2009 civil law review

7/27/2019 2009 CIVIL LAW REVIEW

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2009 CIVIL LAW

I TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the statement is false.

Explain your answer in not more than two (2) sentences. (5%)

a. The doctrine of "processual presumption" allows the court of the forum to presume

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

b. In reserva troncal, all reservatarios (reservees) inherit as a class and in equal shares

regardless of their proximity in degree to the prepositus.

c. An oral partnership is valid.

d. An oral promise of guaranty is valid and binding.

e. A dead child can be legitimated.

ANS:

a. TRUE. Under the doctrine of processual presumption, where a foreign law is

not pleaded or, even if pleaded, is not proved, the presumption is that foreign law

is the same as Philippine law.

b. FALSE. In reserva troncal, the reservatarios inherit in accordance with the rulesof intestacy. Thus, there is a preference, first between lines, and within each line,

the nearest in degree excludes the more remote.

c. TRUE. As a general rule, the form of a contract of partnership is immaterial to

the validity of the partnership (Article 1771, Civil Code). The exception is where

real property or rights to real property are contributed to the partnership in

which case the contract of partnership must be in a public instrument.

d. TRUE. Since the law only requires that the contract of guaranty be express butdoes not provide that it be in writing, then an oral promise of guaranty is valid.

However, under the Statute of Frauds, a promise to answer for the debt, default

or miscarriage of another (which includes guaranty) must be in writing; otherwise,

it is unenforceable unless ratified.

e. TRUE. The Civil Code (Article 181) speaks of legitimation of chi ldren who died

before the celebration of the marriage. The legitimated dead childrens

descendants are entitled to benefit from such legitimation.


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1. TRUE, while foreign laws must be pleaded and proved, the court may, however,

assume that the foreign law of the same as the law of the forum (processual

presumption) in case of failure to prove and plead the proper foreign law;

provided, however, that the case falls under any of the exceptions to the

application of foreign law, i.e. when application of the foreign law may workundeniable injustice to the citizens of the forum.

2. FALSE, the Civil Code did not provide for the rules on how the reservatarios

would succeed to the reservista (ascendant) and one rule on inestacy provides

that the reservatarios are relatives to the 3rd degree and belong to the line from

which the reservable property came.

3. FALSE, the essential features of partnership provides that there must be a valid

contract. Art. 1784 of the Civil Code provides a partnership begins from themoment of the execution of the contract.

4. TRUE, an oral promise of guaranty are express warranties which may be valid

and binding provided it complied with the requisites therefor. One is that the

buyer purchase the subject matter relying on said oral promise.

5. YES, a dead child can be legitimated by the subsequent marriage of parents

provided the action for which is filed within five (5) after his or her death and the

child dies before reaching the age of majority.

II Dr. Lopez, a 70-year old widower, and his son Roberto both died in a fire that gutted

their home while they were sleeping in their air-conditioned rooms. Robertos wife,

Marilyn, and their two children were spared because they were in the province at the

time. Dr. Lopez left an estate worth P20M and a life insurance policy in the amount of

P1M with his three children --- one of whom is Roberto --- as beneficiaries.

Marilyn is now claiming for herself and her children her husbands share in the estate left

by Dr. Lopez, and her husbands share in the proceeds of Dr. Lopezs life insurance policy.

Rule on the validity of Marilyns claims with reasons. (4%)

ANS:

- YES, the claim of Marilyn, both on the estate of the late Dr. Lopez and that of the

insurance proceeds, is valid following the order of intestate succession and by

representation, she, being the surviving spouse of the deceased Roberto, who, in

turn, is one of the three (3) legitimate children of the deceased Dr. Lopez.


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- Marilyn cannot claim. Art. 43. If there is a doubt, as between two or more

persons who are called to succeed each other, as to which of them died first,

whoever alleges the death of one prior to the other, shall prove the same; in the

absence of proof, it is presumed that they died at the same time and there shall

be no transmission of rights from one to the other.

