CIVIL LAW

BAR QUESTIONS AND ANSWERS

(2002 – 2017)

YEAR QUESTION ANSWER PRINCIPLES

2002 Felipe and Felisa, both Filipino citizens, were married in SUGGESTED ANSWER: A. (1.) The divorce secured ARTS 15, 16, 17
Malolos, Bulacan on June 1, 1950. In 1960 Felipe went to the by Felipe in California is recognizable and valid in the
United States, becoming a U.S. citizen in 1975. In 1980 they Philippines because he was no longer a Filipino at that time he
obtained a divorce from Felisa, who was duly notified of the secured it, Aliens may obtain divorces abroad which may be
proceedings. The divorce decree became final under California recognized in the Philippines provided that they are valid
Law. Coming back to the Philippines in 1982, Felipe married according to their national law (Van Dorn V. Romillo, Jr., 139
Sagundina, a Filipino Citizen. In 2001, Filipe, then domiciled in SCRA 139 [1985]; Quita v. Court of Appeals, 300 SCRA 406
Los Angeles, California, died, leaving one child by Felisa, and [1998]; Llorente v. Court of Appeals, 345 SCRA 595 [2000] ).
another one by Sagundina. He left a will which he left his estate to
(2). With respect to Felipe the divorce is valid, but with
Sagundina and his two children and nothing to Felisa. Sagundina
respect to Felisa it is not. The divorce will not capacitate Felisa
files a petition for the probate of Felipe’s will. Felisa questions the
to remarry because she and Felipe were both Filipinos at the
intrinsic validity of the will, arguing that her marriage to Felipe
time of their marriage. However, in DOJ Opinion No. 134
subsisted despite the divorce obtained by Felipe because said
series of 1993, Felisa is allowed to remarry because the
divorce is not recognized in the Philippines. For this reason, she
injustice sought to be corrected by Article 26 also obtains in
claims that the properties and that Sagundina has no successional

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 rights. her case.

A. Is the divorce secured by Felipe in California

SUGGESTED ANSWER: B. The foreigner who
recognizable and valid in the Philippines? How does it affect
executes his will in the Philippines may observed the
Felipe’s marriage to Felisa? Explain. (2%).
formalities described in:

B. What law governs the formalities of the will? Explain. 1. The Law of the country of which he is a citizen
(1%) under Article 817 of the New Civil Code, or

C. Will Philippine law govern the intrinsic validity of the 2. the law of the Philippines being the law of the place

will? Explain. of execution under Article 17 of the New Civil Code.

SUGGESTED ANSWER: C. Philippine law will not

govern the intrinsic validity of the will. Article 16 of the New
Civil Code provides that intrinsic validity of testamentary
provisions shall be governed by the National Law of the
person whose succession is under consideration. California law
will govern the intrinsic validity of the will.

2002 Felipe is a Filipino citizen. When he went to Sydney for A. LEX LOCI CONTRACTUS may be understood in FORUM NON
vacation, he met a former business associate, who proposed to him two senses, as follows: CONVENIENS &
a transaction which took him to Moscow. Felipe brokered a LEX LOCI
contract between Sydney Coals Corp. (Coals), an Australian firm,
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and Moscow Energy Corp. (Energy), a Russian firm, for Coals to
supply coal to Energy on a monthly basis for three years. Both
(1) It is the law of the place where contracts, wills, and
these firms were not doing, and still do not do, business in the
other public instruments are executed and governs their
Philippines. Felipe shuttled between Sydney and Moscow to close
―forms and solemnities‖, pursuant to the first paragraph,
the contract. He also executed in Sydney a commission contract
Article 17 of the New Civil Code; or
with Coals and in Moscow with Energy, under which contracts he
was guaranteed commissions by both firms based on a percentage (2) It is the proper law of the contract; e.i., the system
of deliveries for the three-year period, payable in Sydney and in of law intended to govern the entire contract, including its
Moscow, respectively, through deposits in accounts that he opened essential requisites, indicating the law of the place with which
in the two cities. Both firms paid Felipe his commission for four the contract has its closest connection or where the main
months, after which they stopped paying him. Felipe learned from elements of the contract converge. As illustrated by Zalamea v.
his contacts, who are residents of Sydney and Moscow, that the two Court of Appeals (228 SCRA 23 [1993]), it is the law of the
firms talked to each other and decided to cut him off. He now files place where the airline ticket was issued, where the passengers
suit in Manila against both Coals and Energy for specific are nationals and residents of, and where the defendant airline
performance. company maintained its office.

A. Define or explain the principle of ―lex loci contractus‖. ALTERNATIVE ANSWER: A. Under the doctrine of
(2%) lex loci contractus, as a general rule, the law of the place
where a contract is made or entered into governs with respect
to its nature and validity, obligation and interpretation. This
B. Define or explain the rule of ―forum non conveniens has been said to be the rule even though the place where the
(3%) contract was made is different from the place where it is to be
performed, and particularly so, if the place of the making and

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 the place of performance are the same (United Airline v. CA,
G.R. No. 124110, April 20, 2001).
C. Should the Philippine court assume jurisdiction over the
case? Explain. SUGGESTED ANSWER:

B. FORUM NON CONVENIENS means that a court

has discretionary authority to decline jurisdiction over a cause
of action when it is of the view that the action may be justly
and effectively adjudicated elsewhere.

SUGGESTED ANSWER:

C. No, the Philippine courts cannot acquire jurisdiction

over the case of Felipe. Firstly, under the rule of forum non
conveniens, the Philippine court is not a convenient forum as
all the incidents of the case occurred outside the Philippines.
Neither are both Coals and Energy doing business inside the
Philippines. Secondly, the contracts were not perfected in the
Philippines. Under the principle of lex loci contractus, the law
of the place where the contract is made shall apply. Lastly, the
Philippine court has no power to determine the facts
surrounding the execution of said contracts. And even if a
proper decision could be reached, such would have no biding
effect on Coals and Energy as the court was not able to acquire

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 jurisdiction over the said corporations. (Manila Hotel Corp. v.
NLRC. 343 SCRA 1, 1314[2000])

2002 On May 1, 1978 Facundo married Petra, by whom he had a A. The marriage with Quercia is void. The exemption MARRIAGE;
son Sotero. Petra died on July 1, 1996, while Facundo died on from the requirement of a marriage license under Art, 34, REQUISITES;
January 1, 2002. Before his demise, Facundo had married, on July Family Code, requires that the man and woman must have MARRIAGE
1, 2002, Quercia. Having lived together as husband and wife since lived together as husband and wife for at least five years and LICENSE
July 1, 1990, Facundo and Quercia did not secure a marriage without any legal impediment to marry each other during those
license but executed the requisite affidavit for the purpose. To five years. The cohabitation of Facundo and Quercia for six
ensure that his inheritance rights are not adversely affected by his years from 1990 to July 1, 1996 when Petra died was one with
father second marriage, Sotero now brings a suit to seek a a legal impediment hence, not in compliance with the
declaration of the nullity of the marriage of Facundo and Quercia, requirement of law. On other hand, the cohabitation thereafter
grounded on the absence of a valid marriage license. Quercia until the marriage on July 1, 2000, although free from legal
contends that there was no need for a marriage license in view for impediment, did not meet the 5-year cohabitation requirement.
her having lived continuously with Facundo for five years before
their marriage and that has Sotero has no legal personality to seek a
declaration of nullity of the marriage since Facundo is now ALTERNATIVE ANSWER: The marriage of Facundo
deceased. and Quercia is VALID. The second marriage was solemnized
on July 1, 2000, when the Family code was already affective.
The family code took effect on August 3, 1988. Under the
A. Is the marriage of Facundo and Quercia valid, despite the Family Code, no marriage license is required if the parties
absence of a marriage license? Explain. have been cohabiting for the period of five years and there is
no legal impediment. There must no legal impediment ONLY
AT THE TIME OF THE SOLEMNIZATION OF THE

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 B. Does Sotero have the personality to seek the declaration MARRIAGE, and not the whole five years period. This is
of nullity of the marriage, especially now that Facundo is already clearly the intent of the code framers (see Minutes of the 150th
deceased? Explain. joint Civil Code of the Family Law Committees held on
August 9, 1986). Also, in Manzano V. Sanchez, AM NO. MT
–00-129, March 8, 2001, the Supreme Court said that, as one
of the requisites for the exception to apply, there must be no
legal impediment at the time of the marriage. The Supreme
Court did not say that the legal impediment must exist all
throughout the five-year period. This is different from the case
of Nināl V. Bayadog, (328 SCRA 122 [2000]). In the said
case, the situation occurred during the Relations of the new
Civil Code where Article 76 thereof clearly provides that
during the five-year cohabitation, the parties must be
unmarried. This is not so anymore in the Family Code. The
Change in the Family Code is significant. If the second
marriage occurred before the effectivity of the Family Code,
the answer would that be that the marriage is void.

SUGGESTED ANSWER: B. A void marriage may be

questioned by any interested party in any proceeding where the
resolution of the issue is material. Being a compulsory heir,
Soterro has the personality to question the validity of the
marriage of Facundo and Quercia. Otherwise, his participation

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 in the estate on Facundo would be affected. (Ninãl V.
Bayadog, 328 SCRA 122 [2000] ).

2002 A. Give a brief definition or explanation of the term A. PSYCHOLOGICAL INCAPACITY‖ is a mental MARRIAGE;
―psychological incapacity‖ as a ground for the declaration of disorder of the most serious type showing the incapability of VOID
nullity of a marriage. (2%) one or both spouses to comply the essential marital obligations MARRIAGES;
of love, respect, cohabitation, mutual help and support, trust PSYCHOLOGICA
and commitment. It must be characterized by Juridical L INCAPACITY
B. If existing at the inception of marriage, would the state of antecedence, gravity and incurability and its root causes must
being of unsound mind or the concealment of drug addiction, be clinically identified or examined. (Santos v. CA, 240 SCRA
habitual alcoholism, homosexuality or lesbianism be considered 20 [1995]).
indicia of psychological incapacity? Explain.

B. In the case of Santos v. Court of Appeals, 240

SCRA 20 (1995), the Supreme Court held that being of
unsound mind, drug addiction, habitual alcoholism, lesbianism
or homosexuality may be indicia of psychological incapacity,
depending on the degree of severity of the disorder. However,
the concealment of drug addiction, habitual alcoholism,
lesbianism or homosexuality is a ground of annulment of
marriage.

2002 By virtue of a Codicil appended to his will, Theodore A. A MODAL INSTITUTION is the institution of an WILLS;
devised to Divino a tract of sugar land, with the obligation on the heir made for a certain purpose or cause (Arts. 871 and 882, CODICIL,

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part of Divino or his heirs to deliver to Betina a specified volume of NCC). SUBSTITUTION is the appointment of another heir so INSTITUTION OF
sugar per harvest during Betina’s lifetime. It is also stated in the that he may enter into the inheritance in default of the heir HEIRS;
Codicil that in the event the obligation is not fulfilled, Betina originality instituted. (Art. 857, NCC). SUBSTITUTION
should immediately seize the property from Divino or latter’s heirs OF HEIRS
and turn it over to Theodore’s compulsory heirs. Divino failed to
fulfill the obligation under the Codicil. Betina brings suit against B. In a SIMPLE SUBSTITUTION of heirs, the testator
Divino for the reversion of the tract of land. designates one or more persons to substitute the heirs instituted
in case such heir or heirs should die before him, or should not
wish or should be incapacitated to accept the inheritance. In a
a) Distinguish between modal institution and substation of FIDEICOMMISSARY SUBSTITUTION, the testator
heirs. (3%) institutes a first heir and charges him to preserve and transmit
the whole or part of the inheritance to a second heir. In a
simple substitution, only one heir inherits. In a

b) Distinguish between simple and fideicommissary fideicommissary substitution, both the first and second heirs
substitution of heirs. (2%) inherit. (Art. 859 and 869, NCC)

(c) Does Betina have a cause of action against Divino? C. Betina has a cause of action against Divino. This is a

Explain. case of a testamentary disposition subject to a mode and the

will itself provides for the consequence if the mode is not
complied with. To enforce the mode, the will itself gives
Betina the right to compel the return of the property to the
heirs of Theodore. (Rabadilla v. Conscoluella, 334 SCRA 522

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 [2000] GR 113725, 29 June 2000).

2002 Lauro owns an agricultural land planted mostly with fruit Hernando is wrong. It is true that Lauro’s land is EASEMENT;
trees. Hernando owns an adjacent land devoted to his piggery burdened with the natural easement to accept or receive the NUISANCE;
business, which is two (2) meters higher in elevation. Although water which naturally and without interruption of man ABATEMENT
Hernando has constructed a waste disposal lagoon for his piggery, descends from a higher estate to a lower estate. However,
it is inadequate to contain the waste water containing pig manure, Hernando has constructed a waste disposal lagoon for his
and it often overflows and inundates Lauro’s plantation. This has piggery and it is this waste water that flows downward to
increased the acidity of the soil in the plantation, causing the trees Lauro’s land. Hernando has, thus, interrupted the flow of water
to wither and die. Lauro sues for damages caused to his plantation. and has created and is maintaining a nuisance. Under Act. 697
Hernando invokes his right to the benefit of a natural easement in NCC, abatement of a nuisance does not preclude recovery of
favor of his higher estate, which imposes upon the lower estate of damages by Lauro even for the past existence of a nuisance.
Lauro the obligation to receive the waters descending from the The claim for damages may also be premised in Art. 2191 (4)
higher estate. Is Hernando correct? NCC.

ANOTHER ANSWER: Hernando is not correct.

Article 637 of the New Civil Code provides that the owner of
the higher estate cannot make works which will increase the
burden on the servient estate. (Remman Enterprises, Inc. v.
CA, 330 SCRA 145 [2000]). The owner of the higher estate
may be compelled to pay damages to the owner of the lower
estate.

2002 Senen and Peter are brothers. Senen migrated to Canada Senen’s action will prosper. Article 494 of the New OWNERSHIP;

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 early while still a teenager. Peter stayed in Bulacan to take care of Civil Code provides that ―no prescription shall run in favor of CO-OWNERSHIP;
their widowed mother and continued to work on the Family farm a co-owner or co-heir against his co-owners or co-heirs so long PRESCRIPTION
even after her death. Returning to the country some thirty years as he expressly or impliedly recognizes the coownership nor
after he had left, Senen seeks a partition of the farm to get his share notified Senen of his having repudiated the same.
as the only co-heir of Peter. Peter interposes his opposition,
ALTERNATIVE ANSWER: Senen’s action will
contending that acquisitive prescription has already set in and that
prosper. This is a case of implied trust. (Art 1441, NCC) For
estoppel lies to bar the action for partition, citing his continuous
purposes of prescription under the concept of an owner (Art.
possession of the property for at least 10 years, for almost 30
540, NCC). There is no such concept here. Peter was a co-
years in fact. It is undisputed that Peter has never openly claimed
owner, he never claimed sole ownership of the property. He is
sole ownership of the property. If he ever had the intention to do so,
therefore estopped under Art. 1431, NCC.
Senen was completely ignorant of it. Will Senen’s action prosper?
Explain.

2002 Antonio, Bart, and Carlos are brothers. They purchased SUGGESTED ANSWER: No, they may not redeem OWNERSHIP;
from their parents specific portions of a parcel of land as evidenced because there was no Coownership among Antonio, Bart, and CO-OWNERSHIP;
by three separates deeds of sale, each deed referring to a particular Carlos to start with. Their parents already partitioned the land REDEMPTION
lot in meter and bounds. When the deeds were presented for in selling separate portions to them. The situation is the same
registration, the Register of Deeds could not issue separate as in the case Si v. Court of Appeals, (342 SCRA 653 [2000]).
certificates of Title had to be issued, therefore, in the names of
three brothers as coowners of the entire property. The situation has
not changed up to now, but each of the brothers has been receiving
rentals exclusively from the lot actually purchased by him. Antonio
sells his lot to a third person, with notice to his brothers. To enable
the buyer to secure a new title in his name, the deed of sale was

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 made to refer to undivided Salvador, a timber concessionaire, built
on his lot a interest in the property of the seller (Antonio), with the
metes and bounds of the lot sold being stated. Bart and Carlos
reacted by signifying their exercise of their right of redemption as
co owners. Antonio in his behalf and in behalf of his buyer,
contends that they are no longer coowners, although the title
covering the property has remained in their names as such. May
Bart and Carlos still redeem the lot sold by Antonio? Explain.

2002 Sancho and Pacifico are co-owners of a parcel of land. SUGGESTED ANSWER: A. Carlos is a buyer in bad NOTICE OF LIS
Sancho sold the property to Bart. Pacifico sued Sancho and Bart for faith. The notice of lis pendens was still annotated at the back PENDENS;
annulment of the sale and reconveyance of the property based on of the title at the time he bought the land from Bart. The TRANSFEREE OF
the fact that the sale included his one- the obligation. However, the uncancelled notice of lis pendens operates as constructive PENDENTE LITE
action was brought within the half pro-indiviso share. Pacifico had notice of its contents as well as interests, legal or equitable,
a notice of lis pendens annotated on the title covering the property included therein. All persons are charged with the knowledge
and ordered the cancellation of the notice of lis pendens. The notice of what it contains. In an earlier case, it was held that a notice
of lis pendens could not be cancelled immediately because the title of an adverse claim remains effective and binding
over the property was with a bank to which the property had been notwithstanding the lapse of the 30 days from its inscription in
mortgaged by Bart. Pacifico appealed the case. While the appeal the registry. This ruling is even more applicable in a lis
was pending and with the notice of lis pendens still uncancelled, pendens.
Bart sold the property to Carlos, who immediately caused the
Carlos is a transferee pendente lite insofar as Sancho’s
cancellation of the notice of lis pendens, as well as the issuance of a
share in the co-ownership in the land is concerned because the
new title in his name. Is Carlos (a) a purchaser in good faith, or (b)
land was transferred to him during the pendency of the appeal.
a transferee pendente lite? If your answer is (a), how can the right

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of Pacifico as co-owner be protected? Explain. B. Pacifico can protect his right as a co-owner by
pursuing his appeal; asking the Court of Appeals to order the
re-annotation of the lis pendens on the title of Carlos; and by
invoking his right of redemption of Bart’s share under Articles
1620 of the New Civil Code.

ALTERNATIVE ANSWER: A. Carlos is a purchaser

in good faith. A possessor in good faith has been defined as
―one who is unaware that there exists a flaw which
invalidates his acquisition of the thing‖ (Art. 526, NCC). Good
faith consists in the possessor’s belief that the person from
whom he received the thing was the owner of the same and
could convey his title. In the case [at bar], in question, while
Carlos bought the subject property from Bart while a notice of
lis pendens was still annotated thereon, there was also an
existing court order canceling the same. Hence, Carlos cannot
be considered as being ―aware of a flaw which invalidates
[their] the acquisition of the thing‖ since the alleged flaw, the
notice of lis pendens, was already being ordered cancelled at
the time of the purchase. On this ground alone, Carlos can
already be considered a buyer in good faith. (Po Lam v. Court
of Appeals, 347 SCRA 86, [2000]).

B. To protect his right over the subject property,

Pacifico should have timely filed an action for reconveyance

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 and reinstated the notice of lis pendens.

2002 Way back in 1948, Winda’s husband sold in favor of Verde SUGGESTED ANSWER: A. LACHES means failure PRESCRIPTION
Sports Center Corp. (Verde) a 10-hectare property belonging to or neglect, for an unreasonable and unexplained length of time, & LACHES;
their conjugal partnership. The sale was made without Winda’s to do what, by exercising due diligence, could or should have INDEFEASIBILIT
knowledge, much less consent. In 1950, Winda learned of the sale, been done earlier. It is negligence or omission to assert a right Y RULE OF
when she discovered the deed of sale among the documents in her within a reasonable time. (De Vera v. CA, 305 SCRA 624 TORRENS TITLE
husband’s vault after his demise. Soon after, she noticed that the [1999])
construction of the sports complex had started. Upon completion of
B. While Article 1413 of the Spanish Civil Code did
the construction in 1952, she tried but failed to get free membership
not require the consent of the wife for the validity of the sale,
privileges in Verde.
an alienation by the husband in fraud of the wife is void as
Winda now files a suit against Verde for the annulment of held in Uy Coque v. Navas, 45 Phil. 430 (1923). Assuming
the sale on the ground that she did not consent to the sale. In that the alienation in 1948 was in fraud of Winda and,
answer, Verde contends that, in accordance with the Spanish Civil therefore, makes the sale to Verde void, the action to set aside
Code which was then in force, the sale in 1948 of the property did the sale, nonetheless, is already barred by prescription and
not need her concurrence. Verde contends that in any case the laches. More than 52 years have already (a) The mortgage
action has prescribed or is barred by laches. Winda rejoins that her contract executed by O, if at all, is only a elapsed from her
Torrens title covering the property is indefeasible, and discovery of the sale in 1950.
imprescriptible. A. Define or explain the term ―laches‖. (2%) B.
ALTERNATIVE ANSWER: B. Winda’s claim that
Decide the case, stating your reasons for your decision.
her Torrens Title covering the property is indefeasible and
imprescriptible [does not hold water] is not tenable. The rule of
indefeasibility of a Torrens Title means that after one year
from the date of issue of the decree of registration or if the land

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 has fallen into the hands of an innocent purchaser for value,
the title becomes incontestable and incontrovertible.

IMPRESCRIPTIBILITY, on the other hand, means that

no title to the land in derogation of that of the registered owner
may be acquired by adverse possession or acquisitive
prescription or that the registered owner does not lose by
extinctive prescription his right to recover ownership and
possession of the land.

The action in this case is for annulment of the sale

executed by the husband over a conjugal partnership property
covered by a Torrens Title. Action on contracts are subject to
prescription.

2002 Printado is engaged in the printing business. Suplico SUGGESTED ANSWER: No, the contentions of NATURE OF
supplies printing paper to Printado pursuant to an order agreement Printado are untenable. Printado having failed to pay for the CONTRACTS;
under which Suplico binds himself to deliver the same volume of printing paper covered by the delivery invoices on time, RELATIVITY OF
paper every month for a period of 18 months, with Printado in turn Suplico has the right to cease making further delivery. And the CONTRACTS
agreeing to pay within 60 days after each delivery. Suplico has latter did not violate the order agreement (Integrated
been faithfully delivering under the order agreement for 10 months Packaging Corporation v. Court of Appeals, (333 SCRA 170,
but thereafter stopped doing so, because Printado has not made any G.R. No. 115117, June 8, [2000]).
payment at all. Printado has also a standing contract with publisher
Suplico cannot be held liable for damages, for breach
Publico for the printing of 10,000 volumes of school textbooks.
of contract, as it was not he who violated the order agreement,
Suplico was aware of said printing contract. After printing 1,000

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 volumes, Printado also fails to perform under its printing contract but Printado. Suplico cannot be held liable for Printado’s
with Publico. Suplico sues Printado for the value of the unpaid breach of contract with Publico. He is not a party to the
deliveries under their order agreement. At the same time Publico agreement entered into by and between Printado and Publico.
sues Printado for damages for breach of contract with respect to Theirs is not a stipulation pour atrui. [Aforesaid] Such
their own printing agreement. In the suit filed by Suplico, Printado contracts do could not affect third persons like Suplico because
counters that: (a) Suplico cannot demand payment for deliveries of the basic civil law principle of relativity of contracts which
made under their order agreement until Suplico has completed provides that contracts can only bind the parties who entered
performance under said contract; (b) Suplico should pay damages into it, and it cannot favor or prejudice a third person, even if
for breach of contract; and (c) with Publico should be liable for he is aware of such contract and has acted with knowledge
Printado’s breach of his contract with Publico because the order thereof. (Integrated Packaging Corporation
agreement between Suplico and Printado was for the benefit of
v. CA, supra.)
Publico. Are the contentions of Printado tenable? Explain your
answers as to each contention.

2002 Stockton is a stockholder of Core Corp. He desires to sell Stockton is correct. There is no right of compensation EXTINGUISHME
his shares in Core Corp. In view of a court suit that Core Corp. has between his price of P10 million and Core Corp.’s NT;
filed against him for damages in the amount of P 10 million, plus unliquidated claim for damages. In order that compensation COMPENSATION
attorney’s fees of P 1 million, as a result of statements published by may be proper, the two debts must be liquidated and
Stockton which are allegedly defamatory because it was calculated demandable. The case for the P 10million damages being still
to injure and damage the corporation’s reputation and goodwill. pending in court, the corporation has as yet no claim which is
The articles of incorporation of Core Corp. provide for a right of due and demandable against Stockton.
first refusal in favor of the corporation. Accordingly, Stockton gave
ANOTHER MAIN ANSWER: The right of first
written notice to the corporation of his offer to sell his shares of P
refusal was not perfected as a right for the reason that there
10 million. The response of Core corp. was an acceptance of the

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 offer in the exercise of its rights of first refusal, offering for the was a conditional acceptance equivalent to a counter-offer
purpose payment in form of compensation or set-off against the consisting in the amount of damages as being credited on the
amount of damages it is claiming against him, exclusive of the purchase price. Therefore, compensation did not result since
claim for attorney’s fees. Stockton rejected the offer of the there was no valid right of first refusal (Art. 1475 & 1319,
corporation, arguing that compensation between the value of the NCC)
shares and the amount of damages demanded by the corporation
ANOTHER MAIN ANSWER: Even [if] assuming that
cannot legally take effect. Is Stockton correct? Give reason for your
there was a perfect right of first refusal, compensation did not
answer.
take place because the claim is unliquidated.

2002 Explain the nature of an option contract. An OPTION CONTRACT is one granting a privilege OPTION
to buy or sell within an agreed time and at a determined price. CONTRACT
It must be supported by a consideration distinct from the price.
(Art. 1479 and 1482, NCC)

2002 Bert offers to buy Simeon’s property under the following B. Bert’s action for specific performance will prosper PERFECTED
terms and conditions: P1 million purchase price, 10% option because there was a binding agreement of sale, not just an SALE;
money, the balance payable in cash upon the clearance of the option contract. The sale was perfected upon acceptance by ACCEPTANCE
property of all illegal occupants. The option money is promptly Simeon of 10% of the agreed price. This amount is in really OF EARNEST
paid and Simeon clears the property of illegal occupants in no time earnest money which, under Art. 1482, ―shall be considered MONEY
at all. However, when Bert tenders payment of the balance and ask as part of the price and as proof of the perfection of the
Simeon for the deed for absolute sale, Simeon suddenly has a contract.‖ (Topacio v. CA, 211 SCRA 291 [1992]; Villongco
change of heart, May Adela still exercise her right of redemption? Realty v. Bormaheco, 65 SCRA 352 [1975]).
Explain. claiming that the deal is disadvantageous to him as he has
C. Simeon cannot justify his refusal to proceed with the

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 found out that the property can fetch three time the agreed purchase sale by the fact that the deal is financially disadvantageous to
price. Bert seeks specific performance but Simeon contends that he him. Having made a bad bargain is not a legal ground for
has merely given Bert an option to buy and nothing more, and pulling out a biding contract of sale, in the absence of some
offers to return the option money which Bert refuses to accept. B. actionable wrong by the other party (Vales v. Villa, 35 Phil
Will Bert’s action for specific performance prosper? Explain. (4%) 769 [1916]), and no such wrong has been committed by Bert.
C. May Simeon justify his refusal to proceed with the sale by the
fact that the deal is financially disadvantageous to him? Explain.

2002 Adela and Beth are co-owners of a parcel of land. Beth sold SUGGESTED ANSWER: Yes, Adela may still REDEMPTION;
her undivided share of the property to Xandro, who promptly exercise her right of redemption notwithstanding the lapse of LEGAL;
notified Adela of the sale and furnished the latter a copy of the deed more than 30 days from notice of the sale given to her because FORMALITIES
of absolute sale. When Xandro presented the deed for registration, Article 1623 of the New Civil Code requires that the notice in
the register of deeds also notified Adela of the sale, enclosing a writing of the sale must come from the prospective vendor or
copy of the deed with the notice. However, Adela ignored the vendor as the case may be. In this case, the notice of the sale
notices. A year later, Xandro filed a petition for the partition of the was given by the vendee and the Register of Deeds. The period
property. Upon receipt of summons, Adela immediately tendered of 30 days never tolled. She can still avail of that right.
the requisite amount for the redemption. Xandro contends that
ALTERNATIVE ANSWER: Adela can no longer
Adela lost her right of redemption after the expiration of 30 days
exercise her right of redemption. As co-owner, she had only 30
from her receipt of the notice of the sale given by him. May Adela
days from the time she received written notice of the sale
still exercise her right of redemption? Explain.
which in this case took the form of a copy of the deed of sale
being given to her (Conejero v. CA, 16 SCRA 775 [1966]).
The law does not prescribe any particular form of written
notice, nor any distinctive method for notifying the

17
 redemptioner (Etcuban v. CA, 148 SCRA 507 [1987]). So long
as the redemptioner was informed in writing, he has no cause
to complain (Distrito v. CA, 197 SCRA 606, 609 [1991]). In
fact, in Distrito, a written notice was held unnecessary where
the co-owner had actual knowledge of the sale, having acted as
middleman and being present when the vendor signed the deed
of sale.

2002 Carlos sues Dino for (a) collection on a promissory note for With respect to the collection of money or promissory MUTUUM;
a loan, with no agreement on interest, on which Dino defaulted, and note, it being a forbearance of money, the legal rate of interest INTERESTS
(b) damages caused by Dino on his (Carlos’) priceless for having defaulted on the payment of 12% will apply. With
Michaelangelo painting on which Dino is liable on the promissory respect to the damages to the painting, it is 6% from the time
note and awards damages to Carlos for the damaged painting, with of the final demand up to the time of finality of judgment until
interests for both awards. What rates of interest may the court judgment credit is fully paid. The court considers the latter as a
impose with respect to both awards? Explain. forbearance of money. (Eastern Shipping Lines, Inc. v. CA,
234 SCRA 78 [1994]; Art 2210 and 2211, CC)

2002 A van owned by Orlando and driven by Diego, while No. Mechanical defects of a motor vehicle do not FORTUITOUS
negotiating a downhill slope of a city road, suddenly gained speed, constitute fortuitous event, since the presence of such defects EVENT;
obviously beyond the authorized limit in the area, and bumped a car would have been readily detected by diligent maintenance MECHANICAL
in front of it, causing severed damage to the care and serious check. The failure to maintain the vehicle in safe running DEFECTS
injuries to its passengers. Orlando was not in the car at the time of condition constitutes negligence.
the incident. The car owner and the injured passengers sued
Orlando and Diego for damages caused by Diego’s negligence. In

18
 their defense, Diego claims that the downhill slope caused the van
to gain speed and that, as he stepped on the brakes to check the
acceleration, the brakes locked, causing the van to go even faster
and eventually to hit the car in front of it. Orlando and Diego
contend that the sudden malfunction of the van’s brake system is a
fortuitous even and that, therefore, they are exempt from any
liability. Is this contention tenable? Explain.

2002 Does the presence of the owner inside the vehicle causing SUGGESTED ANSWER: In motor vehicle mishaps, LIABILITY;
damage to a third party affect his liability for his driver’s the owner is made solidarily liable with his driver if he (the OWNER WHO IS
negligence? Explain owner) was in the vehicle and could have, by the use of due IN THE VEHICLE
diligence, prevented the mishap. (Caedo v. Yu Khe Thai, 26
SCRA 410 [1968]).

2002 Ortillo contracts Fabricato, Inc. to supply and install tile A. There is no legal basis to Ortillo’s claim for moral MORAL
materials in a building he is donating to his province. Ortillo pays damages. It does not fall under the coverage of Article 2219 of DAMAGES;
50% of the contract price as per agreement. It is also agreed that the the New Civil Code. ATTY FEES
balance would be payable periodically after every 10%
B. Ortillo is entitled to attorney’s fees because
performance until completed. After performing about 93% of the
Fabricato’s complaint is a case of malicious prosecution or a
contract, for which it has been paid an additional 40% as per
clearly unfounded civil action. (Art. 2208 [4] and [11], NCC).
agreement, Fabricato, Inc. did not complete the project due to its
sudden cessation of operations. Instead, Fabricato, Inc. demands
payment of the last 10% of the contract despite its non-completion
of the project. Ortillo refuses to pay, invoking the stipulation that

19
 payment of the last amount 10% shall be upon completion.
Fabricato, Inc. brings suit for the entire 10%. Plus damages, Ortillo
counters with claims for (a) moral damages for Fabricato, Inc.’s
unfounded suit which has damaged his reputation as a
philanthropist and respect businessman in his community, and (b)
attorney’s fees. A. Does Ortillo have a legal basis for his claim for
moral damages? (2%) B. How about his claim for attorney’s fees,
having hired a lawyer to defend him?

2002 Explain the concept of vicarious liability in quasi-delicts. The doctrine of VICARIOUS LIABILITY is that VICARIOUS
which renders a person liable for the negligence of others for LIABILITY
whose acts or omission the law makes him responsible on the
theory that they are under his control and supervision.

2003 It is said that ―equity follows the law‖ What do you ―Equity Follows the law‖ means that courts exercising EQUITY
understand by this phrase, and what are its basic implications? equity jurisdiction are bound by rules of law and have no FOLLOWS THE
arbitrary discretion to disregard them. (Arsenal v IAC, 143 LAW
SCRA 40 [1986]). Equity is applied only in the absence of but
never against statutory law. (Toyota Motor Phil. V CA 216
SCRA 236 [1992]).

2003 Gene and Jane, Filipino, met and got married in England SUGGESTED ANSWER: No, Gene is not free to LAWS
while both were taking up post-graduate courses there. A few years marry his former girlfriend. His marriage to Jane is valid GOVERNING
after their graduation, they decided to annul their marriage. Jane according to the forms and solemnities of British law, is valid

20
 filed an action to annul her marriage to Gene in England on the here (Article 17, 1st par., NCC). However, since Gene and MARRIAGES
ground of latter’s sterility, a ground for annulment of marriage in Jane are still Filipinos although living in England, the
England. The English court decreed the marriage annulled. dissolution of their marriage is still governed by Philippine law
Returning to the Philippines, Gene asked you whether or not he (Article 15, NCC). Since, sterility is not one of the grounds for
would be free to marry his former girlfriend. What would your the annulment of a marriage under Article 45 of the Family
legal advice be? Code, the annulment of Gene’s marriage to Jane on that
ground is not valid in the Philippines (Article 17, NCC)

ALTERNATIVE ANSWER: Yes, Gene is free to

marry his girlfriend because his marriage was validly annulled
in England. The issue of whether or not a marriage is
voidable, including the grounds therefore, is governed by the
law of the place where the marriage was solemnized (lex loci
celebrationis). Hence, even if sterility is not a ground to annul
the marriage under the Philippine law, the marriage is
nevertheless voidable because sterility makes the marriage
voidable under English law. Therefore, annulment of the
marriage in England is valid in the Philippines.

2003 Miss Universe, from Finland, came to the Philippines on a SUGGESTED ANSWER: Yes, the BID can order the NATURALIZATI
tourist visa. While in this country, she fell in love with and married deportation of Miss Universe. The marriage of an alien woman ON
a Filipino doctor. Her tourist visa having been expired and after the to a Filipino does not automatically make her a Filipino
maximum extension allowed therefore, the Bureau of Immigration Citizen. She must first prove in an appropriate proceeding that
and Deportation (BID) is presently demanding that she immediately she does not have any disqualification for Philippine

21
 leave the country but she refuses to do so, claiming that she is citizenship. (Yung Uan Chu v. Republic of the Philippines,
already a Filipino Citizen by her marriage to a Filipino citizen. Can 158 SCRA 593 [1988]). Since Miss Universe is still a
the BID still order the deportation of Miss Universe? Explain. foreigner, despite her marriage to a Filipino doctor, she can be
deported upon expiry of her allowable stay in the Philippines.

ANOTHER SUGGESTED ANSWER: No, the Bureau

of Immigration cannot order her deportation. An alien woman
marrying a Filipino, native-born or naturalized, becomes ipso
facto a Filipino if she is not disqualified to be a citizen of the
Philippines (Mo Ya Lim v Commission of Immigration, 41
SCRA 292 [1971]), (Sec 4, Naturalization Law). All that she
has to do is prove in the deportation proceeding the fact of her
marriage and that she is not disqualified to become a Filipino
Citizen. ANOTHER SUGGESTED ANSWER: It depends. If
she is disqualified to be a Filipino citizen, she may be
deported. If she is not disqualified to be a Filipino citizen, she
may not be deported. An alien woman who marries a Filipino
citizen becomes one. The marriage of Miss Universe to the
Filipino doctor did not automatically make her a Filipino
citizen. She still has to prove that she is not disqualified to
become a citizen.

2003 Lina, a former Filipina who became an American citizen SUGGESTED ANSWER: Yes, Lina and her QUALIFICATION
shortly after her marriage to an American husband, would like to American husband can jointly adopt a minor brother of Lina OF ADOPTER

22
 adopt in the Philippines, jointly with her husband, one of her minor because she and her husband are both qualified to adopt. Lina,
brothers. Assuming that all the required consents have been as a former Filipino citizen, can adopt her minor brother under
obtained, could the contemplated joint adoption in the Philippine Sec. 7(b)(i) of RA 8552 (Domestic Adoption Act of 1998), or
prosper? Explain. under Art. 184 (3)(1) of the Family Code. The alien husband
can now adopt under Sec. 7 (b) of RA8552. The Supreme
Court has held in several cases that when husband and wife are
required to adopt jointly, each one of them must be qualified to
adopt in his or her own right (Republic v. Toledano, 233
SCRA 9 (1994). However, the American husband must
comply with the requirements of the law including the
residency requirement of three (3) years. Otherwise, the
adoption will not be allowed.

2003 Which of the following remedies, i.e., (a) declaration of SUGGESTED ANSWER: MARRIAGE;
nullity of marriage, (b) annulment of marriage, (c) legal separation, GROUNDS;
(i) Since AIDS is a serious and incurable sexually-
and/or (d) separation of property, can an aggrieved spouse avail DECLARATION
transmissible disease, the wife may file an action for
himself/herself of- OF NULLITY;
annulment of the marriage on this ground whether such fact
ANNULMENT;
was concealed or not from the wife, provided that the disease
LEGAL
was present at the time of the marriage. The marriage is
(i) If the wife discovers after the marriage that her husband SEPARATION;
voidable even though the husband was not aware that he had
has ―AIDS‖. SEPARATION OF
the disease at the time of marriage.
PROPERTY
(ii) If the wife goes (to) abroad to work as a nurse and
refuses to come home after the expiration of her three-year contract

23
 there. (iii) If the husband discovers after the marriage that his wife (ii) If the wife refuses to come home for three (3)
has been a prostitute before they got married. months from the expiration of her contract, she is presumed to
have abandoned the husband and he may file an action for
(iv) If the husband has a serious affair with his secretary
judicial separation of property. If the refusal continues for
and refuses to stop notwithstanding advice from relatives and
more than one year from the expiration of her contract, the
friends.
husband may file the action for legal separation under Art. 55

(v) If the husband beats up his wife every time he comes (10) of the Family Code on the ground of abandonment of
home drunk. petitioner by respondent without justifiable cause for more
than one year. The wife is deemed to have abandoned the
husband when she leaves the conjugal dwelling without any
intention of returning (Article 101, FC). The intention not to
return cannot be presumed during the 30year period of her
contract.

2003 If during class hours, while the teacher was chatting with SUGGESTED ANSWER: The school, its PARENTAL
other teachers in the school corridor, a 7 year old male pupil stabs administrators, and teachers have special parental authority AUTHORITY;
the eye of another boy with a ball pen during a fight, causing and responsibility over the minor child while under their SPECIAL
permanent blindness to the victim, who could be liable for damages supervision, instruction or custody (Article 218, FC). They are PARENTAL
for the boy’s injury: the teacher, the school authorities, or the guilty principally and solidarily liable for the damages caused by the AUTHORITY;
boy’s parents? Explain. acts or omissions of the unemancipated minor unless they LIABILITY OF
exercised the proper diligence required under the TEACHERS
circumstances (Article 219, FC). In the problem, the
TEACHER and the SCHOOL AUTHORITIES are liable for
the blindness of the victim, because the student who cause it

24
 was under their special parental authority and they were
negligent. They were negligent because they were chatting in
the corridor during the class period when the stabbing incident
occurred. The incident could have been prevented had the
teacher been inside the classroom at that time. The guilty boy’s
PARENTS are subsidiarily liable under Article 219 of the
Family Code.

2003 Luis was survived by two legitimate children, two SUGGESTED ANSWER: The intestate heirs are the HEIRS;
illegitimate children, his parents, and two brothers. He left an estate two (2) legitimate children and the two (2) illegitimate INTESTATE
of P1 million. Luis died intestate. Who are his intestate heirs, and children. In intestacy the estate of the decedent is divided HEIRS; SHARES
how much is the share of each in his estate? among the legitimate and illegitimate children such that the
share of each illegitimate child is one -half the share of each
legitimate child. Their share are : For each legitimate child –
P333,333.33 For each illegitimate child – P166,666.66
(Article 983, New Civil Code; Article 176, Family Code)

2003 Luis was survived by two legitimate children, two The compulsory heirs are the two legitimate children LEGITIME;
illegitimate children, his parents, and two brothers. He left an estate and the two illegitimate children. The parents are excluded by COMPULSORY
of P1 million. Who are the compulsory heirs of Luis, how much is the legitimate children, while the brothers are not compulsory HEIRS
the legitime of each, and how much is the free portion of his estate, heirs at all. Their respective legitimate are: a) The legitime of
if any? the two (2) legitimate children is one

half (1/2) of the estate (P500,000.00) to be divided

25
 between them equally, or P250,000.00 each. b) The legitimate
of each illegitimate child is one-half (1/2) the legitime of each
legitimate child or P125,000.00. c) Since the total legitime of
the compulsory heirs is P750,000.00, the balance of
P250,000.00 is the free portion.

2003 Mr. Reyes executed a will completely valid as to form. A SUGGESTED ANSWER: Yes, the first will may be WILLS;
week later, however, he executed another will which expressly admitted to probate and given effect. When the testator tore REVOCATION
revoked his first will, which he tore his first will to pieces. Upon first will, he was under the mistaken belief that the second will OF
the death of Mr. Reyes, his second will was presented for probate was perfectly valid and he would not have destroyed the first WILLS;DEPENDE
by his heirs, but it was denied probate due to formal defects. will had he known that the second will is not valid. The NT RELATIVE
Assuming that a copy of the first will excluded by a legitimate son revocation by destruction therefore is dependent on the validity REVOCATION
of the decedent [Art. 887, New is available, may it now be of the second will. Since it turned out that the second will was
admitted to probate and given effect? Why? invalid, the tearing of the first will did not produce the effect of
revocation. This is known as the doctrine of dependent relative
revocation (Molo v. Molo, 90 Phil 37.) ALTERNATIVE
ANSWERS: No, the first will cannot be admitted to probate.
While it is true that the first will was successfully revoked by
the second will because the second will was later denied
probate, the first will was, nevertheless, revoked when the
testator destroyed it after executing the second invalid will.
(Diaz v. De Leon, 43 Phil 413 [1922]).

26
2003 a) May a person sell something that does not belong to SUGGESTED ANSWER: DONATION VS
him? Explain. b) May a person donate something that does not SALE
(a) Yes, a person may sell something which does not
belong to him? Explain.
belong to him. For the sale to be valid, the law does not require
the seller to be the owner of the property at the time of the sale.
(Article 1434, NCC). If the seller cannot transfer ownership
over the thing sold at the time of delivery because he was not
the owner thereof, he shall be liable for breach of contact.

(b) As a general rule, a person cannot donate something

which he cannot dispose of at the time of the donation (Article
751, New Civil Code).

2003 In 1950, Dr. Alba donated a parcel of land to Central SUGGESTED ANSWER: The donation may be DONATIONS;
University on condition that the latter must establish a medical revoked. The non-established of the medical college on the WITH
college on the land to be named after him. In the year 2000, the donated property was a resolutory condition imposed on the RESOLUTORY
heirs of Dr. Alba filed an action to annul the donation and for the donation by the donor. Although the Deed of Donation did not CONDITION
reconveyance of the property donated to them for the failure, after fix the time for the established of the medical college, the
50 years, of the University to established on the property a medical failure of the donee to establish the medical college after fifty
school named after their father. The University opposed the action (50) years from the making of the donation should be
on the ground of prescription and also because it had not used the considered as occurrence of the resolutory condition, and the
property for some purpose other than that stated in the donation. donation may now be revoked. While the general rule is that in
Should the opposition of the University to the action of Dr. Alba’s case the period is not fixed in the agreement of the parties, the

27
 heirs be sustained? Explain. period must be fixed first by the court before the obligation
may be demanded, the period of fifty (50) years was more than
enough time for the donee to comply with the condition.
Hence, in this case, there is no more need for the court to fix
the period because such procedure with the condition. (Central
Philippine University v. CA. 246 SCRA 511).

2003 Andres is a riparian owner of a parcel of registered land. His SUGGESTED ANSWER: a. Mario has a better right ACCRETION;
land, however, has gradually diminished in area due to the current over the 200 square meters increase in area by reason of AVULSION
of the river, while the registered land of Mario on the opposite bank accretion, applying Article 457 of the New Civil Code, which
has gradually increased in area by 200square meters. provides that ―to the owners of lands adjoining the banks of
rivers belong the accretion which they gradually received from
the effects of the current of the waters‖. Andres cannot claim

(a) Who has the better right over the 200-square meter area that the increase in Mario’s land is his own, because such is an
that has been added to Mario’s registered land, Mario or Andres? accretion and not result of the sudden detachment of a known
portion of his land and its attachment to Mario’s land, a
(b) May a third person acquire said 200-square meter land process called ―avulsion‖. He can no longer claim ownership
by prescription? of the portion of his registered land which was gradually and
naturally eroded due to the current of the river, because he had
lost it by operation of law. That portion of the land has become
part of the public domain.

SUGGESTED ANSWER: b. Yes, a third party may

acquire by prescription the 200 square meters, increase in

28
 area, because it is not included in the Torrens Title of the
riparian owner. Hence, this does not involve the
imprescriptibility conferred by Section 47, P.D. No. 1529. The
fact that the riparian land is registered does not automatically
make the accretion thereto a registered land. (Grande v. CA,
115 521 (1962); Jagualing v. CA, 194 SCRA 607 (1991).

2003 X constructed a house on a lot which he was leasing from SUGGESTED ANSWER: No, Z’s demand is not CHATTEL
Y. Later, X executed a chattel mortgage over said house in favor of valid. A building is immovable or real property whether it is MORTGAGE;
Z as security for a loan obtained from the latter. Still later, X erected by the owner of the land, by a usufructuary, or by a IMMOVABLES
acquired ownership of the land where his house was constructed, lessee. It may be treated as a movable by the parties to chattel
after which he mortgaged both house and land in favor of a bank, mortgage but such is binding only between them and not on
which mortgage was annotated on the Torrens Certificate of Title. third parties (Evangelista v. Alto Surety Col, inc. 103 Phil. 401
When X failed to pay his loan to the bank, the latter, being the [1958]). In this case, since the bank is not a party to the chattel
highest bidder at the foreclosure sale, foreclosed the mortgage and mortgage, it is not bound by it, as far as the Bank is concerned,
acquired X’s house and lot. Learning of the proceedings conducted the chattel mortgage, does not exist. Moreover, the chattel
by the bank, Z is now demanding that the bank reconvey to him X’s mortgage does not exist. Moreover, the chattel mortgage is
house or pay X’s loan to him plus interests. Is Z’s demand against void because it was not registered. Assuming that it is valid, it
the bank valid and sustainable? Why? does not bind the Bank because it was not annotated on the
title of the land mortgaged to the bank. Z cannot demand that
the Bank pay him the loan Z extended to X, because the Bank
was not privy to such loan transaction.

ANOTHER SUGGESTED ANSWER: No, Z’s

29
demand against the bank is not valid. His demand that the bank
reconvey to him X’s house presupposes that he has a real right
over the house. All that Z has is a personal right against X for
damages for breach of the contract of loan.

The treatment of a house, even if built on rented land,

as movable property is void insofar as third persons, such as
the bank, are concerned. On the other hand, the Bank already
had a real right over the house and lot when the mortgage was
annotated at the back of the Torrens title. The bank later
became the owner in the foreclosure sale. Z cannot ask the
bank to pay for X’s loan plus interest. There is no privity of
contract between Z and the bank.

ALTERNATIVE ANSWER: The answer hinges on

whether or not the bank is an innocent mortgagee in good faith
or a mortgagee in bad faith. In the former case, Z’s demand is
not valid. In the latter case, Z’s demand against the bank is
valid and sustainable.

Under the Torrens system of land registration, every

person dealing with registered land may rely on the correctness
of the certificate of title and the law will not in any way oblige
to him to look behind or beyond the certificate in order to
determine the condition of the title. He is not bound by
anything not annotated or reflected in the certificate. If he
30
 proceeds to buy the land or accept it as a collateral relying on
the certificate, he is considered a buyer or a mortgagee in good
faith. On this ground, the Bank acquires a clean title to the land
and the house.

However, a bank is not an ordinary mortgagee. Unlike

private individuals, a bank is expected to exercise greater care
and prudence in its dealings. The ascertainment of the
condition of a property offered as collateral for a loan must be
a standard and indispensable part of its operation. The bank
should have conducted further inquiry regarding the house
standing on the land considering that it was already standing
there before X acquired the title to the land. The bank cannot
be considered as a mortgagee in good faith. On this ground,
Z’s demand against the Bank is valid and sustainable.

2003 In 1970, the spouses Juan and Juana de la Cruz, then SUGGESTED ANSWER: Yes, the application should ACQUISITION
Filipinos, bought the parcel of unregistered land in the Philippines be granted. As a rule, the Constitution prohibits aliens from OF LANDS;
on which they built a house which became their residence. In 1986, owning private lands in the Philippines. This rule, however, CITIZENSHIP
they migrated to Canada and became Canadian citizens. Thereafter, does not apply to the spouses Juan and Juana de la Cruz REQUIREMENT
in 1990, they applied, opposed by the Republic, for the registration because at the time they acquired ownership over the land,
of the aforesaid land in their names. Should the application of the albeit imperfect, they were still Filipino citizens. The
spouses de la Cruz be granted over the Republic’s opposition? application for registration is a mere confirmation of the
Why? imperfect title which the spouses have already acquired before

31
 they became Canadian citizens. (Republic v. CA, 235 SCRA
567 [1994]).

2003 Louie, before leaving the country to train as a chef in a five- (a) An action for reconveyance against Huey is not the REMEDIES;
star hotel in New York, U.S.A., entrusted to his first-degree cousin proper remedy, because Huey is an innocent purchaser for RECONVEYANC
Dewey an application for registration, under the Land Registration value. The proper recourse is for Louie to go after Dewey for E VS
Act, of a parcel of land located in Bacolod City. A year later, Louie damages by reason of the fraudulent registration and REOPENING OF
returned to the Philippines and discovered that Dewey registered subsequent sale of the land. If Dewey is insolvent, Louie may A DECREE;
the land and obtained an Original Certificate of Title over the file a claim against the Assurance Fund (Heirs of Pedro Lopez PRESCRIPTIVE
property in his Dewey’s name. Compounding the matter, Dewey v. De Castro 324 SCRA 591 [2000] citing Sps. Eduarte v. CA, PERIOD
sold the land to Huey, an innocent purchaser for value. Louie 323 Phil. 462, 467 [1996]).
promptly filed an action for reconveyance of the parcel of land
(b) Yes, the remedy will prosper because the action
against Huey.
prescribes in ten (10) years, not within one (1) year when a
(a) Is the action pursued by Louie the proper remedy? petition for the reopening of the registration decree may be
filed. The action for reconveyance is distinct from the petition
(b) Assuming that reconveyance is the proper remedy, will
to reopen the decree of registration (Grey Alba v. De la Cruz,
the action prosper if the case was filed beyond one year, but within
17 Phil. 49 [1910}). There is no need to reopen the registration
ten years, from the entry of the decree of registration?
proceedings, but the property should just be reconveyed to the
real owner.

The action for reconveyance is based on implied or

constructive trust, which prescribes in ten (10) years from the
date of issuance of the original certificate of title. This rule
assumes that the defendant is in possession of the land. Where

32
 it is the plaintiff who is in possession of the land, the action for
reconveyance would be in the nature of a suit for quieting for
the title which action is imprescriptible (David v. Malay, 318
SCRA 711 [1999]).

2003 Are the following obligations valid, why, and if they are (a) The obligation is valid. It is an obligation subject to CONDITIONAL
valid, when is the obligation demandable in each case? a) If the an indefinite period because the debtor binds himself to pay OBLIGATIONS
debtor promises to pay as soon as he has the means to pay; b) If the when his means permit him to do so (Article 1180, NCC).
debtor promises to pay when he likes; c) If the debtor promises to When the creditor knows that the debtor already has the means
pay when he becomes a to pay, he must file an action in court to fix the period, and
when the definite period as set by the court arrives, the
lawyer; d) If the debtor promises to pay if his son, who is
obligation to pay becomes demandable 9Article 1197, NCC).
sick with cancer, does not die within one year.
SUGGESTED ANSWER: (b) The obligation ―to pay
when he likes‖ is a suspensive condition the fulfillment of
which is subject to the sole will of the debtor and, therefore the
conditional obligation is void. (Article 1182, NCC).

SUGGESTED ANSWER: (c) The obligation is valid.

It is subject to a suspensive condition, i.e. the future and
uncertain event of his becoming a lawyer. The performance of
this obligation does not depend solely on the will of the debtor
but also on other factors outside the debtor’s control.

SUGGESTED ANSWER: (d) The obligation is valid.

33
 The death of the son of cancer within one year is made a
negative suspensive condition to his making the payment. The
obligation is demandable if the son does not die within one
year (Article 1185, NCC).

2003 A,B,C,D, and E made themselves solidarity indebted to X SUGGESTED ANSWERS: LIABILITY;
for the amount of P50,000.00. When X demanded payment from A, SOLIDARY
(a) A may avail the minority of B as a defense, but
the latter refused to pay on the following grounds. a) B is only 16 OBLIGATION;
only for B’s share of P 10,000.00. A solidary debtor may avail
years old. b) C has already been condoned by X c) D is insolvent. MUTUAL
himself of any defense which personally belongs to a solidary
d) E was given by X an extension of 6 months without GUARANTY
co-debtor, but only as to the share of that codebtor.
the consent of the other four co-debtors. State the effect of
each of the above defenses put up by A on his obligation to pay X,
if such defenses are found to be true (b) A may avail of the condonation by X of C’s share
of P 10, 000.00. A solidary debtor may, in actions filed by the
creditor, avail himself of all defenses which are derived from
the nature of the obligation and of those which are personal to
him or pertain to his own share. With respect to those which
personally belong to others, he may avail himself thereof only
as regards that part of the debt for which the latter are
responsible. (Article 1222, NCC).

(c) A may not interpose the defense of insolvency of D

34
 as a defense. Applying the principle of mutual guaranty among
solidary debtors, A guaranteed the payment of D’s share and of
all the other co-debtors. Hence, A cannot avail of the defense
of D’s insolvency.

(d) The extension of six (6) months given by X to E

may be availed of by A as a partial defense but only for the
share of E, there is no novation of the obligation but only an
act of liberality granted to E alone.

2003 X sold a parcel of land to Y on 01 January 2002, payment SUGGESTED ANSWER: No, X is not correct. In the IMMOVABLE
and delivery to be made on 01 February 2002. It was stipulated that sale of immovable property, even though it may have been PROPERTY;
if payment were not made by Y on 01 February 2002, the sale stipulated, as in this case, that upon failure to pay the price at RESCISSION OF
between the parties would automatically be rescinded. Y failed to the time agreed upon the rescission of the contract shall of CONTRACT
pay on 01 February 2002, but offered to pay three days later, which right take place, the vendee may pay, even after the expiration
payment X refused to accept, claiming that their contract of sale of the period, as long as no demand for rescission of the
had already been rescinded. Is X’s contention correct? Why? contract has been made upon him either judicially or by a
notarial act (Article 1592, New Civil code). Since no demand
for rescission was made on Y, either judicially or by a notarial
act, X cannot refuse to accept the payment offered by Y three
(3) days after the expiration of the period.

ANOTHER SUGGESTED ANSWER: This is a

35
 contract to sell and not a contract of absolute sale, since as
there has been no delivery of the land. Article 1592 of the New
Civil code is not applicable. Instead, Article 1595 of the New
Civil Code applies. The seller has two alternative remedies: (1)
specific performance, or (2) rescission or resolution under
Article 1191 of the New Civil code. In both remedies, damages
are due because of default.

ALTERNATIVE ANSWER: Yes, the contract was

automatically rescinded upon Y’s failure to pay on 01
February 2002. By the express terms of the contract, there is
no need for X to make a demand in order for rescission to take
place. (Article 1191, New Civil Code, Suria v. IAC 151 SCRA
661 [1987]; U.P. v. de los Angeles 35 SCRA 102 [1970]).

2003 Jo-Ann asked her close friend, Aissa, to buy some groceries SUGGESTED ANSWER: Yes, there was a nominate AGENCY
for her in the supermarket. Was there a nominate contract entered contract. On the assumption that Aissa accepted the request of
into between Jo-Ann and Aissa? In the affirmative, what was it? her close friend Jo-Ann to but some groceries for her in the
Explain. supermarket, what they entered into was a nominate contract
of Agency. Article 1868 of the New Civil Code provides that
by the contract of agency a person binds himself to render
some service or to do something in representation or on behalf
of another, with the consent or authority of the latter.

ALTERNATIVE ANSWER: Yes, they entered into a

36
 nominate contract of lease to service in the absence of a
relation of principal and agent between them (Article 1644,
New Civil Code).

