(2) Civil Law - Cruz

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FORMALITIES OF A DONATION INTER VIVOS A. For movable property (Art. 748 NCC) 1. may be made orally or in writing; 2. oral donation requires simultaneous delivery of the thing or of the document representing the right donated; 3. donation AND acceptance must be in writing if the value of the P 5,000.00; property exceeds ex

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B. For immovable property (Art. 749 NCC) 1.

2.

3.

donation must be in a public instrument, specifying therein the property donated and the value of the charges which the donee must satisfy; acceptance may be in same deed or in a separate public document; if in a separate document, donor shall be notified thereof in an authentic form and this step shall be noted in both instruments. www.chanroblesbar.com : www.chanroblesbar.com.ph

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CARINAN vs. SPS. CUETO, GR 198636, 10/8/14

Roberto Ventura

Jose (+)

Esperanza Jazer

DOA w/TOR & AOO over a 180 sq.m. lot w/TCT in the name of GSIS

failed to pay monthly amortizations.

Sps. Gavino & Carmela paid a total of P1,300,680.37 Cueto for unpaid payment by Gavino was a DONATION to her

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monthly amortizations, transfer of title & house renovation; TCT in Esperanza’s name was surrendered to them.

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VILLANUEVA vs. SPOUSES BRANOCO, GR 172804, Jan. 24, 2011

Alvegia Rodrigo

3,492 sq.m. lot located in Leyte

Casimiro Vere

Eufracia Rodriguez

DOS-Aug. ‘70

DOD-May 3, 1965

Gonzalo Villanueva DOS-July ‘71

Sps. Branoco DOS-July ‘83

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DEED OF DONATION 3 May 1965

I, DONOR, XXX due to love & affection, devise a lot to DONEE, her heirs, successors & assigns; lot is now in the possession of DONEE since May 21, 1962 in the concept of an owner; ownership shall be vested on DONEE upon my demise; if DONEE predeceases me, the said lot shall not be reverted to DONOR but will be inherited by DONEE’s heirs.

I accept the land & I will give ½ of its produce to DONOR during her lifetime.

Sgd. ______________ DONOR

Sgd. ______________ DONEE _______________ Witness # 1

_______________ Witness # 2

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This is a donation inter vivos. The donor stipulated that “if the Donee predeaceases me, the property will not be reverted to the Donor, but will be inherited by the donee’s heirs,” signalling the irrevocabillity of the passage of title to the donee’s estate, waiving donor’s right to reclaim title. This transfer of title was perfected the moment she learned of the donee’s acceptance of the disposition which, being reflected in the Deed, took place on the day of its execution on 3 May 1965. The donee’s acceptance underscores its essence as a gift in presenti, NOT in futuro, as only donations inter vivos need acceptance by the recipient. www.chanroblesbar.com : www.chanroblesbar.com.ph

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DEL ROSARIO vs. FERRER, GR 187056, September 20, 2010

DONATION MORTIS CAUSA “IT IS OUR WILL THAT:

Our property in Pandacan be divided equally among Asuncion, Emiliano & Jarabini; this DMC shall be irrevocable and shall be respected by the s.s.; Jarabini & Emiliano will continue to occupy the portions now occupied by them; anyone of the s.s. reserves the right, ownership, possession, adm. of this property; this DMC shall be operative & effective upon the death of DONORS.” 1.______________ Accepted: Sgd. 2.______________ 3.______________

Sgd. ______________ DONORS DONEES

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The express "irrevocability" of the donation is the "distinctive standard that makes the document a donation inter vivos." Here, the donors plainly said that it is "our will that this Donation Mortis Causa shall be irrevocable and shall be respected by the surviving spouse." The intent to make the donation inter vivos becomes even clearer by the proviso that the surviving donor shall respect the irrevocability of the donation. Consequently, the donation was in reality a donation inter vivos. www.chanroblesbar.com : www.chanroblesbar.com.ph

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SPS. SICAD vs. CA, GR 125888, 8/13/1998 DEED OF DONATION INTER VIVOS I, ____________, donate this lot to my grandchildren ___________________; this donation to take effect 10 years after my death; my grandchildren shall not sell or encumber this lot within 10 years after my death. Signed:

Donor

Accepted:

donees

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TAN QUETO vs. POMBUENA GR No. 35648, Feb. 2, 1987 An oral donation of land is VOID: it cannot be considered a valid donation inter vivos because it was not executed in a public instrument; it cannot also be a valid donation mortis causa because it did not comply with the formalities of a will.

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ROMAN CATHOLIC ARCHBISHOP OF MANILA vs CA, GR Nos. 77425 & 77450, June 19, 1991 Donation of a parcel of land was subject to a resolutory condition that property should not be sold within 100 years from the execution of the Deed of Donation, violation of which would render the donation ipso facto null and void. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ARCABA vs. TABANCURA Vda. DE BATOCAEL, GR 146683, 11/22/2001 Cirila (34 yrs. old)

Francisco

Zosima

75 yrs old (+1991)

(+)

418 sq.m. lot w/house

DEED OF DONATION In consideration of the faithful services rendered to me by Cirila Arcaba for over 10 years, I donate to her 150 sq.m. lot with the house erected thereon.

Francisco Comille Donor

Accepted:

Cirila Arcaba www.chanroblesbar.com : www.chanroblesbar.com.ph

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Cirila admitted that she and Francisco resided under one roof for a long time. It is very possible that the two consummated their relationship, since Cirila gave Francisco therapeutic massage and they slept in the same bedroom. Their public conduct indicated that theirs was not just a relationship of caregiver and patient, but that of exclusive partners akin to husband and wife, hence the inescapable conclusion is that the donation made by Francisco in favor of Cirila is VOID under Article 87 of the Family Code.

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WILLS AND SUCCESSION

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Art. 774.

SUCCESSION

ART.777. TRANSMISSION OF SUCCESSIONAL RIGHTS

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FERRER vs. SPS. DIAZ, G.R. 165300, April 23, 2010 Q: Is a waiver of hereditary rights in favor of another person executed by a future heir while the parents are still alive valid? Is an adverse claim annotated on the title of a lot based on such waiver likewise valid and effective as to bind the subsequent owners and hold them liable to the claimant?

A: For the inheritance to be considered “future”, the succession must not have been opened at the time of the contract. At the time of the execution of Reina’s waiver of hereditary rights, succession to either of her parents’ properties has not yet been opened since both of them are still living, hence, Reina’s waiver is NOT VALID. As no right or interest flows from Reina’s invalid waiver, petitioner’s adverse claim is without any basis and must be adjudged INVALID and INEFFECTIVE and perforce be CANCELLED. www.chanroblesbar.com : www.chanroblesbar.com.ph

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In Re Petition For Probate of Last Will and Testament of Basilio Santiago, GR 179859, Aug. 9, 2010 Basilio Santiago (+ 9/16/73)

(1)Bibiana (+) 1. Irene (+) 2. Martha (+)

(2) Irene (+) 5 children + Ma. Pilar

(3) Cecilia 2 children + Clemente

6 children

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“4. ALL my properties, I bequeath to my heirs, as follows: e). H & L in Manila shall be transferred in the names of Ma. Pilar and Clemente NOT as inheritance but only so they can ADMINISTER the same; x x x said H & L shall have NO OWNER so it can be forever used by anyone of my descendants who want to study in Manila or nearby cities;

This provision in the will is NOT VALID. It is contrary to public policy. When a will provides for indivision of property, it is subject to the statutory limitation that the prohibition to partition such property can only last for 20 years. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ARTICLE 799 NCC.