- Marilyn cannot claim for herself and her children her husband's share in the

estate left by Dr. Lopez. The persons who are called to succeed eachother were

considered to have died at the same time, in the absence of proof that one died

prior to the other. Therefore, there is no transmission of rights from Dr. Lopez to

Roberto.

Marilyn can claim for Roberto's share in the proceeds of Dr. Lopez's life insurance

policy. This is not an issue of succession, rather an issue of survivorship. The Rulesof Court shall apply in determining the survivorship. Dr. Lopez, being the older

person, at 70, is considered to have died first. Therefore, the share of the

proceeds of Dr. Lopez's life insurance has been transfered to Roberto.

III In December 2000, Michael and Anna, after obtaining a valid marriage license, went to

the Office of the Mayor of Urbano, Bulacan, to get married. The Mayor was not there,

but the Mayors secretary asked Michael and Anna and their witnesses to fill up and sign

the required marriage contract forms. The secretary then told them to wait, and went

out to look for the Mayor who was attending a wedding in a neighboring municipality.

When the secretary caught up with the Mayor at the wedding reception, she showed him

the marriage contract forms and told him that the couple and their witnesses were

waiting in his office. The Mayor forthwith signed all the copies of the marriage contract,

gave them to the secretary who returned to the Mayors office. She then gave copies of

the marriage contract to the parties, and told Michael and Anna that they were already

married. Thereafter, the couple lived together as husband and wife, and had three sons.

a. Is the marriage of Michael and Anna valid, voidable, or void? Explain your answer. (3%)

b. What is the status of the three children of Michael and Anna? Explain your answer.

(2%)

c. What property regime governs the properties acquired by the couple? Explain. (2%)

ANS:

a. The marriage of Michael and Anna is void ab initio. It lacked one of the formal

requisites of marriage, a marriage ceremony which takes place with the


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appearance of the contracting parties before the solemnizing officer and their

personal declaration that they take each other as husband and wife in the

presence of not less than two witnesses of legal age. The law requires the

presence of the solemnizing officer during the ceremony. Michael and Anna did

not appear before the mayor because the mayor was not present in his officewhere the marriage was supposed to have been celebrated. As such, the marriage

was not solemnized by the mayor.

b. Since the marriage was void ab initio, the three children were conceived and

born out of wedlock. Hence, the children are illegitimate. They will remain so

unless their parents, Michael and Anna, subsequently contract a valid marriage.

c. The property regime governing the properties acquired by Michael and Anna

during their cohabitation is as follows: their wages and salaries shall be owned by

them in equal shares and the property acquired by both of them through their

work or industry shall be governed by the rules on co-ownership. In the absence

of proof to the contrary, properties acquired while they lived together shall be

presumed to have been obtained by their joint efforts, work or industry, and shall

be owned by them in equal shares. A party who did not participate in the

acquisition by the other party of any property shall be deemed to have

contributed jointly in the acquisition thereof if the former's efforts consisted in

the care and maintenance of the family and of the household.

Neither party can encumber or dispose by acts inter vivos of his or her share in

the property acquired during cohabitation and owned in common, without the

consent of the other, until after the termination of their cohabitation.

1. It is VOID AB INITIO for lack of the essential requisite of marriage that consent

freely given before the solemnizing officer and the formal requisite that there

must be a marriage ceremony where the contracting parties appear before the

solemnizing officer with their personal declaration that they take each other as

husband and wife in the presence of not less than two witnesses of legal age.

2. They are ILLEGITIMATE for having been born outside a valid marriage. It is only

in cases when marriage is void as provided in Art. 36 and Art. 53 that the children

may be considered legitimate. When Michael and Anna contracts a valid

marriage, however, the children may be legitimated.


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3. Art. 147 of the Family Code or co-ownership governs the property regime of

Michael and Anna, both having no legal impediment to contract a valid marriage.