2003 If a pregnant woman passenger of a bus were to suffer an SUGGESTED ANSWER: No, the spouses cannot DAMAGES
abortion following a vehicular accident due to the gross negligence recover actual damages in the form of indemnity for the loss of ARISING FROM
of the bus driver, may she and her husband claim damages from life of the unborn child. This is because the unborn child is not DEATH OF
the bus company for the death of their unborn child? Explain. yet considered a person and the law allows indemnity only for UNBORN CHILD
loss of life of person. The mother, however may recover
damages for the bodily injury she suffered from the loss of the
fetus which is considered part of her internal organ. The
parents may also recover damages for injuries that are inflicted
directly upon them, e.g., moral damages for mental anguish
that attended the loss of the unborn child. Since there is gross
negligence, exemplary damages can also be recovered. (Gelus
v. CA, 2 SCRA 801 [1961])

2003 As a result of a collision between the taxicab owned by A SUGGESTED ANSWER: It depends. If the civil DEFENSE; DUE
and another taxicab owned by B, X, a passenger of the first taxicab, action is based on a quasi-delict the taxicab owners may raise DILIGENCE IN
was seriously injured. X later filed a criminal action against both the defense of diligence of a good father of a family in the SELECTION
drivers. selection and supervision of the driver; if the action against
them is based on culpa contractual or civil liability arising
May both taxicab owners raise the defense of due diligence
from a crime, they cannot raise the defense.
in the selection and supervision of their drivers to be absolved from

37
 liability for damages to X? Reason.

2003 As a result of a collision between the taxicab owned by A SUGGESTED ANSWER: It depends. If the separate FILING OF
and another taxicab owned by B, X, a passenger of the first taxicab, civil action is to recover damages arising from the criminal act, SEPARATE
was seriously injured. X later filed a criminal action against both reservation is necessary. If the civil action against the taxicab CIVIL ACTION;
drivers. owners is based on culpa contractual, or on quasi-delict, there NEED FOR
is no need for reservation. RESERVATION
Is it necessary for X to reserve his right to institute a civil
action for damages against both taxicab owners before he can file a ALTERNATIVE ANSWER: No, such reservation is
civil action for damages against them? Why not necessary. Under Section 1 of Rule 111 of the 2000 Rules
on Criminal Procedure, what is ―deemed instituted‖ with the
criminal action is only the action to recover civil liability
arising from the crime or ex delicto. All the other civil actions
under Articles 32, 33, 34 and 2176 of the New Civil Code are
no longer ―deemed instituted‖, and may be filed separately
and prosecuted independently even without any reservation in
the criminal action (Section 3, Rule 111, Ibid). The failure to
make a reservation in the criminal action is not a waiver of the
right to file a separate and independent civil action based on
these articles of the New Civil Code (Casupanan v. Laroya GR
No. 145391, August 26, 2002).

2004 B. DON, an American businessman, secured parental SUGGESTED ANSWER: The waiver is not valid. WAIVER OF
consent for the employment of five minors to play certain roles in Although the contracting parties may establish such RIGHTS

38
 two movies he was producing at home in Makati. They worked at stipulations, clauses, terms and conditions as they may deem
odd hours of the day and night, but always accompanied by parents convenient, they may not do so if such are contrary to law,
or other adults. The producer paid the children talent fees at rates morals, good customs, public order, or public policy (Article
better than adult wages. 1306, Civil Code). The parents' waiver to file a complaint
concerning the working conditions detrimental to the moral
But a social worker, DEB, reported to OSWD that these
well-being of their children acting in the movies is in violation
children often missed going to school. They sometimes drank wine,
of the Family Code and Labor Laws. Thus, the waiver is
aside from being exposed to drugs. In some scenes, they were
invalid and not binding. The Child Labor Law is a mandatory
filmed naked or in revealing costumes. In his defense, DON
and prohibitory law and the rights of the child cannot be
contended all these were part of artistic freedom and cultural
waived as it is contrary to law and public policy.
creativity. None of the parents complained, said DON. He also
said they signed a contract containing a waiver of their right to file
any complaint in any office or tribunal concerning the working
conditions of their children acting in the movies.

Is the waiver valid and binding? Why or why not? Explain.

2004 Distinguish briefly but clearly between: Domiciliary theory SUGGESTED ANSWER: DOMICILIARY THEORY DOMICILIARY
and nationality theory of personal law. posits that the personal status and rights of a person are THEORY VS
governed by the law of his domicile or the place of his habitual NATIONALITY
residence. The NATIONALITY THEORY, on the other hand, THEORY
postulates that it is the law of the person's nationality that
governs such status and rights

39
2004 PH and LV are HK Chinese. Their parents are now Filipino SUGGESTED ANSWER: My advise is as follows: NATIONALITY
citizens who live in Manila. While still students in MNS State, The civil status of' PH and LV will not be adversely affected THEORY
they got married although they are first cousins. It appears that both by Philippine law because they are nationals of Hong Kong
in HK and in MNS State first cousins could marry legally. and not Filipino citizens.Being foreigners, their status,
conditions and legal capacity in the Philippines are governed
They plan to reside and set up business in the Philippines.
by the law of Hong Kong, the country of which they are
But they have been informed, however, that the marriage of first
citizens. Since their marriage is valid under Hong Kong law, it
cousins here is considered void from the beginning by reason of
shall be valid and respected in the Philippines.
public policy. They are in a dilemma. They don’t want to break
Philippine law, much less their marriage vow. They seek your
advice on whether their civil status will be adversely affected by
Philippine domestic law? What is your advice?

2004 In a class suit for damages, plaintiffs claimed they suffered SUGGESTED ANSWER: The US Court will apply TORTS;
injuries from torture during martial law. The suit was filed upon US law, the law of the Jorum, in determining the applicable PRESCRIPTIVE
President EM’s arrival on exile in HI, a U.S. state. The court in HI prescriptive period. While US law is silent on this matter, the PERIOD
awarded plaintiffs the equivalent of P100 billion under the U.S. law US Court will not apply Philippine law in determining the
on alien tort claims. On appeal, EM’s Estate raised the issue of prescriptive period. It is generally affirmed as a principle in
prescription. It argued that since said U.S. law is silent on the private international law that procedural law is one of the
matter, the court should apply: (1) HI’s law setting a two-year exceptions to the application of foreign law by the forum.
limitation on tort claims; or (2) the Philippine law which appears to Since prescription is a matter of procedural law even in
require that claims for personal injury arising from martial law be Philippine jurisprudence, (Codaltn v. POEA/ JVLRC/Broum
brought within one year. and Root International, 238 SCRA 721 [1994]), the US Court
will apply either HI or Federal law in determining the

40
 Plaintiffs countered that provisions of the most analogous applicable prescriptive period and not Philippine law. The
federal statute, the Torture Victims Protection Act, should be Restatement of American law affirms this principle.
applied. It sets ten years as the period for prescription. Moreover,
they argued that equity could toll the statute of limitations. For it
appeared that EM had procured Constitutional amendments
granting himself and those acting under his direction immunity
from suit during his tenure.

In this case, has prescription set in or not? Considering the

differences in the cited laws, which prescriptive period should be
applied: one year under Philippine law, two years under HI’s law,
ten years under U.S. federal law, or none of the above? Explain.

2004 A Filipino couple, Mr. and Mrs. BM, Jr., decided to adopt SUGGESTED ANSWER: YV can inherit from BM, SUCCESSIONAL
YV, an orphan from St. Claire’s orphanage in New York City. Jr. The succession to the estate of BM, Jr. is governed by RIGHTS OF
They loved and treated her like a legitimate child for they have Philippine law because he was a Filipino when he died (Article ADOPTED CHILD
none of their very own. However, BM, Jr., died in an accident at 16, Civil Code). Under Article 1039 of the Civil Code, the
sea, followed to the grave a year later by his sick father, BM, Sr. capacity of the heir to succeed is governed by the national law
Each left a sizable estate consisting of bank deposits, lands and of the decedent and not by the national law of the heir. Hence,
buildings in Manila. May the adopted child, YV, inherit from BM, whether or not YV can inherit from BM, Jr. is determined by
Jr.? May she also inherit from BM, Sr.? Is there a difference? Philippine law. Under Philippine law, the adopted inherits
Why? Explain. from the adopter as a legitimate child of the adopter.

YV, however, cannot inherit, in his own right, from the

father of the adopter, BM, Sr., because he is not a legal heir of

41
 BM, Sr. The legal fiction of adoption exists only between the
adopted and the adopter. (Teotico v. Del Val 13 SCRA 406
[1965]). Neither may he inherit from BM, Sr. by representing
BM, Jr. because in representation, the representative must be a
legal heir not only of the person he is representing but also of
the decedent from whom the represented was supposed to
inherit (Article 973, Civil Code).

2004 A. BONI and ANNE met while working overseas. They SUGGESTED ANSWER: If Boni is still a Filipino MARRIAGE;
became sweethearts and got engaged to be married on New Year’s citizen, his legal capacity is governed by Philippine Law (Art. VOID
Eve aboard a cruise ship in the Caribbean. They took the proper 15 Civil Code). Under Philippine Law, his marriage to Anne is MARRIAGES
license to marry in New York City, where there is a Filipino void because of a prior existing marriage which was not
consulate. But as planned the wedding ceremony was officiated by dissolved by the divorce decreed in Oslo Divorce obtained
the captain of the Norwegian-registered vessel in a private suite abroad by a Filipino is not recognized.
among selected friends.
If Boni was no longer a Filipino citizen, the divorce is
Back in Manila, Anne discovered that Boni had been valid. Hence, his marriage to Anne is valid if celebrated in
married in Bacolod City 5 years earlier but divorced in Oslo only accordance with the law of the place where it was celebrated.
last year. His first wife was also a Filipina but now based in Since the marriage was celebrated aboard a vessel of
Sweden. Boni himself is a resident of Norway where he and Anne Norwegian registry, Norwegian law applies. If the Ship
plan to live permanently. Captain has authority to solemnize the marriage aboard his
ship, the marriage is valid and shall be recognized in the
Anne retains your services to advise her on whether her
Philippines.
marriage to Boni is valid under Philippine law? Is there anything
As to the second question, if Boni is still a Filipino,

42
 else she should do under the circumstances? Anne can file an action for declaration of nullity of her
marriage to him.

2004 Distinguish briefly but clearly between: Substitute parental SUGGESTED ANSWER: In substitute parental PARENTAL
authority and special parental authority. authority, the parents lose their parental authority in favor of AUTHORITY;
the substitute who acquires it to the exclusion of the parents. SUBSTITUTE VS
SPECIAL
In special parental authority, the parents or anyone
exercising parental authority does not lose parental authority.
Those who are charged with special parental authority exercise
such authority only during the time that the child is in their
custody or supervision.

Substitute parental authority displaces parental

authority while special parental authority concurs with parental
authority.

2004 A. RN and DM, without any impediment to marry each SUGGESTED ANSWER: ZMN was legitimated by PATERNITY &
other, had been living together without benefit of church blessings. the subsequent marriage of RN and DM because at the time he FILIATION;
Their common-law union resulted in the birth of ZMN. Two years was conceived, RN and DM could have validly married each COMMON-LAW
later, they got married in a civil ceremony. Could ZMN be other. Under the Family Code children conceived and born UNION
legitimated? Reason. outside of wedlock of parents who, at the time of the former's
conception, were not disqualified by any impediment to marry
each other are legitimated by the subsequent marriage of the

43
 parents.

2004 Mr. XT and Mrs. YT have been married for 20 years. Under the Civil Code, the widow or widower is a legal AMOUNT OF
Suppose the wife, YT, died childless, survived only by her and compulsory heir of the deceased spouse. If the widow is SUCCESSIONAL
husband, XT. What would be the share of XT from her estate as the only surviving heir, there being no legitimate ascendants, RIGHTS
inheritance? Why? Explain. descendants, brothers, and sisters, nephews and nieces, she
gets the entire estate.

2004 In his lifetime, a Pakistani citizen, ADIL, married three SUGGESTED ANSWER: In so far as the properties of PROCEEDINGS;
times under Pakistani law. When he died an old widower, he left the decedent located in the Philippines are concerned, they are INTESTATE
behind six children, two sisters, three homes, and an estate worth at governed by Philippine law (Article 16, Civil Code). Under PROCEEDINGS;
least 30 million pesos in the Philippines. He was born in Lahore Philippine law, the proper venue for the settlement of the estate JURISDICTION
but last resided in Cebu City, where he had a mansion and where is the domicile of the decedent at the time of his death. Since
two of his youngest children now live and work. Two of his oldest the decedent last resided in Cebu City, that is the proper venue
children are farmers in Sulu, while the two middle-aged children for the intestate settlement of his estate.
are employees in Zamboanga City. Finding that the deceased left
However, the successional rights to the estate of ADIL
no will, the youngest son wanted to file intestate proceedings
are governed by Pakistani law, his national law, under Article
before the Regional Trial Court of Cebu City. Two other siblings
16 of the Civil Code.
objected, arguing that it should be in Jolo before a Shari’a court
since his lands are in Sulu. But Adil’s sisters in Pakistan want the
proceedings held in Lahore before a Pakistani court. Which court
has jurisdiction and is the proper venue for the intestate
proceedings? The law of which country shall govern succession to

44
 his estate?

2004 Distinguish briefly but clearly between Inexistent contracts INEXISTENT CONTRACTS are considered as not INEXISTENT
and annullable contracts having been entered into and, therefore, void ob initio. They do CONTRACTS VS
not create any obligation and cannot be ratified or validated, as ANNULLABLE
there is no agreement to ratify or validate. On the other hand, CONTRACTS
ANNULLABLE or VOIDABLE CONTRACTS are valid until
invalidated by the court but may be ratified. In inexistent
contracts, one or more requisites of a valid contract are absent.
In anullable contracts, all the elements of a contract are present
except that the consent of one of the contracting parties was
vitiated or one of them has no capacity to give consent.

2004 A. Mr. ZY lost P100,000 in a card game called Russian A. 1. The suit by PX to collect the balance of what he ALEATORY
poker, but he had no more cash to pay in full the winner at the time won from ZY will not prosper. Under Article 2014 of the Civil CONTRACTS;
the session ended. He promised to pay PX, the winner, two weeks Code, no action can be maintained by the winner for the GAMBLING
thereafter. But he failed to do so despite the lapse of two months, collection of what he has won in a game of chance. Although
so PX filed in court a suit to collect the amount of P50,000 that he poker may depend in part on ability, it is fundamentally a
won but remained unpaid. Will the collection suit against ZY game of chance.
prosper? Could Mrs. ZY file in turn a suit against PX to recover the
2) If the money paid by ZY to PX was conjugal or
P100,000 that her husband lost? Reason.
community property, the wife of ZY could sue to recover it
because Article 117(7) of the Family Code provides that losses
in gambling or betting are borne exclusively by the loser-

45
 spouse. Hence, conjugal or community funds may not be used
to pay for such losses. If the money were exclusive property of
ZY, his wife may also sue to recover it under Article 2016 of
the Civil Code if she and the family needed the money for
support.

ALTERNATIVE ANSWER (2): A. (2). Mrs. ZY

cannot file a suit to recover what her husband lost. Art 2014 of
the Civil Code provides that any loser in a game of chance
may recover his loss from the winner, with legal interest from
the time he paid the amount lost. This means that only he can
file the suit. Mrs. ZY cannot recover as a spouse who has
interest in the absolute community property or conjugal
partnership of gains, because under Art. 117(7} of the Family
Code, losses are borne exclusively by the loser-spouse.
Therefore, these cannot be charged against absolute
community property or conjugal partnership of gains. This
being so, Mrs. ZY has no interest in law to prosecute and
recover as she has no legal standing in court to do so.

2004 TX filed a suit for ejectment against BD for non-payment of BD's contention is not correct. TX can still maintain the EXTINGUISHME
condominium rentals amounting to P150,000. During the pendency suit for ejectment. The acceptance by the lessor of the payment NT; CAUSE OF
of the case, BD offered and TX accepted the full amount due as by the lessee of the rentals in arrears even during the pendency ACTION
rentals from BD, who then filed a motion to dismiss the ejectment of the ejectment case does not constitute a waiver or

46
 suit on the ground that the action is already extinguished. Is BD’s abandonment of the ejectment case. (Spouses Clutario v. CA,
contention correct? Why or why not? Reason. 216 SCRA 341 [1992]).

2004 JV, owner of a parcel of land, sold it to PP. But the deed of It depends on whether or not RR is an innocent DOUBLE SALES
sale was not registered. One year later, JV sold the parcel again to purchaser for value. Under the Torrens System, a deed or
RR, who succeeded to register the deed and to obtain a transfer instrument operated only as a contract between the parties and
certificate of title over the property in his own name. Who has a as evidence of authority to the Register of Deeds to make the
better right over the parcel of land, RR or PP? Why? Explain the registration. It is the registration of the deed or the instrument
legal basis for your answer. that is the operative act that conveys or affects the land. (Sec.
51, P.D. No. 1529).

In cases of double sale of titled land, it is a well-settled

rule that the buyer who first registers the sale in good faith
acquires a better right to the land. (Art. 1544, Civil Code).

Persons dealing with property covered by Torrens title

are not required to go beyond what appears on its face.
(Orquiola v. CA 386, SCRA 301, [2002]; Domingo v. Races
401 SCRA 197, [2003]). Thus, absent any showing that RR
knew about, or ought to have known the prior sale of the land
to PP or that he acted in bad faith, and being first to register the
sale, RR acquired a good and a clean title to the property as
against PP.

47
2004 As an agent, AL was given a guarantee commission, in No, AL's objection is not valid and DRBI can collect AGENCY;
addition to his regular commission, after he sold 20 units of from AL. Since AL accepted a guarantee commission, in GUARANTEE
refrigerators to a customer, HT Hotel. The customer, however, addition to his regular commission, he agreed to bear the risk COMMISSION
failed to pay for the units sold. AL’s principal, DRBI, demanded of collection and to pay the principal the proceeds of the sale
from AL payment for the customer’s accountability. AL objected, on the same terms agreed upon with the purchaser (Article
on the ground that his job was only to sell and not to collect 1907, Civil Code)
payment for units bought by the customer. Is AL’s objection valid?
Can DRBI collect from him or not? Reason.

2004 CX executed a special power of attorney authorizing DY to CX is liable for the bank loan because he authorized AGENCY; REAL
secure a loan from any bank and to mortgage his property covered the mortgage on his property to secure the loan contracted by ESTATE
by the owner’s certificate of title. In securing a loan from MBank, DY. If DY later defaults and fails to pay the loan, CX is liable MORTGAGE
DY did not specify that he was acting for CX in the transaction to pay. However, his liability is limited to the extent of the
with said bank. Is CX liable for the bank loan? Why or why not? value of the said property.
Justify your answer.
ALTERNATIVE ANSWER: CX is not personally
liable to the bank loan because it was contracted by DY in his
personal capacity. Only the property of CX is liable. Hence,
while CX has authorized the mortgage on his property to
secure the loan of DY, the bank cannot sue CX to collect the
loan in case DY defaults thereon. The bank can only foreclose
the property of CX. And if the proceeds of the foreclosure are
not sufficient to pay the loan in full, the bank cannot run after

48
CX for the deficiency.

ALTERNATIVE ANSWER: While as a general rule

the principal is not liable for the contract entered into by his
agent in case the agent acted in his own name without
disclosing his principal, such rule does not apply if the contract
involves a thing belonging to the principal. In such case, the
principal is liable under Article 1883 of the Civil Code. The
contract is deemed made on his behalf (Sy-juco v. Sy-juco 40
Phil. 634 [1920]).

ALTERNATIVE ANSWER: CX would not be liable

for the bank loan. CX's property would also not be liable on
the mortgage. Since DY did not specify that he was acting for
CX in the transaction with the bank, DY in effect acted in his
own name. In the case of Rural Bank of Bombon v. CA, 212
SCRA, (1992), the Supreme Court, under the same facts, ruled
that "in order to bind the principal by a mortgage on real
property executed by an agent, it must upon its face purport to
be made, signed and sealed in the name of the principal,
otherwise, it will bind the agent only. It is not enough merely
that the agent was in fact authorized to make the mortgage, if
he, has not acted in the name of the principal. Neither is it
ordinarily sufficient that in the mortgage the agent describes
himself as acting by virtue of a power of attorney, if in fact the

49
 agent has acted in his own name and has set his own hand and
seal to the mortgage. There is no principle of law by which a
person can become liable on a real estate mortgage which she
never executed in person or by attorney in fact".

2004 Distinguish briefly but clearly between Mutuum and In MUTUUM, the object borrowed must be a MUTUUM VS
commodatum. consumable thing the ownership of which is transferred to the COMMODATUM
borrower who incurs the obligation to return the same
consumable to the lender in an equal amount, and of the same
kind and quality. In COMMODATUM, the object borrowed is
usually a non-consumable thing the ownership of which is not
transferred to the borrower who incurs the obligation to return
the very thing to the lender.

2004 The parties in a contract of loan of money agreed that the OB's action is not just and valid. The debtor cannot be MUTUUM;
yearly interest rate is 12% and it can be increased if there is a law required to pay the increase in interest there being no law INTERESTS
that would authorize the increase of interest rates. Suppose OB, the authorizing it, as stipulated in the contract. Increasing the rate
lender, would increase by 5% the rate of interest to be paid by TY, in the absence of such law violates the principle of mutuality
the borrower, without a law authorizing such increase, would OB’s of contracts.
action be just and valid? Why? Has TY a remedy against the
ALTERNATIVE ANSWER: Even if there was a law
imposition of the rate increase? Explain.
authorizing the increase in interest rate, the stipulation is still
void because there is no corresponding stipulation to decrease
the interest due when the law reduces the rate of interest.

50
2004 ABC loaned to MNO P40,000 for which the latter pledged The shares of stock cannot be deemed owned by ABC PLEDGE
400 shares of stock in XYZ Inc. It was agreed that if the pledgor upon default of MNO. They have to be foreclosed. Under
failed to pay the loan with 10% yearly interest within four years, Article 2088 of the Civil Code, the creditor cannot appropriate
the pledgee is authorized to foreclose on the shares of stock. As the things given by way of pledge. And even if the parties have
required, MNO delivered possession of the shares to ABC with the stipulated that ABC becomes the owner of the shares in case
understanding that the shares would be returned to MNO upon the MNO defaults on the loan, such stipulation is void for being a
payment of the loan. However, the loan was not paid on time. A pactum commissorium.
month after 4 years, may the shares of stock pledged be deemed
owned by ABC or not? Reason.

2004 DPO went to a store to buy a pack of cigarettes worth There was error in the amount of change given by QUASI-
P225.00 only. He gave the vendor, RRA, a P500-peso bill. The RRA. This is a case of solutio indebiti in that DPO received CONTRACTS;
vendor gave him the pack plus P375.00 change. Was there a something that is not due him. He has the obligation to return SOLUTIO
discount, an oversight, or an error in the amount given? What the P100.00; otherwise, he will unjustly enrich himself at the INDEBITI
would be DPO’s duty, if any, in case of an excess in the amount of expense of RRA. (Art. 2154, Civil Code)
change given by the vendor? How is this situational relationship
ALTERNATIVE ANSWER: DPO has the duty to
between DPO and RRA denominated? Explain.
return to RRA the excess P100 as trustee under Article 1456 of
the Civil Code which provides: If property is acquired through
mistake or fraud, the person obtaining it is, by force of law,
considered a trustee of an implied trust for the benefit of the
person from whom the property comes. There is, in this case,
an implied or constructive trust in favor of RRA.

51
2004 OJ was employed as professional driver of MM Transit bus Yes, there is a presumption of negligence on the part of VICAROUS
owned by Mr. BT. In the course of his work, OJ hit a pedestrian the employer. However, such presumption is rebuttable. The LIABILITY
who was seriously injured and later died in the hospital as a result liability of the employer shall cease when they prove that they
of the accident. The victim’s heirs sued the driver and the owner of observed the diligence of a good father of a family to prevent
the bus for damages. Is there a presumption in this case that Mr. damage (Article 2180, Civil Code).
BT, the owner, had been negligent? If so, is the presumption
When the employee causes damage due to his own
absolute or not? Explain.
negligence while performing his own duties, there arises the
juris tantum presumption that the employer is negligent,
rebuttable only by proof of observance of the diligence of a
good father of a family (Metro Manila Transit v. CA, 223
SCRA 521 [1993]; Delsan Transport Lines v, C&tA
Construction, 412 SCRA 524 2003).

Likewise, if the driver is charged and convicted in a

criminal case for criminal negligence, BT is subsidiarily liable
for the damages arising from the criminal act.

2004 DT and MT were prominent members of the frequent FX Airlines committed breach of contract when it LIABILITY;
travelers’ club of FX Airlines. In Hongkong, the couple were upgraded DT and MT, over their objections, to First Class AIRLINE
assigned seats in Business Class for which they had bought tickets. because they had contracted for Business Class passage. COMPANY; NON-
On checking in, however, they were told they were upgraded by However, although there is a breach of contract, DT and MT PERFORMANCE
computer to First Class for the flight to Manila because the are entitled to actual damages only for such pecuniary losses OF AN
Business Section was overbooked. suffered by them as a result of such breach. There seems to be OBLIGATION

52
 Both refused to transfer despite better seats, food, beverage no showing that they incurred such pecuniary loss. There is no
and other services in First Class. They said they had guests in showing that the pain in DT’s arm and wrist resulted directly
Business Class they should attend to. They felt humiliated, from the carrier’s acts complained of. Hence, they are not
embarrassed and vexed, however, when the stewardess allegedly entitled to actual damages. Moreover, DT could have avoided
threatened to offload them if they did not avail of the upgrade. the alleged injury by requesting the airline staff to do the
Thus they gave in, but during the transfer of luggage DT suffered luggage transfer as a matter of duty on their part. There is also
pain in his arm and wrist. After arrival in Manila, they demanded no basis to award moral damages for such breach of contract
an apology from FX’s management as well as indemnity payment. because the facts of the problem do not show bad faith or fraud
When none was forthcoming, they sued the airline for a million on the part of the airline. (Cathay Pacific v. Vazquez, 399
pesos in damages. Is the airline liable for actual and moral SCRA 207 [2003]). However, they may recover moral
damages? Why or why not? Explain briefly. damages if the cause of action is based on Article 21 of the
Civil Code for the humiliation and embarrassment they felt
when the stewardess threatened to offload them if they did not
avail of the upgrade. ALTERNATIVE ANSWER: If it can be
proved that DT’s pain in his arm and wrist occasioned by the
transfer of luggage was caused by fault or negligence on the
part of the airline’s stewardess, actual damages may be
recovered.

The airline may be liable for moral damages pursuant

to Art. 2219 (10) if the cause of action is based on Article 21
or an act contrary to morals in view of the humiliation suffered
by DT and MT when they were separated from their guests and
were threatened to be offloaded.

53
2004 Dr. ALX is a scientist honored for work related to the SUGGESTED ANSWER: (1) The reciprocity INTELLECTUAL
human genome project. Among his pioneering efforts concern principle in private international law may be applied in our CREATION
stem cell research for the cure of Alzheimer’s disease. Under jurisdiction. Section 3 of R.A. 8293, the Intellectual Property
corporate sponsorship, he helped develop a microbe that ate and Code, provides for reciprocity, as follows: "Any person who is
digested oil spills in the sea. a national, or who is domiciled, or has a real and effective
industrial establishment in a country which is a party to any
Now he leads a college team for cancer research in MSS
convention, treaty or agreement relating to intellectual
State. The team has experimented on a mouse whose body cells
property rights or the repression of unfair competition, to
replicate and bear cancerous tumor. Called ―oncomouse‖, it is a
which the Philippines is also a party, or extends reciprocal
life-form useful for medical research and it is a novel creation. Its
rights to nationals of the Philippines by law, shall be entitled to
body cells do not naturally occur in nature but are the product of
benefits to the extent necessary to give effect to any provision
man’s intellect, industry and ingenuity. However, there is a doubt
of such convention, treaty or reciprocal law, in addition to the
whether local property laws and ethics would allow rights of
rights to which any owner of an intellectual property right is
exclusive ownership on any life-form. Dr. ALX needs your advice:
otherwise entitled by this Act. (n)" To illustrate: the
(1) whether the reciprocity principle in private international law
Philippines may refrain from imposing a requirement of local
could be applied in our jurisdiction; and (2) whether there are legal
incorporation or establishment of a local domicile for the
and ethical reasons that could frustrate his claim of exclusive
protection of industrial property rights of foreign nationals
ownership over the life-form called ―oncomouse‖ in Manila?
(citizens of Canada, Switzerland, U.S.) if the countries of said
What will be your advice to him?
foreign nationals refrain from imposing said requirement on
Filipino citizens.

ALTERNATIVE ANSWER: Reciprocity principle

cannot be applied in our jurisdiction because the Philippines is
a party to the TRIPS agreement and the WTO. The principle

54
involved is the most-favored nation clause which is the
principle of non-discrimination. The protection afforded to
intellectual property protection in the Philippines also applies
to other members of the WTO. Thus, it is not really reciprocity
principle in private international law that applies, but the most-
favored nation clause under public international law.

(2) There is no legal reason why "oncomouse" cannot

be protected under the law. Among those excluded from patent
protection are "plant varieties or animal breeds, or essentially
biological process for the production of plants and animals"
(Section 22.4 Intellectual Property Code, R.A. No. 8293). The
"oncomouse" in the problem is not an essentially biological
process for the production of animals. It is a real invention
because its body cells do not naturally occur in nature but are
the product of man's ingenuity, intellect and industry.

The breeding of oncomouse has novelty, inventive step

and industrial application. These are the three requisites of
patentability. (Sec. 29, IPC)

There are no ethical reasons why Dr. ADX and his

college team cannot be given exclusive ownership over their
invention. The use of such genetically modified mouse, useful
for cancer research, outweighs considerations for animal

55
rights.

There are no legal and ethical reasons that would

frustrate Dr. ALX's claim of exclusive ownership over
"oncomouse". Animals are property capable of being
appropriated and owned'. In fact, one can own pet dogs or cats,
or any other animal. If wild animals are capable of being
owned, with more reason animals technologically enhanced or
corrupted by man's invention or industry are susceptible to
exclusive ownership by the inventor.

ALTERNATIVE ANSWER: The oncomouse is a

higher life form which does not fall within the definition of the
term "invention". Neither may it fall within the ambit of the
term "manufacture" which usually implies a non-living
mechanistic product. The oncomouse is better regarded as a
"discovery" which is the common patrimony of man.

ALTERNATIVE ANSWER: The "oncomouse" is a

non-patentable invention. Hence, cannot be owned exclusively
by its inventor. It is a method for the treatment of the human or
animal body by surgery or therapy and diagnostic methods
practiced on said bodies are not patentable under Sec. 22 of the
IPC.

56
2005 Hans Berber, a German national, and his Filipino wife, SUGGESTED ANSWER: Yes, it is possible for Hans INTER-
Rhoda, are permanent residents of Canada. They desire so much to and Rhoda to adopt Magno. Republic Act No. 8043 or the COUNTRY
adopt Magno, an 8-year old orphaned boy and a baptismal godson Inter-Country Adoption Act, allows aliens or Filipinos ADOPTION;
of Rhoda. Since the accidental death of Magno's parents in 2004, he permanently residing abroad to apply for inter-country FORMAILITIES
has been staying with his aunt who, however, could hardly afford to adoption of a Filipino child. The law however requires that
feed her own family. Unfortunately, Hans and Rhoda cannot come only legally free child, or one who has been voluntarily or
to the Philippines to adopt Magno although they possess all the involuntarily committed to the DSWD or any of its accredited
qualifications as adoptive parents. Is there a possibility for them to agencies, may be subject of intercountry adoption. The law
adopt Magno? How should they go about it? further requires that aside from possessing all the
qualifications, the adoptive parents must come from a country
where the Philippines has diplomatic relations and that the
government maintains a similarly accredited agency and that
adoption is allowed under the national law of the alien.
Moreover, it must be further shown that all possibilities for a
domestic adoption have been exhausted and the inter-country
adoption is best for the interest of the child.

Hans and Rhoda have to file an application to adopt

Magno, either with the Regional Trial Court having
jurisdiction over Magno or with the Inter-Country Adoption
Board in Canada. Hans and Rhoda will then undergo a trial
custody for six (6) months from the time of placement. It is
only after the lapse of the trial custody that the decree of
adoption can be issued.

57
 QUALIFICATION
2005 In 1984, Eva, a Filipina, went to work as a nurse in the SUGGESTED ANSWER: The government's position OF ADOPTER
USA. There, she met and fell in love with Paul, an American is untenable. Under paragraph 3, Article 184 of the Family
citizen, and they got married in 1985. Eva acquired American Code, an alien, as a general rule cannot adopt. However, an
citizenship in 1987. During their sojourn in the Philippines in 1990, alien who is a former Filipino citizen and who seeks to adopt a
they filed a joint petition for the adoption of Vicky, a 7-year old relative by consanguinity is qualified to adopt, (par. 3[a], Art.
daughter of Eva's sister. The government, through the Office of the 184, Family Code)
Solicitor General, opposed the petition on the ground that the
In the given problem, Eva, a naturalized American
petitioners, being both foreigners, are disqualified to adopt Vicky.
citizen would like to adopt Vicky, a 7-year old daughter of her
a) Is the government's opposition tenable? Explain. b) Would your
sister. Thus, under above-cited provision, Eva is qualified to
answer be the same if they sought to adopt Eva's illegitimate
adopt Vicky.
daughter? Explain. c) Supposing that they filed the petition to adopt
Vicky in the year 2000, will your answer be the same? Explain. SUGGESTED ANSWER: My answer will still be the
same. Paragraph 3(a) of Article 184 of the Family Code does
not make any distinction. The provision states that an alien
who is a former Filipino citizen is qualified to adopt a relative
by consanguinity.

SUGGESTED ANSWER: Yes, my answer will still be

the same. Under Sec. 7(b), Art. III of the New Domestic
Adoption Act, an alien who possesses all the qualifications of a
Filipino national who is qualified to adopt may already adopt
provided that his country has diplomatic relations with the
Philippines, that he has been living in the Philippines for at
least three (3) continuous years prior to the filing of the

58
 application for adoption and maintains such residence until the
adoption decree is entered, that he has been certified by his
diplomatic or consular office or any appropriate government
agency that he has the legal capacity to adopt in his country,
and that his government allows the adoptee to enter his country
as his adopted child.

2005 In 1985, Sonny and Lulu, both Filipino citizens, were SUGGESTED ANSWER: The divorce is not valid. MARRIAGE;
married in the Philippines. In 1987, they separated, and Sonny went Philippine law does not provide for absolute divorce. DIVORCE
to Canada, where he obtained a divorce in the same year. He then Philippine courts cannot grant it. A marriage between two (2) DECREES;
married another Filipina, Auring, in Canada on January 1,1988. Filipinos cannot be dissolved by a divorce obtained abroad. FILIATION OF
They had two sons, James and John. In 1990, after failing to hear (Garcia v. Redo, G.R. No. 138322, October 2, 2001). CHILDREN
from Sonny, Lulu married Tirso, by whom she had a daughter, Philippine laws apply to Sonny and Lulu. Under Article 15 of
Verna. In 1991, Sonny visited the Philippines where he succumbed the New Civil Code, laws relating to family rights and duties,
to heart attack. a) Discuss the effect of the divorce obtained by status, and capacity of persons are binding upon citizens of the
Sonny and Lulu in Canada. b) Explain the status of the marriage Philippines wherever they may be. Thus, the marriage of
between Sonny and Auring. c) Explain the status of the marriage Sonny and Lulu is still valid and subsisting. Since the decree
between Lulu and Tirso. d) Explain the respective filiation of of divorce obtained by Lulu and Sony in Canada is not
James, John and Verna. e) Who are the heirs of Sonny? Explain. recognized here in the Philippines, the marriage between
Sonny and Auring is void. (Art. 35, Family Code) Any
marriage subsequently contracted during the lifetime of the
first spouse shall be illegal and void, subject only to the
exception in the cases of absence or where the prior marriage
was dissolved or annulled. (Ninal v. Bayadog, G.R. No.

59
133778, March 14, 2000) The marriage of Sonny and Auring
does not fall within the exception. The marriage of Lulu and
Tirso is also void. Mere absence of the spouse does not give
rise to a right of the present spouse to remarry. Article 41 of
the Family Code provides for a valid bigamous marriage only
where a spouse has been absent for four consecutive years
before the second marriage and the present spouse had a well-
founded belief that the absent spouse is already dead.
(Republic v. Nolasco, G.R. No. 94053, March 17, 1993)
James, John and Verna are illegitimate children since their
parents are not validly married. Under Article 165 of the
Family Code, children conceived and born outside a valid
marriage are illegitimate, unless otherwise provided in this
Code. Sonny's heirs include James, John, and Lulu. Article
887 of the Civil Code provides that the compulsory heirs of the
deceased are among others, his widow and his illegitimate
children. The widow referred to in Article 887 is the legal wife
of the deceased. Lulu is still a compulsory heir of Sonny
because the divorce obtained by Sonny in Canada cannot be
recognized in the Philippines. The legitime of each illegitimate
child shall consist of one-half of the legitime of a legitimate
child. (Art. 176, Family Code)

60
2005 Steve was married to Linda, with whom he had a daughter, SUGGESTED ANSWER: No, Joey does not have a PATERNITY &
Tintin. Steve fathered a son with Dina, his secretary of 20 years, cause of action against Tintin for recognition and partition. FILIATION;
whom Dina named Joey, born on September 20, 1981. Joey's birth Under Article 175 of the Family Code, as a general rule, an RECOGNITION
certificate did not indicate the father's name. Steve died on August action for compulsory recognition of an illegitimate child can OF
13, 1993, while Linda died on December 3, 1993, leaving their be brought at any time during the lifetime of the child. ILLEGITIMATE
legitimate daughter, Tintin, as sole heir. On May 16, 1994, Dina However, if the action is based on "open and continuous CHILD
filed a case on behalf of Joey, praying that the latter be declared an possession of the status of an illegitimate child, the same can
acknowledged illegitimate son of Steve and that Joey be given his be filed during the lifetime of the putative father."
share in Steve's estate, which is now being solely held by Tintin.
In the present case, the action for compulsory
Tintin put up the defense that an action for recognition shall only be
recognition was filed by Joey's mother, Dina, on May 16,1994,
filed during the lifetime of the presumed parents and that the
after the death of Steve, the putative father. The action will
exceptions under Article 285 of the Civil Code do not apply to him
prosper if Joey can present his birth certificate that bears the
since the said article has been repealed by the Family Code. In any
signature of his putative father. However, the facts clearly state
case, according to Tintin, Joey's birth certificate does not show that
that the birth certificate of Joey did not indicate the father's
Steve is his father.
name. A birth certificate not signed by the alleged father
a) Does Joey have a cause of action against Tintin for cannot be taken as a record of birth to prove recognition of the
recognition and partition? Explain. b) Are the defenses set up by child, nor can said birth certificate be taken as a recognition in
Tintin tenable? Explain. c) Supposing that Joey died during the a public instrument. (Reyes v. Court of Appeals, G.R. No.
pendency of the action, should the action be dismissed? Explain. 39537, March 19, 1985) Consequently, the action filed by
Joey's mother has already prescribed.

SUGGESTED ANSWER: Yes, the defenses of Tintin

are tenable. In Tayag v. Court of Appeals (G.R. No. 95229,
June 9,1992), a complaint to compel recognition of an
61
 illegitimate child was brought before effectivity of the Family
Code by the mother of a minor child based on "open and
continuous possession of the status of an illegitimate child."
The Supreme Court held that the right of action of the minor
child has been vested by the filing of the complaint in court
under the regime of the Civil Code and prior to the effectivity
of the Family Code. The ruling in Tayag v. Court of Appeals
finds no application in the instant case. Although the child was
born before the effectivity of the Family Code, the complaint
was filed after its effectivity. Hence, Article 175 of the Family
Code should apply and not Article 285 of the Civil Code. If
Joey died during the pendency of the action, the action should
still be dismissed because the right of Joey or his heirs to file
the action has already prescribed. (Art. 175, Family Code)

2005 Gabby and Mila got married at Lourdes Church in Quezon SUGGESTED ANSWER: The marriage settlement PROPERTY
City on July 10, 1990. Prior thereto, they executed a marriage between Gabby and Mila adopting the regime of conjugal RELATIONS;
settlement whereby they agreed on the regime of conjugal partnership of gains still subsists. It is not dissolved by the MARRIAGE
partnership of gains. The marriage settlement was registered in the mere agreement of the spouses during the marriage. It is clear SETTLEMENT;
Register of Deeds of Manila, where Mila is a resident. In 1992, from Article 134 of the Family Code that in the absence of an CONJUGAL
they jointly acquired a residential house and lot, as well as a express declaration in the marriage settlement, the separation PARTNERSHIP
condominium unit in Makati. In 1995, they decided to change their of property between the spouses during the marriage shall not OF GAINS
property relations to the regime of complete separation of property. take place except by judicial order. SUGGESTED ANSWER:
Mila consented, as she was then engaged in a lucrative business. The regime of conjugal partnership of gains governs the

62
The spouses then signed a private document dissolving their properties acquired by the spouses. All the properties acquired
conjugal partnership and agreeing on a complete separation of by the spouses after the marriage belong to the conjugal
property. Thereafter, Gabby acquired a mansion in Baguio City, partnership. Under Article 116 of the Family Code, even if
and a 5-hectare agricultural land in Oriental Mindoro, which he Gabby registered the mansion and 5-hectare agricultural land
registered exclusively in his name. In the year 2000, Mila's exclusively in his name, still they are presumed to be conjugal
business venture failed, and her creditors sued her for properties, unless the contrary is proved. ALTERNATIVE
P10,000,000.00. After obtaining a favorable judgment, the creditors ANSWER: Since all the properties are conjugal, they can be
sought to execute on the spouses' house and lot and condominium held answerable for Mila's obligation if the obligation
unit, as well as Gabby's mansion and agricultural land. a) Discuss redounded to the benefit of the family. (Art. 121 [3], Family
the status of the first and the amended marriage settlements. b) Code) However, the burden of proof lies with the creditor
Discuss the effects of the said settlements on the properties claiming against the properties. (Ayala Investment v. Court of
acquired by the spouses. c) What properties may be held Appeals, G.R. No. 118305, February 12,1998, reiterated in
answerable for Mila's obligations? Explain. Homeowners Savings & Loan Bank v. Dailo, G.R. No.
153802, March 11, 2005)

ALTERNATIVE ANSWER: Except for the residential

house which is the family home, all other properties of Gabby
and Mila may be held answerable for Mila's obligation. Since
the said properties are conjugal in nature, they can be held
liable for debts and obligations contracted during the marriage
to the extent that the family was benefited or where the debts
were contracted by both spouses, or by one of them, with the
consent of the other.

A family home is a dwelling place of a person and his

63
 family. It confers upon a family the right to enjoy such
property, which must remain with the person constituting it as
a family home and his heirs. It cannot be seized by creditors
except in special cases. (Taneo, Jr. v. Court of Appeals, G.R.
No. 108532, March 9, 1999)

2005 Emil, the testator, has three legitimate children, Tom, Henry SUGGESTED ANSWER: P600,000.00 — legitime to LEGITIME;
and Warlito; a wife named Adette; parents named Pepe and Pilar; be divided equally between Tom, Henry and Warlito as the COMPULSORY
an illegitimate child, Ramon; brother, Mark; and a sister, Nanette. legitimate children. Each will be entitled to P200,000.00. (Art. HEIRS VS
Since his wife Adette is well-off, he wants to leave to his 888, Civil Code) P100,000.00 -- share of Ramon the SECONDARY
illegitimate child as much of his estate as he can legally do. His illegitimate child. Equivalent to 1/2 of the share of each COMPULSORY
estate has an aggregate net amount of Pl,200,000.00, and all the legitimate child. (Art. 176, Family Code) P200,000.00 — HEIRS
above-named relatives are still living. Emil now comes to you for Adette the wife. Her share is equivalent to the share of one
advice in making a will. How will you distribute his estate legitimate child. (Art. 892, par. 2, Civil Code)
according to his wishes without violating the law on testamentary
Pepe and Pilar, the parents are only secondary
succession?
compulsory heirs and they cannot inherit if the primary
compulsory heirs (legitimate children) are alive. (Art. 887, par.
2, Civil Code)

Brother Mark and sister Nanette are not compulsory

heirs since they are not included in the enumeration under
Article 887 of the Civil Code.

The remaining balance of P300,000.00 is the free

64
 portion which can be given to the illegitimate child Ramon as
an instituted heir. (Art. 914, Civil Code) If so given by the
decedent, Ramon would receive a total of P400,000.00.

EASEMENT;
2005 Don was the owner of an agricultural land with no access to ALTERNATIVE ANSWER: No, Don did not acquire EFFECTS;
a public road. He had been passing through the land of Ernie with an easement of right of way. An easement of right of way is DISCONTINUES
EASEMENTS;
the latter's acquiescence for over 20 years. Subsequently, Don discontinuous in nature — it is exercised only if a man passes PERMISSIVE USE
subdivided his property into 20 residential lots and sold them to over somebody's land. Under Article 622 of the Civil Code,
different persons. Ernie blocked the pathway and refused to let the discontinuous easements, whether apparent or not, may only
buyers pass through his land. be acquired by virtue of a title. The Supreme Court, in
Abellana, Sr. v. Court of Appeals (G.R. No. 97039, April 24,
a) Did Don acquire an easement of right of way? Explain. c)
1992), ruled that an easement of right of way being
What are the rights of the lot buyers, if any? Explain.
discontinuous in nature is not acquirable by prescription.

Further, possession of the easement by Don is only

permissive, tolerated or with the acquiescence of Ernie. It is
settled in the case of Cuaycong v. Benedicto (G.R. No. 9989,
March 13, 1918) that a permissive use of a road over the land
of another, no matter how long continued, will not create an
easement of way by prescription.

ALTERNATIVE ANSWER: Yes, Don acquired an

easement of right of way. An easement that is continuous and
apparent can be acquired by prescription and title. According
to Professor Tolentino, an easement of right of way may have

65
a continuous nature if

Possession there is a degree of regularity to indicate

continuity of possession and that if coupled with an apparent
sign, such easement of way may be acquired by prescription.

ALTERNATIVE ANSWER: Yes, Ernie could close

the pathway on his land. Don has not acquired an easement of
right of way either by agreement or by judicial grant. Neither
did the buyers. Thus, establishment of a road or unlawful use
of the land of Ernie would constitute an invasion of possessory
rights of the owner, which under Article 429 of the Civil Code
may be repelled or prevented. Ernie has the right to exclude
any person from the enjoyment and disposal of the land. This
is an attribute of ownership that Ernie enjoys.

ALTERNATIVE ANSWER: Yes, Ernie may close the

pathway, subject however, to the rights of the lot buyers. Since
there is no access to the public road, this results in the creation
of a legal easement. The lot buyers have the right to demand
that Ernie grant them a right of way. In turn, they have the
obligation to pay the value of the portion used as a right of
way, plus damages.

SUGGESTED ANSWER: Prior to the grant of an

easement, the buyers of the dominant estate have no other right

66
 than to compel grant of easement of right of way. Since the
properties of the buyers are surrounded by other immovables
and has no adequate outlet to a public highway and the
isolation is not due to their acts, buyers may demand an
easement of a right of way provided proper indemnity is paid
and the right of way demanded is the shortest and least
prejudicial to Ernie. (Villanueva v. Velasco, G.R. No. 130845,
November 27, 2000).

EJECTMENT
2005 In an ejectment case filed by Don against Cesar, can the SUGGESTED ANSWER: Cesar cannot ask for the SUIT VS
latter ask for the cancellation of Don's title considering that he cancellation of Don's title even if he is the rightful owner of CANCELLATION
OF TITLE
(Cesar) is the rightful owner of the lot? Explain. the lot. In an action for ejectment, the only issue involved is
one of possession de facto, the purpose of which is merely to
protect the owner from any physical encroachment from
without. The title of the land or its ownership is not involved,
for if a person is in actual possession thereof, he is entitled to
be maintained and respected in it even against the owner
himself. (Garcia v. Anas, G.R. No. L-20617, May 31, 1965)

Since the case filed by Don against Cesar is an

ejectment case, the latter cannot ask for the cancellation of
Don's title. He has to file the proper action where the issue of
ownership over the property can be raised.

67
 NUISANCE;
2005 State with reason whether each of the following is a a)
A squatter's hut (1%) If constructed on public PUBLIC
nuisance, and if so, give its classification, whether public or streets or riverbeds, it is a public nuisance because it obstructs NUISANCE VS
PRIVATE
private: Article 694 of the Civil Code defines nuisance as any act, the free use by the public of said places. (City of Manila v. NUISANCE
omission, establishment, business, condition or property, or Garcia, G.R. No. L-26053, February 21,1967) If constructed
anything else which injures or endangers the health or safety of on private land, it is a private nuisance because it hinders or
others, or annoys or offends the senses, or shocks, defies or impairs the use of the property by the owner.
disregards decency or morality or obstructs or interferes with the
b) A swimming pool (1%) This is not a nuisance in
free passage of any public highway or street or any body of water
the absence of any unusual condition or artificial feature other
or hinders or impairs the use of property.
than the mere water. In Hidalgo Enterprises v. Balandan (G.R.
It is a public nuisance if it affects a community or No. L-3422, June 13, 1952), the Supreme Court ruled that a
neighborhood or any considerable number of persons. It is a direct swimming pool is but a duplication of nature — thus, could
encroachment upon public rights or property which results not be considered as a nuisance.
injuriously to the public. It is a private nuisance, if it affects only a
c) A house of prostitution (1%) Irrespective of its
person or small number of persons. It violates only private rights.
location and how its business is conducted, it is a nuisance
a) A squatter's hut b) A swimming pool c) A house of
since it defies, shocks and disregards decency and morality. It
prostitution d) A noisy or dangerous factory in a private land e)
is a public nuisance because of its injury to the public.
Uncollected garbage

d) A noisy or dangerous factory in a private land (1%)

If the noise injuriously affects the health and comfort of
ordinary people in the vicinity to an unreasonable extent, it is a
nuisance. It is a public nuisance because there is a tendency to
annoy the public. (Velasco v. Manila Electric Co., G.R. No. L-

68
 18390, August 6, 1971)

e) Uncollected garbage (1%) It will become a

nuisance if it substantially impairs the comfort and enjoyment
of the adjacent occupants. The annoyance and the smell must
be substantial as to interfere sensibly with the use and
enjoyment by persons of ordinary sensibilities. It is a public
nuisance because of its injury to the public.

2005 Rod, the owner of an FX taxi, found in his vehicle an No, Rod did not acquire title to the land. The FORGERY;
INNOCENT
envelope containing TCT No. 65432 over a lot registered in Cesar's inscription in the registry, to be effective, must be made in
PURCHASER;
name. Posing as Cesar, Rod forged Cesar's signature on a Deed of good faith. The defense of indefeasibility of a Torrens Title HOLDER IN BAD
FAITH
Sale in Rod's favor. Rod registered the said document with the does not extend to a transferee who takes the certificate of title
Register of Deeds, and obtained a new title in his name. After a with notice of a flaw. A holder in bad faith of a certificate of
year, he sold the lot to Don, a buyer in good faith and for value, title is not entitled to the protection of the law, for the law
who also registered the lot in his name. a) Did Rod acquire title to cannot be used as a shield for frauds. (Samonte v. Court of
the land? Explain. b) Discuss the rights of Don, if any, over the Appeals, G.R. No. 104223, July 12, 2001)
property.
In the case at bar, Rod only forged Cesar's signature on
the -Deed of Sale. It is very apparent that there was bad faith
on the part of Rod from the very beginning. As such, he is not
entitled to the protection of the Land Registration Act. (B). It is
a well-known rule in this jurisdiction that persons dealing with
registered land have the legal right to rely on the face of the
Torrens Certificate of Title and to dispense with the need to

69
 inquire further, except when the party concerned has actual
knowledge of facts and circumstances that would impel a
reasonably cautious man to make such inquiry. (Naawan
Community Rural Bank v. Court of Appeals, G.R. No. 128573,
January 13, 2003)

In the given problem, the property was already

registered in the name of Rod when he bought the same from
the latter. Thus, Don could be considered as a buyer in good
faith and for value. However, since Rod did not actually sell
any property to him, Don has no right to retain ownership over
the property. He has only the right to recover the purchase
price plus damages.

2005 Marvin offered to construct the house of Carlos for a very SUGGESTED ANSWER: The withdrawal of Marvin's CONTRACT OF
OPTION;
reasonable price of P900,000.00, giving the latter 10 days within offer will cause the offer to cease in law. Hence, even if
ELEMENTS
which to accept or reject the offer. On the fifth day, before Carlos subsequently accepted, there could be no concurrence of the
could make up his mind, Marvin withdrew his offer. a) What is the offer and the acceptance. In the absence of concurrence of
effect of the withdrawal of Marvin's offer? b) Will your answer be offer and acceptance, there can be no consent. (Laudico v.
the same if Carlos paid Marvin P10,000.00 as consideration for that Arias Rodriguez, G.R. No. 16530, March 31, 1922) Without
option? Explain. c) Supposing that Carlos accepted the offer before consent, there is no perfected contract for the construction of
Marvin could communicate his withdrawal thereof? Discuss the the house of Carlos. (Salonga v. Farrales, G.R. No. L-47088,
legal consequences. July 10, 1981) Article 1318 of the Civil Code provides that
there can be no contract unless the following requisites concur:

70
(1) consent of the parties; (2) object certain which is the
subject matter of the contract; and (3) cause of the obligation.

Marvin will not be liable to pay Carlos any damages

for withdrawing the offer before the lapse of the period
granted. In this case, no consideration was given by Carlos for
the option given, thus there is no perfected contract of option
for lack of cause of obligation. Marvin cannot be held to have
breached the contract. Thus, he cannot be held liable for
damages.

ALTERNATIVE ANSWER: My answer will be the

same as to the perfection of the contract for the construction of
the house of Carlos. No perfected contract arises because of
lack of consent. With the withdrawal of the offer, there could
be no concurrence of offer and acceptance. My answer will not
be the same as to damages. Marvin will be liable for damages
for breach of contract of option. With the payment of the
consideration for the option given, and with the consent of the
parties and the object of contract being present, a perfected
contract of option was created. (San Miguel, Inc. v. Huang,
G.R. No. 137290, July 31, 2000) Under Article 1170 of the
Civil Code, those who in the performance of their obligation
are guilty of contravention thereof, as in this case, when
Marvin did not give Carlos the agreed period of ten days, are

71
 liable for damages.

ALTERNATIVE ANSWER: My answer will not be

the same if Carlos paid Marvin P10,000.00 because an option
contract was perfected. Thus, if Marvin withdrew the offer
prior to the expiration of the 10-day period, he breached the
option contract. (Article 1324, Civil Code)

SUGGESTED ANSWER: A contract to construct the

house of Carlos is perfected. Contracts are perfected by mere
consent manifested by the meeting of the offer and the
acceptance upon the thing and the cause which are to
constitute the contract. (Gomez v. Court of Appeals, G.R. No.
120747, September 21, 2000)

Under Article 1315 of the Civil Code, Carlos and

Marvin are bound to fulfill what has been expressly stipulated
and all consequences thereof. Under Article 1167, if Marvin
would refuse to construct the house, Carlos is entitled to have
the construction be done by a third person at the expense of
Marvin. Marvin in that case will be liable for damages under
Article 1170.

2005 Bernie bought on installment a residential subdivision lot SUGGESTED ANSWER: No, the action
of NON-PAYMENT
OF
from DEVLAND. After having faithfully paid the installments for DEVLAND is not proper. Under Section 23 of Presidential
AMORTIZATION
S; SUBDIVISION
72
48 months, Bernie discovered that DEVLAND had failed to Decree No. 957, otherwise known as the Subdivision and BUYER; WHEN
JUSTIFIED
develop the subdivision in accordance with the approved plans and Condominium Buyer's Protection Decree, non-payment of
specifications within the time frame in the plan. He thus wrote a amortizations by the buyer is justified if non-payment is due to
letter to DEVLAND informing it that he was stopping payment. the failure of the subdivision owner to develop the subdivision
Consequently, DEVLAND cancelled the sale and wrote Bernie, project according to the approved plans and within the limit for
informing him that his payments are forfeited in its favor. a) Was complying. (Eugenio v. Drilon, G.R. No. 109404, January 22,
the action of DEVLAND proper? Explain. b) Discuss the rights of 1996)
Bernie under the circumstances. c) Supposing DEVLAND had
SUGGESTED ANSWER: Under P.D. No. 957, a
fully developed the subdivision but Bernie failed to pay further
cancellation option is available to Bernie. If Bernie opts to
installments after 4 years due to business reverses. Discuss the
cancel the contract, DEVLAND must reimburse Bernie the
rights and obligations of the parties.
total amount paid and the amortizations interest, excluding
delinquency interest, plus interest at legal rate. (Eugenio v.
Drilon, G.R. No. 109404, January 22, 1996)

SUGGESTED ANSWER: In this case, pursuant to

Section 24 of P.D. No. 957, R.A. No. 6552 otherwise known
as the Realty Installment Buyer Protection Act, shall govern.
Under Section 3 thereof, Bernie is entitled: 1) to pay without
additional interest the unpaid installments due within a grace
period of four (4) months or one month for every year of
installment paid; 2) if the contract is cancelled, Bernie is
entitled to the refund of the cash surrender value equal to 50%
of the total payments made.

DEVLAND on the other hand has the right to cancel

73
 the contract after 30 days from receipt by Bernie of notice of
cancellation. DEVLAND is however obliged to refund to
Bernie 50% of the total payments made. (Rillo v. Court of
Appeals, G.R. No. 125347, June 19, 1997).

2005 On July 14, 2004, Pedro executed in favor of Juan a Deed of SUGGESTED ANSWER: The complaint of Pedro EQUITABLE
MORTGAGE VS
Absolute Sale over a parcel of land covered by TCT No 6245. It against Juan should be dismissed. The instances when a
SALE
appears in the Deed of Sale that Pedro received X sold a parcel of contract — regardless of its nomenclature — may be presumed
land to Y on 01 January 2002, payment from Juan P120,000.00 as to be an equitable mortgage are enumerated in Article 1602 of
purchase price. However, Pedro retained the owner's duplicate of the Civil Code: "Art. 1602. The contract shall be presumed to
said title. Thereafter, Juan, as lessor, and Pedro, as lessee, executed be an equitable mortgage, in any of the following cases: 1
a contract of lease over the property for a period of one (1) year When the price of a sale with right to repurchase is unusually
with a monthly rental of Pl,000.00. Pedro, as lessee, was also inadequate: 2 When the vendor remains in possession as
obligated to pay the realty taxes on the property during the period lessee or otherwise; 3 When upon or after the expiration of the
of lease. right to repurchase another instrument extending the period of
redemption or granting a new period is executed; 4 When the
Subsequently, Pedro filed a complaint against Juan for the
purchaser retains for himself a part of the purchase price; 5
reformation of the Deed of Absolute Sale, alleging that the
When the vendor binds himself to pay the taxes on the thing
transaction covered by the deed was an equitable mortgage. In his
sold; 6 In any other case where it may be fairly inferred that
verified answer to the complaint, Juan alleged that the property was
the real intention of the parties is that the transaction shall
sold to him under the Deed of Absolute Sale, and interposed
secure the payment of a debt or the performance of any other
counterclaims to recover possession of the property and to compel
obligation.
Pedro to turn over to him the owner's duplicate of title. Resolve the
case with reasons. "In any of the foregoing cases, any money, fruits, or

74
 other benefit to be received by the vendee as rent or otherwise
shall be considered as interest which shall be subject to the
usury laws."