SOUND MIND

BALTAZAR vs. LAXA, GR 174489, April 7, 2012 The state of being forgetful does not necessarily make a person mentally unsound so as to render her unfit to execute a valid will. Under Art. 799 NCC, to be of sound mind, it is enough that the testator, at the time of making the will, knows the nature of the estate to be disposed of, the proper objects of her bounty, and the character of the testamentary act. A testator is presumed to be of sound mind at the time of the execution of her will and the burden is on the oppositor to prove otherwise. (Art. 800 NCC). www.chanroblesbar.com : www.chanroblesbar.com.ph

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EXTRINSIC VALIDITY OF WILLS (As To Time): ART. 795 NCC EXTRINSIC VALIDITY OF WILLS (As To Place): ART. 17(1) NCC Arts. 815, 816, 817, 818, 819 NCC

INTRINSIC VALIDITY OF WILLS (As To Place): ART. 16(2) NCC

INTRINSIC VALIDITY OF WILLS (As To Time): ART. 2263 NCC www.chanroblesbar.com : www.chanroblesbar.com.ph

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ARTS. 804/805/806.

FORMALITIES OF A NOTARIAL WILL

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1.Attestation Clause: a). Attestation Clause did not contain the statement “the 3 credible that

witnesses signed the will in the presence of the T and of one another” (CANEDA vs. CA, 222 SCRA 781, MAY 28, 1983). www.chanroblesbar.com : www.chanroblesbar.com.ph

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b). Attestation Clause did not contain the statement that “the T

signed the will in the presence of the 3 credible witnesses” (GIL vs. MURCIANO, 88 PHIL 260). www.chanroblesbar.com : www.chanroblesbar.com.ph

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2. AZUELA vs. CA AND CASTILLO, GR No. 122880, April 12, 2006

3

LWT I,

2

1. to be buried at North Cemetery, La Loma; 2. Devising 2 lots to my nephew Felix Azuela;

1

3. Appointing Vart Pague, executor of my will without bond. Signed June 10, 1981 in Manila. Eugenia E. Igsolo

T www.chanroblesbar.com : www.chanroblesbar.com.ph

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3

ATTESTATION CLAUSE This document, consisting of ______ pages, including this last page x x x .

2

ACKNOWLEDGMENT Signed and notarized by me this 10th day of June 1981 in Manila.

1

Petronio Y. Bautista

Doc. No. 1232 Page No. 86 Book No. 43 Series of 1981

Notary Public Until Dec. 31, 1981 PTR TAN

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A will whose attestation clause does not contain the number of pages upon which the will is written is fatally defective. A will whose attestation clause is not signed by the instrumental witnesses is also fatally defective. A will which contains a mere jurat and not an acknowledgment is, likewise, fatally defective. Anyone of these defects is sufficient to deny probate. A notarial will with all these three defects is just aching for judicial rejection.

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3. Attestation Clause signed by T.

not

(ABANGAN vs. ABANGAN, 40 PHIL 476).

4. Attestation Clause not signed by 1 witness. (CAGRO vs. CAGRO, 92 PHIL 1032) www.chanroblesbar.com : www.chanroblesbar.com.ph

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5. Attestation Clause in language not known to T.

a

6. Attestation Clause in language not known attesting witnesses.

a to

7. Attestation Clause did not include the number of pages of a will. (SINGSON vs. FLORENTINO,

92 PHIL 161)

(TABOADA vs. ROSAL, 203 PHIL 572) www.chanroblesbar.com : www.chanroblesbar.com.ph

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8. Decedent’s alleged will was written entirely in English but the T knew no other language except the Igorrote dialect with a smattering of Ilokano. (ACOP vs. PIRASO, 52 PHIL 660) 9.

5-paged will, 1 page of which was not signed by 1 witness at L-hand margin. (ICASIANO vs. ICASIANO, 11 SCRA 423) www.chanroblesbar.com : www.chanroblesbar.com.ph

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10. 6-paged will, the first 5 pages were signed at the L-hand margin by the T but not by the three(3) attesting witnesses. (IN RE WILL OF PRIETO, 46 PHIL 700)

11. 1-paged will not signed by T and 3 attesting witnesses at L-hand margin. (ABANGAN vs. ABANGAN, 40 PHIL 476) www.chanroblesbar.com : www.chanroblesbar.com.ph

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12. 2-paged will, the first page of which was not signed by the T at the L-hand margin. LWT AC

ACK

Page [1]

D ___ P ___ B ___ S ___

Page [2]

(ESTATE OF TAMPOY vs. ALBERASTINE, 107 PHIL 100) www.chanroblesbar.com : www.chanroblesbar.com.ph

1 . 2 . 3 .

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13. Marginal signatures of T and 3 witnesses were placed on R margin instead of L. T

LWT

AC 1 2

ACK

3 Page [1]

D ___ P ___ B ___ S ___

1 . 2 . 3 .

Page [2]

(AVERA vs. GARCIA, 42 PHIL 145) www.chanroblesbar.com : www.chanroblesbar.com.ph

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14. Testator’s name was written for the testator, in his presence and at his express direction, by one of the 3 credible witnesses.

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15. T’s signature is located below the signature of the Notary Public in the acknowledgment. AC

LWT

1 _______ 2 _______ 3 _______

T

ACK

[1]

D ___ P ___ B ___ S ___

[2]

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16.

True test of “signing in the presence” of T and 3 witnesses.

(JABONETA vs. GUSTILO, 5 PHIL 541) www.chanroblesbar.com : www.chanroblesbar.com.ph

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17. CRUZ vs. VILLASOR, 54 SCRA 31 NOVEMBER 26, 1973 Notarial will was executed by T. One of the 3 attesting witnesses was the Notary Public before whom the will was acknowledged and subscribed. Is the will valid or void?

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ECHAVEZ vs. Dozen Construction & Dev. Corp. et. al., GR 192916, Oct. 11, 2010 The attestation clause and an acknowledgment CANNOT be merged in one statement. An acknowledgment is made by one executing a deed, declaring before a competent officer that the deed or act is his own. The attestation of a will refers to the act of the witnesses who certify to the execution of the instrument before them and to the manner of its execution. An attestation must state all the details the 3rd paragraph of Article 805 NCC requires.