IV

Harry married Wilma, a very wealthy woman. Barely five (5) years into the marriage,

Wilma fell in love with Joseph. Thus, Wilma went to a small country in Europe, became a

naturalized citizen of that country, divorced Harry, and married Joseph. A year thereafter,

Wilma and Joseph returned and established permanent residence in the Philippines.

a. Is the divorce obtained by Wilma from Harry recognized in the Philippines? Explain

your answer. (3%)

b. If Harry hires you as his lawyer, what legal recourse would you advise him to take?Why? (2%)

c. Harry tells you that he has fallen in love with another woman, Elizabeth, and wants to

marry her because, after all, Wilma is already married to Joseph. Can Harry legally marry

Elizabeth? Explain. (2%)

ANS:

a. No. Divorce is not recognized in the Philippines. Foreign declaration or

judgments involving the status of Filipino citizens which are against public policy

cannot be given a valid effect.

b. Although Wilma cannot be held guilty of bigamy, she may be held guilty of

adultery. So too, there was abandonment oh her part when she left Harry for five

(5) years. With this, I would advise Harry that he can file an action for legal

separation on the ground of adultery and abandonment on the part of Wilma.

c. No. Since the divorce decree obtained by Wilma cannot be validated under our

laws, the marriage between Harry and Wilma still subsists. Therefore, he cannot

as yet marry Elizabeth until and unless the marital bond between him and Wilma

is severed.

a. yes, decree of divorce is recognized in the philippines if the one who filed for

divorce is the foreigner spouse. in order for former filipinos to effectively enforce

in the philippines the divorce decree they obtained in the foreign court, they must

show first that they are already citizen of that country prior to the divorce decree

or else, such has no effect in the Philippines.


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b. i will advise harry to question the validity of the divorce decree obtained by his

wife, that the foreign law must be proved as a fact since our courts do not take

judicial notice of such.

c. yes, but he has to show to the court that the divorce decree obtained by hisformer spouse capacitates her to remarry.. if not, then harry cannot remarry also.

V Four children, namely: Alberto, Baldomero, Caridad, and Dioscoro, were born to the

spouses Conrado and Clarita de la Costa. The childrens birth certificates were duly signed

by Conrado, showing them to be the couples legitimate children.

Later, one Edilberto de la Cruz executed a notarial document acknowledging Alberto and

Baldomero as his illegitimate children with Clarita. Edilberto died leaving substantial

properties. In the settlement of his estate, Alberto and Baldomero intervened claimingshares as the deceaseds illegitimate children. The legitimate family of Edilberto opposed

the claim.

Are Alberto and Baldomero entitled to share in the estate of Edilberto? Explain. (4%)

ANS:

-NO, they are not entitled. The birth certificates of Alberto and Baldomero, having

been duly signed by Conrado and unquestioned by their mother Clarita, must be

upheld in line with Legaspi v. CA (142 SCRA 82) where the Supreme Court ruled

that "the evidentiary nature of public documents must be sustained in the

absence of strong, complete and conclusive proof of its falsity and nullity." The

notarial document of acknowledgment executed by Edilberto is deemed not a

strong, complete and conclusive proof of the falsity and nullity of the birth

certificates.

-No. Baldomero and Alberto are not entitled to the estate of Edilberto.

The notarial acknowledgment of Edilberto as to the illegitimacy status of Alberto

and Baldomero cannot be given any legal effect because it constitutes a collateral

attack as to the legitimacy status of Alberto and Baldomero which is proscribed by

law. As a rule, legitimate status can only be impugned by the putative father,

which is in this case, Dioscoro.

-No. They are not entitled to the estate of Edilberto.

Under A164 of the FC, children conceived or born inside a valid marriage are

legitimate. Therefore, Alberto and Baldomero are legitimate the children of


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Conrado and Clarita. Further, under A172 of the FC provides that the

acknowledgment of Conrado as father in the birth certificates of the children is a

proof of filiation. Only Conrado can impugn the legitimacy of the children on the

grounds in A166 of the FC being a right personal to him subject to the prescriptive

period under A170 of the FC.