Article 1604 states that "the provisions of article 1602

shall also apply to a contract purporting to be an absolute sale."

For Articles 1602 and 1604 to apply, two requisites

must concur: 1) the parties entered into a contract denominated
as a contract of sale; and 2) their intention was to secure an
existing debt by way of mortgage. (Heirs of Balite v. Lim,
G.R. No. 152168, December 10, 2004)

In the given case, although Pedro retained possession

of the property as lessee after the execution of the Deed of
Sale, there is no showing that the intention of the parties was to
secure an existing debt by way of mortgage. Hence, the
complaint of Pedro should be dismissed.

2005 Under a written contract dated December 1, 1989, Victor SUGGESTED ANSWER: Yes, the action of for SUBLEASE VS
ASSIGNMENT OF
leased his land to Joel for a period of five (5) years at a monthly rescission of the contract of lease and for damages will
LEASE;
rental of Pl,000.00, to be increased to Pl,200.00 and Pl,500.00 on prosper. Under Article 1659 of the Civil Code, "if the lessor or RESCISSION OF
CONTRACT
the third and fifth year, respectively. On January 1, 1991, Joel the lessee should not comply with the obligations set forth in
subleased the land to Conrad for a period of two (2) years at a Articles 1654 and 1657, the aggrieved party may ask for
monthly rental of Pl,500.00. rescission of the contract and indemnification for damages, or

75
 On December 31, 1992, Joel assigned the lease to his only the latter, allowing the contract to remain in force."
compadre, Ernie, who acted on the belief that Joel was the rightful Article 1649 of the same Code provides that "the lessee cannot
owner and possessor of the said lot. Joel has been faithfully paying assign the lease without the consent of the lessor, unless there
the stipulated rentals to Victor. When Victor learned on May 18, is a stipulation to the contrary." Consent is necessary because
1992 about the sublease and assignment, he sued Joel, Conrad and assignment would cause novation by the substitution of one of
Ernie for rescission of the contract of lease and for damages. a) the parties.
Will the action prosper? If so, against whom? Explain. b) In case of
(Bangayan v. Court of Appeals, G.R. No. 123581,
rescission, discuss the rights and obligations of the parties.
August 29, 1997) However, the rule is different in the case of
subleasing. When there is no express prohibition in the
Contract of Lease, the lessee may sublet the thing leased. (Art.
1650, Civil Code)

In the given case, when Joel assigned the lease to

Ernie, the same was done without the consent of Victor. The
assignment is void. However, there is no indication that in the
written contract of lease between Victor and Joel, that
subleasing the premises is prohibited. Hence, the sublease of
Joel with Conrad is valid. In view of the foregoing, Victor can
file the case of rescission and damages only against Joel and
Ernie but he cannot include Conrad.

SUGGESTED ANSWER: Rescission of the lease

necessarily requires the return of the thing to the lessor. Hence,
the judgment granting rescission of the contract should also
order the lessee to vacate and return the leased premises to the
76
 lessor. However, since the sublessee can invoke no right
superior to that of his sublessor, the moment the sublessor is
duly ousted from the premises, the sublessee has no leg to
stand on. The sublessee's right, if any, is to demand reparation
for damages from his sublessor, should the latter be at fault.

(Heirs ofSevilla v. Court of Appeals G.R. No. 49823,

February 26, 1992).

2005 Before he left for Riyadh to work as a mechanic, Pedro left ALTERNATIVE ANSWER: Tito must bear the COMMADATUM
his Adventure van with Tito, with the understanding that the latter P15,000.00 expenses for the van. Generally, extraordinary
could use it for one year for his personal or family use while Pedro expenses for the preservation of the thing loaned are paid by
works in Riyadh. He did not tell Tito that the brakes of the van the bailor, he being the owner of the thing loaned. In this case
were faulty. Tito had the van tuned up and the brakes repaired. He however, Tito should bear the expenses because he incurred
spent a total amount of P15,000.00. After using the vehicle for two the expenses without first informing Pedro about it. Neither
weeks, Tito discovered that it consumed too much fuel. To make up was the repair shown to be urgent. Under Article 1949 of the
for the expenses, he leased it to Annabelle. Civil Code, bailor generally bears the extraordinary expenses
for the preservation of the thing and should refund the said
Two months later, Pedro returned to the Philippines and
expenses if made by the bailee; Provided, The bailee brings the
asked Tito to return the van. Unfortunately, while being driven by
same to the attention of the bailor before incurring them,
Tito, the van was accidentally damaged by a cargo truck without
except only if the repair is urgent that reply cannot be awaited.
his fault. a) Who shall bear the P15,000.00 spent for the repair of
the van? Explain. b) Who shall bear the costs for the van's fuel, oil ALTERNATIVE ANSWER: The P15,000.00 spent for
and other materials while it was with Tito? Explain. c) Does Pedro the repair of the van should be borne by Pedro. Where the
have the right to retrieve the van even before the lapse of one year? bailor delivers to the bailee a non-consummable thing so that

77
Explain. d) Who shall bear the expenses for the accidental damage the latter may use it for a certain time and return the identical
caused by the cargo truck, granting that the truck driver and truck thing, the contract perfected is a Contract of Commodatum.
owner are insolvent? Explain. (Art. 1933, Civil Code) The bailor shall refund the
extraordinary expenses during the contract for the preservation
of the thing loaned provided the bailee brings the same to the
knowledge of the bailor before incurring the same, except
when they are so urgent that the reply to the notification cannot
be awaited without danger. (Art. 1949 of the Civil Code)

In the given problem, Pedro left his Adventure van

with Tito so that the latter could use it for one year while he
was in Riyadh. There was no mention of a consideration. Thus,
the contract perfected was commodatum. The amount of
P15,000.00 was spent by Tito to tune up the van and to repair
its brakes. Such expenses are extra-ordinary expenses because
they are necessary for the preservation of the van Thus, the
same should be borne by the bailor, Pedro. Tito must also pay
for the ordinary expenses for the use and preservation of the
thing loaned. He must pay for the gasoline, oil, greasing and
spraying. He cannot ask for reimbursement because he has the
obligation to return the identical thing to the bailor. Under
Article 1941 of the Civil Code, the bailee is obliged to pay for
the ordinary expenses for the use and preservation of the thing
loaned.

78
 ALTERNATIVE ANSWER: No, Pedro does not have
the right to retrieve the van before the lapse of one year. The
parties are mutually bound by the terms of the contract. Under
the Civil Code, there are only 3 instances when the bailor
could validly ask for the return of the thing loaned even before
the expiration of the period. These are when: (1) a precarium
contract was entered (Article 1947); (2) if the bailor urgently
needs the thing (Article 1946); and (3) if the bailee commits
acts of ingratitude (Article 1948). Not one of the situations is
present in this case.

The fact that Tito had leased the thing loaned to

Annabelle would not justify the demand for the return of the
thing loaned before expiration of the period. Under Article
1942 of the Civil Code, leasing of the thing loaned to a third
person not member of the household of the bailee, will only
entitle bailor to hold bailee liable for the loss of the thing
loaned.

ALTERNATIVE ANSWER: As a rule, Pedro does not

have the right to retrieve the van before the lapse of one year.
Article 1946 of the Code provides that "the bailor cannot
demand the return of the thing loaned till after the expiration of
the period stipulated, or after the accomplishment of the use
for which the commodatum has been constituted. However, if

79
 in the meantime, he should have urgent need of the thing, he
may demand its return or temporary use." In the given
problem, Pedro allowed Tito to use the van for one year. Thus,
he should be bound by the said agreement and he cannot ask
for the return of the car before the expiration of the one year
period. However, if Pedro has urgent need of the van, he may
demand for its return or temporary use.

SUGGESTED ANSWER: Generally, extraordinary

expenses arising on the occasion of the actual use of the thing
loaned by the bailee, even if incurred without fault of the
bailee, shall be shouldered equally by the bailor and the bailee.
(Art. 1949 of the Civil Code). However, if Pedro had an urgent
need for the vehicle, Tito would be in delay for failure to
immediately return the same, then Tito would be held liable for
the extraordinary expenses.

2005 Dr. and Mrs. Almeda are prominent citizens of the country ALTERNATIVE ANSWER: Yes, the action will LIABILITY;
and are frequent travelers abroad. In 1996, they booked round-trip prosper. Article 2201 of the Civil Code entitles the person to AIRLINE
business class tickets for the Manila-Hong Kong-Manila route of recover damages which may be attributed to non-performance COMPANY; NON-
the Pinoy Airlines, where they are holders of Gold Mabalos Class of an obligation. In Alitalia Airways v. Court of Appeals (G.R. PERFORMANCE
Frequent Flier cards. On their return flight, Pinoy Airlines upgraded No. 77011, July 24, 1990), when an airline issues ticket to a OF AN
their tickets to first class without their consent and, inspite of their passenger confirmed on a particular flight, a contract of OBLIGATION
protestations to be allowed to remain in the business class so that carriage arises and the passenger expects that he would fly on

80
they could be with their friends, they were told that the business that day. When the airline deliberately overbooked, it took the
class was already fully booked, and that they were given priority in risk of having to deprive some passengers of their seat in case
upgrading because they are elite members/holders of Gold Mabalos all of them would show up. For the indignity and
Class cards. Since they were embarrassed at the discussions with inconvenience of being refused the confirmed seat, said
the flight attendants, they were forced to take the flight at the first passenger is entitled to moral damages.
class section apart from their friends who were in the business
In the given problem, spouses Almeda had a booked
class. Upon their return to Manila, they demanded a written
roundtrip business class ticket with Pinoy Airlines. When their
apology from Pinoy Airlines. When it went unheeded, the couple
tickets were upgraded to first class without their consent,
sued Pinoy Airlines for breach of contract claiming moral and
Pinoy Airlines breached the contract. As ruled in Zulueta v.
exemplary damages, as well as attorney's fees. Will the action
Pan American (G.R. No. L-28589, January 8, 1973), in case of
prosper? Give reasons.
overbooking, airline is in bad faith. Therefore, spouses Almeda
are entitled to damages.

ALTERNATIVE ANSWER:

The action may or may not prosper. Moral damages

include physical suffering, mental anguish, fright, serious
anxiety, besmirched reputation, wounded feelings, moral
shock, social humiliation, and similar injury. Although
incapable of pecuniary computation, moral damages may be
recovered if they are the proximate result of the defendant's
wrongful act or omission. Moral damages predicated upon a
breach of contract of carriage are recoverable only in instances
where the carrier is guilty of fraud or bad faith or where the
mishap resulted in the death of a passenger. (Cathay Pacific
81
Airways, Ltd. v. Court of Appeals, G.R. No. 60501, March 5,
1993) Where there is no showing that the airline acted
fraudulently or in bad faith, liability for damages is limited to
the natural and probable consequences of the breach of the
contract of carriage which the parties had foreseen or could
have reasonably foreseen. In such a case the liability does not
include moral and exemplary damages. In the instant case, if
the involuntary upgrading of the Almedas' seat accommodation
was not attended by fraud or bad faith, the award of moral
damages has no leg to stand on.

Thus, spouses would not also be entitled to exemplary

damages. It is a requisite in the grant of exemplary damages
that the act of the offender must be accompanied by bad faith
or done in wanton, fraudulent or malevolent manner. (Morris
v. Court of Appeals, G.R. No. 127957, February 21, 2001)
Moreover, to be entitled thereto, the claimant must first
establish his right to moral, temperate, or compensatory
damages. (Art. 2234, Civil Code) Since the Almedas are not
entitled to any of these damages, the award for exemplary
damages has no legal basis. Where the awards for moral and
exemplary damages are eliminated, so must the award for
attorney's fees be eliminated. (Orosa v. Court of Appeals, G.R.
No. 111080, April 5, 2000; Morris v. Court of Appeals, G.R.
No. 127957, February 21, 2001) The most that can be

82
 adjudged in their favor for Pinoy Airlines' breach of contract is
an award for nominal damages under Article 2221 of the Civil
Code. (Cathay Pacific Airways v. Sps. Daniel & Maria Luisa
Vasquez, G.R. No. 150843, March 14, 2003)

However, if spouses Almeda could prove that there was

bad faith on the part of Pinoy Airlines when it breached the
contract of carriage, it could be liable for moral, exemplary as
well as attorney's fees.

2005 Under the law on quasi-delict, aside from the persons who SUGGESTED ANSWER: The parents of the 7-year QUASI-DELICT
Vicarious liability
caused injury to persons, who else are liable under the following old boy who caused injury to his playmate are liable under
circumstances: a) When a 7-year old boy injures his playmate while Article 219 of the Family Code, in relation to Article 2180 of
playing with his father's rifle. Explain. b) When a domestic helper, the Civil Code since they exercise parental authority over the
while haggling for a lower price with a fish vendor in the course of person of the boy. (Tamargo v. Court of Appeals, G.R. No.
buying foodstuffs for her employer's family, slaps the fish vendor, 85044, June 3, 1992; Elcano v. Hill, G.R. No. L-24803, May
causing her to fall and sustain injuries. Explain. c) A carpenter in a 26, 1977)
construction company accidentally hits the right foot of his co- b) When a domestic helper, while haggling for a lower
worker with a hammer. Explain. d) A 15-year old high school price with a fish vendor in the course of buying foodstuffs for
student stabs his classmate who is his rival for a girl while they her employer's family, slaps the fish vendor, causing her to fall
were going out of the classroom after their last class. Explain. e) and sustain injuries. Explain. (2%)
What defense, if any, is available to them? SUGGESTED ANSWER: Employer of the domestic
helper who slapped a fish vendor. Under Article 2180, par. 5
of the Civil Code, "employers shall be liable for the damages
caused by their employees and household helpers acting within

83
the scope of their assigned tasks, even though the former are
not engaged in any business or industry."
c) A carpenter in a construction company accidentally
hits the right foot of his co-worker with a hammer. Explain.
(2%)
SUGGESTED ANSWER: The owner of the
construction company. Article 2180, paragraph 4 states that
"the owners and managers of an establishment or enterprise are
likewise responsible for damages caused by their employees in
the service of the branches in which the latter are employed or
on the occasion of their functions."
d) A 15-year old high school student stabs his
classmate who is his rival for a girl while they were going out
of the classroom after their last class. Explain. (2%)
SUGGESTED ANSWER: The school, teacher and
administrator as they exercise special parental authority. (Art.
2180, par. 7 in relation to Art. 218 and Art. 219 of the Family
Code)
e) What defense, if any, is available to them? (2%)
SUGGESTED ANSWER: The defense that might be
available to them is the observance of a good father of the
family to prevent the damage. (Last par., Art. 2180, Civil
Code)

84
2006 Zirxthoussous delos Santos filed a petition for change of SUGGESTED ANSWER: No, under the law, Jesus CHANGE OF
name with the Office of the Civil Registrar of Mandaluyong City may only change his name once. In addition, the petition for NAME; UNDER
under the administrative proceeding provided in Republic Act No. change of name may be denied on the following grounds: RA 9048
9048. He alleged that his first name sounds ridiculous and is
(1) Jesus is neither ridiculous, nor tainted with
extremely difficult to spell and pronounce. After complying with
dishonor nor extremely difficult to write or pronounce.
the requirements of the law, the Civil Registrar granted his petition
and changed his first name Zirxthoussous to "Jesus." His full name (2) There is no confusion to be avoided or created
now reads "Jesus delos Santos." with the use of the registered first name or nickname of the
petitioner.
Jesus delos Santos moved to General Santos City to work in
a multi-national company. There, he fell in love and married Mary (3) The petition involves the same entry in the same
Grace delos Santos. She requested him to have his first name document, which was previously corrected or changed under
changed because his new name "Jesus delos Santos" is the same this Order [Rules and Regulations Implementing RA 9048].
name as that of her father who abandoned her family and became a
notorious drug lord. She wanted to forget him. Hence, Jesus filed SUGGESTED ANSWER: Only clerical or

another petition with the Office of the Local Civil Registrar to typographical errors and first or nick names may be changed or
change his first name to "Roberto." He claimed that the change is corrected without a judicial order under RA 9048.
warranted because it will eradicate all vestiges of the infamy of
Clerical or typographical errors refer to mistakes
Mary Grace's father.
committed in the performance of clerical work in writing,

Will the petition for change of name of Jesus delos Santos copying, transcribing or typing an entry in the civil register.
to Roberto delos Santos under Republic Act No. 9048 prosper? The mistake is harmless and innocuous, such as errors in
Explain. What entries in the Civil Registry may be changed or spelling, visible to the eyes or obvious to the understanding,
corrected without a judicial order? and can be corrected or changed only by reference to other
existing records. Provided, however, that no correction must

85
 involve the change of nationality, age, status or sex of the
petitioner.

2006 May an illegitimate child, upon adoption by her natural SUGGESTED ANSWER: Yes, an illegitimate child, ADOPTION; USE
father, use the surname of her natural mother as the middle name? upon adoption by her natural father, can use the surname of her OF SURNAME OF
natural mother as her middle name. The Court has ruled that HER NATURAL
there is no law prohibiting an illegitimate child adopted by her MOTHER
natural father to use, as middle name, her mother's surname.
What is not prohibited is allowed. After all, the use of the
maternal name as the middle name is in accord with Filipino
culture and customs and adoption is intended for the benefit of
the adopted [In re: Adoption of Stephanie Nathy Astorga
Garcia, G.R. No. 148311, March 31, 2005; Rabuya, The Law
on Persons and Family Relations, p. 613].

2006 Saul, a married man, had an adulterous relation with Tessie. SUGGESTED ANSWER: As the counsel of Saul, I MARRIAGE;
LEGAL
In one of the trysts, Saul's wife, Cecile, caught them in flagrante. will argue that an attempt by the wife against the life of the
SEPARATION;
Armed with a gun, Cecile shot Saul in a fit of extreme jealousy, husband is one of the grounds enumerated by the Family Code MUTUAL GUILT
nearly killing him. Four (4) years after the incident, Saul filed an for legal separation and there is no need for criminal
action for legal separation against Cecile on the ground that she conviction for the ground to be invoked (Art. 55, par. 9,
attempted to kill him. (1) If you were Saul's counsel, how will you Family Code).
argue his case? (2) If you were the lawyer of Cecile, what will be
SUGGESTED ANSWER: As the counsel of Cecile, I
your defense? (3) If you were the judge, how will you decide the
will invoke the adultery of Saul. Mutual guilt is a ground for

86
 case? the dismissal of an action for legal separation (Art. 56, par. 4,
Family Code). The rule is anchored on a well-established
principle that one must come to court with clean hands.

SUGGESTED ANSWER: If I were the judge, I will

dismiss the action on the ground of mutual guilt of the parties.
The Philippine Constitution protects marriage as an inviolable
social institution (Art. XV, Sec. 2, 1987 Constitution). An
action for legal separation involves public interest and no such
decree should be issued if any legal obstacle thereto appears on
record. This is in line with the policy that in case of doubt, the
court shall uphold the validity and sanctity of marriage (Brown
v. Yambao, G.R. No. L-10699, October 18, 1957).

2006 Marvin, a Filipino, and Shelley, an American, both residents Yes. The marriage will not fall under Art. 35(4) of the MARRIAGE;
NON-BIGAMOUS
of California, decided to get married in their local parish. Two Family Code on bigamous marriages, provided that Shelley
MARRIAGES
years after their marriage, Shelley obtained a divorce in California. obtained an absolute divorce, capacitating her to remarry under
While in Boracay, Marvin met Manel, a Filipina, who was her national law. Consequently, the marriage between Marvin
vacationing there. Marvin fell in love with her. After a brief and Manel may be valid as long as it was solemnized and valid
courtship and complying with all the requirements, they got in accordance with the laws of Hongkong [Art. 26, paragraphs
married in Hongkong to avoid publicity, it being Marvin's second 1 and 2, Family Code].
marriage. Is his marriage to Manel valid? Explain.

2006 Gemma filed a petition for the declaration of nullity of her No, Gemma's suit will not prosper. Even if taken as MARRIAGE;
PSYCHOLOGICA
87
 marriage with Arnell on the ground of psychological incapacity. true, the grounds, singly or collectively, do not constitute L INCAPACITY
She alleged that after 2 months of their marriage, Arnell showed "psychological incapacity." In Santos v. CA, G.R. No. 112019,
signs of disinterest in her, neglected her and went abroad. He January 4, 1995, the Supreme Court clearly explained that
returned to the Philippines after 3 years but did not even get in "psychological incapacity must be characterized by (a) gravity,
touch with her. Worse, they met several times in social functions (b) juridical antecedence, and (c) incurability" (Ferraris v.
but he snubbed her. When she got sick, he did not visit her even if Ferraris, G.R. No. 162368, July 17, 2006; Choa v. Choa, G.R.
he knew of her confinement in the hospital. Meanwhile, Arnell met No. 143376, November 26, 2002). The illness must be shown
an accident which disabled him from reporting for work and as downright incapacity or inability to perform one's marital
earning a living to support himself. Will Gemma's suit prosper? obligations, not a mere refusal, neglect, difficulty or much less,
Explain. ill will. Moreover, as ruled in Republic v. Molina, GR No.
108763, February 13, 1997, it is essential that the husband is
capable of meeting his marital responsibilities due to
psychological and not physical illness (Antonio v. Reyes, G.R.
No. 155800, March 10, 2006; Republic v. Quintero-Hamano,
G.R. No. 149498, May 20, 2004). Furthermore, the condition
complained of did not exist at the time of the celebration of
marriage.

2006 Article 36 of the Family Code provides that a marriage SUGGESTED ANSWER: The best answers are B and MARRIAGE;
contracted by any party who, at the time of the celebration, was C. To be sure, the existence and concealment of these PSYCHOLOGICA
psychologically incapacitated to comply with the essential marital conditions at the inception of marriage renders the marriage L INCAPACITY
obligations of marriage, shall be void. Choose the spouse listed contract voidable (Art. 46, Family Code). They may serve as
below who is psychologically incapacitated. Explain. (2.5%) a) indicia of psychological incapacity, depending on the degree
Nagger b) Gay or Lesbian c) Congenital sexual pervert d) and severity of the disorder (Santos v. CA, G.R. No. 112019,

88
Gambler e) Alcoholic Jan. 4, 1995). Hence, if the condition of homosexuality,
lesbianism or sexual perversion, existing at the inception of the
marriage, is of such a degree as to prevent any form of sexual
intimacy, any of them may qualify as a ground for
psychological incapacity. The law provides that the husband
and wife are obliged to live together, observe mutual love,
respect and fidelity (Art. 68, Family Code). The mandate is
actually the spontaneous, mutual affection between the
spouses. In the natural order it is sexual intimacy which brings
the spouses wholeness and oneness (Chi Ming Tsoi)

ALTERNATIVE ANSWER: None of them are

necessarily psychologically incapacitated. Being a nagger, etc.
are at best only physical manifestations indicative of
psychological incapacity. More than just showing the
manifestations of incapacity, the petitioner must show that the
respondent is incapacitated to comply with the essential
marital obligations of marriage and that it is also essential that
he must be shown to be incapable of doing so due to some
psychological, not physical illness (Republic v. Quintero-
Hamano, G.R. No. 149498, May 20, 2004).

ALTERNATIVE ANSWER: A congenital sexual

pervert may be psychologically incapacitated if his perversion
incapacitates him from discharging his marital obligations. For

89
 instance, if his perversion is of such a nature as to preclude any
normal sexual activity with his spouse.

2006 Gigi and Ric, Catholics, got married when they were 18 SUGGESTED ANSWER: Even if the Minister's MARRIAGE;
years old. Their marriage was solemnized on August 2, 1989 by license expired, the marriage is valid if either or both Gigi and VOID
Ric's uncle, a Baptist Minister, in Calamba, Laguna. He overlooked Ric believed in good faith that he had the legal authority to MARRIAGES
the fact that his license to solemnize marriage expired the month solemnize marriage. While the authority of the solemnizing
before and that the parties do not belong to his congregation. After officer is a formal requisite of marriage, and at least one of the
5 years of married life and blessed with 2 children, the spouses parties must belong to the solemnizing officer's church, the law
developed irreconcilable differences, so they parted ways. While provides that the good faith of the parties cures the defect in
separated, Ric fell in love with Juliet, a 16 year-old sophomore in a the lack of authority of the solemnizing officer (Art. 35 par. 2,
local college and a Seventh-Day Adventist. They decided to get Family Code; Sempio-Diy, p. 34; Rabuya, The Law on
married with the consent of Juliet's parents. She presented to him a Persons and Family Relations, p. 208).
birth certificate showing she is 18 years old. Ric never doubted her
The absence of parental consent despite their having
age much less the authenticity of her birth certificate. They got
married at the age of 18 is deemed cured by their continued
married in a Catholic church in Manila. A year after, Juliet gave
cohabitation beyond the age of 21. At this point, their marriage
birth to twins, Aissa and Aretha.
is valid (See Art. 45, Family Code).
(1) What is the status of the marriage between Gigi and Ric
SUGGESTED ANSWER: The marriage between Juliet
— valid, voidable or void? Explain. (2) What is the status of the
and Ric is void. First of all, the marriage is a bigamous
marriage between Ric and Juliet — valid, voidable or void? (3)
marriage not falling under Article 41 [Art. 35(4)Family Code],
Suppose Ric himself procured the falsified birth certificate to
A subsisting marriage constitutes a legal impediment to
persuade Juliet to marry him despite her minority and assured her
remarriage. Secondly, Juliet is below eighteen years of age.
that everything is in order. He did not divulge to her his prior
The marriage is void even if consented to by her parents [Art.

90
 marriage with Gigi. What action, if any, can Juliet take against 35(1), Family Code]. The fact that Ric was not aware of her
him? Explain. (4) If you were the counsel for Gigi, what action/s real age is immaterial. SUGGESTED ANSWER: Juliet can file
will you take to enforce and protect her interests? Explain. an action for the declaration of nullity of the marriage on the
ground that he willfully caused loss or injury to her in a
manner that is contrary to morals, good customs and public
policy [Art. 21, New Civil Code]. She may also bring criminal
actions for seduction, falsification, illegal marriage and bigamy
against Ric.

SUGGESTED ANSWER: I would file an action to

declare the marriage between Juliet and Ric null and void ab
initio and for Ric's share in the co-ownership of that marriage
to be forfeited in favor and considered part of the absolute
community in the marriage between Gigi and Ric [Arts. 148 &
147, Family Code]. I would also file an action for damages
against Ric on the grounds that his acts constitute an abuse of
right and they are contrary to law and morals, causing damages
to Gigi (See Arts 19, 20, 21, New Civil Code).

2006 Under Article 213 of the Family Code, no child under 7 SUGGESTED ANSWER: The rationale of the 2nd PARENTAL
years of age shall be separated from the mother unless the court paragraph of Article 213 of the Family Code is to avoid the AUTHORITY;
finds compelling reasons to order otherwise. (1) Explain the tragedy of a mother who sees her baby torn away from her. It CHILD UNDER 7
rationale of this provision. (2) Give at least 3 examples of is said that the maternal affection and care during the early YEARS OF AGE
"compelling reasons" which justify the taking away from the years of the child are generally needed by the child more than

91
 mother's custody of her child under 7 years of age. paternal care (Hontiveros v. IAC, G.R. No. 64982, October
23, 1984; Tolentino, Commentaries and Jurisprudence on the
Civil Code, Volume One, pp. 718-719). The general rule is
that a child below 7 years old shall not be separated from his
mother due to his basic need for her loving care (Espiritu v.
C.A., G.R. No. 115640, March 15,1995).

SUGGESTED ANSWER: a. The mother is insane

(Sempio-Diy, Handbook on the Family Code of the
Philippines, pp. 296-297); • The mother is sick with a disease
that is communicable and might endanger the health and life of
the child; • The mother has been maltreating the child; • The
mother is engaged in prostitution; • The mother is engaged in
adulterous relationship; • The mother is a drug addict; • The
mother is a habitual drunk or an alcoholic;

2006 Ed and Beth have been married for 20 years without SUGGESTED ANSWER: Andy is the biological PATERNITY &
children. Desirous to have a baby, they consulted Dr. Jun Canlas, a father of Alvin being the source of the sperm. Andy is the legal FILIATION;
, prominent medical specialist on human fertility. He advised Beth father of Alvin because there was neither consent nor ARTIFICIAL
to undergo artificial insemination. It was found that Ed’s sperm ratification to the artificial insemination. Under the law, INSEMINATION;
count was inadequate to induce pregnancy Hence, the couple children conceived by artificial insemination are legitimate FORMALITIES
looked for a willing donor. Andy the brother of Ed, readily children of the spouses, provided, that both of them authorized
consented to donate his sperm. After a series of test, Andy's sperm or ratified the insemination in a written instrument executed
was medically introduced into Beth’s ovary. She became pregnant and signed by both of them before the birth of the child (Art.

92
 and 9 months later, gave birth to a baby boy, named Alvin. (1) 164, Family Code).
Who is the Father of Alvin? Explain. (2) What are the
SUGGESTED ANSWER: The following are the
requirements, if any, in order for Ed to establish his paternity over
requirements for Ed to establish his paternity over Alvin: •
Alvin.
The artificial insemination has been authorized or ratified by
the spouses in a written instrument executed and signed by
them before the birth of the child; and • The written
instrument is recorded in the civil registry together with the
birth certificate of the child (Art. 164, 2nd paragraph, Family
Code).

2006 Don died after executing a Last Will and Testament leaving SUGGESTED ANSWER: Yes, Don's testamentary WILLS;
his estate valued at P12 Million to his common-law wife Roshelle. disposition of his estate is in accordance with the law on TESTAMENTARY
He is survived by his brother Ronie and his half-sister Michelle. succession. Don has no compulsory heirs not having DISPOSITION
(1) Was Don's testamentary disposition of his estate in accordance ascendants, descendants nor a spouse [Art. 887, New Civil
with the law on succession? Whether you agree or not, explain your Code]. Brothers and sisters are not compulsory heirs. Thus, he
answer. Explain. (2) If Don failed to execute a will during his can bequeath his entire estate to anyone who is not otherwise
lifetime, as his lawyer, how will you distribute his estate? Explain. incapacitated to inherit from him. A common-law wife is not
(3) Assuming he died intestate survived by his brother Ronie, his incapacitated under the law, as Don is not married to anyone.
half-sister Michelle, and his legitimate son Jayson, how will you
SUGGESTED ANSWER: After paying the legal
distribute his estate? Explain. (4) Assuming further he died
obligations of the estate, I will give Ronie, as full-blood
intestate, survived by his father Juan, his brother Ronie, his half-
brother of Don, 2/3 of the net estate, twice the share of
sister Michelle, and his legitimate son Jayson, how will you
Michelle, the half-sister who shall receive 1/3. Roshelle will
distribute his estate? Explain.
not receive anything as she is not a legal heir [Art. 1006 New

93
 Civil Code].

SUGGESTED ANSWER: Jayson will be entitled to the

entire P12 Million as the brother and sister will be excluded by
a legitimate son of the decedent. This follows the principle of
proximity, where "the nearer excludes the farther."

SUGGESTED ANSWER: Jayson will still be entitled

to the entire P12 Million as the father, brother and sister will
be excluded by a legitimate son of the decedent [Art. 887, New
Civil Code]. This follows the principle that the descendants
exclude the ascendants from inheritance.

2006 Spouses Alfredo and Racquel were active members of a ALTERNATIVE ANSWER: Yes, Alfredo and DONATIONS;
religious congregation. They donated a parcel of land in favor of Racquel can bring an action for ejectment against the Minister UNREGISTERED;
that congregation in a duly notarized Deed of Donation, subject to for recovery of possession of the property evict the Minister EFFECTS; NON-
the condition that the Minister shall construct thereon a place of and recover possession of the property. An action for COMPLIANCE;
worship within 1 year from the acceptance of the donation. In an annulment of the donation, reconveyance and damages should RESOLUTORY
affidavit he executed on behalf of the congregation, the Minister be filed to protect the interests of my client. The donation is an CONDITION
accepted the donation. The Deed of Donation was not registered onerous donation and therefore shall be governed by the rules
with the Registry of Deeds. on contracts. Because there was no fulfillment or compliance
with the condition which is resolutory in character, the
However, instead of constructing a place of worship, the
donation may now be revoked and all rights which the donee
Minister constructed a bungalow on the property he used as his
may have acquired under it shall be deemed lost and
residence. Disappointed with the Minister, the spouses revoked the

94
 donation and demanded that he vacate the premises immediately. extinguished
But the Minister refused to leave, claiming that aside from using
(Central Philippine University, G.R. No. 112127, July
the bungalow as his residence, he is also using it as a place for
17,1995).
worship on special occasions. Under the circumstances, can
Alfredo and Racquel evict the Minister and recover possession of ALTERNATIVE ANSWER: No, an action for
the property? If you were the couple's counsel, what action you ejectment will not prosper. I would advice Alfredo and
take to protect the interest of your clients? Racquel that the Minister, by constructing a structure which
also serves as a place of worship, has pursued the objective of
the donation. His taking up residence in the bungalow may be
regarded as a casual breach and will not warrant revocation of
the donation. Similarily, therefore, an action for revocation of
the donation will be denied (C. J. Yulo & Sons, Inc. v. Roman
Catholic Bishop, G.R. No. 133705, March 31, 2005; Heirs
ofRozendo Sevilla v. De Leon, G.R. No. 149570, March 12,
2004).

2006 Alberto and Janine migrated to the United States of SUGGESTED ANSWER: If I were George's counsel, EJECTMENT
America, leaving behind their 4 children, one of whom is Manny. I would first demand that Manny vacate the apartment. If SUIT;
They own a duplex apartment and allowed Manny to live in one of Manny refuses, I will file an ejectment suit. When Manny was COMMODATUM
the units. While in the United States, Alberto died. His widow and allowed by his parents to occupy the premises, without
all his children executed an Extrajudicial Settlement of Alberto's compensation, the contract of commodatum was created. Upon
estate wherein the 2door apartment was assigned by all the children the death of the father, the contract was extinguished as it is a
to their mother, Janine. Subsequently, she sold the property to purely personal contract. As the new owner of the apartment
George. The latter required Manny to sign a prepared Lease George is entitled to exercise his right of possession over the

95
 Contract so that he and his family could continue occupying the same.
unit. Manny refused to sign the contract alleging that his parents
allowed him and his family to continue occupying the premises.

If you were George's counsel, what legal steps will you

take? Explain.

2006 A drug lord and his family reside in a small bungalow SUGGESTED ANSWER: No, the demolition cannot NUISANCE;
FAMILY HOUSE;
where they sell shabu and other prohibited drugs. When the police be sustained. The house is not a nuisance per se or at law as it
NOT NUISANCE
found the illegal trade, they immediately demolished the house is not an act, occupation, or structure which is a nuisance at all PER SE
because according to them, it was a nuisance per se that should be times and under any circumstances, regardless of location or
abated. Can this demolition be sustained? Explain. surroundings. A nuisance per se is a nuisance in and of itself,
without regard to circumstances [Tolentino, p. 695, citing
Wheeler v. River Falls Power Co., 215 Ala. 655, 111 So. 907].

2006 Spouses Biong and Linda wanted to sell their house. They No, the suit will not prosper. The contract of sale was CONTRACT OF
found a prospective buyer, Ray. Linda negotiated with Ray for the In a CONTRACT OF SALE, ownership is transferred to SALE; MARITAL
sale of the property. They agreed on a fair price of P2 Million. Ray perfected when Linda and Ray agreed on the object of the sale COMMUNITY
sent Linda a letter confirming his intention to buy the property. and the price [Art. 1475, New Civil Code]. The consent of PROPERTY;
Later, another couple, Bernie and Elena, offered a similar house at Linda has already been given, as shown by her agreement to FORMALITIES
a lower price of P 1.5 Million. But Ray insisted on buying the the price of the sale. There is therefore consent on her part as
house of Biong and Linda for sentimental reasons. Ray prepared a the consent need not be given in any specific form. Hence, her
deed of sale to be signed by the couple and a manager's check for consent may be given by implication, especially since she was
P2 Million. After receiving the P2 Million, Biong signed the deed aware of, and participated in the sale of the property (Pelayo v.

96
of sale. However, Linda was not able to sign it because she was CA, G.R. No. 141323, June 8, 2005). Her action for moral and
abroad. On her return, she refused to sign the document saying she exemplary damages will also not prosper because the case does
changed her mind. Linda filed suit for nullification of the deed of not fall under any of those mentioned in Art. 2219 and 2232 of
sale and for moral and exemplary damages against Ray. Will the the Civil Code.
suit prosper? Explain. Does Ray have any cause of action against
ALTERNATIVE ANSWER: The suit will prosper.
Biong and Linda? Can he also recover damages from the spouses?
Sale of community property requires written consent of both
Explain.
spouses. The failure or refusal of Linda to affix her signature
on the deed of sale, coupled with her express declaration of
opposing the sale negates any valid consent on her part. The
consent of Biong by himself is insufficient to effect a valid sale
of community property (Art. 96, Family Code; Abalos v.
Macatangay, G.R. No. 155043, September 30, 2004).
Considering that the contract has already been perfected and
taken out of the operation of the statute of frauds, Ray can
compel Linda and Biong to observe the form required by law
in order for the property to be registered in the name of Ray
which can be filed together with the action for the recovery of
house [Art. 1357 New Civil Code]. In the alternative, he can
recover the amount of Two million pesos (P2,000,000.00) that
he paid. Otherwise, it would result in solutio indebiti or unjust
enrichment.

Ray can recover moral damages on the ground that the

action filed by Linda is clearly an unfounded civil suit which

97
 falls under malicious prosecution {Ponce v. Legaspi, G.R. No.
79184, May 6,1992).

2006 Under Article 2219 of the Civil Code, moral damages may SUGGESTED ANSWER: Immorality and dishonesty, MORAL
be recovered in the cases specified therein several of which are per se, are not among those cases enumerated in Article 2219 DAMAGES; NON-
enumerated below. Choose the case wherein you cannot recover which can be the basis of an action for moral damages. The RECOVERY
moral damages. Explain. (2.5%) a) A criminal offense resulting in law specifically mentions adultery or concubinage, etc. but not THEREOF
physical injuries b) Quasi-delicts causing physical injuries c) any and every immoral act.
Immorality or dishonesty d) Illegal search e) Malicious
prosecution

2006 Tony bought a Ford Expedition from a car dealer in SUGGESTED ANSWER: Yes, Tony may file an QUASI-DELICT;
MISMANAGAME
Muntinlupa City. As payment, Tony issued a check drawn against action against Premium Bank for damages under Art. 2176.
NT OF
his current account with Premium Bank. Since he has a good Even if there exists a contractual relationship between Tony DEPOSITOR’S
ACCOUNT
reputation, the car dealer allowed him to immediately drive home and Premium Bank, an action for quasi-delict may nonetheless
the vehicle merely on his assurance that his check is sufficiently prosper. The Supreme Court has consistently ruled that the act
funded. When the car dealer deposited the check, it was dishonored that breaks the contract may also be a tort. There is a fiduciary
on the ground of "Account Closed." After an investigation, it was relationship between the bank and the depositor, imposing
found that an employee of the bank misplaced Tony's account utmost diligence in managing the accounts of the depositor.
ledger. Thus, the bank erroneously assumed that his account no The dishonor of the check adversely affected the credit
longer exists. Later it turned out that Tony's account has more than standing of Tony, hence, he is entitled to damages (Singson v.
sufficient funds to cover the check. The dealer however, BPI, G.R. No. L-24932, June 27, 1968; American Express
immediately filed an action for recovery of possession of the International, Inc. v. IAC, G.R. No. 72383, November 9, 1988;
vehicle against Tony for which he was terribly humiliated and Consolidated Bank and Trust v. CA, G.R. No. L-70766

98
 embarrassed. Does Tony have a cause of action against Premium November 9,1998).
Bank? Explain.

2006 Arturo sold his Pajero to Benjamin for P1 Million. SUGGESTED ANSWER: Yes, Dennis can file an VICARIOUS
Benjamin took the vehicle but did not register the sale with the independent civil action against Carlos and his father for LIABILITY
Land Transportation Office. He allowed his son Carlos, a minor damages based on quasi-delict there being an act or omission
who did not have a driver's license, to drive the car to buy pan de causing damage to another without contractual obligation.
sal in a bakery. On the way, Carlos driving in a reckless manner, Under Section 1 of Rule 111 of the 2000 Rules on Criminal
sideswiped Dennis, then riding a bicycle. As a result, he suffered Procedure, what is deemed instituted with the criminal action
serious physical injuries. Dennis filed a criminal complaint against is only the action to recover civil liability arising from the act
Carlos for reckless imprudence resulting in serious physical or omission punished by law. An action based on quasi-delict
injuries. 1. Can Dennis file an independent civil action against is no longer deemed instituted and may be filed separately
Carlos and his father Benjamin for damages based on quasi-delict? [Section 3, Rule 111, Rules of Criminal Procedure].
Explain. 2. Assuming Dennis' action is tenable, can Benjamin raise
SUGGESTED ANSWER: No, Benjamin cannot raise
the defense that he is not liable because the vehicle is not registered
the defense that the vehicle is not registered in his name. His
in his name? Explain.
liability, vicarious in character, is based on Article 2180
because he is the father of a minor who caused damage due to
negligence. While the suit will prosper against the registered
owner, it is the actual owner of the private vehicle who is
ultimately liable (See Duavit v. CA, G.R. No. L-29759, May
18, 1989). The purpose of car registration is to reduce
difficulty in identifying the party liable in case of accidents
(Villanueva v. Domingo, G.R. No. 144274, September 14,

99
 2004).

2007 Distinguish the following concepts: Occupation is a mode of acquiring ownership which OCCUPATION;
Occupation v. possession. involves some form of holding (Articles 712 & 713, New Civil POSSESSION
Code). Possession is the holding of a thing or the enjoyment of
a right. (Article 532, NCC).

Occupation can take place only with respect to property

without an owner, while possession can refer to all kinds of
property, whether with or without an owner. Occupation in
itself, when proper, confers ownership; but possession does not
by itself give rise to ownership. (II Tolentino, Civil Code, 1992
ed., p. 489).

2007 Illegal and impossible conditions in a simple donation v. Illegal or imposable conditions in simple conditions are SIMPLE
illegal and impossible conditions in an onerous donation. considered as not imposed, hence the donation is valid. (Art. DONATION;
727, NCC). On the other hand, donations with an onerous ONEROUS
cause shall be governed by the rules on contract (Art. 733, DONATION
NCC). Under Art. 1183 0f the New Civil Code, “(I)mpossible
conditions, those contrary to good customs or public policy
and those prohibited by law shall annul the obligation which
depends upon them.” Thus, the onerous donation is void.

100
2007 Manila Petroleum Co. owned and operated a petroleum 1. Alternative Answer: MOVABLE AND
operation facility off the coast of Manila. The facility was located The platform is an immovable property by destination. It was IMMOVABLE
on a floating platform made of wood and metal, upon which was intended by the owner to remain at a fixed place on a river or PROPERTY
permanently attached the heavy equipment for the petroleum coast.
operations and living quarters of the crew. The floating platform
likewise contained a garden area, where trees, plants and flowers Article 415(9) of the New Civil Code considers as a real
were planted. The platform was tethered to a ship, the MV 101, property “docks and structures which, though, floating, are
which was anchored to the seabed. intended by their nature and object to remain at a fixed place
on a river, lake or coast.”
1. Is the platform movable or immovable property?
NOTA BENE: In Fels Energy, Inc. v. The Province of
2. Are the equipment and living quarters movable or
Batangas, et.al., G.R. No. 168557, February 16, 2007, the
immovable property?
Court ruled that the power barges moored off the coast of

3. Are the trees, plants and flowers immovable or movable Balayan, Batangas are real property under Article 415(9) of the
property? Civil Code. This case is beyond the coverage of the 2007
Bar Exam.

Alternative Answer:
The platform is a movable property if it is not
permanently attached or anchored to the ship or seabed. As a
result, it may be brought from place to place for various
purposes or may be towed or tethered to other vessels.

2. Alternative Answer:

101
With respect to the equipment, the same is real property under
paragraph 5 ofArticle 415, NCC. It is intended to meet the
needs of the industry being undertaken by Manila Petroleum
Co. The equipment partakes of the nature of the immovable
upon which it has been placed.

The living quarters, if attached to the immovable platform with

permanence, becomes an immovable as well. Permanence
means they cannot be separated without destroying the
platform or the quarters. (Art. 415[3], NCC). On the other
hand, if the attachment is not permanent, or is merely
superimposed on the platform, then the living quarters are
movable property.

Alternative Answer:
With respect to the equipment, the same is real property under
paragraph 5 ofArticle 415. It is intended to meet the needs of
industry being undertaken by Manila Petroleum Co. The
equipment partakes of the nature of the immovable upon which
it has been placed.

If the platform is movable property, then the living quarters are

movable property as well because they partake of the nature of

102
 the platform to which they are attached.

3. Alternative Answer:
The trees, plants and flowers are also immovable, having been
“planted” in the garden area under Art. 415(2) which provides
that “Trees, plants, and growing fruits, while they
are attached to the land or form an integral part of the
immovable” are likewise immovable property.

Alternative Answer:
If the platform is movable property, then the trees, plants and
flowers are movable because they are not attached to the land
or form an integral part of any immovable. (par.2, Art. 415,
NCC)

2007 Explain the following concepts and doctrines and give an 1. A constructive trust is a form of implied trust created CONSTRUCTIVE
example of each: by equity to meet the demands of justice. It arises contrary to TRUST; LAST
1. concept of trust de son tort (constructive trust) intention against one who, by fraud, duress, or abuse of CLEAR CHANCE
confidence, undue influence or mistake or breach of fiduciary
2. doctrine of discovered peril (last clear chance)
duty or wrongful disposition of another’s property, obtains or
holds the legal right to property which he is not entitled to
under the law. (Huang v. Court of Appeals, G.R. No. 108525,
September 13, 1994). An example of constructive trust is when

103
 a property is acquired through mistake or fraud, the person
obtaining it, is by force of law, considered a trustee of an
implied trust for the benefit of the person from whom the
property comes. (Art. 1456, NCC).

2. A constructive trust is a form of implied trust created

by equity to meet the demands of justice. It arises contrary to
intention against one who, by fraud, duress, or abuse of
confidence, undue influence or mistake or breach of fiduciary
duty or wrongful disposition of another’s property, obtains or
holds the legal right to property which he is not entitled to
under the law. (Huang v. Court of Appeals, G.R. No. 108525,
September 13, 1994). An example of constructive trust is when
a property is acquired through mistake or fraud, the person
obtaining it, is by force of law, considered a trustee of an
implied trust for the benefit of the person from whom the
property comes. (Art. 1456, NCC).

2007 Bedrock Land & Property Development Corp. is a 1. Depending on the transaction involved, one or more PROPERTY
development company engaged in developing and selling of the following will be the governing laws relating to land
subdivisions, condominium units and industrial estates. In order to acquisition of title to land are as follows:
replenish its inventories, it embarked on an aggressive land banking 1. P.D. No. 1529 (Property Registration Decree)
program. It employed "scouts" who roam all over the Philippines to 2. Public Land Law (CA No. 141, as amended)
look for and conduct investigations on prospective sites for 3. The Civil Code of the Philippines

104
 acquisition and development, whether developed, semi-developed 4. Act No. 2259 (The Cadastral Act)
or raw land. The management of Bedrock asks you as the company 5. Section 194 of the Administrative Code as amended by Act
counsel to prepare a manual containing a summary of the pertinent No. 2837 and Act No. 3344 (System of Recording for
laws and regulations relating to land registration and acquisition of Unregistered Real Estate)
title to land. The manual should include the following items: 6. P.D. No. 1073 (Extending the Period for Administrative and
Supply this information. Judicial Legalization of Imperfect Title)
7. Article XII of the 1987 Constitution
1. What is the governing law? 8. P.D. No. 957 (An Act Regulating the Sale of Subdivisions
and Condominiums)
2. What properties are not registrable?
9. R.A. 4276 (An Act Amending P.D. No. 957)
10. Real Property Tax Code.

2. With respect to the land banking program

of Bedrock, the following properties may not be registered
under the Torrens System with any Register of Deeds: (a)
inalienable lands of the public domain; and (b) those
prohibited under the Constitution (such as national parks,
mineral lands, forest or timber lands and agricultural lands not
classified as alienable and disposable.)

2007 What are obligations without an agreement"? Give five Examples of situations giving rise to “Obligations OBLIGATIONS
examples of situations giving rise to this type of obligations? without an agreement” are as follows: AND
Obligations without an agreement are those which are not based on 1. A law was passed requiring the payment of a specific kind CONTRACTS
contract. Apart from contracts, obligations may arise from (1) law; of tax.

105
(2) qausi-contract; (3) delict; and (4) quasi-delict.
2. If something is received when there is no right to demand it,
and it was unduly delivered through mistake, the obligation to
return it arises. (Article 2154, NCC)

3. When a person voluntarily takes charge of the agency or

management of the business or property of anther, without any
power from the latter, he is obliged to continue the same until
the termination of the affair and its incidents, or to require the
person concerned to substitute him, if the owner is in a
position to do so. This juridical relation does not arise in either
of these instances:
a. When the property or business is not neglected or
abandoned;
b. If in fact the manager has been tacitly authorized by the
owner (Article 2144, NCC)
4. A person, through negligence, caused damage or injury to
another.

5. A person intentionally damaged a property of another.

6. The obligation by the recipient to return what has been paid

or delivered to him by mistake, the recipient not having the
right to demand it, is one that arises from quasi-contract

106
 (Article 2154, NCC)

7. The obligation of the culprit to pay actual damages for

causing the death of a person is one which arises from delict or
crime (Art. 2206, NCC)

8. The obligation of the tortfeasor to pay damages for injuries

or damages caused by him to another person due to his act or
omission, characterized by fault or negligence, is one which
arises from quasi-delict (Art. 2176, NCC) and

9. The obligation to pay reward for a certain act or

accomplishment pursuant to a promise made to the general
public is an obligation based on unilateral promise.

2007 Clara, thinking of her mortality, drafted a will and asked Yes, the will of Clara may be probated. THE THREE
Roberta, Hannah, Luisa and Benjamin to be witnesses. During the A thumbmark has been considered by the Supreme Court as a WITNESS RULE
day of the signing of her will, Clara fell down the stairs and broke valid signature if intended by the testator to be his signature.
both her arms. Coming from the hospital, Clara insisted on signing (Garcia v. La Cuesta, G.R. No. L-4067, November 29, 1951;
her will by thumb mark and said that she can sign her full name De Gala v. Gonzales, G.R. No. L-37756, November 28, 1933).
later. While the will was being signed, Roberta experienced a
stomach ache and kept going to the restroom for long periods of The three witness rule required for the validity of an ordinary
time. Hannah, while waiting for her turn to sign the will, was will is satisfied provided either of the two conditions exists:
reading the 7th Harry Potter book on the couch, beside the table on

107
 which everyone was signing. Benjamin, aside from witnessing the 1. Roberta could see Clara and the other witnesses sign the will
will, also offered to notarize it. A week after, Clara was run over by at any time while she was in the toilet, had she wanted to.
a drunk driver while crossing the street in Greenbelt. May the will
of Clara be admitted to probate? Give your reasons briefly. 2. If Roberta could not have seen Clara and the other witnesses
sign the will, the same is valid if the will was acknowledged
before a Notary Public other than Benjamin.

It is not necessary that the testator or the witnesses should

actually see the others subscribe their names to the instrument,
provided that he is position to see them sign if he chooses
(Nera v. Rimando, G.R. NO. 5971, February 27, 1911; Yap
Tua v. Yap Ka Kuan, G.R. No. L-6845, September 1, 1914).
Thus, the signing must be considered to be in the presence of
Hannah, who was reading a book on the couch beside the
table.

2007 Write "TRUE" if the statement is true or "FALSE" if the 1. TRUE PROPERTY
statement is false. If the statement is FALSE, state the reason. (2%
2. FALSE. Every act of sexual infidelity committed by
each).
the man is a ground for legal separation under Article 55(8) of
the Family Code (Tolentino, Civil Code, 1990 ed., 321) Hence,
1. Roberta, a Filipino, 17 years of age, without the knowledge of
the prescriptive period begins to run upon the commission of
his parents, can acquire a house in Australia because Australian
each act of infidelity.
Laws allow aliens to acquire property from the age of 16.
3. FALSE. Under Article 94(7) of the Family Code,

108
 2. If a man commits several acts of sexual infidelity, ante-nuptial debts of either spouse shall be considered as the
particularly in 2002, 2003, 2004, 2005, the prescriptive period to liability of the absolute community property insofar as they
file for legal separation runs from 2002. have redounded to the benefit of the family.

3. An individual, While single, purchases a house and lot in

1990 and borrows money in 1992 to repair it. In 1995, such
individual gets married while the debt is still being paid. After the Alternative Answer:
marriage, the debt is still the responsibility of such individual. TRUE

4. The day after John and Marsha got married, John told her 4. FALSE. Marsha is not estopped from filing an
that he was impotent. Marsha continued to live with John for 2 annulment case against John on the ground of impotency under
years. Marsha is now estopped from filing an annulment case Article 45(5) of the Family Code. Unlike the other grounds for
against John. annulment of voidable marriages which are subject to
ratification by continued cohabitation, the law does not allow
5. Amor gave birth to Thelma when she was 15 years old.
ratification under Article 45(5).
Thereafter, Amor met David and they got married when she was 20
years old. David had a son, Julian, with his ex-girlfriend Sandra. 5. TRUE.
Julian and Thelma can get married.

Alternative Answer:
FALSE. If the marriage was solemnized during the effectivity
of the New Civil Code, the marriage between stepbrother and
stepsister is void (Article 80[7]). However, under the Family
Code, this marriage may be valid. (Article 38, FC)

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2007 In 1986, Jennifer and Brad were madly in love. In 1989, Angie is not correct. The painting is not a property of PROPERTY
because a certain Picasso painting reminded Brad of her, Jennifer Brad which he can dispose by will. Even if the painting was
acquired it and placed it in his bedroom. In 1990, Brad and Jennifer bought while they were madly in love, there can be no valid
broke up. While Brad was mending his broken heart, he met Angie donation of such a valuable painting because it was not
and fell in love. Because the Picasso painting reminded Angie of reduced to writing as required by Article 748(3) of the New
him, Brad in his will bequeathed the painting to Angie. Brad died in Civil Code.
1995. Saddened by Brad’s death, Jennifer asked for the Picasso
painting as a remembrance of him. Angie refused and claimed that Therefore, this is a legacy of property not owned by the
Brad, in his will, bequeathed the painting to her. Is Angie correct? testator. If Brad knew that he did not own the painting, it may
Why or why not? be considered as an instruction to acquire the painting from
Angie. However, if he erroneously believed he owned the
painting, the legacy is void.

2007 Multiple choice: Choose the right answer. (2% each) 1. E OBLIGATIONS
1. The parties to a bailment are the: AND
2. C
CONTRACTS
a. bailor; 3. D

b. bailee; 4. C

5. B
c. comodatario;

d. all the above;

110
e. letters a and b;

2. A deposit made in compliance with a legal obligation is:

a. an extrajudicial deposit;

b. a voluntary deposit;

c. a necessary deposit;

d. a deposit with a warehouseman;

e. letters a and b;

3. A contract of antichresis is always:

a. a written contract;

b. a contract, with a stipulation that the debt will be paid through

receipt of the fruits of an immovable;

111
c. Involves the payment of interests, if owing;

d. All of the above;

e. Letters a and b;

4. An, assignee in a proceeding under the Insolvency Law

does not have the duty of:

a. suing to recover the properties of the state of the insolvent

debtor;

b. selling property of the insolvent debtor;

c. ensuring that a debtor corporation operate the business efficiently

and effectively while the proceedings are pending;

d. collecting and discharging debts owed to the insolvent debtor.;

5. In order to obtain approval of the proposed settlement of

the debtor in an insolvency proceeding.
a. the court must initiate the proposal

112
 b. 2/3 of the number of creditors should agree to the settlement;

c. 3/5 of the number of creditors should agree to the settlement;

d. 1/3 of the total debts must be represented by the approving

creditors;

e. Letters a and b

2007 For purposes of this question, assume all formalities and Lia and Michele are the only possible heirs of Ramon. SUCCESSION
procedural requirements have been complied with.In 1970, Ramon
and Dessa got married. Prior to their marriage, Ramon had a child, Lia succeeds by representation of Anna who, if she is an
Anna. In 1971 and 1972,Ramon and Dessa legally adopted Cherry illegitimate child of Ramon, may be represented by her
and Michelle,respectively. In 1973, Dessa died while giving birth to descendants. (Article 990, NCC). If Anna is a legitimate child,
Larry.Anna had a child, Lia. Anna never married. Cherry, on Lia may not inherit (Article 992, NCC)
the other hand, legally adopted Shelly. Larry had twins, Hans and
Gretel, with his girlfriend, Fiona. In 2005, Anna, Larry,and Cherry Michelle may inherit as an adopted child of Ramon, unless the
died in a car accident. In 2007, Ramon died.Who may inherit from word “respectively” means she was adopted only by Dessa. In
Ramon and who may not? Give your reasons briefly. the latter case, Michelle will not inherit from Ramon.

