Obligations and Adverse possession

usucapcion
Liberatory prescription
Statute of limitations
(general)
Contracts
“usurper’-not the unlawful usurper. Acquires property or
First Exam Lecture TSN assert ownership thereto.
Articles 1106-1225
From the lectures of Atty. Bruneson Alabastro LACHES (estoppel by laches; doctrine of stale
demands)
Transcribed by:
Mary Nove Patangan Laches is defined as the failure or neglect for an
Robien Cerbo unreasonable and unexplained length of time to do that
Gabriella Medina which—by exercising due diligence—could or should have
been done earlier.
In cooperation with: • It is negligence or omission to assert a right within a
Nico Ong reasonable time, warranting a presumption that the party
Ian Clark Embalsado entitled to assert it has either abandoned it or declined to
assert it.
1. Articles 1106-1138
PRESCRIPTION 4 ELEMENTS OF LACHES: (C-D-L-IP)

Rationale 1. Conduct on the part of the defendant, or of one under

whom he claims, giving rise to the situation of which
The doctrine of prescription is of purely statutory origin. complaint is made, and for which the complaint seeks a
remedy;
It is founded on grounds of public policy which requires
for the peace of society, that juridical relations susceptible 2. Delay in asserting the complainant's rights, the
of doubt and which may give rise to disputes, be fixed and complainant having had knowledge or notice of the
established after the lapse of a determinate time so that defendant's conduct, and having been afforded an
ownership and other rights may be certain for those who opportunity to institute a suit;
have claim in them.
3. Lack of knowledge or notice on the part of the
-MATTERS MUST BE SETTLED by reason of public policy. defendant that the complainant would assert the right on
How? Through lapse of time. which he bases his suit; and

ART. 1106. By prescription, one acquires ownership and 4. Injury or prejudice to the defendant in the event relief
other real rights through the lapse of time in the manner is accorded to the complainant, or the suit is not held to
and under the conditions laid down by law. be barred.
In the same way, rights and conditions are lost by
prescription. Distinguish lapses from prescription
Acquisitive prescription Extinctive prescription Prescription Laches
It is based on the Based on a probability, Concerned with the fact Concerned with the
assertion by a usurper of born of experience that of delay effect of delay
an adverse right for such the alleged right which
a long time, uncontested accrued in the distant past A matter of time Laches is principally a
by the owner of the rights, never exists or has been question of inequity of
as to give rise to the extinguished or if it exist, permitting a claim to be
presumption that the the inconvenience caused enforced, this inequity
latter has given up such by the lapse of time being founded on the
right in favor of the should be borne by the same change in the
former. party negligent in the condition of the
assertion of his right. property or the relation
Prescription of ownership Prescription of of the parties
and other real rights (Civil actions/limitations of
Code) actions
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Statutory –based on Laches is not- mainly 2) Absentees who have administrators, either appointed
positive law (applies at based on equity; applies by them before their disappearance, or appointed by the
law) in equity courts;
3) Persons living abroad, who have managers or
Based on fixed time Laches is not based on administrators;
provided for by law fixed time or period 4) Juridical persons, except the State and its subdivisions.

ART. 1108 (2). Persons who are disqualified from

CONCLUSION administering their property have a right to claim
damages from their legal representatives whose
Laches and the action barred by laches is totally different negligence has been the cause of prescription.
and distinct from the concept of an action being barred
by extinctive prescription (that action has lapsed). -applies to both acquisitive and extinctive
prescription

Vs. 1107: this provisions talks about losing rights to

CAPACITY TO ACQUIRE BY PRESCRIPTION property or other rights by virtue of prescription
ART. 1107. Persons who are capable of acquiring Applicability:
property or rights by the other legal modes may acquire
the same by means of prescription. 1. Minors and other incapacitated persons who have
parents, guardians or other legal representatives
Minors and other incapacitated persons may acquire 2. Absentees who have administrators (appointed
property or rights by prescription, either personally or by them before their disappearance, or by the
through their parents, guardians or legal representatives. courts)
3. Persons living abroad, who have managers or
-Applies to acquisitive prescription
administrators
GR: Persons who are capable of acquiring property of 4. Juridical persons, except the state and its
rights by the other legal modes may acquire the same by subdivisions
means of prescription. EXPN:

Minimum requirements to acquire property The exception is qualified and contemplates extinctive
prescription. Acquisitive prescription runs against the
1. Juridical capacity- the fitness to be the subject State in its private capacity. State is considered as a
of legal relations, is inherent in every person and juridical person. When it holds private or patrimonial
is lost only through death. (Article 37); capacity property of the State, the subject land is alienable and
to act is not required disposable. Thus, can be subjected to acquisitive
2. No disqualifications provided by law (Article 1109) prescription.
Juridical capacity is the minimum requirement to acquire
property. Capacity to act is not required because even Example: Agricultural land –not held by the State in its
minors can acquire property. sovereign capacity

Minors and other incapacitated persons may Application:

acquire property either:
1. This phrase “except the state and its
1. On their own or personally subdivisions” contemplates extinctive acquisition
2. Through others or parents, guardians or legal and does not run against the State. The State is
guardians, or representatives (why? They have ordinarily not barred by extinctive application
authority over the person so the minors or when it file an action.
incapacitated person will acquire the property) 2. Acquisitive prescription does not to properties of
WHO ARE SUBJECTED TO PRESCRIPTION the State that is owned on its sovereign capacity.
Forest land, mineral land-reserve to State
ART. 1108 (1). Prescription, both acquisitive and
extinctive, runs against: Remedy in case of loss: file an action for damages
1) Minors and other incapacitated persons who have against legal representatives, administrators. Basis of the
parents, guardians or other legal representatives; damages, is the fact that these representatives are
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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charged with fiduciary responsibility to take care of the 1. During the marriage in case of husband and wife
property of the minors. If these minors lose their (because of the oneness of the property; co-
properties, logically, the administrators or legal owned)
representatives are liable and actions may be instituted 2. During minority or incapacity of children, in case
against them. of parents and children (because parents are held
in trust; fiduciary relationship only)
What if minors do not have parents or legal 3. During the subsistence of the guardianship, in
representatives, does it mean that acquisitive case of guardians and wards
prescription does not run against them? In short, these legal rep, guardians, and spouses cannot
No. claim these properties as these properties are owned by
the children, wards, or the conjugal relationship. They are
According to Paras, it is believed that Secs. 24, 45, and barred to acquire the properties notwithstanding the time
46 of Act No 190 (Code of CivPro) can apply to them, they have held the properties in trust.
since implied repeals are not looked upon with favour
-A guardian is a person lawfully invested with power and
Thus, prescription can still run against minors, the charged with the duty of taking care of the person and
insane and those in jail, personally except that these managing the property and rights of another person, who,
people may still bring the action within a number of years for defect of age, understanding, or elf-control, is
after their disability has been removed: considered incapable of administering his own affairs.
a. 3 years –in case of recovery of land ART. 1110. Prescription, acquisitive and extinctive, runs
b. 2 years- in other civil actions in favor of, or against a married woman
c.
CIVIL ACTION-meaning the rights to institute an action The reason behind this article is because in the Spanish
have been lost by virtue of extinctive prescription. Civil Code, personalities of wives, with respect to their
husbands, were very limited.
BRING THE ACTION-Right of action to damages
One example is that when the husband dies, his estate
will be inherited only by the children. The wife did not
ART. 1109. Prescription does not run between husband have any right of ownership under the said code, but only
and wife, even though there be a separation of property have the usufruct – they can only use and enjoy the fruits
agreed upon in the marriage settlements or by judicial of the properties left by the estate of the husband.
decree. Another instance is: married women alone cannot acquire
property by way of acquisitive prescription; they can only
Neither does prescription run between parents and do so if they acquire it through prescription—through her
children, during the minority or insanity of the latter, and husband. Thus, married women were very dependent on
between guardian and ward during the continuance of the their husbands under the Spanish Civil Code.
guardianship.
Now, the married woman now have a separate personality
Applies to acquisitive prescription so she can acquire property in her person or lose her right
despite being a married woman.
Reasons:

1. By reason of influence or affection may often

prevent one from bring an action against the ART. 1111. Prescription obtained by a co-proprietor or a
other (Tolentino) co-owner shall benefit the others.
2. By reason of the trust and confidence of the
Applies to both acquisitive and extinctive prescription but
parties (Pineda)
more applicable to acquisitive prescription and co-
3. Based on the ones between the said parties, and
ownership.
is justified by considerations of morality and
decency which do not countenance prescription Co-proprietors are partners in a business or in a
to take place between them (De Leon) partnership.
Applicability Co-ownership – when two or more persons come into
common ownership over an undivided thing.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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Article 484. There is co-ownership whenever the FORMS of RENUNCIATION:

ownership of an undivided thing or right belongs to 1. Express - when it is manifest, or clear from the
different persons. intention, or the acts of the parties that they
intended an abandonment of the benefits of
In default of contracts, or of special provisions, co- prescription.
ownership shall be governed by the provisions of this Title 2. Implied/Tacit- when it is not manifest or it is
(generally in property). unclear. Results from acts which imply the
abandonment of the right acquired
Prescription obtained by co-proprietors in a partnership or
co-owners in a co-ownership is allowed for the benefit of
others. REQUISITES FOR RENUNCIATION OF
Such Article only applies to in cases that it pertains to PRESCRIPTION
properties owned in common by the co-proprietors or co-
owners. Acquisitive prescription will not benefit other co- A. Intention and capacity to alienate the right or
proprietors or co-owners, if the property pertains only to benefit of prescription (capacity to act is
the capacity of that of the person personally. needed c.f. Art 37 in renunciation or waiver of
prescription, unlike in acquisitive prescription
Example: where it is not needed)

There is a parcel of land, beside a river, owned by A, B, B. The right or benefit of prescription acquired must
and C in equal shares. Common ownership is observed have already been obtained, not a mere
over an undivided property. In the concept of Alluvium, expectancy of contingency (right to prescribe in
or the gradual and imperceptible deposit of sediment by the future cannot be waived)
natural action of a current of fresh water (not sea water), -must be a known and existing right in order to renounce
the original identity of the deposit is lost. Where it is by it
sea water, it belongs to the State, and certain land will
accumulate. And by such, a new portion of land exists and C. The renunciation must be made by the owner or
is owned by no one. And, upon such, B occupies the new possessors of the right
parcel of land. -unless under certain circumstance such as parents and
legal representatives
If B acquires it by way of acquisitive prescription, pursuant
to Article 1111, the new parcel of land will also benefit A D. The renunciation must not prejudice the rights of
and C. In short, the fact that even if B alone occupies the others, such as creditors (art 6, 1114, New Civil
new parcel of land, these ennures to the benefit of A, C, Code.
D being co-owners.
ART. 1114. Creditors and all other persons interested in
However, if through Alluvium, a new parcel of land arises making the prescription effective may avail themselves
adjoining the land of B alone. Then, such new parcel of thereof notwithstanding the express or tacit renunciation
land, if acquired through prescription, will only for the by the debtor or proprietor
benefit of B.
SITUATION (ARTICLE 114):
RENUNCIATION OF PRESCRIPTION 1. Debtor has waived the benefit of prescription
(either acquisitive or extinctive) obtained by him
ART. 1112. Persons with capacity to alienate property or her
may renounce prescription already obtained, but not the 2. The waiver is made expressly or tacitly by the
right to prescribe in the future. debtor
Prescription is deemed to have been tacitly renounced 3. Creditors or other persons are interested in
when the renunciation results from acts which imply the making the prescription effective, despite the
abandonment of the right acquired. waiver of the debtor, otherwise, they would be
prejudiced
Article 1112 partakes the form a renunciation or a waiver.
In the case of Guy vs. CA, in relation to Article 6 of the RULE: Creditors and all other persons interested in
CC, a waiver pertains to the intentional relinquishment of making the prescription effective may avail themselves of
a known or existing right. This renunciation is personal on remedies to effect the prescription.
the part of the person who owns that right. Hence, it
cannot be waived by some other persons. ILLUSTRATIVE SITUATIONS
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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CREDITORS INTERESTED IN MAKING THE Marriages. If you want to institute an action for marriage
PRESCRIPTION EFFECTIVE as void, it is imprescriptible, except for those marriages
under Articles 36 of Family Code; Art. 39; Annulment for
D borrowed money from C in the amount of P 1 million. marriages under art. 47; legal separation under article 57,
D acquired a parcel of land by way of acquisitive etc.
prescription, but subsequently waived such benefit in D’s Action for claims of legitimacy; Action to claim legitimate
favor. When C demanded payment from D, the former filiation; Action to impugn legitimacy on the part of the
learned that the latter is insolvent and cannot pay C, but husband, and extraordinary cases on the part of the heirs.
C also learned of D’s right to the parcel of land and the So, if these issues are provided for in a special law, take
waiver is made. note of its prescriptive periods. The provision of the
general law or NCC will not become applicable. The Civil
C may effect the prescription by demanding from D the Code will only be suppletory only in the absence of the
rights to the parcel of land acquired by virtue of special law, such as the Family Code for those issues
acquisitive prescription to acquire the land to pay off D’s mentioned for marriages.
1 million indebtedness.

Debtor- obligor (obliged to do something; obligation to SPECIFIC CASES OF PRESCRIPTION

pay)
Acquisitive prescription
Creditor- extends a credit
• PD No 1529-Land Registration Decree- there is a
OTHER PERSONS INTERESTED IN MAKING THE period of possession required depending on the
PRESCRIPTION EFFECTIVE mode of registration sought
• CA 141- Public Land Act
D borrowed money from C in the amount of P 1 million,
Extinctive prescription
with S (as a surety) to secure the payment in case D fails
to pay. Despite the lapse of 15 years, C did not collect Family Code provisions
upon the debt such that the right to collect had prescribed
by the lapse of time. When C demanded payment from D, 1. Article 47 on actions for annulment of marriage
D tacitly waived the benefit of prescription but did not 2. Article 57 on actions for legal separation
have the money to pay off C. C now collects P 1 million 3. Article 170 on actions to impugn legitimacy of
from S (solidarily liable as a surety). children by the father
4. Article 171 on actions to impugn legitimacy of
How can S make the prescription effective? children by father’s heirs
5. Article 173 on actions to claim legitimate filiation
S may effect the prescription by interposing the defense 6. Article 175 on actions to claim illegitimate filiation
of extinctive prescription, such that C could not collect the
ART. 1116. Prescription already running before the
debt due from D because the right to collect of C had
effectivity of this Code shall be governed by laws
already prescribed due to extinctive prescription.
previously in force; but if since the time this Code took
effect the entire period herein required for prescription
should elapse, the present Code shall be applicable, even
ART. 1115. The provisions of the present Title are though by the former laws a longer period might be
understood to be without prejudice to what in this Code required.
or in special laws is established with respect to specific
cases of prescription.
Art. 1116 talks about Rules on Transitory
NOTE: Special laws are preferred than general laws. Prescriptions:

When we talk about the provision under the New Civil Rule 1: If the period for prescription BEGAN and ENDED
Code, take note that the period of prescription in this case under the Spanish Civil Code or old law, then the old law
is not exclusive. It is not prejudice, which is provided in shall govern.
other laws. So, if it is specifically provided for in a law,
that law—with respect to that issue—will govern. Rule 2: If the period for prescription began under the New
Civil Code such that it will also end during the NCC, then
Example: the NCC provisions will govern.
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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war, was able to return to the land only in 1958, and

Rule 3. If the period began under the OLD law and learning of A’s possession, files suit.
continues under the NEW Civil Code, the OLD law applies
A claims prescription of 10 years because he took
Exception to the third rule. possession of the land before the effective of NCC but C
counters that as A entered the land in bad faith, and he
In this third rule, it is the NEW Civil code that will apply, had not acquired ownership by the time NCC took effect,
provided two conditions are present: the period is 30 years under the NCC.

1. The new Civil Code requires a shorter period- Decide stating your reasons.
allowed because more favorable
2. This shorter period has already elapsed since
August 30, 1950, the date when the New Civil ANSWER:
Code became effective.
A is correct. The period of prescription here is 10 years in
EXPLANATIONS FOR THE RULES: accordance with the old law, which is Sec 14, Act 190 of
the Code of Civil Procedure, and not according to the 30-
The Civil Code took effect on August 30, 1950, the rules year period under the New Civil Code.
are:
According to Article 115 of the New Civil Code,
1. If lapsed before effectivity, the old rule applies. ‘’prescription already running before the effectivity of this
code shall be governed by laws previously in force; but if
2. If running from old law until the effectivity of the new since the time this code took effect the entire period
law, but the NCC provides a different period for the same herein required for prescription should elapse, the present
situation, the NCC shall prevail; provided that, such period Code shall be applicable, even though by the former laws
counted from the effectivity of the NCC has already lapsed a longer period might be required.”
even though it may not have lapsed yet under the old law.
Here, A acquired the property in accordance with the 10
3. If the prescriptive period under the old law is still year period pursuant to Sec 41, Act 190, Code of Civil
running under effectivity of the NCC, and if the remaining Procedure because the said law offers a period shorter
balance of such period is shorter than provided under the than that required by the New Civil Code, and such period
NCC, the old prescriptive period shall apply. had already elapsed to A’s benefit.

Therefore, A acquired the property by 1955 to the

Example: exclusion of C.
GENERAL RULE: If prescriptive period of a contract CHAPTER II
under the Spanish Civil Code is 5 years but in the NCC it
is already 10 years; which prescriptive period will apply? PRESCRIPTION OF OWNERSHIP AND OTHER
It is the Spanish Civil Code that shall apply, if it began REAL RIGHTS
under the old law and ended under the new law.
EXCEPTION: If the period of the new law or NCC ART. 1117. Acquisitive prescription of dominion and
provides for a shorter period, then the new law shall other real rights may be ordinary or extraordinary.
govern.
Why? Because laws shall not have retroactive effect Ordinary acquisitive prescription requires possession of
except as it may be beneficial to the one who has that things in good faith and with just title for the time fixed
right. by law.

ILLUSTRATION CONCEPTS

A, with full knowledge that B is not the owner of a parcel Ownership or dominion
of land, bought it for a nominal sum from B in 1945 and -independent right of a person to the exclusive enjoyment
since then has been in open, actual continuous and public and control of a thing including its disposition and
possession thereof, under the claim of title exclusive of recovery subject only to the restrictions or limitations
any other and adverse to all other claimants. C, the real established by law and the rights of others (Article 427
owner of the land who had left it in 1944 by reason of the TO 429, NCC)
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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Real right Art. 525. Two Concepts of Possession – The

possession of things or rights may be had in one of the
- the right or interest belonging to a person over a specific two concepts: either in the concept of owner, or in that
thing without a definite passive subject against whom of the holder of the thing or right to keep or enjoy it, the
such right may be personally enforced. ownership pertaining to another person.
-under our law, among the real rights are usufruct (article
Concept of an Owner (en concepto de dueno)-
502), easement or servitude (article 613), hereditary right possessor is the owner itself or one who claims to be such
(art 774), conventional or legal redemption (art 1601, an owner. The person must do outward acts which
1619), lease record (art 1676), pledge (art 2085), real show the public at large that he possesses a thing as an
mortgage (art 2124), antichresis (art 2132), and chattel owner or claims to be its owner.
mortgage (art 2140).
Concept of a Holder- recognizes that other person is
2 TYPES OF ACQUISITIVE PRESCRIPTION: exercising ownership over the thing.
1. Ordinary Acquisitive Prescription -acknowledges in another superior right which he believes
2. Extraordinary Acquisitive Prescription to be ownership, whether his belief be right or wrong (i.e,
lessor and lessee)
1. Ordinary Acquisitive Prescription – It requires
uninterrupted possession for the required statutory period Ex. Boarding house – the person is merely holding the
of 10 years in good faith with a just title. said house in the concept of a holder by renting the place
and paying dues to the owner. By doing so, you
REQUISITES:
acknowledge that somebody else is the owner of the
ORDINARY ACQUISITIVE PRESCRIPTION: house.
1. Possession
2. of things or rights or property in general
3. in good faith Article 54. Only the possession acquired and enjoyed in
4. with Just title the concept of owner can serves as a title for acquiring
5. for the time fixed by law dominion (447).

ACQUISITIVE PRESCRIPTION
Extraordinary Acquisitive Prescription – Likewise requires
an uninterrupted possession for the statutory period of 30 Character of Possession with respect to acquisitive
years but without the need of just title and good faith on prescription
the part of the possessor.
ART. 1118. Possession has to be in the concept of an
owner, public, peaceful and uninterrupted.
REQUISITES:
Possession must be: (OCEAN) Open, Continuous,
Exclusive, Adverse, Notorious
Extraordinary Acquisitive Prescription
1. Possession -common element to ordinary and extraordinary
2. of things or rights or property in general prescription
3. for the time fixed by law
Characteristics of the requisites of possession as
POSSESSION
held in CANLAS v. REPUBLIC
What is Possession? “Possession is open when it is patent, visible, apparent,
Defined in Art. 523. Possession refers to the holding of a notorious and not clandestine.
thing or enjoyment of a right.
So even if it is an intangible property or improprio It is continuous when uninterrupted, unbroken and not
property—one which not physically or actually exist but intermittent or occasional;
only exists in contemplation of law—you can still possess
Exclusive when the adverse possessor can show
it if you enjoy that right.
exclusive dominion over the land and an appropriation of
it to his own use and benefit

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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Notorious when it is so conspicuous that is generally This is clearly shown by the Tax Declaration in the name
known and talked by the public or the people in of Jaime for the year 1984 wherein it contains a statement
neighborhood “ admitting that Jaime's house was built on the land of
Vicente, respondents' immediate predecessor-in-interest.
Peaceful possession- article 536. In no case may
possession be acquired through force or intimidation as Petitioners never disputed such an acknowledgment.
long as there is a possessor who objects thereto.

-possession In this respect, the Court agrees with the CA that Abalos'
possession of the lot in question was by mere
ART. 1119. Possession through License or tolerance of the Heirs of Torio and their predecessors-
Tolerance in-interest. Acts of possessory character executed due to
Acts of possessory character executed in virtue of license license or by mere tolerance of the owner are inadequate
or by mere tolerance of the owner shall not be available for purposes of acquisitive prescription.
for the purposes of possession.
Possession, to constitute the foundation of a prescriptive
Concept of a Holder - it will not ripen to ownership by right, must be en concepto de dueño, or, to use the
way of acquisitive prescription common law equivalent of the term, that possession
Possession through license or tolerance of the owner should be adverse, if not, such possessory acts, no
matter how long, do not start the running of the
• License - positive act of the owner in favor of the holder period of prescription.
of the thing. (juridical title)
PABALAN VS HEIRS OF MAAMO (read article 1119)
Example: a possession with a juridical title such as by
usufractuary, a trustee, a lessee, agent or a pledgee, not WHEN IS POSSESSION INTERRUPTED?
being in the concept of an owner, cannot ripen into
ownership by acquisitive prescription unless ART. 1120. Possession is interrupted for the purposes of
a. The juridical relation is first expressly repudiated prescription, naturally or civilly.
b. Such repudiation has been committed to the
Types of interruption of possession:
other party
For causes beyond the control of the possessor
• Possession by mere tolerance - passive
acquiescence on the part of the owner to the acts being a. Natural interruption-article 1120 to 1122
performed by another which appear to be contrary as that b. Civil interruption – article 1123 and 1124
of the owner, but such person recognizes ownership as For causes attributable to the possessor
that of the latter.
a. Express recognition-article 1125
Example: illegal settlers (they possessed the land in the b. Tacit recognition-article 1125
concept of a mere holder) Natural Interruption - possession is interrupted by any
cause. Any cause which would bring about discontinuity
These acts are not available for acquisitive prescription no or interruption of one’s holding of a thing or enjoyment of
matter how long a right.
Effect of Interruption: it will cease the running of the
ABALOS VS. TORIO period of possession for purposes of prescription. It will
cease by the time of the occurrence of the natural
interruption.
Constructive possession –tax declaration

In the instant case, it is clear that during their

possession of the property in question, Abalos NATURAL INTERRUPTION
acknowledged ownership thereof by the
immediate predecessor-in-interest of Heirs of ART. 1121. Possession is naturally interrupted when
Torio. through any cause it should cease for more than one year.

In what way?
The old possession is not revived if a new possession
should be exercised by the same adverse claimant

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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EFFECT: The old possession is not revived if a new In the case of Tacas V. Tobon, this Court citing Manresa
possession should be exercised by the same adverse (vol 4, pp270, 271), stated:
claimant. It cuts off the running of prescription for
acquisitive prescription “But to every possessor in good faith, there comes a time
when he is considered a possessor in bad faith.

When the owner or possessor with a better right comes

ART. 1122. If the natural interruption is for only one along, when he becomes aware that what he had taken
year or less, the time elapsed shall be counted in favor for granted is at least doubtful, and when he learns the
the prescription. Possession is interrupted for the grounds in support of the adverse contention, good faith
purposes of prescription, naturally or civilly. ceases.
Time elapsed should be counted in favour of acquisitive
The possessor may still believe that his right is more
prescription secure, because we resign ourselves with difficulty to the
CIVIL INTERRUPTION sight of our vanishing hopes; but when the final judgment
of the court deprives him of the possession, all illusion
ART. 1123. Civil interruption is produced by judicial necessarily disappears.
summons to the possessor.
Although he may not have been convinced of it before,
By the filing of a complaint, generally, a person is given the possessor becomes aware that his possession is
15 days (except otherwise provided by law) to give an unlawful from the time he learns of the complaint, from
Answer. the time he is summoned to the trial.
Judicial Summons - a document issued by the Court
informing the defendant that there is a complaint filed It is at this time that his possession is interrupted, and
against him. that he ceases to receive the fruits. The ruling of the court
retroacts to that time; but shall in good faith be deemed
to cease then.”

• Any cause other than judicial summons is considered

natural interruption. ILLUSTRATIVE CASE

WHEN JUDICIAL SUMMONS WILL NOT HAVE AN QUIMPO vs ONAYAN (2018)

EFFECT OF CIVIL INTERRUPTION
It is true that judicial summons to the possessor interrupts
ART. 1124. Judicial summons shall be deemed not to possession for the purposes of prescription. However,
have been issued and shall not give rise to interruption: Article 1124 gives the instances when despite the
issuance of judicial summons, the period of interruption is
(1) If it should be void for lack of legal solemnities; not tolled, to wit:
(2) If the plaintiff should desist from the complaint or (1) If it should be void for lack of legal solemnities;
should allow the proceedings to lapse;
(2) If the plaintiff should desist from the complaint or
(3) If the possessor should be absolved from the should allow the proceedings to lapse;
complaint.
(3) If the possessor should be absolved from the
In all these cases, the period of the interruption shall be complaint.
counted IN FAVOR for the prescription.
In all these cases, the period of the interruption shall be
As if the period of acquisitive prescription continues in counted IN FAVOR for the prescription.
favor of the possessor.

RATIONALE In his Civil Code commentaries, Sen.Arturo Tolentino

remarked that the use of the phrase “period of
RODRIGUEZ Sr. v Francisco (1962) interruption” in the last paragraph of the foregoing
provision is misleading as there is really no interruption.
In these instances, possession is deemed continuous.
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 9 of 96

RULING IN QUIMPO v ONAYAN or owned (res alicujus) and those that are susceptible of
appropriation.
RECOGNITION
On the other hand, property (bienes) refers to anything
ART. 1125. Any express or tacit recognition which the which is already the object of appropriation or is found in
possessor may make of the owner's right also interrupts the possession of man
possession.
A. Things that are susceptible of
According to Paras and Sta Maria, the possession is appropriation
interrupted because it is no longer in concepto de dueno
or adverse. If a thing may be appropriated legally speaking, we call
that thing as PROPERTY. All properties are things but not
INTERRUPTION v. SUSPENSION
all things are properties. Because not all things can be
INTERRUPTION SUSPENSION appropriated.
If prescription is If prescription is merely What is an example? This is the time that we will discuss,
interrupted, the old suspended (as Art. 1113.
possession will generally distinguished from
not be counted; the interruption), the old Art. 1113. All things which are within the commerce of
period must begin all over possession will be men are susceptible of prescription, unless otherwise
again counted in favour of provided. Property of the State or any of its subdivisions
prescription. not patrimonial in character shall not be the object of
Instances: Instances: prescription.
1. Natural 1. Natural
interruption interruption for Art. 1113 is very specific. What are the things or rights
2. Civil interruption one year or less that you can acquire by way of your adverse possession
3. Express or tacit than one year through prescription?
recognition 2. Instances under
article 1124
(judicial Things or property that may be possessed by
summons are purposes of prescription are those which are:
void and other 1. Susceptible of appropriation: it can be
reasons) appropriated, it can be owned by someone.
3. Article 1136.
Possession in war 2. It must be within the commerce of men.
time, when the
civil courts are 3. If it is a property pertaining to the State or any of
not open, shall its subdivisions, it must be patrimonial in
not be counted in character. Those properties that are patrimonial
favour of the can be possessed by prescription, and not those
adverse occupied by the State in its sovereign capacity.
claimant/
TYPES OF PROPERTY FROM THE VIEWPOINT OF
THINGS OR RIGHTS
MOBILITY (ART 414 NCC):
Under Art. 1117, the law defines acquisitive prescription
as requiring possession of things, so that’s the second According to their mobility (capability of a property to
element. be moved or to be placed from one location to another)
Definition of things
a. movables: properties which are by their nature
Art. 530. Only things and rights which are susceptible of they can be moved or they can be placed from one
being appropriated may be the object of possession. location to another
b. immovables: opposite
CONCEPT OF THING v PROPERTY

A thing (cosa) is generally understood to be any object Take note of this provision: exception of the rule in Art.
1133
that exists and is capable of satisfying some human
needs. It includes both objects that are already possessed

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TYPES OF PROPERTY FROM THE VIEWPOINT OF EXCEPTION: Except in virtue of another title that you
MATERIAL EXISTENCE yourself recorded as against that parcel of land, then the
running of the period for prescription can begin.
a. Corporeal or tangible property- those which are
physically, materially and actually exist and Rationale of ART 1126
perceived
b. Incorporeal or intangible property – those which The main purpose of the Torrens system is to
exist by legal fiction, or those which are 1. avoid possible conflicts of the title to real estate
evidenced by some document or legal papers and
(intellectual property rights such as patent) 2. to facilitate transactions relative thereto by giving
the public the right to rely upon the face of
Torrens certificate of title and
3. to dispense with the need of inquiring further,
WHAT ARE THOSE THINGS THAT ARE NOT
ALLOWED TO BE POSSESSED? except when the party concerned has actual knowledge
of facts and circumstances that should impel a reasonably
1. Those things which are specifically prohibited
cautious man to make such further inquiry (REPUBLIC V.
or excluded by law.
LIMBONHAI AND SONS, 2016)
2. Those things which we call as res nullius or
those which are owned by no one
The Torrens system was intended to guarantee the
integrity and conclusiveness of the certificate of
3. Those things which we call as res communis or
registration, but the system cannot be used for the
those which belonged to everyone perpetration of fraud against the real owner of the
Meaning, no matter the period of time you possessed
registered land.
them, you cannot actually possess them by way of
acquisitive prescription? The system merely confirms ownership and does not
create it.
There are certain things or rights that, even if they may
seem appropriable or they are within the commerce of
It cannot be used to divest lawful owners of their title for
men, those things are prohibited from being possessed
the purpose of transferring it to another who has not
for purposes of prescription. No matter how long you
acquired it by any of the modes allowed or recognized by
possess them, you cannot acquire them by way of
law.
prescription.
Thus, the Torrens system cannot be used to protect a
1. Those things which are specifically prohibited or usurper from the true owner or to shield the commission
excluded by law. of fraud or to enrich oneself at the expense of another.
(Serrano Mahilum v. Spouses Ilano, 2015)
a. ART. 1126. Against a title recorded in the Registry
of Property, ordinary prescription of ownership or b. Art. 1133. Movables possessed through a crime
real rights shall not take place to the prejudice of can never be acquired through prescription by the
a third person, except in virtue of another title offender.
also recorded. The time shall begin to run from
the recording of the latter. Examples:
A. Products of a crime
As to lands registered under the Land Registration Act,
the provisions of that special law shall govern. Exception to products of crimes:
EXPLANATION:
In cases of registered lands (meaning, they have a title If the possessor of a movable lost or which the owner has
recorded in the Torrens System) for purposes of been unlawfully deprived, has acquired it in good faith at
prescription, the type of land that can be acquired by way a public sale, the owner cannot obtain its return without
of acquisitive prescription are those parcels of land which reimbursing the price paid therefor.
are unregistered. No matter how long you possess a We know that if things or movables are stolen, they are
registered land, you cannot acquire it by way of products of a crime. No matter how long the offender
acquisitive prescription. possesses them, they cannot acquire that by way of
prescription. Is there a way that these products of crime
or stolen goods can be acquired lawfully?
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 11 of 96

Article 1135. In case the adverse claimant possesses by

The answer is YES. We have Art 559. If a 3rd party mistake an area greater, or less, than that expressed in
acquires it in good faith at a public sale, the owner can his title, prescription shall be based on the possession.
acquire a valid title thereto, possess it, and enjoy the
benefits of acquisitive prescription. Title in legal sense not the transfer cert of title.

But there is a condition: that owner cannot obtain it GOOD FAITH

without reimbursing the one who lost it, or the one who The third is possession of things or rights in good
is the victim of the stolen good. faith. Take note that this element is only necessary to
ordinary acquisitive prescription.

Article 559. The possession of movable property Because, in extraordinary acquisitive prescription, one can
acquired in good faith is equivalent to a title. acquire ownership over a thing even if that person is not
Nevertheless, one who has lost any movable or has been in good faith or is in bad faith.
unlawfully deprived thereof, may recover it from the
person in possession of the same. ART. 1127. The good faith of the possessor consists in
the reasonable belief that the person from whom he
2. Those things which we call as res nullius or received the thing was the owner thereof, and could
those which are owned by no one transmit his ownership.

These are things that belong to no one, because they ART. 1128. The conditions of good faith required for
cannot be appropriated or at least they have not been possession in articles 526, 527, 528, and 529 of this Code
appropriated yet. Thus, they cannot be acquired by way are likewise necessary for the determination of good faith
of acquisitive prescription. in the prescription of ownership and other real rights.
Note: This requisite is not present in extraordinary
Examples: acquisitive prescription
Moon, sun, stars, and wild animals: these are things but
they are not property because they cannot be What is this concept of good faith and bad faith? How do
appropriated we define good faith?

3.Those things which we call as res communis or Take note, good faith of the possessor is defined, or
those which belonged to everyone consists of his reasonable belief that the person from
whom he received the thing was the owner thereof, and
Examples: could transmit his ownership.