Legitimacy is not subject to collateral attack, to allow the children a right to

succeed in the estate of Edilberto is to indirectly assail the legitimate status of the

children, which can only be question in a direct proceeding for the purpose.

VI On December 1, 2000, Dr. Juanito Fuentes executed a holographic will, wherein he

gave nothing to his recognized illegitimate son, Jay. Dr. Fuentes left for the United States,

passed the New York medical licensure examinations, resided therein, and became a

naturalized American citizen. He died in New York in 2007. The laws of New York do notrecognize holographic wills or compulsory heirs.

a. Can the holographic will of Dr. Fuentes be admitted to probate in the Philippines? Why

or why not? (3%)

b. Assuming that the will is probated in the Philippines, can Jay validly insist that he be

given his legitime? Why or why not? (3%)

ANS:

a. Yes, the will can be probated here in the Philippines inasmuch as it was

executed here by Dr. Fuentes who was then a Filipino citizen. The subsequent

acquisition of Dr. Fuentes of american citizenship is immaterial. In fact, probate

can be made of any will, whether executed here or abroad by a Filipino citizen or

a foreigner.

b. Yes. There is preterition in this case, Jay being a recognized illegitimate child,

hence a compulsory heir. The institution of the heirs is rendered null and void

without Jay having been instituted. As such, he can validly claim that he be given

his legitime. In fact, no judicial order is required. The will is ipso facto annulled.

VII Ramon Mayaman died intestate, leaving a net estate of P10,000,000.00. Determine

how much each heir will receive from the estate:

If Ramon is survived by his wife, three full-blood brothers, two half-brothers, and one

nephew (the son of a deceased full-blood brother)? Explain. (3%)


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If Ramon is survived by his wife, a half-sister, and three nephews (sons of a deceased full-

blood brother)? Explain. (3%)

ANS:

1. 1/2 goes to the surviving spouse. the other half shall be divided by thecollateral relatives, the full blood sibling shall have double the amount as that of

half-blood sibling, the niece shall inherit per stirpes ( by right of representation )

therefore:

5 million - surviving spouse

3 million - 3 full blood brothers ( 1 million each )

1 million - nephew (right of representation )

1 million - 2 half-brothers ( 500k each )______

10 million

or

2.

5 million - wife

3.3 million - 3 nephews ( 1.1 million each ) , since the share of

full-blood is double that of the half-blood, the ratio is 2:1

1.7 million - half-sister

__________

10 million

VIII Jude owned a building which he had leased to several tenants. Without informing his

tenants, Jude sold the building to Ildefonso. Thereafter, the latter notified all the tenants

that he is the new owner of the building. Ildefonso ordered the tenants to vacate the

premises within thirty (30) days from notice because he had other plans for the building.

The tenants refused to vacate, insisting that they will only do so when the term of their

lease shall have expired. Is Ildefonso bound to respect the lease contracts between Jude

and his tenants? Explain your answer. (3%)

ANS:

- yes, he is bound to respect the lease contracts entered into by jude and the

tenants. since from the time he purchased the said building, he knows already

that there are tenants in the building and thus, has knowledge about the

existence of the lease contracts that were entered. Therefore, he cannot

terminate it until after their expiration.


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-Yes, he is bound to respect the lease because he had actual knowledge of the

existence of lease.

The Civil Code provides that the purchaser of piece of land which is under lease

that is not recorded in the Registry of Property may terminate the lease save incases when there is stipulation to the contrary or when the purchaser knows of

the existence of the lease. ( Article 1676 NCC)

Moreover, well-settled rule that actual knowledge of the purchaser of the

contract is equivalent to registration on his part.

-No. Basic principle under civil law that a contract of lease is a personal contract

which only binds the parties who are privies thereto. Hence, unless the contract

has been registered in the registry of deeds or the third person has constructive

knowledge of the existence of the contract before he acquires the property, suchthird person may be bound by the contract.

