Art.
1387 in relation to 1389
Article 1387. All contracts by virtue of which the debtor
alienates property by gratuitous title are presumed to
have been entered into in fraud of creditors, when the
donor did not reserve sufficient property to pay all debts
contracted before the donation.
Alienations by onerous title are also presumed fraudulent
when made by persons against whom some judgment has
been rendered in any instance or some writ of attachment
has been issued. The decision or attachment need not
refer to the property alienated, and need not have been
obtained by the party seeking the rescission.
In addition to these presumptions, the design to defraud
creditors may be proved in any other manner recognized
by the law of evidence.
Article 1389. The action to claim rescission must be
commenced within four years.
For persons under guardianship and for absentees, the
period of four years shall not begin until the termination of
the former's incapacity, or until the domicile of the latter is
known.
Art 1052
Heir is a debtor, heir does not want to receive
inheritance, creditor wants to receive – accion
reinvidicatoria
Article 1052. If the heir repudiates the inheritance to the
prejudice of his own creditors, the latter may petition the
court to authorize them to accept it in the name of the
heir.
The acceptance shall benefit the creditors only to an
extent sufficient to cover the amount of their credits. The
excess, should there be any, shall in no case pertain to the
renouncer, but shall be adjudicated to the persons to
whom, in accordance with the rules established in this
Code, it may belong.
Whereas 1387, rescission only
Article 1387. All contracts by virtue of which the debtor
alienates property by gratuitous title are presumed to
have been entered into in fraud of creditors, when the
donor did not reserve sufficient property to pay all debts
contracted before the donation.
Alienations by onerous title are also presumed fraudulent
when made by persons against whom some judgment has
been rendered in any instance or some writ of attachment
has been issued. The decision or attachment need not
refer to the property alienated, and need not have been
obtained by the party seeking the rescission.
In addition to these presumptions, the design to defraud
creditors may be proved in any other manner recognized
by the law of evidence.
Bar: Can a creditor be an heir (accept for the heir)
Answer: 1052
Article 1052. If the heir repudiates the inheritance to the
prejudice of his own creditors, the latter may petition the
court to authorize them to accept it in the name of the
heir.
The acceptance shall benefit the creditors only to an
extent sufficient to cover the amount of their credits. The
excess, should there be any, shall in no case pertain to the
renouncer, but shall be adjudicated to the persons to
whom, in accordance with the rules established in this
Code, it may belong.
Art 1177, Art 2236 (similar provision)
Article 1177. The creditors, after having pursued the
property in possession of the debtor to satisfy their claims,
may exercise all the rights and bring all the actions of the
latter for the same purpose, save those which are inherent
in his person; they may also impugn the acts which the
debtor may have done to defraud them.
Article 2236. The debtor is liable with all his property,
present and future, for the fulfillment of his obligations,
subject to the exemptions provided by law.
Q: If house of debtor is burned and get insurance and
has no other money, can creditor get insurance?
Ans: Yes. Art. 1269 Subrogation
Q: supposing debtor is the wife and hiwalay sa husband
and court ordered husband to support wife. Can the
creditor demand from husband for payment of the
debt?
Ans: generally no if legal support, unless the support
is not legal support but a contractual support beyond
the subsistence needed. Art. 205, in relation to Art. 208.
(the excess may be subjected)
Q: A is a surety, however A died a month before the
debt was due. Can creditor sue the debt surety?
Ans: no
Q: Is the debt surety liable for the debts of the principal
debtor? Is surety transmissible or purely personal?
Ans: Two types of sureties: personal (guaranty) and real
(mortgage).
Art 2056 based on property
Article 2056. One who is obliged to furnish a guarantor
shall present a person who possesses integrity, capacity
to bind himself, and sufficient property to answer for
the obligation which he guarantees. The guarantor shall
be subject to the jurisdiction of the court of the place
where this obligation is to be complied with.
*Surety is not personal, it’s patrimonial. You can
actually sue the estate.
*Surety debtor can recover the whole amount of the de
debt paid from the principal debtor. Solidary debtor can
only recover share.
Q: What if the surety is a guarantor and not a surety?
Ans: Article 2059. The excussion shall not take place:
(1) If the guarantor has expressly renounced it;
(2) If he has bound himself solidarily with the debtor;
(3) In case of insolvency of the debtor;
(4) When he has absconded, or cannot be sued within
the Philippines unless he has left a manager or
representative;
(5) If it may be presumed that an execution on the
property of the principal debtor would not result in the
satisfaction of the obligation.
Q: A gave usufruct to B. Condition: usufruct continues
until the son reaches age of 2 but son died
-does the death extinguish the obligation? No
-is usufruct extinguished by the death of usufructuary?
Yes.