Public utilities, public goods, public roads, bridges, parks

These are properties of the State in their public domain, CONCEPT OF GOOD FAITH
meaning, these are properties that are set aside by the
State for public use, or for certain public service or Positive View- good faith consists in:
national development. Although they are owned, they are 1. Reasonable belief that the person from whom he
owned by everyone because they are owned by the State. received the thing was the owner thereof
No matter how long you possess them, you cannot 2. The owner could transmit his ownership
acquire them by way of acquisitive prescription.
Negative view
The state has different types of property: (1) those - The possessor is not aware that there exists in his
properties which can be set aside for public domain and title or mode of acquisition any flaw which
(2) those which are private in character. invalidates it. He is deemed a possessor in bad
faith who possesses in any case contrary to the
Take note, those properties which are private in character foregoing (526)
or patrimonial property are the only type of properties Legal presumptions
which can be acquired by way of prescription. But there 1. Always presumed, and upon him who alleges bad
are certain conditions before a property can be considered faith on the part of a possessor rests the burden
patrimonial property. of proof (527)
2. Does not lose this character except in the case
MISTAKE IN POSSESSION OF PROPERTY and from the moment facts exist which that the

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 12 of 96

possessor is not unaware that he possesses the Mistake upon a doubtful or difficult question of law may
thing improperly or wrongfully (528) be the basis of good faith.
3. Presumed that possession continues to be
enjoyed in the same character in which it was PRESUMPTIONS
acquired, until the contrary is proved (529)
Article 527. Good faith is always presumed, and upon
Good faith is an intangible and abstract quality with no him who alleges bad faith on the part of a possessor rests
technical meaning or statutory definition, and it the burden of proof.
encompasses, among other things, an honest belief, the
absence of malice and the absence of design to defraud Article 528. Possession acquired in good faith does not
or to seek an unconscionable advantage. An individual's lose this character except in the case and from the
personal good faith is a concept of his own mind and, moment facts exist which show that the possessor is not
therefore, may not conclusively be determined by his unaware that he possesses the thing improperly or
protestations alone. It implies honesty of intention, and wrongfully.
freedom from knowledge of circumstances which ought
to put the holder upon inquiry. The essence of good faith Article 529. It is presumed that possession continues to
lies in an honest belief in the validity of one's right, be enjoyed in the same character in which it was
ignorance of a superior claim, and absence of intention to acquired, until the contrary is proved.
overreach another. Applied to possession, one is
considered in good faith if he is not aware that there exists
in his title or mode of acquisition any flaw which JUST TITLE
invalidates it. (Heirs of Cabal v. Spouses Cabal, 2006)
ART. 1129. For the purposes of prescription, there is just
title when the adverse claimant came into possession of
GOOD FAITH CONCEPT OF AN the property through one of the modes recognized by law
OWNER for the acquisition of ownership or other real rights, but
En Buena fe. Reasonable En concepto de dueno, the grantor was not the owner or could not transmit any
belief of the possessor, concept is independent of right.
belief of the possessor or the belief or intention of
intention of the possessor the possessor himself. ART. 1130. The title for prescription must be true and
Concept is opinion- not of valid.
the possessor but that of
others ART. 1131. For the purposes of prescription, just title
Pertains to the inward Pertains to outward claim must be proved; it is never presumed.
belief or intent of the of the possessor as to
possessor himself, ownership of the property Note: this requisite is not present in extraordinary
regardless of the and does not acquisitive prescription
opinion/knowledge of acknowledge in another a
other persons superior right or Just title defined:
ownership
Basis: intention of Basis: acts of possessor; Just title is a lawful claim or that which is legally
possessor belief of third persons sufficient to transfer ownership of the thing or the
Required for ordinary Required for both real right to which it relate; “titulo Colorado or
acquisitive prescription ordinary and colorable title” meaning such title where although there
only extraordinary acquisitive was a mode of transferring ownership, still there is
prescription something wrong because the grantor is not the owner;
Generally presumed Always subject to proof thus, element of hostility towards the true owner, or a
under the law claim of title

References to other provisions in NCC: Under Article 1129, there is just title for the purposes of
prescription “when the adverse claimant came into
Article 526. He is deemed a possessor in good faith who possession of the property through one of the modes
is not aware that there exists in his title or mode of recognized by law for the acquisition of ownership or
acquisition any flaw which invalidates it. other real rights, but the grantor was not the owner or
He is deemed a possessor in bad faith who possesses in could not transmit any right. Dr Tolentino explains:
any case contrary to the foregoing.
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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“Just title is an act which has for its purpose the ART. 1132. The ownership of movables prescribes
transmission of ownership, and which would have actually through uninterrupted possession for four years in good
transferred ownership if the grantor had been the owner. faith.
This vice or defect is the one cured by prescription. The ownership of personal property also prescribes
Examples: sale with delivery, exchange, donation, through uninterrupted possession for eight years, without
succession, and dation in payment (Heirs of Malabanan v need of any other condition.
Republic, 2009).
With regard to the right of the owner to recover personal
property lost or of which he has been illegally deprived,
as well as with respect to movables acquired in a public
MODE OF ACQUIRING OWNERSHIP sale, fair, or market, or from a merchant's store the
provisions of articles 559 and 1505 of this Code shall be
Article 712. Ownership if acquired by occupation and by observed.
intellectual creation.
IMMOVABLES
Ownership and other real rights over property are
acquired and transmitted by law, by donation, by testate ART. 1134. Ownership and other real rights over
and intestate succession, and in consequence of certain immovable property are acquired by ordinary prescription
contracts, by tradition. through possession of ten years.

They may also be acquired by means of prescription. ART. 1137. Ownership and other real rights over
immovables also prescribe through uninterrupted adverse
DEGREES OF POSSESSION possession thereof for thirty years, without need of title
or of good faith.
1. Possession without any title whatever- This
is mere holding or possession without any right Ordinary Extraordinary
or title at all, such as that of a thief or squatter. acquisitive acquisitive
Here, both the possessor and the public know prescription prescription
that the possession is wrongful. Movables 4 years 8 years
Immovables 10 years 30 years
2. Possession with a juridical title –The
possession is predicated on a juridical relation
existing between the possessor and the owner (or RULE ON LOST OR STOLEN GOODS
one acting in his behalf) of the thing but not in
the concept of owner such as that of a lessee, Article 559. The possession of movable property
usufructuary, depositary, agent, pledgee, and acquired in good faith is equivalent to a title.
trustee Nevertheless, one who has lost any movable or has been
unlawfully deprived thereof, may recover it from the
person in possession of the same.
3. Possession with a just title. –The possession
of an adverse claimant whose title is sufficient to If the possessor of a movable lost or which the owner has
transfer ownership but is defective such as when been unlawfully deprived, has acquired it in good faith at
the seller is not the true owner or could not a public sale, the owner cannot obtain its return without
transmit his rights thereto to the possessor reimbursing the price paid therefor. (464a)
who acted in good faith; and

4. Possession with a title in fee simple- ARTICLE 1505. Subject to the provisions of this Title,
possession derived from the right of dominion or where goods are sold by a person who is not the owner
possession of an owner. This is possession that thereof, and who does not sell them under authority or
springs from ownership. This is the highest with the consent of the owner, the buyer acquires no
degree of possession. better title to the goods than the seller had, unless the
owner of the goods is by his conduct precluded from
5TH ELEMENT denying the seller's authority to sell.
TIME FIXED BY LAW
Nothing in this Title, however, shall affect:

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 14 of 96

(1) The provisions of any factors' act, recording laws, or Because:

any other provision of law enabling the apparent owner
of goods to dispose of them as if he were the true owner 1. There being just title and good faith, 10 years
thereof; would be good enough to give ownership to S by
prescription
(2) The validity of any contract of sale under statutory 2. S as the present possessor may complete the
power of sale or under the order of a court of competent period necessary for prescription by tacking his
jurisdiction; possession to that of F
(HIS GRANTOR OR PII)
(3) Purchases made in a merchant's store, or in fairs, or
markets, in accordance with the Code of Commerce and What if both S and F are in bad faith, can S still acquire
special laws. (n) the property through prescription?

Article 1138. In the computation of time necessary for Yes, but the period required is 30 years.
prescription the following rules shall be observed:

Article 534. On who succeeds by hereditary title shall

(1) The present possessor may complete the period
not suffer the consequences of the wrongful possession
necessary for prescription by tacking his possession to
of the decedent, if it is not shown that he was aware of
that of his grantor or predecessor in interest;
the flaws affecting it; but the effects of possession in good
faith shall not benefit him except from the date of death
(2) It is presumed that the present possessor who was of the decedent. (442)
also the possessor at a previous time, has continued to
be in possession during the intervening time, unless there ILLUSTRATION
is proof to the contrary;
F possessed the land of X in bad faith for 3 years. The
(3) The first day shall be excluded and the last day land was inherited by S from F. S was in good faith. For
included. (1960a) how many years from F’s death should S possess the land
to become its owner?
CORRELATED PROVISIONS

Article 533. The possession of hereditary property is COMPUTATION

deemed transmitted to the heir without interruption and
from the moment of the death of the decedent, in case Let x be the equivalent possession of S in GF tacked from
the inheritance is accepted. F’s possession in BF

One who validly renounces an inheritance is deemed OAP is 10 years : EAP is 30 years
never to have possessed the same. (440) Find X: F’s BF possession 3 years

Formula: X= (3 years x 10 years)/ 30 years

Illustration
=1 year equivalent possession of S in GF
F, in good faith possessed the land of X for 3 years before
his death. When F died, S inherited the land and believed Thus, every 3 years possession in BF by F is equivalent to
also in good faith that F was the owner of the land. Nine 1 year possession in GF
years after F died, X (owner) files a case to recover the
land from S. For how many more years should S possess the land to
acquire it?
Will the action of X prosper?
-Since S is in good faith, 10 years (OAP)-1 year
No, because the possession of S of 9 years may be added (possession tacked from F)=
to the possession of F of 3 years, giving S a total of 12 9 MORE YEARS
years of uninterrupted possession.
2. Articles 1139-1160
Why is this so?

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 15 of 96

Prescription of Actions or removal of the witnesses. Prescription applies even to

the most meritorious claims.

Article 1139. Actions prescribe by the mere lapse of Prescription as understood and used in this jurisdiction
time fixed by law. does not simply mean a mere lapse of time. Rather, there
must be a categorical showing that due to plaintiff's
Unlike acquisitive prescription that requires possession negligence, inaction, lack of interest, or intent to abandon
over things or rights, take note here that we only talk a lawful claim or cause of action, no action whatsoever
about the requirement of action and that action has was taken, thus allowing the statute of limitations to bar
prescribed by the mere lapse of time. And that lapse of any subsequent suit. (Antonio v. Morales, 2007)
time has been fixed by law.
As a matter of public policy, these suits must be silenced
Concept of actions by the lapse of time and inaction through extinctive
prescription. This is a separate and distinct concept from
-we refer to ordinary civil action or ordinary suits not to laches. No action whatsoever, then the action of
other types of civil actions (e.g. specific performance, prescription will come into bar
reconveyance of property)
What are the periods fixed by law?
-ordinary suits filed before a court of justice
We have Art. 1140.
-Special proceedings include guardianship, petition for
cancellation of names, registration of names (not Article. 1140. Actions to recover movables shall
adversarial in nature; do not reflect an ordinary suit that prescribe eight years from the time the possession
refers to the term actions under 1139) thereof is lost, unless the possessor has acquired the
ownership by prescription for a less period, according
-quasi-judicial bodies such as the NLRC are generally not to articles 1132, and without prejudice to the
covered by ordinary civil actions; they are regulated by provisions of articles 559, 1505, and 1133
their own laws and depending on the laws creating them .
❖ Action is the act by which one sues another in a court Talks about actions involving movables. Why 8 years?
of justice for the enforcement or protection of a right,
or the prevention or redress of a wrong while special GENERAL RULE: In actions to recover movables, it shall
proceeding is the act by which one seeks to establish prescribe 8 years from the time the possession thereof is
the status or right of a party, or a particular fact. lost.
Hence, action is distinguished from special
By the lapse of 8 years, extraordinary acquisitive
proceeding in that the former is a formal demand of
prescription would have already set in. So if a person
a right by one against another, while the latter is but
acquires movables by virtue of extraordinary acquisitive
a petition for a declaration of a status, right or fact.
prescription, then that person becomes the owner of that
(Pacific Banking v. CA, 1995)
movables because possession of movables will already be
considered as a title. Meaning, a person could be
❖ An action is defined as an ordinary suit in a court of
considered as an owner to those movables already.
justice, by which one party prosecutes another for the
Specifically if you couple that with the fact that 8 years
enforcement or protection of a right, or the
had already lapsed from the time of possession.
prevention or redress of a wrong (Spouses Edralin v.
Philippine Veterans Bank, March 9, 2011) This is the reason why, according to the Court that this
possession would be lost by the lapse of 8 years. The
Rationale reason for that is the Article 1140.

The prescriptive statutes serve to protect those who are Exception:

diligent and vigilant, not those who sleep on their rights.
The rationale behind the prescription of actions is to This exception is provided for under Art. 1140, unless the
prevent fraudulent and stale claims from springing up at possessor has acquired the ownership by prescription for
great distances of time, thus surprising the parties or their a less period, according to articles 1132, and without
representatives when the facts have become obscure prejudice to the provisions of articles 559, 1505, and
from the lapse of time or the defective memory or death 1133.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 16 of 96

If there is a less period provided, of course the action has 10 years pertains to the ordinary acquisitive
prescribed. prescription. So when we talk of de jure possession
or legal right possession, it would have already lapsed
But again, take note of Art. 1133 (public fairs and by the period of 10 years. So the 30 year period is
merchant stores), movables possessed through a crime without prejudice to the lapse of 10 years if the other
can never be acquired through prescription by the party, the opposing party had already acquired it under
offender in relation to the exception under Art. 559. the claim of ownership by virtue of ordinary acquisitive
prescription. We do not based it on 30 years but in this
Art. 559. The possession of movable property acquired case we based it on 10 years.
in good faith is equivalent to a title. Nevertheless, one
who has lost any movable or has been unlawfully deprived It is for this reason that the Supreme Court has time
thereof, may recover it from the person in possession of again ruled that “that the remedy of accion publiciana
the same is no longer available after the lapse of 10 years from
dispossession.”
ARTICLE 1140

Any action to recover such movables would have

already been barred. How will we know that we apply the 30 years or
the 10-year period? What is this accion publiciana?
ART. 1141. Real actions over immovables prescribe
after thirty years. This provision is without prejudice to Actions relating to possession
what is established for the acquisition of ownership
and other real rights by prescription. Accion publiciana

• An accion publiciana is an action for recovery of

the right to possess and is a plenary action
1141-mirrors extraordinary acquisitive (COMPLETE IN ITSELF) in an ordinary civil
prescription with respect to immovable proceeding to determine the better right of
possession of realty independent of the title or
Real actions refer to the real right of ownership. So the
ownership of the property.
real right with respect to property is acquired for the
• Under Article 555 (4) of the Civil Code of the
period of 30 years. That is the maximum period within
Philippines, the real right of possession is not lost
which a person can acquire property even by virtue of
till after the lapse of ten years. It is settled that
extraordinary acquisitive prescription.
the remedy of accion publiciana prescribes after
“without prejudice to what is established for the the lapse of ten years (Spouses Padilla v. Velasco,
acquisition of ownership and other real rights by 2009)
prescription” The issue in accion publiciana cases is who has the better
right to possess the property. Who has the better legal
Tuazon v. Tuazon (August 1, 2018) possession as possession is defined and determined under
the law.
In the case of Tuazon versus Tuazon (2018), the Court
said that Article 1141 of the Civil Code explicitly states So we determine that based on the 10 years. Why? If you
that real actions over immovable prescribe after 30 have the better right or legal right to possession with
years, without prejudice to what is established for the respect to property, then that means in good faith, with
acquisition of ownership and other real rights by just title you should have had already acquired the
prescription. Since the action before us is one of accion property. So we based it on the period of ordinary
publiciana, which seeks recovery of the real right of acquisitive prescription.
possession, Article 1141 must be read in relation to
established rules on prescription governing the real This is the reason why in relation to article 535 par 4 the
right of possession. Article 555 (4) of the Civil Code Civil Code of the Philippines, the real right of possession
provides that “real right of possession is not lost till is not lost till after the lapse of ten years . It is within this
after the lapse of ten years.” It is for this reason that period that the person could have had made the owner
we have time and again ruled that the remedy of through ordinary acquisitive prescription. It is settled that
accion publiciana is no longer available after the lapse the remedy of accion publiciana prescribes after the lapse
of 10 years from dispossession. of ten years.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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Accion reinvindicatoria person who enjoys the benefit of the burden of right of
way is what we call the dominant owner. He can have a
(action prescribes after the lapse of 30 years) convenient access to the public road or highway. The
An accion reinvindicatoria is a suit which has for its object dominant owner according to the law on property as the
the recovery of possession over the real property as right to demand a road right of way. It is not necessarily
owner. Also known as accion reinvindicacion, it is thus an the right to acquire a road right of way but a right to
action whereby plaintiff alleges ownership over a demand access to the property of another which is the
parcel of land and seeks full recovery of its full servient estate so he can enjoy the burden of having an
possession. access to the public highway.

What happens in an accion reinvindicatoria is that the The right to demand a road right of way is imprescriptible.
plaintiff has been deprived of the exercise of all the rights No matter the length of time that had passed, generally,
included in ownership and what he seeks to recover by does not have a prescriptive period. But there are other
filing an action is, in reality, only the exercise of the rights conditions in the property law why this road right of way
included in the ownership. Since possession is essential to can be extinguished. But nevertheless, the right to
the exercise of the other rights included in ownership and demand it with respect to the dominant estate or the
it is the most visible expression of the exercise of such dominant landowner, it is imprescriptible. So the servient
rights, an accion reinvindicatoria has been associated with estate or the owner has no choice but to carry that burden
the recovery of possession over the real property as on his shoulder and allow that benefit in favor of another.
owner. This is a legal obligation.

Other periods fixed by law

Article. 1142. A mortgage action prescribes
after ten years.

Imprescriptible actions

With respect to the second. Crossreference to art CF. 698.

ART. 1143. The following rights, among others
What are the periods fixed by law?
specified elsewhere in this Code, are not Article. 1144. The following actions must be brought
extinguished by prescription: within ten years from the time the right of action
(1) To demand a right of way, regulated in article accrues:
649; (1) Upon a written contract;
(2) To bring an action to abate a public or private (2) Upon an obligation created by law;
nuisance (3) Upon a judgment.
Lapse of time cannot legalize any nuisance, whether Article 1145. The following actions must be
public or private. commenced within six years:
(1) Upon an oral contract;
Therefore, the action to abate it is imprescriptible.
(2) Upon a quasi-contract.
These are imprescriptible actions, meaning it never Article. 1146. The following actions must be
prescribes. instituted within four years:
(1) Upon an injury to the rights of the plaintiff;
Illustration: (2) Upon a quasi-delict;
Characters: the dominant owner and the subservient If an action is based on these sources of obligation, then
owner you should know that the periods under Art 1144, 1145,
Road right of way is a burden or condition imposed by law and 1146 are applicable to them depending on the source
on the property of another. So with respect to what we of obligation.
call as the servient property, it carries a burden. That
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 18 of 96

In contract, it differs whether it is a written contract or an another remedy has already lapsed. In Civpro,
oral contract. It would depend which period will apply, the general period within which to make an
1144 or 1145 respectively. appeal is 15 days. From the time you received the
judgment, acquired a notice or knowledge of that
Now, let us highlight what a judgment is later but take judgment, then that decision will become final
note in these cases that it is important for you to know or after 15 days.
determine as reflected under 1144 specifically, when the
What are the periods fixed by law?
right of action accrues.

What do we even mean by the right of action? Article 1147. The following actions must be filed
within one year:
So the accrual of the right of action is basically a concept 1. Forcible entry and detainer
that you will learn in Civil Procedure but I want to tell you 2. For defamation (n)
this for you to apply in the cases which will illustrate these Defamation embraces libel, so if you maliciously malign
provisions. the personality of an individual through writing then that
malicious writing is what we call libel.
Accrual of the right of action
If it is not in writing, orally, that can still be a cause of
The right of action accrues when there exists a cause of action for a defamation suit. That oral defamation as
action, which consists of 3 elements, namely: cause of action in the civil action still prescribes after a
period of one year.
a. A right in favor the plaintiff by whatever means
and under whatever law it arises or is created; What do we mean of forcible entry and unlawful
b. An obligation on the part of the defendant to detainer?
respect such right; and
c. An act or omission on the part of such Spouses Munoz v. CA (1992)
defendant violative of the right of the plaintiff
(Espanol v. Board of Administrators, Philippine Veterans In forcible entry, the possession of the land by the
Administration, GR No 44616, June 29, 1985) defendant is unlawful from the beginning as he
acquires possession thereof by force, intimidation,
Enforcement of judgments threat, strategy or stealth;while in unlawful detainer,
the possession of the defendant is inceptively (AT THE
The provision (Art 1144 par. 3) applies to local and BEGINNING) lawful but it becomes illegal by reason of
foreign judgments because it does not make any the termination of his right to the possession of the
distinction between the two (Mijares v. Ranada, 2005) property under his contract with the plaintiff (Dikit v.
where the Supreme Court ruled that ‘where the law does Icasiano, 89 Phil. 44).
not distinguish, we shall not distinguish’.

The right of action commences to run from the date of In forcible entry, the law does not require a previous
finality of the foreign judgment (PNB v. Bondoc, demand for the defendant to vacate the premises; but
1965) in unlawful detainer, the plaintiff must first make
such demand, which is jurisdictional in nature (Sec. 2;
In local judgment, as per the Civil Procedure you must Medel v. Militante, 41 Phil. 44).
institute an independent civil action to execute a local
judgment within a period of 10 years based on the finality In forcible entry, the plaintiff must prove that he was
of that judgment. When does a judgment become final? in prior physical possession of the premises until he was
You will learn that in Civil Procedure but as you should deprived thereof by the defendant; in unlawful
know, the finality of that judgment is final in two senses. detainer, the plaintiff need not have been in prior
physical possession (Maddamu v. Judge, 74 Phil. 230;
When does a judgment becomes final? Aguilar v. Cabrera, 74 Phil. 666; Banayos v. Susana
Realty, Inc., L-30336, June 30, 1976; Pharma
• A judgment is final in its first sense meaning it
Industries, Inc. v. Pajarillaga, Et Al., L-53788, Oct. 17,
completely disposes of the cases based on the
1980).
merits, not on ancillary matters.
In forcible entry, the one-year period is generally
• In a second sense, a judgment becomes final counted from the date of actual entry on the land; in
when the period to make an appeal or to file unlawful detainer, from the date of last demand
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 19 of 96

(Sarona, Et. Al. v. Villegas, Et Al., L-22984, Mar. 27, judgment commences from the time the judgment
1968) or last letter of demand (DBP v. Canonoy, L- became final.
29422, Sept. 30, 1970; Calibayan v. Pascual, L-22645,
Sept. 18, 1967; Racaza v. Susana Realty, Inc., L-20330, Example of civil obligation: civil ex delicto
Dec. 22, 1966). (Regalado, Florenz D., Remedial Law
Compendium, Vol. 1, 5th Revised Edition, pp. 503-504) If you enforced this obligation based on the judgment,
then of course from the time that judgment becomes final

Article 1153. The period for prescription of actions to

Forcible entry- when does the force, intimidation, threat, demand accounting runs from the day the persons
strategy or stealth discovered? That is the time where who should render the same cease in their functions.
the one you reckoned the one year period.
The period for the action arising from the result of the
Example: contract of lease (renter and owner) accounting runs from the date when said result was
recognized by agreement of the interested parties.
Unlawful detainer- one year period is reckoned from the
date of the demand because there is a necessity to
demand because without it, it will be presumed that they
have agreed. First par: For example, under your law on partnerships,
you will learn that if there is a dissolution of partnership
What are the periods fixed by law? (owned by two or more persons), the moment that the
Article 1148. The limitations of actions mentioned in partner ceased to be partners to that specific partnership,
articles 1140 to 1142, and 1144 to 1147 are without that is the moment that you reckon the day since this
prejudice to those specified in other parts of this person has ceased in the rendition of their function to
Code, and in the Code of Commerce, and in special carry out the profit and expenses of a company. That is
laws. the precise moment where the period for an action to
demand an accounting will already start running.
Article 1149. All other actions whose periods are not
fixed in this Code, or in other laws must be brought
within five years from the time the right of action When does that period prescribed?
accrues.
It demands on the contract (if it is written then 10 years
or if oral, 6 years).
Computation of periods 2nd Par:

Article 1150. The time for prescription for all kinds of For example if the partnership has not still dissolved, they
actions, when there is no special provision which now agree to have an accounting and hire an accounting
ordains otherwise, shall be counted from the day they to tally and account. The moment there is a result, if they
may be brought. feel they have

The period for the action based on the result of the

Article 1151. The time for the prescription of actions
which have for their object the enforcement of accounting will start from the moment the results were
obligations to pay principal with interest or annuity runs recognized by agreement of the parties. So whatever
from the last payment of the annuity or of the interest. actions they wanted to institute, it begins to run. This is
the reckoning period when to institute an action and not
when the action will prescribed.
This is to be counted from the last payment of the interest
based on the rules that you should settle first the interest
before the principal. Article 1154. The period during which the obligee
was prevented by a fortuitous event from enforcing his
right is not reckoned against him.
Article 1152. The period for prescription of actions to
demand the fulfillment of obligation declared by a Obligee-creditor/has the right to demand

Example:
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 20 of 96

It is already a deadline to file an action based on an oral parties in exactly the same position as though no action
contract and on the last day of the period of 6 years, that had been commenced at all.
person was confronted with a fortuitous event (example:
car accident, flooding, earthquake,) that period where he Hence, while the filing of Civil Case No. Q-89-2244
was prevented to file an action will not be reckoned could have interrupted the running of the three-year
against him. So his action will not prescribed for so long prescriptive period, its consequent dismissal by the
as he alleged that he was prevented by a fortuitous event. CA in CA-G.R. SP No. 23821 due to lack of
jurisdiction effectively canceled the tolling of
the prescriptive period within which to file his
Interruption in extinctive prescription money claim, leaving respondent in exactly the same
position as though no civil case had been filed at
Article 1155. The prescription of actions is all. The running of the three-year prescriptive period
interrupted when they are filed before the court, when not having been interrupted by the filing of Civil Case
there is a written extrajudicial demand by the No. Q-89-2244, respondent's cause of action had
creditors, and when there is any written already prescribed on September 2, 1991, three years
acknowledgment of the debt by the debtor. after his cessation of employment on September 2,
1988. Consequently, when respondent filed his
complaint for illegal dismissal, separation pay,
This is also different from the concept of interruption in retirement benefits, and damages in July 24, 1996, his
acquisitive prescription and from the concept of claim, clearly, had already been barred by prescription.
suspension or tolling of the prescriptive period.

Three instances of interruption of prescription of In the case below, there was interruption even if there
actions: was a dismissal of the case.
1. When they are filed before the court Antonio v. Morales
2. When there is a written extrajudicial demand by (Jan. 23, 2007)
the creditors
3. When there is any written acknowledgement of We recall that on December 18, 1995, respondent
the debt by the debtor initially filed with the RTC of Makati City Civil Case No.
95-1796. While it was later dismissed without prejudice
When the action is filed before the court to his own motion, we note that the dismissal sought
was not for the purpose of voluntarily abandoning his
1. Action is filed in a competent court claim. On the contrary, respondent's intention was to
2. Its dismissal or voluntary abandonment by expedite the enforcement of his rights.
plaintiff leaves the parties in exactly the same Understandably, he felt frustrated at the snail's pace at
position as though no action had been which his case was moving. As mentioned earlier, CA-
commenced at all. (as if there was no G.R. SP No. 59309 remained pending before the Court
interruption from the moment the very of Appeals for six (6) long years.
beginning)
We further observe that respondent acted swiftly after
the dismissal of his case without prejudice by the
Makati RTC. He immediately filed with the Court of
When the action is filed in a competent court of Appeals a manifestation that Civil Case No. 95-1796
was dismissed by the lower court. But the Court of
jurisdiction)
Appeals acted on his manifestation only after one year.
Intercontinental Broadcasting This delay, beyond respondent's control, in turn further
Corporation, v. Panganiban (Feb 6, 2007) caused delay in the filing of his new complaint with the
Thus, the prescription of an action is interrupted by (a) Quezon City RTC. Clearly, there was no inaction or lack
the filing of an action, (b) a written extrajudicial of interest on his part.
demand by the creditor, and (c) a written
acknowledgment of the debt by the debtor. On this
point, the Court ruled that although the
commencement of a civil action stops the running of
the statute of prescription or limitations, its dismissal Camarines Sur IV Electric Cooperative, INC. v.
or voluntary abandonment by plaintiff leaves the Aquino
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 21 of 96

(June 29, 2015) provides a tangible evidence and validity of the debt.
(Philippine National Bank v. Osete July 1968)
An action for damages predicated "upon an injury to
the rights of the plaintiff must be instituted within four What do you mean by a demand?
(4) years. As in other causes of action, however, the This is like a letter that states “good day, I am writing this
prescriptive period for money claims is subject to letter to remind you that you have a debt to” Is that a
interruption, Article 1155 of the Civil Code expressly
kind of demand? No? Base your answer in Spouses
provides:
Vasquez vs Ayala Corporation as this case clarifies what
Article 1155. The prescription of actions is interrupted we mean by a demand.
when they are filed before the Court, when there is When is there a demand?
written extra-judicial demand by the creditors, and
when there is any written acknowledgment of the debt Mere reminders which cannot be considered demands for
by the debtor. performance because it must appear that the tolerance or
benevelonce of the creditor must have ended. (Sps
When respondent Aquino instituted an action for Vasquez v. Ayala Corp, November 2004)
damages in 2003, the filing of the said case legally
The creditor must be enforcing his right.
interrupted its prescription in accordance with Article
1155 of the Civil Code. As Article 1155 does not qualify, Matters to consider:
the interruption subsisted during the pendency of the
action until its final resolution, which in this case, lasted 1. Formality- must be in writing
until the entry of the final judgment in 2009. Thus, 2. Extrajudicial demand- the first ground is already
when she filed the second case in 2010, the statute of a judicial demand when you file a case in court
limitations had not yet expired. but it still interrupted when you enforce an
extrajudicial demand for so long as it is in writing.

“for the entire time that the case is pending, this period SC explains the effect of interruption.
of prescription of actions is interrupted as Art 1155 does
not qualify” Permanent Savings and Loan Bank v. Velarde
(September 2004)
Nestle Philippines, Inc.,
vs. Petitioner's action for collection of a sum of money was
CA based on a written contract and prescribes after ten
(July 6, 2001) years from the time its right of action arose. The
prescriptive period is interrupted when there is a
Consequently, the pendency of its protest cases before written extrajudicial demand by the creditors. The
the office of the Collector of Customs of Manila did not interruption of the prescriptive period by written
interrupt the running of the prescriptive period under extrajudicial demand means that the said period would
the aforesaid provision of law considering that it is only commence anew from the receipt of the demand.
an administrative body performing only quasi-judicial
function and not a regular court of justice.Thus, in like Thus, in the case of The Overseas Bank of Manila v.
manner the thirty-day period for appealing to the CTA Geraldez, the Court categorically stated that the correct
must be made within the six-year prescriptive period. meaning of interruption as distinguished from
mere suspension or tolling of the prescriptive period is
that said period would commence anew from the
receipt of the demand.
When there is a written extrajudicial demand by
the creditors
Respondent's obligation under the promissory note
Rationale: became due and demandable on October 13, 1983. On
July 27, 1988, petitioner's counsel made a written
The demand indicates that the creditor has not slept on demand for petitioner to settle his obligation. From the
his rights – and removes the basis of the statute of time respondent's obligation became due and
limitation of actions- but, was vigilant in the enforcement demandable on October 13, 1983, up to the time the
thereof, whereas an acknowledgment by the debtor demand was made, only 4 years, 9 months and 14 days
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 22 of 96

had elapsed. The prescriptive period then commenced of action has not prescribed, because it was filed within
anew when respondent received the demand letter on the period of limitation of actions (Article 1155, New
August 5, 1988. Thus, when petitioner sent another Civil Code).
demand letter on February 22, 1994, the action still
had not yet prescribed as only 5 years, 6 months and
17 days had lapsed. While the records do not show
when respondent received the second demand letter, Written communication between the debtor and
nevertheless, it is still apparent that petitioner had the creditor is synonymous to an express
right to institute the complaint on September 14, 1994, acknowledgment on the part of the debtor
as it was filed before the lapse of the ten-year
prescriptive period.
Provident Savings Bank v. Court of Appeals
(MAY 17, 1993)
When there exists a written acknowledgment of
the debt of the debtor Having arrived at the conclusion that a foreclosure is
part of a bank’s business activity which could not have
Characteristics of the acknowledgment been pursued by the receiver then because of the
circumstances discussed in the Central Bank case, we
1. Acknowledgment must be in writing, although
are thus convinced that the prescriptive period was
express or implied
legally interrupted by fuerza mayor in 1972 on account
of the prohibition imposed by the Monetary Board
-Not all acts of acknowledgment of a debt interrupt against petitioner from transacting business, until the
prescription. To produce such effect, the acknowledgment directive of the Board was nullified in 1981. Indeed, the
must be written so that payment, if not coupled with a period during which the obligee was prevented by a
communication signed by the payor, would not caso fortuito from enforcing his right is not reckoned
interrupt the running of the period of prescription. against him (Article 1154, New Civil Code).
(Philippine National Bank v. Osete, GR No L-24997,
July 18, 1968) When prescription is interrupted, all the benefits
acquired so far from the possession cease and when
2. Mere offer to compromise a suit based on a prescription starts anew, it will be entirely a new one.
supposed debt –not an admission This concept should not be equated with suspension
where the past period is included in the computation
being added to the period after prescription is resumed
3. Mere examination of the debt, but no admission
(4 Tolentino, Commentaries and Jurisprudence on the
due to exorbitant amount is not enough
Civil Code of the Philippines, 1991 ed., pp. 18-19).
-should be categorical admission Consequently, when the closure of petitioner was set
aside in 1981, the period of ten years within which to
foreclose under Article 1142 of the New Civil Code
Effect of interruption was applied in this case
began to run again and, therefore, the action filed on
August 21, 1986 to compel petitioner to release the
Ramos v. Condez (Aug. 30, 1967) mortgage carried with it the mistaken notion that
Under Article 1144 of the Civil Code (new), an action petitioner’s own suit for foreclosure had prescribed.
upon a written contract." . . must be brought within ten
years from the time the cause of action accrues." There What exacerbates the situation is the letter of private
is no denying that, in the instant case, the plaintiffs’ respondent requesting petitioner on August 6, 1986
cause of action, under the deed of absolute sale, annex that private respondent be allowed to pay the loan
A, has accrued on June 25, 1952, but, in view of the secured by the mortgage as a result of the Deed of Sale
defendants’ letter, dated November 10, 1956, executed by the Guarins, in his favor on July 10, 1986
acknowledging the validity of the deed of absolute sale (pp. 36-37, Rollo). In point of law, this written
and promising to comply with their commitments as communication is synonymous to an express
embodied in the deed of sale that they will deliver the acknowledgment of the obligation and had the
land which they have sold to the plaintiffs, the running effect of interrupting the period of prescription
of the period of limitation of action was interrupted on for the second time (Article 1155, New Civil Code;
that date, November 10, 1956. Considering that the Osmeña v. Rama, 14 Phil. 99 [1909]; 4 Tolentino, supra
action was filed on May 22, 1963, evidently, the cause at p. 50). And this piece of document necessarily estops
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 23 of 96

private respondent from setting up prescription vis-a-

vis his unfounded supposition that acknowledgment of Applicable to acquisitive and extinctive
the debt is of no moment because the right of prescription
petitioner to foreclose had long prescribed in 1977 (p.
Talens et al v. Chuakay and Co (Jun 30, 1958)
13, Petition; p. 7, Comment; pp. 19 and 58, Rollo).
Judicial notice may be taken of the fact that regular
courts were closed or ceased to function with the
overrunning of Luzon by the Japanese forces in Dec
1941. They did not reopened until January 30,
Suspension of prescriptive periods 1942. This interruption in the functions of the courts
naturally suspended also the running of the prescriptive
period.
When can we say that periods are suspended? If
interruption is different from suspension, then when can
we say that the running of the prescriptive period is
Interruption vs. Suspension
merely suspended or tolled?
Interruption Suspensions
The period for the running The period of the running
Previous period will be carried over after the moratorium.
of the prescriptive period of the prescription shall
Example: during the pandemic payment of rental is shall commence anew be tolled and shall run
suspended especially during ECQ again after the cessation
of the cause
Republic vs. CA (April 12, 1989) Instances when Instances when
On the effect of the moratorium law on the statute of interruption may occur: suspension may occur
limitations, on several occasions, this Court ruled that Refer to article 1155 1. Article 1154-
Executive Order No. 32 dated March 10, 1945 fortuitous events
suspended the payment of all monetary obligations 2. The moratorium law
contracted before December 8, 1941. Because of the suspended the
suspension of payments the running of the prescriptive creditor’s right to sue
period was also tolled or interrupted from March 10, and for purposes of
1945 to July 26, 1948, or for a period of three years, prescription, the time
four months and sixteen days (Montilla v. Pacific it was in force must
Commercial Company, 98 Phil. 133 [1955]; Pacific be excluded from the
Commercial Company v. Aquino, 100 Phil. 961 [1957]; computation
Bachrach Motor Co., Inc. v. Chua Tian, 100 Phil. 184 3. Closure of courts
[1957]; Liboro v. Finance and Mining Investment Corp., during the Japanese
102 Phil. 489 [1957]). occupation

