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PERSONS
Basis of the rule is the right of the State to protect itself and its
policies in order to achieve its ends.
“Art. 14. Penal laws and those of public security and safety shall be obligatory
upon all who live or sojourn in Philippine territory, subject to the principles of public
international law and to treaty stipulations”
Thus, any offense committed by any person (Filipino or alien) within the territory of
the country is an offense against the State. The State has, therefore, the power to
prosecute and punish the offender, national of foreigner.
Exceptions:
EXTRATERRITORIAL JURISDICTION:
1
“The juridical power of the State extending beyond the physical
limits of a particular state or country.” (Blacks Law Dictionary., 6th
Ed.)
3. Should be liable for acts connected with the introduction into these Islands
of the obligations and securities mentioned in the preceding number;
5. Should commit any of the crimes against national security and the law of
nations, x x x
2
b. If the crime aboard a private or merchant vessel of a
foreign state took place INSIDE Phil. Territorial waters – two
theories, the English rule (emphasizes the territorial principle) and
the French rule (emphasizes the nationality theory)
English Rule – the territory where the crime was committed will
have jurisdiction, except:
2. and those which affect solely the ship and its occupants
such as minor or petty criminal offenses committed by members of
the crew.
French Rule - the state whose flag is flown by the vessel, would
have jurisdiction except if the crime affects the peace, order,
security, and safety of the territory.
NATIONALITY PRINCIPLE:
3
“Art. 15. Laws relating to family rights and duties, or to the status, condition and
legal capacity of persons are binding upon the citizens of the Philippines even though
living abroad.”
Examples:
(1) ON MARRIAGE:
4
“Art. 17. The forms and solemnities of contracts, wills, and other public instruments
shall be governed by the laws of the country in which they are executed.”
“Art. 16. Real property as well as personal property is subject to the law of the
country where it is situated.”
The law of the Phils. The general rule of lex loci voluntatis
(law of the place voluntarily agreed upon) or lex loci
intentionis (law of the place intended) yields to the lex rei
sitae because the subject matter is land found in the
Philippines.
5
(2) Contracts involving real property but which do not deal
with the title to such real property shall not necessarily be
governed by the lex rei sitae. The proper law of the
contract governs
PREJUDICIAL QUESTION
FAMILY CODE
6
Validity of Marriage – in determining the validity of marriage, it is to
be tested by the law in force at the time the marriage was contracted.
a. Essential requisites:
7
1.1. incumbent member of the judiciary
within the court’s jurisdiction;
8
d. co-habitation for at least five years and
without any legal impediments to marry each
other; (Art. 34)
C. Void Marriages
9
1. Void marriages under Art. 35
10
4.9. Between parties where one, with the intention to
marry the other, killed that other person’s spouse or
his or her own spouse
5. Marriages under Art. 40
KINDS:
11
3.3 Concealment of sexually transmissible disease,
regardless of its nature, existing at the time of the
marriage; or
3.4 Concealment of drug addiction, habitual alcoholism,
or homosexuality or lesbianism existing at the time
of the marriage
12
4. Those subsequent marriages that are void under Art. 53
C. PROPERTY RELATIONS
1. Kinds:
a. Must be in writing
b. Signed by the parties
c. Executed before the marriage
d. Any subsequent modification must be made before the
celebration of the marriage
13
a. Limitation – If the future spouses agree upon a regime
other than the ACP, they cannot donate to each other in
their marriage settlements more than 1/5 of their present
property. Any excess shall be considered void. (Art. 84)
b. Revocation of donation by reason of marriage: (Art. 86)
DPN may be revoke by the donor in the following cases:
5. If it is with a resolutory
condition and the condition is complied with
6. When the donee has
committed an act of ingratitude as provided in the
provisions of the Civil Code on donations in general.
14
Consists of all the property owned by the spouses at the time
of the celebration of the marriage or acquired thereafter.
(Art. 91)
1. Concept:
15
b. Art. 117
16
time of improvement, the entire property of one spouse
shall belong to the CPG. (Art. 120)
17
(a) Articles 36 (psychological incapacity;
1. Legitimate children
2. Illegitimate Children
18
Children conceived and born outside a valid marriage are
illegitimate; unless otherwise provided by the Family code.