-NO, he is not bound to respect the lease contract. in order for a transferee of

leased property to be bound to the lease contracts constituted on the leased

property it is necessary that the transferee has knowledge of the existence of the

lease contracts at the time of transfer or that it was stipulated upon in the

agreement. here, the facts do not show that ildefonso has knowledge thereof at

the time the property was sold or that it was agreed upon between him and jude

that he should respect the lease. that being the case, he cannot be compelled to

respect the lease rigths and consequently he can order the tenants to vacate from

the premises.

IX Before migrating to Canada in 1992, the spouses Teodoro and Anita entrusted all their

legal papers and documents to their nephew, Atty. Tan. Taking advantage of the

situation, Atty. Tan forged a deed of sale, making it appear that he had bought the

couples property in Quezon City. In 2000, he succeeded in obtaining a TCT over the

property in his name. Subsequently, Atty. Tan sold the same property to Luis, who built

an auto repair shop on the property. In 2004, Luis registered the deed of conveyance,

and title over the property was transferred in his name.

In 2006, the spouses Teodoro and Anita came to the Philippines for a visit and discovered

what had happened to their property. They immediately hire you as lawyer. What action

or actions will you institute in order to vindicate their rights? Explain fully. (4%)

ANS:

Chain of Title Doctrine.


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The only remedy is to file a case for damages because as a rule a forged title will

not ripen into ownership, unless if the title passed to a purchaser for value in

good faith.

X Rommels private car, while being driven by the regular family driver, Amado, hits apedestrian causing the latters death. Rommel is not in the car when the incident

happened.

Is Rommel liable for damages to the heirs of the deceased? Explain. (2%)

Would your answer be the same if Rommel was in the car at the time of the accident?

Explain. (2%)

ANS:a. yes, vicariously liable si rommel as employer for d damage caused by amado,

his employee, who was acting w/in d scope of his assigned task..

b. yes, if by the use of due diligence, pwede nya naprevent yung insidente..

vicarious liability den

a. the answer is Article 2180 and 2181 NCC.

b. the answer is Article 2184 NCC

XI TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the statement is false.

Explain your answer in not more than two (2) sentences. (5%)

A clause in an arbitration contract granting one of the parties the power to choose more

arbitrators than the other renders the arbitration contract void.

If there is no marriage settlement, the salary of a "spouse" in an adulterous marriage

belongs to the conjugal partnership of gains.

Acquisitive prescription of a negative easement runs from the time the owner of the

dominant estate forbids, in a notarized document, the owner of the servient estate from

executing an act which would be lawful without the easement.

The renunciation by a co-owner of his undivided share in the co-owned property in lieu

of the performance of his obligation to contribute to taxes and expenses for the

preservation of the property constitutes dacion en pago.

A person can dispose of his corpse through an act intervivos.

ANS:


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a. True. Art. 2045. Any clause giving one of the parties power to choose more

arbitrators than the other is void and of no effect.

b. True. Art. 142. By means of the conjugal partnership of gains the husband and

wife place in a common fund the fruits of their separate property and the incomefrom their work or industry...

c. True. Art. 621. In order to acquire by prescription the easements.... in negative

easements, from the day on which the owner of the dominant estate forbade, by

an instrument acknowledged before a notary public, the owner of the servient

estate, from executing an act which would be lawful without the easement.

d. True. Art. 1245. Dation in payment, whereby property is alienated to the

creditor in satisfaction of a debt in money.

e. maybe true.

- 4. False.A act intervivos is an agreement that takes effect during the lifetime of

the person who executed the same. It cannot take effect when he is already dead.

XII Emmanuel and Margarita, American citizens and employees of the U.S. State

Department, got married in the African state of Kenya where sterility is a ground for

annulment of marriage. Thereafter, the spouses were assigned to the U.S. Embassy in

Manila. On the first year of the spouses tour of duty in the Philippines, Margarita filed an

annulment case against Emmanuel before a Philippine court on the ground of her

husbands sterility at the time of the celebration of the marriage.