Article 603. Usufruct is extinguished:
(1) By the death of the usufructuary, unless a contrary
intention clearly appears;
Q: mom im giving you usufruct of the fruits of the land,
however, those fruits shall be used to support the son
until college, but the son dies in high school, does
unsufruct continues?
Ans: Article 606. A usufruct granted for the time that
may elapse before a third person attains a certain age,
shall subsist for the number of years specified, even if
the third person should die before the period expires,
unless such usufruct has been expressly granted only in
consideration of the existence of such person.
Q: B executed promissory note in favor of A who is
creditor, without consent of B A assigned it to C, can it
be done? (creditor assigned the debt)
Ans: Yes. Article 1626. The debtor who, before
having knowledge of the assignment, pays his creditor
shall be released from the obligation.
*what if in the above, B authorized A to pay the debt?
-answer will be the same, also debt may be assigned
even without the consent of the debtor:
Article 1293. Novation which consists in substituting a
new debtor in the place of the original one, may be
made even without the knowledge or against the will of
the latter, but not without the consent of the creditor.
Payment by the new debtor gives him the rights
mentioned in articles 1236 and 1237.
Q: Supposing principal P owes money to A, P is
authorizing A to sell his land and apply the proceeds to
the debt and return excess, however before A could
sell, the principal dies, can A continue to sell? Is it
transmissible?
Ans: Article 1930. The agency shall remain in full
force and effect even after the death of the principal, if
it has been constituted in the common interest of the
latter and of the agent, or in the interest of a third
person who has accepted the stipulation in his favor.
*ordinarily agency is personal, Art 1920 principal may
revoke the agency at will, but Art 1919(3) agency is
extinguished by death of prinicipal or agent
Q: Let’s say it is ordinary agency “you sell the house and
lot for me”, principal died and agent did not know. Then
agency sells. Ans: it depends,
Article 1931. Anything done by the agent, without
knowledge of the death of the principal or of any other
cause which extinguishes the agency, is valid and shall
be fully effective with respect to third persons who may
have contracted with him in good faith.
Q: A bought ticket from common carrier 1 but CC 1
contracted different routes from CC 2. What are the
relationship between A and common carrier 1, A and
common carrier 2? Is there prinicipal and agency?
-agency relationship is between CC 1 and CC 2
-if there is negligence on CC2, can A sue CC1?
-ans: A can sue CC 1 because he was offloaded and did
not reach his destination, breach of contract
-what if CC 1 did everything and did not have any fault,
it was really just the officers of CC 2 who offloaded him,
can CC 1 be liable?
-ans: agency still applies, and principal still is liable for
the acts of the agent
Partnership
Q: One of the partners died, and his wife said make me
the partner in lieu of my husband, is it allowed? Is the
partnership dissolved by the death of one partner or is
it transmissible?
ans: partnership is dissolved by death of partner
ergo partnership is personal, agency is also personal
except if for common interest or there is another
contract that depends upon it (agency coupled with
interest)
Q: what about in commodatum, supposing there is a
period but bailee died before the period?
Article 1939. Commodatum is purely personal in
character. Consequently:
(1) The death of either the bailor or the bailee
extinguishes the contract;
Q: A and B lease contract, B has option to buy, lessee
before the lease expires subleased. Sublessee tendered
payment in option to buy. Lessor refused.
-is the lease transmissible? Yes
-can he exercise the option to buy? Yes. It is still
transmissible because it is purely property, no other
personal condition, it becomes personal if there is
personal consideration
-when the lease expired, the lessor did not demand that
the sublessee vacate, was there a lease contract
binding?
-tacita reconduccion (implied new lease),
however cannot have the option to buy anymore (last
sem topic)
Article 1813. A conveyance by a partner of his whole
interest in the partnership does not of itself dissolve the
partnership, or, as against the other partners in the
absence of agreement, entitle the assignee, during the
continuance of the partnership, to interfere in the
management or administration of the partnership
business or affairs, or to require any information or
account of partnership transactions, or to inspect the
partnership books; but it merely entitles the assignee to
receive in accordance with his contract the profits to
which the assigning partner would otherwise be
entitled. However, in case of fraud in the management
of the partnership, the assignee may avail himself of the
usual remedies.
In case of a dissolution of the partnership, the assignee
is entitled to receive his assignor's interest and may
require an account from the date only of the last
account agreed to by all the partners
-may assign the share but assignee cannot participate
Q: A borrowed money from bank and mortgage his
land, land was foreclosed, A died 6 months after
registration of sale. Can heirs recover the land?
ans: right of redemption is 1 year from time of
registration and since the right is transmissible, heirs
can recover
Q: what if only 1 heir paid, and other heirs wanted to
pay their part so they can have share of the land?
-ans: allowed, heirs are co-owners and law favors
heirship
Q: Supposing after 2 years of the sale, 1 of the heirs is
occupant.?
