
b. Acts executed clandestinely and without
the knowledge of the possessor
c. Acts by violence as long as possessor
objects thereto (i.e. he files a case) (Art.
536)

iv. Rules to solve conflict of possession (Art. 538)

15
General Rule: Possession cannot be recognized in two different
personalities, except in cases of co-possession by co-possessors without
conflict claims or interest.

In case of conflicting possession – preference is given to:

1. Present possessor or actual possessor


2. If there are two or more possessors, the one longer in possession
3. If dates of possession are the same, the one who presents a title
4. If all conditions are equal, the thing shall be placed in judicial
deposit pending determination of possession or ownership through
proper proceedings

h. Effects of Possession
i. In general, every possessor has a right to be
respected in his possession; if disturbed therein,
possessor has right to be protected in or restored
to said possession (Art. 539)
a. Actions to recover possession
1. summary proceedings – forcible
entry and unlawful detainer.
Plaintiff may ask for writ of
preliminary mandatory injunction
may be asked.

- Within 10 days from filing of complaint in forcible


entry (art. 539)
- The same writ is available in unlawful detainer actions
upon appeal (Art. 1674)
2. Accion publiciana (based on
superior right of possession, not of
ownership)
3. Accion reivindicatoria (recovery
of ownership)
4. Action for replevin (possession or
ownership for movable property)

b. Possessor can employ self-help (Art. 429)


ii. Entitlement to fruits – possessor in good
faith/bad faith
iii. Reimbursement for expenses – possessor in good
faith/bad faith
a. Liability for loss or deterioration of
property by possessor in bad faith. (Art.
553; 552)
iv. Possession of movable acquired in good (in
concept of owner) is equivalent to title (Art. 559)

16
- Possessor has actual title which is defeasible only by
true owner.
- One who has lost a movable or has been unlawfully
deprived thereof may recover it without reimbursement,
except if possessor acquired it at a public sale.

i. Effect of possession in the concept of owner:


a. Possession may be lapsed of time ripen
into full ownership, subject to certain
exceptions
b. Presumption of just title and cannot be
obliged to show or prove it (Art. 541);
exception (Art. 1131)
c. Possessor may bring all actions necessary
to protect his possession except accion
reivindicatoria
d. May employ self-help under Art. 429
e. Possessor may ask for inscription of such
real right of possession in the registry of
property
f. Has right to the fruits and reimbursement
for expenses (assuming he is a possessor
in good faith)
g. Upon recovery of possession which he
has been unlawfully deprived may
demand fruits and damages
h. Generally, he can do on the things
possessed everything that the law
authorizes owner to do until he is ousted
by one who has a better right
i. Possession in good faith and possession in
bad faith (Art. 528)
i. mistake upon a doubtful or
difficult question of law as
a basis of good faith (Art.
527)
j. Presumption in favor of the possessor:
i. Of good faith until the contrary is proved (Art.
527)
ii. Of continuity of initial good faith in which
possession was commenced or possession in
good faith does not lose this character except in
the case and from the moment possessor became
aware or is not unaware of improper or wrongful
possession (Art. 528)
Cordero v. Cabral, 122 SCRA 532

iii. Of enjoyment of possession in the same


character in which possession was required until
contrary is proved (Art. 529)

17
iv. Of non-interruption of possession in favor of
present possessor who proves possession at a
previous time until the contrary is proved (Art.
554) Arts. 1120-1124
v. Of continuous possession or non-interruption of
possession of which he was wrongfully deprived
for all purposes favorable to him (Art. 561)
vi. Other presumptions with respect to specific
properties or property rights:
1. Of extension of possession of real
property to all movables contained
therein so long as it is not shown
that they should be excluded;
exceptions (Art. 426)
2. Non-interruption of possession of
hereditary property (Art. 533 &
1078)
3. Of just title in favor of possession
in concept of owner (Art. 541; but
see: Art. 1141)
k. Possession may be lost by:
a. Abandonment
b. Assignment, either onerous or gratuitous
c. Destruction or total loss of thing or it goes
out of commerce
d. Possession by another; if possession has
lasted longer that one year; real right of
possession not lost until after ten (10)
years
- subject to Art. 537 (acts merely tolerated, etc.)