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Art. 810 - 814. HOLOGRAPHIC WILLS

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AJERO vs. CA, 236 SCRA 488 SEPTEMBER 15, 1994 Probate of the HW was opposed on the following grounds: (1)

the will and the signature were not in decedent’s handwriting;

(2)

some dispositions were signed but were not dated by T;

(3)

there were alterations and corrections not signed by T. www.chanroblesbar.com : www.chanroblesbar.com.ph

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The holographic will of testatrix contained only one provision which reads: “I bequeath to my sole heir, Rosa Kalaw all my properties.” Signed: Date :

Natividad Kalaw December 24, 1968

KALAW vs. RELOVA, 132 SCRA 237 www.chanroblesbar.com : www.chanroblesbar.com.ph

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The holographic will of testatrix contained only one provision which reads: Gregorio “I bequeath to my sole heir, Rosa Kalaw all my properties.” Signed: Date :

Natividad Kalaw December 24, 1968

KALAW vs. RELOVA, 132 SCRA 237 www.chanroblesbar.com : www.chanroblesbar.com.ph

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SEANGIO vs. REYES, GR 140371-72, 11/27/06 Segundo

Dy Yieng

(+)

1. Alfredo

4. Alberto

6.Victor

2. Virginia

5. Elisa

7. Alfonso

3. Barbara

9. Betty 10. James

8. Shirley

DOCUMENT OF DISINHERITANCE I, xxx, am disinheriting ALFREDO xxx grossly disrespectful to me xxx in my presence and in the presence of his sister VIRGINIA. Xxx borrowed millions using my name but did not pay China Banking Corp; xxx pirated clients of Travel Center of the Phil. which I and my daughter VIRGINIA manage/administer xxx. (Signed):

Witness #1

Segundo Sept. 20, 1995

Witness #1 www.chanroblesbar.com : www.chanroblesbar.com.ph

Witness #2

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The document, although it may initially come across as a mere disinheritance instrument, conforms to the formalities of a holographic will as prescribed by law. It is written, dated and signed by the hand of the testator himself. An intent to dispose mortis causa can be clearly deduced from the terms of the instrument, and while it does not make an affirmative disposition of the testator’s property, the disinheritance of the eldest son, nonetheless, is an act of disposition in itself. Stated otherwise, the disinheritance results in the disposition of the testator’s property in favor of the other heirs who would succeed in the absence of the eldest son.

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ART. 830. REVOCATION OF WILLS A.

BY IMPLICATION OF LAW 1. T gave a legacy of his 2012 Honda Civic car to X in a will he executed in 2013. In 2014, T sold the car to A for P1M. On T’s death in 2015, will X get the car, the P1M or nothing?

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B.

REVOCATION BY AN OVERT ACT 1. Will was thrown into a fire and was burned despite the efforts of T to retrieve and save it. 2. Will was thrown into a fire in T’s garden by T with intention to revoke but will was not burned because T’s grandson retrieved it from the fire.

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3. T, with intention to revoke, threw his will upon the fire. Only the upper portion of the will was burned and the entire writing on the will remained intact.

4. With intention to revoke, T tore his signature from his will leaving all the other portions of the will intact and readable. www.chanroblesbar.com : www.chanroblesbar.com.ph

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C.

REVOCATION BY ANOTHER WILL 1. T made a will in 2014. After one year, he wanted to revoke will #1 so he made will #2 in 2015. In the belief that he had already executed a valid will, he tore will #1. On his death in 2016, it was discovered that will #2 was attested by only 2 credible witnesses, hence, the will was NOT validly made. Can we consider will #1 validly revoked or could it still be given effect? www.chanroblesbar.com : www.chanroblesbar.com.ph

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DOCTRINE OF DEPENDENT RELATIVE REVOCATION If T revokes his will with the present intention of making a new one and as a substitute, if the new will is NOT MADE or even if made,it FAILS to take effect for any reason whatsoever, it will be presumed that the T prefers the old will rather than intestacy. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Where the act of destruction is connected with the making of another will so as fairly to raise the inference that the T meant the revocation of the 1st will to depend upon the efficacy and validity of the 2nd will, the revocation shall be CONDITIONED and DEPENDENT upon the validity of the 2nd will and if, for any reason, the 2nd will intended to be a substitute is INOPERATIVE, the revocation of the 1st will fails and it remains in full force and effect. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 837. EXPRESS REVOCATION

A

WILL #1

WILL #2

LWT

LWT

T

T

B

(+2016) Y Z

C

X

“expressly revoking will #1”

2014

2 credible witnesses

disallowed by Probate court

2015

DOCTRINE OF DEPENDENT RELATIVE REVOCATION www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 837. EXPRESS REVOCATION WILL #1

WILL #2

Notarial will

Holographic Will

(+2016) T

A

B

only copy burned by T inadvertently

T

C

X

Y

Z

“I am expressly revoking will #1”

2014

testimonies of 10 witnesses

2015

DOCTRINE OF DEPENDENT RELATIVE REVOCATION www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 835. REPUBLICATION OF WILLS LWT

LWT

WILL VOID AS TO FORM

REVOKED WILL

T Express republication

T Implied republication

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ART. 838. PROBATE OF WILLS LWT

“xxx this will shall

not be presented before the courts.”

T

(TESTATE ESTATE OF PILAPIL, 72 PHIL 546) www.chanroblesbar.com : www.chanroblesbar.com.ph

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In Re: In The Matter of The Petition To Approve The Will of Ruperta Palaganas, GR 169144, JAN. 26, 2011 Q:

May a will executed by a foreigner abroad be probated in the Philippines although it has not been previously probated and allowed in the country where it was executed?

A: YES.

Our laws do not prohibit the probate of wills executed by foreigners abroad although the same have not as yet been probated and allowed in the countries of their execution. A foreign will can be given legal effects in our jurisdiction. Article 816 NCC states that the will of an alien who is abroad produces effect in the Philippines if made in accordance with the formalities prescribed by the law of the place where he resides, or according to the formalities observed in his country. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 854 NCC.

PRETERITION

1. T has legitimate sons, A and B. A was instituted as sole and universal heir to an estate of P1M and a legacy of P100K was given to T’s friend F. P1M/2= P500K leg. P500K FP

T P250K P200K A

B

P250K P200K

F (P100K)

2. Suppose the legacy given to F was P700K instead of P100K, what is the effect? T

P250K A

B P250K

P500K F (P700K) X

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MORALES vs. OLONDRIZ, et.al., GR 198994, 2/3/16 (+6/9/03)

Alfonso Juan Francisco

Ana Maria

Alfonso Alejandro Isabel Angelo

Special Adm. The will presented by Iris has the following provisions: 1) “Iris Morales shall be the executor hereof; 2) My estate shall be distributed equally among: Iris; my children Alfonso, Alejandro, Isabel, Angelo and their mother, Ana Maria Ortigas de Olondriz, Sr. xxx.

Q:

Was there preterition in the case at bar? www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 856. VOLUNTARY/ COMPULSORY HEIRS WHO DIE/ARE INCAPACITATED/ RENOUNCE INHERITANCE VOLUNTARY HEIR

P9M/2=P4.5M leg. P4.5M FP

COMPULSORY HEIRS T (+2015)

T (+2015)

F (+2014) X

A X

Estate is P10M

(+2014) A P1.5M

P750K X

B

C

P1.5M P1.5M P2.25M P2.25M

P750K Y

Estate is P9M

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ART. 863.