However, for war damage claimants in accordance with

Republic Act No. 342 dated July 26, 1948, it was held
in a number of cases that the suspension of the statute
OBLIGATIONS
of limitations started with the issuance of Executive
Order No. 32 on March 10, 1945 and lasted up to May Article. 1156. An obligation is a juridical necessity to
18, 1953 when Republic Act No. 342 was declared give, to do or not to do.
unconstitutional by this Court in Rutter v. Esteban (93
Phil. 68 [1953]). In other words, during the duration of
the moratorium law, or for a period of 8 years, 2 (CIVIL) OBLIGATION as defined by Arias Ramos is a
months and 8 days, the prescriptive period was also juridical relation whereby a person (called the creditor)
suspended for debtors with war damage claims. may demand from another (called the debtor) the
(Tiosejo v. Dag, et al., L-9944, April 10, 1937; Levi observance of a determinate conduct (to give, to do or
Hermanos, Inc. v. Perez, L-14487, April 29,1960; not to do), and, in case of breach, may obtain satisfaction
Nielson & Co., Inc, v. Lepanto Consolidated Mining Co.,
from the assets of the latter.
135 Phil. 532 [1969]; Republic v. Hernaez, 31 SCRA
219 [1970]; Republic v. Grizaldo, 15 SCRA 681 [1965]; A legal relation established between one party and
De Agbayani v. Philippine National Bank, 38 SCRA 429 another, whereby the latter is bound to the fulfillment of
[1971]). a prestation which the former may demand of him
(Manresa).
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 24 of 96

Types of Obligations as to Juridical Quality Court, and in special laws. Capacity to act is not limited
on account of religious belief or political opinion.
Natural-when the obligation is in accordance with
natural law A married woman, twenty-one years of age or over, is
Civil-when the obligation is in accordance with civil law qualified for all acts of civil life, except in cases specified
by law. (n)
Mixed- when the obligation is in accordance with both
natural and positive law
Thus Art 38 and 39 prevent incapacitated persons from
Article 1423. Obligations are civil or natural.
incurring contractual obligations only.
• Civil obligations give a right of action to compel Incapacity not an exemption to certain
their performance.
obligations
• Natural obligations, not being based on positive
law but on equity and natural law, do not grant a A. Law-Payment of taxes are not excused
right of action to enforce their performance, but B. Delict
after voluntary fulfillment by the obligor, they • RPC ARTICLE 101.Rules regarding civil
authorize the retention of what has been liability in certain cases. - The exemption
delivered or rendered by reason thereof from criminal liability established in
Essential requisites of an obligation: subdivisions 1, 2, 3, 5 and 6 of Article 12 and
in subdivision 4 of Article 11 of this Code
1. Vinculum juris or the juridical/legal tie – may does not include exemption from civil
arise from bilateral or unliteral acts of persons liability, which shall be enforced subject to
the following rules:
The juridical tie binding the active and the passive
subjects together is created by any of the sources of First. In cases of subdivisions 1, 2, and 3 of Article 12,
obligations expressed in Art 1157. the civil liability for acts committed by an imbecile
or insane person, and by a person under nine years
2. Active Subject (Creditor or Obligee) – may of age, or by one over nine but under fifteen years
demand the fulfillment of the obligation; creditor of age, who has acted without discernment, shall
or obligee devolve upon those having such person under their
legal authority or control, unless it appears that there
was no fault or negligence on their part.
3. Passive Subject (Debtor or Obligor)– against
whom the obligation is juridically demandable Should there be no person having such insane, imbecile
or minor under his authority, legal guardianship or
control, or if such person be insolvent, said insane,
GENERAL RULE: The parties must be capacitated, imbecile, or minor shall respond with their own
especially in cases of contracts property, excepting property exempt from
execution, in accordance with the civil law.
Art 38. Minority, insanity or imbecility, the state of
being deaf-mute, prodigality and civil interdiction are Second. In cases falling within subdivision 4 of Article 11,
mere restrictions on capacity to act, and do not exempt the persons for whose benefit the harm has been
the incapacitated person from certain obligations, as prevented shall be civilly liable in proportion to the benefit
when the latter arise from his acts or from property which they may have received.
relations, such as easements
The courts shall determine, in sound discretion, the
Art 39. The following circumstances, among others, proportionate amount for which each one shall be liable.
modify or limit capacity to act: age, insanity, imbecility,
the state of being a deaf-mute, penalty, prodigality, When the respective shares cannot be equitably
family relations, alienage, absence, insolvency and determined, even approximately, or when the liability also
trusteeship. The consequences of these circumstances attaches to the Government, or to the majority of the
are governed in this Code, other codes, the Rules of inhabitants of the town, and, in all events, whenever the
damages have been caused with the consent of the

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 25 of 96

authorities or their agents, indemnification shall be made Article 101 of the Revised Penal Code with respect to
in the manner prescribed by special laws or regulations. damages ex delicto caused by their children 9 years of
age or under, or over 9 but under 15 years of age who
Third. In cases falling within subdivisions 5 and 6 of Article acted without discernment; and, with regard to their
12, the persons using violence or causing the fears shall children over 9 but under 15 years of age who acted
be primarily liable and secondarily, or, if there be no such with discernment, or 15 years or over but under 21
persons, those doing the act shall be liable, saving always years of age, such primary liability shall be imposed
to the latter that part of their property exempt from pursuant to Article 2180 of the Civil Code.33 (Emphasis
execution. and underscoring supplied)
Article 101 of the RPC, however, provides that the
• Republic Act 9344 or the Juvenile Justice and foregoing liability of CICL XXX's parents is subject to
Welfare Act of 2006, provides the minimum age the defense that they acted without fault or negligence.
of criminal responsibility. Section 6. Minimum Thus, the civil aspect of this case is remanded to the
age of criminal responsibility trial court, and it is ordered to implead CICL XXX's
The exemption from criminal liability herein parents for reception of evidence on their fault or
established does not include exemption from civil negligence.
liability, which shall be enforced in accordance
with existing laws.

CICL XXX v PEOPLE (AUGUST 14, 2019) C. QUASI-DELICT (Family Code)

While CICL XXX is not criminally liable for his Parental authority. ART 221.
acts because the presumption that he acted Parents and other persons exercising parental
without discernment was not overcome, he is authority shall be civilly liable for the injuries
still civilly liable for the injuries sustained by and damages caused by the acts or omissions of
Redoquerio. It is well-settled that "[e]very person their unemancipated children living in their
criminally liable is also civilly liable x x x. However, it company and under their parental authority
does not follow that a person who is not criminally subject to the appropriate defenses provided by
liable is also free from civil liability. Exemption from law.
criminal liability does not always include exemption
from civil liability. Special parental authority. ART 218.
The foregoing liability is imposed upon CICL XXX's The school, its administrators and teachers, or the
parents because Article 101 of the Revised Penal Code . individual, entity or institution engaged in child are shall
In Libi v. Intermediate Appellate Court, the Court en
have special parental authority and responsibility over
banc interpreted the above provision to mean that the
civil liability of parents for criminal offenses the minor child while under their supervision,
committed by their minor children instruction or custody.
is direct and primary. The Court said:
Authority and responsibility shall apply to all authorized
Accordingly, just like the rule in Article 2180 of the Civil
Code, under the foregoing provision the civil liability activities whether inside or outside the premises of the
of the parents for crimes committed by their school, entity or institution. (349a)
minor children is likewise direct and primary,
and also subject to the defense of lack of fault or Art. 129. Those given the authority and responsibility
negligence on their part, that is, the exercise of the
diligence of a good father of a family. under the preceding Article shall be principally and
solidarily liable for damages caused by the acts or
Under the foregoing considerations, therefore, we omissions of the unemancipated minor. The parents,
hereby rule that the parents are and should be held judicial guardians or the persons exercising substitute
primarily liable for the civil liability arising from
criminal offenses committed by their minor parental authority over said minor shall be subsidiarily
children under their legal authority or control, or liable.
who live in their company, unless it is proven
that the former acted with the diligence of a The respective liabilities of those referred to in the
good father of a family to prevent such damages.
preceding paragraph shall not apply if it is proved that
That primary liability is premised on the provisions of

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 26 of 96

they exercised the proper diligence required under the 1. Real obligation – the obligation to give (you
literally or really have to give something)
particular circumstances.
2. Personal obligation – the obligation to do or
not to do (we are talking about the capacity of
All other cases not covered by this and the preceding the person to render service)
articles shall be governed by the provisions of the Civil PRESTATION TYPE OF OBLIGATION
Code on quasi-delicts. To give Positive real obligation
To do Positive personal obligation
Not to do Negative personal
D. QUASI-CONTRACT obligation
Art 2142. NCC. Certain lawful, voluntary and Not to give Negative real obligation
unilateral acts give rise to the juridical relation of
quasi-contract to the end that no one shall be unjustly
Types of obligations according to prestations
enriched or benefitted at the expense of another.
Real obligations –susceptible of specific
performance
This is the reason why minors and incapacitated persons -“to give” consists of the delivery of a movable or
still incur liability as no one shall be unjustly enriched or immovable thing which is either determinate (specific)
benefitted at the expense of another. Take note that or indeterminate (generic). This is in order to create a
quasi-contract refers to acts not contract. real right, or for the use of the creditor, or for its simple
possession, or in order to return to its owner.
Requisites of civil obligations
The fact, prestation, object or service which constitutes Personal obligations – not susceptible to specific
the object or subject matter of the obligation – to give, to performance (prohibition against involuntary
do, not to do, and not to give” servitude);

EXPLANATION: Prestation is actually which should be Art 1703. No contract which practically amounts to
done or performed pursuant to that type of obligation. involuntary servitude, under any guise whatsoever, shall
be valid.
Elements of prestation:
- “To do” (positive personal obligation)
1. Licit or legal involves all kinds of work or services whether
2. Possible in fact and in law- it must be physically physical or mental, but in most cases, the essence
and juridically or legally possible of the act man not be such, but merely the
3. Determinate or at least determinable according to necessity of concluding a juridical operation, such
pre-established elements or criteria (to give what, as when a person promises to give a bond
to do what, or to do something) - “Not to do” (negative personal obligation)
4. Pecuniary value, as a rule – possible equivalent in is a negative obligation which consists of
money or a pecuniary value, for a valuable abstaining from some act, it includes “not to give”
consideration. (Generally you do not incur
obligation if there is nothing of value involved.)
Note: but literality may be considered as sufficient Determinate v. Indeterminate objects
consideration, such as in the case of a waiver or
1. Determinate or specific objects
donation (this is still a valid prestation)
-Article 1460. A thing is determinate when it is
Types of obligations based on prestation particularly designated or physical segregated
from all others of the same class
From the viewpoint of compliance

1. Positive or affirmative obligation – the 2. Indeterminate or generic objects- not

obligation to give or to do particularly designated or physical segregated
2. Negative obligation – the obligation not to do from all others of the same class; object is one
(which naturally includes “ not to give”) whose determination is confined to that of its
From the viewpoint of prestation nature – to the genus to which it pertains.
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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A determinate thing is a concrete particularized 5. Formalities provided by law –usually

object indicated by its own individuality, while a obligations arising from contracts
generic thing is one whose determination is confined to Example: donation propter nuptias
that of its nature, to the genus (genero) to which it Dauden-hernaez, v. Delos angeles
pertains (De Leon v. Soriano, GR No L-27724 (August (April 30, 1969)
24, 1950). The general rule that the form (oral and written) is
irrelevant to the binding effect inter partes of a contract
A limited generic obligation is one when the generic that possesses the three validating elements of
objects are classified to a particular class. (gray area consent, subject matter and causa, Article 1356 of the
between the determinate and determinate. For example: Civil Code establishes only two exceptions, to wit:
I promise to give you any of my cars. You do not know
which cars I own should I give you.) (a) Contracts or which the law itself requires that they
be in some particular form (writing) in order to make
Relevance of distinctions them valid and enforceable (the so-called solemn
contracts). Of these the typical example are the
Res perit domino rule- The thing is lost to the owner.
donation of immovable property (Article 749) and
This doctrine is used to express the rule that when a
donation of movables worth more than P5,000.00
thing is lost or destroyed, it is lost to the person who (Article 743); contracts to pay interest on loans
was the owner of it at the time. (mutuum) (Article 1956); and the agreements
contemplated by Articles 1744, 1773, 1874 and 2134
ART. 1262. An obligation which consists in the
of the present Civil Code.
delivery of a determinate thing shall be
extinguished if it should be lost or destroyed without
(b) Contracts that the law requires to be proved by
the fault of the debtor, and before he has incurred in
some writing (memorandum) of its terms, as in those
delay. When by law or stipulation, the obligor is
covered by the old Statute of Frauds, now Article
liable even for fortuitous events, the loss of the
1403(2) of the Civil Code. Their existence not being
thing does not extinguish the obligation, and he shall
provable by mere oral testimony (unless whooly or
be responsible for damages. The same rule applies
partly executed), these contracts are exceptional in
when the nature of the obligation requires the
requiring a writing embodying the terms thereof for
assumption of risk. (1182a)
their enforceability by action in court.
Art. 1263. In an obligation to deliver a generic
thing, the loss or destruction of anything of the same 6. Delivery in cases of real contracts –
kind does not extinguish the obligation (genus commodatum, deposit, simple loan/mutuum,
nunquam perit or genus never perishes) pledge (Art 1316, Civil Code), contracts of
carriage

Remedies under Article 1165 are different. Delivery is a special requisite in this type of obligation.

Art. 1165. When what is to be delivered is a 7. Causa debendi/ causa obligationis (Castan) –
determinate thing, the creditor, in addition to the right This is what makes the obligation demandable.
granted him by Article 1170, may compel the debtor This is the proximate why of an obligation, “
to make the delivery. cause” of an obligation (reasonable cause)
If the thing is indeterminate or generic, he may ask
That reason behind that obligation is called causa
that the obligation be complied with at the expense of
debendi
the debtor.
If the obligor delays, or has promised to deliver the
same thing to two or more persons who do not have
the same interest, he shall be responsible for any
Sources of Obligations
fortuitous event until he has effected the delivery. Article 1157. Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
Special requisites of civil obligations (4) Acts or omissions punished by law; and
(5) Quasi-delicts.
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 28 of 96

Instances where no obligation exists: damnum,

absque injuria
Article 1157.
Obligations arise from: -“Injury” is the illegal invasion of a legal right; damage is
1. Law Art. 1158. Obligations the loss, hurt or harm which results from the injury; and
derived from law are not damages are the recompense or compensation awarded
presumed. Only those for the damage suffered. Thus, there can be damage
expressly determined in without injury in those instances in which the loss or harm
this Code or in special was not the result of a violation of a legal duty. In such
laws are demandable, and cases, the consequences must be borne by the injured
shall be regulated by the person alone, the law affords no remedy for damages
precepts of the law which resulting from an act which does not amount to a legal
establishes them; and as injury or wrong. These situations are often called
to what has not been damnum absque injuria. (Far East Bank v. Pacilan,
foreseen, by the Jul. 29, 2005)
provisions of this Book.
2. Contracts Art. 1159. Obligations
arising from contracts
have the force of law
between the contracting (1) Obligations Arising From Law
parties and should be Article. 1158. Obligations derived from law are not
complied with in good presumed. Only those expressly determined in this
faith. Code or in special laws are demandable, and shall be
3. Quasi- Art. 1160. Obligations regulated by the precepts of the law which
contracts derived from quasi- establishes them; and as to what has not been
contracts shall be subject foreseen, by the provisions of this Book.
to the provisions of
Chapter 1, Title XVII, of
this Book The term “law” requires it to be published before it comes
4. Acts or Art. 1161. Civil effective. (Article 2, New Civil Code)
omissions obligations arising from
punished by criminal offenses shall be Legal obligations are never presumed
law governed by the penal
- Only those expressly determined in the New
laws, subject to the
Civil Code or in special laws are demandable,
provisions of Article 2177,
and shall be regulated by the precepts of the law
and of the pertinent
provisions of Chapter 2, which establishes them; and as to what has been
Preliminary Title, on foreseen, by the provisions of this Book IV of the
Human Relations, and of New Civil Code (ART 1158)
Title XVIII of this Book, Determination of source: It must be noted that in the
regulating damages. birth or generation of a legal obligation, there is always
5. Quasi-delicts Art. 1162. Obligations a concurrence between:
derived from quasi-delicts
shall be governed by the 1. The law which establishes or recognizes the
provisions of Chapter 2, obligation and
Title XVII of this Book, 2. An act or condition upon which the obligation
and by special laws. is based or predicated
Determination of source

• When the law establishes the obligation and the

VITUG: These sources of patrimonial obligations, as
act or condition upon which it is based is nothing
distinguished from those that are correlatively due or
more than a factor for determining the moment
arising from purely personal and intransmissible rights,
when it becomes demandable, then the law
are said to be exclusive.
itself is the source of the obligation.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 29 of 96

Examples: Essential marital obligations (Art 68 to 71 of should have been brought to WGCC's attention within
the Family Code) the one-year defects liability period in the contract.
• When the law merely recognizes or acknowledges
the existence of an obligation generated by an act We cannot countenance an interpretation that
which may constitute a contract, a quasi-contract, undermines a contractual stipulation freely and validly
criminal offense or quasi-delict and its only agreed upon. The courts will not relieve a party from
purpose is to regulate such obligation, then the the effects of an unwise or unfavorable contract freely
act itself is the source of the obligation and entered into.
not the law.

(2) Obligations Arising From

Contracts EFFECT OF LAWS ON CONTRACTS
Article. 1159. Obligations arising from contracts
✓ It is basic that the law is deemed written into
have the force of law between the contracting parties
and should be complied with in good faith. every contract. Although a contract is the law
between the parties, the provisions of positive
law which regulate contracts are deemed written
Definition: Art 1305. A contract is a meeting of minds therein and shall limit and govern the relations
between two persons whereby one binds himself, with between the parties (Heirs of San Miguel v. CA,
respect to the other, to give something or to render some Sept. 5, 2001)
service.
✓ Contracts are governed by the law in effect
Art. 1159. Obligations arising from contracts have the at the time of their execution.
force of law between the contracting parties and should
be complied with in good faith. –principle of obligatory (Flores v. So, June 16, 1988)
force of contracts Art 2252 on Transitional Provisions in the New Civil
Code provides that:
1. Force of law between the parties
Golangco Construction Corporation v. PCIB
Art 2252. Changes made and new provisions and rules
(Mar. 24, 2006)
laid down by this Code which may prejudice or impair
vested or acquired rights in accordance with the old
Obligations arising from contracts have the legislation shall have no retroactive effect.
force of law between the parties and should be For the determination of the applicable law in cases
complied with in good faith. In characterizing the
which are not specified elsewhere in this Code, the
contract as having the force of law between the parties, following articles shall be observed: (Pars. 1 and 2,
the law stresses the obligatory nature of a
Transitional Provisions).
binding and valid agreement.
Furthermore, Art 2255 thereof states that:
The provision in the construction contract providing for
a defects liability period was not shown as contrary to Art. 2255. The former laws shall regulate acts and
law, morals, good customs, pubic order or public policy. contracts with a condition or period, which were
By the nature of the obligation in such contract, the executed or entered into before the effectivity of this
provision limiting liability for defects and fixing specific Code, even though the condition or period may still be
guaranty periods was not only fair and equitable; it was pending at the time this body of laws goes into effect.
also necessary. Without such limitation, the contractor
would be expected to make a perpetual guarantee on In Manalansan v. Manalang, we held that in a sale with
all materials and workmanship. the right of redemption, the ownership over the thing
sold is transferred to the vendee upon execution of the
The adoption of a one-year guarantee, as done by contract, "subject only to the resolutory condition that
WGCC and PCIB, is established usage in the Philippines the vendor exercise his right of repurchase within the
for private and government construction contracts. The period agreed upon." Consequently, since the pacto de
contract did not specify a different period for defects in retro sale in question, which was executed in February
the granitite wash-out finish; hence, any defect therein of 1950, before the effectivity of the New Civil Code in
August of 1950, was a contract with a resolutory

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 30 of 96

condition, and the condition was still pending at the Concepts

time the new law went into effect, the provisions of the
old Civil Code would still apply. In the case of Perez v. Palomar, it was significantly noted
that in a quasi-contract where no express consent is given
by the other party, the “consent needed” in a contract is
provided by law through presumption (doctrine of
2. Compliance in good faith presumptive consent).
• This provision combines two concepts of Roman In contracts there must be a meeting of minds but in
Law- equity or good faith (ius gentium) and strict quasi-contracts, that consent is not present. By virtue of
compliance by the parties (ius chinile) doctrine of presumptive consent, there is an obligation
• Compliance in good faith means performance not because of contract by law.
in accordance with the stipulations, clauses,
terms, and conditions of the contract. It is also a Common types of quasi-contracts:
well-settled principle that the law will not relieve
1. Negotiorum Gestio or Officious
parties from the effects of an unwise, foolish or
Management
disastrous agreement they entered into with all
Article 2144. Whoever voluntarily takes charge of the
the required formalities and with full awareness
agency or management of the business or property of
of what they were doing. Courts have no power
another, without any power from the latter, is obliged
to relieve them from obligations they voluntarily to continue the same until the termination of the affair
assumed, simply because their contracts turn out and its incidents, or to require the person concerned to
to be disastrous deals or unwise investments. substitute him, if the owner is in a position to do so.
Neither the law nor the courts will extricate them
from an unwise or undesirable contract which
they entered into with all the required formalities
and with full knowledge of its consequence.
(Diampoc vs Buenaventura, March 19, 2019)
2. Solutio Indebiti or Payment by Mistake
Article 2154. If something is received when there is
(3) Obligations Arising From no right to demand it, and it was unduly delivered
Quasi-Contracts through mistake, the obligation to return it arises.
Article 1160. Obligations derived from quasi-contracts
shall be subject to the provisions of Chapter 1, Title
XVII, of this Book. How do we presumed that there was mistake?

Article 2163. It is presumed that there was a mistake

Definition: in the payment if something which had never been due
or had already been paid was delivered; but he from
Article 2142. Certain lawful, voluntary and unilateral whom the return is claimed may prove that the delivery
acts give rise to the juridical relation of quasi-contract was made out of liberality or for any other just cause.
to the end that no one shall be unjustly enriched or
benefited at the expense of another.
(1) Negotiorum Gestio
Article. 2143. The provisions for quasi-contracts in
Article 2144. This juridical relation does not arise in
this Chapter do not exclude other quasi-contracts
either of these instances:
which may come within the purview of the preceding
article.
1. When the property or business is not
neglected or abandoned;
This is a contractual relation but the provisions of articles
Purpose of quasi-contract:
1317, 1403, No.1 and 1404 regarding unauthorized
This is to ensure that no one will be unjustly benefitted contracts shall govern.
at the expense of another.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 31 of 96

2. If in fact the manager has been tacitly 2. pay the damages which through his fault
authorized by the owner. or negligence may be suffered by the owner of
This is a contract of agency, and the rules on agency in the property or business under management.
Title X of this Book shall be applicable. The courts may, however, increase or moderate the
indemnity according to the circumstances of each case.
General requisites:
1. A person (officious manager or gestor) voluntarily
assumes the management or agency of the
business or property of another Obligation of the Owner of the Property
2. Property was neglected or abandoned
Article 2150. Although the officious management may
3. There is no authorization from the owner whether
not have been expressly ratified, the owner of the
express or implied
property or business who enjoys the advantages of the
4. Assumption of management and agency is in
good faith same shall
Illustration: 1. be liable for obligations incurred in his
interest, and
2. shall reimburse the officious manager for
the necessary and useful expenses and for the
damages which the latter may have suffered in
the performance of his duties.
The same obligation shall be incumbent upon him when
Say for example there is a property that has sheep and the management had for its purpose the prevention of
you own the other property that has a lonely carabao. an imminent and manifest loss, although no benefit
Then the property with sheep experienced heavy rainfall may have been derived.
but the other property due to its remote location, it did
Negotiorum Gestio v. Article 23 of the NCC
not experience heavy rainfall. The lives of the sheep are
now endangered due to the storm. So what do you do Article 23. Even when an act or event causing
knowing that the property which you do not owned and damage to another's property was not due to the fault
the sheep are neglected and abandoned? or negligence of the defendant, the latter shall be
liable for indemnity if through the act or event he was
As a good Samaritan, you come into the picture and you benefited.
know how to herd sheep you then transfer the sheep to
your property. In effect you save the sheep. Negotiorum Gestio Article 23
Both provisions are based on the avoidance of unjust
So the question is what is your right? You voluntarily enrichment at the expense of another person
assume the right and therefor you are the gestor. Gestor voluntarily No voluntary assumption
assumes the management of management, but there
So the owner of the sheep was benefitted but at your or agency of the business is an act or event causing
expense since all your plants were all gone after being or property of another in damage to another’s
grazed just to ensure that you secure the welfare of the good faith property without fault of
sheep. the person liable
Gestor will be reimbursed Person liable will
So what right do you have as an officious manager and
whether the owner of the reimburse the injured
what concomitant obligation do you also have?
property was benefitted or party if he is benefitted
not through the act or event
Obligations in Negotiorum Gestio
at the expense of the
Obligation of the Officious Manager injured party
Property was neglected or Not a requirement
Article 2145. The officious manager shall abandoned
The liability of the owner The liability of the owner
1. perform his duties with all the diligence of a of the property to the of the property is incurred
good father of a family, and gestor is incurred only when there is a
regardless of the benefit benefit through the act
to him or event

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 32 of 96

Article 22. Every person who through an act of

Negotiorum Gestio v. Implied Contract performance of another, or any other means,
An implied contract acquires or comes into possession of something at
the expense of the latter without just or legal
- is defined as a contract which arises by legal ground, shall return the same to him.
interference and upon principles of reason and
justice from certain facts
- must depend on substance for its existence, and Solutio indebiti Accion in rem verso
it cannot arise from nothing, such as conjecture Both provisions are based on the avoidance of
or a possibility; in other words, there must be unjust enrichment at the expense of another
some act or conduct of the party sought to be person
bound says or does. They are created by Payment was made There is no mistake
circumstances. through mistake or error in order that accion in
in action rem verso may
- Arises where the intention of the parties is not
prosper, the essential
expressed, but an agreemen,t in fact, creating an
elements must be
obligation, is implied or presumed from their acts,
present:
or, as it has been otherwise stated, where there (1) That the
are circumstances which, according to the defendant has
ordinary course of dealing and the common been enriched
understanding of men, show a mutual intent to (2) That the plaintiff
contract (Swedish Asia v. Manila Port Service, has suffered a loss
October 26, 1968) (3) That the
enrichment of the
Negotiorum Gestio Implied contract defendant is
Consent is not Consent between without just or
required, the both parties is legal ground
obligation is based on required, albeit (4) That the plaintiff
the unilateral act of implied, to incur the has no other
the gestor obligation action based on
contract, quasi-
Basis: to the end that Basis: will of the contract, crime or
there be no unjust parties quasi-delict (UP v.
enrichment Philab Industries
Inc, Sept. 29,
Source: quasi- Source: contract 2004)
contract The obligation to return is An accion in rem verso
a principal obligation and is considered merely
(2) Solutio Indebiti based on a quasi- an auxiliary action,
contract available only when
General Requisites:
there is no other
remedy on contract,
1. Payment of money from delivery of a
quasi-contract, crime,
thing was made from one another, and quasi-delict. If
when there is no juridicial relation there is no obtainable
between the parties action under any other
2. The latter has no right to demand it, institution of positive
making the delivery undue or without law, that action must
legal justification be resorted to, and the
3. Mistake on the part of the payor or the principle of accion in
one who makes delivery, and not rem verso will not lie.
through his liberality Shinryo (Philippines)
Company Inc v. RRN,
Solutio indebiti v. Accion in rem verso Oct. 20, 2010)

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 33 of 96

Other Quasi-Contracts him, unless the service has been rendered out of pure
generosity.
For support and funeral expense
Article 2168. When during a fire, flood, storm, or
Article 2164. When, without the other calamity, property is saved from destruction by
knowledge of the person obliged to give another person without the knowledge of the owner,
support, it is given by a stranger, the latter the latter is bound to pay the former just
shall have a right to claim the same from compensation.
the former, unless it appears that he gave
it out of piety and without intention of Article 2174. When in a small community a
being repaid. nationality of the inhabitants of age decide upon a
measure for protection against lawlessness, fire, flood,
Article 207. When the person obliged to storm or other calamity, any one who objects to the
support another unjustly refuses or fails to plan and refuses to contribute to the expenses but is
give support when urgently needed by the benefited by the project as executed shall be liable to
latter, any third person may furnish pay his share of said expenses.
support to the needy individual, with right
of reimbursement from the person obliged
to give support. This Article shall Others
particularly apply when the father or
mother of a child under the age of majority Article 2169. When the government, upon the failure
unjustly refuses to support or fails to give of any person to comply with health or safety
support to the child when urgently regulations concerning property, undertakes to do the
needed. necessary work, even over his objection, he shall be
liable to pay the expenses.
Article 2165. When funeral expenses are
borne by a third person, without the Article 2175. Any person who is constrained to pay
knowledge of those relatives who were the taxes of another shall be entitled to reimbursement
obliged to give support to the deceased, from the latter.
said relatives shall reimburse the third
person, should the latter claim
reimbursement. (1894a)

Article 2166. When the person obliged to 3. Articles 1106-1138

support an orphan, or an insane or other
indigent person unjustly refuses to give
support to the latter, any third person may
OBLIGATIONS ARISING FROM CRIMES
furnish support to the needy individual,
with right of reimbursement from the OR DELICTS
person obliged to give support. The
provisions of this article apply when the
father or mother of a child under eighteen Article 1161. Civil Obligations arising from criminal
years of age unjustly refuses to support offenses shall be governed by:
him.
1. The penal laws – What civil liability (ex-delicto)
comprises of?
2. Subject to the provisions of article 2177 –
For calamities and accidents Article 2177. Responsibility for fault or negligence
under the preceding article [Article 2176] is
entirely separate and distinct from the civil
Article 2167. When through an accident or other liability arising from negligence under the Penal
cause a person is injured or becomes seriously ill, and Code. But plaintiff cannot recover damages twice
he is treated or helped while he is not in a condition
for the same act or omission of the defendant. (n)
to give consent to a contract, he shall be liable to pay
for the services of the physician or other person aiding – what is the limitation to the claim?

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 34 of 96

- Regardless how the criminal offenses arise Article 104. What is included in civil liability. - The
for so long as they are sanction by the Penal civil liability established in Articles 100, 101, 102, and
code that is a source of an obligation 103 of this Code includes:
separate and distinct from the source of the 1.Restitution Article 105. Restitution;
civil liability in Article 2176 How made. - The restitution
- Limitation is applicable both ways: quasi- of the thing itself must be
delict & civil liability (ex delicto) made whenever possible,
with allowance for any
3. the pertinent provisions of Chapter 2,
deterioration, or diminution
Preliminary Title, on Human Relations, - of value as determined by
how does one become liable? the court.
4. Title XVIII of this Book, regarding damages.
(1092a)- what is the nature of damages? The thing itself shall be
restored, even though it be
APPLICABILITY found in the possession of a
third person who has
✓ Definition. Civil indemnity ex delicto, as a form acquired it by lawful means,
of monetary restitution or compensation to saving to the latter his
the victim, attaches upon finding of criminal action against the proper
liability because "[e]very person criminally liable person, who may be liable
for a felony is also civilly liable" (People v. to him.
Divinagracia, Sr., G.R. No. 207765, [July 26,
2017]) This provision is not
- Not the conviction of crimes applicable in cases in which
- Civil liability can be a source of obligation the thing has been acquired
relating to crimes but not all crimes can be by the third person in the
manner and under the
the source of civil liability ex delicto
requirements which, by law,
bar an action for its
✓ The civil liability ex delicto presumes crimes that recovery.
have a private injured party.
Examples of crimes with no private injured party:
2.Reparation of the Article 106. Reparation;
1. Violation of Dangerous Drugs Act: Thus,
damaged caused How made. - The court shall
upon Toukyo's death pending appeal of his determine the amount of
conviction, the criminal action is extinguished damage, taking into
inasmuch as there is no longer a defendant to consideration the price of
stand as the accused. Notably, there is no civil the thing, whenever
liability that arose from this case, there possible, and its special
being no private complainant to begin with. sentimental value to the
(People v. Toukyo y Padep, G.R. No. 225593, injured party, and
[March 20,2017]) reparation shall be made
2. CRIME AGAINST NATIONAL SECURITY, examples accordingly.
are crimes of treason, rebellion.
3. Illegal possession of firearms 3.indemnification for Article
consequential damages 107. Indemnification; What
is included. -
Indemnification for
CIVIL LIABILITIES EX DELICTO (PENAL
consequential damages
LAWS) shall include not only those
caused the injured party,
but also those suffered by
RPC Article 100. Civil liability of a person guilty of
his family or by a third
felony. - Every person criminally liable for a felony is also
person by reason of the
civilly liable. crime.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 35 of 96

However, the civil action based on delict may be

deemed extinguished if there is a finding on the final
judgment in the criminal action that the act or omission
from which the civil liability may arise did not exist or
where the accused did not commit the acts or omission
LIABILITIES EX-DELICTO (HUMAN imputed to him.
RELATIONS)

ARTICLE 29. When the accused in a criminal prosecution ARTICLE 30. When a separate civil action is brought
is acquitted on the ground that his guilt has not been to demand civil liability arising from a criminal offense,
proved beyond reasonable doubt, a civil action for and no criminal proceedings are instituted during the
damages for the same act or omission may be instituted. pendency of the civil case, a preponderance of
Such action requires only preponderance of evidence. evidence shall likewise be sufficient to prove the act
Upon motion of the defendant, the court may require the complained of
plaintiff to file a bond to answer for damages in case the
complaint should be to be malicious.