(Art. 165)
3. Legitimated Children
4. Adopted children
Art. 166. Legitimacy of a child may be impugned only on the following grounds:
1.) That it was physically impossible for the husband to have sexual
intercourse with his wife within the first 120 days of the 300 days
which immediately preceded the birth of the child because of:
19
b.) the fact that the husband and wife were living
separately in such a way that sexual intercourse was not possible;
Art. 167. The child shall be considered legitimate although the mother
may have declared against its legitimacy or may have been sentenced as
an adulteress.
“If H and W are married and if the wife gives birth to a child of
her paramour, the said child is born inside the valid marriage of the
wife and the husband. The child is considered legitimate as to H and
W. Only the husband can impugn the legitimacy of the child. If the
paramour files an action for the custody of the child contending that he
is the natural father, the action will fail because only the husband, as a
general rule, can claim that the child is illegitimate in a direct action
for that purpose and only under the grounds provided by law.”
20
Not even the child can bring an action to claim his filiation with
his mother’s paramour. To do so would allow him to repudiate his own
legitimacy.
If the husband was informed by his wife that their four year old
child is not his, he can no longer file an action to impugn the
legitimacy of the child since the law specifically stats that the
prescriptive period begins to run from knowledge of the birth of the
child or its recording in the civil registrar and not from subsequent
knowledge that the child is not his.
PROPERTY
21
Thus, where a tenant places the machinery under the express
provision of lease that it shall become part of the plant belonging
to the owner upon the termination of the lease without
compensation to the lessee, the tenant acts as an agent of the
owner and the immobilization of the machinery takes place by
reason of permanent destination to the machinery. But if the
attachment or immobilization is for the use of the lessee which
does not inure to the lessor at the end of the lease contract,
then it remains personal property.
• Article 441. to the owner belongs the natural, industrial and civil
fruits. Thus all fruits belong to the owner of a thing. Exceptions;
a person, other than the owner of a property, owns the fruits
thereof:
22
a. possession in good faith by another – the possessor
in good faith is entitled to the fruits received before
the possession is legally interrupted (Art. 544);
• Art. 449. Builder, sower, or planter (BPS) in Bad faith – The BPS
FORFEITS what he has built, planted or sown without any right
to be paid indemnity therefore. He is, however, entitled to
23
reimbursement for necessary expenses of preservation of the
land incurred by him (Art. 452) but without the right of retention
until reimbursement which is given to a possessor in good faith
(Art. 546)
• CO-OWNERSHIP
24
Co-owners obligation to contribute to expenses:
25
per se. The sale is valid subject only to the condition
that the interests acquired by the vendee must be
limited to the part that may be assigned to the co-
owner-vendor in the division upon the termination of
the co-ownership.
26
prescription ( repudiation of the co-ownership having been
successful)
27
themselves against tardy claims. Partition is not covered by the
Statute of Frauds because partition is not a conveyance of
property but simply a segregation and designation of the part of
the property which belongs to the co-owners.
28
Obligations of the usufructuary:
29
2. the parents who are the usufructuaries of their children’s
property, except when the parents contract a second (or
subsequent) marriage;
• DONATIONS
o Kinds:
30
4. onerous – that the value of which is considered the
equivalent of the consideration for which it is given and is
thus governed by the rules on obligations and contracts
(Art. 733)
• Who may ask for reduction? Only those who at the time of the
donor’s death have a right to the legitime and their heirs and
successors in interest may ask for the reduction of inofficious
31
donations. They cannot renounce their right during the lifetime
of the donor. (Art. 771)
32
manner and for the period prescribed by law as to entitle him to
registration in his name, then the proscription against
corporations acquiring alienable lands of the public domain
except through lease does not apply for the land was no longer
public land but private property.
33
the registration court had no jurisdiction over the said included
and additional area and its adjudication to the applicant over the
additional area is a nullity.