VII. USUFRUCT

A. Concept – (Art. 562)

B. Historical considerations

C. Characteristic of Usufruct

D. Usufruct distinguished from lease; from servitude

E. Classes of Usufruct

1. By origin:

a. Voluntary
b. Legal – Art. 321 cc; Art. 226 Family Code
c. Mixed
2. By person enjoying right of usufruct

a. Simple

b. Multiple

18
ii. Simultaneous
iii. Successive
Limitation on successive usufruct (Art. 756, 863 & 869)

3. By object of usufruct

a.Rights – (Art. 574)


b. Things
1. Normal
2. Abnormal, irregular or quasi – usufruct
4. By the extent of the usufruct

a. As to the fruits

1. Total
2. Partial (Art. 598)
b. As to object

i. Singular
ii. Universal (Art. 595)
- subject to provisions of Arts. 758 & 759

5. By the terms of usufruct (Art. 564)

a. Pure
b. Conditional
c. With a term (period)

F. Rights of Usufructuary

1. As to the thing and its fruit

a. Right to possess and enjoy the thing itself, its fruits and
accessions
- Fruit consist of natural, industrial and civil fruits
- As to hidden treasure, usufructuary is considered a
stranger (Art. 566; 436)
- Fruits pending at the beginning of usufruct (Art. 567)
- Civil fruits (Arts. 569, 588)
b. Right to lease the thing (Art. 572)

- Limitations
- Liability of usufructuary – lessor (Art. 590)
- Exceptions to right of leasing the thing
Fabie v. David, 75 Phil 536

c. Right to improve the thing (Art. 579)

2. As to the legal right of usufruct itself

a. Right to mortgage; right of usufruct (Art. 572)

19
b. Right to alienate the usufruct, except in purely personal
usufructs, or when title constituting it prohibits the same

G. Rights of the naked owner

1. At the beginning of usufruct (obligations of usufructuary at the


beginning of usufruct)

2. During the usufruct:


b. Retains title to the thing or property
c. He may alienate the property
Limitations (Art. 581)

H. Obligations of Usufructuary
1. At the beginning of usufruct or before exercising the usufruct
a. to make inventory (Art. 583)
1. Requisites of inventory

i. Immovables described
ii. Movables appraised

2. Exception to requirement of inventory

i. no one will be injured thereby (Art. 585)


ii. title constituting usufruct excused the making of
inventory
iii. title constituting usufruct already makes an
inventory
b. To give a bond for the faithful performance of duties as usufruct
1. No bond are required in the following:

i. No prejudice would result (Art. 585)


ii. Usufruct is reserved by donor (Art. 584)
iii. Title constituting usufruct excused usufructuary
2. Effect of filing a bond (Art. 588)
3. Effect of failure to give bond (Art. 586, 599)
2. During the usufruct

a. To take care of the thing like a good father or a family (Art. 589)

Effect of failure to comply with obligation (Art. 610)

b. To undertake ordinary repairs (Art. 592)

- concept of ordinary repairs


c. To notify owner of need to undertake extra-ordinary repairs
(Art. 593)
1. Concept of extraordinary repairs
2. Naked owner obliged to undertake them but when
made by owner, usufructuary pays legal interest on
the amount while usufruct lasts. (Art. 594, par. 1)

20
3. Naked owner cannot be compelled to undertake
extra-ordinary repairs
a. If indispensable and owner fails to
undertake extraordinary repairs made be
made by usufructuary; repairs usufructuary
right (Art. 594, par. 2)
d. To pay for annual charges and taxes on the fruits
Board of Assessment Appeals of Zamboanga del Sur v. Samar Mining
Company Inc. 37 SCRA 734

e. To notify owner of any act detrimental to ownership (Art. 601)

NHA v. CA GR. No. 198840 April 13, 2005

f. To shoulder the costs of litigation re usufruct (Art. 602)


g. To answer for fault or negligence of alienee, lessee, or agent of
usufructuary (Art. 590)

I. At the time termination of the usufruct -- To deliver the thing in usufruct to


the owner in the condition in which he has received it, after undertaking
ordinary repairs
Exception: abnormal usufruct