If in a criminal case the judgment of acquittal is based ✓ What Article 30 recognizes is an alternative and
upon reasonable doubt, the court shall so declare. In the separate civil action which may be brought to
absence of any declaration to that effect, it may be demand civil liability arising from a criminal
inferred from the text of the decision whether or not the offense independently of any criminal
acquittal is due to that ground. action. In the event that no criminal proceedings
are instituted during the pendency of the said civil
JUDGMENT IN CRIMINAL CASES
case, the quantum of evidence needed to
prove the criminal act will have to be that which
• Conviction - accused committed a felony or is compatible with civil liability and that is
crime punished by law + guilt is proved beyond preponderance of evidence and not proof of guilt
reasonable doubt. beyond reasonable doubt. (People v. Bayotas y
- the must be moral certainty to Cordova, G.R. No. 102007, [September 2, 1994])
incur civil liability. ✓ Quantum of Proof required in certain cases:
• Acquittal:
1. Preponderance of Evidence in civil cases -
means that the evidence adducted by one side is,
as a whole, superior to or has greater weight than
that of the other. It means evidence which is
3. There was a crime committed, the accused may have more convincing to the court as worthy of belief
committed the crime but his guilt cannot be proved than that which is offered in opposition thereto.
beyond reasonable doubt. (Cruz v. Gay, A.C. No. 11832 (Notice), [January
21, 2019])
DAYAP V. SENDIONG [JANUARY 29, 2009]
The acquittal of the accused does not automatically 2. Proof beyond reasonable doubt in criminal
preclude a judgment against him on the civil aspect of cases - means a moral certainty that the accused
the case. The extinction of the penal action does not is guilty; the burden of proof rests upon the
carry with it the extinction of the civil liability prosecution. (Monroy y Mora v. People, G.R. No.
where: 235799, [July 29, 2019])
a) the acquittal is based on reasonable doubt
CIVIL LIABILITIES EX DELICTO (RULES
as only preponderance of evidence is required;
b) the court declares that the liability of the OF COURT)
accused is only civil; and
c) the civil liability of the accused does not arise
➢ Sec. 1 (a) of Rule 111 of the Rules of Court:
from or is not based upon the crime of which
the accused is acquitted. Institution of criminal and civil actions.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 36 of 96

RULE: When a criminal action is instituted, the civil action action absolving the defendant from civil
for the recovery of civil liability arising from the offense liability is not a bar to a criminal action against
charged shall be deemed instituted with the criminal the defendant for the same act or omission
action. subject of the civil action.
PILAR JOAQION, ET AL., VS. FELIX
XPN: unless the offended party:
ACINETO, ET AL. [OCTOBER 31, 1964]
1. waives the civil action The issue in the case is: May an employee’s
primary civil liability for crime and his
2. reserves the right to institute it separately or
employer’s subsidiary liability therefor be
- When? The reservation of the right to institute proved in a separate civil action even while the
separately the civil action shall be made before the criminal case against the employee is still
prosecution starts presenting its evidence and under pending?
➢ No. The Revised Penal Code provides in turn
circumstances affording the offended party a reasonable
that "every person criminally liable for a felony
opportunity to make such reservation.
is also civilly liable" and that in default of the
3. institutes the civil action prior to the criminal action. persons criminally liable, employers, teachers,
persons and corporations engaged in any kind
4. What is instituted is an independent civil action (Art.
of industry shall be civilly liable for felonies
32, 33, 34) or based on another source of obligation (Art. committed by their servants, pupils, workmen,
31) apprentices or employees in the discharge of
RULE 111. Section 1. Institution of criminal and civil their duties.
actions. — (a) When a criminal action is instituted, the civil
As this Court held in City of Manila v. Manila
action for the recovery of civil liability arising from the
Electric Co., 52 Phil. 586
offense charged shall be deemed instituted with the criminal
". . . The Penal Code authorizes the
action unless the offended party waives the civil action, determination of subsidiary liability. The Civil
reserves the right to institute it separately or institutes the Code negatives its applicability by providing
civil action prior to the criminal action. that civil obligations arising from crimes or
misdemeanors shall be governed by the
The reservation of the right to institute separately the civil provisions of the Penal Code. In other words,
action shall be made before the prosecution starts presenting the Penal Code affirms its jurisdiction while the
its evidence and under circumstances affording the offended Civil Code negatives its jurisdiction."
party a reasonable opportunity to make such reservation. It is now settled that for an employer to be
subsidiarily liable, the following requisites must
When the offended party seeks to enforce civil liability be present: (1) That an employee has
against the accused by way of moral, nominal, temperate, or committed a crime in the discharge of his
exemplary damages without specifying the amount thereof duties; (2) that said employee is insolvent and
in the complaint or information, the filing fees thereof shall has not satisfied his civil liability; (3) that the
constitute a first lien on the judgment awarding such employer is engaged in some kind of industry.
damages. (1 Padilla, Criminal Law, Revised Penal Code
794 [1964])
Where the amount of damages, other than actual, is Without the conviction of the employee, the
specified in the complaint or information, the corresponding employer cannot be subsidiary liable. Thus,
filing fees shall be paid by the offended party upon the filing should he choose to prosecute his action under Article
thereof in court. 100 of the Penal Code, he can hold the employer
subsidiarily liable only upon prior conviction of
Except as otherwise provided in these Rules, no filing fees the employee. While a separate and independent civil
shall be required for actual damages. action for damages may be brought against the
employee under Article 33 of the Civil Code, no such
No counterclaim, cross-claim or third-party complaint may be action may be filed against the employer on the latter's
filed by the accused in the criminal case, but any cause of subsidiary civil liability because such liability is
action which could have been the subject thereof may be governed not by the Civil Code but by the Penal Code,
litigated in a separate civil action. (1a) under which conviction of the employee is a
condition sine qua non for the employer's
➢ Rule 111. Section 5. Judgment in civil action subsidiary liability. If the court trying the employee's
not a bar. — A final judgment rendered in a civil
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 37 of 96

liability adjudges the employee liable, but the court which are more than
trying the criminal action acquits the employee, the nominal but less than
subsequent insolvency of the employee cannot make compensatory damages,
the employer subsidiary liable to the offended party or may be recovered when
to the latter's heirs. the court finds that some
pecuniary loss has been
suffered but its amount
cannot, from the nature
CIVIL LIABILITIES EX DEFACTO of the case, be provided
(DAMAGES) with certainty.
(5) Liquidated Art. 2226. Liquidated
damages are those
agreed upon by the
parties to a contract, to
Art. 2197. Damages may be: be paid in case of breach
thereof.
Art. 2199. Except as (6) Exemplary or Art. 2229. Exemplary or
(1) Actual or provided by law or by corrective corrective damages are
compensatory stipulation, one is entitled imposed, by way of
to an adequate example or correction for
compensation only for the public good, in
such pecuniary loss addition to the moral,
suffered by him as he has temperate, liquidated or
duly proved. Such compensatory damages.
compensation is referred
to as actual or
compensatory damages.
(2) Moral Art. 2217. Moral
damages include physical “AMEN” - may be awarded if a person committed an
suffering, mental act constituted a crime or delict
anguish, fright, serious
A- Actual M- Moral E-
anxiety, besmirched
reputation, wounded Exemplary N- Nominal
feelings, moral shock,
social humiliation, and
ACTUAL DAMAGES:
similar injury. Though
incapable of pecuniary ➢ Art. 2202. In crimes and quasi-delicts, the
computation, moral defendant shall be liable for all damages which
damages may be are the natural and probable consequences of the
recovered if they are the act or omission complained of. It is not necessary
proximate result of the that such damages have been foreseen or could
defendant's wrongful act have reasonably been foreseen by the defendant.
for omission. ➢ Art. 2204. In crimes, the damages to be
(3) Nominal Art. 2221. Nominal adjudicated may be respectively increased or
damages are adjudicated lessened according to the aggravating or
in order that a right of mitigating circumstances.
the plaintiff, which has ➢ Art. 2206. The amount of damages for death
been violated or invaded caused by a crime or quasi-delict shall be at least
by the defendant, may be three thousand pesos, even though there may
vindicated or recognized, have been mitigating circumstances. In addition:
and not for the purpose
of indemnifying the (1) The defendant shall be liable for the loss of
plaintiff for any loss the earning capacity of the deceased, and the
suffered by him. indemnity shall be paid to the heirs of the
(4) Temperate or Art. 2224. Temperate or latter; such indemnity shall in every case be
moderate; moderate damages, assessed and awarded by the court, unless
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 38 of 96

the deceased on account of permanent ➢ Art. 2219. Moral damages may be

physical disability not caused by the recovered in the following and analogous
defendant, had no earning capacity at the cases:
time of his death;
(1) A criminal offense resulting in physical
(2) If the deceased was obliged to give support injuries;
according to the provisions of Article 291, the (2) Quasi-delicts causing physical injuries;
recipient who is not an heir called to the (3) Seduction, abduction, rape, or other
decedent's inheritance by the law of testate lascivious acts;
or intestate succession, may demand support (4) Adultery or concubinage;
from the person causing the death, for a (5) Illegal or arbitrary detention or arrest;
period not exceeding five years, the exact (6) Illegal search;
duration to be fixed by the court; (7) Libel, slander or any other form of
defamation;
(3) The spouse, legitimate and illegitimate The parents of the female seduced, abducted,
descendants and ascendants of the deceased raped, or abused, referred to in No. 3 of this
may demand moral damages for mental article, may also recover moral damages.
anguish by reason of the death of the NOMINAL DAMAGES:
deceased.
➢ Art. 2222. The court may award nominal
➢ Art. 2208. In the absence of stipulation, damages in every obligation arising from any
attorney's fees and expenses of litigation, other source enumerated in Article 1157, or in every
than judicial costs, cannot be recovered, except: case where any property right has been invaded.
EXEMPLARY DAMAGES:
(1) When exemplary damages are awarded; ➢ Art. 2230. In criminal offenses, exemplary
(2) When the defendant's act or omission has damages as a part of the civil liability may be
compelled the plaintiff to litigate with third imposed when the crime was committed with one
persons or to incur expenses to protect his or more aggravating circumstances. Such
interest; damages are separate and distinct from fines and
(3) In criminal cases of malicious prosecution shall be paid to the offended party.
against the plaintiff;
(4) In case of a clearly unfounded civil action or
EXTINGUISHMENT OF CIVIL LIABILITY
proceeding against the plaintiff; EX DELICTO
(5) Where the defendant acted in gross and
evident bad faith in refusing to satisfy the
Under the revised Penal Code:
plaintiff's plainly valid, just and demandable
claim; ➢ Article 112. Extinction of civil liability. - Civil
(6) In actions for legal support; liability established in Articles 100, 101, 102, and
(7) In actions for the recovery of wages of
103 of this Code shall be extinguished in the
household helpers, laborers and skilled workers;
same manner as obligations, in accordance
(8) In actions for indemnity under workmen's
compensation and employer's liability laws; with the provisions of the Civil Law.
(9) In a separate civil action to recover civil ➢ Article 113. Obligation to satisfy civil liability. -
liability arising from a crime; Except in case of extinction of his civil liability as
(10) When at least double judicial costs are provided in the next preceding article the
awarded; offender shall continue to be obliged to satisfy
(11) In any other case where the court deems it the civil liability resulting from the crime
just and equitable that attorney's fees and committed by him, notwithstanding the fact that
expenses of litigation should be recovered. he has served his sentence consisting of
deprivation of liberty or other rights, or has not
➢ Art. 2211. In crimes and quasi-delicts, interest been required to serve the same by reason of
as a part of the damages may, in a proper case, amnesty, pardon, commutation of sentence or
be adjudicated in the discretion of the court.
any other reason.
MORAL DAMAGES:
➢ QUESTION: Does death extinguishes the civil
liability ex delicto?

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 39 of 96

liability directly arising from and based solely on the

crime committed.
EFFECT OF DEATH ON CIVIL LIABILITY
EX DELICTO
PEOPLE V. SAYO Y REYES, [APRIL 10, 2019]
1. Before Judgment- the death accused after
arrangement and during the pendency of the criminal The rules on the effect of the death of the accused on
action shall extinguish the civil liability arising from the civil liability pending appeal are summarized in
the delict. However, the independent civil action People v. Bayotas:
instituted or which thereafter is instituted to enforce 1. Death of the accused pending appeal of his
liability arising from other sources of obligation may be conviction extinguishes his criminal liability as well as
continued against the estate or legal representative the civil liability based solely thereon. As opined by
of the accused after proper substitution or against said
Justice Regalado, in this regard, "the death of the
estate, as the case may be. (Rule 111, Sec. 4 of the Rules
accused prior to final judgment terminates his criminal
of Court)
liability and only the civil liability directly arising from
2. After Judgment, pending appeal before finality and based solely on the offense committed, i.e., civil
of judgment- the death of the accused-appellant, thus, liability ex delicto in senso strictiore."
extinguished his criminal liability, as well as his civil 2. Corollarily, the claim for civil liability survives
liability directly arising from and based solely on the crime notwithstanding the death of accused, if the
committed. same may also be predicated on a source of
PEOPLE OF THE PHILIPPINES, VS. DEMOCRITO obligation other than delict Article 1157 of the Civil
PARAS [OCTOBER 22, 2014] Code enumerates these other sources of obligation
Under Article 89, paragraph 1 of the Revised Pena; from which the civil liability may arise as a result of
Code, as amended, the death of an accused the same act or omission:
pending his appeal extinguishes both his a) Law
criminal and civil liability ex delicto. Said provision b) Contracts
reads: c) Quasi-contracts
Art. 89. How criminal liability is totally extinguished. – d) x x x
Criminal liability is totally extinguished: e) Quasi-delicts
1. By the death of the convict, as to the personal Where the civil liability survives, as explained in
penalties; and as to pecuniary penalties, Number 2 above, an action for recovery therefor may
liability therefore is extinguished only when the be pursued but only by way of filing a separate civil
death of the offender occurs before final action…This separate civil action may be enforced
judgment[.] cites Bayotas ruling… either against the executor/administrator or the estate
Thus, upon the death of the accused pending appeal of of the accused, depending on the source of obligation
his conviction, the criminal action is extinguished upon which the same is based as explained above.
inasmuch as there is no longer a defendant to stand as
the accused; the civil action instituted therein for the
3. After Final Judgment, before execution- civil
recovery of civil liability ex delicto is ipso facto
liability ex delicto remains, but filed in a separate action
extinguished, grounded as it is on the criminal action.
as a claim against the estate of the deceased. Execution
In this case, when the accused-appellant died on
may issue or be enforced against his executor or
January 24, 2013, his appeal to this Court was still
administrator or successor in interest, if the judgment be
pending. The Decision dated June 4, 2014 was
for the recovery of real or personal property. (Sec. 7, Rule
thereafter promulgated as the Court was not
39 of the Rules of Court)
immediately informed of the accused-appellant's death.
The death of the accused-appellant herein, thus,
extinguished his criminal liability, as well as his civil

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 40 of 96

OBLIGATIONS ARISING FROM QUASI has become much more supple and adaptable than the
Anglo-American law on torts." (Tolentino, Commentaries
DELICTS
and Jurisprudence on the Civil Code of the Philippines, vo.
1, 1985 ed., 72).
Article 1162. Obligations derived from quasi-delicts
shall be governed by the provisions of Chapter 2, Title Article 2176 is not an all-encompassing enumeration of all
XVII of this Book, and special laws. (1093a) actionable wrongs which can give rise to the liability for
damages. Under the Civil Code, acts done in violation of
Article 19, 20, and 21 will also give rise to damages.

• Article 19. Every person must, in the exercise of

his rights and in the performance of his duties,
act with justice, give everyone his due, and
Definitions and Limitations: observe honesty and good faith.

➢ Art. 2176. Whoever by act or omission causes

• Article 20. Every person who, contrary to law,
damage to another, there being fault or
wilfully or negligently causes damage to another,
negligence, is obliged to pay for the damage
shall indemnify the latter for the same.
done. Such fault or negligence, if there is no
pre-existing contractual relation between the
• Article 21. Any person who wilfully causes loss
parties, is called a quasi-delict and is governed
or injury to another in manner that is contrary to
by the provisions of this Chapter. (1902a)
morals, good customs or public policy shall
➢ Art. 2177. Responsibility for fault or negligence
compensate the latter for the damage.
under the preceding article is entirely separate
[Article 19], known to contain what is commonly referred
and distinct from the civil liability arising from
to as the principle of abuse of rights, sets certain
negligence under the Penal Code. But the
standards which must be observed not only in the
plaintiff cannot recover damages twice for the
exercise of one's rights, but also in the performance of
same act or omission of the defendant. (n)
one's duties.
Quasi-delict, as defined in Article 2176 of the Civil Code,
(which is known in Spanish legal treaties as culpa Case law states that "when a right is exercised in a
aquilana, culpa extra-contractual or cusai delitos) is manner which does not conform with the norms
homologous but not identical to tort under the common enshrined in Article 19 and results in the damage to
law, which includes not only negligence, but also another, a legal wrong is thereby committed for which the
intentional criminal acts, such as assault and battery, false wrongdoer must be held responsible.
imprisonment, and deceit. (Coca-Cola Bottlers Phil. Inc. v.
Court of Appeals, G.R. No. 110295, [October 18, 1993]) But while Article 19 lays down a rule of conduct for the
government of human relations and for the maintenance
However, in cases of special torts, willful acts may be of social order, it does not provide a proper remedy for its
made basis of an action for damages. "In the general violation. Generally, an action for damages under either
scheme of the Philippines legal system envisioned by the Article 20 or Article 21 would [then] be proper." Between
Commission responsible for drafting the New Civil Code, these two provisions as worded, it is Article 20 which
intentional and malicious acts, with certain exemptions, applies to both willful and negligent acts that are done
are to be governed by the Revised Penal Code while contrary to law. On the other hand, Article 21 applies only
negligent acts or omission are to be covered by Article to willful acts done contra bonos mores.
2176 of the Civil Code. In between these opposite
spectrums are injurious acts which, in the absence of
Article 21, would have been beyond redress. Thus, Article ST. MARTIN POLYCLINIC, INC. V. LWV
21 fills the vacuum. It is even postulated that together CONSTRUCTION COPR. [DECEMBER 4, 2017]
with Article 19 and 20 of the Civil Code, Article 21 has In the Alano case, Justice Leonen aptly elaborated on
greatly broadened the scope of the law on civil wrongs; it the distinctive applications of Articles 19, 20 and 21,

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 41 of 96

which are general provisions on human relations, vis- CONCEPTS OF VICARIOUS LIABILITY
a-vis Article 2176, which particularly governs quasi-
delicts: Article 2180. The obligation imposed by article 2176 is
demandable not only for one's own acts or omissions, but
Article 19 is the general rule which governs the conduct also for those of persons for whom one is responsible.
of human relations. By itself, it is not the basis of an
actionable tort. Article 19 describes the degree of care ✓ The father and, in case of his death or incapacity,
required so that an actionable tort may arise when it is
the mother, are responsible for the damages
alleged together with Article 20 or Article 21.
caused by the minor children who live in their
Article 20 concerns violations of existing law as company.
basis for an injury. It allows recovery should the act ✓ Guardians are liable for damages caused by the
have been willful or negligent. Willful may refer to the minors or incapacitated persons who are under
intention to do the act and the desire to achieve the their authority and live in their company.
outcome which is considered by the plaintiff in tort ✓ The owners and managers of an establishment or
action as injurious. Negligence may refer to a situation
enterprise are likewise responsible for damages
where the act was consciously done but without
intending the result which the plaintiff considers as caused by their employees in the service of the
injurious. branches in which the latter are employed or on
the occasion of their functions.
Article 21, on the other hand, concerns injuries that ✓ Employers shall be liable for the damages caused
may be caused by acts which are not necessarily by their employees and household helpers acting
proscribed by law. This article requires that the act be within the scope of their assigned tasks, even
willful, that is, that there was an intention to do the act though the former are not engaged in any
and a desire to achieve the outcome. In cases under
business or industry.
Article 21, the legal issues revolve around whether such
outcome should be considered a legal injury on the part ✓ The State is responsible in like manner when it
of the plaintiff or whether the commission of the act acts through a special agent; but not when the
was done in violation of the standards of care required damage has been caused by the official to whom
in Article 19. the task done properly pertains, in which case
what is provided in article 2176 shall be
Article 2176 covers situations where an injury applicable.
happens through an act or omission of the defendant. ✓ Lastly, teachers or heads of establishments of
When it involves a positive act, the intention to commit
arts and trades shall be liable for damages caused
the outcome is irrelevant. The act itself must not be
a breach of an existing law or a pre-existing by their pupils and students or apprentices, so
contractual obligation. What will be considered is long as they remain in their custody.
whether there is "fault or negligence” attending the
commission of the act which necessarily leads to the The responsibility treated of in this article shall cease
outcome considered as injurious by the plaintiff. The when the persons herein mentioned prove that they
required degree of diligence will then be assessed in observed all the diligence of a good father of a
relation to the circumstances of each and every family to prevent damage. (1903a)
case. (Emphases and underscoring supplied)
-Responsibility for damages based on negligence is
Thus, with respect to negligent acts or omissions, it SOLIDARY.
should therefore be discerned that Article 20 of the
Civil Code concerns "violations of existing law as
basis for an injury", whereas Article 2176 applies REQUISITES:
when the negligent act causing damage to
another does not constitute "a breach of an In actions based on quasi-delicts, before the person
existing law or a pre-existing contractual injured can recover damages from the defendant, it is
obligation." necessary that he must be able to prove the following:

1. the fault or negligence of the defendant;

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 42 of 96

2. the damage suffered or incurred by the plaintiff; sufficiently probable to warrant his foregoing
and conduct or guarding against its consequences.
(Picart v. Smith, Jr., G.R. No. L-12219 [March 15, 1918])
3. the relation of cause and effect between the fault
or negligence of the defendant and the damage II. DAMAGE SUFFERED OR INCURRED BY THE
incurred by the plaintiff. PLAINTIFF

➢ The term "damage" refers to the sum of money

which the law awards or imposes by the way of
I. FAULT OR NEGLIGENCE OF THE DEFENDANT pecuniary compensation, recompense, or
satisfaction for an injury done or a wrong
The test by which to determine the existence of sustained as a consequence of either a breach
negligence in a particular case may be stated as follows: of a contractual; obligation or a tortuous or
illegal act;
➢ Did the defendant in doing the alleged negligent
➢ The term "damage" pertains to the actionable
act use that person would have used in the same
loss, hurt or harm which results from the
situation? If not, then he is guilty of negligence.
unlawful act, omission or negligence of another.
➢ The law here in effect adopts the standard ➢ In fine, damages are the amounts recoverable
supposed to be supplied by the imaginary or that which can be awarded for the damage
conduct of the discreet paterfamilias of the done or sustained (People vs. Dianos, 297 SCRA
Roman law. The existence of negligence in a 191).
given case is not determined by reference to the
personal judgment of the actor in the situation III. RELATION OF CASE AND EFFECT
before him. The law considers what would be
➢ Proximate cause is that cause which, in natural
reckless, blameworthy, or negligent in the man of
and continuous sequence, unbroken by any
ordinary intelligence and prudence and
efficient intervening cause, produces the injury
determines liability by that.
and without which the result would not have
The question as to what would constitute the occurred.
conduct of a prudent man in a given situation must of TYPES OF NEGLIGENCE, FAULT OR CULPA
course be always determined in the light of human Culpa Culpa Culpa
experience and in view of the facts involved in the Aquiliana Contractual Criminal
particular case. Abstract speculations cannot here be of Civil Negligence Criminal
much value but this much can be profitably said: Negligence
Reasonable men govern their conduct by the The fault or The fault or Under Article
circumstances which are before them or known to them. negligence of a negligence of 365 of the
They are not, and are not supposed to be, omniscient of person, who, the obligor by Revised Penal
the future. Hence they can be expected to take care only because of the virtue of which Code, criminal
when there is something before them to suggest or warn omission of the he is unable to negligence "is
of danger. diligence which perform his treated as a
is requires by obligation mere quasi
➢ Could a prudent man, in the case under the nature of arising from a offense, and
consideration, foresee harm as a result of the the obligation pre-existing dealt with
course actually pursued? If so, it was the duty of and which must contact because separately from
the actor to take precautions to guard against correspond with of the omission willful offenses.
that harm. Reasonable foresight of harm, the of the diligence It is not a
followed by ignoring of the suggestion born of circumstances of which is question of
the persons, of required by the classification or
this prevision, is always necessary before
time and of the nature of the terminology. In
negligence can be held to exist.
place, causes obligation and intentional
Stated in these terms, the proper criterion for determining damage to corresponds crimes, the act
the existence of negligence in a given case is this: another, there with the itself is
Conduct is said to be negligent when a prudent being no pre- circumstances of punished; in
man in the position of the tortfeasor would have existing relation the persons, of negligence or
foreseen that an effect harmful to another was imprudence,
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 43 of 96

between the the time and of what is CULPA AQUILIANA V. CULPA CRIMINAL
parties. the place. principally
penalized is the
mental attitude
or condition BASIS CULPA CULPA CRIMINAL
behind the act, AQUILIANA
the dangerous Legal basis There can be a There can be no
recklessness, of liability quasi-delict as crime unless
lack of care or long as there is there is a law
foresight, the fault or clearly punishing
imprudencia negligence the act.
punible. (Sevilla resulting in
v. People, G.R. damage or injury
No. 194390, to another. It is
[August 13, broader in scope
2014]) than crime.
Here, the Here, the Here, the Criminal Criminal intent is Reckless
negligence is a negligence is the negligence is a Intent not necessary for imprudence is
violation of the cause for a violation of the quasi delict to required, and not
standard of care breach of a pre- penal laws, and exist. Fault or simple
which the law existing considered as negligence negligence.
requires contract. an offense without intent will
between against the suffice.
persons state. Nature of Right violated is a Right violated is
Right private right. a public one.
Violated Quasi delict is a Crime is a wrong
ILLUSTRATION: wrongful act against the State.
against a private
Two taxicabs, one owned and operated by "X & Co." and
individual.
the other by "Y & Co.," have figured in a collusion. Both
Liability for Every quasi delict Some crimes do
drivers of the taxicabs are negligent. As a result of the damages gives rise to not give rise to
accident, "A" a passenger of the taxicab owned and liability for liability, e.g.,
operated by "X & Co." suffered injuries. May A institute an damages. Illegal possession
action for damages against “X & Co.," "Y & Co.," and the of firearm,
two drivers? contempt.
Quantum of Preponderance of Proof beyond
The primary (principal) cause of action by "A" against "X Proof evidence reasonable doubt
& Co." is for damages based on culpa contractual and Sanction and Reparation or Punishment is
the source of liability against all others is culpa aquiliana Penalty indemnification of either
(also culpa criminal in case of the drivers). injury or damage imprisonment,
fine or both;
1. As against X & Co. - there is a breach of contract of
sometimes other
carriage because of the negligence of its taxicab driver accessory
2. As against Y & Co. and its driver - they are solidarily penalties are
imposed.
liable for damages based on the quasi-delict since they
have no pre-existing relationship with A, being the
passenger in the taxicab owned by X & Co. CULPA AQUILIANA V. CULPA
3. As against the individual drivers - they are personally CONTRACTUAL
criminally liable each for their reckless imprudence
resulting to physical injuries to A

4. Should the individual drivers be insolvent; their BASIS CULPA CULPA

respective employers shall be subsidiarily liable for the AQUILIANA CONTRACTUAL
civil liability ex delicto.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 44 of 96

Type of Negligence In cases of In cases of negligence perform his

quasi-delict breach of because this obligation. it is
(culpa contract of is the basis of not necessary
aquiliana), carriage (culpa the action. for the plaintiff
the liability of contractual) the to prove or
the common liability of the even allege that
carrier common carrier the obligor's
(employer) or employer is non-compliance
and the direct and was due to fault
negligent immediate, or negligence
driver not merely because Article
(employee) is subsidiary or 1735 already
direct, secondary presumes that
primary, and (Article 1755, the common
solidary. 1756, and 1759, carrier is
New Civil Code) negligent.
Defense of liability If the injured The common
Employees are of to the carrier can only
not liable for Agents/Employees plaintiff free itself from
lack of privity resulted from liability by
to the the act or providing that it
contract omission of observed
Defense of a "good Complete and NOT a complete the extraordinary
father of a family" proper and proper defendant's diligence. it
defense (Art. defense in the employee or cannot
2180, last selection and servant, the discharge this
par.) supervision of defendant liability by
employees may absolve shifting the
(Cango vs. himself by blame on its
MRC, 38 Phil. proving that agents or
768). he observed servants.
Presumption of No There is the diligence
negligence presumption presumption of of a good
of the negligence father of a
negligence. as long as it can family to
The injured be proved that prevent the
party must there was damage.
prove the breach of the
negligence of contract. The
the defendant defendant must
(Cangco vs. prove there was
MRC, 38 Phil no negligence in
768). the carrying put
Otherwise, of the terms of
the complaint the contract
of the injured (Cango vs.
party will be MRC, 38 Phil.
dismissed. 768).

The plaintiff The plaintiff

in culpa only needs to
aquiliana establish the
must clearly existence of the REAL OBLIGATIONS
establish the contract and
defendant's the obligor's
fault or failure to
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 45 of 96

Article 1163. Every person obliged to give something is 1. Tradicion Instrumental - execution of public
also obliged to take care of it with the proper diligence instrument; Article 1498. When the sale is made
of a good father of a family, unless the law or the through a public instrument, the execution thereof shall
stipulation of the parties requires another standard of be equivalent to the delivery of the thing which is the
care. (1094a) object of the contract, if from the deed the contrary
does not appear or cannot clearly be inferred.
Article 1164. The creditor has a right to the fruits of
the thing from the time the obligation to deliver it arises. 2. Tradicion Symbolica - delivering an item
However, he shall acquire no real right over it until the symbolizing the principal object; Article 1498 2nd par.
same has been delivered to him. (1095) With regard to movable property, its delivery may also
be made by the delivery of the keys of the place or
Article 1166. The obligation to give a determinate depository where it is stored or kept.
thing includes that of delivering all its accessions and
accessories, even though they may not have been ➢ Tradicio Clarium - is applicable only to
mentioned. (1097a) personal property (i.e. keys). In Banco Filipino
vs. Peterson, the goods in the warehouse were
(1) OBLIGATION TO GIVE delivered when the keys to the warehouse was
given.
➢ Article 1244. The debtor of a thing cannot 3. Tradicion Longa Manu - Pointing of the object;
compel the creditor to receive a different one, Article 1499. The delivery of movable property may
although the latter may be of the same value as, likewise be made by the mere consent or agreement of
or more valuable than that which is due. the contracting parties, if the thing sold cannot be
DETERMINATE OR INDETERMINATE OR transferred to the possession of the vendee at the time
SPECIFIC THING GENRIC THING of the sale.
In obligations to give Article 1246. When the
4. Tradicion Brevi Manu (possessor becomes the
a determinate thing, obligation consists in the
owner; thus no more actual delivery) Article 1499 "or
the obligor or debtor delivery of an
binds himself to indeterminate or generic if the latter already had it in his possession for any other
deliver to the obligee thing, whose quality and reason."
or creditor a thing or circumstances have not
5. Tradicion Constitutum Possessorium [delivery by
object which is been stated, the creditor
possessory agreement] (possessor/owner loses
particularly cannot demand a thing of
designated or superior quality. Neither ownership but retains possession in some other capacity,
physically segregated can the debtor deliver a eg. lessee) - Article 1500. There may also be tradition
from all others of the thing of inferior quality. constitutum possessorium.
same class. The purpose of the
6. Tradicion by operation of law
obligation and other
circumstances shall be a) Article 1434. When a person who is not the
taken into consideration. owner of a thing sells or alienates and delivers
(1167a)
it, and later the seller or grantor acquires title
thereto, such title passes by operation of law to
"TO GIVE:" MODES OF TRADITION OR DELIVERY the buyer or grantee.
b) Article 1513: A person to whom a negotiable
document of title has been duly negotiated
Real or Actual Tradition - Article 1497. The thing acquires thereby such title to the goods as
sold shall be understood as delivered, when it is placed transferor had or had ability to convey to a
in the control and possession of the vendee. purchaser in good faith for value, and also the
title of the persons to whom the documents was
Constructive Tradition (fingida) - Article 1496. The
originally.
ownership of the thing sold is acquired by the vendee
c) Article 1531: Delivery through a carrier as a
from the moment it is delivered to him in any of the
form of constructive delivery necessarily pertains
ways specified in articles 1497 to 1501, or in any other
only to a sale of goods. The general rule, and in
manner signifying an agreement that the possession is
the absence of stipulation or circumstances to
transferred from the vendor to the vendee. (n)
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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the contrary, delivery to carrier is deemed

delivery to the buyer, the premise being that the ➢ A thing sold shall be considered as delivered,
carrier acts as an agent of the buyer. when it is placed in the hands and possession
7. Quasi-Tradicion - Article 1501. With respect to of the vendee.
incorporeal property, the provisions of the first ➢ When the sale should be made by means of a
paragraph of article 1498 shall govern. In any other case public instrument, the execution thereof shall
wherein said provisions are not applicable, the placing of be equivalent to the delivery of the thing which
the titles of ownership in the possession of the vendee is the object of the contract, if in said
instrument the contrary does not appear or
or the use by the vendee of his rights, with the vendor's
may be clearly inferred.
consent, shall be understood as a delivery.

RULES ON DELIVERY In this last decision, also rendered on an appeal in

cassation, the doctrine enunciated in the excerpt
copied here below was established:
GUADALUPE GONZALES AND LUIS GOMEZ, VS.
E.J. HABERER, FEBRUARY 3, 1925 That the contract of purchase and sale, as consensual,
is perfected by consent as to the price and the thing
Delivery must be according to the tenor of the and is consummated by the reciprocal delivery of the
obligation. one and the other, the full ownership of the thing sold
being conveyed to the vendee, from which moment the
➢ The content of the appellants that the symbolic rights of action derived from this right may be
delivery effected by the execution and delivery exercised. It is, then, of the utmost importance to
of the agreement was a sufficient delivery of examine whether in the said sale the purchase price
the possession of the land, is also without was paid and whether the vendee took possession of
the land supposed to have been sold.
merit. The possession referred to in the
contract is the evidently physical; if it were
otherwise it would not have been necessary to
NORKIS DISTRIBUTORS, INC., VS. COURT OF
mention it in the contact. (See Cruzado vs.
APPEALS & NEPALES, FEBRUARY 7, 1991
Bustos and Escaler, 34 Phil., 17.)
The purchaser is also a creditor with respect to the • Norkis concedes that there was no "actual"
products of the thing sold, and article 1095 of the Civil delivery of the vehicle. However, it insists that
Code prescribes as follows: there was constructive delivery of the unit
upon: (1) the issuance of the Sales Invoice No.
0120 (Exh. 1) in the name of the private
➢ A creditor has a right to the fruits of a thing
respondent and the affixing of his signature
from the time the obligation to deliver it arises.
thereon; (2) the registration of the vehicle on
However, he shall not acquire a property right
November 6, 1979 with the Land
thereto until it has been delivered to him.
Transportation Commission in private
respondent’s name (Exh. 2); and (3) the
The provisions of this article are in agreement with that issuance of official receipt (Exh. 3) for payment
of the second paragraph of article 609 of the same of registration fees (p. 33, Rollo).
Code, which is of the following tenor:
• That argument is not well taken. As
➢ Ownership is acquired by retention. pointed out by the private respondent, the
➢ Ownership and other property rights are issuance of a sales invoice does not prove
required and transmitted by law, by gift, by transfer of ownership of the thing sold to the
testate or intestate succession, and, in buyer. An invoice is nothing more than a
consequence of certain contracts, by tradition. detailed statement of the nature, quantity and
cost of the thing sold and has been considered
➢ They can also be acquired by prescription.
not a bill of sale (Am. Jur. 2nd Ed., Vol. 67, p.
378).chanrobles virtual lawlibrary
The provisions of the said article 1095 are also in
accord with those of article 1462 which reads: • In all forms of delivery, it is necessary
that the act of delivery whether
constructive or actual, be coupled with
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 47 of 96

the intention of delivering the thing. The vehicle to respondent Bernal spouses
act, without the intention, is insufficient inasmuch as the petitioner still needed
(De Leon, Comments and Cases on Sales, 1978 the same for the approval of the
Ed., citing Manresa, p. 94). financing contract with Jardine-Manila
Finance, Inc. The record shows that the
• When the motorcycle was registered by Norkis registration certificate was submitted to
in the name of private respondent, Norkis did Jardine-Manila Finance, Inc., which took
not intend yet to transfer the title or ownership possession thereof until Sosmeña requested
to Nepales, but only to facilitate the execution the latter to hand over the said document to
of a chattel mortgage in favor of the DBP for him. The fact that the registration certificate
the release of the buyer’s motorcycle loan. The was still kept by Jardine-Manila Finance, Inc.
Letter of Guarantee (Exh. 5) issued by the DBP, and its unhesitating move to give the same to
reveals that the execution in its favor of a Sosmeña just goes to show that the
chattel mortgage over the purchased vehicle is respondent spouses still had no complete
a pre-requisite for the approval of the buyer’s control over the subject motor vehicle as
loan. If Norkis would not accede to that they did not even possess the said
arrangement, DBP would not approve private certificate of registration nor was their
respondent’s loan application and, consent sought when Jardine-Manila
consequently, there would be no sale. Finance, Inc. handed over the said
document to Sosmeña.
• In other words, the critical factor in the
different modes of effecting delivery,
which gives legal effect to the act, is the (2) OBLIGATION TO TAKE CARE
actual intention of the vendor to deliver,
and its acceptance by the vendee. Without
that intention, there is no tradition (Abuan v. Article 1163. Every person obliged to give something
Garcia, 14 SCRA 759). is also obliged to take care of it with the proper
diligence of a good father of a family, unless the law or
the stipulation of the parties requires another standard
UNION MOTOR COPR. V. COURTS OF APPEALS, of care.
JULY 20, 2001
• The registration certificate signed by the TYPES OF DILEGENCE:
respondent spouses does not conclusively
prove that constructive delivery was 1. Slight diligence
made nor that ownership has been 2. Ordinary diligence or due diligence - the phrase
transferred to the respondent spouses.
has been equated with ordinary care that diligence
which an average (a reasonable prudent) person
• Like the receipt and the invoice, the signing of
the said documents was qualified by the fact exercises over his own property.
that it was a requirement of petitioner 3. Extraordinary diligence - that extreme measure of
for the sale and financing contract to be
care and caution which persons of unusual prodence and
approved. In all forms of delivery, it is
circumspection use for securing and preserving their
necessary that the act of delivery, whether
constructive or actual, should be coupled with own property or rights. (Republic v. Lorenzo Shipping
the intention of delivering the thing. The act, Corp., G.R. No. 153563, [February 7, 2005]); as far as
without the intention, is insufficient.7 The human care and foreh=sight can provide using the
critical factor in the different modes of utmost diligence of very cautious persond. (Bacarro v.
effecting delivery which gives legal effect to Castano, G.R. No. L-34597, [November 5, 1982])
the act, is the actual intention of the vendor to
deliver, and its acceptance by the vendee. ✓ C.f. Article 1173: If the law or contract does not
Without that intention, there is no tradition. state the diligence which is to be observed in the
performance, that which is expected of a good
• The act of signing the registration father of a familu sha;; be required.
certificate was not intended to transfer ✓ Doctrine of the discreet pater familias.
the ownership of the subject motor

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 48 of 96

✓ Applicable only to determinate obligations and Article 441. To the owner belongs:
not to generic ones [genus nun quam perit] is 1. The natural Article 442. Article 444.
established merely for the purpose of insuring the fruits; Natural fruits Only such as
efficacy and perfomance of the obligation. are the are manifest
spontaneous or born are
products of the considered as
✓ According to Manresa, the debtor must exercise soil, and the natural or
diligence to insure that the thing to be delivered young and other industrial fruits.
would subsist in the same condition as it was products of With respect to
when the obligation was contracted. Without the animals. animals, it is
accessory duty to take care of the thing, the 2. The Article 442. sufficient that
debtor would be able to afford being negligent industrial Industrial they are in the
fruits; fruits are those womb of the
and he would not be liable even if the property is
produced by mother,
lost or destroyed, thus rendering illusory the
lands of any kind although
obligation to give. unborn. (357)
through
cultivation or
This rule, however, is subject to two exemptions: labor.
3. The civil Article 442. Civil fruits are the
1. The first is the law requires another standard of care.
fruits rents of buildings, the price of
a. Article 1733. Common carriers, from the leases of lands and other property
nature of their business and for reasons of public and the amount of perpetual or life
policy, are bound to observe extraordinary annuities or other similar income.
diligence in the vigilance over the goods and for (355a)
the safety of the passengers transported by
them, according to all the circumstances of each "FROM THE TIME TO DELIVER IT ARISES"
case.

b. banks When does the time to deliver the fruits arise?