34
decree, and none of them had been a party in the registration
proceedings, the writ of possession will, not issue. A person who
took possession of the land after final; adjudication of the same
in registration proceedings cannot be summarily ousted through
a writ of possession secured by a mere motion and that
regardless of any title or lack of title of persons to hold
possession of the land in question, they cannot be ousted
without giving them their day in court in proper independent
proceedings. The remedy is to institute a separate action for
unlawful entry or detainer or for reinvindicatory action, as the
case may be.
35
Within one (1) year from the issuance of the decree
of registration and that the registration was procured
through actual fraud provided that the property has
not passed to an innocent purchaser for value
36
The prohibition starts from the date of approval up to and
including the fifth year from and after the date of the issuance
of the patent or grant. The patent is considered issued once
the order for its issuance is promulgated and therefore, the five
year period is computed from this date and not from the date of
registration with the Register of Deeds or from the date of the
certificate of title.
The five year period of redemption fixed in Sec. 119 of the PLA
of homestead sold at extrajudicial foreclosure begins to run from
the date after the expiration of the 1 year period of repurchase
allowed in an extrajudicial foreclosure. Five year period starts
to run after the expiration of the redemption period under Act.
3135, as amended, within which to exercise the right to
repurchase under the PLA.
SUCCESSION
37
The rights to the succession are transmitted from the moment of
death of the decedent. (Art. 777)
To the heir passes not only the right of ownership, but also the
right of possession as of the moment of death of the
predecessor. The possession of the hereditary property is
deemed transmitted to the heir without interruption and from
the moment of death of the decedent in case the inheritance is
accepted.
38
The law permits a testator to disinherit a compulsory heir for any
of the causes provided by law and such disinheritance is
expressly required to be made in a will (Art. 916). A valid
disinheritance is in effect a disposition of the property of the
testator in favor of those who would succeed in the absence of
the disinherited heir. Unless the will is probated, the
disinheritance cannot be given effect.
1. purely personal
2. it is a free act without violence, fraud or deceit;
3. it is essentially revocable
4. it is formally executed
5. the testator has to have testamentary capacity
6. it is a unilateral act
7. it is an act mortis cause
8. purely statutory
39
Under our Conflicts laws, when the nationality laws cannot apply,
the domiciliary laws shall apply. If one is an alien residing in the
Philippines, the nationality or domiciliary laws shall govern the
formal validity of the will.
It is the law at the time when the succession opens which must
determine the intrinsic validity of the provisions of the will,
because it is at this time that the rights are transmitted to the
heirs, devisees, or legatees.
40
PLACEMENT OF ATTESTING SIGNATURES - the attesting
signature of the testator must be found at the logical end of the
will, otherwise the will is void. The attesting signature of the
witnessed must be found at the end of the attestation clause
otherwise, the will is void.
If executed by foreigners:
41
b. If executed in the Philippines, the joint will is void
because it is against our public policy.
EXCEPTION to disqualifications:
42
Whether or not the probate court has jurisdiction to settle issues
of ownership
PRETERITION
43
1. The person is not an heir, not a devisee, not a legatee -
meaning he receives nothing by will;
2. No donation inter vivos was given to him, which may be
considered as an advance of his legitime. If he is already
given such, then he has already received part of his
legitime such that if he were omitted, his remedy would be
to demand the completion of his legitime.
3. There must not have been anything which could be
inherited by intestacy which means that the whole estate
was distributed by will.
EFFECTS OF PRETERITION:
GUIDELINES IN PRETERITION:
44
6. If the omitted heir predeceases the testator, the
institution is effectual without prejudice to the right of
representation
7. Illegitimate ascendants or descendants are included even
adopted children
8. If the compulsory heir was given even just a small share,
there is no preterition. Merely complete his legitime
9. If a chikld has been given a donation inter vivos, there is
no preterition. The donation is an advance of his legitime
so he is entitled only to a completion of his legitime
10. The omission of the surviving spouse in the will is not
preterition. Just give the legitime of the surviving spouse
11. Brother and sister omitted does not result in
preterition. They are not in the direct line
REQUISITES:
45
DISPOSITION CAPTATORIA – a disposition on condition that the
heir shall make in his will a provision in favor of the testator or
any other person. The disposition itself is void, not just the
condition.