FIDEICOMMISSARY SUBSTITUTION T -

Only 1 degree apart in relationship

fideicomitente

A - 1st heir (fiduciary heir) preserve & transmit the property

B - 2nd heir (fideicommissary heir)

C www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 891. RESERVA TRONCAL ORIGIN (ascendant, bro/sis. where property came from)

RESERVOR (ascendant who acquired property by operation of law) PROPOSITUS (descendant who acquired property gratuitously) RESERVATARIOS (relatives within the 3rd degree belonging to the line where the property comes from.) www.chanroblesbar.com : www.chanroblesbar.com.ph

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MENDOZA, et.al. vs. DELOS SANTOS, GR 176422, MAR. 20, 2013 Dominga

Placido (+)

(+)

Antonio Exequiel (+)

1. 2. 3. 4. 5. 6.

Maria Deogrcias Dionicia Adoracion Marcela Ricardo

(+)

Leonor (+)

Julia Apolonio Valentin (+)

(+)

Remedios Gregoria (+ 1992)

Lot 1681-B → 7,749 sq.m. Lot 1684 → 5,667 sq.m. Lot 1646-B → 880 sq.m. www.chanroblesbar.com : www.chanroblesbar.com.ph

1. 2. 3. 4. 5.

Juliana Fely Mercedes Elvira Fortunato

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Juliana (+1889)

Segunda

Francisco (1914)

Alfeo (+1890) 2 parcels of land

Manuela

Jose

NIEVA vs. ALCALA, 41 PHIL 915 www.chanroblesbar.com : www.chanroblesbar.com.ph

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Jerico

Jojo

Victor

Mark

Princess

Roberto

(+ intestate)

(+)

(+ intestate) e)

Pepito

Onofre ID of lot worth P3M

(+ intestate)

Q: Who among the 3 ascendants is entitled to the lot? (2016 bar exam) www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 874. CONDITION NOT TO MARRY

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1.

LWT

2.

“I institute my friend X as sole heir to my estate of P10M on the condition she shall not marry A.”

T

LWT

3.

“I institute my husband X as sole heir to my estate of P10M on the condition he shall not remarry.”

LWT

“I leave to my beloved wife all my properties worth P10M and she shall not remarry.”

T

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T

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Art. 874. CONDITION NOT TO MARRY In her will, the wife stated: “1. I hereby order that all real estate which may belong to me shall pass to my husband;

2. That my said husband shall not leave my brothers after my death, and that he shall not marry anymore; xxx ;

MORENTE vs. DELA SANTA, 9 PHIL 387) www.chanroblesbar.com : www.chanroblesbar.com.ph

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LEGITIMES

and

F

FREE PORTION M

P

T

S P1.5M leg. (FP) P300K

P150K P150KX

Y

P300K

A

P300K

B

P300K

C (adopted child)

(Illegitimate) (legitimate) P1.5M leg. each P750K leg. each (FP) Total = P1.5M leg. (FP)

NHE is P9M

P9M/2= P4.5M leg. P4.5M FP

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ARTICLE 915. DISINHERITANCE ART. 918. INEFFECTIVE DISINHERITANCE www.chanroblesbar.com : www.chanroblesbar.com.ph

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COMBINATION PRETERITION AND DISINHERITANCE 1. A, B and C are T’s legitimate children. T instituted A as sole heir, completely omitted B from inheritance and disinherited C for having been found guilty of an attempt against T’s life. Distribute T’s estate of P900K. T

A P450K

B

C

P450K

0

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2. Same facts as #1 but the disinheritance of C was because he immediately married X right after he graduated from FEU with a degree of Bachelor of Laws. Distribute T’s estate of P900K. P900K/2= P450K leg. P450K FP

T

A

B

C

P150K P225K

P150K P225K

P150K

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3. T’s legitimate children are X, Y and Z. T disinherited all of them: X, for no reason whatsoever; Y, for not taking care of him when T was hospitalized at St. Luke’s hospital and Z for living the life of a male prostitute. T’s estate is P900K. T

P900K/2= P450K leg. P450K FP

X

Y

Z

P225K P225K

P225K P225K

0

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ART. 922 NCC. RECONCILIATION T’s will reads: “I disinherit my son X for trying to kill me.” X was convicted and served his prison term. When he was released from Muntinlupa, X stayed with his father in his father’s house until T’s death. T never changed his will (where the disinheritance was made). T did not also execute any document condoning X’s offense. Will X inherit from T?

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ART. 923 NCC. T’s estate is P1M; A and B are sons of T; C is the son of A; B was instituted as heir and A was disinherited in the will for his unjust refusal to support T during T’s lifetime. Distribute T’s estate. T P250K X leg. A

P1M/2= P500K leg. P500K FP

B P250K leg. P500K FP

C P250K 250K lleg. www.chanroblesbar.com : www.chanroblesbar.com.ph

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REPRESENTATION OR ACCRETION D’s estate is P900K; A, B, C are children of D who died with a revoked will; D

a. b. c.

predecease R incapacity repudiation

P300K P150K

A P150K

A P300K B

X

Y P150K

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C P300K

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ART. 969. REPUDIATION OF INHERITANCE D Estate = P1.2M

A

W

X

B

C

Y

Z

1. A, B, C repudiated inheritance. 2. Only C repudiated inheritance. 3. A, B, C predeceased D. 4. A predeceased D. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ARTS. 976/977. D (+2016)

Estate of A = P10M Estate of D = P20M

P10M X

P10M

(+2014) A

Y - repudiated his inheritance

P10M X P5M

B

from A.

P5M

Z www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 992.

IRON CURTAIN/ BARRIER

X

A (leg.)

B (ill.)

If A dies without any descendant and with B as only surviving relative, will B inherit from A? www.chanroblesbar.com : www.chanroblesbar.com.ph

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Arado Heirs, et.al. vs. Alcoran, et.al., GR 163362, July 8, 2015 (2 lots) 4 siblings nephews/ nieces

Joaquina

Nicolas (+1954)

Filed suit in 1992

Anacleto (Born 7/13/51)

Raymundo (+1939)

(+1981)

Francisca

(8 lots)

Elenette e 1972

Florencia

3 siblings

(+1960)

(1). Anacleto’s BC and Page 53, Book 4, Register No. 214 of the Register of Births of the Municipality of Bacong, Negros Occ.; (2). His baptismal certificate; (3). Pictures taken during Nicolas’ wake showing Anacleto being carried by Joaquina and Florencia; (4). his school records; (5) his Marriage Certificate; and (6). Joaquina’s will.

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Q1: Is Anacleto the illegitimate son of Nicolas? Q2: Is he entitled to the properties in litigation?