2. The second is if the parties stipulated another standard 1. Pure Obligation - upon demand by the creditor
of care. Thus, the parties may agree that the standard to
be followed by the debtor in taking care of the thing 2. Conditional Obligation - upon the happening of
pending its delivery or in the delivery itself shall be either the suspensive condition, or upon demand in case of a
extraordinary care or slight care. resolutory condition

(3) OBLIGATION TO DELIVER THE FRUITS 3. Obligation with a period - upon the arrival of the
suspensive period, or upon demand in case of a
resolutory period
Article 1164. The creditor has a right to the fruits of
the thing from the time the obligation to deliver it PERSONAL RIGHT V. REAL RIGHT
arises. However, he shall acquire no real right over it TO THE FRUITS
until the same has been delivered to him. (1095).

Rationale for entitlement to the fruits: PERSONAL REAL RIGHT

RIGTH
Article 440. The ownership of property gives the right
DEFINITION A personal A real right, on
by accession to everything which is produced thereby, right is "a the other hand,
or which is incorporated or attached thereto, either right is a "right
naturally or artificially. (353) pertaining to pertaining to a
a person to person over a
KINDS OF FRUITS demand from specific thing,
another, as a without a
defined passive subject
passive individually
subject, the determined
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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fulfillment of against whom of the acquiring

a prestation such right may obligation ownership
to give, to do be personally EXTINGUISHED Survives the Extinguishment
or not to do." enforced." subject by the loss or
matter destruction of
There is a There is a the thing over
definite active definite active which it is
subject and subject who has exercised.
definite a right against
passive all persons
object. generally as an (4 & 5) OBLIGATION TO DELIVER ACCESSIONS
indefinite & ACCESSORIES
Binding or passive subject.
enforceable
only against Directed against Article 1166. The obligation to give a determinate
a particular the whole world, thing includes that of delivering all its accessions and
person, e.i., giving rise to accessories, even though they may not have been
the debtor, real actions mentioned. (1097a)
giving rise to (actio in prem)
personal against third ACCESSIONS ACCESSORIES
actions (actio persons The term "accessions" "Accessories" on the
in personam) signifies all of those other hand, must be
against the things which are understood in its current
debtor produced by the thing and popular sense. It
TYPES OF It is a jus ad It is a jus in re, which is the object of signifies all of those things
RIGHT rem, a right a right the obligation as well as which have for their object
enforceable enforceable of those which are the embellishment, use
only against against the naturally or artificially or preservation of
a definite whole world. attached thereto. another thing which is
person or more important and to
group of which they are not
persons, such incorporated or attached.
as the right
of a creditor
to demand Consequently, it In other words, it includes
from the comprehends all of the all of those things which
debtor the different kinds of are necessary or
delivery of accessions which are convenient for the
object of the defined and regulated perfection of another
obligation by the provisions of thing, such as the
after the Article 441 to 475 of equipment of a factory the
perfection of the Civil Code, such spare parts and tools for a
the contract. as: machine, they key of a
COMPROMISE Personal Real right- house and others of similar
right- right right or power 1. Accession descreta nature.
that may be over a specific (natural, industrial and
enforced by thing, acquired civil fruits)
one person when it is 2. Accession industrical
on another delivered to the (building, planting and
(to demand); creditor sowing)
WHEN Acquire the Acquired the 3. Accession natural
ACQUIRED? right from right from the (alluvion, avulsion) and
the moment moment of 4. Accession with
of the delivery of the respect to movable
constitution obligations; property (adjunction or
mode of conjunction, confusion

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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or commixtion, and
specification)
How complied with?
Article 1244. 2nd par. In obligations to do or not to
PRINCIPAL REMEDIES IN CASE OF do, an act or forbearance cannot be substituted by
another act or forbearance against the obligee's will.
BREACH

Positive Personal Negative Personal

Article 1165. When what is to be delivered is a
Obligation Obligations
determinate thing, the creditor, in addition to the right
granted him by article 1170, may compel the debtor to
Article 1167. If a person Article 1168. When the
make the delivery. obliged to do something obligation consists in not
If the thing is indeterminate or generic, he may ask that fails to do it, the same doing, and the obligor
shall be executed at his does what has been
the obligation be complied with at the expense of the
cost. forbidden him, it shall
debtor.
also be undone at his
If the obligor delays, or has promised to deliver the This same rule shall be expense. (1099a)
same thing to two or more persons who do not have the observed if he does it in
contravention of the tenor
same interest, he shall be responsible for any fortuitous
of the obligation.
event until he has effected the delivery. (1096)
Furthermore, it may be
REMEDIES FOR PRINCIPAL OBLIGATION decreed that what has
Delivery of Delivery of been poorly done be
determinate things: indeterminate things: undone. (1098)
1. "Compel the debtor
to make the delivery" 1. "Compel the debtor PRINCIPAL REMIDIES IN PERSONAL
- to make the delivery" OBLIGATIONS
a. Make demand extra-
judicially or Positive Personal Negative Personal
b. requires specific Obligations (Article Obligations (Article
performance, which 1167) 1168)
refers to the remedy of
requiring exact 1. Demand Performance 1. Demand Performance
performance of a
contract in the specific 2. If a person is obliged to 2. RULE: When the
form in which it was do something to do it, or if obligation consists in not
made, or according to the he does it in contravention doing, and the obligor
precise terms agreed of the tenor of the does what has been
upon. (Solid Homes, Inc. obligation - the same shall forbidden him, it shall
v. Spouses Jurado, G.R. be executed at his cost or be undone at his
No. 219673, [September substitute performance + expense + damages
2, 2019]) damages (1170) (1170)
2. "in addition to the 2. "the obligation be
right granted him by complied with at the XPN: where the personal
article 1170"- right to expense of the debtor" and special
demand damages in - substitute performance qualification of the
case of breach; obligor is the principal
equivalent performance motive for the
3. "in addition to the right establishment of the
granted him by article obligation, as for
1170" instance, the talent is no
other remedy of the
obligee except to proceed
PERSONAL OBLIGATIONS against the obligor for
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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damages under Article EXAMPLES OF NEGATIVE PERSONAL

1170 of the Code. OBLIGATIONS

3. If the obligation has 3. XPN: File an action for

been complied with but damages only based on Article 1789. An industrial partner cannot engage in
poorly done, it may be Article 1170 business for himself, unless the partnership expressly
decreed that what has permits him to do so; and if he should do so, the
been poorly done be a. Where the effects of capitalist partners may either exclude him from the firm
undone + damages the act which is forbidden or avail themselves of the benefits which he may have
(1170) are definite in obtained in violation of this provision, with a right to
character in which case, damages in either case. (n)
even if it is possible for
the obligee to ask that Article 1803. (2) None of the partners may, without
the act be undone at the the consent of the others, make any important alteration
expense of the obligor, in the immovable property of the partnership, even if it
consequences contrary to may be useful to the partnership.
the object of the
obligation will have been Article 1808. The capitalist partners cannot engage for
produced which are their own account in any operation which is of the kind
permanent in character of business in which the partnership is engaged, unless
there is a stipulation to the contrary.
b. Where it would be
physically or legally Article 1977. The depositary cannot make use of the
impossible to undo thing deposited without the express permission of the
what has been done depositor. Otherwise, he shall be liable for damages.
because of the very
nature of the act itself, or
because of a provision of
the law or because of SUMMARY OF PRINCIPAL REMEDIES
conflicting rights of third
persons.

EXAMPLE OF POSITIVE PERSONAL

OBLIGATIONS

Article 1713. By the contract for a piece of work the

contractor binds himself to execute a piece of work for
the employer, in consideration of a certain price or
compensation. The contractor may either employ only
his labor or skill, or also furnish the material. (1588a)

Article 1715. The contract shall execute the work in

such a manner that it has the qualities agreed upon and
has no defects which destroy or lessen its value or
fitness for its ordinary or stipulated use. BREACH IN THE PERFORMANCE OF
OBLIGATIONS
✓ Should the work be not of such quality, the
1. VOLUNTARY BREACH - ARTS. 1169-1173
employer may require that the contractor
2. INVOLUNTARY BREACH - ART. 1174
remove the defect or execute another work.
✓ If the contract fails or refuses to comply with
this obligation, the employer may have the
defect removed or another work executed, at VOLUNTARY BREACH IN THE PERFORMANCE
the contractor's cost. (n)
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 52 of 96

Article 1170. Those who in the performance of their

obligations are guilty of fraud, negligence, or delay, and
those who in any manner contravene the tenor thereof,
are liable for damages. (1101) Article 1170. Those who in the performance of
their obligations are guilty of the following are
Article 1171. Responsibility arising from fraud is
liable for damages:
demandable in all obligations. Any waiver of an action
1. Fraud Article 1171. Responsibility arising
for future fraud is void. (1102a)
(dolo) from fraud is demandable in all
Article 1172. Responsibility arising from negligence in obligations. Any waiver of an action
the performance of every kind of obligation is also for future fraud is void. (1102a)
2. Article 1172. Responsibility arising
demandable, but such liability may be regulated by the
Negligence from negligence in the performance
courts, according to the circumstances. (1103)
(culpa) of every kind of obligation is also
Article 1173. The fault or negligence of the obligor demandable, but such liability may
consists in the omission of that diligence which is be regulated by the courts,
required by the nature of the obligation and corresponds according to the circumstances.
(1103)
with the circumstances of the persons, of the time and
of the place. When negligence shows bad faith, the
Article 1173. The fault or
provisions of articles 1171 and 2201, paragraph 2, shall negligence of the obligor consists in
apply. the omission of that diligence which
is required by the nature of the
If the law or contract does not state the diligence which
obligation and corresponds with the
is to be observed in the performance, that which is
circumstances of the persons, of the
expected of a good father of a family shall be required. time and of the place. When
(1104a) negligence shows bad faith, the
provisions of articles 1171 and 2201,
Article 1169. Those obliged to deliver or to do
paragraph 2, shall apply.
something incur in delay from the time the obligee
3. Delay Article 1169. Those obliged to
judicially or extrajudicially demands from them the
(Mora) deliver or to do something incur in
fulfillment of their obligation. delay from the time the obligee
However, the demand by the creditor shall not be judicially or extra-judicially demands
from them the fulfillment of their
necessary in order that delay may exist:
obligation.
(1) When the obligation or the law expressly 4. This violation of the terms and
so declare; or Contraventio conditions stipulated in the
(2) When from the nature and the n of the obligation [contractual obligations],
circumstances of the obligation it tenor of the or required by the nature of the
obligation obligation (real and personal
appears that the designation of the time
(violatio) obligation) [Arts. 1165, 1667, 1168]
when the thing is to be delivered or the
service is to be rendered was a
controlling motive for the establishment 4. Articles 1169-1178
of the contract; or
(3) When demand would be useless, as
when the obligor has rendered it beyond Breach in the Performance of
his power to perform. Obligations
In reciprocal obligations, neither party incurs in delay if
Not necessarily a violation, it just means non-
the other does not comply or is not ready to comply in a
performance of the obligation.
proper manner with what is incumbent upon him. From
the moment one of the parties fulfills his obligation, 1. Voluntary Breach- Arts 1169 to 1173
delay by the other begins. (1100a) Article 1170. Those who in the performance of their
obligations are guilty of fraud, negligence, or delay,

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 53 of 96

and those who in any manner contravene the tenor what is incumbent upon him. From
thereof, are liable for damages. (1101) the moment one of the parties
(1) Fraud (Dolo) Article 1171. Responsibility fulfills his obligation, delay by the
arising from fraud is demandable other begins. (1100a)
in all obligations. Any waiver of an (4) This is the violation of the terms
action for future fraud is void. Contravention of and conditions stipulated in the
(1102a) the tenor of the obligation [contractual
(2) Negligence Article 1172. Responsibility obligation obligations], or required by the
(culpa) arising from negligence in the (violatio) nature of the obligation(real or
Partakes the performance of every kind of No specific personal obligation) [Arts 1165.
nature of culpa obligation is also demandable, but provision, it is 1167, 1168]
contractual such liability may be regulated by scattered
the courts, according to the throughout the
circumstances. (1103) civil code.
(1) Fraud or Dolo
Article 1173. The fault or Article 1171. Responsibility arising from fraud is
negligence of the obligor consists demandable in all obligations. Any waiver of an action
in the omission of that diligence for future fraud is void. (1102a)
which is required by the nature of
the obligation and corresponds "Fraud" is defined as a generic term embracing all
with the circumstances of the multifarious means which human ingenuity can devise,
persons, of the time and of the and which are resorted to by one individual to secure an
place. When negligence shows bad advantage over another by false suggestions or by
faith, the provisions of articles
suppression of truth and includes all surprise, trick,
1171 and 2201, paragraph 2, shall
cuning, dissembling and any unfair way by which
apply.
another is cheated. (Alleje vs CA, Jan 25, 1995)
(3) Delay (Mora) Article 1169. Those obliged to
deliver or to do something incur in Types of Civil Fraud/Dolo from the viewpoint of
delay from the time the obligee its occurrence:
judicially or extrajudicially
demands from them the fulfillment 1. Dolo Incidente or Incidental Fraud
of their obligation. According to Manresa, fraud or dolo consists in
thee conscious and intentional proposition to
However, the demand by the evade the normal fulfillment of an obligation;
creditor shall not be necessary in
connotes malice or bad faith.
order that delay may exist:
2. Dolo Causante or Causal Fraud
(1) When the obligation or the law -Article 1338. There is fraud when, through
expressly so declare; or insidious words or machinations of one of the
(2) When from the nature and the contracting parties, the other is induced to enter
circumstances of the obligation it into a contract which, without them, he would
appears that the designation of the not have agreed to.
time when the thing is to be -causal fraud is defined as "a deception
delivered or the service is to be employed by one party prior to or simultaneous
rendered was a controlling motive to the contract in order to secure the consent of
for the establishment of the the other."(Metropolitan Fabrics vs Prosperity
contract; or Credit Resources, March 17, 2014 )
(3) When demand would be Fraud or Dolo may either be dolo causante or dolo
useless, as when the obligor has
incidente.
rendered it beyond his power to
perform. -The first, or causal fraud referred to in Article 1338, are
those deceptions or misrepresentations of a serious
In reciprocal obligations, neither character employed by one party and without which the
party incurs in delay if the other
other party would not have entered into the contract.
does not comply or is not ready to
-Dolo incidente, or incidental fraud which is referred to
comply in a proper manner with
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 54 of 96

in Article 1344, are those which are not serious in If there is intent to If there is merely
character and without which the other party would still cause damage or injury, abandonment, inattention,
have entered into the contract. there is dolo. carelessness, or lack off
-Dolo causante determines or is the essential cause of diligence, there is culpa.
the consent, while dolo incidente refers only to some The conscious and Signifies an act or omission
particular or accident of the obligations. intentional proposition which is voluntary in
-The effects of dolo causante are the nullity of the to evade the normal character by virtue of
fulfillment of the which another person
contract and the indemnification of damages, and dolo
obligation suffers damage or injury
incidente also obliges the person employing it to pay
due to a failure to observe
damages. (Geraldez vs CA, Feb 23, 1994) the diligence which is
Types of Civil Fraud/ Dolo from the viewpoint of required by the nature of
the obligation an which
the time of its commission:
must correspond with the
1. Future Fraud- If upon an action based on future circumstances of persons,
fraud, waiver is void. time, and place.
2. Past Fraud- Waiver is allowed Future fraud may not be Future simple negligence
waived may be waived, not future
Incidental Fraud Causal Fraud gross negligence
A promises B a diamond A promises B to sell him Article 1172. Responsibility arising from negligence
ring. Unya ang gem diay a diamond ring. Pero in the performance of every kind of obligation is also
sa ring is katung lubot sa lubot lang sad sa baso. demandable, but such liability may be regulated by
baso. The causal fraud here is the courts, according to the circumstances. (1103)
the pagbaligya of A
saying the ring is Article 1173. The fault or negligence of the obligor
diamond and for the consists in the omission of that diligence which is
price that he mentioned required by the nature of the obligation and
because without his corresponds with the circumstances of the persons, of
deceit B wouldn’t have the time and of the place. When negligence shows
bought the ring. bad faith, the provisions of articles 1171 and 2201,
paragraph 2, shall apply.
(2) Negligence, or Culpa
Article 1173. The fault or negligence of the obligor Rule on Damages
consists in the omission of that diligence which is Art 2201: In contracts and quasi-contracts
required by the nature of the obligation and If the debtor or obligor has acted in good faith, he shall
corresponds with the circumstances of the be liable only for:
persons, of the time and of the place.
• Natural and probable consequences of th breech
Negligence is defined as the failure to observe that of obligation and
degree of care, precaution, and vigilance which the • Which the parties have foreseen or could have
circumstances justly demand, by reason if which another reasonably foreseen at the time the obligation
person suffers injury. (Global Automotive Technologies was constituted
of Davao vs Legaspina, Sept 2, 2019) If the negligence of the obligor shows bad faith, then, by
If the law does not state the diligence which is to be express provision of Art 1173, the provisions of Arts
observed in the performance, that which is expected of 1171 and 2201 par 2 shall apply:
a good father of a family shall be required. The Court • Hence, the obligor can be held responsible for
notes that the foregoing articles are applicable only to all the damages which may eb reasonably
the obligor or the one with an obligation to perform. attributed to the nonperformance of the
(Valenzuela Hardwood and Industrial Supply vs CA and obligation.
Seven Brothers Shipping Corporation) (3) Delay or Mora
Fraud Negligence Article 1169. Those obliged to deliver or to do
something incur in delay from the time the obligee

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 55 of 96

judicially or extrajudicially demands from them the Requisites for Delay

fulfillment of their obligation. There are three requisites which should be present in
order that the obligor or debtor may be considered in
However, the demand by the creditor shall not be default. They are:
necessary in order that delay may exist:
1. The obligation is demandable and already
(1) When the obligation or the law expressly so declare; liquidated;
or 2. The obligor or debtor fails in the performance;
(2) When from the nature and the circumstances of the and
obligation it appears that the designation of the time 3. The credit requires the performance judicially
when the thing is to be delivered or the service is to be and extrajudicially
rendered was a controlling motive for the establishment
(Aerospace Chemical Industries vs CA)
of the contract; or
Exceptions to rule on demand
(3) When demand would be useless, as when the obligor
has rendered it beyond his power to perform. The demand by the creditor shall not be necessary in
order that delay may exist:
In reciprocal obligations, neither party incurs in delay if
the other does not comply or is not ready to comply in a 1. When the obligation expressly so declares
proper manner with what is incumbent upon him. From
the moment one of the parties fulfills his obligation, 2. When the law expressly declares
delay by the other begins. • Art 1169 (Par 3) In reciprocal obligations,
The Concept of Delay in Certain Obligations neither party incurs in delay if the other does
not comply or is not ready to comply in a proper
Positive Obligations Negative Obligations manner with what is incumbent upon him. From
Those obliged to deliver The obligor cannot the moment one of the parties fulfills his
or to do something incur possibly incur in delay in obligation, delay by the other begins. (1100a)
in deay from the time the negative obligations (not • Article 1669. If the lease was made for a
oblige judicially or to do). According to determinate time, it ceases upon the day fixed,
extremely demands from Manresal, these without the need of a demand.
them the fulfillment of obligations have a
• Article 1788. A partner who has undertaken to
their obligation peculiarity of their
contribute a sum of money and fails to do so
Delay in Fact or Actual ownwhich the law deos
becomes a debtor for the interest and damages
Delay-by the mere lapse not show but which is
of time, or happening of evident from their special from the time he should have complied with his
an event, there isa failure nature. Fulfillment and obligation.
to perform an obligation violation are possible, 3. When from the nature and the circumstances of the
Delay in Law or Legal but not default or obligation it appears that the designation of the time
Delay-after proper mora. when the thing is to be delivered or the service is to be
demand has been made, rendered was a controlling motive for the establishment
there is failure to perform of contract; or
the obligation “time is of the essence”
Example: Art 203 of the
Family Code. The 4. When demand would be useless, as when the obligor
obligation to give support has rendered it beyond his power to perform.
shall eb demandable from
the time the person who Lorenzo Shipping Corp. vs BJ Marthel
has a right to receive the International Inc [Nov 19, 2004]
same needs it for Test to determine if time is a controlling motive:
maintenance, but it shall • In determining time is of the essence in a
not be paid except from contract, the ultimate criterion is the actual or
the date of judicial or apparent intention of the parties and before
extrajudicial demand. time may be so regarded by a court, there
must be a sufficient manifestation either ein
No demand=no delay. the contract itself or the surrounding
circumstances of that intention.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 56 of 96

• It is a cardinal rule in interpretation of not indicate the due date of delivery of

contracts that if the terms thereof are clear the second cylinder liner.
and leave no doubt as to the intention of the We cannot say that time is of the essence.
contracting parties, the literal meaning shall Without demand, we cannot incur delay. We
control. However, in order to ascertain the need delay for the liability for the damages
intention of the parties, their 3rd Par: Reciprocal Obligations
contemporaneous and subsequent acts should
be considered.nWhile this Court recognizes • “Reciprocal obligations are those which arise
the principle that contracts are respected as from the same cause, and [in] which each party
the law between the contracting parties, this is a debtor and a creditor of the other, such that
principle is tempered by the rule that the the obligation of one is dependent upon the
intention of the parties is primordial35 and obligation of the other. They are to be
"once the intention of the parties has been performed simultaneously, so that the
ascertained, that element is deemed as an performance of one is conditioned upon the
integral part of the contract as though it has simultaneous fulfillment of the other.”
been originally expressed in unequivocal
• In reciprocal obligations, neither party incurs in
terms."
delay if the other does not comply or is not
• Petitioner insists that although its purchase
ready to comply in a proper manner with what is
orders did not specify the dates when the
cylinder liners were supposed to be delivered, incumbent upon him. From the moment one of
nevertheless, respondent should abide by the the parties fulfils his obligation, delay by the
term of delivery appearing on the quotation it other begins. (Consolidated Industrial Gases,
submitted to petitioner. Petitioner theorizes Inc., v Alabang Medical Center, Nov 13, 2013)
that the quotation embodied the offer from Exception to Rule on Reciprocal Obligations
respondent while the purchase order
represented its (petitioner's) acceptance of • In reciprocal obligations, as in a contract of sale,
the proposed terms of the contract of sale. the general rule is that the fulfillment of the
Thus, petitioner is of the view that these two parties' respective obligations should be
documents "cannot be taken separately as if simultaneous. Hence, no demand is generally
there were two distinct contracts." We do not necessary because, once a party fulfills his
agree. obligation and the other party does not fulfill his,
• In the present case, we cannot subscribe the latter automatically incurs in delay. But
to the position of petitioner that the when different dates for performance of
documents, by themselves, embody the the obligations are fixed, the default for
terms of the sale of the cylinder liners.
each obligation must be determined by the
One can easily glean the significant
rules given in the first paragraph of the
differences in the terms as stated in the
present article, that is, the other party
formal quotation and Purchase Order No.
13839 with regard to the due date of the would incur in delay only from the
down payment for the first cylinder liner and moment the other party demands
the date of its delivery as well as Purchase fulfillment of the former's obligation. Thus,
Order No. 14011 with respect to the date of even in reciprocal obligations, if the period
delivery of the second cylinder liner. While the for the fulfillment of the obligation is
quotation provided by respondent evidently fixed, demand upon the obligee is still
stated that the cylinder liners were supposed necessary before the obligor can be
to be delivered within two months from considered in default and before a cause of
receipt of the firm order of petitioner and that action for rescission will accrue.
the 25% down payment was due upon the • Evident from the records and even from the
cylinder liners' delivery, the purchase orders
allegations in the complaint was the lack of
prepared by petitioner clearly omitted these
demand by petitioner upon respondent to fulfill
significant items. The petitioner's
Purchase Order No. 13839 made no its obligation to manufacture and deliver the
mention at all of the due dates of boxes. The Complaint only alleged that
delivery of the first cylinder liner and of petitioner made a "follow-up" upon respondent,
the payment of 25% down payment. Its which, however, would not qualify as a demand
Purchase Order No. 14011 likewise did for the fulfillment of the obligation. Petitioner's
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 57 of 96

witness also testified that they made a follow-up defective performance. (magat vs Medialdea,
of the boxes, but not a demand. Note is taken April 20, 1983)
of the fact that, with respect to their claim for Chavez v. Gonzales, April 30, 1970
reimbursement, the Complaint alleged and the It is clear that Gonzales contravened the tenor of his
witness testified that a demand letter was sent obligation because he not only did not repair the
to respondent. Without a previous demand typewriter but returned it "in shambles", according to
for the fulfillment of the obligation, the appealed decision. For such contravention, as
petitioner would not have a cause of appellant contends, he is liable under Article 1167 of
action for rescission against respondent as the Civil Code. jam quot, for the cost of executing the
obligation in a proper manner. The cost of the
the latter would not yet be considered in
execution of the obligation in this case should be the
breach of its contractual obligation. (Solar
cost of the labor or service expended in the repair of
Harvest, Inc. v Davao Corrugated Carton Corp, the typewriter, which is in the amount of P58.75.
July 26, 2010) because the obligation or contract was to repair it.
Kinds of Delay or Mora
1. Mora Solvendi- on the part of the debtor In addition, the defendant-appellee is likewise liable,
under Article 1170 of the Code, for the cost of the
a) Ex re- in real obligations missing parts, in the amount of P31.10, for in his
b) Ex persona-in personal obligations obligation to repair the typewriter he was bound, but
2. Mora Accipiendi- On the part of the creditor failed or neglected, to return it in the same condition
3. Compensation Morae-on the part of both parties in it was when he received it.
reciprocal obligations

Cortes v. CA [July 12, 2006] Continental Cement Corp v. Filipinas (PREFAB)

Since Cortes did not perform his obligation to have Systems Inc (August 4, 2009)
the Deed notarized and to surrender the same Still, FILSYSTEMS cannot fully escape liability. It is a
together with the TCTs, the trial court erred in fact - and FILSYSTEMS does not deny this - that it
concluding that he performed his part in the contract failed to finish the project, in contravention of
of sale and that it is the Corporation alone that was its obligation under the Construction Contract
remiss in the performance of its obligation. Actually, and the Compromise Agreement.
both parties were in delay. FILSYSTEMS has not shown that it was CCC's delay
that caused the former to fail to complete the project.
Considering that their obligation was reciprocal, On the contrary, it appears that despite CCC's delays,
performance thereof must be simultaneous. The FILSYSTEMS was able to accomplish 92.83% of the
mutual inaction of Cortes and the Corporation work. This proves that the completion of the project
therefore gave rise to a compensation morae or was not entirely dependent on CCC's payment - or
default on the part of both parties because neither prompt payment - of its obligation. FILSYSTEMS'
has completed their part in their reciprocal failure to finish the project is, therefore,
obligation.20 Cortes is yet to deliver the original copy unjustified. Accordingly, it must be held liable for
of the notarized Deed and the TCTs, while the the cost of completing the project. Article 1167 of the
Corporation is yet to pay in full the agreed down Civil Code provides:
payment of P2,200,000.00. This mutual delay of
the parties cancels out the effects of default,21 Art. 1167. If a person obliged to do something fails to
such that it is as if no one is guilty of delay. do it, the same shall be executed at his cost.

This same rule shall be observed if he does it in

(4) Contravenes the tenor of the obligation contravention of the tenor of the obligation.
• The “tenor” of the obligation refers to the Furthermore, it may be decreed that what has been
manner of its performance as provided by law or poorly done be undone.
by agreement off the parties.
• The phrase “in any manner contravene the We do not believe, however, that FILSYSTEMS should
tenor” of the obligation includes any illicit act or be made to pay the entire cost CCC paid to CE
omission which impairs the strict and faithful Construction, which finished the project.
fulfillment of the obligation and every kind of
It has been shown that at the time FILSYSTEMS
stopped work, the project was 92.83% finished,
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 58 of 96

although such work was accomplished beyond the court, impossibility must consist in the
initial deadline of 23 January 1993. But, as already nature of thin to be done and not in the
discussed above, FILSYSTEMS was entitled to time inability of the party to do it. (City of
extensions equivalent to the delay in the payment of Montpelier vs. National Surety Co)
its progress billings. Hence, FILSYSTEMS must be • As other have put it, to brinf the ccase within
held liable only for the remaining 7.17% of the the rule of impossibility, it must aappear that
project. To make it answer for more would
the thing to be done cannot be any means
unjustly enrich CCC, which has already
be accomplished, for if it is only
benefited from the former's work.
improbable or out of the power of the
obligor, it is not a law deemed impossible.
2. Involuntary Breach in Performance- o For the illustration, where the entire
Art 1174 product of a manufacturer was taken by
the government under order pursuant to
Article 1174. Except in cases expressly specified by
a commandeering stature during the
the law, or when it is otherwise declared by
stipulation, or when the nature of the obligation World War, it was held that such action
requires the assumption of risk, no person shall be excused performance of a contract to
responsible for those events which could not be supply civilian trade.
foreseen, or which, though foreseen, were inevitable. o Another example: where a party
(1105a) obligates himself to deliver certain
This provision talks about fortuitous events. things and the things perish through
war or in shipwreck, performance is
Definition and Requisites
excused, the destruction operating as a
Definition: It refers to those events which could not be
rescission or dissolution of the covenant.
foreseen, or which, though foreseen, were inevitable.
o But if the promisor is unable to deliver
• Acts of god and acts of men goods promised and his inability
To constitute a fortuituous event, the following arises, not from their destruction
elements must concur: but from, say, his inability to raise
money to buy them due to
a) The cause of the unforeseen and unexpected sickness, typhoon, or the like, his
occurrence or the failure of the debtor to comply liability is not discharged.
with obligations must be independent of o In the first case, the doing of the thing
human will; which the obligor finds impossible is the
b) It must be impossible to forsee the event foundation of the undertaking. In the
that constitutes the caso fortuito or, if can be second, the impossibility partakes of the
foreseen, it must be impossible to avoid; nature of the risk which the promisor
c) the occurrence must be such as to render it took within the limits of his undertaking
impossible for the debtor to fulfill of being able to perform. It is
obligations in a normal manner; and contingency which he could have taken
(explained further later) due precaution to guard against in the
d) The obligor must be free from any contract (Reyes vs Caltex
participation in the aggravation of the Philippines, September 30, 1949)
injury or loss. Rules
Concept of Impossibility to Fulfill General Rule: No person shall be responsible for those
events.
In considering the effect of the impossibility of the
Exceptions:
performance on the right s of the parties, it is neceessay
1. When expressly specified by law, or
to keep in mind the distinction between:
2. When it is otherwise declared by stipulation, or
• (1) Natural Impossibility, preventing the 3. When the nature of the obligation requires the
performance from the nature of the thing; and assumption of risk (violenti not fit injuria)
(2) impossibility in fact, in the absence of
(1) When the law declares
inherent impossibility in the nature of the thing
stipulated to be performed. In the words of one
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 59 of 96

(1) Art 129, Upon the dissolution of the conjugal (2) If he keeps it longer than the
Family Code. partnership regime, the following period stipulated, or after the
procedure shall apply: (6) Unless accomplishment of the use for
the owner had been indemnified which the commodatum has been
from whatever source, the loss or constituted;
deterioration of movables used for (3) If the thing loaned has been
the benefit of the family, belonging delivered with appraisal of its value,
to either spouse, even due to unless there is a stipulation
fortuitous event, shall be paid to exempting the bailee from
said spouse from the conjugal responsibility in case of a fortuitous
funds, if any. event;
(2) Art 1165 Article 1165. When what is to be (4) If he lends or leases the thing to
delivered is a determinate thing, the a third person, who is not a
creditor, in addition to the right member of his household;
granted him by article 1170, may (5) If, being able to save either the
compel the debtor to make the thing borrowed or his own thing, he
delivery. chose to save the latter. (1744a and
(3) Art 1263 Article 1263. In an obligation to 1745)
deliver a generic thing, the loss or (7) Art 1979 Article 1979. The depositary is liable
destruction of anything of the same (Deposit) for the loss of the thing through a
kind does not extinguish the fortuitous event:
obligation. (n)
(4) Art 2147 Article 2147. The officious manager (1) If it is so stipulated;
shall be liable for any fortuitous (2) If he uses the thing without the
event: depositor's permission;
(3) If he delays its return;
(1) If he undertakes risky (4) If he allows others to use it,
operations which the owner was not even though he himself may have
accustomed to embark upon; been authorized to use the same.
(2) If he has preferred his own (n)
interest to that of the owner; (3) Assumption of Risk
(3) If he fails to return the property It must likewise be emphasized that pursuant to Articles
or business after demand by the 1174 and 1262 of the New Civil Code, liability attaches
owner; even if the loss was due to a fortuitous event if "the
(4) If he assumed the management
nature of the obligation requires the assumption
in bad faith. (1891a)
of risk". Carnapping is a normal business risk for
(5) Art 2148 Article 2148. Except when the
those engaged in the repair of motor vehicles. For
management was assumed to save
property or business from imminent just as the owner is exposed to that risk so is the repair
danger, the officious manager shall shop since the car was entrusted to it. That is why,
be liable for fortuitous events: repair shops are required to first register with the
Department of Trade and Industry (DTI) and to secure
(1) If he is manifestly unfit to carry an insurance policy for the "shop covering the property
on the management; entrusted by its customer for repair, service or
(2) If by his intervention he maintenance" as a pre-requisite for such
prevented a more competent registration/accreditation. Violation of this statutory duty
person from taking up the constitutes negligence per se. Having taken custody of
management. the vehicle BROADWAY MOTOR SALES CORPORATION is
(6) Art 1942 Article 1942. The bailee is liable for obliged not only to repair the vehicle but must also
(Commodatum) the loss of the thing, even if it
provide the customer with some form of security for his
should be through a fortuitous
property over which he loses immediate control. An
event:
owner who cannot exercise the seven (7) juses or
(1) If he devotes the thing to any attributes of ownership — the right to possess, to use
purpose different from that for and enjoy, to abuse or consume, to accessories, to
which it has been loaned; dispose or alienate, to recover or vindicate and to the
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 60 of 96

fruits — 18 is a crippled owner. Failure of the repair like him, would have joined the marathon if he had
shop to provide security to a motor vehicle owner would known of or appreciated the risk of harm or
leave the latter at the mercy of the former. (Co vs Court even death from vehicular accident while
of Appeals, June 22, 1998) running in the organized running event. Without
question, a marathon route safe and free from
Abrogar vs Cosmos Bottling Co (March 15, foreseeable risks was the reasonable expectation of
2017) every runner participating in an organized running
The doctrine of assumption of risk means that one event.
who voluntarily exposes himself to an obvious, known
and appreciated danger assumes the risk of injury Neither was the waiver by Rommel, then a minor, an
that may result therefrom. It rests on the fact that the effective form of express or implied consent in the
person injured has consented to relieve the defendant context of the doctrine of assumption of risk. There is
of an obligation of conduct toward him and to take his ample authority, cited in Prosser,to the effect that a
chance of injury from a known risk, and whether the person does not comprehend the risk involved
former has exercised proper caution or not is in a known situation because of his youth, or
immaterial. In other words, it is based on voluntary lack of information or experience, and thus will
consent, express or implied, to accept danger not be taken to consent to assume the risk.
of a known and appreciated risk; it may
sometimes include acceptance of risk arising from the
defendant's negligence, but one does not ordinarily Monetary Obligations
assume risk of any negligence which he does not Article 1175. Usurious transactions shall be governed
know and appreciate. by special laws. (n)