DISINHERITANCE:
RESERVA TRONCAL:
REQUISITES:
46
1. the transfer of property by gratuitous title to the descendant
from an ascendant or brother or sister;
2. the existence in the inheritance of such property acquired by
the descendant;
3. the existence of an ascendant who inherited property from
the descendant by operation of law; and
4. the existence of relatives of the descendant within the 3rd
degree from the line from where the properties came from.
PARTIES:
47
PROPERTIES SUBJECT TO RESERVA TRONCAL – the very same
property which the prepositus acquired from the ascendant or brother
or sister by gratuitous title since the reserve troncal is an
encumbrance on the property itself. The kind of property is immaterial
because as long as such property came from the origin by gratuitous
title, then there is a possibility of reserve.
a. In TESTATE SUCCESSION:
b. in INTESTATE SUCCESSION
CREDIT TRANSACTIONS
LOAN:
Characteristics:
48
5. Bailee need not be the owner of the subject matter but he
must have possessory interest over the thing
6. The death of the bailor or the bailee extinguishes the
contract of loan. It is thus personal in character
The bailee is liable for ordinary expenses for the use and the
preservation of the thing loaned.
A bailee is not liable for loss pr damage of the thing loaned due
to fortuitous event. Exceptions:
the bailor has the obligation to allow the bailee to use the thing
loaned for the duration or the period stipulated or until the
accomplishment of the purpose for which the commodatum was
constituted. The bailor can demand the thing loaned when:
the bailor may also demand the return of the thing loaned when
the bailee has committed any act of ingratitude
49
understanding that the same amount of the same kind and
quality shall be paid.
DEPOSIT
GUARANTY
50
• Is a contract whereby a person binds himself to the
creditor to fulfill the obligation of the principal debtor in
case the latter should fail to do so.
• Characteristics:
1. It is an accessory contract
2. It is subsidiary and conditional
3. Unilateral
4. The guarantor must be a person distinct from the
principal debtor
51
4. When the guarantor has absconded or cannot be sued
within the Philippines unless he left a manager or
representative
5. If it may be presumed that an execution on the debtor’s
property will not satisfy the obligation
6. If the guarantor does not set up the benefit of
exhaustion and fails to point out to the creditor
available property of the debtor within the Philippines
7. If he is a judicial bondsman and sub-surety
8. Where a pledge or mortgage has been given by the
guarantor as a special security
9. If the guarantor fails to interpose it as a defense before
judgment is rendered against him
PLEDGE
• Characteristics:
52
4. Subsidiary contract – the obligation incurred does
not arise until the fulfillment of the principal
obligation to which it secures
• Essential requirements:
• Pledgor cannot ask for the return of the thing pledged until
the principal obligation is fully paid including interest due
thereon and expenses incurred for its preservation. But the
pledgor is allowed to substitute the thing pledged which is
in danger of destruction or impairment with another thing
of the same kind and quality.
53
return of the thing pledged is necessary for the pledge to
renounce or abandon the pledge.
REAL MORTGAGE
• Characteristics:
54
fulfillment of the obligation for whose security it was
constituted.
• REDEMPTION BY MORTGAGOR:
55
1. the EQUITY OF REDEMPTION is the right of the
mortgagor after the judgment in foreclosure proceedings,
within a period of not less than 90 days before the sale or
confirmation of the sale, to pay into the court the amount
of the judgment debt.
CHATTEL MORTGAGE:
56
• AFFIDAVIT OF GOOD FAITH – “We severally swear that the
foregoing mortgage is made for the purpose of securing
the obligations specified in the condition thereof, and for
no other purpose, and that the same is a just and valid
obligation, and one not entered into for the purpose of
fraud.”
ANTICHRESIS:
57
• “By the contract of antichresis the creditor acquires the
right to receive the fruits of an immovable of his debtor,
with the obligation to apply them to the payment of the
interest, if owing and thereafter to the principal of his
credit.” Art. 2132.