Shelly cannot inherit from Ramon. She cannot represent

Cherry in the inheritance of Ramon since filiation created by
adoption is exclusively between the adopter and the adopted.
The legal relationship does not extend to the children of the

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 adopted. (Rabuya, Law on Persons and Family Relations, 2006
ed., III Tolentino, Civil Code, 1992 ed., 448-449). Hans and
Gabriel, being illegitimate children of Larry, cannot inherit
from Ramon ab intestato because of the barrier between the
legitimate and the illegitimate. (Article 992, NCC)

Dessa, Ana , Larry and Cherry will not inherit from Ramon
because they predeceased Ramon. The law requires that one
must be alive to be capacitated to inherit. (Article 1025, NCC)

2008 At age 18, Marian found out that she was pregnant. She Yes, the baby can be the beneficiary of the life CAPACITY;
insured her own life and named her unborn child as her sole insurance of Marian. Art. 40 NCC provides that "birth JURIDICAL
beneficiary. When she was already due to give birth, she and her determines personality; but the conceived child shall be CAPACITY
boyfriend Pietro, the father of her unboarn child, were kidnapped in considered born for all purposes that are favorable to it,
a resort in Bataan where they were vacationing. The military gave provided that it be born later with the conditions specified in
chase and after one week, they were found in an abandoned hut in Art. 41. Article 41 states that "for civil purposes, the fetus shall
Cavite. Marian and Pietro were hacked with bolos. Marian and the be considered born if it is alive at the time it is completely
baby delivered were both found dead, with the baby's umbilical delivered from the mother's womb. However, if the fetus had
cord already cut. Pietro survived. an intra-uterine life of less than seven months, it is not deemed
born if it dies within twenty-four (24) hours after its complete
delivery from the maternal womb. The act of naming the

Can Marian's baby be the beneficiary of the insurance taken unborn child as sole beneficiary in the insurance is favorable to
on the life of the mother? the conceived child and therefore the fetus acquires
presumptive or provisional personality. However, said

114
 presumptive personality only becomes conclusive if the child
is born alive. The child need not survive for twentyfour (24)
hours as required under Art. 41 of the Code because "Marian
was already due to give birth," indicating that the child was
more than seven months old.

2008 Gianna was born to Andy and Aimee, who at the time A. Yes, a judicial action for correction of entries in CIVIL
Gianna's birth were not married to each other. While Andy was Gianna's birth certificate can be successfully maintained to REGISTER;
single at the time, Aimee was still in the process of securing a change (a) her status from "legitimate" to "illegitimate," and CORRECTION
judicial declaration of nullity on her marriage to her ex-husband. (b) her surname from that of Andy's to Aimee's maiden OF ENTRIES;
Gianna's birth certificate, which was signed by both Andy and surname in accordance with Rule 108 of the Rules of Court CLERICAL
Aimee, registered the status of Gianna as "legitimate", her surname because said changes are substantive corrections. ERROR ACT
carrying that of Andy's and that her parents were married to each
other.

B. No. An administrative proceeding cannot be brought

for the purpose of making the above corrections. R.A. 9048,
(A). Can a judicial action for correction of entries in otherwise known as the Clerical Error Act, which authorizes
Gianna's birth certificate be successfully maintained to: the city or municipal civil registrar or the consul general to
correct a clerical or typographical error in an entry and/or
change the first name or nickname in the civil register without

a). Change her status from "legitimate" to "illegitimate" need of a judicial order. Errors that involve the change of
(1%) b). Change her surname from that of Andy's to Aimee's nationality, age, status, surname or sex of petitioner are not
maiden surname? included from the coverage of the said Act (Silverio v.

115
 Republic, G.R. No. 174689, 22 Oct., 2007).

(B). Instead of a judicial action, can administrative

proceedings be brought for the purpose of making the above
corrections?

2008 Roderick and Faye were high school sweethearts. When No. The marriage of Roderick and Faye is not valid. MARRIAGE;
Roderick was 18 and Faye, 16 years old, they started to live Art. 4, FC provides that the absence of any of the essential or REQUISITES
together as husband and wife without the benefit of marriage. formal requisites renders the marriage void ab initio. However,
When Faye reached 18 years of age, her parents forcibly took her no license shall benecessary for the marriage of a man and a
back and arranged for her marriage to Brad. Although Faye lived woman who have lived together as husband and wife for at
with Brad after the marriage, Roderick continued to regularly visit least 5 years and without any legal impediment to marry each
Faye while Brad was away at work. During their marriage, Faye other. In Republic v. Dayot, G.R. No. 175581, 28 March 2008,
gave birth to a baby girl, Laica. When Faye was 25 years old, Brad reiterating the doctrine in Niñal v. Bayadog, G.R. No. 133778,
discovered her continued liason with Roderick and in one of their 14 March 2000, this five-year period is characterized by
heated arguments, Faye shot Brad to death. She lost no time in exclusivity and continuity. In the present case, the marriage of
marrying her true love Roderick, without a marriage license, Roderick and Faye cannot be considered as a marriage of
claiming that they have been continuously cohabiting for more than exceptional character, because there were 2 legal impediments
5 years. during their cohabitation: minority on the part of Faye, during
the first two years of cohabitation; and, lack of legal capacity,
since Faye married Brad at the age of 18. The absence of a

Was the marriage of Roderick and Faye valid? marriage license made the marriage of Faye and Roderick void
ab initio.

116
2008 Despite several relationships with different women, Andrew Yes. Jon and Jane can marry each other; Jon is an MARRIAGE;
remained unmarried. His first relationship with Brenda produced a illegitimate child of Andrewwhile Jane is a child of Elena from VOID
daughter, Amy, now 30 years old. His second, with Carla, produced a previous relationship. Thus, their marriage is not one of the MARRIAGES; BY
two sons: Jon and Ryan. His third, with Donna, bore him no prohibited marriages enumerated under Art. 38 of the FC. REASON PUBLIC
children although Elena has a daughter Jane, from a previous POLICY
relationship. His last, with Fe, produced no biological children but
they informally adopted without court proceedings, Sandy's now 13
years old, whom they consider as their own. Sandy was orphaned
as a baby and was entrusted to them by the midwife who attended
to Sandy's birth. All the children, including Amy, now live with
andrew in his house.

Can Jon and Jane legally marry?

2008 Ana Rivera had a husband, a Filipino citizen like her, who No. The marriage is not valid. Art. 41 FC allows the MARRIAGE,
was among the passengers on board a commercial jet plane which present spouse to contract a subsequent marriage during the SUBSEQUENT
crashed in the Atlantic Ocean ten (10) years earlier and had never subsistence of his previous marriage provided that: (a) his prior MARRIAGE
been heard of ever since. Believing that her husband had died, Ana spouse in the first marriage had been absent for four
married Adolf Cruz Staedtler, a divorced German national born of a consecutive years; (b) that the spouse present has a well-
German father and a Filipino mother residing in Stuttgart. To avoid founded belief that the absent spouse was already dead, and (c)
being required to submit the required certificate of capacity to present spouse instituted a summary proceeding for the
marry from the German Embassy in Manila, Adolf stated in the declaration of the presumptive death of absent spouse.

117
 application for marriage license that he was a Filipino citizen. With Otherwise, the second marriage shall be null and void. In the
the marriage license stating that Adolf was a Filipino, the couple instant case, the husband of Ana was among the passengers on
got married in a ceremony officiated by the Parish Priest of board a commercial jet plane which crashed in the Atlantic
Calamba, Laguna in a beach in Nasugbu, Batangas, as the local Ocean. The body of the deceased husband was not recovered
parish priest refused to solemnize marriages except in his church. Is to confirm his death. Thus, following Art. 41, Ana should have
the marriage valid? Explain fully. first secured a judicial declaration of his presumptive death
before she married Adolf. The absence of the said judicial
declaration incapacitated Ana from contracting her second
marriage, making it void ab initio.

2008 Roderick and Faye were high school sweethearts When B. Laica is legitimate because children conceived or PATERNITY &
Roderick was 18 and Faye, 16 years old, they started to live born during the marriage of the parents are presumed to be FILIATION;
together as husband and wife without the benefit of marriage. legitimate (Art. 164, FC). LEGITIMACY;
When Faye reached 18 years of age, her parents forcibly took her PRESUMPTION
back and arranged for her marriage to Brad. Although Faye lived
with Brad after the marriage, Roderick continued to regularly visit C. No. Laica cannot bring an action to impugn her own
Faye while Brad was away at work. During their marriage, Faye status. In Liyao Jr. v. Tanhoti-Liyao, G.R. No. 138961,
gave birth to a baby girl, Laica. When Faye was 25 years old, Brad 07March 2002, the Supreme Court ruled that impugning the
discovered her continued liason with Roderick and in one of their legitimacy of the child is a strictly personal right of husband,
heated arguments, Faye shot Brad to death. She lost no time in except: (a) when the husband died before the expiration of the
marrying her true love Roderick, without a marriage license, period fixed for bringing the action; (b) if he should die after
claiming that they have been continuosly cohabiting for more than the filing of the complaint, without having desisted therefrom,
5 years. or (c) if the child was born after the death of the husband.

118
 Laica's case does not fall under any of the exceptions.

(B). What is the filiation status of Laica?

(C). Can Laica bring an action to impugn her own status on D. No. Laica cannot be legitimated by the marriage of
the ground that based on DNA results, Roderick is her biological her biological parents because only children conceived and
father? born outside of wedlock of parents who at the time of the
conception of the former were not disqualified by any
(D). Can Laica be legitimated by the marriage of her
impediment to marry each other may be legitimated (Art. 177,
biological parents?
FC).

2008 Gianna was born to Andy and Aimee, who at the time Gianna cannot be legitimated by the subsequent PATERNITY &
Gianna's birth were not married to each other. While Andy was marriage of Andy and Aimee. Art. 177 of the FC provides that FILIATION;
single at the time, Aimee was still in the process of securing a "only children conceived and born outside of wedlock of LEGITIMATION
judicial declaration of nullity on her marriage to her ex-husband. parents who, at the time of the conception of the former, were OF A CHILD
Gianna's birth certificate, which was signed by both Andy and not disqualified by any impediment to marry each other may FROM A
Aimee, registered the status of Gianna as "legitimate", her surname be legitimated." In the present case, a legal impediment was PREVIOUS
carrying that of Andy's and that her parents were married to each existing at the time of the conception of Gianna. Her mother, VALID
other. Aimee, was still alive in the process of securing judicial MARRIAGE
declaration of nullity on her marriage to her ex-husband.

Assuming that Aimee is successful in declaring her former

marriage void, and Andy and Aimee subsequently married each
other, would Gianna be legitimated?

119
2008 Despite several relationships with different women, Andrew B. Andrew, in his old age, cannot be legally entitled to PATERNITY &
remained unmarried. His first relationship with Brenda produced a claim support because Art. 195, par 2 of the FC limits the FILIATION;
daughter, Amy, now 30 years old. His second, with Carla, produced giving of support to "legitimate ascendants and descendants." SUPPORT;
two sons: Jon and Ryan. His third, with Donna, bore him no ASCENDANTS &
children although Elena has a daughter Jane, from a previous DESCENDANTS;
relationship. His last, with Fe, produced no biological children but C. Amy, Jon, Ryan, Vina, Wilma and Sandy cannot COLLATERAL
they informally adopted without court proceedings, Sandy's now 13 legally claim support from each other because Art. 195, par 5 BLOOD
years old, whom they consider as their own. Sandy was orphaned limits the giving of support to "legitimate brothers and sisters, RELATIVES
as a baby and was entrusted to them by the midwife who attended whether full or half blood."
to Sandy's birth. All the children, including Amy, now live with
andrew in his house.

(B). In his old age, can Andrew be legally entitled to claim

support from Amy, Jon, Ryan, Vina, Wilma, and Sandy assuming
that all of them have the means to support him?

(C). Can Amy, Jon, Ryan, Vina, Wilma, and Sandy legally
claim support from each other?

2008 Despite several relationships with different women, Andrew Yes, there is a legal obstacle to the legal adoption of ADOPTION;
remained unmarried. His first relationship with Brenda produced a Amy by Andrew. Under Sec. 9(d) of RA 8552, the New CONSENT OF

120
 daughter, Amy, now 30 years old. His second, with Carla, produced Domestic Adoption Act of 1998, the written consent of the THE ADOPTER’S
two sons: Jon and Ryan. His third, with Donna, bore him no illegitimate sons/daughters, ten (10) years of age or over, of HEIRS
children although Elena has a daughter Jane, from a previous the adopter, if living with said adopter and the latter's spouse,
relationship. His last, with Fe, produced no biological children but if any, is necessary to the adoption. All the children of Andrew
they informally adopted without court proceedings, Sandy's now 13 are living with him. Andrew needs to get the written consent of
years old, whom they consider as their own. Sandy was orphaned Jon, Ryan, Vina and Wilma, who are all ten (10) years old or
as a baby and was entrusted to them by the midwife who attended more. Sandy's consent to Amy's adoption is not necessary
to Sandy's birth. All the children, including Amy, now live with because she was not legally adopted by Andrew. Jane's consent
andrew in his house. is likewise not necessary because she is not a child of Andrew.
Sandy, an orphan since birth, is eligible for adoption under
Sec. 8(f) of RA 8552, provided that Andrew obtains the

Is there any legal obstacle to the legal adoption of Amy by written consent of the other children mentioned above,
Andrew? To the legal adoption of Sandy by Andrew and Elena? including Amy and Elena obtains the written consent of Jane,
if she is over ten years old (Sec. 9(d), RA 8552).

2008 Raymond, single, named his sister Ruffa in his will as a A. Yes, the condition imposed upon Ruffa to preserve HEIRS;
devisee of a parcel of land which he owned. The will imposed upon the property and to transmit it upon her death to Scarlet is valid FIDEICOMMISSA
Ruffa the obligation of preseving the land and transferring it, upon because it is tantamount to fideicommissary substitution under RY
her death, to her illegitimate daughter Scarlet who was then only Art. 863 of the Civil Code. SUBSTITUTION
one year old. Raymond later died, leaving behind his widowed
mother, Ruffa and Scarlet.

B. Ruffa will inherit the property as Scarlet's heir.

Scarlet acquires a right to the succession from the time of
(A). Is the condition imposed upon Ruffa, to preserve the Raymond's death, even though she should predecease Ruffa

121
 property and to transmit it upon her death to Scarlet, valid? (Art. 866, Civil Code).

(B). If Scarlet predeceases Ruffa, who inherits the property? C. If Ruffa predeceases Raymond, Raymond's
widowed mother will be entitled to the inheritance. Scarlet, an
illegitimate child, cannot inherit the property by intestate

(C). If Ruffa predeceases Raymond, can Scarlet inherit the succession from Raymond who is a legitimate relative of Ruffa
property directly from Raymond? (Art. 992, Civil Code). Moreover, Scarlet is not a compulsory
heir of Raymond, hence she can inherit only by testamentary
succession. Since Raymond executed a will in the case at bar,
Scarlet.

2008 Ernesto, an overseas Filipino worker, was coming home to The mother and twin sons are entitled to inherit from LEGITIME;
the Philippines after working for so many years in the Middle East. Ernesto. Art. 991 of the Civil Code, provides that if legitimate COMPULSORY
He had saved P100.000 in his saving account in Manila which ascendants are left, the twin sons shall divide the inheritance HEIRS
intended to use to start a business in his home country. On his flight with them taking one-half of the estate. Thus, the widowed
home, Ernesto had a fatal heart attack. He left behind his widowed mother gets P50,000.00 while the twin sons shall receive
mother, his common-law wife and their twins sons. He left no will, P25,000.00 each. The common law wife cannot inherit from
no debts, no other relatives and no other properties except the him because when the law speaks "widow or widower" as a
money in his saving account. Who are the heirs entitled to inherit compulsory heir, the law refers to a legitimate spouse (Art.
from him and how much should each receive? 887, par 3, Civil Code).

2008 Stevie was born blind. He went to school for the blind, and A. Assuming that he is of legal age (Art. 797, Civil WILLS;
learned to read in Baille Language. He Speaks English fluently. Code) and of sound mind at the time of execution of the will NOTARIAL

122
 Can he: (Art. 798, Civil Code), Stevie, a blind person, WILLS; BLIND
TESTATOR;
Can make a notarial will, subject to compliance with
REQUISITES
the "two-reading rule" (Art. 808, Civil Code) and the
(A). Make a will?
provisions of Arts. 804, 805 and 806 of the Civil Code.

(B). Act as a witness to a will?

B. Stevie cannot be a witness to a will. Art. 820 of the
Civil Code provides that "any person of sound mind and of the
age of eighteen years or more, and not blind, deaf or dumb,
(C). In either of the above instances, must the will be read to and able to read and write, may be a witness to the execution
him? of a will.

C. If Stevie makes a will, the will must be read to him

twice, once by one of the subscribing witnesses, and again, by
the notary public before whom the will is acknowledged (Art.
808, Civil Code).

2008 John and Paula, British citizens at birth, acquired Philippine A. No. The will cannot be admitted to probate because WILLS; JOINT
citizenship by naturalization after their marriage. During their a joint will is expressly prohibited under Art. 818 of the Civil WILLS
marriage the couple acquired substantial landholdings in London Code. This provision applies John and Paula became Filipino
and in Makati. Paula bore John three children, Peter, Paul and citizens after their marriage.
Mary. In one of their trips to London, the couple executed a joint

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 will appointing each other as their heirs and providing that upon the
death of the survivor between them the entire estate would go to
B. No. The testamentary dispositions are not valid
Peter and Paul only but the two could not dispose of nor divide the
because (a) omission of Mary, a legitimate child, is tantamount
London estate as long as they live. John and Paul died tragically in
to preterition which shall annul the institution of Peter and
the London Subway terrorist attack in 2005. Peter and Paul filed a
Paul as heirs (Art. 854, Civil Code); and, (b) the disposition
petition for probate of their parent's will before a Makati Regional
that Peter and Paul could not dispose of nor divide the London
Trial Court.
estate for more than 20 years is void (Art. 870, Civil Code).

(A). Should the will be admitted to probate?

(B). Are the testamentary dispositions valid?

2008 John and Paula, British citizens at birth, acquired Philippine No. the testamentary prohibition against the division of WILLS;
citizenship by naturalization after their marriage. During their the London estate is void (Art. 870, Civil Code). A testator, PROHIBITION
marriage the couple acquired substantial landholdings in London however, may prohibit partition for a period which shall not TO PARTITION
and in Makati. Paula bore John three children, Peter, Paul and exceed twenty (20) years (Art. 870 in relation to Art. 494, par
Mary. In one of their trips to London, the couple executed a joint 3, Civil Code).
will appointing each other as their heirs and providing that upon the
death of the survivor between them the entire estate would go to
Peter and Paul only but the two could not dispose of nor divide the
London estate as long as they live. John and Paul died tragically in
the London Subway terrorist attack in 2005. Peter and Paul filed a

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 petition for probate of their parent's will before a Makati Regional
Trial Court.

Is the testamentary prohibition against the division of the

London estate valid?

2008 Arthur executed a will which contained only: (i) a provision A. Erica cannot be preterited. Art. 854 of the Civil PRETERITION;
disinheriting his daughter Bernica for running off with a married Code provides that only compulsory heirs in the direct line can DISINHERITANC
man, and (ii) a provision disposing of his share in the family house be preterited. E
and lot in favor of his other children Connie and Dora. He did not
make any provisions in favor of his wife Erica, because as the will
stated, she would anyway get ½ of the house and lot as her conjugal B. The other defects of the will that can cause its denial
share. The will was very brief and straightforward and both the are as follows: (a) Atty. Zorba, the one who prepared the will
above provisions were contained in page 1, which Arthur and his was one of the three witnesses, violating the three-witnesses
instrumental witness, signed at the bottom. Page 2 contained the rule; (b) no marginal signature at the last page; (c ) the
attestation clause and the signatures, at the bottom thereof, of the 3 attestation did not state the number of pages upon which the
instrumental witnesses which included Lambert, the driver of will is written; and, (d) no pagination appearing correlatively
Arthur; Yoly, the family cook, and Attorney Zorba, the lawyer who in letters on the upper part of the three pages (Azuela v. C.A.,
prepared the will. There was a 3rd page, but this only contained the G.R.No. 122880, 12 Apr 2006 and cited cases therein, Art 805
notarial acknowledgement. and 806, Civil Code).

The attestation clause stated the will was signed on the same C. Yes, the disinheritance was valid. Art. 919, par 7,
125
 occasion by Arthur and his instrumental witnesses who all signed in Civil Code provides that "when a child or descendant leads a
the presence of each other, and the notary public who notarized the dishonorable or disgraceful life, like running off with a
will. There are no marginal signatures or pagination appearing on married man, there is sufficient cause for disinheritance."
any of the 3 pages. Upon his death, it was discovered that apart
from the house and lot, he had a P 1 million account deposited with
ABC bank.

(A). Was Erica preterited?

(B). What other defects of the will, if any, can cause denial
of probate?

(C). Was the disinheritance valid?

2008 Ramon Mayaman died intestate, leaving a net estate of A. Having died intestate, the estate of Ramon shall be INTESTATE
P10,000,000.00. Determine how much each heir will receive from inherited by his wife and his full and half blood siblings or SUCCESSION
the estate: their respective representatives. In intestacy, if the wife
concurs with no one but the siblings of the husband, all of
them are the intestate heirs of the deceased husband. The wife
(A). If Ramon is survived by his wife, three full-blood will receive half of the intestate estate, while the siblings or
their respective representatives, will inherit the other half to be
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brothers, two half-brothers, and one nephew (the son of a deceased divided among them equally. If some siblings are of the
full-blood brother)? Explain. fullblood and the other of the half blood, a half blood sibling
will receive half the share of a full-blood sibling.

(B). If Ramon is survived by his wife, a half-sister, and

three nephews (sons of a deceased full-blood brother)? Explain. (1). The wife of Ramon will, therefore, receive one half
(½) of the estate or the amount of P5,000,000.00. (2). The
three (3) full-blood brothers, will, therefore, receive
P1,000,000.00 each. (3). The nephew will receive
P1,000,000.00 by right of representation. (4). The two (2) half-
brothers will receive P500,000.00 each.

B. The wife will receive one half (1/2) of the estate or

P5,000,000.00. The other half shall be inherited by (1) the full-
blood brother, represented by his three children, and (2) the
half-sister. They will divide the other half between them such
that the share of the half-sister is just half the share of the full-
blood brother. The share of the full-blood brother shall in turn
be inherited by the three nephews in equal shares by right of
presentation.

Therefore, the three (3) nephews will receive

127
 P1,111,111.10 each the half-sister will receive the sum of
P1,666,666.60.

2008 Arthur executed a will which contained only: (i) a provision Since the probate of the will cannot be allowed, the INTESTATE
disinheriting his daughter Bernica for running off with a married rules on intestate succession apply. Under Art. 996 of the Civil SUCCESSION
man, and (ii) a provision disposing of his share in the family house Code, if a widow or widower and legitimate children or
and lot in favor of his other children Connie and Dora. He did not descendants are left, the surviving spouse has the same share
make any provisions in favor of his wife Erica, because as the will as of the children. Thus, ownership over the house and lot will
stated, she would anyway get ½ of the house and lot as her conjugal be created among wife Erica and her children Bernice, Connie
share. The will was very brief and straightforward and both the and Dora. Similarly, the amount of P 1 million will be equally
above provisions were contained in page 1, which Arthur and his divided among them.
instrumental witness, signed at the bottom. Page 2 contained the
attestation clause and the signatures, at the bottom thereof, of the 3
instrumental witnesses which included Lambert, the driver of
Arthur; Yoly, the family cook, and Attorney Zorba, the lawyer who
prepared the will. There was a 3rd page, but this only contained the
notarial acknowledgement. The attestation clause stated the will
was signed on the same occasion by Arthur and his instrumental
witnesses who all signed in the presence of each other, and the
notary public who notarized the will. There are no marginal
signatures or pagination appearing on any of the 3 pages. Upon his
death, it was discovered that apart from the house and lot, he had a
P 1 million account deposited with ABC bank.

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 How should the house and lot, and the cash be distributed?

2008 At age 18, Marian found out that she was pregnant. She A. Marian is presumed to have died ahead of the baby. SUCCESSION;
insured her own life and named her unborn child as her sole Art. 43 applies to persons who are called to succeed each RULE OF
beneficiary. When she was already due to give birth, she and her other. The proof of death must be established by positive or SURVIVORSHIP
boyfriend Pietro, the father of her unboarn child, were kidnapped in circumstantial evidence derived from facts. It can never be
a resort in Bataan where they were vacationing. The military gave established from mere inference. In the present case, it is very
chase and after one week, they were found in an abandoned hut in clear that only Marian and Pietro were hacked with bolos.
Cavite. Marian and Pietro were hacked with bolos. Marian and the There was no showing that the baby was also hacked to death.
baby delivered were both found dead, with the baby's umbilical The baby's death could have been due to lack of nutrition.
cord already cut. Pietro survived.

ALTERNATIVE ANSWER: The baby is presumed to

(B). Between Marian and the baby, who is presumed to have died ahead of Marian. Under Par. 5, rule 131, Sec. 5 (KK)
have died ahead? of the Rules of Court, if one is under 15 or above 60 and the
age of the other is in between 15 and 60, the latter is presumed
to have survived. In the instant case, Marian was already 18

(C). Will Pietro, as surviving biological father of the baby, when she found out that she was pregnant. She could be of the
be entitled to claim the proceeds of the life insurance on the life of same age or maybe 19 years of age when she gave birth.
Marian?

C. Pietro, as the biological father of the baby, shall be

129
 entitled to claim the proceeds of life insurance of the Marian
because he is a compulsory heir of his child.

2008 The properties of Jessica and Jenny, who are neighbors, lie A. Only Jenny can claim ownership over the additional ACCRETION;
along the banks of the Marikina River. At certain times of the year, one meter of land deposited along her property. Art. 457 of the ALLUVIUM
the river would swell and as the water recedes, soil, rocks and other Civil Code provides that "to the owners of lands adjoining the
materials are deposited on Jessica's and Jenny's properties. This banks of river belong the accretion which they gradually
pattern of the river swelling, receding and depositing soil and other receive from the effects of the current of the water." Where the
materials being deposited on the neighbors' properties have gone on land is not formed solely by the natural effect of the water
for many years. Knowing his pattern, Jessica constructed a concrete current of the river bordering land but is also the consequences
barrier about 2 meters from her property line and extending towards of the direct and deliberate intervention of man, it is man-made
the river, so that when the water recedes, soil and other materials accretion and a part of the public domain (Tiongco v. Director
are trapped within this barrier. After several years, the area between of Lands, 16 C.A. Rep 211, cited in Nazareno v. C.A., G.R.
Jessica's property line to the concrete barrier was completely filled No. 98045, 26 June 1996). Thus, Jessica cannot legally claim
with soil, effectively increasing Jessica's property by 2 meters. ownership of the additional 2 meters of land along her property
Jenny's property, where no barrier was constructed, also increased because she constructed a concrete barrier about 2 meters from
by one meter along the side of the river. her property causing deposits of soil and other materials when
the water recedes. In other words, the increase in her property
was not caused by nature but was man-made.

(A). Can Jessica and Jenny legally claim ownership over the
additional 2 meters and one meter, respectively, of land deposited
along their properties? B. If the properties of Jessica and Jenny are registered,
the benefit of such registration does not extend to the increased
area of their properties. Accretion does not automatically

130
 (B). If Jessica's and Jenny's properties are registered, will become registered land because there is a specific technical
the benefit of such registration extend to the increased area of their description of the lot in its Torrens title. There must be a
properties? separate application for registration of the alluvial deposits
under the Torrens System (Grande v. CA, G.R. No. L-17652,
30 June, 1962)

(C). Assume the two properties are on a cliff adjoining the

shore of Laguna Lake. Jessica and Jenny had a hotel built on the
properties. They had the erath and rocks excavated from the C. No. Jessica and Jenny cannot validly lay claim to the
properties dumped on the adjoining shore, giving rise to a new patch of land because in order to acquire land by accretion,
patch of dry land. Can they validly lay claim to the patch of land? there should be a natural and actual continuity of the accretion
to the land of the riparian owner caused by natural ebb and
flow of the current of the river (Delgado v. Samonte, CA-G.R.
No. 34979-R, 10 Aug 1966).

2008 Alex died without a will, leaving only an undeveloped and A. Yes, Cathy can lawfully ask for the demolition of CO-OWNERSHIP;
untitled lot in Tagiug City. He is survived by his wife and 4 Bobby's house. Where there are two or more heirs, the whole ALTERATION OF
children. His wife told the children that she is waiving her share in estate of the decedent, is, before partition, owned in common PROPERTY;
the property, and allowed Bobby, the eldest son who was about to by such heirs, subject to the payment of debts of the deceased REMEDY OF CO-
get married, to construct his house on ¼ of the lot, without however (Art. 1078, Civil Code), Under the rules on co-ownership, OWNERS
obtaining the consent of his siblings. After settlement of Alex's "none of the co-owners shall, without the consent of the others
estate and partition among the heirs, it was discovered that Bobby's make alterations in the thing owned in common, even though
house was constructed on the portion allocated to his sister, Cathy benefits for all would results therefrom." In Cruz v. Catapang,
asked Bobby to demolish his house and vacate the portion alloted G.R. No. 164110, 12 Feb., 2008, the Court held that
to her. In leiu of demolition, Bobby offered to purchase from Cathy "alterations include any act of strict dominion or ownership

131
 the lot portion on which his house was constructed. At that time, such as construction of a house." In the present case, of Alex is
the house constructed was valued at P350.000. the real owner of the undeveloped and untitled lot in Taguig,
co-ownership is created among his wife and four children over
said property upon his death. Since the construction of the

(A). Can Cathy lawfully ask for demolition of Bobby's house by Bobby was done without obtaining the consent of his
house? siblings, the alteration effected is illegal. Bobby is considered
to be in bad faith and as a sanction for his conduct, he can be
compelled by Cathy to demolish or remove the structure at his
own expense.
(B). Can Bobby legally insist on purchasing the land?

B. No. Bobby cannot legally insist on purchasing the

land. Being in bad faith, he has no option to pay for the price
of the lot (Art. 450, Civil Code)

2008 Adam, a building contractor, was engaged by Blas to A. The notes and coins are no longer owned by the HIDDEN
construct a house on a lot which he (Blas) owns. While digging on Bank of the Philippine Islands, which has either lost or TREASURE
the lot in order to lay down the foudation of the house, Adam hit a abandoned the vault and its contents, and it has not taken any
very hard object. It turned out to be the vault of the old Banco de effort to search, locate or recover the vault. In any case, since
las Islas Filipinas. Using a detonation device, Adam was able to the vault is in actual possession of Adam, BPI may attempt, in
open the vault containing old notes and coins which were in a judicial action to recover, to rebut the presumption of
circulation during the Spanish era. While the notes and coins are no ownership in favor of Adam and Blas (Art. 433, Civil Code).
longer legal tender, they were valued at P100 million because of Hidden treasure is any hidden and unknown deposit of money,
their historical value and the coins silver nickel content. The jewelry, or other precious objects, the lawful ownership of

132
 following filed legal claims over the notes and coins: which does not appear. Given the age and importance of the
items found, it would be safe to consider the vault, notes and
coins abandoned by BPI and its predecessor (Art. 439, Civil

(i). Adam, as finder; (ii). Blas, as owner of the property Code). It belongs to the owner of the land on which it is found.
where they were found; (iii). Bank of the Philippine Islands, as When the discovery is made on the property of another, or of
successor-ininterest of the owner of the vault; and (iv). The the State and by chance, one-half of it shall belong to the
Philippine Government because of their historical value. finder who is not a trespasser (Art. 438, Civil Code). In
thepresent case, Adam, as finder, and Blas, as owner of the
land, are entitled to share 5050 in the treasure. The government
can only claim if it can establish that the notes and coins are of
(A). Who owns the notes and coins?
interest to science or the arts, then it must pay just price of the
things found, to be divided equally between Adam and Blas
(Art. 438, Civil Code).
(B). Assuming that either or both Adam and Blas are
adjudged as owners, will the notes and coins be deemed part of
their absolute community or conjugal partnership of gains with
B. If either or both Adam and Blas are adjudged as
their respective spouses?
owners, the notes and coins shall be deemed part of their
absolute community or conjugal partnership of gains with their
respective spouses (Art. 117, par 4, FC).

2008 Juliet offered to sell her house and lot, together with all the A. Yes, Dehlma is a purchaser in good faith. In the INNOCENT
furniture and appliances therein to Dehlma. Before agreeing to present case, before Dehlma bought the property, she went to PURCHASER
purchase the property, Dehlma went to the Register of Deeds to the Register of Deeds to verify Juliet's title. When she FOR VALUE
verify Juliet's title. She discovered that while the property was discovered that the property was mortgaged to Elaine, she gave

133
registered in Juliet's name under the Land Registration Act, as an advance payment so that Juliet could release the mortgage.
amended by the Property Registration Decree, it property, Dehlma It was only after the mortgage was released and free from the
told Juliet to redeem the property from Elaine, and gave her an claims of other persons that Dehlma bought the property. Thus,
advance payment to be used for purposes of realesing the mortgage Dehlma is a purchaser in good faith (Mathay v. CA, G.R. No.
on the property. When the mortgage was released, Juliet executed a 115788, 17 Sept, 1998).
Deed of Absolute Sale over the property which was duly registered
with the Registry of Deeds, and a new TCT was issued in Dehlma's
name. Dehlma immediately took possession over the house and lot B. Between Dehlma and XYZ Bank, Dehlma has a
and the movables therein. Thereafter, Dehlma went to the better right to the house and lot. After the release of the
Assessor's Office to get a new tax declaration under her name. She mortgage, the Deed of Absolute Sale was registered and a new
was surprised to find out that the property was already declared for title was issued in Dehlma's name. Act 3344 is applicable
tax purposes in the name of XYZ Bank which had foreclosed the exclusively to instruments resulting from agreement of parties
mortgage on the property before it was sold to her. XYZ Bank was thereto and does not apply to deeds of a sheriff conveying to
also the purchaser in the foreclosure sale of the property. At that apurchaser unregistered lands sold to him under execution
time, the property was still unregistered but XYZ Bank registered (Williams v. Suñer, 49 Phil. ,534).
the Sheriff's Deed of Conveyance in the day book of the Register of
Deeds under Act. 3344 and obtained a tax declaration in its name.

C. Dehlma owns the movables because when she

acquired the house and lot from Juliet, all the furniture and
(A). Was Dehlma a purchaser in good faith? appliances therein were included in the sale. As owner of the
real property, Dehlma also owns the movables found therein
(Art. 542, Civil Code).
(B). Who as between Dehlma and XYZ Bank has a better

134
 right to the house and lot?

(C). Who owns the movables inside the house?

2008 Anthony bought a piece of untitled agricultural land from A. Yes, Anthony can acquire ownership of the property ACQUISITIVE
Bert. Bert, in turn, acquired the property by forging carlo's through acquisitive prescription. In the present case, Anthony PRESCRIPTION
signature in a deed of sale over the property. Carlo had been in is a buyer/possessor in goodfaith because he was not aware of
possession of the property for 8 years, declared it for tax purposes, the defect in Bert's title (Art. 526, Civil Code). As such,
and religiously paid all taxes due on the property. Anthony is not Anthony can acquire ownership and other real rights over
aware of the defect in Bert's title, but has been in actual physical immovable property through open, continuous possession of
possession of the property from the time he bought it from Bert, 10 years (Art. 1134, Civil Code). Anthony needs nine (9) more
who had never been in possession of the property for one year. years of possession, in addition to his one (1) year of
possession in good faith.

(A). Can Anthony acquire ownership of the property by

acquisitive prescription? How many more years does he have B. If Carlo is able to legally recover his property, he
possess it to acquire ownership? cannot require Anthony to account for all the fruits harvested
from the property. Anthony is entitled to the fruits harvested in
good faith before his possession was legally interrupted (Art.

(B).If Carlo is able to legally recover his property, can he 544, Civil Code).
require Anthony to account for all the fruits he has harvested from
the property while in possession?
C. Yes, Carlos can appropriate only a portion of the
135
 standing crops on the property once he recovers possession.
Anthony being a possessor in good faith, shall have a right to a
(C).If there are standing crops on the property when Carlo
part of the expenses of cultivation, and to a part of the net
recovers possession, can Carlo appropriate them?
harvest of the standing crops, both in proportion to the time of
the possession (Art 545, Civil Code).

2008 Felipe borrowed $100 from Gustavo in 1998, when the Phil A. No. Gustavo previously accepted a check as OBLIGATIONS;
P - US$ exchange rate was P56 - US$1. On March 1, 2008, Felipe payment. It was his fault why the check became stale. He is EXTINGUISHME
tendered to Gustavo a cashier's check in the amount of P4,135 in now estopped from raising the issue that a cashier's check is NT; PAYMENT;
payment of his US$ 100 debt, based on the Phil P - US$ exchange not legal tender. PAYMENT BY
rat at that time. Gustavo accepted the check, but forgot to deposit it CHECK; LEGAL
until Sept. 12, 2008. His bank refused to accepted the check TENDER
because it had become stale. Gustavo now wants Felipe to pay him B. Yes, Felipe can refuse to pay Gustavo, who allowed
in cash the amount of P5,600. Claiming that the previous payment the check to become stale. Although a check is not legal tender
was not in legal tender, and that there has been extraordinary (Belisario v. Natividad. 60 Phil 156), there are instances when
deflation since 1998, and therefore, Felipe should pay him the value a check produces the effects of payment, for example: (a)
of the debt at the time it was incurred. Felipe refused to pay him when the creditor is in estoppel or he had previously promised
again, claiming that Gustavo is estopped from raising the issue of he would accept a check (Paras, Civil Code Annotated, Vol IV,
legal tender, having accepted the check in March, and that it was 2000 ed., p. 394); (b) when the check has lost its value because
Gustavo's negligence in not depositing the check immediately that of the fault of the creditor (Art. 1249, 2nd par.),as when he was
caused the check to become stale. unreasonably delayed in presenting the check for payment
(PNB v. Seeto, G.R. No, L-4388, 13 August 1952).

(A). Can Gustavo now raised the issue that the cashier's

136
 check is not legal tender? C. Felipe cannot compel Gustavo to receive US$100
because under RA 529, payment of loans should be at
Philippine currency at the rate of exchange prevailing at the

(B). Can Felipe validly refuse to pay Gustavo again? time of the stipulated date of payment. Felipe could only
compel Gustavo to receive US$ 100 if they stipulated that
obligation be paid in foreign currency (R.A. 4100).

(C). Can Felipe compel Gustavo to receive US$100 instead?

2008 Eduardo was granted a loan by XYZ Bank for the purpose Yes, XYZ Bank can validly assert legal compensation. OBLIGATIONS;
of improving a building which XYZ leased from him. Eduardo, In the present case, all of the elements of legal compensation EXTINGUISHME
executed the promissory note ("PN") in favor of the bank, with his are present: (1) XYZ Bank is the creditor of Eduardo while NT;
friend Recardo as cosignatory. In the PN, they both acknowledged Eduardo is the lessor of XYZ Bank; (2) both debts consist in a COMPENSATION
that they are "individually and collectively" liable and waived the sum of money, or if the things due are consumable, they be of
need for prior demand. To secure the PN, Recardo executed a real the same kind, and also of the same quality if the latter has
estate mortgage on his own property. When Eduardo defaulted on been stated; (3) the two debts be due; (4) they be liquidated
the PN, XYZ stopped payment of rentals on the building on the and demandable, and (5) over neither of them there be any
ground that legal compensation had set in. Since there was still a retention or controversy, commenced by third persons and
balance due on the PN after applying the rentals, XYZ foreclosed communicated in due time to the debtor (Art. 1279, Civil
the real estate mortgage over Recardo's property. Recardo opposed Code).
the foreclosure on the ground that he is only a co-signatory; that no
demand was made upon him for payment, and assuming he is
liable, his liability should not go beyond half the balance of the
loan. Further, Recardo said that when the bank invoked
compensation between the reantals and the amount of the loan, it

137
 amounted to a new contract or novation, and had the effect of
extinguishing the security since he did not give his consent (as
owner of the property under the real estate mortgage) thereto.

Can XYZ Bank validly assert legal compensation?

2008 Eduardo was granted a loan by XYZ Bank for the purpose No. Recardo has no basis for claiming novation of the OBLIGATIONS;
of improving a building which XYZ leased from him. Eduardo, original contract when the bank invoked compensation because EXTINGUISHME
executed the promissory note ("PN") in favor of the bank, with his there was simply partial compensation (Art. 1290, Civil Code) NT; NOVATION
friend Recardo as cosignatory. In the PN, they both acknowledged and this would not bar the bank from recovering the remaining
that they are "individually and collectively" liable and waived the balance of the obligation. ALTERNATIVE ANSWER: No. In
need for prior demand. To secure the PN, Recardo executed a real order that an obligation may be extinguished by another, it is
estate mortgage on his own property. When Eduardo defaulted on imperativethat it be so declared in unequivocal terms, or that
the PN, XYZ stopped payment of rentals on the building on the old and new obligations be on every point compatible with
theground that legal compensation had set in. Since there was still a each other. Novation is never presumed (Art. 1292, Civil
balance due on the PN after applying the rentals, XYZ foreclosed Code).
the real estate mortgage over Recardo's property. Recardo opposed
the foreclosure on the ground that he is only a co-signatory; that no
demand was made upon him for payment, and assuming he is
liable, his liability should not go beyond half the balance of the
loan. Further, Recardo said that when the bank invoked
compensation between the reantals and the amount of the loan, it
amounted to a new contract or novation, and had the effect of

138
 extinguishing the security since he did not give his consent (as
owner of the property under the real estate mortgage) thereto.

Does Recardo have basis under the Civil Code for claiming
that the original contract was novated?

2008 Eduardo was granted a loan by XYZ Bank for the purpose Yes, Recardo's property can be foreclosed to pay the OBLIGATIONS;
of improving a building which XYZ leased from him. Eduardo, full balance of the loan because when he signed as cosignatory LIABILITY;
executed the promissory note ("PN") in favor of the bank, with his in the promissory note, he acknowledged he is solidarily liable SOLIDARY
friend Recardo as cosignatory. In the PN, they both acknowledged with Eduardo. In solidary obligations, a creditor has the right LIABILITY
that they are "individually and collectively" liable and waived the to demand full payment of the obligation from any ofthe
need for prior demand. Tosecure the PN, Recardo executed a real solidary debtors (Art. 1207, Civil Code).
estate mortgage on his own property. When Eduardo defaulted on
the PN, XYZ stopped payment of rentals on the building on the
ground that legal compensation had set in. Since there was still a
balance due on the PN after applying the rentals, XYZ foreclosed
the real estate mortgage over Recardo's property. Recardo opposed
the foreclosure on the ground that he is only a co-signatory; that no
demand was made upon him for payment, and assuming he is
liable, his liability should not go beyond half the balance of the
loan. Further, Recardo said that when the bank invoked
compensation between the reantals and the amount of the loan, it
amounted to a new contract or novation, and had the effect of

139
 extinguishing the security since he did not give his consent (as
owner of the property under the real estate mortgage) thereto.

Can Recardo's property be foreclosed to pay the full balance

of the loan?

2008 AB Corp. entered into a contract with XY Corp. whereby A. No. The labor unrest cannot be considered a CONTRACTS;
the former agreed to construct the research and laboratory facilities fortuitous event under Art. 1174 of the Civil Code. A RESCISSION OF
of the latter. Under the terms of the contract, AB Corp. agreed to fortuitous event should occur independent of the will of the CONTRACTS;
complete the facility in 18 months, at the total contract price of P10 debtor or without his participation or aggravation (Paras, Civil FURTUITOUS
million. XY Corp. paid 50% of the total contract price, the balance Code Annotated, vol. IV, 2000 ed., p 159). As mentioned in EVENT
to be paid upon completion of the work. The work stated the facts, labor unrest of the employees was caused by AB
immediately, but AB Corp. later experienced work slippage Corp.'s failure to pay its employees on time.
because of labor unrest in his company. AB Corp.'s employees
claimed that they are not being paid on time; hence, the work
slowdown. As of the 17th month, work was only 45% completed. B. No, XY Corp. cannot unilaterally and immediately
AB Corp. asked for extension of time, claiming that its labor cancel the contract. In the absence of any stipulation for
problems is a case of fortuitous event, but this was denied by XY automatic rescission, rescission must be judicial (Art. 1191,
Corp. When it became certain that the contruction could not be Civil Code).
finished on time, XY Corp. sent written notice cancelling the
contract, and requiring AB Corp. to immediately vacate the
premises.
C. AB Corp. need not return the 50% down payment
because 45% of the work was already completed, otherwise,
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 XY Corp. would be unjustly enriching itself at the expense of
AB Corp.
(A). Can the labor unrest be considered a fortuitous event?

(B). Can XY Corp. unilaterrally and immediately cancel the

contract?

(C). Must AB Corp. return the 50% downpayment?

2008 Dux leased his house to Iris for a period of 2 years, at the A. Yes, because the right of first refusal is included in RIGHT OF FIRST
rate of P25,000.00 monthly, payable annually in advance. The the contract signed by the parties. Only if the lessee failed to REFUSAL;
contract stipulated that it may be renewed for another 2-year period exercise the right of first refusal could the lessor lawfully sell LESSEE; EFFECT
upon mutual agreement of the parties. The contract also granted Iris the subject property to others, under no less than the same
the right of first refusal to purchase the property at any time during terms and conditions previously offered to the lessee. Granting
the lease, if Dux decides to sell the property at the same price that that the mother is not a third party, this would make her privy
the property is offered for sale to a third party. Twenty-three to the agreement of Dux and Iris, aware of the right of first
months after execution of the lease contract, Dux sold breach of her refusal. This makes the mother a buyer in bad faith, hence
right of first refusal. Dux said there was no breach because the giving more ground for rescission of the sale to her (Equatorial
property was sold to his mother who is not a third party. Iris filed Realty, et al. v. Mayfair Theater, G.R. No. 106063, 21 Nov.
an action to rescind the sale and to compel Dux to sell the property 1996).
to her at the same price. Alternatively, she asked the court to extend
the lease for another 2 years on the same terms.

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 ALTERNATIVE ANSWER: No, Iris cannot seek
rescission of the sale of the property to Dux’s mother because
(A). Can Iris seek rescission of the sale of the property to
the sale is not one of those rescissible contracts under Art.
Dux's mother?
1381 of the Civil Code.

(B). Will the alternative prayer for extension of the lease

B. No. The contract stipulated that it may be renewed
prosper?
for another 2-year period upon mutual agreement of the
parties. Contracts are binding between the parties; validity or
compliance cannot be left to the will of one of the parties (Art.
1308, Civil Code).

ALTERNATIVE ANSWER: It depends. The

alternative prayer for the extension of the lease may prosper if:

(a) there is a stipulation in the contract of sale; (b)

Dux's mother is aware of the existing contract of lease; or (c)
the lease is recorded in the Registry of Property (Art. 1676,
Civil Code).

2009 Emmanuel and Margarita, American citizens and employees No, the suits will not prosper. As applied to foreign NATIONALITY
of the U.S. State Department, got married in the African state of nationals with the respect to family relations and status of
142
Kenya where sterility is a ground for annulment of marriage. persons, the nationality principle set forth in Article 15 of the PRINCIPLE
Thereafter, the spouses were assigned to the U.S. Embassy in Civil Code will govern the relations of Emmanuel and
Manila. On the first year of the spouses’ tour of duty in the Margarita. Since they are American citizens, the governing law
Philippines, Margarita filed an annulment case against Emmanuel as to the ground for annulment is not Kenyan Law which
before a Philippine court on the ground of her husband’s sterility at Magarita invokes in support of sterility as such ground; but
the time of the celebration of the marriage. should be U.S. Law, which is the national Law of both
Emmanuel and Margarita as recognized under Philippine Law.
Hence, the Philippine court will not give due course to the case

Will the suit prosper? Explain your answer. based on Kenyan Law. The nationality principle as expressed
in the application of national law of foreign nationals by
Philippine courts is established by precedents (Pilapil v. Ibay-
Somera, 174 SCRA 653[1989], Garcia v. Recio, 366 SCRA
437 [2001], Llorente v. Court of Appeals 345 SCRA 92
[2000], and Bayot v. Court of Appeals 570 SCRA 472 [2008]).

ALTERNATIVE ANSWER: The forum has

jurisdiction over an action for the annulment of marriage
solemnized elsewhere but only when the party bringing the
actions is domiciled in the forum. In this case, none of the
parties to the marriage is domiciled in the Philippines. They
are here as officials of the US Embassy whose stay in the
country is merely temporary, lasting only during their fixed
tour of duty. Hence, the Philippine courts have no jurisdiction

143
 over the action.

2009 (A). If Ligaya, a Filipino citizen residing in the United A. New York law shall apply. The petition of change of NATIONALITY
States, files a petition for change of name before the District Court name filed in New York does not concern the legal capacity or PRINCIPLE;
of New York, what law shall apply? Explain. status of the petitioner. Moreover, it does nto affect the registry CHANGE OF
of any other country including the country of birth of the NAME NOT
petitioner. Whatever judgment is rendered in that petition will COVERED
(B). If Henry, an American citizen residing in the have effect only in New York. The New York court cannot, for
Philippines, files a petition for change of name before a Philippine instance, order the Civil Registrar in the Philippines to change
court, what law shall apply? Explain. its records. The judgment of the New York court allowing a
change in the name of the petitioner will be limited to the
records of the petitioner in New York and the use of her new
name in all transactions in New York. Since the records and
processes in New York are the only ones affected, the New
York court will apply New YorK law in resolving the petition.

ALTERNATIVE ANSWER: Philippine law shall apply

(Art 15, NCC). Status, conditions, family rights and duties are
governed by Philippine laws as to Filipinos even though
sojourning abroad.

ALTENATIVE ANSWER: If Ligaya, a Filipino, files a

144
petition for change of name with the District Court of New
YoRk, the laws of New York will govern since change of
name is not one of those covered by the principles of
nationality.

B. Philippine law will apply. The petition for change of

name in the Philippines will affect only the records of the
petitioner and his transactions in the Philippines. The
Philippine court can never acquire jurisdiction over the
custodian in the US of the records of the petitioner. Moreover,
change of name has nothing to do with the legal capacity or
status of the alien. Since Philippine records and transactions
are the only ones affected, the Philippine court may effect the
change only in accordance with the laws governing those
records and transactions that law cannot be but Philippine law.

ALTERNATIVE ANSWER: U.S. law shall apply as it

is his national law. This is pursuant to the application of lex
patriae or the nationality principle, by which his legal status is
governed by national law, the matter of change of name being
included in the legal status. The Supreme Court has reiterate in
several cases, that the lex patriae as provided in Article 15 of

145
 the Civil Code is applicable to foreign nationals in determining
their legal status (supra).

2009 TRUE or FALSE. Answer TRUE if the statement is true, or TRUE. If the foreign law necessary to the resolve an PROCESSUAL
FALSE if the statement is false. Explain your answer in not more issue is not proven as a fact, the court of the forum may PRESUMPTION
than two (2) sentences. presume that the foreign law is the same as the law of the
forum.

The doctrine of "processual presumption" allows the court

of the forum to presume that the foreign law applicable to the case
is the same as the local or domestic law.

2009 Harry married Wilma, a very wealthy woman. Barely five A. As to Wilma, the divorced obtained by her is MARRIAGE;
(5) years into the marriage, Wilma fell in love with Joseph. Thus, recognized as valid in the Philippines because she is now a DIVORCE;
Wilma went to a small country in Europe, became a naturalized foreigner. Philippine personal laws do not apply to a foreigner. DECREES
citizen of that country, divorced Harry, and married Joseph. A year However, recognition of the divorce as regards Harry will OBTAINED BY
thereafter, Wilma and Joseph returned and established permanent depend on the applicability to his case of the second paragraph ALIEN SPOUSE
residence in the Philippines. of Article 26 of the Family Code. If it is applicable, divorce is [FORMER
recognized as to him and, therefore, he can remarry. However, FILIPINO]
if it is not applicable, divorce is not recognized as to him and,

(A). Is the divorce obtained by Wilma from Harry consequently, he cannot remarry.
recognized in the Philippines? Explain your answer.

ALTERNATIVE ANSWER: Yes, the divorce obtained

146
 by Wilma is recognized as valid in the Philippines. At the time
she got the divorce, she was already a foreign national having
(B). If Harry hires you as his lawyer, what legal recourse
been naturalized as a citizen of that ―small country in
would you advise him to take? Why?
Europe.‖ Based on precedents established by the Supreme
Court (Bayot v. CA, 570 SCRA 472 [2008]), divorce obtained
by a foreigner is recognized in the Philippines if validly
(C). Harry tells you that he has fallen in love with another obtained in accordance with his or her national law .
woman, Elizabeth, and wants to marry her because, after all, Wilma
is already married to Joseph. Can Harry legally marry Elizabeth?
Explain.
B. I will advice Harry to: (1) Dissolve and liquidate his
property relations with Wilma ; and (2) If he will remarry, file
a petition for the recognition and enforcement of the foreign
judgment of divorced (Rule 39,Rules of Court ).

C. Yes, he can validly marry Elizabeth, applying the

doctrine laid down by the Supreme Court in Republic v.
Obrecido (427 SCRA 114 [2005]). Under the second
paragraph of Article 26 of the Family Code, for the Filipino
spouse to have capacity to remarry, the law expressly requires
the spouse who obtained the divorce to be a foreigner at the
time of the marriage. Applying this requirement to the case of
Harry it would seem that he is not given the capacity to
remarry. This is because Wilma was a Filipino at the time of

147
 her marriage to Harry.

In Republic v. Obrecido, however, the Supreme Court

ruled that a Filipino spouse is given the capacity to remarry
even though the spouse who obtained the divorce was a
Filipino at the time of the marriage, if the latter was already a
foreigner when the divorce was already obtained abroad.
According to the court, to rule otherwise will violate the equal
protection clause of the Constitution.

2009 In December 2000, Michael and Anna, after obtaining a A. The marriage is void because the formal requisite of MARRIAGE;
valid marriage license, went to the Office of the Mayor of Urbano, marriage ceremony was absent ( Art.3, F.C. 209, Family VOID
Bulacan, to get married. TheMayor was not there, but the Mayor’s Code). MARRIAGES;
secretary asked Michael and Anna and their witnesses to fill up and STATUS OF
sign the required marriage contract forms. The secretary then told CHILDREN
them to wait, and went out to look for the Mayor who was ALTERNATIVE ANSWER: The marriage is void
attending a wedding in a neighboring municipality. because an essential requisite was absent: consent of the
parties freely given in the presence of the solemnizing officer
(Art .2, FC).
When the secretary caught up with the Mayor at the
wedding reception, she showed him the marriage contract forms
and told him that the couple and their witnesses were waiting in his B. The children are illegitimate, having been born
office. The Mayor forthwith signed all the copies of the marriage

148
 contract, gave them to the secretary who returned to the Mayor’s outside a valid marriage.
office. She then gave copies of the marriage contract to the parties,
and told Michael and Anna that they were already married.
Thereafter, the couple lived together as husband and wife, and had
three sons.

(A). Is the marriage of Michael and Anna valid, voidable, or

void? Explain your answer.

(B). What is the status of the three children of Michael and

Anna? Explain your answer.

2009 Emmanuel and Margarita, American citizens and employees No, the marriage cannot be annulled under the MARRIAGE;
of the U.S. State Department, got married in the African state of Philippine law. Sterility is not a ground for annulment of ANNULMENT;
Kenya where sterility is a ground for annulment of marriage. marriage under Article 45 of the Family Code. GROUNDS
Thereafter, the spouses were assigned to the U.S. Embassy in
ALTERNATIVE ANSWER: No, the marriage cannot
Manila. On the first year of the spouses’ tour of duty in the
be annulled in the Philippines.
Philippines, Margarita filed an annulment case against Emmanuel
before a Philippine court on the ground of her husband’s sterility at
the time of the celebration of the marriage.
The Philippine court shall have jurisdiction over the
action to annul the marriage not only because the parties are

149
 Assume Emmanuel and Margarita are both Filipinos. After residents of the Philippines but because they are Filipino
their wedding in Kenya, they come back and take up residence in citizens. The Philippine court, however, shall apply the law of
the Philippines. Can their marriage be annulled on the ground of the place where the marriage was celebrated in determining its
Emmanuel’s sterility? Explain. formal validity (Article 26, FC; Article 17, NCC).

Since the marriage was celebrated in Kenya in

accordance with Kenyan law, the formal validity of such
marriage is governed by Kenyan law and any issue as to the
formal validity of that marriageshall be determined by
applying Kenyan law and not Philippine law.

However, while Kenyan law governs the formal

validity of the marriage, the legal capacity of the Filipino
parties to the marriage is governed not by Kenyan law but by
Philippine law (Article 15, NCC). Sterility of a party as a
ground for the annulment of the marriage is not a matter of
form but a matter of legal capacity. Hence, the Philippine court
must apply Phillippine law in determining the status of the
marriage on the ground of absence or defect in the legal
capacity of the Filipino parties. Since sterility does not
constitute absence or defect in the legal capacity of the parties
under Philippine law, there is no ground to avoid or annul the

150
 marriage. Hence, the Philippine court has to deny the petition.

2009 In December 2000, Michael and Anna, after obtaining a The marriage being void, the property relationship that PROPERTY
valid marriage license, went to the Office of the Mayor of Urbano, governed their union is special co-ownership under Article 147 RELATIONS;
Bulacan, to get married. The Mayor was not there, but the Mayor’s of the Family Code. This is on the assumption that there was VOID
secretary asked Michael and Anna and their witnesses to fill up and no impediment for them to validity marry each other. MARRIAGES
sign the required marriage contract forms. The secretary then told
them to wait, and went out to look for the Mayor who was
attending a wedding in a neighboring municipality. When the
secretary caught up with the Mayor at the wedding reception, she
showed him the marriage contract forms and told him that the
couple and their witnesses were waiting in his office. The Mayor
forthwith signed all the copies of the marriage contract, gave them
to the secretary who returned to the Mayor’s office. She then gave
copies of the marriage contract to the parties, and told Michael and
Anna that they were already married. Thereafter, the couple lived
together as husband and wife, and had three sons.

What property regime governs the properties acquired by

the couple? Explain.

2009 Four children, namely: Alberto, Baldomero, Caridad, and No, Alberto and Baldomero are not entitled to share in PATERNITY &
Dioscoro, were born to the spouses Conrado and Clarita de la FILIATION;

151
Costa. The children’s birth certificates were duly signed by Edilberto’s estate. WHO MAY
Conrado, showing them to be the couple’s legitimate children. IMPUGN
LEGITIMACY
They are not related at all to Edilberto. They were born
Later, one Edilberto de la Cruz executed a notarial during the marriage of Conrado and Clarita, hence, are
document acknowledging Alberto and Baldomero as his considered legitimate children of the said spouses. This status
illegitimate children >with Clarita. Edilberto died leaving is conferred on them at birth by law.
substantial properties. In the settlement of his estate, Alberto and
Baldomero intervened claiming shares as the deceased’s
illegitimate children. The legitimate family of Edilberto opposed Under Philippine law, a person cannot have more than
the claim. one natural filiation. The legitimate filiation of a person can be
changed only if the legitimate father will successfully impugn
such status.
Are Alberto and Baldomero entitled to share in the estate of
Edilberto? Explain.