As a defense in negligence cases, therefore, the Article 1176. The receipt of the principal by the
doctrine requires the concurrence of three elements, creditor without reservation with respect to the
namely: interest, shall give rise to the presumption that said
(1) the plaintiff must know that the risk is present; interest has been paid.
(2) he must further understand its nature; and
(3) his choice to incur it must be free and voluntary. The receipt of a later installment of a debt without
According to Prosser: "Knowledge of the risk is the reservation as to prior installments, shall likewise raise
watchword of assumption of risk." the presumption that such installments have been
paid.
Here, the concurrence of the three elements Usury
was not shown to exist. -Article 1175. Usurious transactions shall be governed by
1. Rommel could not have assumed the risk of death special laws.
when he participated in the race because death was
-Article 1961. Usurious contracts shall be governed by
neither a known nor normal risk incident to
the Usury Law and other special laws, so far as they are
running a race. Although he had surveyed the route
prior to the race and should be presumed to know not inconsistent with this Code.
that he would be running the race alongside moving -Usury may be defined as contracting for or receiving
vehicular traffic, such knowledge of the general something in excess of the amount allowed by law for
danger was not enough, for some authorities have the loan or forbearance of money, goods, or chattels. It
required that the knowledge must be of the is the taking of more interest for the use for money,
specific risk that caused the harm to him. In goods or chattels or credit than the law allows.
theory, the standard to be applied is a subjective one,
and should be geared to the particular plaintiff and his Ignacio vs Ragasa (Jan 29, 2020)
situation, rather than that of the reasonable person of The term "forbearance," within the context of usury
ordinary prudence who appears in contributory law, has been described as a contractual obligation of
negligence. He could not have appreciated the risk of a lender or creditor to refrain, during a given
being fatally struck by any moving vehicle while period of time, from requiring the borrower or
running the race. debtor to repay the loan or debt then due and
2. Instead, he had every reason to believe that the payable.
organizer had taken adequate measures to guard all
participants against any danger from the fact that he Forbearance of money, goods or credits, therefore,
was participating in an organized marathon. Stated refers to arrangements other than loan agreements,
differently, nobody in his right mind, including minors where a person acquiesces to the temporary
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 61 of 96

use of his money, goods or credits pending the The right to interest arises only by virtue of a contract
happening of certain events or fulfillment of or by virtue of damages for delay or failure to pay the
certain conditions. Consequently, if those principal loan on which interest is demanded.
conditions are breached, said person is entitled not
only to the return of the principal amount paid, but
also to compensation for the use of his money which Nacar vs Gallery Frames (August 13, 2013)
would be the same rate of legal interest applicable to the Bangko Sentral ng Pilipinas Monetary Board (BSP-
a loan since the use or deprivation of funds therein is MB), in its Resolution No. 796 dated May 16, 2013,
similar to a loan. approved the amendment of Section 2 34 of Circular
No. 905, Series of 1982 and, accordingly, issued
This case, however, does not involve an acquiescence Circular No. 799, 35 Series of 2013, effective July 1,
to the temporary use of a party’s money but the 2013, the pertinent portion of which reads:
performance of a brokerage service.
The Monetary Board, in its Resolution No. 796 dated
16 May 2013, approved the following revisions
Gozales-Saldana v. Spouses Niamatali governing the rate of interest in the absence of
(November 21, 2018) stipulation in loan contracts, thereby amending
e kinds of interest that may be imposed in a judgment Section 2 of Circular No. 905, Series of 1982:
are the monetary interest and the compensatory
interest. In this regard, the Court has expounded in Section 1. The rate of interest for the loan or
Siga-an v. Villanueva: forbearance of any money, goods or credits and the
rate allowed in judgments, in the absence of an
Interest is a compensation fixed by the parties express contract as to such rate of interest, shall be
for the use or forbearance of money. This is six percent (6%) per annum.
referred to as monetary interest.
Article 1956. No interest shall be due unless it has Section 2. In view of the above, Subsection X305.1 36
been expressly stipulated in writing. As can be of the Manual of Regulations for Banks and Sections
gleaned from the foregoing provision, payment of 4305Q.1, 37 4305S.3 38 and 4303P.1 39 of the
monetary interest is allowed only if: (1) there was an Manual of Regulations for Non-Bank Financial
express stipulation for the payment of interest; and Instit11tions are hereby amended accordingly.
(2) the agreement for the payment of interest was
reduced in writing. The concurrence of the two This Circular shall take effect on 1 July 2013.
conditions is required for the payment of monetary
interest. Thus, we have held that collection of interest Thus, from the foregoing, in the absence of an
without any stipulation therefor in writing is prohibited express stipulation as to the rate of interest that
by law. would govern the parties, the rate of legal interest for
loans or forbearance of any money, goods or credits
and the rate allowed in judgments shall no longer be
Interest may also be imposed by law or by twelve percent (12%) per annum - as reflected in
courts as penalty or indemnity for damages. the case of Eastern Shipping Lines 40 and Subsection
This is called compensatory interest. X305.1 of the Manual of Regulations for Banks and
There are instances in which an interest may be Sections 4305Q.1, 4305S.3 and 4303P.1 of the
imposed even in the absence of express stipulation, Manual of Regulations for Non-Bank Financial
verbal or written, regarding payment of interest. Institutions, before its amendment by BSP-MB Circular
Article 2209 of the Civil Code states that if the No. 799 — but will now be six percent (6%) per
obligation consists in the payment of a sum of money, annum effective July 1, 2013. It should be noted,
and the debtor incurs delay, a legal interest of 12% nonetheless, that the new rate could only be applied
per annum may be imposed as indemnity for damages prospectively and not retroactively.
if no stipulation on the payment of interest was
agreed upon. Likewise, Article 2212 of the Civil Code Consequently, the twelve percent (12%) per
provides that interest due shall earn legal interest annum legal interest shall apply only until June
from the time it is judicially demanded, although the 30, 2013. Come July 1, 2013 the new rate of six
obligation may be silent on this point. percent (6%) per annum shall be the prevailing
rate of interest when applicable.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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Presumptions in Payment
Article 1176. The receipt of the principal by the
Specific Equivale Substitu Dem
creditor without reservation with respect to the
Perform nt te and
interest, shall give rise to the presumption that said
ance Perform Perform for
interest has been paid.
ance ance Undo
ing
The receipt of a later installment of a debt without
To give (1165)
reservation as to prior installments, shall likewise raise
Determin ✓ ✓ x x
the presumption that such installments have been
ate
paid.
Things
Indeterm ✓ ✓ ✓ x
RCBC vs Buenaventura (October 6, 2010) inate
RCBC's own Amortization Schedule readily shows the things
applicability of Article 1176 of the Civil Code, which To do (1167)
states: Ordinary x ✓ ✓ ✓ (if
Art. 1176. The receipt of the principal by the creditor, personal poorl
without reservation with respect to the interest, shall Oblligatio y
give rise to the presumption that the said interest has ns done)
been paid. Strictly x ✓ x x
Personal
The receipt of a later installment of a debt without Obligatio
reservation as to prior installments, shall likewise raise ns
the presumption that such installments have been Not to x ✓ x ✓
paid. do
(1168)
Respondent's passbooks indicate that RCBC continued
to receive his payments even after it made demands
for him to pay his past due accounts, and even after Subsidiary Remedies of Creditors
the auction sale. 1. Pursue the property in possession of the debtor to
satisfy their claims, except those exempt from law
RCBC cannot deny receipt of the payments, even
when it claims that the deposits were "not • Article 2236. The debtor is liable with all his
withdrawn."20 It is not respondent's fault that RCBC property, present and future, for the fulfillment
did not withdraw the money he deposited. His of his obligations, subject to the exemptions
obligation under the mortgage agreement was to provided by law. (1911a)
deposit his payment in the savings account he had • Ex. Family Code Art 155. The family home
opened for that purpose, in order that RCBC may shall be exempt from execution, forced sale, or
debit the amount of his monthly liabilities therefrom.
attachment.
He complied with his part of the agreement.
2. Exercise all the rights and bring all the actions
This bolsters the conclusion of the CA that respondent of the [debtor] for the same purpose, save those
had no unpaid installments and was not in default as which are inherent inherent in his person -
would warrant the application of the acceleration subrogatory action or accion subrogatoria
clause and the subsequent foreclosure and auction
3. They may also impugn the acts which the debtor may
sale of the property.
have done to defraud them Rescissory action or accion
pauliana
Subsidiary Remedies of the Creditors
Article 1177. The creditors, after having pursued the Nature
property in possession of the debtor to satisfy their
claims, may exercise all the rights and bring all the -the remedies to enforce any of the above rights of the
actions of the latter for the same purpose, save those creditor are subsidiary remedies- it cannot be
which are inherent in his person; they may also instituted except when the party suffering damage has
impugn the acts which the debtor may have done to not other legal means to obtain reparation for the same
defraud them. (1111) -the following successive measures must bee taken

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 63 of 96

by a creditor before he may brin an action for rescission personal property, may be levied upon in like manner
of an allegedly fraudulent sale: and with like effect as under a writ of attachment.

1. Exhaust the properties of the debtor through

levying by attachement and execution upon all
(c) Garnishment of debts and credits. — The officer
the property of the debtor, except such as are
may levy on debts due the judgment obligor and
exempt by law from exection;
other credits, including bank deposits, financial
2. Exercise all the rights and actions of the debtor,
save those personal to him (accion interests, royalties, commissions and other personal
property not capable of manual delivery in the
subragatoria); and
possession or control of third parties.
3. Seek rescission of the contracts executed by the
debtor in fraud of their rights (accion pauliana). • Levy shall be made by serving notice upon
Without availing of the first and second the person owing such debts or having in
remedies, i.e., exhausting the properties of the his possession or control such credits to
debtor or subrogating themselves in Francisco which the judgment obligor is entitled.
Bareng's transmissible rights and actions, The garnishment shall cover only such
petitioners simply undertook the third measure amount as will satisfy the judgment and
and filed an action for annulment of the sale. all lawful fees.
This cannot be done. (SPS Adorable vs CA, Nov Overview of Civil Procedure Cases
25, 1999) 1. Filing of the complaint
(1) Pursuing Leviable Property (Rules of Court. 2. Summons will be given to the opposing party
Rule 39. Section 9) 3. The defendant will file his answer
4. Pre-trial will ensue to determine issues and
(b) Satisfaction by levy. — If the judgment
admissions
obligor[Losing Party] cannot pay all or part of the
5. Trial (plaintiff presents evidence then the
obligation in cash, certified bank check or other defendant)
mode of payment acceptable to the judgment 6. Judgement will eb rendered
oblige[prevailing party], 7. Execution and satisfaction
1. the officer shall levy upon the properties of the
judgment obligor of every kind and nature whatsoever (2) Accion Subragatoria
which may be disposed, of for value and not otherwise According to Tolentino:
exempt from execution giving the latter [judgement
obligee] the option to immediately choose which • This is resorted to in order to preserve or
property or part thereof may be levied upon, sufficient recover for the patrimony of the debtor the
to satisfy the judgment. product of such action, and then obtain
therefrom the satisfaction of his own credit
2. If the judgment obligor does not exercise the • Previous approval is not necessary
option, the officer shall first levy on the personal • Only to the extent necessary to satisfy the claim
properties, if any, and then on the real properties if the According to Pineda:
personal properties are insufficient to answer for the
judgment. • The creditor merely acts in the name and for the
account of the debtor after exhausting the
3. The sheriff shall sell only a sufficient portion of the assets of the latter but not enough to satisfy the
personal or real property of the judgment obligor which claims of the creditor
has been levied upon. • Article 1052. If the heir repudiates the
4. When there is more property of the judgment obligor inheritance to the prejudice of his own creditors,
than is sufficient to satisfy the judgment and lawful fees, the latter may petition the court to
he must sell only so much of the personal or real authorize them to accept it in the name of
property as is sufficient to satisfy the judgment and the heir.
lawful fees.
The acceptance shall benefit the creditors
5. Real property, stocks, shares, debts, credits, and only to an extent sufficient to cover the
other personal property, or any interest in either real or amount of their credits. The excess, should
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 64 of 96

there be any, shall in no case pertain to the Anchor Savings Bank vs. Furigay (March 13,
renouncer, but shall be adjudicated to the 2013)
persons to whom, in accordance with the rules An accion pauliana accrues only when the creditor
established in this Code, it may belong. (1001) discovers that he has no other legal remedy for the
(2) Accion Subrogatoria satisfaction of his claim against the debtor other than
Exercise of debtor’s “save those which are an accion pauliana. The accion pauliana is an action of
rights inherent in his person” a last resort.
1. The creditor has an 1. Legal Support. Family
interest in the right or Code. Art 205. The right For as long as the creditor still has a remedy at law
action not only because to receive support under for the enforcement of his claim against the debtor,
of his credit, but because this title as well as any the creditor will not have any cause of action against
of the insolvency of the money or property the creditor for rescission of the contracts entered
debtor. obtained as such support into by and between the debtor and another person
2. Malicious or negligent shall not be levied or persons. Indeed, an accion pauliana presupposes a
in action of the debtor in upon on attachment or judgment and the issuance by the trial court of a writ
the exercise of his right execution. of execution for the satisfaction of the judgment and
or action of such 2. Parental Authority over the failure of the Sheriff to enforce and satisfy the
seriousness as to the property of a minor judgment of the court. It presupposes that the
endanger the claim of (Art 225 of the Family creditor has exhausted the property of the debtor.
the creditor. Code)
3. The credit of the 3. Rights inherent in the The date of the decision of the trial court against the
debtor against debtor such as revoking debtor is immaterial. What is important is that the
donations on account of credit of the plaintiff antedates that of the fraudulent
ingratitude. (Art 86 of the alienation by the debtor of his property. After all, the
Family Code) decision of the trial court against the debtor will
retroact to the time when the debtor became
(3) Accion Pauliana
indebted to the creditor.
With respect to an accion pauliana, it is required that the
ultimate facts constituting the following requisites must
all be alleged in the complaint, viz.: Buenviaje vs SPS Salonga (October 5, 2016)
Pursuant to Articles 117765 and 131366 of the Civil
1) That the plaintiff asking for rescission, has credit prior Code, creditors are given remedies whenever their
to the alienation, although demandable later; debtors perform acts or omissions or enter into
2) That the debtor has made a subsequent contract contracts that tend to defraud the former of what is
conveying a patrimonial benefit to a third person; due them. Such remedy comes in the form of
3) That the creditor has no other legal remedy to satisfy rescission under Articles 1381(3)67 in relation to
his claim, but would benefit by rescission of the Articles 138368 and 138469 of the Civil Code.
conveyance to the third person;
4) That act being impugned is fraudulent; and Rescission (as contemplated in Articles 1380 to 1389
5) That the third person who received the property of the Civil Code) is a remedy granted by law to the
conveyed, if by onerous title, has been an accomplice in contracting parties and even to third persons, to
secure the reparation of damages caused to
the fraud.
them by a contract, even if this should be valid,
A cursory reading of the allegations of ASB's complaint by restoration of things to their condition at the
would show that it failed to allege the ultimate facts moment prior to the celebration of the
constituting its cause of action and the prerequisites that contract. It implies a contract, which even if
initially valid, produces a lesion or a pecuniary
must be complied before the same may be instituted.
damage to someone.
ASB, without availing of the first and second remedies,
that is, exhausting the properties of CTS, Henry H. In the rescission by reason of lesion or economic
Furigay and Genilda C. Furigay or their transmissible prejudice, the cause of action is subordinated to the
rights and actions, simply undertook the third measure existence of that prejudice, because it is the raison d
and filed an action for annulment of the donation. This 'etre as well as the measure of the right to rescind.
cannot be done. (Anchor Savings Bank vs Furigay, March Hence, where the defendant makes good the
13, 2013) damages caused, the action cannot be

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 65 of 96

maintained or continued, as expressly provided transmitted through his death to another or

in Articles 1383 and 1384. others either by his will or by operation of
law. (n)
-Article 777. The rights to the succession
Illustration
are transmitted from the moment of the
On the due date, D could not pay his obligation in the death of the decedent. (657a)
amount of P 300, 000. 00. However, D owns a car
worth about P 160,000.00 and X is indebted to him for 2. By Agreement of the Parties
P40,000. Before the due date of the obligation, D sold -Gratuitous: Article 6. Rights may be
his land worth 200,000.00 to Y. waived, unless the waiver is contrary to law,
public order, public policy, morals, or good
Under the circumstances, the rights granted to under customs, or prejudicial to a third person with
the law are as follows: a right recognized by law. (4a)
-Onerous: Article 1624. An assignment of
(a) He may bring an action for the collection of the
creditors and other incorporeal rights shall
amount of P 300,000.00 with the right to damages.
be perfected in accordance with the
(b) If, in spite of the judgement rendered, D fails to pay
provisions of article 1475. (n)
the amount due, C can ask for the attachment of
Exceptions:
D’s car so that the car may be sold and payment
1. When the law so provides that rights are
made from the proceeds of the sale.
intransmissible: Strictly personal rights pr intuitu
(c) He may ask the court to order X not to pay D so
that payment may be made to him (c)
personae
(d)He may ask the court to brescind or cancel the sale A) Usufruct: Art 603. Usufruct is extinguished:
made by D to Y on the ground that the transaction is (1) By the death of the usufructuary, unless a
fraudulent in case he (c) cannot recover in any other contrary intention clearly appears;
manner his credit. B) Piece of Work: Art 1726. When a piece of
work has been entrusted to a person by reason
Principle of Transmissibility of Rights
of his personal qualifications, the contract is
Article 1178. Subject to the laws, all rights acquired in rescinded upon his death.
virtue of an obligation are transmissible, if there has
C) Partnership: Art 1830. Dissolution is caused:
been no stipulation to the contrary. (1112)
(5) By the death of any partner;
Art 1311. Contracts take effect only between the
D) Agency: Art 1919. Agency is extinguished (3)
parties, their assigns and heirs, except in case where the
By the death… of the principal agent
rights and obligations arising from the contract are not
E) Commodatum: Art 1939. Commodatum is
transmissible by their nature, or by stipulation or by
purely personal in character. Consequently: (1)
provision of law. The heir is not liable beyond the value
The death of either the bailor or the bailee
of the property he received from the decedent.
extinguishes the contract
Rules and Modes 2. When there is an agreement to the contrary-by
General Rule: All rights acquired in virtue of an contractual stipulation off the parties
obligation are transmissible. 3. By their nature, such rights are intransmissible
The Obligation to furnish support is personal and is
• According to Paras, rights refer to the power extinguished upon the death of the person obliged to
or privilege given to one person and as a give support (Hermosa vs Longara)
rule demandable of another (Black’s Law
Dictionary), as the right to recover a debt justly Estate of K.H. Hemady V. Lizon Surety Co., Inc.,
due. (November 28, 1956)
• Existing and Patrimonial Rights Under our law, therefore, the general rule is that a
• How transmitted? party’s contractual rights and obligations are
1. By Law transmissible to the successors. The rule is a
-Article 774. Succession is a mode of consequence of the progressive
“depersonalization” of patrimonial rights and
acquisition by virtue of which the property,
duties that, as observed by Victorio Polacco, has
rights and obligations to the extent of the
characterized the history of these institutions.
value of the inheritance, of a person are
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 66 of 96

5. Articles 1179-1192
From the Roman concept of a relation from person to CHAPTER 3
person, the obligation has evolved into a relation from
Different Kinds of Obligations
patrimony to patrimony, with the persons occupying
only a representative position, barring those rare Overview of Primary Classifications
cases where the obligation is strictly personal, i.e., is 1.) Pure and conditional obligations (Arts. 1179-
contracted intuitu personae, in consideration of its
1192)
performance by a specific person and by no other.
2.) Obligations with a period (Arts 1193-1198)
The transition is marked by the disappearance of the
3.) Alternative (Arts. 1199-1205) and facultative
imprisonment for debt.
obligations (Art. 1206)
4.) Joint and solidary obligations (Arts. 1207-1222)
Of the three exceptions fixed by Article 1311, the 5.) Divisible and indivisible obligations (Arts 1223-
nature of the obligation of the surety or guarantor 1225)
does not warrant the conclusion that his peculiar 6.) Obligations with a penal clause (Arts 1226-1230)
individual qualities are contemplated as a principal
inducement for the contract. What did the creditor Section 1
Luzon Surety Co. expect of K. H. Hemady when it
accepted the latter as surety in the counterbonds? Pure and conditional obligations
Nothing but the reimbursement of the moneys that
Article 1179. Every obligation whose performance
the Luzon Surety Co. might have to disburse on
does not depend upon a future or uncertain event, or
account of the obligations of the principal debtors.
upon a past event unknown to the parties, is
This reimbursement is a payment of a sum of money,
demandable at once.
resulting from an obligation to give; chan
roblesvirtualawlibraryand to the Luzon Surety Co., it
Every obligation which contains a resolutory condition
was indifferent that the reimbursement should be
shall also be demandable, without prejudice to the
made by Hemady himself or by some one else in his
effects of the happening of the event.
behalf, so long as the money was paid to it.
Article 1181. In conditional obligations, the
acquisition of rights, as well as the extinguishment or
The second exception of Article 1311, p. 1, is
loss of those already acquired, shall depend upon the
intransmissibility by stipulation of the parties.
happening of the event which constitutes the condition.
Being exceptional and contrary to the general rule,
this intransmissibility should not be easily implied, but
must be expressly established, or at the very least, Concepts
clearly inferable from the provisions of the contract
itself, and the text of the agreements sued upon Pure Obligations- demandable at once because its
nowhere indicate that they are non-transferable. performance does not depend upon a future or uncertain
event, or upon a past event unknown to the parties

The third exception to the transmissibility of -should not be performed right away or not due at once;
obligations under Article 1311 exists when they are the creditor will demand from the debtor
“not transmissible by operation of law”. The
provision makes reference to those cases where the Conditional obligations-the acquisition of rights, as
law expresses that the rights or obligations are well as the extinguishment or loss of those already
extinguished by death, as is the case in legal support acquired shall depend upon the happening of the event
(Article 300), parental authority (Article 327), usufruct which constitutes the condition
(Article 603), contracts for a piece of work (Article
1726), partnership (Article 1830 and agency (Article 1.) Suspensive Conditional Obligations-
1919). By contract, the articles of the Civil Code that acquisition of rights depend upon the happening
regulate guaranty or suretyship (Articles 2047 to of the event which constitutes the condition
2084) contain no provision that the guaranty is (1181); its performance depends upon a future
extinguished upon the death of the guarantor or the or uncertain event, or upon a past event unknown
surety. to the parties (1179)
2.) Resolutory Conditional Obligations –
extinguishment or loss of those already acquired
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depend upon the happening of the event which the parties” still refer to a matter of futurity as
constitutes the condition (1181); it shall also be you will know it in the future. By the time that
demandable, without prejudice to the effects of event already occur, that obligation is already due
the happening of the event (1179) and demandable. That phrase refers to an
occasion that has already happened, but
Pure Obligations discovering that or some conditions depending on
In connection with this obligation to deliver, occurring in that event will be due in the future. Example, your
a contract of sale like those in question, the rule in North cellphone is lost then you promised your friend
America is that when the time of delivery is not fixed in that you will give him a cash in return. The fact
the contract, time is regarded unessential. But it of looking and finding of the phone is still a matter
doesn’t mean that the debtor shall not performed any of futurity so that obligation will be due and
acts. These obligations are not subject to a period or demandable in the future.
deadline. -Conditions will necessarily refer to some form of
future events
• When the time of delivery is not fixed or stated or
is stated in general and indefinite terms, time is 2. Uncertainty of its occurrence
not of the essence of the contract 3. It has an effect upon the efficaciousness or
• In such case, the delivery must be made within a demandability of the obligation
reasonable time. Reasonableness will depend
upon the factual circumstances. -must wield and influence on a legal or juridical
• “The law implies, however, that if no time is fixed, relationship
delivery shall be made within a reasonable time,
in the absence of anything to show that an Condition v. Period
immediate delivery intended.” Condition Period
• “When the contract provides for delivery as soon An uncertain event A period has been defined
as possible, the seller is entitled to a reasonable which wields an as a space of time which
time, in view of all the circumstances, such as the influence on a legal or has an influence on
necessities of manufacture, or of putting goods in juridical relationship obligation as a result of a
condition to delivery. The term does not mean juridical act, and either
immediately or that the seller must stop all his suspends their
other work and devote himself to that particular demandability or produces
order. But the seller must nevertheless act with their extinguishment
all reasonable diligence or without reasonable Refers to both future Refers only to future
delay. It has been held that a requirement that events and past event events; whose fulfillment a
the shipment of goods should be the earliest unknown to the parties day certan has been fixed
(1193)
possible must be construed as meaning that the
Uncertainty of its Occurrence is certain or
goods should be sent as soon as the seller could
occurrence determinate
possibly send them, and that it signified rather
more than that the goods should be sent within a
Ex: Article 1180. When the
reasonable time. (Smith Bell & Co. Ltd vs Matti, debtor binds himself to pay
March 9, 1922) when his means permit him
to do so, the obligation
Concept of condition
shall be deemed to be one
An uncertain event which wields an influence on a legal with a period, subject to the
or juridical relationship (Manresa). So it must have some provisions of article 1197
form of effect, otherwise that is not the condition that we
are talking about in this part of obligations and contracts. The law strongly presumes
solvency in order for you to
Requisites of conditional obligations: pay your indebtedness to
someone.
1. Futurity
-future event, or upon a past event unknown to • Both are either suspensive or resolutory
the parties (1179). That “past event unknown to

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• Both determine the demandability of the The happening of which The happening of which
obligation gives rise to the extinguishes the obligation
obligation
“condition antecedent or “condition subsequent”
Types of Conditions (As to its Source) precedent”
1. Legal conditions Obligation is Obligation is demandable
These are conditions imposed by law and is not demandable upon the at once; subject to the
explicitly agreed upon by the parties. These happening of the happening of the condition
conditions are deemed imposed between both condition
parties. Results in the acquisition Results in the
Example: Family Code. Article 81. Everything of rights extinguishment or loss of
stipulated in the settlements or contracts referred rights already acquired
to in the preceding articles in consideration of a If it does not take place, The legal tie is
future marriage, including donations between the the legal tie does not consolidated
prospective spouses made therein, shall be appear
rendered void if the marriage does not take place. The effects of the The effects of the
However, stipulations that do not depend upon obligation do not flow obligation flow, subject to
until the happening of termination by the
the celebration of the marriages shall be valid.
the obligation condition’s occurrence

Article 1182. When the fulfillment of the condition

2. Contractual or Conventional Conditions depends upon the sole will of the debtor, the
These are instances where the parties agree conditional obligation shall be void. If it depends upon
between them that there will be certain chance or upon the will of a third person, the
conditions that they have to observe with respect obligation shall take effect in conformity with the
to the agreement that they’ve reached or with provisions of this Code.
respect to the contract that they executed
between both of them.
Types of Conditions (as to the will of the parties)

3. Judicial Conditions 1. Potestative or Facultative Conditions- those

which are dependent on the will of either one of
Example: conditions on probation
the parties
Types of Conditions (As to its Imposition)
On the will of the On the will of the
1. Condition imposed upon the perfection of debtor creditor
the contract Suspensive-Void (1182) Suspensive and
-failure to comply results in the failure of a Resolutory- Valid resolutory-valid
contract

2. Condition imposed on the performance of an On the will of the debtor; Suspensive- Void (1182);
obligation Resolutory- valid

-failure to comply only gives the other party the Why? Because the obligation is demandable at once.
option either to refuse to proceed or to waive the Whereas in suspensive, the debtor can escape his
condition liability if the conditions are just based solely on the will
of the debtor.
(Hilltop Market Fish Vendors’ Association Inc. v. Yaranon,
July 12, 2017) Example of suspensive potestative condition: The debtor
promised you to pay an amount of Php 10,000 if he feels
Types of Conditions (as to its effect on the like it. Obviously, if he does not feel to pay he will never
obligation) pay.
Suspensive Resolutory Conditions While is resolutory potestative condition, it is already
Conditions demandable on the part of the creditor. The debtor will

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promise to pay an amount of Php 10,000 until if he does In the case at bar, the following conditions were
not want to pay. imposed by the respondent company for the
perfection of the contract of insurance:
a) A policy must have been issued;
b) The premiums paid; and
2. Casual conditions- depends upon chance or
c) The policy must have been delivered to and
upon the will of a third person
accepted by the applicant while he is in good
3. Mixed conditions-partly potestative and partly health
casual The condition imposed by the corporation that the
policy must have been delivered to and accepted by
Rationale on Potestative or Facultative Conditions
the applicant while he is in good health can hardly be
• The Code prohibits purely potestative, considered as potestative or facultative condition. On
suspensive, conditional obligations that depend the contrary, the health of the applicant at the time of
on the whims of the debtor, because such the delivery of the policy is beyond the control or will
obligations are usually not meant to be fulfilled. of the insurance company. Rather, the condition is a
Indeed, to allow the fulfillment of conditions to suspensive one whereby the acquisition of rights
depends upon the happening of and event which
depend exclusively on the debtors will would be
constitutes the condition. In this case, the suspensive
to sanction illusory obligations.
condition was the policy must have been delivered
• In Spanish jurisprudence, a condition like that and accepted by the applicant while he is in good
here under discussion is designated by Manresa health. There was non-fullfillment of the condition
a facultative condition and we gather from his resulted in the non-perfection of the contract.
comment on articles 115 and 1119 of the Civil
Code that a condition, facultative as to the
debtor, is obnoxious to the first sentence Cebu Autometic Motors, Inc. v. General Milling
contained in article 1115 and renders the whole Corp.,
obligation void. That statement is no doubt (Aug. 25, 2010)
correct in the sense intended by the learned Exceptionally, under the law and, to a limited degree,
author but it must be remembered that he by agreement of the parties, extrajudicial remedies
evidently has in mind the suspensive condition, may become available such as, in the latter case, an
such as is contemplated in article 1115. Said option to rescind or terminate a contract upon the
violation of a resolutory facultative condition.
article can have no application to the resolutory
condition, the validity of which is recognized in
In the case of lease agreements, despite the absence
article 1113 of the Civil Code. In other words, a
of an explicit stipulation, that option has been reserved
condition at once facultative and resolutory may by law in favor of a lessee under Article 1673 of the
be valid even though the condition is made to Civil Code by providing that the lessor may judicially
depend upon the will of the obligor. (Taylor v. eject the lessee for, among other grounds, a violation
Uy Tieng Piao, October 2, 1922). of any of the conditions agreed upon in the contract.
The provision, read in conjunction with Section 2, Rule
70, of the 1997 Rules of Civil Procedure, would, absent
Perez v. Court of Appeals a contrary stipulation, merely require a written demand
(January 28, 2000) on the lessee to pay or to comply with the conditions
Petitioner insists that the condition imposed by of the lease and to vacate the premises prior to the
respondent corporation that a policy must have been institution of an action for ejectment. The above
delivered to and accepted by the proposed insured in provisions, in effect, authorizes the lessor to terminate
good health is potestative being dependent upon the extrajudiially the lease (with the same effect as
will of the corporation and is therefore null and void. rescission) by simply serving due notice to the lessee.
We do not agree.
A potestative condition depends upon the exclusive
will of one of the parties. For this reason, it is
considered void. Article 1182 of the New Civil Code Article 1183. Impossible conditions, those contrary to
states: When the fulfillment of the condition depends good customs or public policy and those prohibited by
upon the sole will of the debtor, the conditional law shall annul the obligation which depends upon
obligation shall be void. them. If the obligation is divisible, that part thereof

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which is not affected by the impossible or unlawful Article 1184 (positive conditions)
condition shall be valid.
Article 1184. The condition that some event
The condition not to do an impossible thing shall be happen at a determinate time shall extinguish the
considered as not having been agreed upon. obligation as soon as the time expires or if it has
become indubitable that the event will not take
place.
Heirs of San Miguel v. CA
(Sept. 5, 2001)
Severina’s heirs anchor their claim on the kasunduan, Example: A binds himself to give to B Php 2,000 if
stressing on their freedom to stipulate and the binding the latter passes the upcoming bar examinations in
effect of contracts. This argument is misplaced. his first attempt, and B flunks the examinations, the
obligation is extinguished.
True, in contracts of sale, the vendor need not possess
Article 1185 (negative conditions)
title to the thing sold at the perfection of the
contract. However, the vendor must possess title and Article 1185. The condition that some event will
must be able to transfer title at the time of delivery. In not happen at a determinate time shall render the
a contract of sale, title only passes to the vendee upon obligation effective from the moment the time
full payment of the stipulated consideration, or upon indicated has elapsed, or if it has become evident
delivery of the thing sold. that the event cannot occur.

Under the facts of the case, Severinas heirs are not in If no time has been fixed, the condition shall be
a position to transfer title. Without passing on the deemed fulfilled at such time as may have
question of who actually owned the land covered by probably been contemplated, bearing in mind the
LRC Psu -1312, we note that there is no proof of nature of the obligation.
ownership in favor of Severinas heirs. In fact, it is a
certain Emiliano Eugenio, who holds a tax declaration
over the said land in his name. Though tax declarations
do not prove ownership of the property of the Example: A binds himself to give Php 5,000 to B
declarant, tax declarations and receipts can be strong provided that the latter shall not get married before
evidence of ownership of land when accompanied by reaching the age of 25, the condition is negative. If B is
possession for a period sufficient for not yet married at the time when he finally reaches the
prescription. Severinas heirs have nothing to counter age 25, the obligation becomes effective.
this document.