58
• When a contract of loan with security does not stipulate
the payment of interest but provides for the delivery to the
creditor by the debtor of the real property constituted as
security for the payment thereof, in order that the creditor
may administer the same and avail himself of the fruits,
without stating that said fruits are to be applied to the
payment of interest, if any, and afterwards to that of the
principal of the credit, the contract shall be considered to
be one of mortgage and not antichresis.
I. SCOPE OF OBLIGATIONS.
A. OBLIGATION TO GIVE
59
substituted unless the creditor agrees (Art. 1244)
or the right is reserved.
2. Accessory obligations.
60
“The creditor has a right to the fruits of the
thing from the time the obligation to deliver it
arises”. (Art. 1164, first part)
1. Principal obligation:
B. OBLIGATION TO DO.
61
1. He may not substitute another forbearance,
nor the forbearance of another, unless the
creditor consents.
62
2. If the contract rescinded is onerous, there
must be fraudulent intent; such intent is not
required in subrogatory actions
63
ANCILLARY REMEDIES OF THE CREDITOR (To insure collection of
Judgment):
1. In obligations to give:
64
iii. The above rules are without prejudice to
express contrary stipulation.
b. Deterioration -
c. Improvement.
65
a. In case of loss, deterioration or improvement of the
thing, the rules of Art. 1189 shall be applied to the party who is bound
to return.
66
2. “The court shall decree the rescission (resolution) claimed ,
unless there be just cause authorizing the fixing of a
period” for performing the obligation (Art. 1191)
EXCEPT: (the court may not grant further time)
a. In non-payment of rent under Art. 1659
b. In case of failure of a partner to make the
contributions promised (Art. 1788)
ALTERNATIVE OBLIGATIONS
67
of the obligation, the debtor may rescind with damages (Art.
1203).
LOSS OR IMPOSSIBILITY, BEFORE ELECTIONS:
o Of one alternative – the debtor is to choose one of
those remaining.
o Of all but one – the obligation ceases to be alternative,
and becomes simple, to be performed subject to
general rules (Art. 1202).
o Of all alternatives –
By fault of the debtor: The creditor has the right
to indemnify for damages.
By fortuitous event – the creditor bears the loss
68
FACULTATIVE OBLIGATIONS
CONCEPT: When only one prestaion has been agreed upon (and is
due) but the obligor may render another in substitution, the
obligations is called facultative (Art. 1206)
BEFORE SUBSTITUTION:
AFTER SUBSTITUTION:
JOINT OBLIGATIONS
EFFECTS:
69
a. If the division is impossible, the rights of the
creditors may be prejudiced only by their
collective acts (act of one does not prejudice
the others)
RULES:
1. Each joint creditor can only demand his share of the credit.
70
2. Each joint debtor can only be required to pay his share of
the debt.
SOLIDARY OBLIGATIONS:
EFFECTS:
71
a. Each debtor is bound to perform the whole obligation
(Art. 1207)
PERSONAL DEFENSES -
72
o The same extinctive leffect is produced by novation,
compensation, confusion or remission by a creditor
with any solidary debtor (Art. 1215)
o Except where –
o Remission is partial, when the balance can be
collected from any of the solidary debtors; or
o Remission is of the solidary character only,
73
a. If payment is made after the obligation has
prescribed or become illegal (art. 1218)
A. APPLICATIONS OF PAYMENTS
CONCEPT:
REQUISITES:
RULES:
74
o By designation of the debtor at the time he makes the payment
(art. 1252)
o In default thereof, by the application stated in the receipt issued
by the creditor
o Unless there is a cause for invalidating the contract (Art.
1251), which means :
Unless the payment is void, because the debt itself is
void
Unless the acceptance of the receipt by the debtor is
voidable for vice of consent
o By operation of law, if no application is made by the debtor and
no proposal by the creditor
o If the debt produces interest, payment is not deemed
applied to the principal unless the interests are covered
(Art. 1253)
o If no application is inferable from the circumstances of
payment, the latter is applied
To the debt most onerous (Art. 1254)
If the debts are due of the same nature and burden,
the payment shall be applied to all in proportion (art.