A: YES. The father has duly acknowledged the child as his illegitimate son. The birth certificate of the child appearing in the Register of Births showed that the father had himself caused the registration of his birth, he being the informant of the birth to be registered. Considering that the father had a direct hand in the preparation of the birth certificate, reliance on the birth certificate of Anacleto as evidence of his paternity was fully warranted. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Arado Heirs, et.al. vs. Alcoran, et.al., GR 163362, July 8, 2015 (2 lots) 4 siblings nephews/ nieces

Joaquina

Nicolas (+1954)

Filed suit in 1992

Anacleto X (Born 7/13/51)

Art. 992 NCC

Raymundo (+1939)

(+1981)

Francisca

(8 lots)

Elenette 1972

Florencia

3 siblings

(+1960)

(1). Anacleto’s BC and Page 53, Book 4, Register No. 214 of the Register of Births of the Municipality of Bacong, Negros Occ.; (2). His baptismal certificate; (3). Pictures taken during Nicolas’ wake showing Anacleto being carried by Joaquina and Florencia; (4). his school records; (5) his Marriage Certificate; and (6). Joaquina’s will.

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DIAZ vs. IAC, 182 SCRA 427 Simona Pamuti Vda. de Santero (+ 1976 intestate)

Pablo Santero (+)

sister (+)

Felisa Pamuti ---- Jardin

6 ill. children www.chanroblesbar.com : www.chanroblesbar.com.ph

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In RE: Intestate Estates of Josefa Delgado and Guillermo Rustia, GR No. 155733, January 27, 2006 Ramon Osorio

Felisa Delgado

Lucio Campo

(+)

(+)

(+)

Luis Delgado

Guillermo Rustia

(+)

(+2/28/74)

Josefa Delgado (+9/8/72)

heirs Guillerma Rustia

1. 2. 3. 4. 5.

Guillermina Rustia Nanie Rustia

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Nazario Edilberta Jose Jacoba Gorgonio g

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RELATE TO ART. 902. RIGHTS OF ILLEGITIMATE CHILDREN D (+2016)

(+2014) A (leg)

B (+2015) (ill)

Art. 992

Art. 902

W (leg)

X (ill)

Y (leg)

Z (ill)

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OBLIGATIONS AND CONTRACTS

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ART. 1169. Gen. Rule: NO DEMAND, NO DELAY EXCEPTIONS: WHEN 1. the obligation or the law expressly so declare; 2. time is of the essence; 3. demand is useless as when the obligor has rendered it beyond his power to perform. General Milling Corp. vs. Spouses Ramos, G.R. 193723, July 20, 2011 The foreclosure of a mortgage where there was NO DEMAND for payment is VOID because there was NO DELAY. GMC did not make a demand on Sps. Ramos but merely requested them to go to GMC’s office to discuss the settlement of their account. Sps. Ramos had not defaulted in their payments and foreclosure by GMC was premature. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 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.

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RCPI vs. VERCHEZ G.R. 164349, Jan. 31, 2006. RCPI bound itself to deliver the telegram within the shortest possible time. It took 25 days, however, for RCPI to deliver it. RCPI invokes force majeure, specifically, the alleged radio noise and interferences which adversely affected the transmission and/or reception of the telegraphic message. Assuming that fortuitous circumstances prevented RCPI from delivering the telegram at the soonest possible time, it should have at least informed Grace of the non-transmission and the non-delivery so that she could have taken steps to remedy the situation. But it did not. There lies NOT ONLY DELAY but also NEGLIGENCE. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 1174. GEN. RULE: No person shall be liable for a fortuitous event. REQUISITES OF A FORTUITOUS EVENT: 1. Cause of the breach of obligation must be independent of the will of the debtor; 2. Event must be either unforeseen or unavoidable; 3. Event must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner; 4. Debtor must be free from any participation in or aggravation to the injury to the creditor.

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FIL-ESTATE PROPERTIES, INC vs. SPS. RONQUILLO, GR 185798, 1/13/14 Sps. Ronquillo 8/24/97 – bought 82 sq.m. condo unit for P5,174,000.00; paid P200K reservation fee & DP of P1,552,200.00; had been paying monthly amortizations of P63,363.33 until Sept. 1998

Fil-Estate Prop. Inc. Complaint w/the HLURB for full refund & interests + damages

Central Park Palace Tower Construction works stopped & failed to develop the condo project due to the Asian Financial Crisis

The fluctuating movement of the Philippine peso in the foreign exchange market is an everyday occurrence, and fluctuations in currency exchange rates happen everyday, thus, NOT an instance of caso fortuito.” www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1191 NCC. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him.

The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible. The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period. XXX www.chanroblesbar.com : www.chanroblesbar.com.ph

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NOLASCO, et.al. vs. CUERPO, et.al., GR 210215, Dec. 9, 2015 Contract To Sell of a 165,755 sq. m. lot, payable w/an earnest money, downpayment and balance payable in 36 monthly instalments by post-dated checks, provides: “7. Petitioners shall, w/n 90 days from the signing of the subject contract, cause the completion of the transfer of registration of title of the property subject of the contract, from Edilberta N. Santos to their names, at petitioners’ own expense. Failure on the part of petitioners to undertake the foregoing w/n the prescribed period shall automatically authorize respondents to undertake the same in behalf of petitioners and charge the costs incidental to the monthly amortizations upon due date.”

Petitioners failed to comply, hence it was contended that rescission due to substantial breach is the proper remedy. The RTC and CA ruled for respondents. www.chanroblesbar.com : www.chanroblesbar.com.ph

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For a contracting party to be entitled to rescission (or resolution) in accordance with Article 1191 of the Civil Code, the other contracting party must be in substantial breach of the terms and conditions of their contract. A substantial breach of a contract, unlike slight and casual breaches thereof, is a fundamental breach that defeats the object of the parties in entering into an agreement. Here, it cannot be said that petitioners' failure to undertake their obligation under paragraph 7 defeats the object of the parties in entering into the subject contract, considering that the same paragraph provides respondents’ contractual recourse in the event of petitioners' non-performance of the aforesaid obligation, that is, to cause such transfer themselves in behalf and at the expense of petitioners. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 1189.

Effect of loss , deterioration or improvement (determinate thing) :

IF THE THING : 1. is lost w/o the fault of debtor → the obl. is extinguished; 2. is lost thru the fault of debtor → debtor liable for damages; 3. deteriorates w/o the fault of debtor → impairment shall be borne by the creditor; 4. deteriorates thru the fault of debtor → creditor may choose between fulfillment or rescission of the obl., w/damages in either case; 5. is improved by its nature/time→ improvement shall inure to the benefit of the creditor; 6. is improved at the expense of debtor→ debtor has no other right than that granted to a usufructuary. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 1193. Obligations with a period demandable only when that day comes; Obligations w/a resolutory condition → take effect at once, but terminate upon arrival of the day certain. ART. 1180. Debtor binds himself to pay when his means permit him to do so → deemed to be an obligation with a period. Art. 1197. Obligation does NOT fix a period but from its nature and circumstances, it can be inferred a period was intended → courts may fix the duration of the period.

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ART. 1198.