In the problem, therefore, the filiation of Alberto and

Baldomero as legitimate children of Condrado cannot be
changed by their recognition by Edilberto as his illegitimate
children. Before they can be conferred the status of Edilberto’s
illegitimate children, Condrado must first impugn their
legitimacy. Since Condrado has not initiated any action to
impugn their legitimacy, they continue to be the legitimate of
Condrado. They cannot be the illegitimate children of
Edilberto at the same time. Not being the illegitimate children

152
 of Edilberto, they have no right to inherit from him.

2009 Rodolfo, married to Sharon, had an illicit affair with his No. he has no right to compel Rona to use his surname. PATERNITY &
secretary, Nanette, a 19-year old girl, and begot a baby girl, Rona. The law does not give him the right simply because he gave FILIATION; USE
Nanette sued Rodolfo for damages: actual, for hospital and other her support (RA 9255). OF SURNAME;
medical expenses in delivering the child by caesarean section; ILLEGITIMATE
moral, claiming that Rodolfo promised to marry her, representing CHILD
that he was single when, in fact, he was not; and exemplary, to Under the Family Code, an illegitimate child was
teach a lesson to like-minded Lotharios. required to use only the surname of the mother. Under RA
9255, otherwise known as the Revilla law, however, the
illegitimate child is given the option to use the surname of the
Suppose Rodolfo later on acknowledges Rona and gives her illegitimate father when the latter has recognized the former in
regular support, can he compel her to use his surname? Why or accordance with law. Since the choice belongs to the
why not? illegitimate child, Rodolfo cannot compel Rona, if already of
age, to use the surname against her will. If Rona is still a
minor, to use the surname of Rodolfo will require the consent
of Rona's mother who has sole parental authority over her.

2009 TRUE or FALSE. TRUE To be legitimated, the law does not require a PATERNITY &
child to be alive at the same time of the marriage of his / her FILIATION;
A dead child can be legitimated.
parents ( Article 177, FC ). Furthermore, Art. 181 of the LEGITIMATION
Family Code which states that ―[Th]e llegitimation of OF A DEAD
children who died before the celebration of marriage will CHILD
benefit their descendants,‖ does not preclude instances where

153
 such legitimation will benefit no one but the child's ascendants
,or other relatives .

2009 Rafael, a wealthy bachelor, filed a petition for the adoption A. It depends on the stage of the proceedings when ADOPTION;
of Dolly, a one-year old foundling who had a severe heart ailment. Rafael died. If he died after all the requirements under the law TERMINATION;
During the pendency of the adoption proceedings, Rafael died of have been complied with and the case is already submitted for DEATH OF
natural causes. The Office of the Solicitor General files a motion to resolution, the court may grant the petition and issue a decree ADOPTER
dismiss the petition on the ground that the case can no longer of adoption despite the death of the adopter (Section 13, RA
proceed because of the petitioner’s death. 8552). Otherwise, the death of the petitioner shall have the
effect terminating the proceedings.

(A). Should the case be dismissed? Explain.

B. No, if it was Dolly who died, the case should be
dismissed. Her death terminates the proceedings (Art. 13,

(B). Will your answer be the same if it was Dolly who died Domestic Adoption Law).
during the pendency of the adoption proceedings? Explain.

ALTERNATIVE ANSWER: It depends. If all the

requirements under the law have already been complied with
and the case is already submitted for resolution, the death of
the adoptee should not abate the proceedings. The court should
issue the decree of adoption if will be for the best interest of
the adoptee. While RA8552 provides only for the case where it
is the petitioner who dies before the decree is issued, it is with

154
 more compelling reason that the decree should be allowed in
case it is the adoptee who dies because adoption is primarily
for his benefit.

2009 Rodolfo, married to Sharon, had an illicit affair with his No, because Rodolfo has no parental authority over PARENTAL
secretary, Nanette, a 19-year old girl, and begot a baby girl, Rona. Rona. He who has the parental authority has the right to AUTHORITY;
Nanette sued Rodolfo for damages: actual, for hospital and other custody. Under the Family Code, the mother alone has parental ILLEGITIMATE
medical expenses in delivering the child by caesarean section; authority over the illegitimate child. This is true even if MINOR CHILD
moral, claiming that Rodolfo promised to marry her, representing illegitimate father recognized the child and even though he is
that he was single when, in fact, he was not; and exemplary, to giving support for the child. To acquire custody over Rona,
teach a lesson to like-minded Lotharios. Rodolfo should first deprive Nanette of parental authority if
there is ground under the law, and in a proper court
proceedings. In the same action, the court may award custody

When Rona reaches seven (7) years old, she tells Rodolfo of Rona to Rodolfo if it is for her best interest
that she prefers to live with him, because he is better off financially
than Nanette. If Rodolfo files an action for the custody of Rona,
alleging that he is Rona’s choice as custodial parent, will the court
grant Rodolfo’s petition? Why or why not?

2009 TRUE or FALSE. False. A persons cannot dispose of his corpse through DISPOSITION;
an act inter vivos, i.e., an act to take effect during his lifetime. MORTIS CAUSA
A person can dispose of his corpse through an act
Before his death there is no corpse to dispose. But he is VS INTER VIVOS;
intervivos.
allowed to do so through an act mortis causa, i.e., an act to take CORPSE

155
 effect upon his death.

2009 In reserve troncal, all reservatarios (reser vees) inherit as a FALSE. Not all the relatives within the third degree RESERVA
class and in equal shares regardless of their proximity in degree to will inherit as reservatario , and not all those who are entitled TRONCAL
the prepositus. to inherit will inherit in the equal shares . The applicable laws
of intestate succession will determine who among the relatives
will inherit as reservatarios and what shares they will tak, i.e.,
the direct line excludes the collateral, the descending direct
line excludes the ascending ,the nearer excludes the more
remote, the nephews and nieces exclude the uncles and the
aunts, and half blood relatives inherit half the share of
fullblooded relatives.

2009 Dr. Lopez, a 70-year old widower, and his son Roberto both As to the Estate of Dr. Lopez: SUCCESSION;
died in a fire that gutted their home while they were sleeping in RULE ON
their air-conditioned rooms. Roberto’s wife, Marilyn, and their two SURVIVORSHIP
children were spared because they were in the province at the time. Marilyn is not entitled to a share in the estate of Dr.
Dr. Lopez left an estate worth P20M and a life insurance policy in Lopez. For purpose of succession, Dr. Lopez and his son
the amount of P1M with his three children ---one of whom is Roberto are presumed to have died at the same time, there
Roberto --- as beneficiaries. being no evidence to prove otherwise, and there shall be no
transmission of rights from one to the other (Article 43, NCC).
Hence, Roberto, inherited nothing from his father that Marilyn
Marilyn is now claiming for herself and her children her would in turn inherit from Roberto .The children of Roberto,
husband’s share in the estate left by Dr. Lopez, and her husband’s however, will succeed their grandfather, Dr. Lopez ,in

156
share in the proceeds of Dr. Lopez’s life insurance policy. Rule on representation of their father Roberto and together Roberto
the validity of Marilyn’s claims with reasons. will receive 1/3 of the estate of Dr. Lopez since their father
Roberto was one of the three children of Dr. Lopez . Marilyn
cannot represent her husband Roberto because the right is not
given by the law to a surviving spouse.

As to the proceeds of the insurance on the life of Dr.

Lopez:

Since succession is not involved as regards the

insurance contract, the provisions of the Rules of Court (Rule
131, Sec. 3 , [jj] [5] ) on survivorship shall apply. Under the
Rules, Dr. Lopez, who was 70 years old, is presumed to have
died ahead of Roberto who is presumably between the ages 15
and 60. Having survived the insured, Roberto's right as a
beneficiary became vestedupon the death of Dr. Lopez. When
Roberto died after Dr. Lopez, his right to receive the insurance
became part of his hereditary estate, which in turn was
inherited in equal shares by his legal heirs, namely, his spouse
and children. Therefore, Roberto's children and his spouse are
entitled to Roberto's one third share in the insurance proceeds.

157
2009 Marciano is the owner of a parcel of land through which a A. Marciano’s contention is correct. Since that ACCRETION;
river runs out into the sea. The land had been brought under the accretion was deposited on his land by the action of the waters RIGHTS OF THE
Torrens System, and is cultivated by Ulpiano and his family as of the river and he did not construct any structure to increase RIPARIAN
farmworkers therein. Over the years, the river has brought silt and the deposition of soil and silt, Marciano automatically owns OWNER
sediment from its sources up in the mountains and forests so that the accretion. His real right of ownership is enforceable against
gradually the land owned by Marciano increased in area by three the whole world including Ulpiano and his two married
hectares. children. Although Marciano’s land is registered, the three (3)
hectares land deposited through accretion was not
automatically registered. As an unregistered land, it is subject

Ulpiano built three huts on this additional area, where he to acquisitive prescription by third persons.
and his two married children live. On this same area, Ulpiano and
his family planted peanuts, monggo beans and vegetables. Ulpiano
also regularly paid taxes on the land, as shown by tax declarations, Although Ulpiano and his children live in the three (3)
for over thirty years. hectare unregistered land owned by Marciano, they are farm
workers; therefore, they are possessors not in the concept of
owners but in the concept of mere holders. Even if they

When Marciano learned of the increase in the size of the possess the land for more than 30 years, they cannot become
land, he ordered Ulpiano to demolish the huts, and demanded that the owners thereof through extraordinary acquisitive
he be paid his share in the proceeds of the harvest. Marciano claims prescription, because the law requires possession in the
that under the Civil Code, the alluvium belongs to him as a concept of the owner. Payment of taxes and tax declaration are
registered riparian owner to whose land the accretion attaches, and not enough to make their possession one in the concept of
that his right is enforceable against the whole world. owner. They must repudiate the possession in the concept of
holder by executing unequivocal acts of repudiation amounting
to ouster of Marciano, known to Marciano and must be proven
158
 by clear and convincing evidence. Only then would his
possession become adverse.
(A). Is Marciano correct? Explain.

B. Although Ulpiano is a possessor in bad faith,

(B). What rights, if any, does Ulpiano have against
because he knew he does not own the land, he will lose the
Marciano? Explain.
three huts he built in bad faith and make an accounting of the
fruits he has gathered, he has the right to deduct from the value
of the fruits the expenses for production, gathering and
preservation of the fruits (Art 443, NCC).

He may also ask for reimbursement of the taxes he has

paid, as these are charges on the land owned by Marciano. This
obligation is based on a quasi-contract (Art 2175, NCC).

2009 TRUE or FALSE. True, Under the Civil Code, a co-owner may renounce CO-OWNERSHIP;
his share in the co-owned property in lieu of paying for his RENUNCIATION
The renunciation by a co-owner of his undivided share in
share in the taxes and expenses for the preservation of the co-
the co-owned property in lieu of the performance of his obligation
owned property.
to contribute to taxes and expenses for the preservation of the
property constitutes dacion en pago.

In effect, there is dacion en pago because the co-owner

is discharging his monetary obligation by paying it with his
159
 non-monetary interest in the co-owned property. The fact that
he is giving up his entire interest simply means that he is
accepting the value of his interest as equivalent to his share in
the taxes and expenses of preservation.

2009 TRUE or FALSE. Answer TRUE if the statement is true, or True. The Civil Code provides that ―Any clause CONTRACTS;
FALSE if the statement is false. Explain your answer in not more giving one of the parties power to choose more arbitrators than STIPULATION;
than two (2) sentences. the other is void and of no effect‖ (Art 2045, NCC). ARBITRATION
CLAUSE

A clause in an arbitration contract granting one of the

parties the power to choose more arbitrators than the other renders
the arbitration contract void.

2009 The Ifugao Arms is a condominium project in Baguio City. Yes, Edwin may legally sue for partition by sale of the CONDOMINIUM
A strong earthquake occurred which left huge cracks in the outer whole condominium project under the following conditions: ACT; PARTITION
walls of the building. As a result, a number of condominium units OF A
were rendered unfit for use. May Edwin, owner of one of the CONDOMINIUM
condominium units affected, legally sue for partition by sale of the (a) the damage or destruction caused by the earthquake
whole project? Explain. has rendered one-half (1/2) or more of the units therein
untenantable, and (b) that the condominium owners holding an
aggregate of more than thirty percent (30%) interests of the
common areas are opposed to the restoration of the
condominium project (Sec 8 [b], Republic Act No. 472
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 ―Condominium Act‖).

2009 Jude owned a building which he had leased to several Yes, Ildefonso must respect the lease contracts between LEASE; CAVEAT
tenants. Without informing his tenants, Jude sold the building to Jude and his tenants. While it is true that the said lease EMPTOR
Ildefonso. Thereafter, the latter notified all the tenants that he is the contracts were not registered and annotated on the title to the
new owner of the building. Ildefonso ordered the tenants to vacate property, Ildefonso is still not an innocent purchaser for value.
the premises within thirty (30) days from notice because he had He ought to know the existence of the lease because the
other plans for the building. The tenants refused to vacate, insisting building was already occupied by the tenants at the time he
that they will only do so when the term of their lease shall have bought it. Applying the principle of caveat emptor, he should
expired. Is Ildefonso bound to respect the lease contracts between have checked and known the status of the occupants of their
Jude and his tenants? Explain your answer. right to occupy the building before buying it.

2009 TRUE or FALSE. FALSE. An oral contract of guaranty, being a special GUARANTY
promise to answer for the debt ofanother, is unenforceable
An oral promise of guaranty is valid and binding.
unless in writing (Article 1403 [2] b, NCC ).

ALTERNATIVE ANSWER: TRUE. An oral promise

of guaranty is valid and binding. While the contract is valid,
however ,it is unenforceable because it is not writing . Being a
special promise answer for the debt, or miscarriage of another,
the Statute of Frauds requires it to be in writing to
beenforceable ( Article 1403 [2] b, NCC).The validity of the

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 contract should be distinguished from its enforceability .

2009 Rosario obtained a loan of P100,000.00 from Jennifer, and A. The contract is valid because Rosario has to execute PLEDGE;
pledged her diamond ring. The contract signed by the parties a document in favor of Jennifer to transfer the ownership of the PACTUM
stipulated that if Rosario is unable to redeem the ring on due date, pledged ring to the latter. The contract does not amount to COMMISSORIUM
she will execute a document in favor of Jennifer providing that the pactum commissorium because it does not provide for the
ring shall automatically be considered full payment of the loan. automatic appropriation by the pledgee of the thing pledged in
case of default by the pledgor.

(A). Is the contract valid? Explain.

B. No, my answer will be different. While the contract
of pledge is valid, the stipulation authorizing the pledgee to

(B). Will your answer to [a] be the same if the contract immediately sell the thing pledged is void under Art 2088 of
stipulates that upon failure of Rosario to redeem the ring on due the New Civil Code, which provides that ―the creditor cannot
date, Jennifer may immediately sell the ring and appropriate the appropriate the things given by way of pledge or mortgage, or
entire proceeds thereof for herself as full payment of the loan? dispose of them xxx.‖ Jennifer cannot immediately sell by
Reasons. herself the thing pledged. It must be foreclosed by selling it at
a public auction in accordance with the procedure under Art
2112 of the New Civil Code.

2009 Rodolfo, married to Sharon, had an illicit affair with his If Rodolfo's marriage could not have been possibly DAMAGES;
secretary, Nanette, a 19-year old girl, and begot a baby girl, Rona. known to Nanette or there is no gross negligence on the part of MORAL &
Nanette sued Rodolfo for damages: actual, for hospital and other Nanette, Rodolfo could be held liable for moral damages. If EXEMPLARY
medical expenses in delivering the child by caesarean section; there is gross negligence in a suit for quasidelict, exemplary

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 moral, claiming that Rodolfo promised to marry her, representing could be awarded.
that he was single when, in fact, he was not; and exemplary, to
teach a lesson to like-minded Lotharios.

If you were the judge, would you award all the claims of
Nanette? Explain.

2009 Rommel’s private car, while being driven by the regular A. Yes, Rommel may be held liable for damages if he DEATH
family driver, Amado, hits a pedestrian causing the latter’s death. fails to prove that he exercised the diligence of a good father of INDEMNITY
Rommel is not in the car when the incident happened. a family (Art. 2180, par 5, NCC) in selecting and supervising
his family driver. The owner is presumed liable unless he
proves the defense of diligence. If the driver was performing

(A). Is Rommel liable for damages to the heirs of the his assigned task when the accident happened, Rommel shall
deceased? Explain. be solidarily liable with the driver.

(B).Would your answer be the same if Rommel was in the In case the driver is convicted of reckless imprudence

car at the time of the accident? Explain. and cannot pay the civil liability, Rommel is subsidiarily liable
for the damage awarded againstthe driver and the defense of
diligence is not available.

B. Yes, my answer would be the same. Rommel, who

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 was in the car, shall be liable for damages if he could have
prevented the misfortune by the use of due diligence in
supervising his driver but failed to exercise it (Art. 2184,
NCC). In such case, his liability is solidary with his driver.

ALTERNATIVE ANSWER: Yes, my answer will be

the same except that in such case the liability of the owner is
not presumed. When the owner is inside the vehicle, he
becomes liable only when it is shown that he could have
prevented the misfortune by the use of due diligence (Art.
2184, NCC). For the owner to be held liable, the burden of
proving that he could have prevented the misfortune rests on
the shoulder of the victim.

2010 Give at least two reasons why a court may assume 1. Statute Theory. There is a domestic law authorizing JURISDICTION
jurisdiction over a conflict of laws case. the local court to assume jurisdiction OVER CONFLICT
OF LAWS CASES
2. Comity Theory. The local court assumes jurisdiction
based on the principle of comity or courtesy

ALTERNATIVE ANSWER:

1. Public Order. To maintain peace and order, disputes

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 that disturb the peace of the forum should be settled by the
courts of the forum even though the application of a foreign
law is necessary for the purpose.

2. Humanitarian Principle. AN aggrieved party should

not be left without remedy in a forum even though the
application of a foreign law by the courts of the forum is
unavoidable in order to extend relief.

2010 True or False. FALSE In Garcia v. Recto, 366 SCRA 437 (2001), the MARRIAGE;
SC held that for a Filipino spouse to have capacity to contract DIVORCE
a subsequent marriage, it must also be proven that the foreign DECREE
Under Article 26 of the Family Code, when a foreign divorce obtained by the foreigner spouse gives such foreigner OBTAINED BY
spouse divorces his/her Filipino spouse, the latter may re-marry by spouse capacity to remarry. ALIEN SPOUSE;
proving only that the foreign spouse has obtained a divorce against EFFECT
her or him abroad.
ALTERNATIVE ANSWER: TRUE Art 26 (2) (FC),
clearly provides that the decree of divorce obtained abroad by
the foreigner spouse is sufficient to capacitate the Filipino
spouse to remarry.

2010 In 1997, B and G started living together without the benefit Venus is illegitimate. She was conceived and born MARRIAGE;
of marriage. The relationship produced one offspring, Venus. The outside a valid marriage. Thus, she is considered illegitimate VOID
couple acquired a residential lot in Parañaque. After four (4) years (Article 165, Family Code). While Venus was legitimated by MARRIAGES;

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 or in 2001, G having completed her 4-year college degree as a the subsequent marriage of her parents, such legitimation was STATUS OF
fulltime student, she and B contracted marriage without a license. rendered ineffective when the said marriage was later declared CHILDREN
null and void due to absence of marriage license.

The marriage of B and G was, two years later, declared null

and void due to the absence of a marriage license. Under Article 178 of the Family Code, ―legitimation
shall take place by a subsequent valid marriage between
parents. The annulment of a voidable marriage shall not affect

Is Venus legitimate, illegitimate, or legitimated? Explain the legitimation.‖ The inclusion of the underscored portion in
briefly. the Article necessarily implies that the Article’s application is
limited to voidable marriages. It follows that when the
subsequent marriage is null and void, the legitimation must
also be null and void. In the present problem, the marriage
between B and G was not voidable but void. Hence, Venus has
remained an illegitimate child.

2010 G filed on July 8, 2000 a petition for declaration of nullity A.Yes, G can still ask for support from B because MARRIAGE;
of her marriage to B. During the pendency of the case, the couple during the pendency of the action, the marriage between them DECLARATION
entered into a compromise agreement to dissolve their absolute is considered still subsisting (Article 68, Family Code). Being OF NULLITY;
community of property. B ceded his right to their house and lot and considered still married to each other, B and G still have the RIGHT TO
all his shares in two business firms to G and their two children, obligation to support each other. The compromise agreement SUPPORT
aged 18 and 19. B also opened a bank account in the amount of P3 cannot operate to waive future support when needed. (Article PENDENTE LITE
million in the name of the two children to answer for their 2035, Civil Code).
educational expenses until they finish their college degrees. For her

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part, G undertook to shoulder the day-to-day living expenses and
upkeep of the children. The Court approved the spouses’ agreement
After the compromise agreement was approved by the
on September 8, 2000.
court and the properties of the marriage were distributed, there
remained no more common properties of B and G. While
Article 198 of the Family Code appears to limit the source of
a. Suppose the business firms suffered reverses,
support to the common properties of the said marriage in case
rendering G unable to support herself and the children. Can
of the pendency of an action to declare the nullity of marriage,
G still ask for support pendente lite from B? Explain.
Article 94 and Article 121 indicate otherwise. Under the said
Articles, the spouses remain personally and solidarily liable
with their separate properties for support even though, for
b. Suppose in late 2004 the two children had whatever reason, there are no more community or partnership
squandered the P3 million fund for their education before properties left.
they could obtain their college degrees, can they ask for
more support from B? Explain.

The judgment based on the compromise dissolving the

property relations of B and G does not bar G from asking
support pendent lite. The dissolution of the property relations
of the spouses did not terminate the obligation between them
to support each other. The declaration of the nullity of their
marriage is what terminated the right of G to be supported by
B as his spouse.

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 B. Yes, the two children can still ask for support for
schooling or training for some profession, trade of vocation,
even beyond the age of majority until they shall have finished
or completed their education (Article 194, Paragraph 2, Family
Code, Javier v. Lucero, 94 Phil. 634 [1954]). Their having
squandered the money given to them for their education will
not deprive them of their right to complete an education, or to
extinguish the obligation of the parents to ensure the future of
their children.

2010 In 1997, B and G started living together without the benefit Since the marriage was null and void, no Absolute PROPERTY
of marriage. The relationship produced one offspring, Venus. The Community or Conjugal Partnership was established between RELATIONS;
couple acquired a residential lot in Parañaque. After four (4) years B and G. Their properties are governed by the ―special co- MARRIAGES
or in 2001, G having completed her 4-year college degree as a ownership‖ provision of Article 147 of the Family Code DECLARED
fulltime student, she and B contracted marriage without a license. because both B and G were capacitated to marry each other. VOID AB INITIO
The said article provides that when a man and a woman who
are capacitated to marry each other, live exclusively with each

The marriage of B and G was, two years later, declared null other as husband and wife without the benefit of marriage, or
and void due to the absence of a marriage license. under a void marriage: (1) their wages and salaries shall be
owned by them in equal shares; and (2) property acquired by
both of them through their work or industry shall be governed
by the rules on co-ownership. In coownership, the parties are
If you were the judge who declared the nullity of the
co-owners if they contributed something of values in the
marriage, to whom would you award the lot? Explain briefly.
acquisition of the property. Their share is in proportion to their

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 respective contributions for the acquisition of a property. In the
Article 147 ―special co-ownership‖, however, care and
maintenance is recognized as a valuable contribution which
will entitle the contributor to half of the property acquired.

Having been acquired during their cohabitation, the

residential lot is presumed acquired through their joint work
and industry under Article 147, hence, B and G are co-owners
of the said property in equal shares.

Article 147 also provides that when a party to the void

marriage was in bad faith, he forfeits his share in the
coownership in favor of the common children or descendants.
In default of children or descendants, the forfeited share shall
belong to the innocent party. In the foregoing problem, there is
no showing that one party was in bad faith. Hence, both shall
be presumed in good faith and no forfeiture shall take place.

2010 Eighteen-year old Filipina Patrice had a daughter out of No. John cannot file the petition to adopt alone. ADOPTION;
wedlock whom she named Laurie. At 26, Patrice married American Philippine law requires husband and wife to adopt jointly JOINT
citizen John who brought her to live with him in the United States except in certain situations enumerated in the law. The case of ADOPTION
of America. John at once signified his willingness to adopt Laurie.

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 Can John file the petition for adoption? If yes, what are the John does not fall in any of the exceptions. (R.A. 8552).
requirements? If no, why?

2010 Spouses Rex and Lea bore two children now aged 14 and 8. A. The consent of the 14 year-old legitimate child, of ADOPTION OF
During the subsistence of their marriage, Rex begot a child by the 10 year-old illegitimate child, and the biological mother of ILLEGITIMATE
another woman. He is now 10 years of age. On Lea’s discovery of the illegitimate child are needed for the adoption. (Section 7 CHILD;
Rex’s fathering a child by another woman, she filed a petition for and 9, R.A. 8552). The consent of Lea is no longer required CONSENT
legal separation which was granted. Rex now wants to adopt his because there was already a final decree of legal separation. NEEDED
illegitimate child.

B. Yes, he can still adopt his illegitimate child but with

a. Whose consent is needed for Rex’s adoption of his the consent of his spouse, of his 14 year-old legitimate child,
illegitimate child? of the illegitimate child, and of the biological mother of the
illegitimate child (Section 7 and 9, R.A. 8552).

b. If there was no legal separation, can Rex still adopt his

illegitimate child? Explain.

2010 Gigolo entered into an agreement with Majorette for her to A. As her lawyer, I can file a petition for habeas corpus PARENTAL
carry in her womb his baby via in vitro fertilization. Gigolo on behalf of Majorette to recover custody of her child. Since AUTHORITY;
undertook to underwrite Majorette’s pre-natal expenses as well as she is the mother of the child that was born out of wedlock, she SURROGATE
those attendant to her delivery. Gigolo would thereafter pay has exclusive parental authority and custody over the child. MOTHER;
Majorette P2 million and, in return, she would give custody of the Gigolo, therefore, has no right to have custody of the child and REMEDY TO
baby to him. After Majorette gives birth and delivers the baby to his refusal to give up custody will constitute illegal detention RECOVER
170
Gigolo following her receipt of P2 million, she engages your for which habeas corpus is the proper remedy. CUSTODY OF A
services as her lawyer to regain custody of the baby. CHILD

SUGGESTED ANSWER: The action to regain custody

a. What legal action can you file on behalf of Majorette? will not prosper. In the first place Majorette cannot regain
Explain. custody of the baby. As a surrogate mother she merely carries
the child in her womb for its development. The child is the
child of the natural parents-Gigolo and his partner. The

b. Can Gigolo demand from Majorette the return of the P2 agreement between Gigolo and Majorette is a valid agreement.
million if he returns the baby? Explain.

B. No, he cannot. Both he and Majorette are guilty of

c.Who of the two can exercise parental authority over the violating the provision of the Anti Child Abuse Law ( RA
child? Explain. 7610) on child trafficking. Being in pari delicto, the parties
shall be left where they are and Gigolo cannot demand the
return of what he paid.

d. Is the child entitled to support and inheritance from

Gigolo? Explain.
SUGGESTED ANSWER: Yes. The agreement
between Gigolo and Majorette is a valid agrrement.

C. Majorette, the mother, can exercise parental

authority. Since the child was born out of wedlock, the child is
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 an illegitimate and the mother has the exclusive parental
authority and custody over the child.

SUGGESTED ANSWER: Gigolo can exercise parental

authority over the child. Majorette has no blood relation to the
child. She is just a ―carrier‖ of the child.

D. If Gigolo voluntarily recognized the child as his

illegitimate child in accordance with the Article 175 in relation
to Article 172 of the Family Code, the child is entitled to
support and inheritance from Gigolo.

SUGGESTED ANSWER: Yes, because Gigolo is the

natural and biological parent of the baby.

2010 The spouses Peter and Paula had three (3) children. Paula A. The legal heirs of Peter are his children by the first LEGITIMES;
later obtained a judgment of nullity of marriage. Their absolute and second marriages and his surviving second wife. COMPULSORY
community of property having been dissolved, they delivered P1 HEIRS; EFFECT
million to each of their 3 children as their presumptive legitimes. OF SUBSEQUENT
Their shares in the estate of Peter will depend, MARRIAGE

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 however, on the cause of the nullity of the first marriage. If the
nullity of the first marriage was psychological incapacity of
Peter later re-married and had two (2) children by his
one or both spouses, the three children of the void marriage are
second wife Marie. Peter and Marie, having successfully engaged
legitimate and all of the legal heirs shall share the estate of
in business, acquired real properties. Peter later died intestate.
Peter in equal shares. If the judgment of nullity was for other
causes, the three children are illegitimate and the estate shall
be distributed such that an illegitimate child of the first
a. Who are Peter’s legal heirs and how will his estate be marriage shall receive half the share of a legitimate child of the
divided among them? second marriage, and the second wife will inherit a share equal
to that of a legitimate child. In no case may the two legitimate
children of the second marriage receive a share less than one-
b. What is the effect of the receipt by Peter’s 3 children by half of the estate which is their legitime. When the estate is not
his first marriage of their presumptive legitimes on their right to sufficient to pay all the legitimes of the compulsory heirs, the
inherit following Peter’s death? legitime of the spouse is preferred and the illegitimate children
will suffer the reduction.

Computation: A. If the ground of nullity is

psychological incapacity: 3 children by first marriage -----------
--- 1/6th of the estate for each

2 children by second marriage --------- 1/6th of the

estate for each surviving second spouse ----------------- 1/6th of
the estate B. If the ground of nullity is not psychological
incapacity: 2 legitimate children ------------ ¼ of the estate for
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 each of second marriage surviving second spouse ----- ¼ of
the estate 3 illegitimate children ----------- 1/12 of the estate for
each of first marriage

Note: The legitime of an illegitimate child is supposed

to be ½ the legitime of a legitimate child or 1/8 of the estate.
But the estate will not be sufficient to pay the said legitimes of
the 3 illegitimate children, because only ¼ of the estate is left
after paying the legitime of the surviving spouse which is
preferred. Hence, the remaining ¼ of the estate shall be
divided among the 3 illegitimate children.

B. In the distribution of Peter’s estate, one half of the

presumptive legitime received by the three children of the first
marriage shall be collated to Peter’s estate and shall be
imputed as an advance on their respective inheritance from
Peter. Only half of the presumptive legitime is collated to the
estate of Peter because the other half shall be collated to the
estate of his first wife.

2010 A executed a 5-page notarial will before a notary public and No. 3. The legacy given to B’s child is not valid. The WILLS;
three witnesses. All of them signed each and every page of the will. validity of the will is not affected by the legacy in favor of the NOTARIAL

174
 One of the witnesses was B, the father of one of the legatees to the son of an attesting witness to the will. However, the said WILLS;
will. What is the effect of B being a witness to the will? legacy is void under Article 823 NCC. ATTESTING
WITNESSES

1. The will is invalidated ALTERNATIVE ANSWER: No. 2. The will is valid

and effective. Under Article 823 (NCC), the legacy given in
2. The will is valid and effective
favor of the son of an instrumental witness to a will has no

3. The legacy given to B’s child is not valid effect on the validity of the will, the will is valid and effective.

2010 TRUE OR FALSE: FALSE. The other three co-heirs may not at any time WILLS;
demand the partition of the house and lot since it was expressly PROHIBITION
X, a widower, died leaving a will stating that the house and
provided by the decedent in his will that the same cannot be TO PARTITION
lot where he lived cannot be partitioned for as long as the youngest
partitioned will his youngest child desire to stay there. Article
of his four children desires to stay there. As coheirs and co-owners,
1083 of the New Civil Code allows the decedent to prohibit,
the other three may demand partition anytime.
by will, the partition of a property in his estate for a period of
no longer than 20 years no matter what his reason may be.
Hence, the three coheirs cannot demand its partition at any
time but only after 20 years from the death of their father.
Even if the deceased parent did not leave a will, if the house
and lot constituted their family home, Article 159 of the
Family Code prohibits its partition for a period of ten years, or
for as long as there is a minor beneficiary living in the family
home.

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2010 O, owner of Lot A, learning that Japanese soldiers may have No. 4. None of the Above. HIDDEN
buried gold and other treasures at the adjoining vacant Lot B TREASURE
belonging to spouses X & Y, excavated in Lot B where she
succeeded in unearthing gold and precious stones. How will the The general rule is that the treasure shall belong to the
treasures found by O be divided? (1%) spouses X and Y, the owner of Lot B. Under Article 438
(NCC), the exception is that when the discovery of a hidden
treasure is made on the property of another and by chance, one
1. 100% to O as finder half thereof shall belong to the owner of the land and the other
half is allowed to the finder. In the problem, the finding of the
2. 50% to O and 50% to the spouses X and Y
treasure was not by chance because O knew that the treasure

3. 50% to O and 50% to the state was in lot B. While a trespasser is also not entitled to any
share, and there is no indication in the problem whether or not
4. None of the above O was a trespasser, O is not entitled to a share because the
finding was not ―by chance.‖

2010 X was the owner of an unregistered parcel of land in B-2 has the better title. This is not a case of double sale DOUBLE SALES
Cabanatuan City. As she was abroad, she advised her sister Y via since the first sale was void. The law provides that when a sale
overseas call to sell the land and sign a contract of sale on her of a piece of land or any interest therein is through an agent,
behalf. Y thus sold the land to B1 on March 31, 2001 and executed the authority of the latter shall be in writing; otherwise, the
a deed of absolute sale on behalf of X. B1 fully paid the purchase sale shall be void (Art. 1874 NCC). The property was sold by
price. B2, unaware of the sale of the land to B1, signified to Y his Y to B1 without any written authority from the owner X.
interest to buy it but asked Y for her authority from X. Without Hence, the sale to B1 was void.
informing X that she had sold the land to B1, Y sought X for a

176
 written authority to sell.

ALTERNATIVE SUGGESTED ANSWER: Under the

facts, B-1 has a better right to the land. Given the fact that the
X e-mailed Y an authority to sell the land. Y thereafter sold
Deed of Sale in favor of B1 and B2 are not inscribed in the
the land on May 1, 2001 to B2 on monthly installment basis for two
Registry of Deeds, the case is governed by Article 1544 of the
years, the first installment to be paid at the end of May 2001. Who
NCC which provides that in case of double sales of an
between B1 and B2 has a better right over the land? Explain.
immovable property, the ownership shall pertain to the person
who in good faith was first in possession and in the absence
thereof to the person who presents the oldest title, provided
there is good faith.

In a case, the Supreme Court has held that in a sale of

real estate the execution of a notarial document of sale is
tantamount to delivery of the possession of the property sold.
Ownership of the land therefore pertains to the 1st buyer. It
may also be mentioned that under 3344 no instruments or deed
establishing, transmitting, acknowledging, modifying, or
extinguishing right to real property not registered under Act
496 shall be valid except as between the parties. Thus, the
Deed of Sale of B2 has no binding effect on B1.

2010 X was the owner of an unregistered parcel of land in B-2 has the better title. This is not a case of double sale AGENCY;

177
Cabanatuan City. As she was abroad, she advised her sister Y via since the first sale was void. The law provides that when a sale AUTHORITY TO
overseas call to sell the land and sign a contract of sale on her of a piece of land or any interest therein is through an agent, SELL
behalf. Y thus sold the land to B1 on March 31, 2001 and executed the authority of the latter shall be in writing; otherwise, the
a deed of absolute sale on behalf of X. B1 fully paid the purchase sale shall be void (Art. 1874 NCC). The property was sold by
price. B2, unaware of the sale of the land to B1, signified to Y his Y to B1 without any written authority from the owner X.
interest to buy it but asked Y for her authority from X. Without Hence, the sale to B1 was void.
informing X that she had sold the land to B1, Y sought X for a
ALTERNATIVE SUGGESTED ANSWER: Under the
written authority to sell.
facts, B-1 has a better right to the land. Given the fact that the
Deed of Sale in favor of B1 and B2 are not inscribed in the
Registry of Deeds, the case is governed by Article 1544 of the
X e-mailed Y an authority to sell the land. Y thereafter sold
NCC which provides that in case of double sales of an
the land on May 1, 2001 to B2 on monthly installment basis for two
immovable property, the ownership shall pertain to the person
years, the first installment to be paid at the end of May 2001. Who
who in good faith was first in possession and in the absence
between B1 and B2 has a better right over the land? Explain.
thereof to the person who presents the oldest title, provided
there is good faith.

In a case, the Supreme Court has held that in a sale of

real estate the execution of a notarial document of sale is
tantamount to delivery of the possession of the property sold.
Ownership of the land therefore pertains to the 1st buyer. It
may also be mentioned that under 3344 no instruments or deed
establishing, transmitting, acknowledging, modifying, or
extinguishing right to real property not registered under Act
178
 496 shall be valid except as between the parties. Thus, the
Deed of Sale of B2 has no binding effect on B1.

2010 A, B, and C entered into a partnership to operate a A. The two remaining partners, A and B, are liable. PARTNERSHIP
restaurant business. When the restaurant had gone past break-even When any partners dies and the business is continued without DISSOLUTION;
stage and started to garner considerable profits, C died. A and B any settlement of accounts as between him or his estate, the LIABILITY OF
continued the business without dissolving the partnership. They in surviving partners are held liable for continuing the business PARTNERS
fact opened a branch of the restaurant, incurring obligations in the despite the death of C (Articles 1841, 1785, par 2 and 1833 of
process. Creditors started demanding for the payment of their the New Civil Code).
obligations.

B. Creditors can file the appropriate actions, for

a. Who are liable for the settlement of the partnership’s instance, an action for the collection of sum of money against
obligations? Explain? the ―partnership at will‖ and if there are no sufficient funds,
the creditors may go after the private properties of A and B
(Articles 816, NCC). Creditors may also sue the estate of C.

b. What are the creditors’ recourse/s? Explain The estate is not excused from the liabilities of the partnership
even if C is dead already but only up to the time that he
remained a partner (Article 1829, 1835, par.2; NCC, Testate
Estate of Mota v. Serra, 47 Phil. 464 [1925]). However, the
liability of C’s individual property shall be subject first to the
payment of his separate debts (Article 1835, NCC).

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2010 Define, Enumerate or Explain. Guaranty and Suretyship distinguished: GUARANTY VS
SURETY
1. The obligation in guaranty is secondary; whereas in
suretyship, it is primary.
What is the difference between "guaranty" and
"suretyship"? 2. In guaranty, the undertaking is to pay if the principal
debtor cannot pay; whereas in suretyship, the undertaking is to
pay if the principal debtor does not pay.

3. In guaranty, the guarantor is entitled to the benefit of

excussion; whereas in suretyship the surety is not so entitled.

4. Liability in guaranty depends upon an independent

agreement to pay the obligation of the principal if he fails to do
so; whereas in suretyship, the surety assumes liability as a
regular party.

5. The guarantor insures the solvency of the principal

debtor; whereas the surety insures the debt. 6. In guaranty, the
guarantor is subsidiarily liable; whereas, in a Suretyship, the
surety binds himself solidarily with the principal debtor. (Art.
2047, Civil Code).

2010 On May 5, 1989, 16-year old Rozanno, who was issued a A. At the time the incident occurred in May 1989, LIABILITY;
student permit, drove to school a car, a gift from his parents. On Rozanno was still a minor. Being a minor, Article 218 of the SCHOOL,
even date, as his class was scheduled to go on a field trip, his Family Code applies. Pursuant to Article 218, the school, its SCHOOL
180
teacher requested him to accommodate in his car, as he did, four (4) administrators and teachers shall be liable for the acts of the ADMINISTRATO
of his classmates because the van rented by the school was too minor Rozanno because of the special parental authority and RS, TEACHERS
crowded. On the way to a museum which the students were responsibility that they exercise over him. This authority
scheduled to visit, Rozanno made a wrong maneuver, causing a applies to all authorized activities whether inside or outside the
collision with a jeepney. One of his classmates died. He and the premises of the school, entity or institution. The field trip, on
three (3) others were badly injured. which occasion Rozanno drove the car, was an authorized
activity, and, thus, covered by the provision. Furthermore, the
parents of Rozanno are subsidiarily liable pursuant to Article

a. Who is liable for the death of Rozanno’s classmate and 219 (FC), and principally liable under Article 221 (FC) if they
the injuries suffered by Rozanno and his 3 other classmates? were negligent.
Explain.

B. With respect to the damages cause to the jeepney,

b. How about the damage to the jeepney? Explain. only Rozanno should be held liable because his negligence or
tortuous act was the sole, proximate, and immediate cause
thereof.

c. Under the same facts, except the date of occurrence of the

incident, this time in mid-1994, what would be your answer?
Explain. C. Since Rozanno was 16 years old in 1989, if the
incident happened sometime in the middle of 1994, Rozanno
would have been 21 years old at that time. Hence, he was
already of legal age. The law reducing the age of majority to
18 years took effect in December 1989.

181
 Being of legal age, Articles 218, 219 and 221 of the
Family Code are no longer applicable. In such case, only
consequences of his act unless the school or his parents were
themselves also negligent and such negligence contributed to
the happening of the incident. In that event, the school or his
parents are not liable under Article 218, 219 or 221 of the
Family Code, but will be liable under the general provisions of
the Civil Code on quasi-delict.

2010 Define quasi tort. Who are the persons liable under quasi Quasi-tort is a legal concept upholding the doctrine that QUASI-TORT
torts and what are the defenses available to them? some legal duty exists that cannot be classified strictly as a
personal duty (that is, resulting in a tort), nor as a contractual
duty (thus resulting in a breach of contract) but rather some

Note: It is recommended that the examiner exercise other kind of duty recognizable by the law. ―Tort‖ or
leniency and liberality in grading the answers given to this ―Quasi-Tort‖ is an Anglo American or Common Law
question. The term quasi-tort is not a part of legal developments in concept, while ―Delict‖ or ―Quasi-Delict‖ is a Civil Law
civil law. In Philippine legal tradition, quasi-delict has been treated concept. (Wikipedea Encyclopedia).
as the closest civil law equivalent of the common law tort. In fact,
in a number of Supreme Court decisions, the two terms have been
considered as synonymous. In reality, however, the common law SUGGESTED ANSWER: Quasi-tort is considered as
tort is much broader in scope than the civil law quasi-delict. th e equivalent of quasidelict. Hence, the rules of the latter
pertaining to persons who can be held liable and their defenses

182
 would also apply.

In recent developments in common law, the concept of

quasi-torts can be considered as the closest common law equivalent
Those liable for quasi-delict include: 1. The tortfeasor
of the civil law concept of quasi-delict. This is because it is argued
or the person causing damage to another through fault or
that the growing recognition of quasi-torts as a source of obligation
negligence (Article 2176 NCC); and 2. Persons vicariously
is hinged on the acceptance at common law of the civil law
liable under Article 2180 (NCC). The defenses available
principles of quasi-delict.
include: a. That the defendant was not negligent or that he
exercised due diligence (Art. 2176 NCC). b. That although the
defendant is negligent, his negligence is not the proximate
cause of the injury (Art. 2179 NCC) c. That the plaintiff’s own
negligence was the immediate and proximate cause of his
injury (Art. 21799 NCC). d. That the person vicariously liable
has observed all the diligence of a good father of a family to
prevent damage (2180 NCC). e. That the cause of action has
prescribed after the lapse of 4 years (Article 1146 NCC). The
fact that the plaintiff had committed contributory negligence is
a partial defense (Article 2179 NCC)

2011 When does a declaration of absence of a missing person C. 6 months after the publication of the declaration of DECLARATION
take effect? absence. OF ABSENCE OF
A MISSING
PERSON
A. Immediately from the issuance of the declaration of

183
 absence.

B. 3 months after the publication of the declaration of

absence.

C. 6 months after the publication of the declaration of

absence.

D. 15 days from the issuance of the declaration of absence

2011 The authority that school administrators exercise over D. special parental authority PARENTAL
school children under their supervision, instruction, or custody is AUTHORITY
called

A. legal parental authority.

B. substitute parental authority.

C. ordinary parental authority.

D. special parental authority

2011 Can future inheritance be the subject of a contract of sale? C. No, since the seller owns no inheritance while his SALES
predecessor lives.

184
 A. No, since it will put the predecessor at the risk of harm
from a tempted buyer, contrary to public policy.

B. Yes, since the death of the decedent is certain to occur.

C. No, since the seller owns no inheritance while his

predecessor lives.

D. Yes, but on the condition that the amount of the

inheritance can only be ascertained after the obligations of the
estate have been paid.

2011 Upon the proposal of a third person, a new debtor A. The original debtor is freed of liability since OBLIGATIONS
substituted the original debtor without the latter’s consent. The novation took place and this relieved him of his obligation. AND CONTRACT
creditor accepted the substitution. Later, however, the new debtor
became insolvent and defaulted in his obligation. What is the effect
of the new debtor’s default upon the original debtor?

A. The original debtor is freed of liability since novation

took place and this relieved him of his obligation.

B. The original debtor shall pay or perform the obligation

with recourse to the new debtor.

C. The original debtor remains liable since he gave no

185
 consent to the substitution.

D. The original debtor shall pay or perform 50% of the

obligation to avoid unjust enrichment on his part.

2011 Lennie bought a business class ticket from Alta Airlines. A. No, the breach of contract may in fact be tortious as CONTRACT
As she checked in, the manager downgraded her to economy on the when it is tainted as in this case with arbitrariness, gross bad
ground that a Congressman had to be accommodated in the faith, and malice.
business class. Lennie suffered the discomfort and embarrassment
of the downgrade. She sued the airlines for quasi-delict but Alta
Airlines countered that, since her travel was governed by a contract
between them, no quasi-delict could arise. Is the airline correct?

A. No, the breach of contract may in fact be tortious as

when it is tainted as in this case with arbitrariness, gross bad faith,
and malice.

B. No, denying Lennie the comfort and amenities of the

business class as provided in the ticket is a tortious act.

C. Yes, since the facts show a breach of contract, not a

quasi-delict.

D. Yes, since quasi-delict presupposes the absence of a pre-

186
 existing contractual relation between the parties.

2011 Which of the following is an indispensable requirement in C. have legal or equitable title to the property. PROPERTY
an action for “quieting of title” involving real property? The
plaintiff must

A. be in actual possession of the property. B. be the

registered owner of the property.

C. have legal or equitable title to the property.

D. be the beneficial owner of the property.

2011 X and Y were to marry in 3 months. Meantime, to express C. No, since the donation and its acceptance are not in DONATION
his affection, X donated a house and lot to Y, which donation X a public instrument.
wrote in a letter to Y. Y wrote back, accepting the donation and
took possession of the property. Before the wedding, however, Y
suddenly died of heart attack. Can Y’s heirs get the property?

A. No, since the marriage did not take place.

B. Yes, since all the requisites of a donation of an

187
 immovable are present.

C. No, since the donation and its acceptance are not in a

public instrument. D. Yes, since X freely donated the property to Y
who became its owner.

2011 Rene and Lily got married after a brief courtship. After one A. She can file an action for annulment of marriage on ANNULMENT OF
month, Lily discovered that while Rene presented himself as a ground of fraud. MARRIAGE
macho man he was actually gay. He would not go to bed with her.
He kept obscene magazines of nude men and always sought the
company of handsome boys. What legal remedy does Lily have?

A. She can file an action for annulment of marriage on

ground of fraud.

B. She can seek a declaration of nullity of the marriage

based on Rene’s psychological incapacity.

C. She can go abroad and file for divorce in a country that

can grant it.

D. She has none since she had the opportunity to examine

the goods and freely entered into the marriage.

188
2011 Lucio executed a simple deed of donation of P50 million on D. No, A’s share goes to his heirs since the donation DONATION
time deposit with a bank in favor of A, B, C, D, and E, without did not provide for reversion to donor.
indicating the share of each donee. All the donees accepted the
donation in writing. A, one of the donees, died. Will B, C, D, and
E get A’s share in the money?

A. Yes, accretion will automatically apply to the joint-

donees in equal shares.

B. Yes, since the donor’s intention is to give the whole of

P50 million to the jointdonees in equal shares.

C. No, A”s share will revert to the donor because accretion

applies only if the joint-donees are spouses.

D. No, A’s share goes to his heirs since the donation did not
provide for reversion to donor.

2011 Raul, Ester, and Rufus inherited a 10-hectare land from A. Yes, they may be subrogated to Raffy’s right by SUCCESSION
their father. Before the land could be partitioned, however, Raul reimbursing to him within the required time what he paid Raul.
sold his hereditary right to Raffy, a stranger to the family, for P5
million. Do Ester and Rufus have a remedy for keeping the land
within their family?

189
 A. Yes, they may be subrogated to Raffy’s right by
reimbursing to him within the required time what he paid Raul.

B. Yes, they may be subrogated to Raffy’s right provided

they buy him out before he registers the sale.

C. No, they can be subrogated to Raffy’s right only with his

conformity.

D. No, since there was no impediment to Raul selling his

inheritance to a stranger.

2011 When one exercises a right recognized by law, knowing that D. abuse of rights. TORTS AND
he thereby causes an injustice to another, the latter is entitled to DAMAGES
recover damages. This is known as the principle of

A. res ipsa loquitur.

B. damnum absque injuria.

C. vicarious liability.

D. abuse of rights.

190
2011 Which of the following is NOT a basis for rendering a A. Its cause comes from the guilt of a spouse in a legal INHERITANCE;
disinheritance defective or imperfect? separation case, the innocent-spouse having died. SUCCESSION

A. Its cause comes from the guilt of a spouse in a legal

separation case, the innocent-spouse having died.

B. The truth of its cause is denied and not sufficiently

proved by evidence.

C. Its cause is not authorized by the law. D. Its cause is not

specified.

2011 Manuel came to Manila and married Marianne. Unknown B. Yes, since the non-disclosure of that crime is the MARRIAGE;
to Marianne, Manuel had been previously convicted in Palawan of equivalent of fraud, which is a ground for annulment. ANNULMENT
theft and served time for it. After Marianne learned of his previous
conviction, she stopped living with him. Can Marianne seek the
annulment of the marriage based on Manuel’s nondisclosure of his
previous crime?

A. No, since the assumption is that marriage forgives all

past wrongs.

191
 B. Yes, since the non-disclosure of that crime is the
equivalent of fraud, which is a ground for annulment.

C. No, in case of doubt, the law must be construed to

preserve the institution of marriage.

D. No, since Manuel already served the penalty for his

crime.

2011 Arthur and Helen, both Filipinos, got married and had 2 A. The children born before the divorce are legitimate DIVORCE
children. Arthur later worked in Rome where he acquired Italian but those born after it are not since Arthur got the divorce
citizenship. He got a divorce from Helen in Rome but, on returning when he had ceased to be a Filipino.
to the Philippines, he realized his mistake, asked forgiveness of his
wife, and resumed living with her. They had 2 more children.
What is the status of their 4 children?

A. The children born before the divorce are legitimate but

those born after it are not since Arthur got the divorce when he had
ceased to be a Filipino.

B. The divorce rendered illegitimate the children born

before it since the marriage that begot them had been nullified.

C. The children born before and after the divorce are all

192
 legitimate since Philippine law does not recognize divorce.

D. All the children are legitimate since they were born of

the same father and mother.

2011 Who can make a donation? A. All persons who can enter into contracts and dispose DONATION
of their property.

A. All persons who can enter into contracts and dispose of

their property.

B. All persons who are of legal age and suffer from no civil
interdiction.

C. All persons who can make a last will and testament.

D. All persons, whether natural or artificial, who own

property.

2011 The liability of the partners, including industrial partners for A. Pro-rata. PARTNERSHIP
partnership contracts entered into in its name and for its account,
when all partnership assets have been exhausted is

A. Pro-rata.

193
 B. Joint.

C. Solidary.

D. Voluntary.

2011 When can a missing person who left someone to administer D. 5 years from the receipt of the last news about him. PROPERTY
his property be declared an absentee by the court? When he has
been missing for

A. 2 years from the receipt of the last news about him.

B. 7 years from the receipt of the last news about him.

C. 10 years from the receipt of the last news about him.

D. 5 years from the receipt of the last news about him.

2011 Which of the following claims against the debtor enjoys C. Taxes due, upon the land or building. PROPERTY
preference over the others with respect to his specific immovable
property and real rights?

A. Unpaid price of real property sold, upon the immovable

194
 property.

B. Mortgage credits recorded in the registry of property,

upon the mortgaged real estate.

C. Taxes due, upon the land or building. D. Expenses for

the preservation and improvement of property, when the law
authorizes reimbursement, upon the preserved or improved
immovable.

2011 When bilateral contracts are vitiated with vices of consent, D. voidable. CONTRACT
they are rendered

A. rescissible.

B. void.

C. unenforceable.

D. voidable.

2011 An agent, authorized by a special power of attorney to sell a B. Valid. AGENCY

land belonging to the principal succeeded in selling the same to a
buyer according to the instructions given the agent. The agent
executed the deed of absolute sale on behalf of his principal two

195
 days after the principal died, an event that neither the agent nor the
buyer knew at the time of the sale. What is the standing of the
sale?

A. Voidable.

B. Valid.

C. Void.

D. Unenforceable

2011 Spouses A and B leased a piece of land belonging to B's C. No, since the land does not belong to A and B, it FAMILY
parents for 25 years. The spouses built their house on it worth cannot qualify as a family
P300,000.00. Subsequently, in a case that C filed against A and B,
home.
the court found the latter liable to C for P200,000.00. When the
sheriff was attaching their house for the satisfaction of the
judgment, A and B claimed that it was exempt from execution,
being a family home. Is this claim correct?

A. Yes, because while B’s parents own the land, they

agreed to have their daughter build her family home on it.

196
 B. No, because there is no judicial declaration that it is a
family home.

C. No, since the land does not belong to A and B, it cannot

qualify as a family

home.

D. Yes, because the A and B’s family actually lives in that

house.

2011 Solomon sold his coconut plantation to Aragon, Inc. for D. The principal shall go to Solomon but the interests PARTNERSHIP
P100 million, payable in installments of P10 million per month to the conjugal partnership.
with 6% interest per annum. Solomon married Lorna after 5
months and they chose conjugal partnership of gains to govern their
property relations. When they married, Aragon had an unpaid
balance of P50 million plus interest in Solomon’s favor. To whom
will Aragon’s monthly payments go after the marriage?

A. The principal shall go to the conjugal partnership but the

interests to Solomon. B. Both principal and interests shall go to
Solomon since they are his exclusive properties.

C. Both principal and interests shall go to the conjugal

197
 partnership since these become due after the marriage.

D. The principal shall go to Solomon but the interests to the

conjugal partnership.

2011 X and Y, although not suffering from any impediment, A. Legitimated. MARRIAGE
cohabited as husband and wife without the benefit of marriage.
Following the birth of their child, the couple got married. A year
after, however, the court annulled the marriage and issued a decree
of annulment. What is the present status of the child?

A. Legitimated.

B. Illegitimate.

C. Natural child.

D. Legitimate.

2011 When A and B married, they chose conjugal partnership of C. The liquidation of a co-ownership applies since the MARRIAGE
gains to govern their property relations. After 3 years, B succeeded annulment brought their property relation under the chapter on
in getting her marriage to A annulled on ground of the latter’s property regimes without marriage.
psychological incapacity. What liquidation procedure will they
follow in disposing of their assets?

198
 A. They will follow the rule governing the liquidation of a
conjugal partnership of gains where the party who acted in bad
faith forfeits his share in the net profits. B. Since the marriage has
been declared void, the rule for liquidation of absolute community
of property shall be followed. C. The liquidation of a co-ownership
applies since the annulment brought their property relation under
the chapter on property regimes without marriage.

D. The law on liquidation of partnerships applies.

2011 X and Y agreed verbally before their marriage (a) on the A. No, because a marriage settlement to be valid should MARRIAGE
paternity of the illegitimate child of Y and (b) on the economic be in writing.
regime that will govern X and Y’s property relations. Is the verbal
agreement valid?

A. No, because a marriage settlement to be valid should be

in writing.

B. Yes, since ante-nuptial agreements need not be in

writing.

C. No, because a marriage settlement cannot include an

199
 agreement on the paternity of an illegitimate child.

D. Yes, since even if it is not a valid marriage settlement, it

is a valid verbal contract.

2011 Spouses X and Y have a minor daughter, Z, who needs A. grandfather. SUPPORT
support for her education. Both X and Y, who are financially
distressed, could not give the needed support to Z. As it happens,
Z’s other relatives are financially capable of giving that support.
From whom may Z first rightfully demand support? From her

A. grandfather.

B. brother.

C. uncle.

D. first cousin.

2011 Fidel, a Filipino with fair complexion, married Gloria. C. Legitimate, because the child was born within a MARRIAGE;
Before the marriage, Gloria confessed to Fidel that she was two- valid marriage. FAMILY;
month pregnant with the child of a black African who had left the ILLEGITIMATE,
country for good. When the child was born, Fidel could not accept LEGITIMATE
it being too black in complexion. What is the status of the child? CHILDREN

200
 A. Illegitimate, because Gloria confessed that the child is
not Fidel’s.

B. Illegitimate, because by the color of its skin, the child

could not possibly be that of Fidel.

C. Legitimate, because the child was born within a valid

marriage.

D. Legitimate, because Fidel agreed to treat the child as his

own after Gloria told him who the father was.

2011 The husband’s acts of forcibly ejecting his wife without just C. constructive abandonment. FAMILY
cause from the conjugal dwelling and refusing to take her back
constitutes

A. desertion.

B. recrimination.

C. constructive abandonment.

D. de facto separation.

201
2011 In his will, the testator designated X as a legatee to receive B. a modal institution. WILLS
P2 million for the purpose of buying an ambulance that the
residents of his Barangay can use. What kind of institution is this?

A. a fideicomissary institution.

B. a modal institution.

C. a conditional institution.

D. a collective institution.

2011 X insured himself for P5 million, designating Y, his wife, as C. No, X’s designation of Y is revoked by operation of ANNULMENT OF
his sole beneficiary. The designation was irrevocable. A few years law upon the annulment of their marriage based on Y’s fault. MARRIAGE
later, X had their marriage annulled in court on the ground that Y
had an existing prior marriage. X subsequently died, Is Y entitled
to the insurance benefits?