1254)
Application of payments may not be invoked by a
surety or solidary guarantor nor by a partner under
Art. 1753.
o Payment by Assignment ( Art. 1255)
o CONCEPT:
It is the act whereby a debtor abandons all his
property to his creditors, so that the latter may apply
the proceeds to their credits.
o REQUISITES:
Plurality of debts
Plurality of creditors
Partial or relative insolvency of the debtor
Abandonment of the totality of the debtor’s
properties for the benefit of the creditors;
Acceptance by the creditors
o Dation in Payment (dation in solutum)
o CONCEPT:
It is an act “whereby property (of the debtor) is
alienated to the creditor in satisfaction of debt in
money” (Art. 1245)
This is valid provided it is –
• Not in prejudice of other creditors
75
• Not “pactum commissorium”
o DATION IN PAYMENT DISTINGUISHED FROM ASSIGNMENT
FOR THE BENEFIT OF CREDITORS
Distinctions:
• Dation transfers ownership of the substituted
thing to the creditor; assignment only entitles
creditors to sell the thing and apply the price
to the credit.
• Dation extinguishes totally the credit;
assignment, only to the extent of the price
obtained.
• Assignment requires two or more creditors; in
Dation there may be only one creditor
• Dation is novatory; assignment is not.
Effect:
• The obligation is extinguished (Art. 1245)
• The modern doctrine considers dacion en pago
as novation by a change of object
• Dation is governed by the law of sales
o TENDER OF PAYMENT AND CONSIGNATION
CONCEPT:
• Tender of payment is the declaration of
intention by the debtor manifesting his firm
decision to pay, coupled with a demand upon a
creditor to accept immediate performance; and
its unjustified refusal must be followed by
consignation.
• Consignation is the deposit of the thing due
made by the debtor in lawful form, whenever
the creditor refuses or cannot accept payment
• The purpose of consignation is to avoid delay.
Thus, were one of several co-owners received
the purchase price in the form of a check and
deposits it in his current account, and then the
transaction was called off, the mere offer to
return the money cannot relieve him from
liability. His duty was to consign and failure to
do so makes him answerable to the buyer.
• Tender without consignation is not valid as
payment.
• But consignation was be made without tender,
when the tender is excused, as in the following
cases:
76
o When the creditor is absent, or unknown
or does not appear at the place of
payment
o When the creditor is incapacitated to
receive payment at the time it is due
unless he has a legal representative
o When without just cause, he refuses to
give a receipt
o When two or more persons claim the
same right to collect
o When the title to the obligation has been
lost (Art. 1256)
o When the creditor notifies the debtor I
advance that he will not accept payment
WHEN TENDER IS VALID
• It must be made in lawful currency (legal
tender)
• It should include interest due;
• It must be unconditional; but the creditor can
not vary the terms of a tender accepted by him
• An unaccepted offer in writing to pay is
equivalent to actual production and tender of
money or property
PROCEDURE IN CONSIGNATION
• Tender of payment and unjustified rejection
(except where tender is excused)
o It must be made strictly in consonance
with the provisions that regulate
payment (Art. 1257)
Therefore –Consignation is:
• Improper if the obligation is
not yet payable
• Improper if the consignation
is in a certified check. But
lack of prompt objection
cures this defect.
• Improper unless
unconditional
• First notice to interested parties.
o Necessity – in order that consignation
may release the obligor, it must first be
announced to the parties interested in
the obligation (Art. 1257)
77
Absence of notice invalidates
consignation of payment
o Parties interested are the creditor,
solidary co-creditors and co-debtors,
guarantors, pledges, mortgagees.
o Purpose of the notice is to give creditors
(and parties interested) a chance to
reconsider and accept payment thereby
avoiding litigation.
o Contents of the Notice
• Filing of Complaint against the Creditor
• Judicial Deposit of the thing due with proof of
tender and notice.