J. Special Cases of Usufruct


1. Usufruct over a pension or periodical income (Art. 570)
2. Usufruct of property owned in common (Art. 582)
3. Usufruct of head of cattle (Art. 591)
4. Usufruct over vineyards and woodlands (Arts. 575-576)
5. Usufruct on a right of action (Art. 578)
6. Usufruct of mortgaged property (Art. 600)
7. Usufruct over an entire patrimony (Art. 598)
- Liability of usufructuary for debts
8. Usufruct over deteriorable property (Art. 578)
9. Usufruct over consumable property (or quasi-usufruct) (Art. 574)
K. Extinguishment of Usufruct (Art. 603)
1. Death of usufructuary
Exception:

i. unless a contrary intention clearly appeals


2. Expiration of period or fulfillment of resolutory condition imposed
on usufruct by person constituting the usufruct
Baluran v. Navarro 79 SCRA 309

a. time that may elapse before a third person attains a certain age,
even if the latter dies before period expires – unless granted only
in consideration of his existence (Art. 606)
3. Merger of rights of usufruct and naked ownership in one person
4. Renunciation of usufruct
a. Limitations
- Must be express
- If made in fraud of creditors, waiver may be rescinded
by them through action under Art. 1381
5. Extinction or loss of property

21
a. If destroyed property is insured before the termination of the
usufruct (Art. 608)
1. When insurance premium paid by owner and
usufructuary (Art. 608, par. 1)
a. If owner rebuilds, usufruct subsists on
new building
b. If owner does not rebuild interest upon
insurance proceeds paid to usufructuary
2. When the insurance taken by owner only because
usufructuary refuses (Art. 608, par. 2)
a. Owner entitled to insurance money
(no interest paid to usufructuary)
b. If he does not rebuild, usufruct
continues over remaining land and/or
owner may pay interest on value of
both (Art. 607)
c. If owner rebuilds, usufruct does not
continue on new building, but owner
must pay interest on value on land and
old materials
3. When insurance taken by usufructuary only
depends on value of usufructuary’s insurable
interest (not provided for in Civil Code)
b. Insurance proceeds to usufructuary
c. No obligation to rebuild
d. Usufruct continues on the land
e. Owner does not share in insurance proceeds
1. If destroyed property is not insured (Art. 607)
a. If building forms part of an immovable under
usufruct
b. If owner does not rebuild, usufruct continues
over the land and materials
c. If owner rebuilds, usufructuary must allow
owner to occupy the land and to make use of
materials, but value of both and land and
materials

VI. Termination of right of person constituting the usufruct


VII. Prescription
Cases covered: If third party acquires ownership of thing or
property in usufruct or right of ownership lost through
prescription or right of usufruct not began within prescriptive
period, or if there is a tacit abandonment or non-user of thing
held in usufruct for required period.

VIII. What do not cause extinguishment of usufruct


A. Expropriation of thing in usufruct (Art. 609)
B. Bad use of thing in usufruct (Art. 810) - Owner’s right
C. Usufruct over a building (Art. 607, 608)

22
IX. EASEMENT OR SERVITUDES
A. Definition – Easement or real servitude is a real right which burdens a thing
with a presentation consisting of determinate servitudes for the exclusive
enjoyment of a person who is not its owner or of a tenement belonging to
another, or, it is the real right immovable by nature i.e. land and buildings,
by virtue of which the owner of the same has to abstain from doing or to
allow somebody else to do something in his property for the benefit of
another thing or person.
B. Essential feature of easements/real servitudes/praedial servitudes:
1. It is a real right, i.e., it gives an action in rem or real action against
any possessor of servient estate.
2. It is a right enjoyed over another property (jus in re aliena) i.e., it
cannot exist in one’s own property (nulli res sua servit).
3. It is a right constituted over an immovable by nature (Land and
buildings), not over movables.
4. It limits the servient owner’s right of ownership for the benefit of
the dominant estate. Right of limited use, but no right to possess
servient estate. Being an abnormal limitation of ownership, it cannot
be presumed.
5. It creates a relation between tenements.
6. It cannot consist in requiring the owner of the servient estate to do
an act, (servitus in faciendo consistere nequit) unless the act is
accessory to a praedial servitude (obligation propter rem).
7. Generally, it may consist in the owner of the dominant estate
demanding that the owner of the servient estate refrain from doing
something (servitus in non faciendo), or that the latter permit that
something be done over the servient property (servitus in patendo),
but not in the right to demand that the owner of the servient estate
do something (servitus in faciendo) except if such act is an accessory
obligation to a praedial servitude (obligation propter rem).
8. It is inherent or inseparable from estate to which they actively or
passively belong (Art. 617)
9. It is intransmissible, i.e., it cannot be alienated separately from the
tenement affected, or benefited.
10. It is indivisible. (Art. 616)
11. It has permanence, i.e., once it attaches, whether used or not, it
continues and may be used at anytime.
C. Classification of Servitudes
1. As to recipient of benefits:
a. Real or Praedial
b. Personal (Art. 614) [But note that under Roman Law, usufruct
together with usus habitatio, and operae servorum were
classified as personal servitudes]
2. As to course or origin:
a. Legal, whether for public use or for the interest of private
persons (Art. 634)
b. Voluntary
3. As to its exercise (Art. 615)
a. Continuous
b. Discontinuous