-ans: ownership is already consolidated na because
humana redemption period
Q: Are the heirs liable to the debts of their deceased
father?
-ans: Yes but only up to the extent of their inheritance
Q: A took an insurance for his life. What kind of
obligation is that? –obligation without a period
Q: what is the difference between an obligation with
condition from period? –in condition, no assurance it
will happen; in period, it will necessary come
Q: can period be based on past event?
-ans: no there is an uncertainty there
Q: when can you demand an obligation to perform
immediately?
-pure obligations
Q: Pacto de retro sale (conventional redemption) with
no period stated, how long should it last? 4 years
Article 1606. The right referred to in article 1601, in the
absence of an express agreement, shall last four years
from the date of the contract.
Should there be an agreement, the period cannot
exceed ten years.
However, the vendor may still exercise the right to
repurchase within thirty days from the time final
judgment was rendered in a civil action on the basis
that the contract was a true sale with right to
repurchase.
Q: I will give you the bike if you do not marry your
boyfriend within 1 week
-negative suspensive condition
Q: B borrowed money from A and says in the
promissory note that B will pay when he has money
-Article 1180. When the debtor binds himself to pay
when his means permit him to do so, the obligation
shall be deemed to be one with a period, subject to the
provisions of article 1197.
Q: in determining the period and collection of money,
can the action be done in one action?
-no, determine period first (Borromeo case, CPU vs CA
case)
Q: what if: A borrowed money from B to plant rice and
promised to pay B in harvesting time, and before
harvesting all crops destroyed by typhoon, should A
pay?
-yes
Q: I will give this bike when MV manila arrives in
dumaguete, MV manila did not arrive because it was a
Sunday, should I give you the bike?
-No. It is a resolutory condition (walay klaro ni na part)
Q: I will pay you when MV manila arrives on Tuesday, it
did not arrive
-the arrival is not the condition, it is the period is the
intent of the parties that it will really be paid on
Tuesday. So it depends on parties if they are certain on
the arrival
Q: I will pay you when I want to pay you
-void
Article 1182. When the fulfillment of the condition
depends upon the sole will of the debtor, the
conditional obligation shall be void. If it depends upon
chance or upon the will of a third person, the obligation
shall take effect in conformity with the provisions of this
Code.
Article 1197. If the obligation does not fix a period, but
from its nature and the circumstances it can be inferred
that a period was intended, the courts may fix the
duration thereof.
The courts shall also fix the duration of the period when
it depends upon the will of the debtor.
In every case, the courts shall determine such period as
may under the circumstances have been probably
contemplated by the parties. Once fixed by the courts,
the period cannot be changed by them.
Q: A a married man was interested to have sex with 19
year old girl and said, I will give you 1 million of my own
exclusive property if u have sex with me tonight. Girl
accepted. The man died while doing it. is the donation
valid?
Bar: What is the difference in donations, wills and
contracts if the condition is against morals, customs,
laws?
-in contracts, Article 1409. The following contracts are
inexistent and void from the beginning:
(1) Those whose cause, object or purpose is contrary to
law, morals, good customs, public order or public policy;
(2) Those which are absolutely simulated or fictitious;
(3) Those whose cause or object did not exist at the
time of the transaction;
(4) Those whose object is outside the commerce of
men;
(5) Those which contemplate an impossible service;
(6) Those where the intention of the parties relative to
the principal object of the contract cannot be
ascertained;
(7) Those expressly prohibited or declared void by law.
These contracts cannot be ratified. Neither can the right
to set up the defense of illegality be waived.
-in succession, Article 873. Impossible conditions and
those contrary to law or good customs shall be
considered as not imposed and shall in no manner
prejudice the heir, even if the testator should otherwise
provide
-in donations, Article 727. Illegal or impossible
conditions in simple and remuneratory donations shall
be considered as not imposed.
In 727, condition is void but donation is valid
Q: Can the girl claim the 1 million? The donation was
not a donation because it was an onerous donation and
under 1409, void contract.
Article 733. Donations with an onerous cause shall be
governed by the rules on contracts and remuneratory
donations by the provisions of the present Title as
regards that portion which exceeds the value of the
burden imposed.
Q: what if he paid the 1 million first before the sex and
death, can the wife recover the 1 million from the girl or
can the heirs recover it?
-No. because in pari delicto
Article 1411. When the nullity proceeds from the
illegality of the cause or object of the contract, and the
act constitutes a criminal offense, both parties being in
pari delicto, they shall have no action against each
other, and both shall be prosecuted. Moreover, the
provisions of the Penal Code relative to the disposal of
effects or instruments of a crime shall be applicable to
the things or the price of the contract.

This rule shall be applicable when only one of the

parties is guilty; but the innocent one may claim what
he has given, and shall not be bound to comply with his
promise.