• Second notice to interested parties
o Failure to give second notice invalidates
consignation
But the filing of the complaint and
the service of summons takes the
place of the second notice
• Trial and judgment
o Once the consignation has been duly
made the debtor may ask the judge to
order the cancellation of the obligation
(Art. 1260)
The creditor at the trial may show
that consignation was improperly
made
Until the Court decides that
consignation was properly made,
the obligation is not extinguished
• Incident of consignation
o The debtor may withdraw the thing or
sum deposited leaving the obligation I
force –
Before the creditor accepts
consignation or
Before a judicial declaration is
issued that the consignation was
properly made
o Expenses of consignation, if properly
made, shall be charged to the creditor
(Art. 1259)
EFFECTS OF CONSIGNATION
78
• If the creditor accepts consignation – the
obligation is extinguished and the debtor is
liberated
• If the Court declares that consignation was
properly made – the same effect results
• If before approval of the Court, the debtor
withdraws the deposit consigned –
o With the approval of the creditor: the
obligation subsists, but-
Guarantors and co debtors are
liberated
Preference of the creditor over the
thing is lost (Art. 1261)
o Without approval of the creditor – the
obligation subsists without change in the
obligation of the guarantors, co-debtors
or the creditor’s right of preference.
• If the consignation is disapproved,
consignation is ineffective as payment
• Judicial Deposit of the sum due under a final
judgment does not require notices to parties
interest
COMPENSATION; CONCEPT:
79
1. That each one of the obligors be bound principally, and
that he be at the same time a principal creditor of the other. (Art.
1279)
a. deposit
b. commodatum
80
3. Nullity of the debt.
WAIVER OF COMPENSATION:
CONTRACTS; RULES:
1. Solemn contracts, which are not valid or binding until the form
prescribed by law is observed.
o Donations of real estate (Art. 749) (which require a public
instrument) or of movables if exceeding P5,000.00 (which
must be in writing) (Art. 748).
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o Transfer of large cattle (which requires transfer of the
certificate of registration)
o Stipulation to pay interest on loans (which must be in
writing) (Art. 1956)
o Sale of land through an agent (Art. 1874) (authority must
be in writing).
o Partnership to which immovables are contributed (which
requires a signed inventory attached to the public
instrument evidencing the contract of partnership) (Art.
1773).
o Stipulations limiting carrier’s liability to less than
extraordinary diligence (which must be in writing)
o Contract of antichresis (wherein the principal and interest
must be specified in writing (Art. 2134)
2. Real Contracts that require delivery for their perfection are not
binding if tradition is not made.
o But the sale of realty falls under the Statute of Fraud (Art.
1403).
o Lease for more than one year is also governed by the Statute of
Frauds as between the parties (private writing is sufficient)
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5. But in all other contracts contracts in which the undertaking of
one or both parties exceed 500 pesos, a private writing is
sufficient.
RESUME OF RULES:
CAUSES OF RESCISSION:
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Partitions of inheritance when there is lesion of ¼ or more for
one heir (Art. 1098)
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CONDITIONS FOR THE EXERCISE OF THE ACTION:
1. Of law
2. Of fact
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• Transfer of all or nearly all of the property, especially
where the debtor is financially embarrassed
• Transfer between father and son, where other
circumstances are also present. Relationship alone is not
per se a badge of fraud
• Failure of the vendee to take exclusive possession of the
property
• Gross disparity between the price and the real value
EFFECT OF RESCISSION
SALE
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1. emptio res speratae is the sale of a thing having a
potential existence; while emptio spei is the sale of a hope
or expectancy;
• Who between the vendor and the vendee must bear the risk of
loss after the contract of sale has been perfected, but before the
thing sold has been delivered?
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• EARNEST MONEY’ “Whenever earnest money is given in a
contract of sale, it shall be considered as part of the price and as
proof of the perfection of the contract.” Earnest money is part of
the purchase price advanced by the vendee to the vendor as a
token of the perfection of the contract.
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by one party without acceptance by the other, there is no
contract.
• Possession along with ownership is transferred to the vendee by
virtue of the notarized deed of conveyance.
• If the deed of sale is void, then the action for the declaration of
the contract’s nullity is imprescriptible. An action for
reconveyance of the property on a void contract does not
prescribe.
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fulfillment of a positive suspensive condition normally the
payment of the purchase price in the manner agreed upon.
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