23
4. As indication of its existence (Art. 615)
a. Apparent
b. Non-apparent
5. By the object or obligation imposed (Art. 616)
a. Positive
b. Negative (prescription start to run from service of notarial
prohibition)
D. General rules relating to servitudes
1. No one can have a servitude over his own property (nulli res sua
servit)
2. A servitude cannot consist in doing (servitus in faciendo consistere
nequit)
3. There cannot be a servitude over another servitude (servitus
servitutes esse non potest)
4. A servitude must be exercised civiliter, i.e., in a way least
burdensome to the owner of the land.
5. A servitude must have a perpetual cause.
E. Modes of Acquiring Easements
North Negros v. Hidalgo 63 Phil 664

1. By title-juridical act which give rise to the servitude, e.g. law,


donations, contracts or wills.
Dumangas v. Bishop of Jaro, 34 Phil 541

a. If easement has been acquired but no proof of existence of


easement available, and easement is one that cannot be acquired
by prescription – then
i. May be cured by deed of recognition by owner of servient
estate, or
ii. By final judgment, or
iii. Existence of an apparent sign considered a title (Art. 624)
Amor v. Florentino, 74 Phil 404

2. By prescription
Ronquillo v. Roco, 103 Phil 84

F. Rights and Obligations of Owners of Dominant and Servient Estates


1. Right of owner of dominant estate
a. To use the easement (Art. 626) and exercise all rights necessary
for the use of the (Art. 625)
b. To do at his expense, all necessary works for the use and
preservation of the easement (Art. 627)
c. In a right of way, to ask for change in width of easement
sufficient for needs of dominant estate (Art. 651)
2. Obligations of the owner of Dominant Estate
a. To use the easement for benefit of immovable and in the manner
originally established (Art. 626)
b. To notify owner of servient estate before making repairs and to
make repairs in a manner least inconvenient to servient estate
(Art. 627)
c. Not to alter easement or render it more burdensome (Art. 627)

24
Valderrama v. North Negros, 48 Phil 482

d. To contribute to expenses of works necessary for use and


preservation of servitude, if there are several dominant estates,
unless be renounces his interest (Art. 628)
3. Rights of owner of servient estate
a. To retain ownership and use of his property (Art. 630)

Pilar Dev. Corp. v. Dumadag G.R. No. 194336 March 11, 2013

b. To change the place and manner of use of the easement (Art.


629, par. 2)
4. Obligations of the servient estate
a. Not to impair the use of the easement (Art. 628, par. 1)
b. To contribute proportionately to expenses if he uses the
easement (Art. 628, par. 2)

G. Modes of Extinguishment of Easements:


1. Merger – must be absolute, perfect and definite, not merely
temporary
2. By non-user for 10 years
a. Computation of the period
(1) discontinuous easements; counted from the day they
ceased to be used.
(2) continuous easements: counted from the day an act
adverse to the exercise took place.
b. The use by co-owner of the dominant estate bars prescription
with respect to the others (Art. 633)
c. Servitudes not yet exercised cannot be extinguished by non-
user.
3. Extinguishment by impossibility of use
4. Expiration of the term or fulfillment of resolutory condition
5. Renunciation of the owner of dominant estate – must be specific
clear, express (distinguished from non-user)
6. Redemption agreed upon between the owners
7. Other causes not mentioned in Art. 631
a. Annulment or rescission of the Title constituting the easement
b. Termination of the right of grantor
c. Abandonment of the servient estate
d. Eminent domain
e. Special cause for extinction of legal rights of way; if right of
way; if right of way no longer necessary
H. Legal Easements
1. Law Governing Legal Easements
a. For public easements
1. special laws and regulations relating thereto, e.g., Pres. Decree
1067, P.D. 705
2. by the provisions of Chapter 2, Title VII, Book II New Civil
Code
b. For private legal easements

25
1. by agreement of the interested parties whenever the
law does not prohibit it and no injury is suffered by a
third person
2. by the provisions of Chapter 2, Title VII Book II