RIGHT TO A PERIOD is LOST when DEBTOR:

1. becomes insolvent, after the obligation has been contracted, unless he gives a guaranty/security for the debt; 2. does not furnish to the creditor the guaranties or securities he has promised; 3. by his own acts, he has impaired said guaranties or securities after their establishment, and when through a fortuitous event, they disappear, unless he immediately gives new ones equally satisfactory; 4. violates any undertaking, in consideration of which the creditor agreed to the period; 5. attempts to abscond. www.chanroblesbar.com : www.chanroblesbar.com.ph

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In SOLIDARY OBLIGATIONS:

1. defense of one is defense of all except if the defense is personal to him interposing the defense; 2. payment by one is payment by all but the one who paid is entitled to reimbursement by the other codebtors; 3. fault of one is fault of all but the others have a right of recourse against the one at fault; 4. remission secured by one is remission of the whole debt but the one who procured remission is not entitled to reimbursement from the others. www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 1222. Available to a solidary debtor are DEFENSES: 1. Personal to him or pertain to his share;

2. Derived from the nature of the obligation;

3.

Personally belong to the others but only with regard to that part of the debt which belong to the others.

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MANLAR RICE MILL, INC. vs. DEYTO, GR 19189, JAN. 29, 2014 Lourdes Deyto (JD. Grains Center) Manlar Rice Mill, Inc. Rice Supply Contract of P3,843,220.00 covered by post-dated checks issued by Janet

Janet D. Ang (Janet Commercial Store) Checks bounced; absconded & cannot be located

Q: Are Deyto & Ang solidarily liable to Manlar? www.chanroblesbar.com : www.chanroblesbar.com.ph

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The allegations that Deyto guaranteed Ang’s checks and that she consented to be held solidarily liable with Ang under the latter’s rice supply contract with Manlar are hardly credible. Pua in fact admitted that this was not in writing, just a verbal assurance. But this will not suffice. "Well-entrenched is the rule that solidary obligation cannot lightly be inferred. There is a solidary liability only when the obligation expressly so states, when the law so provides or when the nature of the obligation so requires."

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ART. 1226. Obligations with a PENAL CLAUSE Gen. Rule: Penalty shall substitute for damages and the payment of interest. EXCEPTIONS: 1. stipulation to the contrary; 2. obligor refuses to pay the penalty; 3. obligor is guilty of fraud in the fulfillment of the obligation.

ensures performance of the obligation.

ART. 1228. proof of actual damages suffered by the creditor is NOT necessary in order that penalty may be demanded.

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ART. 1229. Judge can equitably reduce the penalty when: 1. Principal obligation was partly/irregularly complied with by the debtor; 2. Even if NO performance by the debtor, if penalty is iniquitous/unconscionable.

ART. 1230. Nullity of penal clause → does NOT carry with it the nullity of the principal obligation. Nullity of the principal obligation → carries with it the nullity of the penal clause. www.chanroblesbar.com : www.chanroblesbar.com.ph

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EXTINGUISHMENT OF OBLIGATIONS PA LO CON MER COM NO

Payment

Novation

Loss of the thing due

Compensation Condonation

Merger or Confusion

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NOT only the delivery of money but also the performance, in any manner, of an obl.; must be regular, complete, and if in money → legal tender. Q. Can the creditor be compelled to accept payment or performance by a 3rd person?

PAYMENT:

A. Gen. Rule: NO.

→ There is NO privity of contract between the 3rd person and a party to a contact.

EXCEPTIONS: WHEN 1. there is a stipulation allowing it; 2. the 3rd person has an interest in the fulfillment of the obligation (co-debtor or guarantor). www.chanroblesbar.com : www.chanroblesbar.com.ph

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ART. 1236 - 1238 NCC . IF A 3RD PERSON PAID 1. W/O knowledge or against the will of the debtor → 3rd person has the right of reimbursement to the extent beneficial to the debtor; 2. W/ knowledge of the debtor → 3rd person has the right of reimbursement and subrogation; 3. W/O intention to be reimbursed → DONATION → needs acceptance of the debtor and compliance w/ the formalities required by law.

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Dacion en Pago

Cession

1. 1 debtor, several creditors 2. Debtor is insolvent, either partially or totally 3. no transfer of ownership 3. transfer of ownership to creditor upon delivery of thing to creditors 4. debtor delivers 1 or some of 4. debtor delivers ALL his properties to the creditors his properties to creditor 5. obligation is extinguished 5. obligation is extinguished to the extent of the value to the extent of the of the thing delivered proceeds of the public sale 6. not an act of novation 6. act of novation 1. 1 debtor, 1 creditor 2. debtor is not insolvent

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ART. 1252 NCC. APPLICATION OF PAYMENT REQUISITES: 1. 1 debtor, 1 creditor; 2. 2 or more debts of the same kind; 3. All debts due and demandable; 4. Amt. paid by debtor insufficient to cover all debts. GEN. RULE: DEBTOR → time of payment EXCEPTION: CREDITOR → gives a receipt

in default thereof

most onerous debt to debtor www.chanroblesbar.com : www.chanroblesbar.com.ph

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GEN. RULE: Prior valid tender of payment before consignation.

EXCEPTIONS: WHEN 1. creditor is absent or unknown or does not appear at the place of payment; 2. he is incapacitated to receive the payment at the time it is due; 3. w/o just cause, he refuses to give a receipt; 4. 2 or more persons claim the same right to collect; 5. title of the obligation has been lost. www.chanroblesbar.com : www.chanroblesbar.com.ph

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CONDONATION/REMISSION OF THE DEBT ART. 1260. essentially gratuitous; requires acceptance by the debtor private document evidencing the debt

in the possession of the debtor

condonation by the CREDITOR

presumed to have delivered private document

ART. 1273. Renunciation of principal obligation → accessory obligation is extinguished; waiver of the accessory shall leave the principal obligation in force. www.chanroblesbar.com : www.chanroblesbar.com.ph

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CONFUSION OR MERGER OF RIGHTS ART. 1275 NCC. The obligation is extinguished from the time the characters of creditor and debtor are merged in the same person. NPN “I promise to pay A or order P1M on or before Dec. 31, 2013.”