A. Yes, since the insurance was not dependent on the

marriage.

B. Yes, since her designation as beneficiary was

202
 irrevocable.

C. No, X’s designation of Y is revoked by operation of law

upon the annulment of their marriage based on Y’s fault.

D. Yes, since without judicial revocation, X’s designation

of Y remains valid and binding.

2011 May a spouse freely donate communal or conjugal property C. Yes, provided the donation is moderate and intended PROPERTY
without the consent of the other? for charity or family rejoicing.

A. Absolutely not, since the spouses co-own such property.

B. Yes, for properties that the family may spare, regardless

of value.

C. Yes, provided the donation is moderate and intended for

charity or family rejoicing. D. Yes, in a donation mortis causa that
the donor may still revoke in his lifetime.

2011 The decedent died intestate leaving an estate of P10 million. C. Marlon gets 1/2 and Cecilia gets 1/2. INTESTATE;
He left the following heirs: a) Marlon, a legitimate child and b) HEIRS
Cecilia, the legal spouse. Divide the estate.

203
 A. Marlon gets 1/4 and Cecilia gets 3/4.

B. Marlon gets 2/3 and Cecilia 1/3.

C. Marlon gets 1/2 and Cecilia gets 1/2.

D. Marlon gets 3/4 and Cecilia 1/4.

2011 Contracts take effect only between the parties or their A. Relativity of contracts. CONTRACTS
assigns and heirs, except where the rights and obligations arising
from the contract are not transmissible by their nature, by
stipulation, or by provision of law. In the latter case, the assigns or
the heirs are not bound by the contracts. This is known as the
principle of

A. Relativity of contracts.

B. Freedom to stipulate.

C. Mutuality of contracts.

D. Obligatory force of contracts.

204
2011 A buyer ordered 5,000 apples from the seller at P20 per A. He can accept all 6,000 apples and pay the seller at SALES
apple. The seller delivered 6,000 apples. What are the rights and P20 per apple.
obligations of the buyer?

A. He can accept all 6,000 apples and pay the seller at P20
per apple.

B. He can accept all 6,000 apples and pay a lesser price for
the 1,000 excess apples. C. He can keep the 6,000 apples without
paying for the 1,000 excess since the seller delivered them anyway.

D. He can cancel the whole transaction since the seller

violated the terms of their agreement.

2012 Roberto was in Nikko Hotel when he bumped into a friend No, Roberto’s action will not prosper. From the facts HUMAN
who was then on her way to a wedding reception being held in said given in the problem, the wedding coordinator did not abuse RELATIONS;
hotel. Roberto alleged that he was then invited by his friend to join her right when she asked her to leave the wedding reception ABUSE OF
her at the wedding reception and carried the basket full of fruits because he was not in the guest list. Hotel Nikko could not be RIGHT
which she was bringing to the affair. At the reception, the wedding held liable for damages as its liability springs from the liability
coordinator of the hotel noticed him and asked him, allegedly in a of its employee (Nikko Hotel Manila Garden v. Reyes, G.R.
loud voice, to leave as he was not in the guest list. He retorted that No. 154259, February 28, 2005).
he had been invited to the affair by his friend, who however denied
doing so. Deeply embarrassed by the incident, Roberto then sued

205
the hotel for damages under Articles 19 and 21 of the Civil Code. ALTERNATIVE ANSWER: It depends, while the
Will Roberto’s action prosper? Explain. hotel has the right to exclude an uninvited guest from the
wedding reception, that does not give the hotel the license to
humiliate Roberto. If the wedding coordinator of the hotel
acted wrongfully e.g. with the abuse of right, unfairly, or in a
manner that exposed Roberto to unnecessary ridicule or shame,
his action will prosper, Otherwise, Roberto’s action will not
prosper.

The Hotel is liable for the wrongful acts of its

employees.

Comment: The facts of the problem are almost similar

to the facts of Nikko Hotel v. Roberto Reyes, G.R. No.
154259, February 28, 2005. In the said case, however, there is
a categorical finding that the hotel employee did not expose
the complainant to ridicule shame or embarrassment, hence,
did not commit any abuse of right. The present problem makes
no statement of that finding, on the contrary, the problem
states that is a mere allegation.

206
2012 Liwayway Vinzons-Chato was then the Commissioner of Yes. As a general rule, a public officer is not liable for HUMAN
Internal Revenue while Fortune Tobacco Corporation is an entity acts performed in the discharge of his duties. the exceptions RELATIONS;
engaged in the manufacture of different brands of cigarettes, among are when he acted with malice, bad faith or gross negligence in LIABILITY OF
which are "Champion," "Hope," and "More" cigarettes. the perofmance of his duty, or when his act is in violation of PUBLIC
the Constitutionally guaranteed rights and liberties of a person OFFICERS TO
under Article 32 of the NCC. The public officer is not RENDER AID OR
Fortune filed a complaint against Vinzons-Chato to recover automatically considered to have violated the rights or liberties PROTECTION
damages for the alleged violation of its constitutional rights arising of a person simply because the rule of the public officer issued
from Vinzons-Chato’s issuance of Revenue Memorandum Circular was declared invalid by the Court. The complainant must still
No. 37-934 (which re-classified Fortune cigarettes as locally allege and prove the particular injury or prejudice he has
manufactured with foreign brands and thereby imposed higher suffered from the violation of is constitutional right by the
taxes), which the Supreme Court later declared invalid. issuance of the invalidated rule.

Vinzons-Chato filed a Motion to Dismiss arguing that she The problem does not state any fact from which any
cannot be held liable for damages for acts she performed while in malice, bad faith or gross negligence on the part of Vinzons-
the discharge of her duties as BIR Commissioner. Is she correct? Chato may be inferred, or the particular injury or prejudice the
Explain. complainant may have suffered as a result of the violation of
his constitutional rights, Hence, she cannot be held liable. The
facts presented are similar to the facts of the case of Vinzonz-
Chato v. Fortune. G.R. No. 141309. December 23, 2008.

2012 Ricky donated P 1 Million to the unborn child of his Yes, Ricky is entitled to recover the P1 Million. The NATURAL

207
 pregnant girlfriend, which she accepted. After six (6) months of NCC considers a fetus a person for purposes favorable to it PERSONS;
pregnancy, the fetus was born and baptized as Angela. However, provided that it is born later in accordance with the provisions VALIDITY OF
Angela died 20 hours after birth. Ricky sought to recover the P 1 of the NCC. While the donation is favorable to the fetus, the DONATIONS TO
Million. Is Ricky entitled to recover? Explain. donation did not take effect because the fetus was nit born in AN UNBORN
accordance with the NCC. CHILD

To be considered born, the fetus that had an intra

uterine life of less than seven (7) months should live for 24
hours from its complete delivery from the mother’s womb.
Since Angela had an intra-uterine life of less than 7 months but
did not live for 24 hours, she was not considered born and,
therefore, did not become a person. Not being a person, she
had no juridical capacity to be a donee, hence, the donation to
her did not take effect. The donation not being effective, the
amount donated may be recovered. To retain it will be unjust
enrichment.

2012 Cipriano and Lady Miros married each other. Lady Miros Yes, he is capacitated to remarry. While the second MARRIAGE;
then left for the US and there, she obtained American citizenship. paragraph of Article 26 of the Family Code is applicable only DIVORCE
Cipriano later learned all about this including the fact that Lady to a Filipino who married a Foreigner at the time of the DECREE
Miros has divorced him in America and that she had remarried marriage, the Supreme Court ruled in the case of Republic of OBTAINED BY
there. He then filed a petition for authority to remarry, invoking the Philippines v. Orbecido G.R. No. 154380, 5 October 2005, FORMER-
Par. 2, Art. 26 of the Family Code. Is Cipriano capacitated to re- that the said provision equally applies to a Filipino who FILIPINO

208
 marry by virtue of the divorce decree obtained by his Filipino married another Filipino, at the time of the marriage, but who SPOUSE
spouse who was later naturalized as an American citizen? Explain. was already a foreigner when the divorce was obtained.

2012 The petitioner filed a petition for declaration of nullity of The annulment cannot be granted soley on the basis of MARRIAGE;
marriage based allegedly on the psychological incapacity of the the psychological report. For the report to prove the DECLARATION
respondent, but the psychologist was not able to personally psychological incapacity of the respondent. It is required that OF NULLITY;
examine the respondent and the psychological report was based the psychologist should personally examine the respondent and PSYCHOLOGICA
only on the narration of petitioner. Should the annulment be the psychological report should be based on the psychologist’s L INCAPACITY
granted? Explain. independent assessment of the facts as to whether or not the
respondent is psychologically incapacitated. Since the
psychologist did not personally examine the respondent, and
his report is based solely on the story of the petitioner who has
an interest in the outcome of the petition, the marriage cannot
be annulled on the ground of respondent’s psychological
incapacity if the said report is the only evidence of the
respondent’s psychological incapacity.

2012 A petition for declaration of nullity of a void marriage can Yes, I agree. Under the Rules promulgated by the MARRIAGE;
only be filed by either the husband or the wife? Do you agree? Supreme Court, a direct action for declaration of nullity may DECLARATION
Explain your answer. only be filed by any of the spouses. OF NULLITY;
WHO MAY FILE

ALTERNATIVE ANSWER: No, I do not agree. There

are others who may file a petition for declaration of nullity

209
 such as the other spouse in bigamous marriages.

2012 After they got married, Nikki discovered that Christian was Although the action for legal separation has not yet MARRIAGE;
having an affair with another woman. But Nikki decided to give it a prescribed, the prescriptive period being five years, if LEGAL
try and lived with him for two (2) years. After two (2) years, Nikki Christian’s affair with another woman was ended when Nikki SEPARATION;
filed an action for legal separation on the ground of Christian’s decided to live with him again. Nikki’s action will not prosper CONDONATION
sexual infidelity. Will the action prosper? Explain. on account of condonation. However, if such affair is still
continuing, Nikki’s action would prosper because the action
will surely be within five (5) years from the commission of the
latest act of sexual infidelity. Every act of sexual liaison is a
ground for legal separation.

2012 Maria, wife of Pedro, withdrew P 5 Million from their It depends. If the value of the building is more than the PROPERTY
conjugal funds. With this money, she constructed a building on a value of the land, the building is conjugal and the land RELATIONS;
lot which she inherited from her father. Is the building conjugal or becomes conjugal property under Article 120 of the Family CONJUGAL
paraphernal? Reasons. Code. This is a case of reverse accession, where the building is PARTNERSHIP
considered as the principal and the land, the accessory. If, on OF GAINS;
the other hand, the value of the land is more than the value of PROPERTIES
the building, then the ordinary rule of accession applies where COVERED
the land is the principal and the building, the accessory. In
such case, the land remains paraphernal property and the
building becomes paraphernal property.

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 Note: The rule on reverse accession is applicable only
to the regime of Conjugal Partnership of Gains in both the
Family Code and the New Civil Code. The foregoing answer
assumes that the CPG is the regime of the property relations of
the spouses.

2012 Jambrich, an Austrian, fell in-love and lived together with It depends. On the assumption that the Family Code is PROPERTY
Descallar and bought their houses and lots at AgroMacro the applicable law, the ownership of the properties depends on RELATIONS;
Subdivision. In the Contracts to Sell, Jambrich and Descallar were whether or not Jambrich and Descallar are capacitated to marry UNIONS
referred to as the buyers. When the Deed of Absolute Sale was each other during their cohabitation, and whether or not both WITHOUT
presented for registration before the Register of Deeds, it was have contributed funds for the acquisition of the properties. MARRIAGE
refused because Jambrich was an alien and could not acquire
alienable lands of the public domain. After Jambrich and Descallar
separated, Jambrich purchased an engine and some accessories for If both of them were capacitated to marry each other,
his boat from Borromeo. To pay for his debt, he sold his rights and Article 147-Coownership will apply to their property relations
interests in the Agro-Macro properties to Borromeo. Borromeo and the properties in question are owned by them in equal
discovered that titles to the three (3) lots have been transfereed in shares even though all the funds used in acquiring the
the name of Descallar. Who is the rightful owner of the properties? properties came only from the salaries or wages, or the income
Explain. of Jambrich from his business or profession. In such a case,
while Jambrich is disqualified to own any part of the
properties, his subsequent transfer of all his interest therein to
Borromeo, a Filipino, was valid as it removed the
disqualification. In such case, the properties are owned by

211
Borromeo and Descallar in equal shares.

If, on the other hand, Jambrich and Descallar were not

capacitated to marry each other, Article 148Coownership
governs their property relations. Under this regime, Jambrich
and Descallar are co-owners of the properties but only if both
of them contributed in their acquisition. If all funds used in
acquiring the properties in question came from Jambrich, the
entire property is his even though he is disqualified from
owning it. His subsequent transfer to Borromeo, however, is
valid as it is removed the disqualification. In such case, all of
the properties are owned by Borromeo. If, on the other hand,
Descallar contributed to their acquisition, the properties are co-
owned by Descallar and Borromeo in proportion to the
respective contributions of Descallar and Jambrich.

Note: The factsof the problem are not exactly the same
as in the case of Borromeo vs. Descallar, G.R. No. 159310,
February 24, 2009, hence, the difference in the resulting
answer.

212
2012 G and B were married on July 3, 1989. On March 4, 2001, A. Since the marriage was declared void ab initio in PROPERTY
the marriage, which bore no offspring, was declared void ab initio 2001, no Absolute Community or Conjugal Partnership was RELATIONS;
under Article 36 of the Family Code. At the time of the dissolution never established between B and G. Their property relation is MARRIAGES
of the marriage, the couple possessed the following properties: - a governed by a ―special co-ownership‖ under that Article 147, DECLARED
house and lot acquired by B on August 3, 1988, one third (1/3) of wages and salaries of the ―former spouses‖ earned during VOID AB INTIO
the purchase price (representing downpayment) of which he paid; their cohabitation shall be owned by them in equal shares
one third (1/3) was paid by G on February 14, 1990 out of a cash while propertied acquired through their work or industry shall
gift given to her by her parents on her graduation on April 6, 1989; be owned by them in proportion to their respective
and the balance was paid out of the spouses’ joint income; and - an contributions. Care and maintenance of the family is
apartment unit donated to B by an uncle on June 19, 1987. recognized as a valuable contribution. In the absence of proof
as to the value of their respective contributions, they shall
share equally.

a. Who owns the foregoing properties? Explain.

b. If G and B had married on July 3, 1987 and their

If ownership over the house and lot was acquired by B
marriage was dissolved in 2007, who owns the properties? Explain.
on August 3, 1988 at the time he bought it on installment
before he got married, he shall remain owner of the house and
lot but he must reimburse G for all the amounts she advanced
to pay the purchase price and for her one-half share in the last
payment from their joint income. In such case, the house and
lot were not acquired during their cohabitation, hence, are not
coowned by B and G.

213
 But if the ownership of the house and lot was acquired
during the cohabitation, the house and lot will be owned as
follows:

1. 1/3 of the house and lot is owned by B, he is an

undivided co-owner to that extent for his contribution in its
acquisition in the form of the down payment he made before
the celebration of the marriage. The money he used to pay the
down payment was not earned during the cohabitation, hence,
it is his exclusive property. 2. 1/3 of the house and lot is
owned by G. She is an undivided co-owner to the extent for
her contribution in its acquisition when she paid 1/3 of the
purchase price using the gift from her parents. Although the
gift was acquired by G during her cohabitation with B, it is her
exclusive property. It did not consist of wage or salary or fruit
of her work or industry. 3. 1/3 of the house is co-owned by B
and G because the payment came from their co-owned funds,
i.e., their joint income during their cohabitation which is
shared by them equally in the absence of any proof to the
contrary.

214
 After summing up their respective shares, B and G are
undivided co-owners of the house and lot in equal shares.

As to the apartment, it is owned exclusively by B

because he acquired it before their cohabitation. Even if he
acquired it during their cohabitation it will still be his
exclusive property because it did not come from his wage or
salary, or from his work or industry. It was acquired
gratuitously from his uncle.

B. The answer is the same as in letter A. Since the

parties to the marriage which was later declared void ab initio
were capacitated to marry each other, the applicable law under
the New Civil Code was Article 144 of the Family Code.
Hence, the determination of ownership will remain the same as
in question A. And even assuming that the two provisions are
not the same, Articles 147 of the Family Code s still the law
that will govern the property relations of B and G because
under Article 256, the Family Code has retroactive effect
insofar as it does not prejudice or impair vested or acquired

215
 rights under the New Civil Code or other laws. Applying
Article 147 retroactively to the case of G and B will not impair
vested right. Until the declaration of nullity of the marriage
under the Family Code, B and G have not as yet acquired any
vested right over the properties acquired during their
cohabitation.

2012 Spouses Primo and Monina Lim, childless, were entrusted Yes the trial court was correct. At the time the petition ADOPTION;
with the custody of two (2) minor children, the parents of whom for adoptions were filed, petitioner had already remarried. JOINT
were unknown. Eager of having children of their own, the spouses Under the law, the husband and wife shall adopt jointly, except ADOPTION
made it appear that they were the children’s parents by naming in the cases enumerated in the law, the adoption cases of
them Michelle P. Lim and Michael Jude Lim. Subsequently, Michelle and James do not fall in any of the exceptions
Monina married Angel Olario after Primo’s death. She decided to provided in the law where a spouse is permitted to adopt alone,
adopt the children by availing the amnesty given under R.A. 8552 Hence, Monina should adopt jointly with her husband Angel.
to those individuals who simulated the birth of a child. She filed (Adoption of Michelle P. Lim, G.R. Nos. 168992-93, May 21,
separate petitions for the adoption of Michelle, then 25 years old 2009).
and Michael, 18. Both Michelle and Michael gave consent to the
adoption.

The trial court dismissed the petition and ruled that Monina
should have filed the petition jointly with her new husband.
Monina, in a Motion for Reconsideration argues that mere consent
of her husband would suffice and that joint adoption is not needed,

216
 for the adoptees are already emancipated.

Is the trial court correct in dismissing the petitions for

adoption? Explain.

2012 Honorato filed a petition to adopt his minor illegitimate No, the trial court was not correct. There is no law ADOPTION OF
child Stephanie, alleging that Stephanie’s mother is Gemma prohibiting an illegitimate child adopted by his natural father ILLEGIIMATE
Astorga Garcia; that Stephanie has been using her mother’s middle to use as middle name his mother’s surname. The law is silent CHILD; USE OF
name and surname; and that he is now a widower and qualified to s to what middle name an adoptee may use. In the case of In FATHER’S
be her adopting parent. He prayed that Stephanie’s middle name be re: Adoption of Stephanie Nathy Astorga Garcia, G.R. No. SURNAME
changed from "Astorga" to "Garcia," which is her mother’s 148311, March 31, 2005. The Supreme Court ruled that the
surname and that her surname "Garcia" be changed to "Catindig," adopted child may use the surname of the natural born mother
which is his surname. This the trial court denied. Was the trial court as his middle name because ther is no prohibition in the law
correct in denying Hororato’s request for Stephanie’s use of her against it. Moreover, it will also be for the benefit of the
mother’s surname as her middle name? Explain. adopted child who shall preserve his lineage on his mother’s
side and reinforce his right to inherit from his mother and her
family. Lastly, it will make the adopted child conform to the
time-honored Filipino tradition of carrying the mother’s
surname as the person’s middle name.

2012 Ricky and Arlene are married. They begot Franco during No, his opposition is not correct. Arnel cannot inherit IRON BAR RULE
their marriage. Franco had an illicit relationship with Audrey and from Ricky in representation of his father Franco. In
out of which, they begot Arnel. Franco predeceased Ricky, Arlene representation, the representative must not only be a legal heir

217
 and Arnel. Before Ricky died, he executed a will which when of the person he is representing, he must also be a legal heir of
submitted to probate was opposed by Arnel on the ground that he the decedent he seeks to inherit from.
should be given the share of his father, Franco. Is the opposition of
Arnel correct? Why?

While Arnel is a legal heir of Franco, he is not a legal

heir of Ricky because under Article 992 of the NCC, an
illegitimate child has no right to inherit ab intestato from the
legitimate children and relatives of his father or mother. Arnel
is disqualified to inherit from Ricky because Arnel is an
illegitimate child of Franco and Ricky is a legitimate relative
of Franco.

2012 John Sagun and Maria Carla Camua, British citizens at 1. No, the will should not be admitted to probate. Since WILLS; JOINT
birth, acquired Philippine citizenship by naturalization after their the couple are both Filipino citizens. Article 818 and 819 of WILLS
marriage. During their marriage, the couple acquired substantial the NCC shall apply. Said articles prohibits the execution of
landholdings in London and in Makati. Maria begot three (3) joint wills and make them void, even though authorized by the
children, Jorge, Luisito, and Joshur. In one of their trips to London, laws of the country where they were executed.
the couple executed a joint will appointing each other as their heirs
and providing that upon the death of the survivor between them, the
entire estate would go to Jorge and Luisito only but the two (2) 2. Since the joint will is void, all the testamentary
could not dispose of nor divide the London estate as long as they dispositions written therein are also void. However, if the will
live. John and Maria died tragically in the London subway terrorist is valid, the institutions of heirs shall be annulled because
attack in 2005. Jorge and Luisito filed a petition for probate of their Joshur was preterited. He was preterited because he will
parents’ will before a Makati Regional Trial Court. Joshur receive nothing from the will, will receive nothing by

218
 vehemently objected because he was preterited. intestacy, and the facts do not show that he received anything
as an advance on his inheritance. He was totally excluded from
the inheritance of his parents.

1) Should the will be admitted to probate? Explain.

2) Are the testamentary dispositions valid? Explain.

3. Assuming the will of John and Maria is valid, the

3) Is the testamentary prohibition against the division of the testamentary prohibition on the division of the London Estate
London estate valid? Explain. shall be valid but only for 20 years. Under Articles 1083 and
494 of the NCC, a testamentary disposition of the testator
cannot forbid the partition of all or part of his estate for a
period longer than twenty (20) years.

2012 Natividad’s holographic will, which had only one (1) It depends. If the cancellation of Rosa’s name in the WILLS;
substantial provision, as first written, named Rosa as her sole heir. will was done by the testator himself, Rosa’s claim that the HOLOGRAPHIC
However, when Gregorio presented it for probate, it already holographic will on its original tenor should be given effect WILLS;
contained an alteration, naming Gregorio, instead of Rosa, as sole must be denied. The said cancellation has revoked the entire INSERTIONS
heir, but without authentication by Natividad’s signature. Rosa will as nothing remains of the will after the name of Rosa was AND
opposes the probate alleging such lack of proper authentication. cancelled. Such cancellation is valid revocation of the will and CANCELLATION
She claims that the unaltered form of the will should be given does not require authentication by the full signature of the S
effect. Whose claim should be granted? Explain. testator to be effective.

However, if the cancellation of Rosa’s name was not

done by the testator himself, such cancellation shall not be

219
 effective and the will in its original tenor shall remain valid.
The efficacy of a holographic will cannot be left to the mercy
of unscrupulous third parties.

The writing of Gregorio’s name as sole heir was

ineffective, even though written by the testator himself because
such is an alteration that requires the authentication by the full
signature of the testator to be valid and effective. Not having
been authenticated, the designation of Gregorio as an heir was
ineffective. (Kalaw v. Relova, G.R. No. L-40207, September
28, 1984).

2012 How can RJP distribute his estate by will, if his heirs are A testator may dispose of by will of the free portion of WILLS;
JCP, his wife; HBR and RVC, his parents; and an illegitimate child, his estate. Since the legitime of JCP is 1/8 of the estate, that of TESTAMENTARY
SGO? SGO is ¼ of the estate, and that of HBR & RVC is ½ of the DISPOSITIONS
hereditary estate under Article 889 of the NCC, the remaining
1/8 of the estate is the free portion which the testator may
dispose of by will.

2012 Does the right to request for the issuance of a writ of Yes, it prescribes in 5 years. If the real property PRESCRIPTIVE
possession over a foreclosed real property prescribe in five (5) mortgaged is judicially foreclosed, the action for judicial PERIOD; WRIT
years? foreclosure should be filed within a period of ten (10) years. OF POSSESSION
The request for issuance of a writ of possession should be filed OVER

220
 upon motion of the winning bidder within five (5) years after FORECLOSED
the judgment of foreclosure. The writ if possession is an order REAL
commanding the sheriff to place a person named therein in PROPERTY
possession of real property. (BPI v. Icot, G.R. No. 168081,
October 12, 2009.)

2012 Eulalia was engaged in the business of buying and selling The contract between Domeng banding and Eulalia was EQUITABLE
large cattle. In order to secure the financial capital, she advanced an equitable mortgage rather than contract of sale. The MORTGAGE VS
for her employees (biyaheros). She required them to surrender TCT purported deed of sale was actually intended to merely secure SALE
of their properties and to execute the corresponding Deeds of Sale the payment of the shortage incurred by Domeng in the
in her favor. Domeng Bandong was not required to post any conduct of the cattle buying operations. Under Article 1602,
security but when Eulalia discovered that he incurred shortage in Civil Code, the contract shall be presumed to be an equitable
cattle procurement operation, he was required to execute a Deed of mortgage when it may be fairly inferred that the real intention
Sale over a parcel of land in favor of Eulalia. She sold the property of the parties is simply to secure the payment of a debt or the
to her grandneice Jocelyn who thereafter instituted an action for performance of any other obligation. The present transaction
ejectment against the Spouses Bandong. was clearly intended to just secure the shortage incurred by
Eulalia because Bandong remained in the possession of the
property inspite of the execution of the sale.

To assert their right, Spouses Bandong filed an action for

annulment of sale against Eulalia and Jocelyn alleging that there
was no sale intended but only equitable mortgage for the purpose of
securing the shortage incurred by Domeng in the amount of P 70,
000.00 while employed as "biyahero" by Eulalia. Was the Deed of
Sale between Domeng and Eulalia a contract of sale or an equitable

221
 mortgage? Explain.

2012 A partner cannot demand the return of his share Yes, he is not entitled to the return of his contribution RIGHT OF A
(contribution) during the existence of a partnership. Do you agree? to the capital of the partnership, but only to the net profits from PARTNER TO
Explain your answer. partnership business during the life of the partnership. Of he is DEMAND
a limited partner, however, he may ask for the return of his RETURN OF HIS
contributions as provided in Articles 1856 and 1857, Civil SHARE
Code.

2012 Siga-an granted a loan to Villanueva in the amount of P 1. No, Article 1956, Civil Code, provides that ―no SOLUTIO
540, 000.00. Such agreement was not reduced to writing. Siga-an interest shall be due unless it has been expressly stipulated in INDEBITI
demanded interest which was paid by Villanueva in cash and writing.‖
checks. The total amount Villanueva paid accumulated to P 1, 200,
000.00. Upon advice of her lawyer, Villanueva demanded for the
return of the excess amount of P 660, 000.00 which was ignored by 2. Yes, solution indebiti is applicable because
Siga-an. Villanueva overpaid by P660,000.00 representing interest
payment which is not due. He can therefore, demand its return.

1) Is the payment of interest valid? Explain.

2) Is solution indebiti applicable? Explain.

222
2013 You are a Family Court judge and before you is a Petition NO. The petition should be denied. PSYCHOLOGICA
for the Declaration of Nullity of Marriage (under Article 36 of the L INCAPACITY
The psychological incapacity under Article 36 of the
Family Code)filed by Maria against Neil. Maria claims that Neil is
Family Code must be characterized by (a) gravity, (b) juridical
psychologically incapacitated to comply with the essential
antecedence, and (c) incurability. It is not enough to prove that
obligations of marriage because Neil is a drunkard, a womanizer, a
the parties failed to meet their responsibilities and duties as
gambler, and a mama's boy- traits that she never knew or saw when
married persons; it is essential that they must be shown to be
Neil was courting her. Although summoned, Neil did not answer
incapable of doing so, due to some psychological (not
Maria's petition and never appeared in court.
physical) illness (Republic v. CA and Molina, G.R. No. 108763
To support her petition, Maria presented three witnesses- February 13, 1997). In this case, the pieces of evidence
herself, Dr. Elsie Chan, and Ambrosia. Dr. Chan testified on the presented are not sufficient to conclude that indeed Niel is
psychological report on Neil that she prepared. Since Neil never suffering from a psychological incapacity [Narcissistic
acknowledged n9r responded to her invitation for interviews, her Personality Disorder] existing already before the marriage,
report is solely based on her interviews with Maria and the spouses' incurable and serious enough to prevent Neil from performing
minor children. Dr. Chan concluded that Neil is suffering from his essential marital obligations. Dr. Chan’s report contains
Narcissistic Personality Disorder, an ailment that she found to be mere conclusions. Being a drunkard, a womanizer, a gambler
already present since Neil's early adulthood and one that is grave and a mama’s boy merely shows Neil’s failure to perform his
and incurable. Maria testified on the specific instances when she marital obligations. In a number of cases, the Supreme Court
found Neil drunk, with another woman, or squandering the family's did not find the existence of psychological incapacity in cases
resources in a casino. Ambrosia, the spouses' current household where the respondents showed habitual drunkenness (Republic
help, corroborated Maria's testimony. v. Melgar, G.R. No. 139676, March 31, 2006), blatant display
of infidelity and irresponsibility (Dedel v. CA, G.R. No.
On the basis of the evidence presented, will you grant the
151867, January 29, 2004), or being hooked to gambling and
petition?
drugs (Republic v. Tanyag-San Jose, G.R. No. 168328,

223
 February 28, 2007).

2013 A collision occurred at an intersection involving a bicycle I will base the claim of my client on quasi-delict under TORTS AND
and a taxicab. Both the bicycle rider (a businessman then doing his Art. 2176. DAMAGES
morning exercise) and the taxi driver claimed that the other was at
The requisites for a claim under quasi-delict to prosper
fault. Based on the police report, the bicycle crossed the
are as follows:
intersection first but the taxicab, crossing at a fast clip from the
bicycle's left, could not brake in time and hit the bicycle's rear 1. Act or omission, there being fault or
wheel, toppling it and throwing the bicycle rider into the sidewalk 5 negligence; 

meters away.
2. Damage or injury; and 

The bicycle rider suffered a fractured right knee, sustained
when he fell on his right side on the concrete side walk. He was 3. Causal connection between the damage and the

hospitalized and was subsequently operated on, rendering him act or omission. 

immobile for 3 weeks and requiring physical rehabilitation for
The case clearly involves a quasi-delict where my
another 3 months. In his complaint for damages, the rider prayed
client, the bicycle rider, suffered injury as a result of the
for the award of P1,000,000 actual damages,P200,000 moral
negligence of the over-speeding taxi driver, without fault on
damages, P200,000 exemplary damages, P1 00,000 nominal
my client’s part.
damages and P50,000 attorney's fees.
To prove actual damages, aside from the testimony of
Assuming the police report to be correct and as the lawyer
my client, I will present his hospital and medical bills.
for the bicycle rider, what evidence (documentary and testimonial)
Receipts of the fees paid on the rehabilitation will also be.
and legal arguments will you present in court to justify the damages
that your client claims?

224
2013 Sergio is the registered owner of a 500-square meter land. A. YES. Marcelo has a cause of action against Sergio. PROPERTY
His friend, Marcelo, who has long been interested in the property, Under Art. 1324, when the offerer has allowed the offeree a
succeeded in persuading Sergio to sell it to him. On June 2, 2012, certain period to accept, the offer may be withdrawn at any
they agreed on the purchase price of P600,000 and that Sergio time before acceptance by communicating such withdrawal,
would give Marcelo up to June30, 2012 within which to raise the except when the option is founded upon a consideration, as
amount. Marcelo, in a light tone usual between them, said that they something paid or promised. An accepted unilateral promise to
should seal their agreement through a case of Jack Daniels Black buy or to sell a determinate thing for a price certain is binding
and P5,000 "pulutan" money which he immediately handed to upon the promissor if the promise is supported by a
Sergio and which the latter accepted. The friends then sat down and consideration distinct from the price (Art. 1479). Consideration
drank the first bottle from the case of bourbon. in an option contract may be anything of value, unlike in sale
where it must be the price certain in money or its equivalent
On June 15, 2013, Sergio learned of another buyer, Roberto,
(San Miguel Properties Inc v. Spouse: Huang, G.R. No.
who was offering P800,000 in ready cash for the land. When
137290, July 31, 2000). Here, the ease of Jack Daniels Black
Roberto confirmed that he could pay in cash as soon as Sergio
and the 5,000 “pulutan” money was a consideration to “seal
could get the documentation ready, Sergio decided to withdraw his
their agreement", an agreement that Marcelo is given until
offer to Marcelo, hoping to just explain matters to his friend.
June 30, 2012 to buy the parcel of land. There is also no
Marcelo, however, objected when the withdrawal was
showing that such consideration will be considered part of the
communicated to him, taking the position that they have a firm and
purchase price. Thus, Sergio‘s unilateral withdrawal of the
binding agreement that Sergio cannot simply walk away from
offer violated the Option Contract between him and Marcelo.
because he has an option to buy that is duly supported by a duly
accepted valuable consideration. B. NO. Sergio‘s claim has no legal basis. The contract
at issue in the present case is the option contract, not the
A.Does Marcelo have a cause of action against Sergio?
contract of sale for the real property. Therefore, Art. I403 does
B. Can Sergio claim that whatever they might have agreed not apply. The Statute of Frauds covers an agreement for the

225
 upon cannot be enforced because any agreement relating to the sale sale of real property or of an interest therein. Such agreement
of real property must be supported by evidence in writing and they is unenforceable by action, unless the same, or some note or
never reduced their agreement to writing? memorandum, thereof, be in writing (Art. 1403 [e]). Here,
Marcelo and Sergio merely entered into an Option Contract,
which refers to a unilateral promise to buy or sell, which need
not be in writing to be enforceable. (Sanchez v. Rigos, G.R. No.
L-25494, June 14, I972, citing Atkins, Kroll and Co., Inc. v.
Cua Hian Tek and Southwestern Sugar & Molasses Co. v.
Atlantic Gulf & Pacific Co.).

2013 Anselmo is the registered owner of a land and a house that A. Boboy’s claim that he is a builder in good faith has PROPERTY
his friend Boboy occupied for a nominal rental and on the condition no basis. A builder in good faith is someone who occupies the
that Boboy would vacate the property on demand. With Anselmo's property in the concept of an owner. The provisions on
knowledge, Boboy introduced renovations consisting of an builder-planter-sower under the Civil Code cover cases in
additional bedroom, a covered veranda, and a concrete block fence, which the builder, planter and sower believe themselves to be
at his own expense. owners of the land, or at least, to have a claim of title thereto.

Subsequently, Anselmo needed the property as his residence As Boboy is a lessee of the property, even if he was
and thus asked Boboy to vacate and turn it over to him. Boboy, paying nominal rental, Art. 1678, is applicable. Under this
despite an extension, failed to vacate the property, forcing Anselmo provision, if the lessee makes, in good faith, useful
to send him a written demand to vacate. improvements which are suitable to the use for which the lease
is intended, without altering the form or substance of the
In his own written reply, Boboy signified that he was ready
property leased, the lessor upon the termination of the lease,
to leave but Anselmo must first reimburse him the value of the
shall pay the lessee one-half of the value of improvements at
improvements he introduced on the property as he is a builder in

226
 good faith. Anselmo refused, insisting that Boboy cannot ask for that time. Should the lessor refuse to reimburse said amount,
reimbursement as he is a mere lessee. Boboy responded by the lessee may remove the improvements, even though the
removing the improvements and leaving the building in its original principal thing may suffer damage thereby.
state.
B. NO. Boboy cannot be held liable for damages. The
A.Resolve Boboy's claim that as a builder in good faith, he lessor, Anselmo, refused to reimburse one-half of the value of
should be reimbursed the value of the improvements he introduced. the improvements, so the lessee, Boboy, may remove the same,
even though the principal thing may suffer damage thereby. If
B. Can Boboy be held liable for damages for removing the
in removing the useful improvements Boboy caused more
improvements over Anselmo's objection?
impairment in the property leased than is necessary, he will be
liable for damages (Art. 1678).

2013 Josefa executed a deed of donation covering a one-hectare The donation is a donation inter vivos. DONATIONS
rice land in favor of her daughter, Jennifer. The deed specifically
When the donor intends that the donation shall take
provides that:
effect during the lifetime of the donor, though the property
"For and in consideration of he love and service shall not be delivered till after the donor’s death, this shall be a
Jennifer has shown and given to me, I hereby freely, donation inter vivos (Art. 729). The Civil Code prefers inter
voluntarily and irrevocably donate to her my one-hectare vivos transmissions. Moreover, mortis causa donations should
rice land covered by TCT No. 11550, located in San follow the formalities of a will (Art. 728). Here there is no
Fernando, Pampanga. This donation shall take effect upon showing that such formalities were followed. Thus, it is
my death." favorable to Jennifer that the deed is a donation inter vivos.

The deed also contained Jennifer's signed acceptance, and Furthermore, what is most significant in determining
an attached notarized declaration by Josefa and Jennifer that the the type of donation is the absence of stipulation that the donor

227
 land will remain in Josefa's possession and cannot be alienated, could revoke the donation; on the contrary, the deeds expressly
encumbered, sold or disposed of while Josefa is still alive. declare them to be “irrevocable,” a quality absolutely
incompatible with the idea of conveyances mortis causa where
Advise Jennifer on whether the deed is a donation inter
revocability is the essence of the act, to the extent that a
vivos or mortis causa and explain the reasons supporting your
testator cannot lawfully waive or restrict his right of
advice.
revocation. The provisions of the deed of donation which state
that the same will only take effect upon the death of the donor
and that there is a prohibition to alienate, encumber, dispose,
or sell the same should be harmonized with its express
irrevocability (Austria-Magat v. CA, G.R. No. 106755,
February 1, 2002).

2013 Lito obtained a loan of P1,000,000 from Ferdie, payable A. From the point of view of validity and PROPERTY;
within one year. To secure payment, Lito executed a chattel enforceability, there would be legal significance if the CHATTEL
mortgage on a Toyota Avanza and a real estate mortgage on a 200- mortgage was in public or private instrument. As for the loan, MORTGAGE
square meter piece of property. there is no legal significance except if interest were charged on
the loan, in which case the charging of interest must be in
A.Would it be legally significant - from the point of view of
writing. A contract of loan is a real contract and is perfected
validity and enforceability - if the loan and the mortgages were in
upon the delivery of the object of the obligation (Art. 1914).
public or private instruments?
Thus, a contract of loan is valid and enforceable even if it is

B. Lito's failure to pay led to the extra-judicial foreclosure neither in a private nor in a public document. As a rule,
of the mortgaged real property. Within a year from foreclosure, contracts shall he obligatory in whatever form they may have
Lito tendered a manager's check to Ferdie to redeem the property. been entered into provided all the essential requisites for their
Ferdie refused to accept payment on the ground that he wanted validity are present. With regard to its enforceability, a

228
payment in cash: the check does not qualify as legal tender and contract of loan is not among those enumerated under Art.
does not include the interest payment. Is Ferdie's refusal justified? 1403 (2), which are covered by the Statute of Frauds. It is
important to note that under Art. 1358, all other contracts
where the amount involved exceeds five hundred pesos must
appear in writing, even a private one. However, the
requirement is not for the validity of the contract, but only for
its greater efficacy. With regard the chattel mortgage, Act No.
1508, the Chattel Mortgage Law, requires an affidavit of good
faith stating that the chattel mortgage is supposed to stand as
security for the loan; thus, for validity of the chattel mortgage,
it must be in a public document and recorded in the Chattel
Mortgage Register in the Registry of Deeds. A real estate
mortgage under the provisions of Art. 2125 requires that in
order that a mortgage may be validly constituted the document
in which it appears be recorded. If the instrument is not
recorded, the mortgage is nevertheless valid and binding
between the parties. Hence, for validity of both chattel and real
estate mortgages, they must appear in a public instrument. But
for purposes of enforceability, it is submitted that the form of
the contract, whether in a public or private document, would
be immaterial (Mobil Oil v. Diocares, G.R. No. L-26371,
September 30, 1969). Also, under Art. 1358, acts and contracts
which have for their object the creation or transmission of real
rights over immovable property must be in a public document

229
fur greater efficacy, and a real estate mortgage is a real right
over immovable property.

B. Ferdie’s refusal is justified. A check, whether a

manager’s check or ordinary check, is not legal tender, and an
offer of a check in payment of a debt is not a valid tender if
payment and may be refused receipt by the obligee or creditors
(Philippine Airlines v. CA and Amelia Tan, GR. No. L-49188,
January 30, 1990). Mere delivery of checks does not discharge
the obligation under a judgment. A check shall produce the
effect of payment only when they have been cashed or when
through the fault of the creditor, they have been impaired (Art.
1249). However, it is not necessary that the right of
redemption be exercised by delivery of legal tender. A check
may be used for the exercise of right of redemption, the same
being a right and not an obligation. The tender of a check is
sufficient to compel redemption but is not in itself a payment
that relieves the redemptioner from his liability to pay the
redemption price (Bianca v. Gimenez, G.R. No. 132768,
September 9, 2005, citing Fortunado v. CA). Redemption
within the period allowed by law is not a matter of intent but a
question of payment of valid tender of full redemption price
within the said period. Whether the redemption is being made
under Act 3135 or under the General Banking Law, the
mortgagor or his assignee is required to tender payment to

230
 make said redemption valid (Heirs of Quisumbing v. PNB and
SLDC, GR. No. 178242, January 20, 2009). Moreover,
Ferdie's refusal was justified on the ground that the amount
tendered does not include interest. In order to effect the
redemption of the foreclosed property, the payment to the
purchaser must include the following sums: (a) the bid price;
(b) the interest on the bid price, computed at one per centum
(1%) per month; and (c) the assessments or taxes, if any, paid
by the purchaser, with the same rate of interest (Sec. 28, Rules
of Court). Unless there is an express stipulation to that effect,
the creditor cannot be compelled to receive partial payment of
the prestation (Art. 1248).

2013 In 2005, Andres built a residential house on a lot whose Andres is not entitled to the easement of right of way EASEMENT;
only access to the national highway was a pathway crossing for Pathway A. Pathway B must be used. RIGHT OF WAY
Brando's property. Andres and others have been using this pathway
The owner of a dominant estate may validly obtain a
(pathway A) since 1980.
compulsory right of way only after he has established the
In 2006, Brand0 fenced off his property, thereby blocking existence of four requisites, to wit:

Andres' access to the national highway. Andres demanded that part
1. the (dominant) estate is surrounded by other
of the fence be removed to maintain his old access route to the
immovables and is without adequate outlet to a public
highway (pathway A), but Brando refused, claiming that there was
highway;
another available pathway (pathway B) for ingress and egress to the
highway. Andres countered that pathway B has defects, is 4. after payment of the proper indemnity; 


231
circuitous, and is extremely inconvenient to use. 5. the isolation was not due to the proprietor's own
acts; and 

To settle their dispute, Andres and Brando hired Damian, a
geodetic and civil engineer, to survey and examine the two 6. the right of way claimed is at a point least
pathways and the surrounding areas, and to determine the shortest prejudicial to the servient estate, and 

and the least prejudicial way through the servient estates. After the
insofar as consistent with this rule, where the distance
survey, the engineer concluded that pathway B is the longer route
from the dominant estate to the public highway may be the
and will need improvements and repairs, but will not significantly
shortest (Art. 650).
affect the use of Brando's property. On the other hand, pathway A
that had long been in place, is the shorter route but would However, the Supreme Court has consistently ruled
significantly affect the use of Brando's property. that in case both criteria cannot be complied with, the right of
way shall be established at the point least prejudicial to the
In light of the engineer's findings and the circumstances of
servient estate.
the case, resolve the parties' right of way dispute.

The first and fourth requisites are not complied with.

First, there is another available outlet to the national highway
(Pathway B). Second, the right of way obtained (Pathway A) is
not the least prejudicial to Brando's property as evidenced by
the reports of the geodetic and civil engineer.

When there is already an existing adequate outlet from

the dominant estate to a public highway, even if the said outlet,
for one reason or another, be inconvenient, the need to open up
another servitude is entirely unjustified (Costabella Corp. v.
CA, G.R. No. 80511, January 25, 1991). The rule that the

232
 easement of right of way shall be established at the point least
prejudicial to the servient estate is controlling (Quimen v. CA,
G.R. No. 112331, May 29, 1996).

2013 Ciriaco Realty Corporation (CRC) sold to the spouses Del a Based on the facts as stated, the spouses Dela Cruz as PROPERTY;
Cruz a500-square meter land (Lot A) in Paranaque. The land now builders and the spouses Rodriguez as landowners, are both in SALES
has a fair market value of Pl,200,000. CRC likewise sold to the good faith. The spouses Dela Cruz are builders in good faith
spouses Rodriguez, a 700-square meter land (Lot B) which is because before constructing the house they exercised due
adjacent to Lot A. Lot B has a present fair market value diligence by asking the agent of CRC the location of Lot A.
of P1,500,000. and they relied on the information given by the agent who is
presumed to know the identity of the lot purchased by the Dela
The spouses Dela Cruz constructed a house on Lot B,
Cruz spouses (Pleasantville v. CA, G.R. No. 79688, February
relying on there presentation of the CRC sales agent that it is the
1, 1996). On the other hand, there is no showing that the
property they purchased. Only upon the completion of their house
landowners, spouses Rodriguez, acted in bad faith. The facts
did the spouses Dela Cruz discover that they had built on Lot B
do not show that the building was done with their knowledge
owned by the spouses Rodriguez, not on Lot A that they purchased.
and without opposition on their part (Art. 453). Good faith is
They spent P 1 000,000 for the house.
always presumed (Art. 527). The owner of the land on which

As their lawyer, advise the spouses Dela Cruz on their anything has been built, sown or planted in good faith shall
rights and obligations under the given circumstances, and the have the right:
recourses and options open to them to protect their interests.
1. to appropriate as his own the works after payment of
the indemnity provided for in Articles 546 and 548, or
2. to
oblige the one who built to pay the price of the land.

However, the builder cannot be obliged to buy the land

233
 if its value is considerably more than that of the building. In
such case, he shall pay reasonable rent if the owner of the land
does not choose to appropriate the building or trees after
proper indemnity (Art. 448).

The house constructed by the spouses Dela Cruz is

considered as a useful expense, since it increased the value of
the lot. As such, should the spouses Rodriguez decide to
appropriate the house, the spouses Dela Cruz are entitled to the
right of retention pending reimbursement of the expenses they
incurred or the increase in value which the thing may have
acquired by reason of the improvement (Art. 546). Thus, the
spouses Dela Cruz may demand P1,000,000 as payment of the
expenses in building the house or increase in value of the land
because of the house as a useful improvement, as may be
determined by the court front the evidence presented during
the trial (Depra Dumlao, G.R. No. L 57348, May 16, 1985;
Technogas Phils. v. CA, G.R. No. 108894, February 10, 1997).

2013 Rica petitioned for the annulment of her ten-year old NO, Atty. Cruz is not correct. At first glance, it may ANNULMENT OF
marriage to Richard. Richard hired Atty. Cruz to represent him in appear that Atty. Cruz is the one who has a better right because MARRIAGE
the proceedings. In payment for Atty. Cruz's acceptance and legal he first took possession of the property. However, a lawyer is
fees, Richard conveyed to Atty. Cruz a parcel of land in Taguig that prohibited under Art. 1491 of the Civil Code from acquiring
he recently purchased with his lotto winnings. The transfer the property and rights which may be the object of any

234
 documents were duly signed and Atty. Cruz immediately took litigation in which they may take part by virtue of their
possession by fencing off the property's entire perimeter. profession. While the suit is for annulment of marriage and it
may be argued that the land itself is not the object of the
Desperately needing money to pay for his mounting legal
litigation, the annulment of marriage, if granted, will carry
fees and his other needs and despite the transfer to Atty. Cruz,
with it the liquidation of the absolute community or conjugal
Richard offered the same parcel of land for sale to the spouses
partnership of the spouses as the case may be (Art. 50 in
Garcia. After inspection of the land, the spouses considered it a
relation to Art. 43, FC). Richard purchased the land with his
good investment and purchased it from Richard. Immediately after
lotto winnings during the pendency of the suit for annulment
the sale, the spouses Garcia commenced the construction of a three-
and on the assumption that the parties are governed by the
story building over the land, but they were prevented from doing
regime of absolute community or conjugal partnership,
this by Atty. Cruz who claimed he has a better right in light of the
winnings from gambling or betting will form part thereof.
prior conveyance in his favor.
Also, since the land is part of the absolute community or

Is Atty. Cruz's claim correct? conjugal partnership of Richard and Rica, it may not be sold or
alienated without the consent of the latter and any disposition
or encumbrance of the property of the community or conjugal
property without the consent of the other spouse is void (Art.
96 and Art. 124, FC).

2013 Manuel was born on 12 March 1940 in a 1 000-square A. I would advise Manuel to file an application for PROPERTY
meter property where he grew up helping his father, Michael, registration under Sec. 14 of Pres. Decree No. 1529, or the
cultivate the land. Michael has lived on the property since the land Property Registration Decree (PRD), specifically Sec. 14 (1)
was opened for settlement at about the time of the Commonwealth which requires (a) that the land applied for forms part of the
government in 193 5, but for some reason never secured any title to alienable and disposable (A & D) portion of the public domain,
the property other than a tax declaration in his name. He has held and (b) that the applicant has been in open, continuous and

235
the property through the years in the concept of an owner and his notorious possession and occupation thereof under a bona fide
stay was uncontested by others. He has also conscientiously and claim of ownership since June 12, 1945, or earlier. However, it
continuously paid the realty taxes on the land. is only necessary that the land is already declared A & D land
“at the time the application for registration is filed"
Michael died in 2000 and Manuel - as Michael’s only son
(Malabanan v. Republic, G.R. No. 180067, June 30, 2009).
and heir -now wants to secure and register title to the land in his
own name. He consults you for legal advice as he wants to perfect
his title to the land and secure its registration in his name.
Manuel could also invoke Sec. 14 (2) of the same
A.What are the laws that you need to consider in advising Decree, which allows registration through ordinary acquisitive
Manuel on how he can perfect his title and register the land in his prescription for thirty years, provided, however, that the land is
name? Explain the relevance of these laws to your projected course “patrimonial” in character, i.e., already declared by the
of action. government (a) as A & D land, and (b) no longer needed for
public use or public service (Id).
B. What do you have to prove to secure Manuel's objectives
and what documentation are necessary? Manuel could also file an application for “confirmation
of imperfect or incomplete title" through "judicial legalization
under Sec. 48 (b) of CA No. 141 or the Public Land Act
(PLA). But, as held in Malabanan, there is no substantial
difference between this provision and Sec. 14 (1), PRD. Both
refer to agricultural lands already classified us alienable and
disposable at the time the application is filed, and require
possession and occupation since June 12, 1945. The only
difference is that under the PRD, there already exists a title
which is to he confirmed, whereas under the PLA, the
presumption is that land is still public land (Republic v.
236
Aquino, G.R. No. L-33983, January 27, 1983).

Manuel may also invoke “vested rights" acquired under

R.A. No. 1942 dated June 2, 1957, which amended Sec. 48 (b),
PLA by providing for a prescriptive period of thirty years or
judicial confirmation of imperfect title. It must only be
demonstrated that possession and occupation commenced on
January 24, 1947 and the 30-year period was completed prior
to the effectivity of PD No. 1073 on January 25, 1977. PD No.
1073 now requires possession and occupation since June 12,
1945 (Republic v. Espinosa, G.R. No. 171514, July 18, 2012).

Another alternative is for Manuel to secure title

through administrative proceedings under the homestead or
free patent provisions of the PLA. The title issued has the same
efficacy and validity as a title issued through judicial
proceedings, but with the limitation that the land cannot be
sold or disposed of within five years from the issuance of
patent (Sec. 118, CA No. 141, as amended).

B. Manuel has the burden to overcome the presumption

of State ownership by “well-nigh incontrovertible” evidence
(Ong v. Republic, G.R. No. 175746, March 12, 2008).
Accordingly, he must show that the land is already classified
as A & D “at the time the application for registration is filed"
and that he has been in “possession and occupation thereof" in
237
 the manner required by law since June 12, 1945, or earlier.

Manuel may tack his possession to that of his

predecessor-in-interest (Michael) by the testimony of
disinterested and knowledgeable eyewitnesses. Overt acts of
possession may consist in introducing valuable improvements
like fencing the land, constructing a residential house thereon,
cultivating the land and planting fruit hearing trees, declaring
the land for taxation purposes and paying realty taxes, all of
which are corroborative proof of possession.

To identify the land, he must submit the tracing cloth

plan or a duly-certified blueprint or whiteprint copy thereof
(Director of Lands v. Reyes, G.R. No. L-27594, November 28,
1975; Director of Lands v. CA and Iglesia ni Cristo, GR No. L-
56613, March 14, 1988).

To show the classification of the land as A & D, the

application must be accompanied by (1) a CENRO or PENRO
certification; and (2) a certified true copy of the original
classification approved by the DENR Secretary (Republic v.
Bantigue, G.R. No. 162322, March 14, 2012). A presidential or
legislative act may also be considered.

2014 Ariz and Paz were officemates at Perlas ng Silangan Bank No, I will not grant the petition for declaration of MARRIAGE

238
(PSB). They fell in love with each other and had a civil and church nullity of marriage.
wedding. Meanwhile, Paz rapidly climbed the corporate ladder of
PSB and eventually became its Vice-President, while Ariz remained
one of its bank supervisors, although he was short of 12 units to In Republic vs. Molina, G.R. No. 108763,
finish his Masters of Business Administration (MBA) degree. February 13, 1997, the Supreme Court ruled that while the
interpretations given by the National Appellate Matrimonial
Tribunal (NAMT) of the Catholic Church in the Philippines
Ariz became envious of the success of his wife. He should be given great respect by our courts, they are not
started drinking alcohol until he became a drunkard. He preferred controlling or decisive. Its interpretation is not conclusive on
to join his “barkadas”; became a wife-beater; would hurt his the courts. The courts are still required to make their own
children without any reason; and failed to contribute to the needs of determination as to the merits of the case, and not rely solely
the family. Despite rehabilitation and consultation with a on the finding of the NAMT.
psychiatrist, his ways did not change.

It has been held that psychological incapacity as

After 19 years of marriage, Paz, a devout Catholic, decided a ground for nullifying a marriage is confined to the most
to have their marriage annulled by the church. Through the serious cases of personality disorders clearly demonstrative of
testimony of Paz and a psychiatrist, it was found that Ariz was a an utter insensitivity or inability to give meaning and
spoiled brat in his youth and was sometimes involved in brawls. In significance to marriage. The three essential requisites in order
his teens, he was once referred to a psychiatrist for treatment due to for psychological incapacity to be appreciated are: 1) gravity,
his violent tendencies. In due time, the National Appellate 2) juridical antecendence, and 3) incurability. In the present
Matrimonial Tribunal (NAMT) annulled the union of Ariz and Paz case, there was no showing that the psychological incapacity
due to the failure of Ariz to perform and fulfill his duties as a was existing at the time of the celebration of the marriage.
husband and as a father to their children. The NAMT concluded

239
 that it is for the best interest of Paz, Ariz and their children to have
the marriage annulled.

In view of the NAMT decision, Paz decided to file a

Petition for Declaration of Nullity of Marriage of their civil
wedding before the Regional Trial Court (RTC) of Makati City
using the NAMT decision and the same evidence adduced in the
church annulment proceedings as basis.

If you are the judge, will you grant the petition? Explain.

2014 Miko and Dinah started to live together as husband and wife I will grant the motion for partial reconsideration. MARRIAGE
without thebenefit of marriage in 1984. Ten (10) years after, they Section 19 (1) of the Rule on Declaration of Absolute Nullity
separated. In 1996, they decided to live together again, and in 1998, of Null Marriages and Annulment of Voidable Marriages,
they got married. which require that the decree of nullity of marriage be issued
only after the liquidation, partition and distribution of
properties does not apply to declarations of nullity based on

On February 17, 2001, Dinah filed a complaint for Art. 36 of the Family Code. The said rule only applies if there
declaration of nullity of her marriage with Miko on the ground of was a second marriage which is void because of non-
psychological incapacity under Article 36 of the Family Code. The compliance with the requirements of Article 40 of the Family
court rendered the following decision: Code. In the case of Diño vs. Diño, G.R. No. 178044, January
19, 2011, the Court held that Sec. 19 (1) only applies to Family

240
 Code Articles 50 and 51, which are subsequently applicable
only to marriages which are declared void ab initio or annulled
“1. Declaring the marriage null and void;
by final judgment under Articles 40 and 45 of the Family

2. Dissolving the regime of absolute community of Code.Since there is no previous marriage in this case and the
property; and marriage was nullified under Article 36 of the Family Code,
Section 19 (1) of the said Rules does not apply.
3. Declaring that a decree of absolute nullity of marriage
shall only be issued after liquidation, partition and distribution of
the parties’ properties under Article 147 of the Family Code.”

Dinah filed a motion for partial reconsideration questioning

the portion of the decision on the issuance of a decree of nullity of
marriage only after the liquidation, partition and distribution of
properties under Article 147 of the Code.If you are the judge, how
will you decide petitioner’s motion for partial reconsideration?
Why?

2014 A pedestrian, who was four (4) months pregnant, was hit by No, she cannot recover damages on account of death of FAMILY
a bus driverwhile crossing the street. Although the pedestrian foetus because the foetus has no civil personality yet.
survived, the fetus inside her womb was aborted. Can the
pedestrian recover damages on account of the death of the fetus?
(1%)

241
 (A) Yes, because of Article 2206 of the Civil
Code which allows the surviving heirs to demand
damages for mental anguish by reason of the death of
the deceased.

(B) Yes, for as long as the pedestrian can prove

that she was not at fault and the bus driver was the one
negligent.

(C) No, because a fetus is not a natural person.

(D) No, if the fetus did not comply with the

requirements under Article 41 of the Civil Code.