2. Private Legal Easements provided for by the New Civil Code


a. those established for the uses of water or easements relating to
waters (Art. 637-648)
1. Natural drainage of waters (Art. 637)
Case: Ongsiako v. Ongsiako
2. Easements on lands along riverbanks (Art. 638),
see Water Code
3. Abutment of a dam (Art. 639)
4. Aqueduct (Art. 642-646)
5. Drawing waters and watering animals (Art. 640)
6. Stop lock or sluice gate (Art. 649)

b. The easement of right of way (Arts. 649-657)

Quimen v. CA, G.R. No. 112331, May 29, 1996


David Chan v. CA, 268 SCRA 677
La Vista Assn. v. CA, G.R. No. 95252, Sept. 5, 1997
Vda. De Beltazar v. CA, 245 SCRA 333
Calimoso v. Roullo January 25, 2016 G.R. No. 198594

c. The easement of party walls (Arts. 658-666)


d. The easement of light and view (Art. 667-673)
e. The easement of drainage of buildings (Arts. 674-676)
f. The easement of distance for certain constructions and plantings
(Arts. 677-681)
g. The easement against nuisances (Art. 682-683)
h. The easement of lateral and subjacent support (Arts. 684-687)

BOOK III – DIFFERENT MODES OF ACQUIRING OWNERSHIP

1. MODE AND TITLE DIFFERENTIATED


2. MODES OF ACQUIRING OWNERSHIP
A. Original Modes – which produce the acquisition of ownership independent
of any pre – existing right of another person, hence, free from any burdens
or encumbrances.
i. Occupation
ii. intellectual creation
B. Derivative Modes – based on a right previously held by another person, and
therefore, subject to the same characteristic powers, burdens, etc. as when
held by previous owner.
1. Law – e.g. registration under Act 496; estoppel of title under
Art. 1434 CC; marriage under absolute community of property
system; hidden treasure; accession (Art. 445); change in river’s
course (Art. 461); accession continua over movables (Art.
466); Arts. 681, 1456 CC, and Art. 120 FC.

26
i. Donation
ii. Succession
iii. Prescription
iv. Tradition
Requisites:

1.) Pre-existence of right in estate of grantor


2.) Just cause or title for the transmission
3.) Intention – of both grantor and grantee
4.) Capacity – to transmit and to acquire
5.) An Act giving it outward form, physically,
symbolically, or legally.
Legal Maxim: “Non nudis pactis, sed traditione, dominia rerum transferentur” (Not
by mere agreement, but by delivery, is ownership transferred).

Kinds of Tradition:

a. Real Tradition
b. Constructive Tradition
i. Symbolical delivery
ii. Delivery of Public Instrument
iii. Traditio Longa manu
iv. Traditio Brevi manu
v. Traditio Constitutum Possessorium
vi. Quasi – Tradition
vii. Tradition by operation of law
3. OCCUPATION
A. Not applicable to ownership of a piece of land (Art. 714 CC)
B. Privilege to hunt and fish regulated by special law (Art. 715)
C. Occupation of a swarm of bees or domesticated animals (Art. 716) – see also
Art. 560
D. Pigeons and fish (Art. 717)
E. Hidden treasure (Art. 718) see also Arts. 438-439
F. Lost movables; procedure after finding lost movables (Art. 719-720)

4. INTELLECTUAL CREATION – Intellectual Property Code (Rep. Act No. 8293)


Intellectual Property Rights (IPR):
a. Copyright & related rights
b. Trademarks & service marks
c. Geographic indications
d. Industrial designs
e. Patents
f. Topographies of integrated circuits
g. Rights of performers, producers of sound recordings & broadcasting orgs.
h. Protection of undisclosed information
i. Laws repealed by the Intellectual Property Code (Sec. 239)

All Acts and part of Acts inconsistent with Intellectual Property Code,
particularly:

- Pres. Decree No. 49 – Intellectual Property Decree,


including PD 285 as amended
- Rep. Act No. 165, as amended – Patent Law

27
- Rep. Act No. 166, as amended
- Arts. 188 & 189 of the Revised Penal Code

DONATION

I. Nature of Donation – A bilateral contract creating unilateral obligations on donor’s


part
II. Requisites of donation:
a. Consent and capacity of the parties
b. Animus donandi (causa)
c. Delivery of thing donated
d. Form as prescribed by law
Note: There must be impoverishment (In fact) of donor’s patrimony and enrichment
on part of donee)