Therefore, to insist that Dominador, et al. pay the price Article 1185 was applicable based on the conditions
under such circumstances would result in Severinas
(negative condition)
heirs unjust enrichment.
The Wellex Group, Inc. vs. U-Land Airlines, Co.
Ltd.
(Jan. 14, 2015)
Petitioner Wellex and respondent U-Land boimd
Types of Conditions (as to the possibility of its themselves to negotiate with each other within a 40-
occurrence) day period to enter into a share purchase agreement.
If no share purchase agreement was entered into,
• Impossible conditions
both parties would be freed from their respective
1. Legal impossibility- contrary to good customs or
undertakings.
public policy and those prohibited by law; effect:
annuls the obligation It is the non-occurrence or non-execution of the share
2. Physical impossibility – not to do an impossible purchase agreement that would give rise to the
thing; effect: considered as not having been obligation to both parties to free each other from their
agreed upon respective undertakings. This includes returning to
• Possible conditions each other all that they received in pursuit of entering
into the share purchase agreement.
Types of Conditions (within a period)

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At the lapse of the 40-day period, the parties failed to 3. That such prevention must have been
enter into a share purchase agreement. This lapse is voluntary or willful in character.
the first circumstance, provided for in Article 1185
that gives rise to the obligation. Applying Article 1185, Does the doctrine of constructive fulfillment apply
the parties were when obligated to return each other to mixed conditional obligations?
all that they had received in order to be freed from
their respective undertakings. International Hotel Corporation vs. Francisco B.
Joaquin, Jr. and Rafael Suarez
However, the parties continued their negotiations (April 10, 2013)
after the lapse of the 40-day period. They made Article 1186 and Article 1234 of the Civil Code cannot
subsequent transactions with the intention to enter be the source of IHC’s obligation to pay respondents
into the share purchase agreement. Despite that, they IHC argues that it should not be held liable because:
still failed to enter into a share purchase agreement. a) it was Joaquin who had recommended Barnes: b)
Communication between the parties created, and no IHC’s negotiation with Barnes had been neither
further transactions took place. intentional nor willfully intended to prevent Joaquin
from complying with his obligations. IHC’s argument is
It became evident that, once again, the parties would meritorious.
not enter into the share purchase agreement. This is
the second circumstance provided for in Article 1185. Article 1186 refers to the constructive fulfilment of a
Thus, the obligation to free each other from their suspensive condition, whose application calls for two
respective undertakings remained. As such, petitioner requisites, namely: a) the intent of the obligor to
Wellex is obligated to return the remittances made by prevent the fulfillment of the condition and b) the
respondent U-Land, in the same way that respondent actual prevention of the fulfillment. Mere intention
U-Land is obligated to return the certifications of of the debtor to prevent the happening of the
shares of stock and the land titles to petitioner condition, or to place ineffective obstacles to its
Wellex. compliance, without actually preventing the
fulfillment, is insufficient.

Evidently, IHC only relied on the opinion of its

Article 1186-1192 consultant in deciding to transact with Materials
Handling and later on, with Barnes. In negotiating
Consequences in Conditional Obligations
with Barnes, IHC had no intention, willful or
Article 1186. The condition shall be deemed fulfilled otherwise, to prevent Joaquin and Suarez from
when the obligor voluntarily prevents its fulfillment. meeting their undertaking. Such absence of any
intention negated the basis for the CA’s reliance on
Article 1186 of the Civil Code.
Doctrine of constructive fulfillment of suspensive
conditions IHC is nonetheless liable to pay under the rule on
constructive fulfillment of a mixed conditional
Effects: obligations. Notwithstanding the inapplicability of
Article 1186 and Article 1234 of the Civil Code, IHC
• The condition shall be deemed fulfilled when the
was liable based on the nature of the obligation.
obligor voluntarily prevents its fulfillment; so
immediately demandable. Considering that the agreement between the parties
• In prevention, malice or fraud is NOT required, was not circumscribed by a definite period, its
but still liable for damages (violation); but termination was subject to a condition- the happening
should there be malice or fraud, then also liable of a future and uncertain event. The prevailing rule in
for damages (dolo) conditional obligations is that the acquisition of rights,
as well as the extinguishment or loss of those already
Requisites: acquired, shall depend upon the happening of the
event that constitutes the condition.
1. There must be intent on the part of the
debtor or the obligor to prevent compliance
In this case, Joaquin and Suarez’s obligation was
2. The obligor must have actually prevented
subject to the suspensive condition of successfully
the obligee from complying with the securing a foreign loan guaranteed by DBP. To secure
condition a DBP-guaranteed foreign loan did not solely depend

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on the diligence or the sole will of the respondents GR: Once the condition has The courts shall
because it required the action and discretion of third been fulfilled, the effects determine, in each
persons – and able and willing foreign financial shall retroact to the day of case, the retroactive
institution to provide the needed funds, and the DBP the constitution of the effect of the condition
Board of Governors to guarantee the loan. obligation. that has been
XPNs: complied with.
Such third persons could not be legally compelled to 1. Reciprocal
act in a manner favorable to IHC. There is no Conditional
question that when the fulfillment of a condition is Obligations. The
dependent partly on the will of one of the contracting fruits and interests
parties, or of the obligor, and partly on chance, during the pendency
hazard or the will of a third person, the obligation is of the condition shall
mixed. The existing rule in a mixed conditional be deemed to have
obligation is that when the condition was not fulfilled been mutually
but the obligor did all in his power to comply with the compensated (off-
obligation, the condition should be deemed satisfied. set)
2. Unilateral
Considering that the respondents were able to secure Conditional
an agreement with Weston, and subsequently tried to Obligations.
reverse the prior cancellation of the guaranty by DBP, GR: The debtor shall
we rule that they thereby constructively fulfilled their appropriate the fruits
obligation. and interests
received.
XPN: Unless from
Article 1187. The effects of a conditional obligation the nature and
to give, once the condition has been fulfilled, shall circumstances of the
retroact to the day of the constitution of the obligation it should
obligation. Nevertheless, when the obligation imposes be inferred that the
reciprocal prestations upon the parties, the fruits and intention of the
interests during the pendency of the condition shall be person constituting
deemed to have been mutually compensated. If the the same was
obligation is unilateral, the debtor shall appropriate different; thus, it
the fruits and interests received, unless from the shall pertain to the
nature and circumstances of the obligation it should creditor
be inferred that the intention of the person
constituting the same was different. Article 1188. The creditor may, before the fulfillment
of the condition, bring the appropriate actions for the
In obligations to do and not to do, the courts shall preservation of his right.
determine, in each case, the retroactive effect of the
condition that has been complied with. (1120) The debtor may recover what during the same time
Concepts he has paid by mistake in case of a suspensive
condition. (1121a)
Jurado
Reciprocal Obligations Unilateral Obligations
Remedies of Parties Prior to Happening of the
Are those where parties On the other hand, are Condition
are mutually or those where only one of
Creditor Debtor
reciprocally obliged to do the parties, the obligor, is
Bring the appropriate Recover what he has
or give something; obliged to do or give
actions for the paid by mistake (in case
something.
preservation of his right. of a suspensive
condition)
Rules Applicable to both
suspensive and resolutory In case there is not
Conditional Real Conditional
conditions. mistake, recovery cannot
Obligations (to Give) Personal
be made if payment
Obligations (To do,
not to do)
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constituted a waiver of Vda. de Reston should return the sum of P3,774.00

condition. received from the Buot spouses with interest at twelve
(12) per cent per annum from the time the Regional
Trial Court rendered its original decision on June 20,
Spouses Buot vs CA [May 18, 2001] 1977.
Petitioners, however, argue that their obligation to
pay the balance of the purchase price had not arisen Recovery does not only happen by mistake. It can
as the Memorandum of Agreement stipulated that the also happen because of unjust enrichment.
balance of P18,042.00 was payable within six (6)
months from the date the vendor would notify them
Article 1189. When the conditions have been
that the certificate of title of the property could
imposed with the intention of suspending the efficacy
already be transferred in their names. Said argument,
of an obligation to give, the following rules shall be
however, does not change the nature of the contract
observed in case of the improvement, loss or
they entered into, being a contract to sell, so that
deterioration of the thing during the pendency of the
there was no actual sale until full payment was
condition:
made by the vendees, and that on the part of
the vendees, no full payment would be made
(1) If the thing is lost without the fault of the debtor,
until a certificate of title was ready for transfer
the obligation shall be extinguished;
in their names. In her Answer, Encarnacion even
(2) If the thing is lost through the fault of the debtor,
stated that it was agreed that any consummated sale
he shall be obliged to pay damages; it is understood
of the property would be necessarily reflected in
that the thing is lost when it perishes, or goes out of
another instrument. Thus, petitioners clearly had no
commerce, or disappears in such a way that its
right to ask for reconveyance of the property on the
existence is unknown or it cannot be recovered;
ground of fraud as there was no perfected contract of
(3) When the thing deteriorates without the fault of
sale between them and the late Encarnacion Diaz
the debtor, the impairment is to be borne by the
Vda. de Reston. The Court of Appeals also correctly
creditor;
stated thus:
(4) If it deteriorates through the fault of the debtor,
Only the person who has been deprived of his
the creditor may choose between the rescission of the
property through fraud, either actual or constructive
obligation and its fulfillment, with indemnity for
and who was not at fault, may file a personal action
damages in either case;
for reconveyance. The pretension that there was
(5) If the thing is improved by its nature, or by time,
fraud when Mariano was able to obtain a Free Patent
the improvement shall inure to the benefit of the
Title, is not supported by evidence. On the contrary,
creditor;
fraud cannot be presumed and must be established
(6) If it is improved at the expense of the debtor, he
by clear and sufficient evidence (Carreon vs. Agcaoli,
shall have no other right than that granted to the
L-11156, February 23, 1961, 1 SCRA 521; Gutierrez
usufructuary. (1122)
vs. Villegas, L-17117, July 31, 1963, 8 SCRA 527;
Santos vs. Buenaventura, L-22797, September 22,
Article 1190. When the conditions have for their
1966, 18 SCRA 47; Republic vs. Ker & Company, Ltd.,
purpose the extinguishment of an obligation to give,
L-21609, September 29, 1966, 18 SCRA 207;
the parties, upon the fulfillment of said conditions,
Commissioner of Internal Revenue vs. Gonzales, L-
shall return to each other what they have received.
19495, November 24, 1966, 18 SCRA 757; Heng Tong
Textiles Company, Inc. vs. Commissioner of Internal
In case of the loss, deterioration or improvement of
Revenue, L-19737, August 26, 1968, 24 SCRA 767).
the thing, the provisions which, with respect to the
debtor, are laid down in the preceding article shall be
However, under the second paragraph of Article
applied to the party who is bound to return.
1188 of the New Civil Code, even if the Buot
spouses did not mistakenly make partial
As for the obligations to do and not to do, the
payments, inasmuch as the suspensive
provisions of the second paragraph of article 1187
condition was not fulfilled, it is only fair and
shall be observed as regards the effect of the
just that the Buot spouses be allowed to
extinguishment of the obligation. (1123)
recover what they had paid in expectancy that
Concepts:
the condition would happen; otherwise, there
would be unjust enrichment on the part of 1. Loss of something-it understood that the thing is lost
Encarnacion Diaz Vda. de Reston, now substituted by when it perishes, or goes out of commerce, or
her heirs.[56] Hence, the heirs of Encarnacion Diaz
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disappears in such a way that existence is unknown or it “bare” owner since he is deprived of the some of the
cannot be recovered more important attributes of the ownership.
2. Deterioration of a thing- when its value is reduced or
Rights of a usufructuary are provided for under Arts 566
impaired
to 582 of the New Civil Code.
3. Improvement of a thing-when its value is increased or
enhanced 1190: Personal Obligations
Note: Applicable to both suspensive and resolutory As for the obligations to do and not to do, the provisions
conditions. of the second paragraph of article 1187 shall be
observed as regards to the extinguishment of the
Summary of Rules (1189/1190)
obligation.
Conditions Effects
“In obligations to do and not to do, the courts
(1) Loss of the thing
Without the Obligation is extinguished (In
shall determine, in each case, the retroactive effect of
Debtor’s Fault relation to Art 1174) the condition that has been complied with.”
Through the Debtor shall be liable for damages
Debtors Fault (in relation to Art 1170)
Resolution
(2) Deterioration of a thing Article 1191. The power to rescind obligations is
Without the The impairment is to be borne by implied in reciprocal ones, in case one of the obligors
Debtor’s Fault the creditor should not comply with what is incumbent upon him.
Through the 1. The creditor any choose
The injured party may choose between the fulfillment
Debtors Fault rescission of the obligations
and the rescission of the obligation, with the payment
(1191) + Damages (1170)
of damages in either case. He may also seek
2. The creditor may choose
rescission, even after he has chosen fulfillment, if the
fulfillment (1165) + damages
latter should become impossible.
(1170)
(3) Improvement of a thing
The court shall decree the rescission claimed, unless
By nature or by The improvement shall inure to the
there be just cause authorizing the fixing of a period.
lapse of time benefit of the creditor (right of
accession)
This is understood to be without prejudice to the
At the Debtor’s The debtor shall have not other
rights of third persons who have acquired the thing, in
expense right than that granted to the
accordance with articles 1385 and 1388 and the
usufructuary.
Mortgage Law. (1124)
Rights of a Usufructory

Usufruct is a real right, of a temporary character, which Article 1192. In case both parties have committed a
breach of the obligation, the liability of the first
authorizes the holder to enjoy all the utilities which
infractor shall be equitably tempered by the courts. If
result from the normal exploitation of the property of
it cannot be determined which of the parties first
another in accordance with its destination and which
violated the contract, the same shall be deemed
imposes the obligation of restoring at the time specified extinguished, and each shall bear his own damages.
either the thing itself or in special cases its equivalent. (n)
VERY IMPORTANT PROVISION.
Usufruct, in essence, is nothing else but simply allowing
one to enjoy another’s property. It is also defined as the Characteristics
right to enjoy the property of another temporarily, 1. Power to Rescind- it is a right on the part of the
including both jus utendi (the right to use) jus fruendi injured party
(right to the fruits). This right is subject to a waiver; In ANGELES vs.
CALASANZ (135 scra 323) – accepting delayed
Since the possession is essential to free enjoyment of
installment payments beyond the grace period amounts
the property, the right to the possession of the property
to waiver of the right to rescind
held in usufruct also belong s to the usufructuary, at
least during the effectivity of the usufruct. Hence, while 2. Implied Power- partakes the nature of a tacit
the usufruct lasts, the owner of the property held in resolutory condition; deemed embedded in each and
usufruct is sometimes referred to as the “naked” or every obligation
Article 1191 has established the principle that if
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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one of the parties fails to comply with what is incumbent Nature of Rescission as Remedy
upon him, there is a right on the part of the other to
1. GR: The court shall decree the rescission
rescind (or “resolve” in accordance with accepted
claimed.
translations of the Spanish Civil Code) the obligation.
XPN: “Unless there be a just cause authorizing
Since this condition, which is implied as a general rue in
the fixing period.” (1191)
all reciprocal obligations, has the effect of extinguishing
XPN to the XPN: When the fixing period would
rights which are already acquired or vested, it is
result in further delay. (Camp John Hay
resolutory in character, thus a tacit resolutory condition
(Nunez v. Moises-Palma, GR 224466[March 27, 2019]) development Corp. v. Charter Chemical and
Coating Corp, GR 1988849 [August 7, 2019])
3. Applicable to existing reciprocal obligations- 2. In case both parties have committed a breach of
Reciprocal obligations are those which arise from the the obligation, the liability of the first infractor
same cause, and [in] which each party is a debtor and a shall be equitably tempered by the courts.
creditor of the other, such that the obligation of one is (1192)
dependent upon the obligation of the other. They are to 3. If it cannot be determined which of the parties
be performed simultaneously, so that the performance first violated the contract, the same shall be
of one is conditioned upon the simultaneous fulfillment deemed extinguished, and each shall bear his
of the other. (CONSOLIDATED INDUSTRIAL GASES, INC own damages (1192)
vs ALABANG MEDICAL CENTER, GR 181983, November ‘Just causes authorizing the fixing of a period’
13, 2013)
Under the third paragraph of article 1124 of the Civil
4. Basis to invoke resolution: “in case one of the Code, the court is given a discretionary power to allow a
obligors should not comply with what is incumbent upon period within which a person in default may be
him.” permitted to perform the stipulation upon which the
a) based on substantial breech of the obligation, not a claim for resolution of the contract is based. In other
mere causal/ slight breach words, the right to resolve or rescind a contract is not
b) Based on breech of faith, not merely economic absolute (Ocejo, Perez & Co. vs. International Banking
injury Corporation, 37 Phil., 631); and this discretionary power
c) Not based in the failure of the condition to make an on the part of the court should be exercised without
obligation binding hesitation in a case where a virtual forfeiture of valuable
rights is sought to be enforced as an act of mere reprisal
Remedies
for a refusal of the debtor to submit to a usurious
1. The injured party may choose fulfillment or specific charge.
performance + damages (in relation to Art 1170)
Moreover, as was said by this court in Song Fo & Co. vs.
2. The injured party may choose rescission + damages (
Hawaiian-Philippine Co. (47 Phil., 821, 827), the general
relation to Art 1170)
rule is that rescission will not be permitted for a slight or
General Rule: Alternative Remedies (Buenaviaje v casual breach of a contract, but only for such breaches
Spouses Salonga, GR No 1170) as are so substantial and fundamental as to defeat the
XPN: The injured party may also ask rescission, even object of the parties in making the agreement. In that
after he has chosen fulfillment, if the latter should case it was held that a delay in the payment of a small
become impossible (1191). quantity of molasses for some twenty days was not such
a violation of an essential condition of the contract as
Almira vs CA, GR 115966, March 2003 warranted rescission for non-performance. (Kapisanan
The power to rescind is only given to the injured Banahaw vs. Dejarme, Gr 32908[Nov 28, 1930])
party. The injured party is the party who has
faithfully fulfilled his obligation or is ready and willing Under Art. 1191 of the Civil Code, the power to rescind
to perform with his obligation. or the right to resolve is not absolute and must be based
on a serious breach of an obligation as to defeat the
In the case at bar, petitioners were not ready, willing object of the parties in making the agreement. 18 The
and able to comply with their obligation to deliver a non-delivery of the certificates of stock to Uy and his
separate title in the name of Julio Garcia to non-election to the board of directors were not serious
respondent. Therefore, they are not in a position to breaches, particularly considering that he has not shown
ask for rescission of the Kasunduan.
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 76 of 96

the necessity or urgency for the transfer of the shares in In other words, the party who deems the contract
his name or his election as director. Besides, the trial violated may consider it resolved or rescinded, and act
court is given the discretion to allow a period within accordingly, without previous court action, but proceeds
which a party in default may be permitted to perform at its own risk. For it is only the final judgement of
the stipulation upon which the claim for rescission of the the corresponding court that will conclusively and
contract is based, especially when the breach is not finally settle whether the action taken was or was
substantial. (Massive Construction vs IAC[June 1, 1993]) not correct in law. But the law definitely does not
require that the contracting party who believes itself
Schools of Thought injured must first file suit and wait for a judgement
Tan vs CA Spouses Lam vs Kodak
before taking extrajudicial steps to protect its interest.
(175 scra 656) Phils., Ltd.,
Otherwise, the party injured by the other’s breach will
GR 167615, [Jan 11,
have to passively sit and watch its damages accumulate
2016]
The power to rescind When rescission is sought during the pendency of the suit until the final judgement
obligations is implied in under Article 1191 of the of rescission is rendered when the law itself requires
reciprocal ones in case Civil Code, it need not be that he should exercise due diligence to minimize its own
one of the obligors judicially invoked because damages. (Civil Code, Article 2203).
should not comply with the power to resolve is
what is incumbent upon implied in reciprocal We see no conflict between this ruling and the previous
him is clear from a obligations. The right to jurisprudence of this Court invoked by respondent
reading of the Civil Code resolve allows an injured declaring that judicial action is necessary for the
provisions. However, party to minimize the resolution of a reciprocal obligation, since in every case
tHowever, it is damages he or she may where the extrajudicial resolution is contested
equally settled that, suffer on account of the only the final award of the court of competent
in the absence of a other party's failure to jurisdiction can conclusively settle whether the
stipulation to the perform what is resolution was proper or not. It is in this sense that
contrary, this power incumbent upon him or judicial action will be necessary, as without it, the
must be invoked her. When a party fails to extrajudicial resolution will remain contestable and
judicially; it cannot be comply with his or her subject to judicial invalidation, unless attack thereon
exercised solely on a obligation, the other
should become barred by acquiescence, estoppel or
party's own judgment party's right to resolve the
prescription. (EDS Manufacturing Inc. vs Healthcheck
that the other has contract is triggered.
committed a breach International [October 9, 2013])
of the obligation. The resolution Effects of Resolution
Where there is nothing in immediately produces
1. Rescission abrogates the contract from its inception
the contract empowering legal effects if the non-
and requires a mutual restitution of benefits received.xxx
the petitioner to rescind performing party does
it without resort to the not question the 2. Rescission creates the obligation to return the object
courts, the petitioner's resolution. Court of the contract. It can be carried out only when the one
action in unilaterally intervention only who demands rescission can return whatever he may be
terminating the contract becomes necessary obliged to restore. To rescind is to declare a contract
in this case is unjustified. when the party who void at its inception and to put an end to it as though it
allegedly failed to never was. It is not merely to terminate it and release
comply with his or her the parties from further obligations to each other, but to
obligation disputes the abrogate it from the beginning and restore the parties to
resolution of the their relative positions as if no contract has been made.
contract. Since both (Emphasis supplied, citations omitted)
parties in this case have
exercised their right to Limitations
resolve under Article “This is understood to bee without prejudice to the
1191, there is no need for rights of third persons who have acquired the thing, in
a judicial decree before accordance with articles 1385 and 1388 and the
the resolution produces Mortgage Law.”(1191)
effects.
Conclusion

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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• Article 1385. Neither shall rescission take place “I promise to sell you
when the things which are the object of the this certain parcel of
contract are legally in the possession of third land in the condition that
persons who did not act in bad faith. you pay the total
• Article 1388. Whoever acquires in bad faith the amount of 1 million
things alienated in fraud of creditors, shall (purchase price) on this
certain date.”
indemnify the latter for damages suffered by
them on account of the alienation, whenever,
Segurista si seller in this
due to any cause, it should be impossible for case. Kinahanglan sa na
him to return them. mabayran sa siya before
mahatag ang iyan gina
If there are two or more alienations, the first baligya.
acquirer shall be liable first, and so on
successively. (1298a) This is a preparatory for
Resolution (As applied) the contract of sale.
Contracts to sell vs. Contracts of sale In conditional obligations
Review Manuel Uy and Sons vs Valbueco, Incorporated
(GR 179594, September 11, 2013)
1. Condition imposed upon the perfection of the
Preparatory contract to Principal contract/stand
contract – failure to comply results in the failure of the
contract of sale alone contract -
contract
ABSOLUTE
2. Condition imposed of the performance of an In a contract to sell, A deed of sale is absolute
obligation – failure to comply only gives the other ownership remains with when there is no
party the option either to refuse to proceed or to waive the vendor and does not stipulation in the contract
the condition. (Hilltop Market Fish Vendors’ Association, pass to the vendee until that title to the property
Inc. vs Yaranon, Gr 188057, [July 12, 2017]) full payment of the remains with the seller
purchase price until the full payment of
Concepts the purchase price
Contract to Sell Contract of Sale Nunez vs Moises-Palma, GR 224466, [March 27,
A contract to sell is Article 1458. By the 2019]
defined as a bilateral contract of sale one of the Title is retained by the The non-payment of the
contract whereby the contracting parties vendor until full payment purchase price in a
prospective seller, while obligates himself to of the price, such contract of sale is a
expressly reserving the transfer the ownership payment being a positive negative resolutory
ownership of the subject and to deliver a suspensive condition and condition, the happening
property despite delivery determinate thing, and the failure of which is NOT or fulfillment thereof will
thereof to the other to pay therefor a A BREACH but an extinguish the obligation
prospective buyer, binds price certain in money or event that prevents through resolution
himself to sell the said its the obligation of the
property exclusively to equivalent. vendor to convey title
the latter upon his from becoming
fulfillment of the A contract of sale may be effective
conditions agreed upon, absolute or conditional. Resolution is not a Resolution is a remedy.
i.e., the full payment of (1445a) remedy, since there is
the purchase price not breach
(Ventura vs heirs of Sps Reciprocal obligation on
Endaya, Gr 190016 the part of both parties
[October 2, 2013]) Contract to sell vs. Conditional contract of sale

Unilateral obligation Contract to sell Conditional contract of

on the part of the sale
prospective buyer – to Carrascoso, Jr. vs. CA and Leviste, GR 123672,
pay the purchase price Dec 14, 2005
Full payment of the Full payment of the
purchase price is a purchase price is merely
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 78 of 96

condition which give rise a condition to secure extinguishes the

to the obligation to payment thereof, not a obligation
execute a Deed of condition which affects already
Absolute Sale the perfection of the demandable
obligation Applicable to Applicability Applicable
Upon fulfillment of the If the suspensive reciprocal regardless if
suspensive condition, condition is fulfilled, the obligations reciprocal
ownership will not contract of sale is thereby obligations or
automatically transfer to perfected, such that if not
the buyer although the there had already been Resolution may Need for It cannot be
property may have been previous delivery of the be demanded in Demand demanded
previously delivered to property subject of the lieu of specific because of the
him. The prospective sale to the buyer, performance or uncertainty of
seller still has to convey ownership thereto fulfillment, and the event in the
title to the prospective automatically transfers to vice versa, at future and it
buyer by entering into a the buyer or by operation the moment does not require
contract of absolute sale. of aw without any further there is a a breach in the
act having to be substantial obligation but
performed by the seller. breach has retroactive
Ventura vs Heirs of Spouses Endaya GR effect
190016, [October 2, 2013] Subject to Judicial Not subject to
The fulfillment of the The fulfillment of the judicial Intervention judicial
suspensive condition will suspensive condition determination determination
not automatically transfer renders the sale absolute
ownership to the buyer and the previous delivery
although the property off the property has the Resolution vs Termination
may have been previously effect of automatically
The court explained:
delivered to him. The transferring the seller’s
prospective seller still has ownership or the title to By the allegations of the complaint, the Gojoccos' aim
to convey title to the the property of the buyer. was to cancel or terminate the contract because they
prospective buyer by
sought its partial enforcement in praying for rental
entering into a contract
arrearages. There is a distinction in law between
of absolute sale.
cancellation of a contract and its rescission.
Resolution is not a Resolution is a remedy
remedy, since there is no • To rescind is to declare a contract void in its
breach inception and to put an end to it as though
Distinctions: Resolution v Happening of a it never were. It is not merely to terminate it
Resolutory Condition and release parties from further obligations to
Resolution Distinctions Happening of each other but to abrogate it from the beginning
a Resolutory and restore the parties to relative positions
Condition which they would have occupied had no contract
Tacit resolutory Basis Resolutory ever been made.
condition – it is conditions are
one implied and future uncertain
set forth by law events agreed • "x x x. The termination or cancellation of a
upon by parties contract would necessarily entail enforcement
in a contract of its terms prior to the declaration of its
express cancellation in the same way that before a
Power to rescind Nature It is not a lessee is ejected under a lease contract, he
– it is a remedy remedy but a has to fulfill his obligations thereunder
to an obligation future uncertain that had accrued prior to his ejectment.
already existing, event agreed However, termination of a contract need
in case of upon by parties not undergo judicial intervention. x x x."
breach in a contract (Italics supplied)
which
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 79 of 96

Alternative to relation to Art

specific 1177 (accion
Rescission has likewise been defined as the "unmaking performance or pauliana)]
of a contract, or its undoing from the beginning, and not fulfillment
merely its termination." Rescission may be effected by Based on the Basis Based on lesion
both parties by mutual agreement; or unilaterally by one breach of faith or economic
of them declaring a rescission of contract without the which is a injury
consent of the other, if a legally sufficient ground exists substantial Grounds in
or if a decree of rescission is applied for before the breach 1381
courts. Complete Scope of the Partial Remedy;
remedy; The Cancellation Article 1384.
On the other hand, termination refers to an "end in time obligation in its Rescission shall
or existence; a close, cessation or conclusion." With entirety be only to the
respect to a lease or contract, it means an ending, extent
usually before the end of the anticipated term of such necessary to
lease or contract, that may be effected by mutual cover the
agreement or by one party exercising one of its damages
remedies as a consequence of the default of the caused
Prescriptive Prescriptive Article 1839.
other. (Pryce Corp. v. Philippine Amusement and
period is 10 Period The action
Gaming Corporation , GR 157480. [May 6, 2005]
years if based rescission must
Resolution v. Rescission-Proper on written be commenced
contract; 6 within four
Arts. 1911- Distinctions Arts 1380 - years if based years. For
1922 1389 on oral contract persons under
Resolution Remedy Rescission- guardianship
proper; accion and for
pauliana absentees, the
Reciprocal Types of Not necessarily period of four
Obligations Obligations reciprocal years shall not
Invoked by the Who may avail Not necessary begin until the
injured party between parties termination of
vs. erring party ; even if third the former’s
person (in fraud incapacity, or
of creators) until the
Need not to be Agreement of May be agreed domicile is
agreed upon the Parties upon, based on known.
since it is the stipulations
“implied” by law in the contract
Principal action Type of action Article 1383. 6. Articles 1193-1225
retaliatory in The action for
character rescission is
subsidiary; it Section 2
cannot be Obligations with a Period
instituted (1193 -1198)
except when
the party
suffering ART. 1193. Obligations for whose fulfillment a
damage has no day certain has been fixed, shall be demandable
other legal only when that day comes.
means to obtain Obligations with a resolutory period take effect at
reparation for once, but terminate upon arrival of the day certain.
the same
Alternative How remedy is Remedy of last
remedies: availed resort [In

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 80 of 96

A day certain is understood to be that which must liquidate the community property either
necessarily come, although it may not be known judicially or extra-judicially within six months
when. from the death of the deceased spouse
● Article 203. Payment shall be made within
If the uncertainty consists in whether the day will
come or not, the obligation is conditional, and it the first five days of each corresponding
shall be regulated by the rules of the preceding month or when the recipient dies, his heirs
Section. shall not be obliged to return what he has
received in advance (298a)
2. Contractual Periods- we will discuss this the
cases. Periods agreed upon the parties by virtue
CONCEPT OF “DAY CERTAIN” OR PERIOD
of a contract or agreements
A day certain is understood to be that which must 3. Judicial Periods (Article 1197)
necessarily come, although it may not be known when.
As to their effects
(1193)
1. Suspensive Periods (Ex die) – a day certain
A period has been defined “as a space of time which has
has been fixed, and the obligation shall be
an influence on obligation as a result of a juridical act,
demandable only when that day comes
and either suspends their demandability or produces
Example-a person promises to give you a
their extinguishment.”
house and lot on your next birthday or upon the
Obligations with a period are those whose consequences death of a person, that is a suspensive period
are subjected in one way or another to the expiration of because the obligation is not demandable until
said period or term. that day comes

Art. 1193 of the Civil Code provides, among others, that 2. Resolutory Periods (in diem)-those which
“obligations with a resolutory period take effect at once, take effect at once, but the obligation will
but terminate upon arrival of the day certain. A day terminate upon arrival of the day certain
certain is understood to be that which must necessarily -immediately demandable but the obligation will
come, although it may not be known when.” terminate upon the arrival will of that day
In the light of the foregoing provisions, we have no certain
doubt that the “indefinite period’’ of employment
expressly agreed upon by and between the parties in
this case is really a resolutory period because the
employment is bound to terminate on a future “day
certain” such as the employee’s resignation or
employer’s termination of employment upon a valid
ART. 1194. In case of loss,
cause or causes, like death of the employee or
deterioration or improvement of
termination of employer’s corporate existence, although
the thing before the arrival of the
it may not be known when (Lirag Textile Mills, Inc. v
day certain, the rules in article
Court of Appeals, April 14,1975 )
1189 shall be observed.
TYPES OF PERIODS

As to their Source
Make reference to 1189 and 1190. Take note the rules
1. Legal Periods that we’ve discussed they are likewise applicable to
● Family Code 1194.
● Article 103/130. Upon the termination of the
SUMMARY OF RULES (1189/1190/1194)
marriage by death, the community property
shall be liquidated in the same proceeding CONDITIONS EFFECTS
for the settlement of the estate of the
deceased. (1) Loss of the thing
● If no judicial settlement proceeding is
instituted, the surviving spouse shall
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 81 of 96

Without the Obligation is extinguished (in (2) When he does not furnish to the creditor the
debtor’s fault relation to art 1174) guaranties or securities which he has promised;
(3) When by his own acts he has impaired said
Through the Debtor shall be liable for damages guaranties or securities after their establishment, and
debtor’s fault (in relation to art 1170) when through a fortuitous event they disappear,
Deterioration of the thing unless he immediately gives new ones equally
satisfactory;
Without the The impairment is to be borne by (4) When the debtor violates any undertaking, in
debtor’s fault the creditor consideration of which the creditor agreed to the
period (applicable in this case);
Through the 1. The creditor may choose (5) When the debtor attempts to abscond.
debtor’s fault rescission of the
obligation (1191) +
damages (1170)

2. The creditor may choose

fulfilment (1165) + APPLICABILITY (1196)
damages (1170)
● Rebuttable presumption for both types of perios
(2) Improvement of the thing (ex die and in dem)
● General Rule: for the benefit of both parties-
By the nature or The improvement shall inure to
the debtor cannot be compelled to perform and
lapse of time the benefit of the creditor (right
the creditor cannot be compelled to accept prior
of accession)
to its arrival (suspensive)
At the debtor’s The debtor shall have no other ● Exceptions: When expressly provided for the
expense right than that granted by the benefit of either party
usufructuary 1. For the benefit of the debtor:
a) D promised to pay his debt “on or
before December 31, 2004. Here, the
Applicable to instances involving real obligations, payment is to be made within a
anything paid or delivered and refers to a suspensive stipulated period. D can pay before said
period. date. (Pastor vs. Gaspar, 2 Phil. 592
(1903)
ART. 1195. Anything paid or delivered before the arrival of the period, the obligor being unaware
b) D promised to pay of
histhe period
debt “for aorterm
believing that the obligation has become due and demandable, may be recovered, with the fruits and interests.
of five years counted from this date.” It
has been held that the debt is payable
Above is the instance where there is solution indebiti or within five years (Sia v. CA and
mistake of payment. Valencia, (1952)
2. For the benefit of the creditor
BENEFIT OF THE PERIOD ● D borrowed from C P10,000.00
payable on December 31 with the
ART. 1196. Whenever in an obligation a period is
stipulation that D cannot make
designated, it is presumed to have been established
payment before the lapse of the
for the benefit of both the creditor and the debtor,
period but C may demand fulfilment
unless from the tenor of the same or other
even before said date. Here, C can
circumstances it should appear that the period has
demand payment at any time but D
been established in favor of one or of the other.
cannot shorted the one-year period
without the consent of C
Art. 1198. The debtor shall lose every right to make
use of the period:
(1)Debtor loses the benefit of the period
(1) When after the obligation has been contracted, he (1198)
becomes insolvent, unless he gives a guaranty or
security for the debt;

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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(1) When after the obligation has been contracted,

he becomes insolvent, unless he gives a
guaranty or security for the debt;
Example: D owes P 10,000.00 due and payable Illustration of (4). The debtor violates any
on December 20. If D becomes insolvent, say on undertaking, in consideration of which the
September 10. C can demand immediate creditor agreed to the period.
payment from D even before maturity unless D
gives sufficient guaranty or security Corpus v. Alikpala (January 17, 1968)
(2) When he does not furnish to the creditor the
As we view the compromise agreement, the
guaranties or securities which he has promised.
advance payment of the interest was plainly the
(3) When by his own acts he has impaired said main consideration for the creditor's assent to
guaranties or securities after their delay payment of the balance of the purchase
establishment, and when through a fortuitous price (P100,000.00) up to December 15, 1965,
event they disappear, unless he immediately despite previous default of the defendant-
gives new ones equally satisfactory: appellant. On that basis, the dishonor of the
⮚ See Gaite v. Fonacier (1961) check representing the advance interest
(4) When the debtor violates any undertaking, in resulted in the forfeiture of the period given to
consideration of which the creditor agreed to the pay the principal, as prescribed by Article 1198,
period: paragraph 4 of the Civil Code of the Philippines
(R.A. No. 386), which is of the following tenor:
(5) When the debtor attempts to abscond.
Example: Before the due date of the obligation, Art. 1198 — The debtor shall lose every
D (debtor) changed his address without right to make use of the period:
informing C (creditor) and with the intention of
xxx xxx xxx
escaping from his obligation. This act of D is a
sign of bad faith which results in the loss of his (4) When the debtor violates any
right to the benefit of the period stipulated. undertaking in consideration of which
the creditor agreed to the
period.1äwphï1.ñët
Illustration of (2). The debtor does not furnish to The foregoing is the applicable legal rule, and
the creditor the guaranties or securities which he not Article 1191, since in asking for execution,
has promised the appellee was not seeking the resolution of
the compromise but its enforcement. The
Daguhoy Enterprises Inc. v Ponce, appellee's acceptance of the check had
October 18, 1954) suspended his action to enforce the payment of
the balance of the principal; but it was not a
true payment until the value of the check was
Although the original loan of P 5,000 realized (Civ. C. Art. 1249). Since the check was
including the increase of P1, 190 was dishonored, the appellant automatically became
payable within six years from June 1950, and in default and lost the right to the period for
so did not become due and payable until paying the principal of P100,000.00.
1956, the trial court held that under article
1198 of the new Civil Code, the debtor lost
the benefit of the period by reason of her
failure to give the security in the form of the
two deeds of mortgage and register them, Judicial Periods
including defendant’s act in withdrawing said
two deeds from the office of the register of ART. 1197. If the obligation does not fix a
deeds and then mortgaging the same period, but from its nature and the circumstances
property in favour of the RFC, and so the it can be inferred that a period was intended, the
obligation became pure and without any courts may fix the duration thereof.
condition, and consequently, the loan The courts shall also fix the duration of the period
became due and immediately demandable when it depends upon the will of the debtor.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 83 of 96