2014 On March 30, 2000, Mariano died intestate and was No, the contention of Carlito is not tenable. In the case WILLS;
survived by his wife, Leonora, and children, Danilo and Carlito. of Patricio vs. Dario (G.R. No. 170829, November 20, 2006), INTESTATE
One of the properties he left was a piece of land in Alabang where it was provided that to be a beneficiary of a family home three
he built his residential house. requisites must concur: (1) they must be among the
relationships enumerated in Article 154 of the Family Code;
(2) they live in the family home, and (3) they are dependent for

After his burial, Leonora and children legal support upon the head of the family. In the said case, the
Mariano’s
extrajudicially settled his estate. Thereafter, Leonora and Danilo partition of a family home is allowed despite the objection on

242
 advised Carlito of their intention to partition the property. Carlito the ground that a minor grandchild still resides in the premises.
opposed invoking Article 159 of the Family Code. Carlito alleged Although the first two requisites are present in this case, the
that since his minor child Lucas still resides in the premises, the third is lacking because Lucas, the grandchild, is not dependent
family home continues until that minor beneficiary becomes of age. for legal support upon his grandparents which is the head of
the family who constituted the family home in this case. Lucas
still has parents who are legally obliged to support him. Thus,

Is the contention of Carlito tenable? he cannot be deemed as dependent for legal support upon the
head of the family, who is Mariano.

2014 Mabuhay Elementary School organized a field trip for its No, there was no valid waiver of the right to sue the TORTS AND
Grade VI students in Fort Santiago, Manila Zoo, and Star City. To school. Article 6 of the Civil Code provides that "(r)ights may DAMAGES
be able to join, the parents of the students had to sign a piece of be waived, unless the waiver is contrary to law, public order,
paper that reads as follows: public policy, morals, or good customs, or prejudicial to a
person with a right recognized by law." As a general rule,
“I allow my child (name of student), Grade – Section, to
patrimonial rights may be waived as opposed to rights to
join the school’s field trip on February 14, 2014.I will not file any
personality and family rights which may not be made the
claim against the school, administrator or teacher in case something
subject of waiver(Valenzuela Hardwood & Industrial Supply,
happens to my child during the trip.”
Inc. vs. Court of Appeals, G.R. No. 102316, June 30, 1997).
The second paragraph of the waiver prohibiting the parent to
file any claim against the school, administrator or teacher in
Joey, a 7-year-old student of Mabuhay Elementary School case something happens to the child during the trip is against
was bitten by a snake while the group was touring Manila Zoo. The public policy because it removes liability from said school,
parents of Joey sued the school for damages. The school, as a

243
 defense, presented the waiver signed by Joey’s parents. administrator, or teacher, and thus, removing the responsibility
imposed on them by Article 218 of the Family Code.

Was there a valid waiver of right to sue the school? Why?

2014 Ted, married to Annie, went to Canada to work. Five (5) No, it is not necessary for Ted to file a petition for MARRIAGE
years later, Ted became a naturalized Canadian citizen. He returned judicial recognition of the decree of divorce he obtained in
to the Philippines to convince Annie to settle in Canada. Canada before he can contract a second marriage in the
Unfortunately, Ted discovered that Annie and his friend Louie were Philippines. Ted, who is already a foreigner being a naturalized
having an affair. Deeply hurt, Ted returned to Canada and filed a Canadian citizen will be required to submit a certificate of
petition for divorce which was granted. In December 2013, Ted legal capacity to contract marriage issued by the proper
decided to marry his childhood friend Corazon in the Philippines. diplomatic or consular officials to obtain a marriage license.
In preparation for the wedding, Ted went to the Local Civil
Registry of Quezon City where his marriage contract with Annie
was registered. He asked the Civil Register to annotate the decree
of divorce on his marriage contract with Annie. However, he was
advised by the National Statistics Office (NSO) to file a petition for
judicial recognition of the decree of divorce in the Philippines.

Is it necessary for Ted to file a petition for judicial

recognition of the decree of divorce he obtained in Canada before
he can contract a second marriage in the Philippines?

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2014 Mario executed his last will and testament where he The acknowledgment of the unborn child is effective DONATIONS
acknowledges the child being conceived by his live-in partner Josie because a will may still constitute a document which contains
as his own child; and that his house and lot in Baguio City be given an admission of illegitimate filiation. The donation to the
to his unborn conceived child. Are the acknowledgment and the conceived child is also valid provided that the child is born
donation mortis causa valid? Why? later on and that it comply with the formalities required of a
will (Article 728, Civil Code). A fetus has a presumptive
personality for all purposes favorable to it provided it be born
under the conditions specified in Article 41. However, there
has to be compliance with the formal requisites for a valid last
will and testament.

2014 Spouses Esteban and Maria decided to raise their two (2) I will deny the petition for adoption. According to RA ADOPTION
nieces, Faith and Hope, both minors, as their own children after the 8552 or the Domestic Adoption Act of 1998, a husband and
parents of the minors died in a vehicular accident. wife must jointly adopt except in the following cases: 1) if one
spouse seeks to adopt the legitimate child of the other; 2) if
one spouse seeks to adopt his/her own illegitimate child,

Ten (10) years after, Esteban died. Maria later on married provided that the other spouse signified their consent thereto;
her boss Daniel,a British national who had been living in the or 3) if the spouses are legally separated from each other.
Philippines for two (2) years.

In this case, since Daniel and Maria do not fall

With the permission of Daniel, Maria filed a petition for the under any of the exceptions enumerated above, they must
adoption of Faith and Hope. She did not include Daniel as her co- jointly adopt as required by law.

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 petitioner because for Maria, it was her former husband Esteban
who raised the kids.

If you are the judge, how will you resolve the petition?

2015 Alden and Stela were both former Filipino citizens. They a) The joint will be valid if it was executed in MARRIAGE;
were married in the Philippines but they later migrated to the accordance with U.S. law. At the time of the will’s execution, SUCCESSION;
United States where they were naturalized as American citizens. In Alden and Stela were U.S. citizens. The will of an alien who is NATIONALITY
their union they were able to accumulate several real properties abroad produces effect in the Philippines if made with the DOCTRINE
both in the US and in the Philippines. Unfortunately, they were not formalities prescribed by law of the place where he resides, or
blessed with children. In the US, they executed a joint will according to the formalities observed in his country. (Art. 816,
instituting as their common heirs to divide their combined estate in Civil Code). Art. 819 of the Civil Code does not apply as it
equal shares, the five siblings of Alden and the seven siblings of refers specifically to the invalidity of joint wills “executed by
Stela. Alden passed away in 2013 and a year later, Stela also died. Filipinos in a foreign country”.
The siblings of Alden who were all citizens of the US instituted
probate proceedings in a US court impleading the siblings of Stela
who were all in the Philippines. b) The joint will produce legal effects in the
Philippines if it was validly executed in accordance with the
laws of the U.S. To be given legal effect in the Philippines, it
A.Was the joint will executed by Alden and Stela who were must be probated in this country. Since the will was executed
both former Filipinos valid? Explain with legal basis. abroad by aliens, it must comply with Article 17 or Article 816
of the Civil Code. Under Article 17, the forms and solemnities
B. Can the joint will produce legal effect in the Philippines
of contracts, wills, and other public instruments shall be

246
with respect to the properties of Alden and Stela found here? If so, governed by the laws of the country in which they are
how? executed. Under Article 816, the will of an alien who is abroad
produces effect in the Philippines if made with the formalities
C. Is the situation presented in Item I an example of
prescribed by the law of the place where he resides, or
depecage?
according to the formalities observed in his country, or in
conformity with those which this Code prescribes.

Since Alden and Stela were both naturalized American

citizens at the time of the execution of the will, they are
allowed to execute a will in accordance with the formalities
prescribed by the law of their country, where they reside, or
Philippine law.

Moreover, Article 16(2) requires a will to be

intrinsically in accordance with US law. However, Alden’s
siblings are all US citizens. Insofar as the real properties
situated in the Philippines, the prohibition regarding alien
ownership of Philippines land found in the Constitution is
applicable. Article 17 of the Civil Code provides the
prohibitive laws concerning persons, their acts or property, and
those which have for their object public order, public policy
and good customs shall not be rendered ineffective by laws or

247
 judgments promulgated, or by determinations or conventions
agreed upon in a foreign country.

c) No, the situation presented in Item I is not an

example of depecage. Depecage is a term used where different
aspects of a case involving a foreign element may be governed
by different systems of law. In this case, only one system of
laws governs, that of U.S. law. Under Article 16(2) of the Civil
Code, intestate and testamentary succession, with respect the
order of succession and to the amount of successional rights
and to the intrinsic validity of testamentary provisions, shall be
regulated by the national law of the person whose succession is
under consideration, whatever may be the nature of the
property and regardless of the country wherein said property
may be found. For the will to be probated, it must also comply
with US law under Articles 17 and 816 of the Civil Code, as
the US was the place of the will’s execution, the residence of
the spouses, and the country where they are nationals.

2015 Marco and Gina were married in 1989. Ten years later, or in The sale is void. The marriage was celebrated during SALE
1999, Gina left Marco and lived with another man, leaving their the effectivity of the Family Code. In the absence of a
two children of school age with Marco. When Marco needed marriage settlement, the property relations between the
money for their children's education he sold a parcel of land spouses is governed by absolute community of property,

248
 registered in his name, without Gina's consent, which he purchased whereby all the properties owned by the spouses at the time of
before his marriage. Is the sale by Marco valid, void or voidable? the celebration of the marriage, as well as whatever they may
Explain with legal basis. acquire during the marriage, shall form part of the community
property, as a rule (Art. 91, Family Code). The parcel of land
sold is part of the community property as Marco owned it
before the marriage. In an absolute community of property
regime, the administration and enjoyment shall belong to both
spouses jointly (Art. 96, Family Code). Neither spouse may
dispose or encumber common properties without the authority
of the court or the written consent of the other spouse, and in
the absence of such authority or consent, the disposition or
encumbrances shall be void (Art. 96, Family Code). Despite
separation de facto for more than 10 years, Gina remains
Marco’s spouse, and her consent is still required for the sale to
be valid. Since Marco sold the lot without Gina’s consent, the
sale is void.

2015 Julie had a relationship with a married man who had a) If I were the judge, I would rule against the FAMILY
legitimate children. A son was born out of that illicit relationship in illegitimate child. The action for recognition as an illegitimate
1981. Although the putative father did not recognize the child in his child based on the open and continuous possession of the
certificate of birth, he nevertheless provided the child with all the status of an illegitimate child may be brought during the
support he needed and spent time regularly with the child and his lifetime of the alleged parent (Art. 175, Civil Code). Since the
mother. When the man died in 2000, the child was already 18 years putative father has already died, the actions for recognition
old so he filed a petition to be recognized as an illegitimate child of based on such ground, as indicated by the support and regular

249
 the putative father and sought to be given a share in his putative spending of time with the child and mother, cannot prosper.
father's estate. The legitimate family opposed, saying that under the
Family Code his action cannot prosper because he did not bring the
action for recognition during the lifetime of his putative father. b) I would not approve the compromise. The
compromise involved herein is a compromise of the civil status
of the child, which is prohibited under Art. 2035 of the Civil
A.If you were the judge in this case, how would you rule? Code.

B. Wishing to keep the peace, the child during the pendency ALTERNATIVE ANSWER:
of the case decides to compromise with his putative father's family
by abandoning his petition in exchange for Yi of what he would
have received as inheritance if he were recognized as an b) I would approve the compromise. The subject
illegitimate child. As the judge, would you approve such a matter of the compromise between the parties is abandonment
compromise? of the petition or the end of the litigation between the parties,
not the child’s civil status; there would be no ruling as to the
civil status of the child. Hence, the prohibition against
compromise of the civil status of persons in Art. 2035 of the
Civil Code does not apply.

2015 Bert and Joe, both male and single, lived together as a) No, Article 147 of the Family Code is not COMMON LAW;
common law spouses and agreed to raise a son of Bert's living applicable to the case of Bert and Joe. Article 147 applies only ADOPTION
brother as their child without legally adopting him. Bert worked when a “man and a woman, who are capacitated to marry each
while Joe took care of their home and the boy. In their 20 years of other, live exclusively with each other as husband and wife
250
 cohabitation they were able to acquire real estate assets registered without the benefit of marriage or under a void marriage”. In
in their names as co-owners. Unfortunately, Bert died of cardiac this case, Bert and Joe are both men; they are also
arrest, leaving no will. Bert was survived by his biological siblings, incapacitated from marrying each other since in this
Joe, and the boy. jurisdiction, marriage may only take place between a man and
a woman (Arts. 1 and 2, Family Code).

b) The boy has no successional rights. Since Bert

A.)Can Article 147 on co-ownership apply to Bert and Joe,
died without a will, intestate succession shall apply. While the
whereby all properties they acquired will be presumed to have been
boy is the son of Bert’s living brother, and hence is Bert’s
acquired by their joint industry and shall be owned by them in
nephew, he cannot inherit from Bert as a legal heir since he is
equal shares?
excluded by his father under the proximity rule (Art. 962, Civil
B.)What are the successional rights of the boy Bert and Joe Code). Moreover, he cannot invoke the rights of an adopted
raised as their son? child to inherit from Bert since the boy was not legally
adopted.
C.)If Bert and Joe had decided in the early years of their
cohabitation to jointly adopt the boy, would they have been legally
allowed to do so? Explain with legal basis.
c) No, Bert and Joe could not have jointly adopted
the boy. Under the Domestic Adoption Act, joint adoption is
permitted, and in certain cases mandated, for spouses. In this
case, Bert and Joe are not spouses.

2015 Mrs. L was married to a ship captain who worked for an If I were the judge, I would rule against Mrs. L. When PRESUMPTIVE
international maritime vessel. For her and her family's support, she a person disappears under circumstances involving danger of DEATH
would claim monthly allotments from her husband's company. One death as enumerated in Article 391 of the Civil Code, the death

251
day, while en route from Hong Kong to Manila, the vessel manned of the person is presumed to have taken place at the beginning
by Captain L encountered a severe typhoon at sea. The captain was of the four year period provided in said article. In this case,
able to send radio messages of distress to the head office until all Captain L disappeared while on board a vessel lost during a
communications were lost. In the weeks that followed, the search sea voyage, and thus is presumed dead when the vessel was
operations yielded debris of the lost ship but the bodies of the crew lost at sea. Hence, Mrs. L is not entitled to the monthly
and the passengers were not recovered. The insurance company allotments for the next four years.
thereafter paid out the death benefits to all the heirs of the
passengers and crew. Mrs. L filed a complaint demanding that her
monthly allotments continue for the next four years until her ALTERNATIVE ANSWER:
husband may be legally presumed dead because of his absence. If
you were the magistrate, how would you rule?

I would rule in favor of Mrs. L. A person

missing under the circumstances as those of Captain L may not
be legally considered as dead until the lapse of the period fixed
by law on presumption of death. To allow the argument that
Captain L’s death should be considered on the very day of the
occurrence of the event from which death is presumed would
mean that no claim for death compensation benefits would
ever prosper, since the heirs of a missing seaman have to wait
for four years under Art. 391 before the seaman may be
declared legally dead, and after four years, the prescriptive
period for filing money claims would lapse. (Pantollano vs.
Korphil, G.R. 169575, March 30, 2011)

252
2015 Kardo met Glenda as a young lieutenant and after a I would dismiss the appeal if the incapacity is incurable NULLITTY OF
whirlwind courtship, they were married. In the early part of his and so grave as to prevent Glenda from performing her MARRIAGE
military career, Kardo was assigned to different places all over the essential marital obligations. For the Histrionic Personality
country but Glenda refused to accompany him as she preferred to Disorder to be a ground for declaration of nullity of marriage
live in her hometown. They did not live together until the 12th year under Article 36 of the Family Code, it must be characterized
of their marriage when Kardo had risen up the ranks and was given by (1) gravity; (2) juridical antecedence; and (3) incurability.
his own command. They moved to living quarters in Fort Gregorio.
The sexual infidelity in this case was not the
One day, while Kardo was away on official business, one of his
ground for the declaration of the nullity of the marriage, but
military aides caught Glenda having sex with the corporal assigned
merely the manifestation of Glenda’s incapacity to comply
as Kardo's driver. The aide immediately reported the matter to
with her obligation to Kardo as spouse, and her inability to
Kardo who rushed home to confront his wife. Glenda readily
accord respect to the sanctity of their marriage, satisfying the
admitted the affair and Kardo sent her away in anger. Kardo would
requisite of gravity. There was juridical antecedence since the
later come to know the true extent of Glenda's unfaithfulness from
psychologist testified that the incapacity already existed at the
his aides, his household staff, and former neighbors who informed
time of the marriage, as it was rooted in Glenda’s
him that Glenda has had intimate relations with various men
abandonment as a child by her father. The fact that Glenda was
throughout their marriage whenever Kardo was away on
not personally examined is immaterial. As held by the
assignment.
Supreme Court, “there is no requirement that the respondent
spouse be personally examined by a physician or psychologist
as a condition sine qua non for the declaration of nullity of
Kardo filed a petition for declaration of nullity of marriage
marriage based on psychological incapacity. What matters is
under Article 36. Based on interviews from Kardo, his aide, and the
whether the totality of evidence presented is adequate to
housekeeper, a psychologist testified that Glenda's habitual
sustain a finding of psychological incapacity.” (Marcos v.
infidelity was due to her affliction with Histrionic Personality
Marcos, G.R. 136490, Oct. 19, 2000). Moreover, it has been
Disorder, an illness characterized by excessive emotionalism and
253
uncontrollable attention-seeking behavior rooted in Glenda's held by the Supreme Court that the Molina doctrine should not
abandonment as a child by her father. Kardo himself, his aide, and be rigidly or strictly applied. Molina is not set in stone and the
his housekeeper also testified in court. The RTC granted the interpretation of Article 36 must rely on a case-to-case basis
petition, relying on the liberality espoused by Te v. Te and Azcueta (Antonio v. Reyes, G.R. 155800, March 10, 2006).
v. Republic. However, the OSG filed an appeal, arguing that sexual
infidelity was only a ground for legal separation and that the RTC
failed to abide by the guidelines laid down in the Molina case. How
would you decide the appeal?
ALTERNATIVE ANSWER:

I would grant the appeal. First, there was no

showing that the incapacity is incurable or that it was so grave
that she could not perform her essential marital obligations.
Also, as held in the case of Ochosa v. Olano, there was
insufficient evidence that Glenda’s defects were already
present at the inception of, or prior to, the marriage; her
alleged psychological incapacity did not satisfy the
jurisprudential requisite of juridical antecedence, as laid down
in Republic v. CA and Molina, G.R. 108763, February 13,
1997. It was not shown how the psychologist arrived at the
conclusion that Glenda’s habitual infidelity was due to her
affliction with Histrionic Personality Disorder. It is possible
that the psychologist evaluated her condition only indirectly,

254
 from information gathered from Kardo and his witnesses,
which evokes the possibility that the information was biased in
favor of Kardo’s cause. Although the Supreme Court has held
that personal examination of a party alleged to be
psychologically incapacitated is not a mandatory requirement
(Marcos v. Marcos, G.R. 136490, Oct. 19, 2000), it has also
ruled that to make conclusions and generalizations on a
spouse’s psychological condition based on the information fed
by only one side, similar to the case at bar, is not different
from admitting hearsay evidence as proof of the truthfulness of
the content of such evidence (Padilla-Rumbaua v. Rumbaua,
596 SCRA 157 [2009]). Mere sexual infidelity is not itself
a ground for dissolution of marriage under Article 36, even if
habitual; at most, it can only be a ground for legal separation.

2015 Mr. and Mrs. X migrated to the US with all their children. a) The sale was perfected and Spouses A acquired FAMILY; SALES
As they had no intention of coming back, they offered their house ownership over the house and lot upon delivery. Payment of
and lot for sale to their neighbors, Mr. and Mrs. A (the buyers) who the price was subject to an indefinite period, that is, after the
agreed to buy the property for 128 Million. Because Mr. and Mrs. approval of the bank loan. As owners, they have the right to
A needed to obtain a loan from a bank first, and since the sellers make improvements on the said properties, and to retain the
were in a hurry to migrate, the latter told the buyers that they could same. Even assuming for the sake of argument that the sale
already occupy the house, renovate it as it was already in a state of was not perfected and Spouses A had not acquired ownership
disrepair, and pay only when their loan is approved and released. over the house and lot because of a notarized deed of sale, or
While waiting for the loan approval, the buyers spent .Pl Million in in case of rescission, they may be considered builders in good

255
repairing the house. A month later, a person carrying an faith since they entered into the property believing in good
authenticated special power of attorney from the sellers demanded faith that they were the owners of the property in question. As
that the buyers either immediately pay for the property in full now builders in good faith, they are entitled to reimbursement for
or vacate it and pay damages for having made improvements on the necessary and useful expenses incurred upon the property, and
property without a sale having been perfected. may retain the property until reimbursement therefor (Art. 448
and 546 Civil Code). The improvements in question are
necessary and useful since the house was already in a state of

a) What are the buyers' options or legal rights disrepair.

with respect to the expenses they incurred in improving the
property under the circumstances?
b) No, the buyers may not be made to vacate the
b) Can the buyers be made to immediately
properties. A contract of sale is a consensual contract which is
vacate on the ground that the sale was not perfected?
perfected at the moment there is a meeting of the minds upon
Explain briefly.
the thing which is the object of the contract and upon the price
(Art. 1475, Civil Code). In this case, the sale was already
perfected since there was already a meeting of the minds as to
the object of the sale, which is the house and lot, and as to the
price, which is P8 Million. The fact that there was no payment
yet is immaterial since it is not a requisite for the perfection of
the contract.

Even assuming that the sale was rescinded, the buyers

may still not be made to vacate the properties. Since the buyers
made necessary and useful improvements upon the properties,
they have the right to retain the properties in question until the
256
 full reimbursement of such expenses (Arts. 448 and 546, Civil
Code).

2015 X, Y, Z are siblings who inherited a IO-storey building from Y and Z are partly correct. As a general rule, no co- CO-OWNERSHIP
their parents. They agreed in writing to maintain it as a co-owned owners shall be obliged to remain in the co-ownership, and
property for leasing out and to divide the net profits among each co-owner may demand at any time the partition of the
themselves equally for a period of 20 years. On the gth year, X thing owned in common. However, as one of the exceptions to
wanted to get out of the co-ownership so he could get his 1/3 share the general rule, an agreement to keep the thing undivided for
in the property. Y and Z refused, saying X is bound by their a certain period of time, not exceeding ten years, shall be valid
agreement to keep the co-ownership for 20 years. Are Y and Z (Art. 494, CC). In this case, X, Y, and Z stipulated for a period
correct? Explain. of indivision of 20 years, which exceeds the maximum allowed
by law. The stipulation would be void only as to the period
beyond such maximum of ten years. Hence, X cannot yet ask
for the partition, as there remains two years for the agreement
to remain in force.

2015 Jose, single, donated a house and lot to his only niece, Maria cannot be made to reconvey the property. In PROPERTY
Maria, who was of legal age and who accepted the donation. The order for a donation of an immovable to be valid, it must be
donation and Maria's acceptance thereof were evidenced by a Deed made in a public document (Art. 749, Civil Code). Since the
of Donation. Maria then lived in the house and lot donated to her, notary public before whom the deed of donation was
religiously paying real estate taxes thereon. Twelve years later, acknowledged had an expired notarial commission, the deed
when Jose had already passed away, a woman claiming to be an of donation remained a private instrument; hence, the donation
illegitimate daughter of Jose filed a complaint against Maria. was void. However, assuming that the donation is not
Claiming rights as an heir, the woman prayed that Maria be ordered inofficious, Maria can put up the defense of prescription. Since

257
 to reconvey the house and lot to Jose's estate. In her complaint she she possessed the house and lot in the concept of an owner and
alleged that the notary public who notarized the Deed of Donation in good faith that she had just title to the property by virtue of
had an expired notarial commission when the Deed of Donation the donation, she became the owner of the property by virtue
was executed by Jose. Can Maria be made to reconvey the of acquisitive prescription 10 years after she took possession
property? What can she put up as a defense? thereof, assuming that the land on which the house was built
was not registered land. (Arts. 1117, 1118, 1127 and 1134,
Civil Code).

2015 X, a dressmaker, accepted clothing materials from Karla to Yes, I agree that X is not liable. The contract between OBLIGATIONS
make two dresses for her. On the day X was supposed to deliver the parties is a contract for a piece of work wherein the AND CONTRACT
Karla's dresses, X called up Karla to say that she had an urgent contractor, X, bound herself to execute a piece of work for the
matter to attend to and will deliver them the next day. That night, employer, Karla, in consideration of a certain price or
however, a robber broke into her shop and took everything compensation (Art. 1713, Civil Code). Article 1717 of the
including Karla's two dresses. X claims she is not liable to deliver Civil Code provides that if the contractor bound himself to
Karla's dresses or to pay for the clothing materials considering she furnish the material, he shall suffer the loss if the work should
herself was a victim of the robbery which was a fortuitous event be destroyed before its delivery, save when there has been
and over which she had no control. Do you agree? Why? delay in receiving it. Since the contractor X did not furnish the
material, she shall not suffer the loss of the work which took
place before its delivery. There was no delay in the receipt of
the work since the parties agreed to the delivery of the dresses
on the day after the original date of delivery. Hence, X is not
bound to suffer the loss, and is liable for neither the delivery of
the dresses nor the cost of the materials.

258
 ALTERNATIVE ANSWER:

No, I do not agree. The obligation involved in

this case is an obligation to do, since X’s obligation is to make
dresses for Karla. Under Article 1167 of the Civil Code, if a
person obliged to do something fails to do it, the same shall be
executed at his cost. Although X may not be compelled to
deliver the dresses to Karla, she may be held liable for the cost
of having another person to make the dresses for Karla, which
including the cost of the materials.

2015 Jackie, 16, inherited a townhouse. Because she wanted to The contract of sale is voidable. Where one of the CONTRACTS;
study in an exclusive school, she sold her townhouse by signing a parties is incapable of giving consent to a contract, the contract SALES
Deed of Sale and turning over possession of the same to the buyer. is voidable. (Art. 1390, Civil Code). It appears that only Jackie
When the buyer discovered that she was still a minor, she promised was incapacitated by virtue of her minority.
to execute another Deed of Sale when she turns 18. When Jackie
Jackie cannot recover the property. First, since
turned 25 and was already working, she wanted to annul the sale
the contract is voidable, Jackie only had 4 years from the time
and return the buyer's money to recover her townhouse. Was the
she attained the age of majority to bring the action for
sale contract void, voidable or valid? Can Jackie still recover the
annulment of the contract (Art. 1391, Civil Code). In this case,

259
 property? Explain. Jackie should have brought the action for annulment of the
contract within four years after turning eighteen years old, or
up until the age of twenty-two. Since she is already 25 years
old, the period for bringing the action has prescribed. Second,
Jackie may be considered to have actively misinterpreted as to
her age. Thus, she will be bound to the contract under the
principle of estoppel.

2015 A. Iya and Betty owed Jun P500,000.00 for advancing a) No, Iya may not demand reimbursement from OBLIGATIONS
their equity in a corporation they joined as incorporators. Iya Betty. The remission of the whole obligation, obtained by one AND
and Betty bound themselves solidarily liable for the debt. Later, of the solidary debtors, does not entitle him or her to CONTRACT;
Iya and Jun became sweethearts so Jun condoned the debt of reimbursement from his co-debtors (Art. 1220, Civil Code)
P500,000.00. May lya demand from Betty Php 250,000.00 as
her share in the debt? Explain with legal basis.

b) No, Cita may not demand payment of the entire

B. Juancho, Don and Pedro borrowed Php 150,000.00 from
obligation from Pedro. The concurrence of two or more
their friend Cita to put up an internet cafe orally promising to pay
creditors or of two or more debtors in one and the same
her the full amount after one year. Because of their lack of business
obligation does not imply that each one of the formers has a
know-how, their business collapsed. Juancho and Don ended up
right to demand, or that each one of the latter is bound to
penniless but Pedro was able to borrow money and put up a
render, entire compliance with the prestation. There is a
restaurant which did well. Can Cita demand that Pedro pay the
solidary liability only when the obligation expressly requires
entire obligation since he, together with the two others, promised to
solidarity (Art. 1207, Civil Code). In this case, there is no
pay the amount in full after one year? Defend your answer.
indication that they bound themselves solidarily to pay Cita,
nor does the law or nature of the obligation require solidarily.

260
 Hence, Juancho, Don and Pedro’s obligation is joint, and Cita
can only demand payment of 1/3 of the obligation from Pedro,
which is presumed to be his share in the obligation in the
absence of stipulation to the contrary (Art. 1208, Civil Code).

2015 A. X and Y are partners in a shop offering a) No, Kyla cannot validly demand that Y deliver PARTNERSHIP
portrait painting. Y provided the capital and the marketing the portrait. Although she may be correct that it is the
while X was the portrait artist. They accepted the partnership that she contracted with, Kyla cannot demand that
P50,000.00 payment of Kyla to do her portrait but X passed Y deliver the portrait if the intention of the parties was that the
away without being able to do it. Can Kyla demand that Y portrait should be done by X and this is precisely why the
deliver the portrait she had paid for because she was dealing obligation was constituted. With the death of X, the obligation
with the business establishment and not with the artist was extinguished because it is a purely personal obligation
personally? Why or why not? which is extinguished upon the death of the obligor. Finally,
the obligation is an obligation to do. To oblige the surviving
B. In this jurisdiction, is a joint venture (i.e., a
partner, Y, to deliver the painting (do the painting) would
group of corporations contributing resources for a specific
tantamount to an involuntary servitude, which is against the
project and sharing the profits therefrom) considered a
law.
partnership?

b) Yes. The Supreme Court has ruled that a joint

venture may be considered a species of partnership (Aubach v.
Sanitary Wares Manufacturing Corp., 1989; Philex Mining v.
CIR, 2008). It has also ruled that “a joint venture is hardly
distinguished from, and may be likened to, a partnership since

261
their elements are similar, i.e., community of interests in the
business and sharing profits and losses. Being a form of
partnership, a joint venture is generally governed by the law on
partnerships” (Litonjua v. Litonjua, 2005).

ALTERNATIVE ANSWERS:

a) Yes. Art. 1768 states that a partnership has a

juridical personality separate and distinct from that of each of
the partners. The facts do not allege that Kyla contracted for a
purely personal service, hence the partnership is the entity
which she contracted with, so even upon the death of X, she
can demand that Y as the remaining partner deliver the portrait
in fulfillment of the obligation of the partnership to her.

b) No, a joint venture is not considered a

partnership. Although the Supreme Court has recognized that
for certain purposes, a joint venture is a form of partnership
and should be governed by the law of the partnerships, it has

262
 also recognized a distinction between the two business forms,
and has held that although a corporation cannot enter into a
partnership contract, it may however engage in a joint venture
with others (Aurbach v. Sanitary Wares Manufacturing Corp.,
1989).

2015 A driver of a bus owned by company Z ran over a boy who a) Yes, the action will prosper. The cause of action TORTS AND
died instantly. A criminal case for reckless imprudence resulting in against the company is different from the cause of action DAMAGES
homicide was filed against the driver. He was convicted and was against the driver in the criminal case. The civil action against
ordered to pay P2 Million in actual and moral damages to the the employer is rooted on the fact that the employers are
parents of the boy who was an honor student and had a bright vicariously liable for the damages caused by their employees
future. Without even trying to find out if the driver had assets or while in the performance of their functions. The vicarious
means to pay the award of damages, the parents of the boy filed a liability of the employers under Article 2180 of the Civil Code
civil action against the bus company to make it directly liable for does not require as a condition sine qua non that the driver
the damages. should have been declared insolvent or unable to pay the
awards of damages. The cause of action against the driver, on
the other hand, is rooted in Article 2176, which defines a

a) Will their action prosper? quasi-delict. Moreover, if negligence was proven in the
criminal case which requires proof beyond reasonable doubt,
b) If the parents of the boy do not wish to file a then it can likewise be proven in a civil action which requires
separate civil action against. the bus company, can they still only preponderance of evidence.
make the bus company liable if the driver cannot' pay the
award for damages? If so, what is the nature of the
employer's liability and how may civil damages be
b) Yes. The employer may still be held

263
 satisfied? subsidiarily liable under Art. 103 of the Revised Penal Code.
In order that an employer may be held subsidiarily liable for
the employee’s civil liability in the criminal action, it should
be shown (1) that the employer is engaged in any kind of
industry; (2) that the employee committed the offense in the
discharge of his duties; and (3) that he is insolvent. The
subsidiary liability of the employer, however, arises only after
conviction of the employee in the criminal action. If all these
requisites are present, the employer becomes ipso facto
subsidiarily liable upon the employee’s conviction and upon
proof of the employee’s insolvency, as ruled in Carpio v.
Doroja, (1989). For these requisites to be established
adequately, however, there must be a hearing which will
determine the sufficiency or insufficiency of the properties of
the employee to compensate the plaintiffs, as well as to allow
the employer to present his defenses.

2015 A. Sara borrowed P50,000.00 from Julia and a) No, I do not agree with Julia. For a creditor to OBLIGATIONS
orally promised to pay it within six months. When Sara be entitled to be compensatory interest, the debtor must be in AND
tried to pay her debt on the gth month, Julia demanded the delay. As a rule, in order for delay to exist, demand must have CONTRACTS
payment of interest of 12o/o per annum because of Sara's been made. In this case, there was no demand made upon the
delay in payment. Sara paid her debt and the interest expiration of the 6-month period; thus Sara cannot be
claimed by Julia. After rethinking, Sara demanded back considered in delay, and is not liable to pay compensatory
from Julia the amount she had paid as interest. Julia claims interest. There being no obligation to pay compensatory

264
 she has no obligation to return the interest paid by Sara interest, Julia must return the interest mistakenly paid since she
because it was a natural obligation which Sara voluntarily was not entitled thereto, and delivery was made merely
performed and can no longer recover. Do you agree? through mistake. If something is received when there is no
Explain. right to demand it, and it was unduly delivered through
mistake, the obligation to return it arises (Article 2154, Civil
Code)

B. Distinguish civil and natural

obligations.
b) Civil obligations give a right of action to
compel their performance. Natural obligations, is not being
based on positive law but on equity and natural law, do not
grant a right of action to enforce their performance, but after
voluntary fulfillment by the obligor, they authorize the
retention of what has been delivered or rendered by reason
thereof (Art. 1423, Civil Code).

2015 Donna pledged a set of diamond ring and earrings to Jane a) No, the agreement that if Donna cannot pay her OBLIGATIONS
for P200,000.00 She was made to sign an agreement that if she debt within 6 months, Jane could immediately appropriate the AND
cannot pay her debt within six months, Jane could immediately jewelry for herself is void as it constitutes pactum CONTRACTS
appropriate the jewelry for herself. After six months, Donna failed commissorium, which is void under the law. Under Art. 2088,
to pay. Jane then displayed the earrings and ring set in her jewelry pactum commissorium is a provision in a pledge or mortgage
shop located in a mall. A buyer, Juana, bought the jewelry set for agreement where the property pledged or mortgaged by the

265
P300,000.00. debtor automatically becomes the property of the creditor in
the event the debtor fails to pay the debt or commits a breach
of the loan agreement.

a) Was the agreement which Donna signed with

Jane valid? Explain with legal basis.
b) No. Donna cannot redeem the jewelry set from
b) Can Donna redeem the jewelry set from
Juana because there is no privity of contract between Donna
Juana by paying the amount she owed Jane to Juana?
and Juana. Moreover, Juana is a third person who purchased
Explain with legal basis.
the thing in good faith from a merchant store. Under Art. 1505,

c) Give an example of a pledge created by even if the seller does not have the right to sell, the buyer
operation of law. acquires absolute ownership over the thing if he brought it in a
merchant store in good faith, the owner neither having been
unlawfully deprived thereof, nor was the thing lost. [Sun
Brothers v. Velasco (1963)]

c) [Any of the following answers should be given

full credit]

A. Art. 546 states: “Necessary expenses shall be

refunded to every possessor; but only the possessor in good
faith may retain the thing until he has been reimbursed
therefor.

266
 Useful expenses shall be refunded only to the possessor
in good faith with the same right of retention, the person who
has defeated him in the possession having the option of
refunding the amount of the expenses or of paying the increase
in value which the thing may have acquired by reason thereof.”

B. Art. 1731 states: “He who has executed work

upon a movable has a right to retain it by way of pledge until
he is paid.”

C. Art. 1994 states: “The depositary may retain the

thing in pledge until the full payment of what may be due him
by reason of the deposit.”

Art. 1914 states: “The agent may retain in pledge the

things which are the object of the agency until the principal
effects the reimbursement and pays the indemnity set forth in
the two preceding articles.”

267
2015 Z, a gambler, wagered and lost P2 Million in baccarat, a No, the Deed of Sale was not valid. Under Article 2014 SALES
card game. He was pressured into signing a Deed of Absolute Sale of the Civil Code, no action can be maintained by the winner
in favor of the winner covering a parcel ·of land with for the collection of what he has won in a game of chance. In
improvements worth P20 Million. One month later, the supposed this case, the Deed of Sale represents the winnings in the
vendee of the property demanded that he and his family vacate the baccarat game; hence, it was made for illegal consideration,
property subject of the deed of sale. Was the deed of sale valid? and is void.
What can Z do?

2015 A lawyer was given an authority by means of a Special No, the client cannot unilaterally rescind the authority AGENCY
Power of Attorney by his client to sell a parcel of land for the he gave in favor of his lawyer because the agency is couple
amount of P3 Million. Since the client owed the lawyer Pl Million with interest, the interest being the attorney’s fees which the
in attorney's fees in a prior case he handled, the client agreed that if client owed the lawyer. Under Art. 1927 of the Civil Code, an
the property is sold, the lawyer was entitled to get 5% agent's fee agency cannot be revoked if a bilateral contract depends upon
plus Pl Million as payment for his unpaid attorney's fees. The it, or if it is the means of fulfilling the obligation already
client, however, subsequently found a buyer of his own who was contracted, or if a partner is appointed manager of a
willing to buy the property for a higher amount. Can the client partnership in the contract of partnership and his removal from
unilaterally rescind the authority he gave in favor of his lawyer? the management is unjustifiable. In this case, if the lawyer
Why or why not? could sell his client’s property, the lawyer will be entitled not
only to his commission, but also to his attorney’s fees. These
attorney’s fees were already owed by the client to his lawyer
before the SPA was executed. The agency is a means of
fulfilling an obligation already contracted.

268
2015 Mr. A, a businessman, put several real estate properties No, I don’t agree with X. This is clear case of an PROPERTY
under the name of his eldest son X because at that time, X was the implied trust provided in Article 1453 of the Civil Code which
only one of legal age among his four children. He told his son he states that “when property is conveyed to a person in reliance
was to hold those assets for his siblings until they become adults upon his declared intention to hold it for, or transfer it to
themselves. X then got married. After 5 years, Mr. A asked X to another or the grantor, there is an implied trust in favor of the
transfer the titles over three properties to his three siblings, leaving person for whose benefit it is contemplated.” In this case, A is
two properties for himself. To A's surprise, X said that he can no the trustor, X is the trustee, and the three other children of A
longer be made to transfer the properties to his siblings because are the beneficiaries. A and/or his three children may file an
more than 5 years have passed since the titles were registered in his action to compel X to transfer title in favor his three siblings
name. Do you agree? Explain. within ten (10) years from the time the cause of action accrues
upon an obligation created by law – when the children attains
the age of majority (Art. 1144, Civil Code).

2015 A. Mr. and Mrs. Roman and Mr. and Mrs. Cruz a) Yes, the stipulation is valid. Section 22 of P.D. PROPERTY
filed an application for registration of a parcel of land which 1529 expressly provides that “after the filing of the application
after due proceedings was granted by the RTC acting as a and before the issuance of the decree of registration, the land
land registration court. However, before the decree of therein described may still be the subject of dealings in whole
registration could be issued, the spouses Roman and the or in part, in which case the interested party shall present to the
spouses Cruz sold the lot to Juan. In the notarized deed of court the pertinent instruments together with a subdivision
sale, the sellers expressly undertook to submit the deed of plan approved by the Director of Lands in case of transfer of
sale to the land registration court so that the title to the portions thereof and the court, after notice to the parties, shall
property would be directly issued in Juan's name. Is such a order such land registered subject to the conveyance or
stipulation valid? encumbrance created by said instruments, or order that the

269
 B. Distinguish a direct attack from a collateral decree of registration be issued in the name of the person to
attack on a title. whom the property has been conveyed by said instruments.”

C. If the title in Item XX.A is issued in the

names of the original sellers, would a motion filed by Juan
b) An action is deemed an attack on a title when
in the same case to correct or amend the title in order to
the object of the action is to nullify the title, and thus challenge
reflect his name as owner be considered a collateral attack?
the judgment pursuant to which the title was deemed. The
attack is direct when the object of the action is to annul or set
aside the judgment, or enjoin its enforcement. The attack is
indirect or collateral when in an action to obtain a different
relief, an attack on the judgment is nevertheless made an
incident thereof.

c) No, it cannot be considered a collateral attack.

A collateral attack exists when an attack on an incidental
matter is made on the judgment in an action to obtain a
different relief. In this case, Juan’s motion to correct or amend
the title in order to reflect his name would not be attacking the
judgment directing the issuance of the title in the names of the
sellers; rather, his motion impliedly admits the validity of the
title of the sellers or his predecessors-in-interest.

270
2016 Section 11 of P.D. No. 755 states: No, the Agreement cannot be accorded the status of a EFFECTIVITY
law. A law must a law. A law must be published to become
“Section I. Declaration of National Policy. – It is
effective. Article 2 of the Civil Code provides that Civil Code
hereby declared that the policy of the State is to provide
provides that laws shall take effect after fifteen (15) days
readily available credit facilities to the coconut farmers at
following the completion of their owing the completion of
preferential rates; that this policy can be expeditiously and
their publication in the Official Gazette, unless it is otherwise
efficiently realized by the implementation of the
provided. The publication must be of the full text of the law
‘Agreement for the Acquisition of Commercial Bank for the
since the purpose of publication is to inform the public of the
Benefit of the Coconut Farmers’ executed by the Philippine
contents of the law (Tanada v. Tuvera, 136 SCRA 27 [1985]).
Coconut Authority, the terms of which ‘Agreement’ are
In Nagkakaisang Maralita v. Military Shrine Services (675
hereby incorporated by reference; x x x”
SCRA 359 [2013]),the Supreme Court held that the

A copy of the Agreement was not attached to the addendum to the Proclamation issued by President Marcos has
Presidential Decree. no force and effect considering that the same considering that
the same was not published in the Official Gazette. Moreover,
P.D. No. 755 a published in the Official Gazette but the text the Supreme Court in Cojuangco, Jr. v. Republic 686 SCRA
of the but the text of the Agreement described in Section 1 was not 472 [2012], which is on all fours with this case, ruled that
published. Can the Agreement in Can the Agreement in question be while the Agreement was incorporated by reference, it was not
accorded the status of a law? Explain. reproduced or attached as an annex to the law and therefore
cannot be accorded to the status of a law. Publication of the
full text of the law is indispensable for its effectivity.

2016 With regard to an award of interest in the concept of actual [a] When the obligation is breached and it consists in DAMAGES
and compensatory damages, please state the guidelines regarding the payment of a sum of money like a loan or forbearance of

271
the manner of computing legal interest in the following situations: money, in the absence of stipulation, the rate of interest shall
be the legal rate of 6% per annum (Article 2209 CC), which
was increased to 12% per NB Circular No. 905, Series of

[a] when the obligation is breached and it consists in the 1982) to be computed from default. The twelve percent 12%
payment of a sum of money like a loan or forbearance of money; per annum legal interest shall apply only until June 30, 2013.
From July 1, 2013, the new rate of six percent (6%) per annum
[b] when the obligation does not constitute a loan or shall be the prevailing rate of the prevailing rate of interest
forbearance of money. when applicable (Nacar v. Gallery Frames, 703 SCRA 439
12013], applying BSP — MB Circular No. 799).
Consider the issuance of BSP-MB Circular No. 799, which
became effective on July 1, 2013. [NOTE: It is suggested that credit also be given in the
event that the examinees cite Taliada v. Tuvera to support the
conclusion that publication is at publication is unnecessary in
the case of interpretative regulations and those merely ns and
those merely internal in nature, as the language of the problem
may be interpreted by the examinees to refer only to mere
guidelines or directory matters].The examinee should be given
credit if he mentions that the actual base for computing the
interest due on the loan or forbearance of money, goods or
credit is the amount of the loan, forbearance, plus whatever
interest is stimulated in writing; otherwise no interest may be
charge for using the money (Art. 1956 CC)].

[b] The interest on the amount of damages awarded

272
 may be imposed at the discretion of the court at the rate of 6%
per annum. No interest, however, shall be adjudged on
unliquidated claims or damages, except when or until the
demand can be established with reasonable certainty.
Accordingly, where the demand is established with reasonable
certainty, the interest shall begin to run from the time the claim
is made judicially or extra-judicially, but when such certainty
cannot be so reasonably established at the time the demand is
made, the interest shall begin to run only from the date the
judgment of the court is made (at which time the quantification
of damages may be deemed to have been reasonably
ascertained). The actual base for the computation of legal
interest shall, in any case, be on the amount finally adjudged
(Nacar v. Gallery Frames, 703 SCRA 439 [2013]).

2016 Romeo and Juliet, both Filipinos, got married. After a few If the time of Juliet's acquisition of U.S. citizenship MARRIAGE
years, Juliet got word from her mother that she can go to the United preceded the time when she obtained the divorce decide, then
States for naturalization. Juliet promised she will be back the the divorce decree can be given effect in the Philippines, and
moment she becomes an American. After sometime, Romeo consequently, Romeo will be capacitated to remarry under
learned from a friend that Juliet already became a V.S. citizen and Philippine law. On the other hand, if Juliet obtained the
even divorced him to marry a wealthy American businessman. divorce decree before she acquired U.S. citizenship, then the
Romeo filed a petition before the Regional Trial Court praying that foreign divorce decree cannot be recognized by Philippine
an order be issued authorizing him to remarry pursuant to Article courts.

273
26 of the Family Code. Decide the petition with reasons. Article 26, paragraph 2 of the Family Code provides
that where a marriage between a Filipino citizen and a
foreigner is validly celebrated and a divorce is thereafter
validly obtained abroad by the alien spouse capacitating him or
her to remarry, the Filipino spouse shall have capacity to
remarry under Philippine law. In Republic v. Orbecido (472
SCRA 114 [2005]), the Supreme Court ruled that Article 26,
paragraph 2 should be interpreted to include cases involving
parties who, at the time of the celebration of the marriage were
Filipino citizens, but later on, one of them becomes naturalized
as a foreign citizen and obtains a divorce decree. The
reckoning point is not their citizenship at the time of
celebration of marriage, but their citizenship at the time the
divorce decree is obtained abroad by the alien spouse
capacitating him/her to remarry

ALTERNATIVE ANSWER:

The petition should not be granted. A divorce obtained

abroad by an alien may be recognized in our jurisdiction,
provided such decree is valid according to the national law of
the foreigner. However, the divorce decree and the governing
personal law of the alien spouse who obtained the divorce
must be proven. Our courts do not take judicial notice of
274
 foreign laws and judgments; hence, like any other evidentiary
facts, both the divorce decree and the national law of the alien
must be alleged and proven according to our law on evidence
(Republic v. Orbecido, 366 SCRA 437 [2001]). In this case, no
evidence was adduced to prove the divorce between Romeo
and Juliet and the validity of the same under U.S. law.

2016 Leo married Lina and they begot a son. After the birth of No, a Petition for Declaration of Nullity of Marriage NULLITY OF
their child, Lina exhibited unusual behavior and started to neglect under Article 36 of the Family Code will not prosper. Even if MARRIAGE
her son; she frequently went out with her friends and gambled in taken as true, the grounds alleged are not sufficient to declare
casinos. Lina later had extra-marital affairs with several men and the marriage void under "psychological incapacity". In Santos
eventually abandoned Leo and their son. Leo was able to talk to v. CA (240 SCRA 20 [1995]), the Supreme Court explained
the psychiatrist of Lina who told him that Lina suffers from that psychological incapacity must be characterized by (a)
dementia praecox, a form of psychosis where the afflicted person is gravity, (b) juridical antecedence, and (c) incurability. The
prone to commit homicidal attacks. Leo was once stabbed by illness must be shown as downright incapacity or inability to
Lina but fortunately he only suffered minor injuries. Will a Petition perform one's marital obligations, not a mere refusal, neglect,
for Declaration of Nullity of Marriage filed with the court prosper? difficulty, or much less, ill will.
Explain.
While Lina was not examined by a physician, the
Supreme Court has ruled in Marcos v. Marcos (343 SCRA 755
[2000/) that actual medical examination need not be resorted to
where the totality of evidence presented is enough to sustain a
finding of psychological incapacity. However, in this case, the
pieces of evidence presented are not sufficient to conclude that

275
 indeed Lina is suffering from psychological incapacity existing
already before the marriage, incurable and serious enough to
prevent her from performing her essential marital obligations.

ALTERNATIVE ANSWER:

No, a Petition for Declaration of Nullity of Marriage

under Article 36 of the Family Code will not prosper.
However, a Petition for Annulment of Marriage under Article
45 of the Family Code may prosper, on the ground of unsound
mind, assuming that Lina's unsound mind existed at the time of
the celebration of the marriage.

2016 Bernard and Dorothy lived together as common-law [a] Yes, Dorothy's suit will prosper, unless the buyer is COMMON LAW
spouses although they are both capacitated to marry. After one year a buyer in good faith and for value. The rule of co-ownership
of cohabitation, Dorothy went abroad to work in Dubai as a hair governs the property relationship in a union without marriage
stylist and regularly sent money to Bernard. With the money, between a man and a woman who are capacitated to marry
Bernard bought a lot. For a good price, Bernard sold the lot. each other. Article 147 of the Family Code is specifically
Dorothy came to know about the acquisition and sale of the lot and applicable. Under this article, neither party can encumber or
filed a suit to nullify the sale because she did not give her consent dispose by acts inter vivos of his or her share in the property
to the sale. acquired during cohabitation and owned in common, without
the consent of the other, until after the termination of their
cohabitation, thus, Bernard may not validly dispose of the lot
[a] Will Dorothy's suit prosper? Decide with reasons. without the consent of Dorothy as the lot was acquired through

276
 [b] Suppose Dorothy was jobless and did not contribute their work during their cohabitation.
money to the acquisition of the lot and her efforts consisted mainly
[NOTE: It is suggested that some credit be given to
in the care and maintenance of the family and household, is her
examinees who reason that Article 147 does not apply because
consent to the sale a prerequisite to its validity? Explain.
under the facts given, Dorothy and Bernard were not living
together as husband and wife].

[b] Yes, if Dorothy was jobless and did not contribute

money to the acquisition of the lot, her consent is still a
prerequisite to the validity of the sale. Under the same article, a
party who did not participate in the acquisition by the other
party of any property shall be deemed to have contributed
jointly in the acquisition thereof if the former's efforts
consisted in the care and maintenance of the family and the
household. In this case, although the money used to buy the lot
was solely from Bernard, Dorothy's care and maintenance of
the family and household are deemed contributions in the
acquisition of the lot. Article 147, 2nd paragraph is applicable,
as the lot is deemed owned in common by the common-law
spouses in equal shares as the same was acquired during their
cohabitation, without prejudice to the rights of a buyer in good
faith and for value.

277
2016 Pedro bought a parcel of land described as Cadastral Lot [a] If Pedro is a builder in good faith and Juan is an PROPERTY
No. 123 and the title was issued to his name. Juan also bought a lot owner in good faith, Juan has the right to appropriate as his
in the same place, which is described as Cadastral Lot No. 124. own the house after payment of indemnity provided for in
Pedro hired a geodetic engineer to determine the actual location of Articles 546 and 548 of the Civil Code, which are the
Lot No. 123 but for some reason, the engineer pointed to Lot No. necessary and useful expenses. As to useful expenses, Juan has
124 by mistake. Pedro hired a contractor to construct his house and the option to either refund the amount of the expenses, or pay
the latter put up a sign stating the name of the owner of the project the increase in value which the land may have acquired by
and the construction permit number. It took more than a year before reason thereof. Alternatively, under Article 448 of the Civil
the house was constructed. When Pedro was already residing in his Code, Juan has the right to oblige Pedro to pay the price of the
house, Juan told him to remove his house because it was built on land. However, Pedro cannot be obliged to buy the land if its
his (Juan's) lot. value is considerably more than that of the house. In such case,
he shall pay reasonable rent, if Juan does not choose to
Juan filed a Complaint for Recovery of Possession and
appropriate the house after proper indemnity. It is the owner of
prayed that the house be removed because Pedro is a builder in bad
the land who is authorized to exercise the options under Article
faith. Pedro filed his Answer with Counterclaim that he is entitled
448 because his right is older and by principle of accession, he
to the payment of the value of the house plus damages because he
is entitled to the ownership of the accessory thing. If Pedro is a
is a builder in good faith and that Juan is guilty of estoppel and
builder in good faith and Juan is an owner in bad faith because
laches.
Juan knew that Pedro was building on his lot and did not
oppose it (Article 453 par. 2), and Article 454 in relation to
Article 447 of the Civil Code applies. Juan shall pay the value
[a] If Pedro is a builder in good faith, what are the rights of the house and is also liable for reparation of damages;
given to Juan under the law? Explain. however, Pedro also has the right to remove or demolish the
house and ask for damages.
[b] If Pedro is a builder in bad faith, what are the rights

278
 given to Juan under the law? Explain.

[b] If Pedro is a builder in bad faith and Juan is an

owner in good faith, Juan has three options. He may
appropriate the improvements without indemnity under Article
449of the Civil Code, or demand the demolition of the house
in order to replace things to their former condition at Pedro's
expense under Article 450, or compel Pedro to pay the price of
the land. In addition to these options, Juan is also entitled to
damages from Pedro.

If Pedro is a builder in bad faith and Juan is an owner

in bad faith, it shall be as if both of them were in good faith
(Article 453, New Civil Code).

2016 Benjamin is the owner of a titled lot which is bounded on I will decide in favor of Daniel and dismiss the action PROPERTY
the north by the Maragondon River. An alluvial deposit of two (2) to quiet title filed by Benjamin. Under Article 457 of the Civil
hectares was added to the registered area. Daniel took possession of Code, the owner of lands adjoining the banks of rivers belong
the portion formed by accretion and claims that he has been in the accretion which they gradually receive from the effects of
open, continuous and undisturbed possession of said portion since the current of the waters. The accretion however, does not
1923 as shown by a tax declaration. In 1958, Benjamin filed a automatically become registered land. It must be brought under
Complaint for Quieting of Title and contends that the alluvium the Torrens system of registration by Benjamin, the reparian
belongs to him as the riparian owner and that since the alluvium is, owner. Since he did not, the then increment, not being
by law, part and parcel of the registered property, the same may be registered land, was open to acquisition through prescription
by third persons, like Daniel (Grande v. Court of Appeals, 5

279
 considered as registered property. Decide the case and explain. SCRA 524 [1962]; Cureg v. Intermed iate Appellate Court,
177 SCRA 313 [1989]).

2016 Joven and Juliana are the owners of a 30-hectare plantation The right of the registered owners, Joven and Juliana, PROPERTY;
in Cotabato, covered by a title. One day, a group of armed men to file suit to recover their property, is not barred by SALES;
forcibly entered their house and, at gun point, forced them to sign a prescription. Under Section 47 of P.D. No. 1529, no title to OWNERSHIP
Deed of Absolute Sale in favor of Romeo. Romeo got the title from registered land in derogation of the title of the registered owner
them and they were ejected from the house and threatened not to shall be acquired by prescription or adverse possession. Proof
come back or else they will be killed. The spouses went to Manila of possession by the owner in an action for reconveyance is
and resided there for more than 35 years. They never went back to immaterial and inconsequential. The right to recover
Cotabato for fear of their lives. Word came to them that peace and possession is equally imprescriptible since possession is a
order have been restored in their former place of residence and they mere consequence of ownership (Republic v. Mendoza, 627
decided to reclaim their land for the benefit of their grandchildren. SCRA 443 120101). The right of Joven and Juliana to recover
Joven and Juliana filed a suit for reconveyance of their property. is not barred by laches, either. Laches deals with unreasonable
This was opposed by the grandson of Romeo to whom the title was delay in filing the action. The owners' delay, if any, cannot be
eventually transferred, on the ground of laches and prescription. construed as deliberate and intentional. They were simply
Decide the case and rule on the defenses of laches and prescription. coerced out of Cotabato and threatened with death if they
Explain your answer. returned, and, thus, could not have filed the action.

2016 Butch got a loan from Hagibis Corporation (Hagibis) but he No, the obligation of Butch to Hagibis was not OBLIGATIONS
defaulted in the payment. A case for collection of a sum of money extinguished by the mere surrender of the SUV's to the latter, AND
was filed against him. As a defense, Butch claims that there was Dation in payment, whereby property is alienated to the CONTRACTS
already an arrangement with Hagibis on the ayment of the loan. To creditor in satisfaction of a debt in money, shall be governed
implement the same, Butch already surrendered five (5) service by the law of sales. (Article 1245.) In dacion en pago, as a

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 utility vehicles (SUVs) to the company for it to sell and the special mode of payment, the debtor offers another thing to the
proceeds to be credited to the loan as payment. Was the obligation creditor who accepts it as equivalent of payment of an
of Butch extinguished by reason of dacion en pago upon the outstanding debt. The undertaking really partakes in one sense
surrender of the SUVs? Decide and explain. of the nature of sale, that is, the creditor is really buying the
thing or property of the debtor, payment for which is to be
charged against the debtor's debt. As such, the essential
elements of a contract of sale, namely, consent, object certain,
and cause or consideration must be present. In dacion en pago
there is in reality an objective novation of the obligation where
the thing offered as an accepted equivalent of the performance
of an obligation is considered as the object of the contract of
sale, while the debt is considered as the purchase price. In any
case, common consent is an essential prerequisite, be it sale or
innovation to have the effect of totally extinguishing the debt
or obligation (Filinvest Credit Corporation vs. Philippine
Acetylene Company, Inc. G.R. No. L-50449 January 30,
1982). There being no mention in the facts that Hagibis has
given its consent to accept the SUVs as equivalent payment,
the obligation of Butch is not thereby extinguished by mere
delivery of the SUVs.