III. Kinds of donations


1. As to its taking effect
a. Inter vivos (Arts. 729, 730, 731)
b. Mortis causa (Art. 728)
c. Propter nuptias (Arts. 82, 87, Family Code)
2. As to cause or consideration:
a. simple
b. renumeratory
c. onerous – (imposes a burden inferior in to value property donated)
i. improper-burden equal in value to property donated
ii. sub-modo or modal – e.g. imposes a prestation upon donee
as to how property donated will be applied (see: Art. 882
C.C.)
iii. mixed donations – negotium mixtum cum donatione e.g.
sale for price lower than value of property
Lagazo v. Court of Appeals 287 SCRA 24

3. As to effectivity or extinguishment
a. pure
b. conditional (Art. 730, 731)
i. effect of an impossible condition
c. with a term
4. Importance of classification
a. as to form
b. as to governing rules
c. as to impossible conditions – Art. 727, 1183
5. Characteristics of a donation mortis causa
a. convey no title or ownership before donor’s death
b. before donor’s death transfer is revocable
c. transfer is void if donor survives donee

6. Distinction between donation mortis causa and donation inter vivos


a. what is important is the time of transfer of ownership, even if
transfer of property donated may be subject to a condition or a term.

28
b. Importance of classification – validity and revocation of donation.

Cases: Bonsato v. Court of Appeals, 95 Phil 481


Gestopa v. Court of Appeals, 342 SCRA 105
Austria-Magat v. CA, G.R. No. 106755 February 1, 2002

IV. Who may not give or receive donations – Art. 735, 737, 738, 742, 742
V. Who may give or receive donations – Art. 736, 739 (1027, 1032), 740, 743, 744
Vitug v. Court of Appeals, 183 SCRA 755
Hemedes v. Court of Appeals, 316 SCRA 347
VI. Acceptance of donation
a. who may accept (Art. 745, 747)
b. time of acceptance of donation inter vivos (Art. 746) – donation
mortis causa
Lagazo v. Court of Appeals 287 SCRA 24

VII. Form of donations


a. personal property (Art. 748)
b. real property (Art. 749)
c. rules in Art. 748 and 749 not applicable to:
i. onerous donations
ii. modal donations
iii. mortis causa donations
iv. donations propter nuptias
Sumipat v. Banga, G.R. No. 155810 August 13, 2004
C.J.-Yulo & Sons v. Roman Catholic Bishop of San Pablo, Inc. G.R. No. 133705
March 31, 2005

VIII. What may be donated


1. All present property, or part thereof, of donor
a. provided he reserves, in full ownership or usufruct, sufficient means
for support of himself and all relatives entitled to be supported by
donor at time of acceptance (Art. 750)
b. provided that no person may give or receive by way of donation,
more than he may give or receive by will (Art. 752) also, reserves
property sufficient to pay donor’s debts contracted before donation,
otherwise, donation is in fraud of creditors, (Arts. 759, 1387)
If donation exceeds the disposable or free portion of his estate, donation is
inofficious.

Exceptions:

a. donations provided for in marriage settlements between future


spouses (Art. 84; Family Code; Art. 130 C.C.) – not more than
1/5 of present property.
b. donations propter nuptias by an ascendant consisting of
jewelry, furniture or clothing not to exceed 1/10 of disposable
portion (Art. 1070)
2. What may not be donated
a. future property – meaning of future property (Art. 751) exception:
marriage settlements of future spouses only in event of death to

29
extent laid down in Civil Code re: testamentary succession (Art. 130
C.C.; Art. 84 Family Code)

IX. Effect of Donation


A. In general
1. Donee may demand actual delivery of thing donated.
2. Donee is subrogated to rights of donor in the property donated (Art.
754)
3. Donor not obliged to warrant things donated, except in onerous
donations in which case donor is liable for eviction up to extent of
burden (Art. 754)
4. Donor is liable for eviction or hidden defects in case of bad faith on
his part (Art. 754)
5. In donations propter nuptias donor must release property donated
from mortgages and other encumbrances, unless contrary has been
stipulated – (Art. 131 C.C.)
a. Donations propter nuptias of property subject to encumbrances
are valid. Effect of foreclosure (Art. 85 F.C.)
6. Donations to several donees jointly – no right of accretion, except:
a. Donor provides otherwise
b. Donation to husband and wife jointly with right of accretion
(jus accrescendi), unless donor provides otherwise (Art. 753)
B. Special provisions