In every case, the courts shall determine such Alternative remedy Principal remedy in case the
period as may under the circumstances have been in case the grounds are present for the
probably contemplated by the parties. Once fixed rescission will not be court to fix the period
by the courts, the period cannot be changed by decreed by the court
them.
Applicable to Applicable to obligations with
Art. 1180. When the debtor binds himself to pay reciprocal a period, but the period has
when his means permit him to do so, the obligations not been fixed, or to
obligation shall be deemed to be one with a conditional obligations where
period, subject to the provisions of article 1197. the potestative condition is
void

The courts shall The courts shall determine

Concept
consider the nature such period as may under the
A term of period is judicial when the duration of the breach to circumstances have been
thereof is fixed by a competent court in decree the fixing of probably contemplated by the
accordance with the causes expressly recognized the period parties
by law. Once the period has Once the period has been
been fixed, the fixed, the period cannot be
Grounds:
obligation may still changed by the parties and
1. If the obligation does not fix a period, but from be rescinded (1) for the other party incurs in delay
its nature and the circumstances it can be violation of the
inferred that a period was intended (1197) period of compliance
fixed, or (2) the
2. When the debtor binds himself to pay when his
fulfilment within the
means permit him to do so. (1180)
period is impossible
3. When the suspensive conditional obligation is
potestative on the part of the debtor (1182); as
an alternative to annulling the obligation
SECTION 3
Rationale: In the foregoing cases, no cause of ALTERNATIVE OBLIGATIONS (1199-
action to demand performance exists until after the
1206)
period is fixed, since before that, the obligation is
technically not yet due and demandable (Calero vs.
Carrion, March 30, 1960)
Types of obligations from the viewpoint of
Actions of the court their prestations
1. The courts may fix the duration of the obligation
1. Simple obligation-one where there is only one
2. In every case, the courts shall determine such
prestation
period as may under the circumstances have
2. Compound obligation- one where there are
been probably contemplated by the parties
two or more prestations. It may either
3. Once fixed by a competent court, the period can
a) Conjuctive obligation-one where there
no longer be judicially changed.
are several prestations and all of them are
Distinctions on power of courts to fix periods due:or
b) Distributive obligation- one where one of
Fixing the period Fixing the period in Art two or more of the prestations is due. It
in Art 1191 1197 may be alternative (art 1199) or facultative
(art 1206)
Nature: Nature: the court enjoys no
discretionary power discretion, but fixed the c) Disjunctive obligation –as to the person’s
of the court to fix period according to what the who perform the obligation
the period in lieu of circumstances dictate
Art. 1199. “A person alternatively bound by
rescission
different prestations shall completely perform
one of them.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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The creditor cannot be compelled to receive part of General rule: the right of choice belongs to the debtor
one and part of the other undertaking.” (art 1200)

⮚ The choice shall produce no effect

except from the time it has been
Types of alternative obligations communicated (art 1201)
-no form: choice may be express or implied,
As to prestations
and the notice may be verbal or in writing
1. Alternative real obligations-if the prestations -the consent on the part of the creditor is
comprise of the obligation to give objects or not necessary
property
Exceptions: When does the debtor not have the right
2. Alternative personal obligation –if the
of choice?
prestations comprise of the obligation to do or
not do some service 1. When the right of choice has been expressly
3. Alternative mixed obligations – if the granted to the creditor (art 1200)
prestations comprise of the obligation to give 2. If some prestations are impossible, unlawful, or
objects or property and obligation to do or not which could not have been the object of the
to do some service obligation (art 1200)
Example: the obligation ceases to be alternative
As to sources
as it becomes simple. For example, there is an
1. Legal alternative obligations: by law obligation to deliver a house, car and a condo
⮚ Family Code. Art. 204. The person unit. If the house and lot has already been
obliged to give support shall have the option repossessed by the bank it is no longer possible
to fulfil the obligation either by paying the to deliver as ownership is already consolidated
allowance fixed, or by receiving and by the bank. Or what if the car was already
maintaining in the family dwelling the been lost because of a fortuitous event or by the
person who has a right to receive support. flood, or carnap because of debtor’s negligence;
The latter alternative cannot be availed of in or the condo unit is not an object of the
case there is a moral or legal obstacle obligation as the creditor would not want to live
thereto. to other places within the city and he does not
2. Contractual or conventional alternative want to live in the city. The debtor has no choice
obligations because it is already a simple obligation and he
only need to give what is possible, lawful and an
Right of choice object of the obligation. We consider the factual
circumstances.
ART. 1200. The right of choice belongs to the
3. When among the prestations whereby the
debtor, unless it has been expressly granted to the
debtor is alternatively bound, only one is
creditor.
practicable (art 1202)
The debtor shall have no right to choose those
prestations which are impossible, unlawful or which Liability in case of Losses
could not have been the object of the obligation.

ART. 1201. The choice shall produce no effect ARTICLE 1203. If through the creditor’s acts the
except from the time it has been communicated. debtor cannot make a choice according to the terms
of the obligation, the latter may rescind the contract
ART. 1202. The debtor shall lose the right of choice with damages. (n)
when among the prestations whereby he is
alternatively bound, only one is practicable. ARTICLE 1204. The creditor shall have a right to
indemnity for damages when, through the fault of
the debtor, all the things which are alternatively the
Applicability object of the obligation have been lost, or the
compliance of the obligation has become impossible.

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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The indemnity shall be fixed taking as a basis the choose among the three choices, hence, due to this
value of the last thing which disappeared, or that of impossibility to choose the one that has been destroyed,
the service which last became impossible. he has the choice to rescind the contract.

Damages other than the value of the last thing or But choosing among the two objects is still allowed.
service may also be awarded. (1135a)
In re: Art 1204, instance where all of the things are lost
or compliance of service is rendered impossible because
of the fault on the part of the debtor.
Creditor’s Fault Debtor’s Fault Even if the right of choice is on the part of the debtor but
Art 1203 Art 1203 because of his fault, all the things due or service ought to
In both cases, the right of choice belongs to the be rendered cannot be given or performed anymore.
debtor
1. the creditor does an 1. all the things which What is the remedy?
act/s are alternatively the
2. the debtor cannot object of the Creditor shall have the right to indemnity for damages
make a choice obligation have been based on value of the last thing or the service which
according o the lost, or (real became impossible, on top of damages provided in Art
terms of the obligations) 1170.
obligation 2. the compliance has
become impossible
(personal obligation) ARTICLE 1205. When the choice has been
3. it is through the expressly given to the creditor, the obligation shall
fault of the debtor cease to be alternative from the day when the
selection has been communicated to the debtor.
Remedy: Remedy:
The debtor may rescind Creditor shall have a Until then the responsibility of the debtor shall be
the contract, with right to indemnity for governed by the following rules:
damages damages
Amount of Damages Amount of Damages (1) If one of the things is lost through a fortuitous
event, he shall perform the obligation by delivering
Based on Art 1191 in 1. the indemnity shall that which the creditor should choose from among
relation to Art 1170 of be fixed taking as a the remainder, or that which remains if only one
the NCC basis the value of subsists;
the last thing which
Consequence: disappeared, or that (2) If the loss of one of the things occurs through the
Mutual Rescission of the service which fault of the debtor, the creditor may claim any of
between the Parties last became those subsisting, or the price of that which, through
impossible the fault of the former, has disappeared, with a right
to damages;
2. damages other than
the value of the last (3) If all the things are lost through the fault of the
thing or service may debtor, the choice by the creditor shall fall upon the
also be rewarded price of any one of them, also with indemnity for
(Art 1170) damages.

The same rules shall be applied to obligations to do

or not to do in case one, some or all of the prestations
should become impossible. (1136a)
Consequence in re: Art 1203 in case of alternative
contracts where 3 objects, and 1 of 3 is destroyed by the
creditor, can the 2 objects be the basis, and the contract Instances where the creditor is given the right of choice.
still be subsisting?
Rules:
No. the choices has been diminished to two, in
contravention to the original stipulation where he can
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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1. Right of choice belongs to the debtor, unless it price of those which were
has been expressly granted by the creditor. (Art lost throught the
1200). The choice shall produce no effect except Debtor’s fault + damages
from the time it has been communicated. (Art 1201) (damages applies if the
price is chosen)
2. When the choice has been expressly given to the If only one or some or If only one or some or
creditor, the obligation shall cease to be ALL are lost through ALL are lost through
alternative from the day the selection has been Creditor’s fault: Creditor’s fault:
The debtor may rescind Creditor may choose any
communicated to the debtor. (Art 1205)
the contract, with of the remainder, or that
damages (1203) which remains to subsist
Prior to the Creditor’s Exercise of Choice
If ALL are lost through
Responsibility of the debtor shall be governed by the creditor’s fault –
following rules: obligation is extinguished
(Balane)
1. If one of the thing is lost through fortuitous
event: the debtor shall perform the obligation by If all are lost through If all are lost through
delivering: debtor’s fault: debtor’s fault:
a. That which the creditor should choose from Debtor shall pay the Creditor may claim the
among the remainder, or value of the last thing price of any of them +
b. That which remains if only one subsists; lost + damages (1204) damages (in all cases)
**If all are lost through Fortuitous Event, the
2. If the loss of one of the things occurs through obligation is extinguished – in re: Art 1174
the fault of the debtor, the creditor may claim:
a. Any of the things subsisting
Alternative obligations v Alternative Remedies
b. The price of that which, through the fault of the
debtor, has disappeared with a right to damages. • In ordinary alternative obligations, a mere
choice categorically and unequivocally made and then
3. If all the things are lost through the fault of the communicated by the person entitled to exercise the
debtor, the choice by the creditor shall fall upon: option includes the parties. The creditor may not
a. The price of any of them, with damages thereafter exercise any other option, unless the
chosen alternative proves to be ineffectual or
Note: the same rules shall be applied to obligation to do
unavailing due to to no fault on his part.
or not to do in case one, some or all of the prestations
• This rule, in essence, is the difference between
should become impossible.
alternative obligations, on one hand, and alternative
Distinctions: Rules on the effect of loss: remedies on the other hand, where, in the latter
case, the choice generally becomes conclusive only
The debtor has the The creditor has the upon the exercise of the remedy. (Borbon II v
right of choice: right of choice: Servicewide Specialties, GR 106418, July 11, 1996)
Art 1203 Art 1205
If one or some are lost If only one or some
through Fortuitous are lost through ARTICLE 1206. When only one prestation has been
Event / Debtor’s Fortuitous Event: agreed upon, but the obligor may render another in
Fault: Debtor shall deliver that substitution, the obligation is called facultative.
Debtor may deliver any which the creditor should
one of the remainder, or choose among the The loss or deterioration of the thing intended as a
that which remains to remainder or that which substitute, through the negligence of the obligor,
subsist. remains if only 1 subsists does not render him liable. But once the substitution
has been made, the obligor is liable for the loss of the
If only one or some substitute on account of his delay, negligence or
are lost through fraud. (n)
Debtor’s fault:
Creditor may claim any of
those subsisting OR the
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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Rules: prestation in substitution the prestations which are

of that which is due alternatively due.
1. Who has the right of Choice? The Debtor (Art 1201 The right of choice The right of choice may
by analogy pertains only to the pertain to the debtor, the
2. When does the substitution take effect? Upon debtor creditor, or a third person
Communication of the choice The culpable loss of the The culpable loss of any
object which the debtor of the objects which are
Liability for Loss or Deterioration of the Thing Due
may deliver in alternativel due before
If loss / If the Loss / substitution before the the choice is made may
deterioration deterioration substitution is effected give rise to a liability on
occurred occurred AFTER does not give rise to any the part of the debtor.
PRIOR to substitution liablilty on the part of
substitution such debtor.
Due to Loss or Loss or
Fortuituous deterioration of deterioration of
Event the Principal the Principal Section 4
Object Object – no Joint and Solidary Obligations
extinguishes the effect (1207 – 1222)
obligation
Loss or Loss or
deterioration of deterioration of Types of Obliations According to the Relations of the
the Substitute the Substitute Number Subjects:
object – no object –
1. Individual Obligation – one where there is only
effect extinguishes the
obligation one obligor and one obligee
Due to Loss or Loss or
Debtor’s deterioration of deterioration of 2. Collective Obligation – one where there are two or
Fault the Principal the Principal more debtors and/or creditors. It may be joint or
Object – debtor Object – no solidary
is liable for the effect
loss or In a collective obligation, there are three relations
deterioration involved:
with damages a. Between the creditor and debtors (or creditors
(in re: Art 1170) and debtor, or creditors and debtors)
Loss or Loss or b. Among creditors themselves
deterioration of deterioration of c. Among debtors themselves
the Substitute the Substitute
Object: Object: Concepts
No effect The debtor is
liable for the loss
or deterioration ARTICLE 1207. The concurrence of two or more
with damages creditors or of two or more debtors in one and the
(in re Art. 1170) same obligation does not imply that each one of the
former has a right to demand, or that each one of the
latter is bound to render, entire compliance with the
Distinctions prestation. There is a solidary liability only when the
obligation expressly so states, or when the law or the
Facultative Alternative nature of the obligation requires solidarity. (1137a)
Obligations Obligations
Only one object is due Several Objects are due ARTICLE 1208. If from the law, or the nature or the
Facultative obligations Alternative obligations wording of the obligations to which the preceding
may be complied with by may be complied with by article refers the contrary does not appear, the credit
the delivery of another the delivery of one of the or debt shall be presumed to be divided into as many
object or by the objects or by the shares as there are creditors or debtors, the credits
performance of another performance of one of or debts being considered distinct from one another,

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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subject to the Rules of Court governing the

multiplicity of suits. (1138a) 4. Art 2180. The obligation imposed by article 2176 is
demandable not only for one’s own acts or omissions,
but also for those of persons for whom one is
responsible.
Joint Obligations

- Concurrence of two or more creditors or two or The father and, in case of his death or incapacity, the
more debtors in one and the same contract does mother, are responsible for the damages caused by
not imply that: the minor children who live in their company.
a. Each one of the creditors has the right to
demand Guardians are liable for damages caused by the
b. Each one of the debtors is bound to render minors or incapacitated persons who are under their
c. Entire compliance with the prestation authority and live in their company.

- The credit or debt shall be presmed to be divided The owners and managers of an establishment or
into as many shares as there are creditors or enterprise are likewise responsible for damages
debtors, the credits or debits being considered caused by their employees in the service of the
distinct from one another (1208) branches in which the latter are employed or on the
occasion of their functions.

Solidary Obligations Employers shall be liable for the damages caused by

their employees and household helpers acting within
- The concurrence of two or more creditors or of the scope of their assigned tasks, even though the
two or more debtors in one and the same former are not engaged in any business or industry.
obligation provides that: The State is responsible in like manner when it acts
a. Each one of the creditors has the right to through a special agent; but not when the damage
demand has been caused by the official to whom the task done
b. Each one of the debtor1. s is bound to render properly pertains, in which case what is provided in
c. Entire compliance with the prestation (1207) article 2176 shall be applicable.

- Kinds of solidary obligations (as to source) Lastly, teachers or heads of establishments of arts
1. When the obligation expressly so states and trades shall be liable for damages caused by their
2. When the law requires solidarity pupils and students or apprentices, so long as they
3. When the nature of the obligation remain in their custody.
requires solidarity (1207 and 1208)

Examples of Legal Solidarity Concepts

1. Art 94 and 102 of the FC: the spouses shall be Joint Obligations Solidary Obligations
solidarily liable for the unpaid balance with their
separate properties. 1. Jointly 1. Jointly and Severally
2. Individually 2. Individually and
2. Special parental authority – Art 219 of the FC: those 3. Separately Collectively
given the authority and responsibility under the 4. Proportionately 3. In solidum
preceding Article shall be principally and solidarily 5. Pro Rata 4. Mancomunada
liable for damages caused by the acts or omissions of 6. Mancomunada solidaria
7. Mancomunada 5. Juntos or
the unemancipated minor.
Simple separadamente
3. Art 2407: 2nd Paragraph: If a person binds himself
solidarily with the principal debtor, the provisions of
Section 4, Chapter 3, Title I of this Book shall be Chiquita Brands Inc v Omelio
observed. In such case the contract is called a June 7, 2017
suretyship

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
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Solidary liability under Philippine law is not to be exhausting the property of the Debtor, the Surety
inferred lightly but must be clearly expressed.266 hereby expressly waiving all benefits under Article
Under Article 1207 of the Civil Code, there is solidary 2058 and Article 2065 and Articles 2077 to 2081,
liability when "the obligation expressly so states, or inclusive, of the Civil Code.
when the law or the nature of the obligation requires
solidarity." The nature and extent of respondent Ortiz's liability
are set out in clear and unmistakable terms in the
The Compromise Agreement provided: Continuing Suretyship agreement. Under its express
terms, respondent Ortiz, as surety, is "bound by all
25. Affiliates and Successors the terms and conditions of the credit instruments."
His liability is solidary with the debtor and co-sureties;
This Agreement and the rights, obligations, and and the surety contract remains in full force and
covenants contained herein shall inure to the benefit effect until full payment of Erma's obligations to the
of and be binding upon The Plaintiffs and Settling Bank.
Defendants and their respective subsidiaries,
affiliates, controlled and related entities, successors,
and assigns. How do we apply 1208 in saying that the credits and the
debts will be divided into as many shares as there are
Clearly, the Compromise Agreement did not impose creditors and debtors?
solidary liability on the parties' subsidiaries, affiliates,
controlled, and related entities, successors, and The problem is silent so we assume that they are joint
assigns but merely allowed them to benefit from its debtors and joint creditors of each other. The obligation
effects. Thus, respondent Judge Omelio gravely is 9 million.
abused his discretion in holding that the petitioners'
subsidiaries and affiliates were solidarily liable under
Those that may be demanded by the creditors, those
the Compromise Agreement. are credits. Those that may be demanded from the
debtors, those are debts.

Erma Industries v. Security Bank

December 6, 2017

Sections 3 and 11 of the Continuing Suretyship clearly

state as follows:

3. Liability of the Surety. - The liability of the Surety

is solidary and not contingent upon the pursuit by the
Bank of whatever remedies it may have against the
Debtor or the collaterals/liens it may possess. If any 9 million is divided between the debtors. Thus 3
of the Guaranteed Obligations is- not paid or million each. Each debtor is liable to each of the
performed on due date (at stated maturity or by creditors, thus 1 million to each of the creditors.
acceleration), the Surety shall, without need for any
notice, demand or any other act or deed, immediately
become liable therefor and the Surety shall pay and
perform the same.

....

11. Joint and Several Suretyship. - If the Surety is

more than one person, all of their obligations under
this Suretyship shall be joint and several with the
Debtor and with each other. The Bank may proceed Any of the creditors has the right to demand the 9
under this Suretyship against any of the sureties for million form any of the debtors.
the entire Guaranteed Obligations, without first
proceeding against the Debtor or any other surety or
sureties of the Guaranteed Obligations, and without
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 90 of 96

promises shall not contribute to the indemnity beyond

the corresponding portion of the price of the thing or
of the value of the service in which the obligation
consists. (1150)
Article 1225. For the purposes of the preceding
articles, obligations to give definite things and those
which are not susceptible of partial performance shall
be deemed to be indivisible.
When the obligation has for its object the execution of
a certain number of days of work, the
Any of the creditors has the right to demand the 9
accomplishment of work by metrical units, or
million, but they only may demand 3 million from
analogous things which by their nature are susceptible
each of the debtors.
of partial performance, it shall be divisible.
However, even though the object or service may be
physically divisible, an obligation is indivisible if so
provided by law or intended by the parties.
In obligations not to do, divisibility or indivisibility shall
be determined by the character of the prestation in
each particular case. (1151a) (CONCEPT OF
INDIVISIBLITY)
Distinctions

Joint/ Solidary Indivisible/Divisible

Obligations Obligations
✓Refers to the ✓Refers to the Prestation
Debtors may be compelled to pay 9 million, but each Judicial or Legal Tie
of the creditors may only demand their share (3 ✓Applicable to ✓ Applicable to both simple
million each). collective obligations and collective obligations
✓Issue: Who are ✓Issue: What is to be
SUBJECT TO THE RULS OF COURT GOVERNING liable to perform the performed? How is the
THE MUNICIPALITY OF SUITS obligation? How are prestation to be delivered of
the parties bound? performed?
● Rule 2 Section 3. One suit for a single cause of
Rules of Compliance and Breach
action.—A party may not institute for more than
If the division is impossible [indivisible obligation]:
one suit for a single cause of action.
⮚ The right of the JOINT creditors may eb
Splitting of cause of action-the practice of dividing
prejudiced only by their collective acts, and
one cause of action into different parts and making each
⮚ The debt can be enforced only by proceeding
part a subject of a different (or separate) complaint
against all the JOINT debtors.
(Bachrach vs. Icariñgal)
❖ If one of the latter should be insolvent,
The 9 million regardless whether the parties are joint the other joint debtors shall not be liable
debtors or creditors it has to be one case lang because for the share of the insolvent debtor.
there is only one cause of action. [Article 1209]

Joint Indivisible Obligations From the time anyone of the debtors does not comply
Article 1209. If the division is impossible, the right with his undertaking:
of the creditors may be prejudiced only by their 1. It gives rise to the indemnity of for damages [c.f.
collective acts, and the debt can be enforced only by Article 1170]
proceeding against all the debtors. If one of the latter 2. The debtors who may have been ready to fulfill their
should be insolvent, the others shall not be liable for promises shall not contribute to the indemnity
his share. (1139) beyond the corresponding portion of:
Article 1224. A joint indivisible obligation gives rise
to indemnity for damages from the time anyone of the a. the price of the thing in which the obligation
debtors does not comply with his undertaking. The consists, or
debtors who may have been ready to fulfill their
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b. the value of the service in which the obligation simultaneously. has been made by one
consists [Article 1224] 2. The damand made of the solidary creditors.
against one of the solidary Payment should
Types and Characteristics of Solidary debtors shall not be an be made to the solidary
Obligations obstacle to those which creditor who made the
Article 1210. The indivisibility of an obligation does may subsequently be demand. [1214]
directed against the
not necessarily give rise to solidarity. Nor does
solidarity of itself imply indivisibility. (n) others, so long as the
debt has not been fully
Article 1211. Solidarity may exist although the collected.
creditors and the debtors may not be bound in the Special Rules on Extinguishment of
same manner and by the same periods and
conditions. (1140) Solidary Obligations
Article 1215. Novation, compensation, confusion or
Article 1212. Each one of the solidary creditors may remission of the debt, made by any of the solidary
do whatever may be useful to the others, but not creditors or with any of the solidary debtors, shall
anything which may be prejudicial to the latter. extinguish the obligation, without prejudice to the
(1141a) provisions of article 1219.
Article 1213. A solidary creditor cannot assign his
rights without the consent of the others. (n)
The creditor who may have executed any of these
acts, as well as he who collects the debt, shall be
liable to the others for the share in the obligation
corresponding to them. (1143)
Kinds of Solidary Obligation According to the Article 1217. Payment made by one of the solidary
Legal Tie debtors extinguishes the obligation. If two or more
According to Sanchez Roman: solidary debtors offer to pay, the creditor may choose
(1) Uniform-when the parties are bound by the same which offer to accept.
stipulations or clauses; or
(2) Non-uniform or varied—when the parties are not
subject to the same stipulations or clauses. He who made the payment may claim from his co-
debtors only the share which corresponds to each,
Rights of Solidary Parties with the interest for the payment already made. If the
Article 1214. The debtor may pay any one of the payment is made before the debt is due, no interest
solidary creditors; but if any demand, judicial or for the intervening period may be demanded.
extrajudicial, has been made by one of them,
payment should be made to him. (1142a)
When one of the solidary debtors cannot, because of
his insolvency, reimburse his share to the debtor
Article 1216. The creditor may proceed against any paying the obligation, such share shall be borne by all
one of the solidary debtors or some or all of them his co-debtors, in proportion to the debt of each.
simultaneously. The demand made against one of (1145a)
them shall not be an obstacle to those which may
subsequently be directed against the others, so long
as the debt has not been fully collected. (1144a) Article 1218. Payment by a solidary debtor shall not
Rights of Solidary Parties entitle him to reimbursement from his co-debtors if
such payment is made after the obligation has
Rights of Solidary Rights of Solidary prescribed or become illegal. (n)
Creditors Debtors
Rule: [1216] Rule: The debtor may
1. The creditor may make pay any one of the Article 1219. The remission made by the creditor of
a demand against any one solidary creditors. the share which affects one of the solidary debtors
of the solidary debtors or XPN: If any demand, does not release the latter from his responsibility
some or all of them judicial or extrajudicial, towards the co-debtors, in case the debt had been
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 92 of 96

totally paid by anyone of them before the remission prejudice to the effects of 9 Million to X, Y Z,
was effected. (1146a) Article 1219: Solidary creditors.
1) There is a remission
made by the creditor A paid X P9 Million, and
Article 1220. The remission of the whole obligation, 2) The remission consists such payment discharged
obtained by one of the solidary debtors, does not of the share of one of the the obligation of all the
entitle him to reimbursement from his co-debtors. (n) solidary debtors solidary debtors.

Modes of Extinguishment Effect: It does not Subsequently, X

NCC. Article 1231. Obligations are extinguished: release the latter from his condoned or remitted B’s
(1) By payment or performance; responsibility toward the share in the 9 Million
(2) By loss of the thing due; co-debtors, in case the obligation.
(3) By condonation or remission of the debt; debt had eben totally paid
by anyone of them before How much may A collect
(4) By the confusion or merge of the rights of creditor
the remission was from B, C, D?
and debtor’
effected. [Article 1219] -9 Million divided by 4 [A,
(5) By compensation; B, C, D] =2,250,000.00
(6) By novation. -X’s condonation of the
Special Rules of Extinguishment of Solidary B’s share shall have no
effect.
Obligations
What if x condoned or remitted B’s share in the
Rule: Illustration: 9 million obligation prior to A’s payment?
1. Novation, A, B, C, D are solidary A, B, C, D are solidary debtors in the amount of 9
compensation, confusion, debtors in the amount of million to X, Y, Z solidary creditors. X condoned or
or remission of the debt 9 Million to X, Y Z, remitted B’s share in the 9 Million obligation.
made by any of the Solidary creditors. Subsequently, A shall pay X.
solidary creditors or 1. How much must A pay X?
2. Novation, X condones the entire 9 -The remission of B’s share is a partial
compensation, confusion Million debt. extinguishment of the 9 Million debt
or remission of the debt -9 Million less the 2,250,000 remitted share of
with any of the The entire 9 Million B=P6,750,000.
solidary debtors debt is extinguished. 2. Who is liable to pay the 6,750,000?
-A, B, C, D because they are solidary debtors;
Effect: Such acts shall thus, liable for the entire prestation.
extinguish the obligation 3. Assuming A paid X 6, 750,000, how much
[par 1, Art 1215]
shall be the shares of B, C, and D?
The creditor who may A, B, C, D are solidary
-B shall have no share in the 6,750,000,
have executed any of debtors in the amount of
these acts, as well as he 9 Million to X, Y Z, because X condoned the obligation to the
who collects the debt, Solidary creditors. X extent of B’s share. Thus, A, C, and D cannot
shall be liable to the condones the entire 9 benefit from the reduction of the debt [9
others for the share in the Million debt. Million to 6,750,000] on account of the
obligation corresponding How much is X liable to Y remission of B’s share, at the same time hold
them. [par 3, Arty 1215] and Z? B liable for a share in the 6,750,000
-To the extent of the remaining obligation
share in the obligation -the 6,750,000 is divided between A, C, and D
corresponding them only, excluding B, because B’s share has been
-9 Million divided by 3 condoned.
[X,Y, and Z]. X is thus -C and D are thus liable for 2,250,000 each to
liable to Y and Z for 3
A. 😊
million each.
The extinguishment of the Illustration: Payment made by one o Illustration:
whole obligation in A, B, C, D are solidary the solidary debtors A, B, C, D are solidary
Article 1215 is without debtors in the amount of extinguishes the entire debtors in the amount of
obligation. 9 Million to X, Y Z,

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 93 of 96

-If two or more solidary Solidary creditors. A paid 3,000,000.00 each

debtors offer to pay, the X, the creditor, and such [2,250,000 share in the 9
creditor may choose payment discharged the Million debt + the
which offer to accept. obligation of the solidary 750,000 share due to B’s
debtors. insolvency].
The debtor who made the b)Note: A’s share in
payment may claim from How much may A the 9 Million debt is also
hi co-debtors: collect from B,C, D? 3 Million
-only the share which -9 Million divided by 4= P
corresponds to each, with 2,250,000.00
he interest for the Republic vs. Heirs of Africa, GR No. 205722,
payment already made [August 19, 2015]
-If the payment is made The Sandiganbayan [SB] held in its February 4, 2013
before the debt is due, no Resolution that the defendants' liability, being
interest for the solidary, had been extinguished by the execution of
intervening period may be the Compromise Agreement, pursuant to Article 1217
demanded [Article 1217] of the Civil Code which provides that "[p]ayment
Situation: [Article 1217] Illustration: made by one of the solidary debtors extinguishes the
1. Payment was A, B, C, D are solidary obligation." The Court disagrees with the SB.
made by one of debtors in the amount of
the solidary 9 Million to X, Y Z, While it has been established that the defendants'
debtors Solidary creditors. A paid liability in Civil Case No. 0034 is solidary as it arose
X, the creditor, and such from a crime, Article 1216 of the Civil Code gives the
2. Among the non-
payment discharged the creditor the right to proceed against any one of the
paying solidary
obligation of the solidary solidary debtors or some or all of them simultaneously
debtors, one is and the demand made against one of them shall not
debtors. However, B was
insolvent be an obstacle to those which may subsequently be
found to be insolvent.
3. The insolvent directed against the others, so long as the debt has
solidary debtor How shall A be not been fully collected. In this case, respondents
cannot reimburse reimbursed? have not shown that the judgment based on the
his share to the 1. Determine the Compromise Agreement had been fully satisfied; on
debtor paying the shares: the other hand, according to the PCGG, the execution
obligation a) A, B, C, and D of the Compromise Agreement is subject to suits
Rule: The insolvent shall share the 9 Million which are still pending before the SB.
debtor shall be borne by equally—2,250,000 each.
all his co-debtors, in 2. Pro rate the share In fact, the Memorandum of Understanding entered
proportion to the debt of of the insolvent into by the PCGG, TRB, and Benedicto in connection
each. debtor between he with the turnover of P151,645,000.00 worth of bank
solvent debtors: deposits to the Republic, through the PCGG, as part of
a) the share of B, the the assets to be ceded under Annex "A" of the
insolvent solidary debtor, Compromise Agreement, shows that portions of the
is 2, 250,00 which shall Compromise Agreement would be implemented on a
be divided between A,C, staggered basis.Without proof that the Compromise
and D in proportion to Agreement had been fully implemented and in light of
the debt of each. the PCGG's unequivocal assertion to the
b) So the 2,250,000 contrary, respondents' argument that the obligation
divided by 3 [A, C, and had been extinguished must fail.
D] =750,000.
3. Determine the Besides, even on the assumption that the
reimbursement to the Compromise Agreement had been fully implemented,
paying Sd. Add the respondents have not shown that the same operates
share of the non- to extinguish the entirety of the PCGG's claim. At best,
paying insolvent the aggregate amount which had been paid to the
debtor: PCGG by virtue of the Compromise Agreement would
a) C and D must only be deducted from its total claim for recovery of
reimburse A ill-gotten wealth and damages. Such total claim does
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 94 of 96

not even appear in the Amended Complaint and Defenses of Solidary Debtors
hence, one incapable of pecuniary estimation which is Article 1222. A solidary debtor may, in actions filed
still subject to the SB's factual determination. by the creditor, avail himself of all defenses which are
Therefore, the Court cannot jump to the conclusion derived from the nature of the obligation and of those
that there was a complete extinguishment of the which are personal to him, or pertain to his own
solidary obligation under the context of Article 1217 of share. With respect to those which personally belong
the Civil Code. to the others, he may avail himself thereof only as
When is a solidary debtor not entitled to regards that part of the debt for which the latter are
reimbursement? responsible. (1148a)
1. Payment by solidary debtor if such payment is made
after the obligation has prescribed or become illegal. Kinds of Defenses
[1218] 1. Real or Total Defense: Those which are derived
2. The remission of the whole obligation obtained by from the nature of the obligation
one of the solidary debtors. [1220] 2. Personal or Partial Defenses:

Special Rules on Extinguishment of Solidary a. those which are personal to him, or pertain to
Obligation his own share
b. those which personally belong to the other
The obligation shall be Situations: debtors
extinguished, if: 1. If there was fault on
1. The thing has been lost the part of them which SECTION 5
without the fault of the resulted into the loss or Divisible and Indivisible Obligations (1223 –
solidary debtors, or impossibility of the 1225)
2. The prestation has prestation
become impossible 2. If the thing is lost or
without the fault of the performance became Article 1223. The divisibility or indivisibility of the
solidary debtors. [Article impossible through a things that are the object of obligations in which there
1221] fortuitous event AFTER is only one debtor and only one creditor does not alter
on of the solidary or modify the provisions of Chapter 2 of this Title.
debtors has incurred in (1149)
delay through the
judicial or extrajudicial
demand upon him by
[In relation to]
the creditor.
Article 1224. A joint indivisible obligation gives rise to indemnity
for damages from the time anyone of the debtors does not comply
with his undertaking. The debtors who may have been ready to
Rule: all solidary debtors fulfill their promises shall not contribute to the indemnity beyond
shall be responsible to the corresponding portion of the price of the thing or of the value
of the service in which the obligation consists. (1150)
the creditor:
1. For the price of the Article 1225. For the purposes of the preceding articles,
thing lost obligations to give definite things and those which are not
2. The payment of susceptible of partial performance shall be deemed to be indivisible.
damages and interest In the words of Sanchez Roman, the pivotal fact is the
possibility or impossibility of partial prestation. This
susceptibility of partial compliance should be
Note: This is without understood, not in the sense of the possibility or
prejudice to action of impossibility of the delivery of a thing or the
the innocent debtors
performance of an act in separate parts, but in the sense
against the guilty or
of possibility of realizing the end or purpose
negligent debtor. [Article
1221] which the obligation seeks to attain.

Kinds of Division
1. Qualitative Division or one based on equity, not on
number or quantity of the things that are the object of
the obligation.
From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina
Page 95 of 96

2. Qualitative division or one based on quantity rather

than on quality.
3. Ideal or intellectual division or one which exists
only in the minds of the parties.

Kinds of Indivisibility:
(1) Legal indivisibility.—where a specific provision of
law declares as indivisible, obligations which, by their
nature, are divisible;

a. Article 618. Easements are indivisible. If the

servient estate is divided between two or more
persons, the easement is not modified, and each
of them must bear it on the part which
corresponds to him.
b. Article 2089. A pledge or mortgage is indivisible,
even though the debt may be divided among the
successors in interest of the debtor or of the
creditor.

(2) Conventional indivisibility.—where the will of the

parties makes as indivisible, obligations , which, by their
nature, are indivisible; and
(3) Natural indivisibility.—where the nature of the
object or prestation does not admit of division

*End of First Exam Coverage*

From the Lectures of Atty. Bruneson Alabastro | Transcribed by: Mary Nove Patangan; Robien Cerbo; Gabriella Medina