2016 Jerico, the project owner, entered into a Construction I will decide in favor of Jerico as there is no novation OBLIGATIONS
Contract with Ivan for the latter to construct his house. Jojo of the Construction Contract. Novation is never presumed, and AND
executed a Surety undertaking to guarantee the performance of the may only take place when the following are present: (1) a

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work by Ivan. Jerico and Ivan later entered into a Memorandum of previous valid obligation; (2) the agreement of all the parties to CONTRACTS
Agreement (MOA) revising the work schedule of Ivan and the the new contract; (3) the extinguishment of the old contract;
subcontractors. The MOA stated that all the stipulations of the and (4) validity of the new one. There must be consent of all
original contract not in conflict with said agreement shall remain the parties to the substitution, resulting in the extinction of the
valid and legally effective. Jojo filed a suit to declare him relieved old obligation and the creation of a new valid one. In this case,
of his undertaking as a result of the MOA because of the change in the revision of the work schedule of Ivan and the
the work schedule. Jerico claims there is no novation of the subcontractors is not shown to be so substantial as to
Construction Contract. Decide the case and explain. extinguish the old contract, and there was also no
irreconcilable incompatibility between the old and new
obligations. It has also been held in jurisprudence that a surety
may only be relieved of his undertaking if there is a material
change in the principal contract and such would make the
obligation of the surety onerous. The principal contract subject
of the surety agreement still exists, and Jojo is still bound as a
surety.

ALTERNATIVE ANSWER

I will decide against Jerico. The provisions of the Civil

Code on Guarantee, other than the benefit of excussion
(Article 2059 (2CC), are applicable and available to the surety
because a surety is a guarantor who binds himself solidarily
(Article 2047 2nd par. CC). The Supreme Court has held that
there is no reason why the provisions of Article 2079 would
not apply to a surety (Autocorp Group v. Infra Strata

282
 Assurance Corporation, 556 SCRA 250 [2008]). Article 2079
of the Civil Code provides that an extension granted to the
debtor by the creditor without the consent of the guarantor
extinguishes the guaranty. The changes in the work schedule
amount to an extension granted to the debtor without the
consent of the surety. Hence,

Jojo's obligation as a surety is extinguished. If the

change of work schedule, on the other hand, shortens the time
of completion of the project, it will amount to a novation. The
old obligation, where Jojo was obligated as a surety is
extinguished relatively as to him, leaving Ivan as still bound.

2016 Ellen entrusted her title over the lot where she is residing to I will decide in favor of Ellen. Banks, their business MORTGAGE
Patrick, her nephew, for safekeeping because of her poor eyesight. being impressed with public interest, are expected to exercise
Patrick, a gambler, prepared a Special Power of Attorney more care and prudence than private individuals in their
empowering him to mortgage the lot. Ellen's signature was forged. dealings, even those involving registered lands. The highest
With the help of Julia who represented herself as Ellen, Mega Bank degree of diligence is expected, and high standards of integrity
granted a loan to Patrick secured by a mortgage on Ellen's lot. Due and performance are even required of it.
to non-payment, Mega Bank foreclosed the mortgage and was
A mortgagee — usually, can rely on what appears on
declared the highest bidder. Title was later registered in the name of
the certificate of title presented by the mortgagor and an
the bank. When Ellen was notified that she should vacate the
innocent mortgagee is not expected to conduct an exhaustive
premises, she filed a complaint to nullify the loan with mortgage,
investigation on the history of the mortgagor's title. This rule
the auction sale and the title of Mega Bank on the ground that the
is, however, strictly applied against banking institutions. Mega

283
 bank is not a mortgagee in good faith. Decide the case with reasons. Bank cannot be considered a mortgagee in good faith as it
failed to inspect the disputed property when offered to it as
security for the loan, which could have led it to discover the
forged Special Power of Attorney.

ALTERNATIVE ANSWER:

I will decide in favor of Ellen, the victim of a forged

document. Section 52 of P.D. No. 1529 provides that after the
entry of a decree of registration, any subsequent registration
procured by a forged deed shall be null and void, even if
accompanied by the owner's duplicate certificate of title. In
this case, the registered owner, Ellen, did not lose her title, and
neither did the mortgagee, Mega Bank, acquire any right to the
property (Joaquin v. Madrid, 106 Phil. 1060 [1960]). The bank
was defrauded because it believed the imposter who had,
without authority, gained possession of Ellen's certificate of
title, and who then forged her signature to the deed of
mortgage (De Lara v. Ayroso, 95 Phil. 185, [1954/ ). It is not a
mortgagee in good faith.

2016 On March 13, 2008, Ariel entered into a Deed of Absolute I will decide in favor of Ariel and allow the MORTGAGE
Sale (DAS) with Noel where the former sold his titled lot in reformation of the agreement. The DAS and the redemption

284
 Quezon City with an area of three hundred (300) square meters to agreement constitute an equitable mortgage and Ariel may ask
the latter for the price of P300, 000.00. The prevailing market value for the reformation of the agreement to that of a Loan with
of the lot was P3, 000.00 per square meter. On March 20, 2008, Real Estate Mortgage as allowed by Article 1605 of the Civil
they executed another "Agreement to Buy Back/Redeem Property" Code. The circumstances clearly show that that the agreement
where Ariel was given an option to repurchase the property on or is an equitable mortgage, such as the: a). price of the lot was
before March 20, 2010 for the same price. Ariel, however, inadequate since it was only sold at P300, 000 when the
remained in actual possession of the lot. Since Noel did not pay the prevailing market value of such was P900, 000; b). the vendor,
taxes, Ariel paid the real property taxes to avoid a delinquency sale. Ariel, remained in actual possession of the property after the
purported sale; and c). Ariel was the one who paid the real
On March 21, 2010, Ariel sent a letter to Noel, attaching
property taxes. Under the circumstances, a presumption arises
thereto a manager's check for P300, 000.00 manifesting that he is
under Article 1602 C.C. that what was really executed was an
redeeming the property. Noel rejected the redemption claiming that
equitable mortgage. Moreover, Article 1603 C.C. provides that
the DAS was a true and valid sale representing the true intent of the
in case of doubt, a contract purporting to be a sale with right to
parties. Ariel filed a suit for the nullification of the DAS or the
repurchase shall be construed as an equitable mortgage.
reformation of said agreement to that of a Loan with Real Estate
Mortgage. He claims the DAS and the redemption agreement
constitute an equitable mortgage. Noel however claims it is a valid
sale with pacto de retro and Ariel clearly failed to redeem the
property.

As the RTC judge, decide the case with reasons.

2016 Peter, a resident of Cebu City, sent through Reliable Pera No, the trial court is not correct in awarding moral and DAMAGES
Padala (RPP) the amount of P20, 000.00 to his daughter, Paula, for exemplary damages. The damages in this case are prayed for
the payment of her tuition fee. Paula went to an RPP branch but based on the breach of contract committed by RPP in failing to

285
was informed that there was no money remitted to her name. Peter deliver the sum of money to Paula. Under the provisions of the
inquired from RPP and was informed that there was a computer Civil Code, in breach of contract, moral damages may be
glitch and the money was credited to another person. Peter and recovered when the defendant acted in bad faith or was guilty
Paula sued RPP for actual damages, moral damages and exemplary of gross negligence (amounting to bad faith) or in wanton
damages. The trial court ruled that there was no proof of pecuniary disregard of his contractual obligation. In the same fashion, to
loss to the plaintiffs but awarded moral damages of P20, 000.00 warrant the award of exemplary damages, the wrongful act
and exemplary damages of P5, 000.00. On appeal, RPP questioned must be accomplished by bad faith, and an award of damages
the award of moral and exemplary damages. Is the trial court would be allowed only if the guilty party acted in a wanton,
correct in awarding moral and exemplary damages? Explain. fraudulent, reckless or malevolent manner (Article 2232 of the
Civil Code).

Bad faith does not simply connote bad judgment or

negligence. It imports a dishonest purpose or some moral
obliquity and conscious doing of a wrong, a breach of known
duty through some motive or interest or ill will that partakes of
the nature of fraud. In this case, however, RPP's breach was
due to a computer glitch which at most can be considered as
negligence on its part, but definitely does not constitute bad
faith or fraud as would warrant the award of moral and
exemplary damages.

ALTERNATIVE ANSWER:

If the trial court finds that there was gross negligence

on the part of RPP, the award of moral damages and
exemplary damages would be proper. RPP merely alleged that
286
 the failure to remit the money to Paula was caused by a
computer glitch, but this bare assertion does not preclude the
possibility hat the trial court found gross negligence
(equivalent to bad faith) on the part of RPP. Under Article
2220 of the Civil Code, moral damages may be awarded in
cases of breaches of contract where the defendant acted
fraudulently or in bad faith. Likewise, Article 2232 provides
that the court may award exemplary damages in contacts if the
defendant acted in a wanton, fraudulent, reckless, oppressive
or malevolent manner.

2016 On February 28, 1998, Arthur filed an application for Arthur's possession should be reckoned from the date PROPERTY;
registration of title of a lot in Ternate, Cavite before the Regional of his actual possession, by himself and his predecessors-in- OWNERSHIP
Trial Court of Naic, Cavite under Section 48(b) of Commonwealth interest, since 1936. Under Section 48(b) of CA 141, as
Act No. 141 (CA 141) for judicial confirmation of imperfect title. amended by PD No. 1973, the length of the requisite
Section 48(b) of CA 141 requires possession counted from June 12, possession was changed from possession for "thirty (30) years
1945. Arthur presented testimonial and documentary evidence that immediately preceding the filing of the application" to
his possession and that of his predecessors-in- interest started in possession "since June 12, 1945 or earlier". But possession is
1936. The lot was declared alienable and disposable (A and D) in different from classification. As held in Malabanan v.
1993 based on a PENRO certification and a certified true copy of Republic, 587 SCRA 172 [2009], it is only necessary that the
the original classification made by the DENR Secretary. The land be already classified as A and D "at the time the
government opposed the application on the ground that the lot was application for registration is filed" to make public the release
certified A and D only in 1993 while the application was instituted of the property for alienation or disposition. But the possession
only in 1998. Arthur's possession of five (5) years from the date of of Arthur even prior to the classification of the land as A and D

287
declaration does not comply with the 30-year period required under shall be counted in determining the period of possession.
CA 141. Should the possession of Arthur be reckoned from the date
when the lot was declared A and D or from the date of actual
possession of the applicant? Explain. ALTERNATIVE ANSWER:

Arthur's possession should be reckoned from the date

the Ternate lot was declared alienable and disposable land of
the public domain. In Zarate v. Director of Lands, (G.R. No.
131501, July 14, 2004), the Supreme Court, citing the case of
Bracewell v. CA, (G.R. No. 107427, Jan. 25, 2000) ruled that
"possession of the property prior to the classification thereof

as alienable or disposable, cannot be credited as part of

the thirty (30)-year required under Section 48(b) of CA No.
141, as amended. In Heirs of Malabanan v. Republic (G.R. No.
179987, September 3, 2010), the Supreme Court explained that
The possession of Arthur should be reckoned only from the
date lots A and D were declared as alienable and disposable by
the State and not from the date of actual possession. Section
48(b) of the Public Land Act used the words "lands of the
public domain" or "alienable and disposable lands of the public
domain" to clearly signify that lands otherwise classified, i.e.,
mineral, forest or timber, or national parks, and lands of
patrimonial or private ownership, are outside the coverage of
the Public Land Act. What the law does not include, it

288
 excludes. The use of the descriptive phrase "alienable and
disposable" further limits the coverage of Section 48(b) to only
the agricultural lands of the public domain. Section 48(b) of
the Public Land Act, in relation to Section 14(1) of the
Property Registration Decree, presupposes that the land subject
of the application for registration must have been already
classified as agricultural land of the public domain in order for
the provision to apply. Thus, absent proof that the land is
already classified as agricultural land of the public domain, the
Regalian Doctrine applies, and overcomes the presumption
that the land is alienable and disposable as laid down in
Section 48(b) of the Public Land Act (Heirs of Malabanan v.
Republic, G.R. No. 179987 September 3, 2013)

2016 Peter and Paul entered into a Contract to Sell whereby [al As a general rule, the power to rescind an obligation CONTRACTS;
Peter, the lot owner, agreed to sell to Paul his lot on November 6, must be invoked judicially and cannot be exercised solely on a SALES
2016 for the price of P 1, 000,000.00 to be paid at the residence of party's own judgment that the other has committed a breach of
Peter in Makati City at 1:00 p.m. If the full price is paid in cash at the obligation. This is so because rescission of a contract will
the specified time and place, then Peter will execute a Deed of not be permitted for a slight or casual breach, but only for such
Absolute Sale and deliver the title to Paul. substantial and fundamental violations as would defeat the
very object of the parties in making the agreement. However,
On November 6, 2016, Paul did not show up and was not
rescission as a remedy for breach is applicable only to an
heard of from that date on. In view of the nonperformance by Paul
obligation which is extant. Be it noted that the contract
of his obligation, Peter sent a letter to Paul that he is expressly and
between the parties is a contract to sell and not a contract of

289
extra-judicially declaring the Contract to Sell rescinded and of no sale and in a contract to sell, there is a reservation of
legal and binding effect. Peter further stated that failure on the part ownership on the part of the seller and his obligation to convey
of Paul to contest the rescission within thirty (30) days from receipt title will only arise upon full payment of the purchase price.
of said letter shall mean that the latter agreed to the rescission. Nonetheless, Peter may validly cancel the contract to sell
(Olivarez v. Castillo, G.R. No. 196251 July 9, 2014).
Paul did not reply to this letter for five (5) years. Thus, Peter
decided to sell his lot to Henry in 2021. After hearing that Henry ALTERNATIVE ANSWER:
bought the lot, Paul now questions the sale of the lot to Henry and
[a] (1) Yes, Peter validly rescinded the contract to sell
files a complaint for nullification of the sale.
his lot to Paul for the latter's failure to comply with his
prestation to pay P1,000,000.00 on November 6, 2016 at 1:00
p.m. at the residence of Peter so that Peter will execute the
[a] Is the exercise by Peter of his power to rescind extra-
Deed of Absolute Sale. The rescission is actually the resolution
judicially the Contract to Sell the proper and legal way of
of the reciprocal obligation. In UP v. De los Angeles, 35
rescinding said contract? Explain.
SCRA 102 [19701, the Supreme Court ruled that the injured

[b] In case Paul made a downpayment pursuant to a party may consider the contract as rescinded and act
stipulation in the Contract to Sell, what is the legal remedy of accordingly, even without prior court action. His unilateral
Peter? determination however, is provisional, since the other party
may challenge it by suing him in court. It is then the court
which will finally determine if the rescission should be set
aside or affirmed. [13] If Paul made a down payment, Peter
may still cancel the contract because in a contract to sell, the
seller does not yet agree to transfer ownership

to the buyer. The non-payment of the price in a contract

to sell is not a breach for which the remedy of rescission may
290
 be availed of, but rather it is considered as a failure to comply
with a positive suspensive condition which

will prevent the obligation of the seller to convey title

from acquiring obligatory force (Ursal v. Court of Appeals.
G.R. No. 142411, October 14, 2005, 473 SCRA 52, citing
Chua v. Court of Appeals, 401 SCRA 54 [2003]).

2016 Don Ricardo had 2 legitimate children - Tomas and Tristan. I will deny the motion of Tomas, Jr. to be declared as ILLEGITIMATE
Tristan has 3 children. Meanwhile, Tomas had a relationship with an heir of the deceased. Tomas Jr., being an illegitimate child AND
Nancy, who was also single and had the legal capacity to marry. of the deceased legitimate son, Tomas, cannot inherit ab LEGITIMATE
Nancy became pregnant and gave birth to Tomas, Jr. After the birth intestate from the deceased, Don Ricardo, because of the iron CHILDREN
of Tomas, Jr., his father, Tomas, died. Later, Don Ricardo died curtain rule under Article 992 of the Civil Code. Tomas cannot
without a will and Tristan opposed the motion of Tomas, Jr. to be argue that Article 992 is violative of the equal protection
declared an heir of the deceased since he is an illegitimate child. clause because equal protection simply requires that all
Tomas, Jr. countered that Article 992 of the Civil Code is persons or things similarly situated should be treated alike,
unconstitutional for violation of the equal protection of the laws. both as to rights conferred and responsibilities imposed
He explained that an illegitimate child of an illegitimate parent is (Ichong v. Hernandez 101 Phil. 1155 [May 31, 1957]).
allowed to inherit under Articles 902, 982 and 990 of the Civil
It, however, does not require the universal application
Code while he - an illegitimate child of a legitimate father - cannot.
of the laws to all persons or things without distinction. What it
Civil Law commentator Arturo Tolentino opined that Article 992
simply requires is equality among equals as determined
created an absurdity and committed an injustice because while the
according to a valid classification. Indeed, the equal protection
illegitimate descendant of an illegitimate child can represent, the
clause permits classification
illegitimate descendant of a legitimate child cannot. Decide the case

291
 and explain.

2016 Macario bought a titled lot from Ramon, got the title and Macario is preferred since the registration of his OWNERSHIP;
took possession of the lot. Since Macario did not have the money to adverse claim was made ahead of the notice of levy and writ of PROPERTY;
pay the taxes, fees and registration expenses, he was not able to execution in favor of Alex. Macario's adverse claim, coupled SALES
register the Deed of Absolute Sale. Upon advice, he merely with the fact that he was in possession of the disputed
executed an Affidavit of Adverse Claim and had it annotated at the property, are circumstances which should have put Alex on
back of the title. A few years after, he received a Notice of Levy on constructive notice that the property being offered to him had
Attachment and Writ of Execution in favor of Alex. The notice, already been sold to another (Ching v Enrile, G.R. No. 156076
writ and certificate of sale were annotated at the back of the title [2008]). The contention that the adverse claim is effective only
still in Ramon's name. Alex contends that since the Affidavit of for 30 years is puerile. In Sajonas v. Court of Appeals, 258
Adverse Claim is effective only for 30 days from the date of its (SCRA 79 [1996]), the Court held that the adverse claim does
registration, then its validity has expired. Macario posits that the not ipso facto lose its validity since an independent action is
annotation of his adverse claim is notice to the whole world of his still necessary to render it ineffective. Until then, the adverse
purchase of the lot in question. Who has the superior right over the claim shall continue as a prior lien on the property.
disputed property - Macario or Alex? Explain.

2016 Dr. Jack, a surgeon, holds clinic at the St. Vincent's Yes, St. Vincent's Hospital is liable. In the case of TORTS AND
Hospital and pays rent to the hospital. The fees of Dr. Jack are paid Professional Services v. Agana (513 SCRA 478 [2007J), the DAMAGES
directly to him by the patient or through the cashier of the hospital. Supreme Court held that the hospital is liable to the Aganas,
The hospital publicly displays in the lobby the names and not under the principle of respondeat superior for lack of
specializations of the doctors associated or accredited by it, evidence of an employer-employee relationship with Dr.
including that of Dr. Jack. Marta engaged the services of Dr. Jack Ampil but under the principle of ostensible agency for the

292
because of recurring stomach pain. It was diagnosed that she is negligence of Dr. Ampil and, pro hac vice, under the principle
suffering from cancer and had to be operated on. Before the of corporate negligence for its failure to perform its duties as a
operation, she was asked to sign a "consent for hospital care," hospital. While it is true that there was insufficient evidence
which reads: that St. Vincent's Hospital exercised the power of control or
wielded such power over the means and the details of the
"Permission is hereby given to the medical, nursing and
specific process by which Dr. Jack applied his skills in Marta's
laboratory staff of the St. Vincent's Hospital to perform such
treatment, there is ample evidence that St. Vincent's Hospital
procedures and to administer such medications and treatments as
held out to the patient, Marta, that Dr. Jack was its agent
may be deemed necessary or advisable by the physicians of this
(principle of ostensible agency). The two factors that
hospital for and during the confinement."
determine apparent authority are present: (1) the hospital's

After the surgery, the attending nurses reported that two (2) implied manifestation to the patient which led the latter to
sponges were missing. Later, Marta died due to complications conclude that the doctor was the hospital's agent; and (2) the
brought about by the sponges that were left in her stomach. The patient's reliance upon the conduct of the hospital and the
husband of Marta sued the hospital and Dr. Jack for damages doctor, consistent with ordinary care and prudence.
arising from negligence in the medical procedure. The hospital
The corporate negligence ascribed to St. Vincent's
raised the defense that Dr. Jack is not its employee as it did not hire
Hospital is different form the medical negligence attributed to
Dr. Jack nor pay him any salary or compensation. It has absolutely
Dr. Jack. The duties of the hospital are distinct from those of
no control over the medical services and treatment being provided
the doctor-consultant practicing within its premises in relation
by Dr. Jack. Dr. Jack even signed an agreement that he holds the
to the patient; hence, the failure of St. Vincent's Hospital to
hospital free and harmless from any liability arising from his
fulfill its duties as a hospital corporation gave rise to a direct
medical practice in the hospital.
liability to Marta distinct from that of Dr. Jack.

Is St. Vincent's Hospital liable for the negligence of Dr.

Jack? Explain your answer.

293
2016 Brad and Angelina had a secret marriage before a pastor [a] I will grant the petition for judicial declaration of MARRIAGE
whose office is located in Arroceros Street, City of Manila. They nullity of Brad and Angelina's marriage on the ground that
paid money to the pastor who took care of all the documentation. there is a lack of a marriage license. Article 3 of the Family
When Angelina wanted to go to the U.S., she found out that there Code provides that one of the formal requisites of marriage is a
was no marriage license issued to them before their marriage. Since valid marriage license and Article 4 of the same Code states
their marriage was solemnized in 1995 after the effectivity of the that absence of any of the essential or formal requisites shall
Family Code, Angelina filed a petition for judicial declaration of render the marriage void ab initio. In Abbas v. Abbas, (689
nullity on the strength of a certification by the Civil Registrar of SCRA 646 120131), the Supreme Court declared the marriage
Manila that, after a diligent and exhaustive search, the alleged as void ab initio because there is proofof lack of record of
marriage license indicated in the marriage certificate does not marriage license.
appear in the records and cannot be found.
The certification by the Civil Registrar of Manila that,
after a diligent and exhaustive search, the alleged marriage
license indicated in the marriage certificate does not appear in
[a] Decide the case and explain.
the records and cannot be found proves that the marriage of
[b] In case the marriage was solemnized in 1980 before the Brad and Angelina was solemnized without the requisite
effectivity of the Family Code, is it required that a judicial petition marriage license and is therefore void ab initio. The absence of
be filed to declare the marriage null and void? Explain. the marriage license was certified to by the local civil registrar
who is the official custodian of these documents and who is in
the best position to certify as to the existence of these records.
Also, there is a presumption of regularity in the performance
official duty (Republic v. CA and Castro, 236 SCRA 257
[1994]).

294
 [ b] No, it is not required that a judicial petition be filed
to declare the marriage null and void when said marriage was
solemnized before the effectivity of the Family Code. As
stated in the cases of People v. Mendoza, 95 Phil. 845 [1954]
and People v. Aragon, 100

Phil. 1033 [1957], the old rule is that where a marriage

is illegal and void from its performance, no judicial is
necessary to establish its invalidity.

ALTERNATIVE ANSWER:

[b] Irrespective of when the marriage took place, other

than for purposes of remarriage, no judicial action is necessary
to declare a marriage an absolute nullity. For other purposes,
such as but not limited to determination of heirship, legitimacy
or illegitimacy of a child, settlement of estate, dissolution of
property regime, or a criminal case for that matter, the court
may pass upon the validity of marriage even in a suit not
directly instituted to question the same so long as it is essential
to the determination of the case. This is without prejudice to
any issue that may arise in the case. When such need arises, a
final judgment of declaration of nullity is necessary even if the
purpose is other than to remarry. The clause on the basis of a

295
 final judgment declaring such previous marriage void in
Article 40 of the Family Code connotes that such final
judgment need to be obtained only for purpose of remarriage
(Ablaza v. Republic, 628 SCRA 2712010]).

2016 Princess married Roberto and bore a son, Onofre. Roberto Jojo, Princess's father, is entitled to the lot. This is a OWNERSHIP;
died in a plane crash. Princess later married Mark and they also had clear case of reserva troncal. The Origin is Onofre. The INTESTATE;
a son - Pepito. Onofre donated to Pepito, his half-brother, a lot in Prepositus is Pepito. The mode of transmission from Onofre to RESERVA
Makati City worth P3, 000,000.00. Pepito succumbed to an illness Pepito is donation (hence, by gratuitous title). The Reservista TRONCAL
and died intestate. The lot given to Pepito by Onofre was inherited is Mark, who acquired it from his descendant (son) Pepito by
by his father, Mark. Mark also died intestate. Lonely, Princess legitime and intestacy (hence, by operation of law).
followed Mark to the life beyond. The claimants to the subject lot
The Reservatario is Princess, a relative of the
emerged - Jojo, the father of Princess; Victor, the father of Mark;
Prepositus Pepito within the third degree and who belonged to
and Jerico, the father of Roberto.
the line of origin (the maternal line).
Who among the three (3) ascendants is entitled to the lot?
Line of origin is the maternal line because Onofre (the
Explain.
Origin) and Pepito (the Prepositus) are maternal half-blood
siblings.

When Mark (Reservista) died, the property passed to

Princess as sole reservatario, thus extinguishing the reserva
troncal.

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 Upon Princess's death, the property was transmitted ab
intestate to her father Jojo. Transmission to Jojo is by the
ordinary rules of compulsory and intestate succession, not by
reserva troncal, because the reserva was extinguished upon the
transmission of the property to Princess, this making Princess
the absolute owner subject to no reserva.

2017 State whether the following marital unions are valid, void, A. Voidable. Under the Family Code, a marriage is MARRIAGE
or voidable, and give the corresponding justifications for your voidable if either of the party was afflicted with a sexually
answer: transmissible disease which is serious and incurable, such as
AIDS. Here, Ador was afflicted with AIDS at the time of the
a. Ador and Becky’s marriage wherein Ador was afflicted
celebration of the marriage, a sexually transmissible disease
with AIDS prior to the marriage. (2%)
considered to be serious and incurable. [Basis: Article 45(6),

b. Carlos’ marriage to Dina which took place after Dina had Family Code;]
poisoned her previous husband Edu in order to free herself from
any impediment in order to live with Carlos. (2%)
B. Void. Under the Family Code, a marriage is
c. Eli and Fely’s marriage solemnized seven years after the
declared void by reason of public policy when one, with the
disappearance of Chona, Eli’s previous spouse, after the plane she
intention to marry the other, killed that other spouse or his or
had boarded crashed in the West Philippine Sea. (2%)
her own spouse. Here, the wife killed her previous husband for

d. David who married Lina immediately the day after the purpose of marrying the second husband. [Basis: Article 38
obtaining a judicial decree annulling his prior marriage to Elisa. (9), Family Code;]

297
(2%)

e. Marriage of Zoren and Carmina who did not secure a C. If the marriage took place during the effectivity of
marriage license prior to their wedding, but lived together as the Family Code and Chona is in fact alive, the subsequent
husband and wife for 10 years without any legal impediment to marriage is void for being bigamous because Eli failed to
marry. (2%) obtain a judicial declaration of presumptive death of the
absentee spouse prior to contracting the subsequent marriage.
Under the Family Code, a judicial declaration of presumptive
death of the absentee is required to be obtained by the spouse
present to make the subsequent marriage valid. However, had
Chona really died when the plane crashed, the subsequent
marriage of Eli is valid because the prior marriage was already
terminated. [Basis: Article 41, Family Code; Armas v.
Calisterio, 330 SCRA 201 (2000);] But if the subsequent
marriage took place during the effectivity of the Civil Code,
the marriage is valid until annulled (voidable) because no
judicial declaration of presumptive death was required under
the Civil Code.

D.Void. Under the Family Code, David is required to

record the judgment of annullment and the partition and
distribution of the properties of the spouses, as well as the
delivery of the presumptive legitimes of their children, in the
appropriate civil registry and registries of property prior to
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 contracting the second marriage; otherwise, the subsequent
marriage is void. [Basis: Article 35(6), in relation to Artcicles
53 and 52, Family Code]

E. Valid because their marriage is exceptional and

exempt from the requirement of a marriage license. Under the
Family Code, the marriage of a man and woman who lived
exclusively as husband and wife for at least five years and
without impediment is exempt from the requirement of a
marriage license. [Basis: Article 34, Family Code;]

2017 In 1960, Rigor and Mike occupied two separate but adjacent A. As to the land occupied Mike, the same remains PROPERTY;
tracts of land in Mindoro. Rigor’s tract was classified as timber property of the public dominion. According to jurisprudence, OWNERSHIP
land while Mike’s was classified as agricultural land. Each of them the classification of the property as alienable and disposable
fenced and cultivated his own tract continuously for 30 years. In land of the public domain does not change its status as
1991, the Government declared the land occupied by Mike as property of the public dominion. There must be an express
alienable and disposable, and the one cultivated by Rigor as no declaration by the State that the public dominion property is no
longer intended for public use or public service. Rigor and Mike longer intended for public service or the development of the
now come to you today for legal advice in asserting their right of national wealth or that the property has been converted into
ownership of their respective lands based on their long possession patrimonial. Without such express declaration, the property,
and occupation since 1960. even if classified as alienable or disposable, remains property
of the public dominion. [Basis: Heirs of Mario Malabanan v.
a. What are the legal consequences of the 1991 declarations
Republic, 587 SCRA 172 (2009); Heirs of Mario Malabanan v.

299
of the Government respecting the lands? Explain your answer. Republic, 704 SCRA 561 (2013);] As to the land occupied by
Rigor, the declaration that it is no longer intended for public
b. Given that, according to Section 48(b) of Commonwealth
use or public service converted the same into patrimonial
Act No. 141, in relation to Section 14(1) of Presidential Decree No.
property provided that such express declaration was in the
1529, the open, continuous, exclusive, and notorious possession
form of a law duly enacted by Congress or in a Presidential
and occupation of alienable and disposable lands of the public
Proclamation in cases where the President was duly authorized
domain as basis for judicial confirmation of imperfect title must be
by law. According to jurisprudence, when public land is no
from June 12, 1945, or earlier, may Mike nevertheless validly base
longer intended for public use, public service or for the
his assertion of the right of ownership on prescription under the
development of the national wealth it is thereby effectively
Civil Code? Explain your answer.
removed from the ambit of public dominion and converted into

c. Does Rigor have legal basis for his application for patrimonnial provided that the declaration of such conversion
judicial confirmation of imperfect title based on prescription as must be made in the form of a law duly enacted by Congress or
defined by the Civil Code given that, like Mike, his open, by a Presidential proclamation in cases where the President is
continuous, exclusive, and notorious possession and occupation duly authorized by law to that effect. [Basis: Heirs of Mario
was not since June 12, 1945, or earlier, and his tract of land was Malabanan v. Republic, 587 SCRA 172 (2009); Heirs of Mario
timber land until the declaration in 1991? Explain your answer. Malabanan v. Republic, 704 SCRA 561 (2013);]

B. No, because the land remains property of public

dominion and, therefore, not susceptible to acquisition by
prescription. According to jurisprudence, the classification of
the subject property as alienable and disposable land of the
public domain does not change its status as property of the
public dominion. In order to convert the property into

300
patrimonial, there must be an express declaration by the State
that the public dominion property is no longer intended for
public service or the development of the national wealth or that
the property has been converted into patrimonial. Without such
express declaration, the property, even if classified as alienable
or disposable, remains property of the public dominion, and
thus incapable of acquisition by prescription. [Basis: Heirs of
Mario Malabanan v. Republic, 587 SCRA 172 (2009); Heirs of
Mario Malabanan v. Republic, 704 SCRA 561 (2013] Here,
the declaration of the property into alienable and disposable
land of the public domain in 1991 did not convert the property
into patrimonial in the absence of an express declaration of
such conversion into patrimonial in the form of a law duly
enacted by Congress or by a Presidential proclamation in cases
where the President is duly authorized by law to that effect.

C. None, because Rigor’s possession was short of the

period required by the Civil Code for purposes of acquisitive
prescription which requires ten (10) years of continuous
possession, if possession was in good faith and with a just title,
or thirty years, in any event. While the property may be
considered converted into patrimomial because of the 1991
declaration that it is no longer intended for public use or public
service (provided that the declaration be in the form of a law of
a law duly enacted by Congress or by a Presidential

301
 proclamation in cases where the President is duly authorized
by law to that effect), Rigor failed to complete the 30-year
period required by law in case of extra-ordinary prescription.
Since the property was converted into patrimonial only in
1991, the period of presciption commenced to run beginning
that year only. Rigor’s possession prior to the conversion of
the property into patrimonial cannot be counted for the purpose
of completing the prescriptive period because prescription did
not operate against the State at that time, the property then
being public dominion property. Rigor may not likewise
acquire ownership by virtue of the shorter 10-year ordinary
prescription because his possession was not in good faith and
without a just title. [Basis: Heirs of Mario Malabanan v.
Republic, 587 SCRA 172 (2009); Heirs of Mario Malabanan v.
Republic, 704 SCRA 561 (2013);]

2017 Josef owns a piece of land in Pampanga. The National The interest earned belongs to Josef because bank PROPERTY
Housing Authority (NHA) sought to expropriate the property for its interest partakes of the nature of civil fruits under Article 442
socialized housing project. The trial court fixed the just of the Civil Code and shall belong to the owner of the principal
compensation for the property at P50 million. The NHA thing. When the National Housing Authority deposited the P50
immediately deposited the same at the authorized depository bank Million as payment for the just compensation with an
and filed a motion for the issuance of a writ of possession with the authorized depositary bank for the purpose of obtaining a writ
trial court. Unfortunately, there was delay in the resolution of the of possession, it is deemed to be a constructive delivery of the
motion. Meanwhile, the amount deposited earned interest. When said amount to Josef. Since Josef is entitled to the P50 Million

302
 Josef sought the release of the amount deposited, NHA argued that and undisputably the owner of the said principal amount, the
Josef should only be entitled to P50 million. Who owns the interest interest yield, as accession, in a bank deposit should likewise
earned? pertain to the owner of the money deposited. Being an attribute
of ownership (jus fruendi), Josef’s right over the fruits, that is
the bank interests, must be respected. [Basis: Republic v. Holy
Trinity Realty Development Corp., G.R. No. 172410, April 14,
2008]

2017 A. Distinguish antichresis from usufruct. A. They are distinguished as follows: (1) ANTICHRESIS;
Antichresis is always a contract while usufruct need not arise USUFRUCT;
B. Distinguish commodatum from mutuum.
from a contract because it may also be constituted by law or by COMMODATUM;
other acts inter vivos, such as donation, or in a last will and MUTUUM
testament, or by prescription. (2) The subject matter of
antichresis is always a real property while the subject matter of
usufruct may either be real property or personal property. (3)
Antichresis is an accessory contract or contract of security
while usufruct is a real right. (4) While in both, the fruits do
not pertain to the owner, the usufructuary is entitled to enjoy
the fruits while the antichretic creditor has the obligation to
apply the fruits to the payment of the interest, if owing, and
therefatre to the principal of the credit.

B. They are distinguished, as follows: (1) As to

subject matter: The subject matter of commodatum is

303
 ordinarily non-consumable while the subject matter of mutuum
is either money or consumable; (2) As to compensation:
Commodatum is essentially gratuitous while mutuum may be
gratuitous or with a stipulation to pay interest; (3) As to right
in subject matter: In commodatum, there is no transmission fo
ownership of the thing loaned while in mutuum, the borrower
acquires ownership of the thing borrowed. (4) As to duty of
borrower: In commodatum, the same thing borrowed is
required to be returned while in mutuum, the borrower
discharges himself, not by returning the identical thing loaned,
but by paying its equivalent in kind, quality and quantity.

2017 Jacob has owned a farm land in Ramos, Tarlac. In 2012, Liz The remedy available to Jacob is accion publiciana, or ACCION
surreptitiously entered and cultivated the property. In 2014, Jacob an action for the recovery of the better right of possession. It PUBLICIANA;
discovered Liz’s presence in and cultivation of the property. Due to also refers to an ejectment suit filed after the expiration of one PROPERTY
his being busy attending to his business in Cebu, he tolerated Liz’s year from accrual of the cause of action or from the unalwful
cultivation of the property. Subsequently, in December 2016, Jacob withholding of possession of the realty. Since the entry made
wanted to regain possession of the property; hence, he sent a letter by Liz is through stealth, Jacob could have filed an action for
to Liz demanding that she vacate the property. Liz did not vacate forcible entry. Ordinarily, the one-year period within which to
despite the demand. Jacob comes to enlist your legal assistance to bring an action for forcible entry is generally counted from the
bring an action against Liz to recover the possession of the date of actual entry on the land, except that when the entry is
property. What remedies are available to Jacob to recover through stealth, the one-year period is counted from the time
possession of his property under the circumstances? Explain your the plaintiff learned thereof. Here, since more than one year
had elapsed since Jacob learned of the entry made by Liz

304
 answer. through stealth, the action that may be filed by Jacob is no
longer forcible entry, but an accion publiciana. [Basis: Canlas
v. Tubil, 601 SCRA 147 (2009); Valdez v. CA, 489 SCRA 369
(2006);]

2017 Tyler owns a lot that is enclosed by the lots of Riley to the No, Dylan is not entitled to a grant of compulsory right RIGHT OF WAY
North and East, of Dylan to the South, and of Reece to the West. of way because he has an adequate outlet going to the public
The current route to the public highway is a kilometer’s walk highway. One of the requisites for a compulsory grant of right
through the northern lot of Riley, but the route is a rough road that of way is that the estate of the claimant of a right of way must
gets muddy during the rainy season, and is inconvenient because it be isolated and without adequate outlet to a public highway.
is only 2.5 meters wide. Tyler’s nearest access to the public The true standard for the grant of compulsory right of way is
highway would be through the southern lot of Dylan. May Dylan be “adequacy” of outlet going to a public highway and not the
legally required to afford to Tyler a right of way through his convenience of the dominant estate. In the case at bar, there is
property? Explain your answer. already an existing adquate outlet from the dominant estate to
a public highway. Even if said outlet be incovenient, the need
to open up another servitude is entirely unjustified. [Basis:
Article 649, Civil Code; Dichoso, Jr. v. Marcos, 647 SCRA
495 (2011); Costabella Corp. v. CA, 193 SCRA 333 (1991);]

2017 Alice agreed to sell a parcel of land with an area of 500 A. No, because in the agreement between Alice and OWNERSHIP;
square meters registered in her name and covered by TCT No. Bernadette the ownership is reserved in the vendor and is not PROPERTY;
12345 in favor of Bernadette for the amount of P900,000. Their to pass to the vendee until full payment of the purchase price, SALES
agreement dated October 15, 2015, reads as follows: I, which makes the contract one of contract to sell and not a
Bernadette, agree to buy the lot owned by Alice covered by contract of sale. Distinctions between a contract to sell and a

305
TCT No. 12345 for the amount of P900,000 subject to the contract of sale are well-established in jurisprudence. In a
following schedule of payment: Upon signing of agreement – contract of sale, the title to the property passes to the vendee
P100,000 November 15, 2015 – P200,000 December 15, 2015 – upon the delivery of the thing sold; in a contract to sell,
P200,000 January 15, 2016 – P200,000 February 15, 2016 – ownership is, by agreement, reserved in the vendor and is not
P200,000 Title to the property shall be transferred upon full to pass to the vendee until full payment of the purchase price.
payment of P900,000 on or before February 15, 2016. After Otherwise stated, in a contract of sale, the vendor loses
making the initial payment of P100,000 on October 15, 2015, ownership over the property and cannot recover it until and
and the second installment of P200,000 on November 15, 2015, unless the contract is resolved or rescinded; whereas, in a
Bernadette defaulted despite repeated demands from Alice. In contract to sell, title is retained by the vendor until full
December 2016, Bernadette offered to pay her balance but payment of the price. In the latter contract, payment of the
Alice refused and told her that the land was no longer for sale. price is a positive suspensive condition, failure of which is not
Due to the refusal, Bernadette caused the annotation of her a breach but an event that prevents the obligation of the vendor
adverse claim upon TCT No. 12345 on December 19, 2016. to convey title from becoming effective. [Saberon v.
Later on, Bernadette discovered that Alice had sold the property Ventanilla, Jr., 722 SCRA 287 (2014); Spouses Torrecampo v.
to Chona on February 5, 2016, and that TCT No. 12345 had Alindogan, 545 Phil. 686 (2007);] In the case at bar, the
been cancelled and another one issued (TCT No. 67891) in contract entered between the parties is a contract to sell
favor of Chona as the new owner. Bernadette sued Alice and because ownership is retained by the vendor and is not to pass
Chona for specific performance, annulment of sale and to the vendee until full payment of the purchase price.
cancellation of TCT No. 67891. Bernadette insisted that she had
entered into a contract of sale with Alice; and that because
Alice had engaged in double sale, TCT No. 67891 should be B. NO, because there was no previous sale of the same
cancelled and another title be issued in Bernadette’s favor. property prior to its sale to Chona. Despite the earlier
transaction of Alice with Bernadette, the former is not guilty of
a. Did Alice and Bernadette enter into a contract of sale of
double sale because the previous transaction with Bernadette is

306
 the lot covered by TCT No. 12345? Explain your answer. charactrerized as a contract to sell. In a contract to sell, there
being no previous sale of the property, a third person buying
b. Did Alice engage in double sale of the property? Explain
such property despite the fulfillment of the suspensive
your answer.
condition such as the full payment of the purchase price, for
instance, cannot be deemed a buyer in bad faith and the
prospective buyer cannot seek the relief of reconveyance of the
property. There is no double sale in such case. Title to the
property will transfer to the buyer after registration because
there is no defect in the owner-sellers title per se, but the latter,
of course, may be sued for damages by the intending buyer.
[Basis: Coronel v. CA, 263 SCRA 15 (1996);]

2017 Pedro had worked for 15 years in Saudi Arabia when he A. Pedro’s legal heirs are his legitimate child, Alex, LEGITIMATE &
finally decided to engage in farming in his home province and his three illegitimate chidlren with Veneranda. Pedro’s ILLEGTIMATE
where his 10-hectare farmland valued at P2,000,000 was chidlren with Veneranda are illegitimate because they were CHILDREN;
located. He had already P3,000,000 savings from his long stint conceived and born outside of a valid marriage. Alex, on the HEIRS
in Saudi Arabia. Eagerly awaiting Pedro’s arrival at the NAIA other hand, is a legitimate child because she was conceived or
were his aging parents Modesto and Jacinta, his common-law born inside a valid marriage. Pedro’s surviving parents are not
spouse Veneranda, their three children, and Alex, his child by legal heirs because they are excluded by Alex. In intestate
Carol, his departed legal wife. Sadly for all of them, Pedro succession, the legitimate ascendants do not become legal heirs
suffered a stroke because of his over-excitement just as the if there is a surviving legitimate descendant, such as Alex in
plane was about to land, and died without seeing any of them. the problem. Veneranda is not a legal heir of Pedro because
The farmland and the savings were all the properties he left. she and Pedro were not married. Ordinarily, the share of an
illegitimate child in intestate succession is one-half of the share

307
 (a) State who are Pedro’s legal heirs, and the shares of of the legitimate child. Considering, however, that the three
each legal heir to the estate? Explain your answer. illegitimate chidlren will impair the legitime of Alex if the
foregoing formula is followed, Alex is entitled instead to get
(b) Assuming that Pedro’s will is discovered soon after
his legitime, which is ½ of the estate, or P2.5 Million, while
his funeral. In the will, he disposed of half of his estate in favor
the remaining P2.5 Million is to be divided equally among the
of Veneranda, and the other half in favor of his children and his
three illegitimate children of Pedro. Their legitimes in this case
parents in equal shares. Assuming also that the will is admitted
will likewise be their shares in intestate succession.
to probate by the proper court. Are the testamentary
dispositions valid and effective under the law on succession?
Explain your answer.
B. No, because the testamentary dispositions impair the
legitimes of Pedro’s compulsory heirs. Following the
provisions of the Civil Code, only Alex and Pedro’s three
illegitimate children are Pedro’s compulsory heirs. Since Alex
is Pedro’s legitimate descendant and a primary compulsory
heir, she excludes Pedro’s parents as compulsory heirs, the
latter being merely secondary compulsory heirs. However, the
three illegitimate chidlren are considered concurring
compulsory heirs who are also entitled to a share of the
legitime. Under the law, the legitime of Alex, being a
legitimate descendant, is ½ of Pedro’s estate, or P2.5 Million.
The legitime of each of the illegitimate children is supposed to
be ½ of the share of Alex, or P1.25 Million each. Considering,
however, that the remaining portion of the estate is no longer
sufficient to cover the supposed legitimes of the three

308
 illegitimate children, they will simply share equally in the
remaining P2.5 Million. Consequently, there is no disposable
free portion that Pedro may validly give to Veneranda or to his
parents. Hence, the will is intrinsically invalid.

2017 Danny and Elsa were married in 2002. In 2012, Elsa left The sale is void because the subject property is a MARRIAGE
the conjugal home and her two minor children with Danny to community property which was sold without the consent of
live with her paramour. In 2015. Danny sold without EIsa’s one of the spouses. Since the marriage of Danny and Elsa was
consent a parcel of land registered in his name that he had celebrated during the effectivity of the Family Code without a
purchased prior to the marriage. Danny used the proceeds of the marriage settlement, their property regime is absolute
sale to pay for his children’s tuition fees. Is the sale valid, void community of property, which is the property regime that
or voidable? Explain your answer. applies by default under the Family Code in the absence of a
marriage settlement. Under the regime of absolute community,
properties acquired by the future spouses prior to the
celebration of the marriage shall become community property
after the marriage. Hence the subject property is a community
property. Under the regime of absolute community, the
disposition or encumbrance of community property must have
the written consent of the other spouse or the authority of the
court without which the disposition or encumbrance is void
Here, the sale of the absolute community property by the
husband without the consent of the wife or the authority of the
court renders the sale void, whatever may be the reason for
such sale. The husband should have obtained court

309
 authorization in selling the community property for the
purpose of using the proceeds thereof to pay his children’s
tuition fees. [[Basis: Articles 75, 91 and 96, Family Code;].

2017 Briefly explain whether the following contracts are A. Voidable. Under the Civil Code, a contract OBLIGATIONS
valid, rescissible, unenforceable, or void: where one of the parties is incapable of giving consent to a AND
contract is voidable. A minor, like Andy in this case, is CONTRACTS
A. A contract of sale between Lana and Andy
incapable of giving consent to a contract. Hence, the contract
wherein 16-year old Lana agreed to sell her grand piano for
is voidable. [Basis: Articles 1390(1) and 1327, Civil Code;]
25,000.00.
B. Void. Under the Civil Code, a contract whose
B. A contract of lease of the Philippine Sea
cause, object or purpose is contrary to law, morals, good
entered by and between Mitoy and Elsa.
customs, public order or public policy is void. The Philippine

C. A barter of toys executed by 12-year old Sea is either a property of public dominion (if within
Clarence and 10-year old Czar Philippine territory) or a common thing (if outside of
Philippine territory) and, therefore, outside the commerce of
D. A sale entered by Barri and Garri, both men. Hence, it cannot be made the object of a contract. [Basis:
minors, which their parents later ratified. Articles 1409(1) and 1347, Civil Code;]

E. Jenny’s sale of her car to Celestine in order C. Unenforceable. Under the Civil Code, a
to evade attachment by Jenny’s creditors. contract where both parties are incapable of giving consent to a
contract is unenforceable. Here, both parties to the contract are
minors and, therefore, incapable of giving consent to a
contract. [Basis: Articles 1403(3) and 1327, Civil Code;]

310
 D. Valid. Under the Civil Code, while both parties
to the contract are minors and, therefore, incapable of giving
consent, the ratification made by the parents of both the
contracting parties shall nonetheless validate the contract from
the inception. [Basis: Article 1407, Civil Code;]

E. Rescissible. Under the Civil Code, a contract

undertaken in fraud of creditors is rescissible when the latter
cannot in any other manner collect the claims due them.
[Basis: Article 1381 (3), Civil Code;]

2017 Zeny and Nolan were best friends for a long time I will advice Nolan to file first an action to fix the term OBLIGATIONS
already. Zeny borrowed 310,000.00 from Nolan, evidenced by a or period because the fulfillment of the obligation itself cannot AND
promissory note whereby Zeny promised to pay the loan “once be demanded unti after the court has fixed the period for CONTRACTS
his means permit.” Two months later, they had a quarrel that compliance therewith, and such period has arrived. Any action
broke their longstanding friendship. Nolan seeks your advice on to compel performance brought before that would be
how to collect from Zeny despite the tenor of the promissory premature. Under the Civil Code, when the debtor binds
note. what will your advice be? Explain your answer. himself when his means permit to do so, the obligation shall be
deemed to be one with a period, but which period shall be
fixed by the court. In such a situation, the court is authorized to
fix the period because the duration of the period depends
exclusively upon the will of the debtor. Any action filed prior
to the expiration of the period to be fixed by the court would
be premature. [Basis: Articles 1180 and 1197, Civil Code;

311
 Concepcion v. People, 74 Phil. 63; Gonzales v. Jose, 66 Phil.
369;]

2017 Krystal owns a parcel of land covered by TCT No. No, because the flaw in the original transaction is OWNERSHIP
12345 in Angeles City, Due to severe financial constraints, considered cured by the subsequent transfer of the property to
Krystal was lorc based in the property to RBP Corporation, a a Filipino citizen who is constitutionally qualified to own land
foreign corporation based in South Korea. Subsequently, RBP in the Philippines. While the Constitutuion prohibits an alien
Corporation sold the property to Gloria, one of its most valued from acquiring or holding title to private lands or to lands of
clients. Wanting her property back, Krystal, learning of the the public domain in the Philippines, except only by way of
transfer of the property from RBP Corporation to Gloria, sued hereditary succession, jurisprudence is consistent that if land is
both of them in the Regional Trial Court (RTC) for annulment invalidly transferred to an alien who subsequently becomes a
of sale and for reconveyance. She alleged that the sale by RBP citizen or transfers it to a citizen, the flaw in the original
Corporation to Gloria was void because RBP Corporation was a transaction is considered cured and the title of the transferee is
foreign corporation prohibited by the Constitution from rendered valid. In the case at bar, the subsequent transfer of the
acquiring and owning lands in the Philippines. Will KrystaI’s property to Gloria, a Filipino citizen, has the effect of curing
suit for annulment of sale and reconveyance prosper? Explain the defect of the original transaction in favor of RBP
your answer. Corporation because the land has since become the property of
a Filipino citizen who is constitutionally qualified to own land.
As such, the prior invalid transfer can no longer be assailed
because the objective of the constitutional provision -- to keep
our land in Filipino hands -- has been served. [Basis: United
Church Board of World Ministries vs. Sebastian, 159 SCRA
446, 451- 452, March 30, 1988; per Cruz, J. See also Tejido
vs. Zamacoma, 138 SCRA 78, August 7, 1985; Sarsosa vda. de

312
 Barsobiavs. Cuenco, 113 SCRA 547, April 16, 1982; Godinez
vs. Fong Pak Luen, 120 SCRA 223, January 27, 1983; Yap vs.
Maravillas, 121 SCRA 244, March 28, 1983; De Castro vs.
Tan, 129 SCRA 85, April 30, 1984]

2017 TRUE or FALSE – Explain your answers. A. False, because rights which are not patrimonial PROPERTY;
in nature, such as the right to liberty, the right to honor, family EASEMENTS
A. All rights are considered as property.
rights, etc., cannot be considered as property. [Basis: II

B. A lessee cannot bring a case for quieting of Tolentino, Civil Code of the Philippines, 1992 ed., pp. 4-5]
title respecting the property that he leases.
B. False, because the action may be filed by

C. Only the city or municipal mayor can file a anyone who has legal or equitable title to, or interest in, the
civil action to abate a public nuisance. property which is the subject matter of the action. Hence, any
holder of interest to the property or right to possession of the
D. Possession of a movable property is lost land, including the interest of a lessee, may bring an action for
when the location of the said movable is unknown to the quieting of title. [Basis: Article 477, Civil Code]
owner.
C. False, because under the law it is the district
E. Continuous non-apparent easements can be health officer and not the chief executive of the local
acquired either through title or by prescription. government who has been authorized to file a civil action to
abate a public nuisance. [Basis: Article 700, in relation to
Article 699, Civil Code; Cruz v. Pandacan Hiker’s Club, Inc.,
778 SCRA 385 (2016].

D. False, because possession of movables is not

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 deemed lost so long as they remain under the control of the
possessor, even though for the time being he may not know
their whereabouts. [Basis: Article 556, Civil Code;]

E. False, because only continuous and apparent

easements can be acquired either by virtue of a title or by
prescription. [Basis: Article 620, Civil Code;]

2017 Plutarco owned land that borders on a river. After A. Plutarco acquires ownership over the increased PROPERTY
several years the action of the water of the river caused the area by virtue of accession. According to the Civil Code, the
deposit of soil, and increased the area of Plutarco’s property by accretion gradually receive from the effects of the current of
200 square meters. the waters shall belong to the owner of the lands adjoining the
banks of rivers. In order for the above rule to apply, however,
A. If Plutarco wants to own the increase in area,
the following requisites must be present: (1) that the deposit of
what will be his legal basis for doing so? Explain your
soil be gradual and imperceptible; (2) that it be made through
answer.
the effects of the current of the waters; and (3) that the land

B. On the other hand, if the river dries up, may where accretion takes place is adjacent to the banks of the
Plutarco validly claim a right of ownership of the dried-up rivers. All foregoing requirements are present in this case.
river bed? Explain your answer. Hence, Plutarco aquires ownership over the increased area by
operation of law. [Basis: Article 457, Civil Code; Republic v.
CA, 132 SCRA 514 (1984);]

B. No, because the dried-up river bed shall

continue to belong to the State as its property of public
dominion. As such, it is not susceptible to private

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 appropriation and acquisitive prescription. Therefore, Plutarco
may not validly claim a right of ownership of the dried-up
river bed. [Republic v. Santos III, 685 SCRA 51 (2012);
Celestial v. Cachopero, 431 SCRA 469 (2003); 657 SCRA 499
(2011);]

2017 Kevin signed a loan agreement with ABC Bank. To Yes, ABC Bank may proceed directly against Rosella GUARANTY;
secure payment, Kevin requested his girlfriend Rosella to upon Kevin’s default even without proceeding against Kevin SURETY
execute a document entitled “Continuing Guaranty first because Rosella is a surety after she bound herself
Agreement” whereby she expressly agreed to be solidarily solidarily with the principal debtor. Notwithstanding the use of
liable for the obligation of Kevin. Can ABC Bank proceed the word “guaranty” circumstances may be shown which
directly against Rosella upon Kevin’s default even without convert the contract into one of suretyship. Under the Civil
proceeding against Kevin first? Explain your answer. Code, when the guarantor binds himself solidarily with the
principal debtor, the contract becomes one of suretyship and
not of guaranty proper. In a contract of suretyship, the liability
of the surety is direct, primary and absolute. He is directly and
equally bound with the principal debtor. Such being the case, a
creditor can go directly against the surety although the
principal debtor is solvent and is able to pay or no prior
demand is made on the principal debtor. [Basis: Article 2047,
Civil Code; Ong v. PCIB, 448 SCRA 705;] In this case, since
Rosella is a surety, ABC Bank can go directly against her even
without proceeding against the principal debtor because the
surety insures the debt, regardless of whether or not the

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 principal debtor is financially capable to fulfil his obligation.

2017 Jovencio operated a school bus to ferry his two sons and A. Yes, because a common carrier is one who is COMMON
five of their schoolmates from their houses to their school, and engaged in the business of carrying or transporting passengers CARRIER
back. The parents of the five schoolmates paid for the service. One or goods or both, or one who holds himself or itself out to the
morning, Porfirio, the driver, took a short cut on the way to school public as being engaged in said business. In Perena v. Zarate
because he was running late, and drove across an unmanned [679 SCRA 208 (2012)], the Court definitively ruled that the
railway crossing. At the time, Porfirio was wearing earphones operators of a school bus service are common carriers even if
because he loved to hear loud music while driving. As he crossed they are catering to a limited clientele because of the following
the railway tracks, a speeding PNR train loudly blared its horn to reasons: (1) they are engaged in transporting passengers
warn Porfirio, but the latter did not hear the horn because of the generally as a business, not just as a casual occupation; (2)
loud music. The train inevitably rammed into the school bus. The they are undertaking to carry passengers over established roads
strong impact of the collision between the school bus and the train by the method by which the business was conducted; and (3)
resulted in the instant death of one of the classmates of Jovencio’s they are transporting students for a fee. The Court additionally
younger son. The parents of the fatality sued Jovencio for damages explained that despite catering to a limited clientèle, they
based on culpa contractual alleging that Jovencio was a common operate as common carriers because they held themselves out
carrier; Porfirio for being negligent; and the PNR for damages as a ready transportation indiscriminately to the students of a
based on culpa aquiliana. Jovencio denied being a common carrier. particular school living within or near where they operated the
He insisted that he had exercised the diligence of a good father of a service and for a fee.
family in supervising Porfirio, claiming that the latter had had no
B. Being a common carrier, Jovencio is required to
history of negligence or recklessness before the fatal accident.
observe extraordinary diligence, and is presumed to be at fault
A. Did his operation of the school bus service or to have acted negligently in case of the loss of the effects of
for a limited clientele render Jovencio a common carrier? passengers, or the death or injuries to passengers. In this case,

316
Explain your answer. Jovencio is liable for the death of the student because, acting
as a common carrier, he is already presumed to be negligent at
B. In accordance with your answer to the
the time of the accident because death had occurred to the
preceding question, state the degree of diligence to be
passenger. Here, Jovencio failed to fend off liability because
observed by Jovencio, and the consequences thereof.
he failed to prove that he observed extraordinary diligence in
Explain your answer.
ensuring the safety of the passengers. [Basis: Perena v. Zarate,

C. Assuming that the fatality was a minor of 679 SCRA 208 (2012);]
only 15 years of age who had no earning capacity at the
C. The basis for the computation of the deceased’s
time of his death because he was still a student in high
earning capacity should be the minimum wage in effect at the
school, and the trial court is minded to award indemnity,
time of his death, pursuant to the ruling of the Court in Perena
what may possibly be the legal and factual justifications for
v. Zarate [679 SCRA 208 (2012)]. In the same case, the Court
the award of loss of earning capacity? Explain your answer.
also ruled that the computation of the victim’s life expectancy
rate should not be reckoned from his age of 15 years at the
time of his death, but on 21 years, his age when he would have
graduated from college. In the same case, the Court justified
the indemnification of the victim’s loss of earning capacity
despite him having been unemployed because compensation of
this nature is awarded not for loss of time or earnings but for
loss of the deceased’s power or ability to earn money.

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