1. Reservation by donor of power to dispose (in whole or in part) or to


encumber property donated (Art. 755)
2. Donation of naked ownership to one donee and usufruct to another
(Art. 756 CC)
3. Conventional reversion in favor of donor or other person (Art. 757)
4. Payment of donor’s debt – (Art. 758)

a. If expressly stipulated
1. donee to pay only debts contracted before the donation,
unless specified otherwise – but in no case shall donee
be responsible for debts exceeding value of property
donated, unless clearly intended.
b. If there is no stipulation – donee answerable only for donor’s
debt only in case of donation is in fraud of creditors

X. Revocation and Reduction of Donations


A. Revocation distinguished from reduction of donations
B. Causes of Reduction/Revocation
1. Inofficiousness of donation (Art. 752, 771, 773; Art. 911 & 912 also
govern reduction)
a. Who may ask for reduction (772)
b. Rule applied – If disposable portion not sufficient to cover
two or more donations (Art. 773)
2. Subsequent birth, reappearance of child or adoption of minor by
donor (Art. 760)

30
C. Revocation (only)

1. Ingratitude (Art. 765)


a. Causes
b. Time to file action for revocation (Art. 769)
c. Who may file (Art. 770)
d. Effect of revocation
i. On alienation and mortgages (Art. 766, 767)

Eduarte v. Court of Appeals 253 SCRA 391


Noceda v. Court of Appeals 313 SCRA 504

2. Violation of condition
a. Prescription of action
b. Transmissibility of action
3. Effect of revocation or reduction – (Art. 762, 764 par. 2, 767)
4. Effect as to fruits (Art. 768)

LEASE

1. General characteristics (of every lease)


i. temporary duration
ii. onerous
iii. price is fixed according to contract duration

2. Kinds of Leases
a. Lease of things – movables and immovables
b. Lease of work or contract of labors (Arts. 1700-1712)
c. Lease of services
i. household service
ii. contract for a piece of work (Arts. 1713-1731)
iii. lease of services of common carriers (Art. 1732-1763)
3. Lease of Things
a. Concept – (Art. 1643)
b. Consumable things cannot be the subject matter of lease, except:
(Art. 1645)
i. consumable only for display or advertising (lease ad pompam et
ostentationem)
ii. goods are necessary to an industrial establishment, e.g. coal in a
factory
c. Special characteristics of lease of things:
i. essential purpose is to transmit the use and enjoyment of a thing
ii. consensual
iii. onerous
iv. price fixed in relation to period of use or enjoyment
v. temporary
d. Lease distinguished from sale, usufruct, commodatum
e. Period of lease – cannot be perpetual
i. definite period – not more than 99 years
ii. indefinite period:

31
a. rural land (Art. 1682)
b. urban land (Art. 1687)
f. Assignment of lease (Art. 1649)
g. Sublease (Art. 1650)
i. House Rental Law (R.A. 877) now RA 9161
ii. obligation of sublessee to lessor (Art. 1651)
a. for rents (Art. 1652)
h. Rights and obligations of lessor and lessee:
i. obligations of lessor (Art. 1654, 1661)
ii. obligations of lessee (Art. 1657, 1662, 1663, 1665, 1668, 1667)
iii. right of lessee to suspend payment of rentals (Art. 1658)
iv. right to ask for rescission (Art. 1659, 1660)
v. lessor not obliged to answer for mere act of trespass by a third
person (Art. 1664)
i. Grounds for ejectment of Lessee by Lessor (Art. 1673) (Note: the
grounds under the RA 1961 Rental Reform Act of 2002, RA 9653
& RA 9341; Query. Are they still effective?),
j. Right to ask for writ of preliminary mandatory injunction in
unlawful detainer cases (Art. 1674; 539 par. 2)
k. Implied extension of lease (Arts. 1670, 1682, 1687, 1675)
l. Right of purchaser of leased land (Art. 1676, 1677)
m. Useful improvements in good faith made by lessee (Art. 1678)
n. Special provisions for leases of rural lands (Art. 1680-1685)
o. Special provisions for leases of urban lands (Art. 1686-1688)

Prepared by: Approved by:

ATTY. ETHEL A. MALABANAN ATTY. EDGARD E. VALDEZ


Part-time Professor Dean, College of Law

32