“Sgd.________ x

B

C

D

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COMPENSATION ART. 1279 NCC. REQUISITES: 1. 2 parties who, in their own right, are principal creditors and debtors of each other; 2. Both debts consist in money, or if consumables, must be of the same kind and quality; 3. Both debts are due, demandable and liquidated; 4. No retention or controversy commenced by 3rd persons over either of the debts and communicated in due time to debtor; 5. Compensation is not prohibited by law. www.chanroblesbar.com : www.chanroblesbar.com.ph

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NOVATION REQUISITES: 1. a previous valid obligation; 2. agreement of the parties to the new obligation; 3. extinguishment of the old obligation; 4. validity of the new obligation.

new debtor proposed DELEGACION → by old debtor new debtor proposed EXPROMISSION→ by creditor/3rd person www.chanroblesbar.com : www.chanroblesbar.com.ph

CONSENT OF CREDITOR

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Mondragon vs. Sola Jr., G.R. 174882, January 21, 2013

Compensation is a mode of extinguishing, to the concurrent amount, the obligations of persons, who in their own right and as principals, are reciprocally debtors and creditors of each other. Heirs of Franco vs. Sps. Gonzales, G.R. 159709, June 27, 2012

Novation is NOT presumed. There is novation when there is irreconcilable incompatibility in the old and new obligations. There is no novation in case of only slight modifications; hence, the old obligation prevails. www.chanroblesbar.com : www.chanroblesbar.com.ph

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LBP vs. Ong, G.R. 190755, Nov. 24, 2010 Land Bank faults the CA for finding that novation applies to the instant case. It reasons that a substitution of debtors was made without its consent, thus it was not bound to recognize the substitution under the rules on novation. Novation, which consists in substituting a new debtor in the place of the original one, may be made even without the consent or against the will of the latter, but not without the consent of the creditor. www.chanroblesbar.com : www.chanroblesbar.com.ph

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CONTRACTS Art. 1305 NCC. A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1306 NCC. Freedom/ Liberty/Autonomy of Contracts The contracting parties may establish such stipulations, clauses, terms, and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order or public policy. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1308 NCC. Mutuality of Contracts

The contract must bind BOTH contracting parties; its validity or compliance cannot be left to the will of one of them. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1311 NCC. Effectivity/ Relativity in Contracts Contracts take effect only between the PARTIES, their ASSIGNS and HEIRS except in case where the rights and obligations arising from the contract are NOT transmissible by (1) their nature, or (2) by stipulation or (3) by provision of law. The heir is NOT liable beyond the value of the property he received from the decedent. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Q:

How are contracts perfected?

A:

Art. 1315. Contracts are perfected by MERE CONSENT, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law.

Art. 1316. REAL CONTRACTS, such as deposit, pledge and commodatum, are not perfected until the delivery of the object of the obligation. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Q:

How is consent manifested?

A: Art 1319. By the MEETING of the OFFER and the ACCEPTANCE upon the THING and the CAUSE. The offer must be CERTAIN and the acceptance ABSOLUTE. A qualified acceptance constitutes a COUNTEROFFER.

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Sps. GIRONELLA vs. PNB, GR 194515, 9/16/15

Oscar & Gina Gironella 11/11/91 & 1/16/92 – obtained 2 loans in the total amt. of P9,500,000.00 w/ REM over their lot; applied for 2nd loan of P5,800,000.00; defaulted in the payment of the 1st 2 loans;

PNB 1/25/2000 – PNB wrote Sps. Gironella w/ a restructuring offer. 3/8//2000 – PNB rejected Sps. Gironella’s counter-offer for loan restructuring.

2/7/2000 – gave a qualified acceptance of PNB’s offer

A contract is perfected by mere consent. Consent is manifested by the meeting of the offer and the acceptance upon the thing & the cause which are to constitute the contract. The offer must be certain & the acceptance absolute. If qualified, the acceptance would merely constitute a counter-offer. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Q:

What is an option contract?

A: Art 1324. When the offerer has allowed the offeree a certain period to accept, the offer may be withdrawn at anytime before acceptance by communicating such withdrawal, except when the option is founded upon a consideration, as something paid or promised.

OPTION – contract granting a person the privilege to buy or not to buy, certain objects at any time within the agreed period at a fixed price.

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OPTION CONTRACT

An option is a preparatory contract in which one party grants to another, for a fixed period and at a determined price, the privilege to buy or sell, or to decide whether or not to enter into a principal contract. It is a separate and distinct contract from that which the parties may enter into upon the consummation of the option. It must be supported by consideration distinct from the price. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1328. Contracts entered into during a lucid interval VALID; contracts agreed to in a state of drunkenness or VOIDABLE. during a hypnotic spell

Art. 1330. A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud VOIDABLE. Art. 1331. MISTAKE should refer to (1) the substance of the thing which is the object of the contract OR (2) to those conditions which have principally moved one or both parties to enter into the contract; must be substantial; serious and important. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1332. When one of the parties is unable to read, or if the contract is in a language not understood by him, and MISTAKE or FRAUD is alleged, the person enforcing the contract must show that the terms thereof have been fully explained to the former. Art. 1335. VIOLENCE serious or irresistible force is employed. INTIMIDATION reasonable and well-grounded fear of an imminent and grave evil upon the person and property of one of the contracting parties, his spouse, descendants or ascendants. www.chanroblesbar.com : www.chanroblesbar.com.ph

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UNDUE INFLUENCE when a person takes improper advantage of his power over the will of another, depriving the latter of a reasonable freedom of choice.

Art. 1337.

Factors to be considered: confidential, family, spiritual and other relations between the parties; mental weakness, ignorance and financial distress of the one alleged to be influenced. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art 1338/1344. FRAUD: Requisites 1. insidious words or machinations must be employed by one of the contracting parties; 2. must be serious; 3. must induce the other party to enter into the contract; 4. must not have been employed by BOTH contracting parties or by a 3rd person.

Art. 1339. Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations FRAUD www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1340. The usual exaggerations in trade, when the other party had an opportunity to know the facts, are NOT in themselves FRAUDULENT. Art. 1341. A mere expression of an opinion does NOT signify fraud, unless made by an EXPERT and the other party has RELIED on the former’ s special knowledge. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art 1345.

Simulation of a contract may be 1. absolute – parties do not intend to be bound at all VOID. 2. relative – when the parties conceal their true agreement when it does not prejudice a 3rd person and is NOT intended for any purpose contrary to law, morals, good customs, public order or policy BINDS the parties to their real agreement. www.chanroblesbar.com : www.chanroblesbar.com.ph

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CLEMENTE vs. CA, et. al., GR 175483, 10/14/15 4/25/89 – DOAS of the 3 lots to P; SPA in favor of P “to administer, take charge and manage my properties”

owner of 3 lots (w/ improvements located in Diliman, Q.C.

Adela (+1/14/90; USA) 7/9/90 – complaint for recovery of properties as the DOAS were simulated & w/o consideration.

Annie Carlos, Sr. (+10/3/97)

Anselmo

Corazon

(+9/7/00)

Carlos, Jr. Dennis

Valentina

9/25/89 – registered the sale w/ RD; TCTs issued in her name.

There was NO valid contract of sale between Valentina and Adela because their consent was absent. The contract of sale was absolutely simulated. There was NO consideration paid by Valentina to Adela. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1359. REFORMATION OF INSTRUMENT REQUISITES: 1. there must have been a meeting of the minds upon the contract; 2. instrument evidencing the contract does NOT express the true agreement between the parties;

3. the failure of the instrument to express the agreement must be due to mistake,, fraud, inequitable conduct or accident. www.chanroblesbar.com : www.chanroblesbar.com.ph

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Art. 1370.

INTERPRETATION OF CONTRACTS

If the TERMS of a contract are CLEAR and leave no doubt upon the INTENTION of the contracting parties, the LITERAL meaning of its stipulations shall control. If the words appear to be contrary to the EVIDENT INTENTION of the parties, the latter shall prevail over the former.

Art. 1377.The interpretation of OBSCURE words or stipulations in a contract shall NOT FAVOR the party who CAUSED THE OBSCURITY. www.chanroblesbar.com : www.chanroblesbar.com.ph

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VALID CONTRACTS 1. Strictly comply with all legal requirements as to consent, object and cause (A1318 NCC). 2. Entered into during a lucid interval (A1328 NCC). 3. Relatively simulated contracts w/c do not prejudice a 3rd person and not intended for a purpose contrary to law, morals, good customs, public order or public policy (A1346 NCC). 4. In divisible contracts, legal terms may be enforced if same can be separated from illegal provisions (A1420 NCC). www.chanroblesbar.com : www.chanroblesbar.com.ph

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RESCISSIBLE 1. Valid until rescinded (A1380 NCC); 2. Economic/financial injury or damage to contracting party or 3rd person. (A1381 NCC ) a) lesion by more than 1/4 of the value of the object against (1). ward by guardian (2). absentee by representative b) in fraud of creditors; c) entered into by defendant over objects under litigation without knowledge/approval of litigants or of competent judicial authority d) other contracts specially declared by law to be subject to rescission; e) payments made in a state of insolvency (A1382 NCC); 3. Not susceptible of ratification; www.chanroblesbar.com : www.chanroblesbar.com.ph

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4. May be assailed not only by a contracting party but also by a 3rd person injured/ defrauded (A1383 NCC); 5. Action for rescission is subsidiary (A1383 ); 6. Only to the extent necessary to cover the damages caused (A1384 NCC); 7. Mutual restitution of object and cause; a) Not applicable if object is legally in the possession of a 3rd person who did not act in BF (A1385 NCC); b) Indemnity for damages against person who caused the loss (A1385 NCC); c) Effects of rescission retroact to the date the action for rescission was instituted; 8. period to file action for rescission – 4 years from: a) termination of guardianship b) time domicile of absentee is known (A1389). www.chanroblesbar.com : www.chanroblesbar.com.ph

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Guzman Bocaling & Co. vs. Bonnevie, GR 90667, Nov. 5, 1991

The SC upheld the decision of the lower court ordering the rescission of a deed of sale which violated a right of first refusal granted to one of the parties therein. The Court held: "xxx Contract of Sale was not voidable but rescissible. Under Article 1380 to 1381 (3) of the Civil Code, a contract otherwise valid may nonetheless be subsequently rescinded by reason of injury to third persons, like creditors. The status of creditors could be validly accorded the Bonnevies for they had substantial interests that were prejudiced by the sale of the subject property to the petitioner without recognizing their right of first priority under the Contract of Lease. www.chanroblesbar.com : www.chanroblesbar.com.ph

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VOIDABLE CONTRACTS 1. Valid until annulled; a) one party incapable of giving consent to contract; b) consent vitiated by mistake, violence, intimidation, undue influence or fraud. (A1390); c) contracts entered in a state of drunkenness ennes ss or during a hypnotic spell (A1328 NCC); C); 2. Susceptible of ratification (A1390 NCC); a) R cleanses contract from all defects (A1396); b) R retroacts to constitution of contract (A1396) c) R effected expressly or tacitly (A1393 NCC); d) R may be effected by guardian (A1394 NCC); e) R extinguishes action to annul contract (A1392); f) R needs no conformity of other party who has no right to bring action for annulment (A1395 NCC); www.chanroblesbar.com : www.chanroblesbar.com.ph

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3. May be assailed only by a contracting party (obliged principally or subsidiarily); Exceptions: a) capacitated party as to the incapacity of the other party; b) those who exerted intimidation, violence or undue influence or employed fraud. (A1397). 4. Mutual restoration of object and cause;

5. Period to file annulment – 4 years from: a). time defect of consent ceases; b). time of discovery of mistake or fraud; c). time guardianship ceases (A1391) www.chanroblesbar.com : www.chanroblesbar.com.ph

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UNENFORCEABLE 1. Cannot be enforced by court action, unless ratified (A1403 NCC); a) entered into without authority or without legal representation or beyond authority granted; b) d did not comply with the Statute of Frauds: (1) agreement not to be performed w/n a year; (2) special promise to answer for the debt, default or miscarriage of another; (3) agreement made in consideration of marriage, other than mutual promise to marry; www.chanroblesbar.com : www.chanroblesbar.com.ph

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(4) agreement for the sale of goods not less than P500.00; (5) lease for more than 1 year or sale of real property; (6) representation as to the credit of a 3rd person. c) BOTH contracting parties incapable of giving consent to a contract; 2. Su usceptible of ratification (A1405 NCC) a) failure to object to presentation of oral evidence b) acceptance of benefits 3. May be assailed ONLY by a contracting party (A1408 NCC). www.chanroblesbar.com : www.chanroblesbar.com.ph

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Tua vs. Mangrobang, G.R. 170701, 1/27/14 Unenforceable contracts are those which cannot be enforced by a proper action in court, unless they are ratified, because they are entered into without authority or in excess of authority or they do not comply with the Statute of Frauds or both of the contracting parties do not possess the required legal capacity. Where a person signs a Deed of Extrajudicial partition in behalf of co-heirs without the latter’s authority; where a mother, as judicial guardian of her minor children, executes a deed of judicial partition, wherein one child is given more share of the estate to the prejudice of the other children; or where one person holding an SPA, sells a property of his principal which is not included in said SPA, these are some analogous cases of unenforceable contracts. www.chanroblesbar.com : www.chanroblesbar.com.ph

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VOID CONTRACTS 1. Do not produce any effect; 2. One or some of the essential requisites of a valid contract are lacking in fact or in law. (A1409 NCC) a) cause, object or purpose is contrary to law, public morals, public policy, good customs, public order; b) absolutely simulated/ fictitious contract; c) cause or object inexistent at the time of the transaction; d) object outside commerce of man; e) contemplate impossible service; www.chanroblesbar.com : www.chanroblesbar.com.ph

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f) intention of the parties as to principal object cannot be ascertained; g) expressly declared by law as void. 3. a) not susceptible of ratification; b) right of action or defense cannot be waived/does not prescribe (A1410 );

4. May be assailed not only by a contracting party but even by a 3rd person whose interest is directly affected (A1421 NCC).

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Heirs of Ureta Sr., et. al. vs. Heirs of Ureta, et. al., G.R. 165748, September 14, 2011 While the Deed of Sale states that the purchase price was paid to the seller for the subject properties, it has been proven that there was no such payment as there was no money involved, the Deed of Sale is void for absence of consideration.

The right to set up the nullity of a void or inexistent contract is not limited to the parties, as in the case of voidable contracts; it is extended to 3rd persons who are directly affected by the contract. In this case, the parties are heirs and are not strangers to the parties to the contract, hence they have a right to question the same. www.chanroblesbar.com : www.chanroblesbar.com.ph