Will the suit prosper? Explain your answer. (3%)

Assume Emmanuel and Margarita are both Filipinos. After their wedding in Kenya, they

come back and take up residence in the Philippines. Can their marriage be annulled on

the ground of Emmanuels sterility? Explain. (3%)

ANS:

1. the suit will not prosper. they are not filipino citizens and they did not get

married here in the philippines. thus, the Family Code will not govern. The court

has no jurisdiction as to the annulment case that was filed.

2. no. even assuming they are both filipinos, sterility is not one of the grounds for

annulment of marriage.


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a. No. The suit will not prosper for neither are Filipino citizens and our courts

cannot acquire jurisdiction.

b. No. Impotency is the ground for annulment under A45(5) of the FC not sterility.Impotency refers to the incapacity to perform the sexual act at the time of

celebration of marriage which is an essential marital obligation under A68 of the

FC. Sterility is the impossibility of procreation despite the ability to have an

erection and perform the sexual act.

A. Yes, the suit will prosper. The grounds for the annulment of marriage is

governed by the laws of the state alleged to have been violated or the laws of the

place where the marriage was celebrated. Since the marriage is voidable in Kenya,

it shall also be voidable here. This is particularly true even if sterility is not aground for the annulment of marriage under our own laws.

B. Yes, the marriage can still be annulled. Since the marriage is voidable according

to the laws of Kenya where the marriage is celebrated, it shall also be voidable

here. The grounds for the annulment of marriage is not governed by national laws

of the parties but by the laws of the place alleged to have been violated. Their

being both Filipinos is immaterial in the case.

XIII Rafael, a wealthy bachelor, filed a petition for the adoption of Dolly, a one-year old

foundling who had a severe heart ailment. During the pendency of the adoption

proceedings, Rafael died of natural causes. The Office of the Solicitor General files a

motion to dismiss the petition on the ground that the case can no longer proceed

because of the petitioners death.

Should the case be dismissed? Explain. (2%)

Will your answer be the same if it was Dolly who died during the pendency of the

adoption proceedings? Explain. (2%)

ANS:

1. no. to protect the best interest of the adoptee and it is provided for in RA8552.

2. no, my answer will be different. there is no more best interest of the adopteeto protect since dolly died already. the case should then be dismissed.

XIV Rodolfo, married to Sharon, had an illicit affair with his secretary, Nanette, a 19-year

old girl, and begot a baby girl, Rona. Nanette sued Rodolfo for damages: actual, for

hospital and other medical expenses in delivering the child by caesarean section; moral,


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claiming that Rodolfo promised to marry her, representing that he was single when, in

fact, he was not; and exemplary, to teach a lesson to like-minded Lotharios.

If you were the judge, would you award all the claims of Nanette? Explain. (3%)

Suppose Rodolfo later on acknowledges Rona and gives her regular support, can he

compel her to use his surname? Why or why not? (2%)

When Rona reaches seven (7) years old, she tells Rodolfo that she prefers to live with

him, because he is better off financially than Nanette. If Rodolfo files an action for the

custody of Rona, alleging that he is Ronas choice as custodial parent, will the court grant

Rodolfos petition? Why or why not? (2%)

ANS:-Art. 21. Any person who wilfully causes loss or injury to another in a manner that

is contrary to morals, good customs or public policy shall compensate the latter

for the damage.

-No. Although it is the obligation of the father to giver support, an illegitimate

child shall use the surname of the mother. However, under the Revilla law, upon

reaching the age of majority, the child has the OPTION of using the surname of

the father.

-No, as a rule, the Tender Age Presumption will automatically give custody to a

child below 7 year old to a mother, unless the mother is incapable do so. Financial

standing alone is not a ground to grant custody to one and deprive another.

1.actual damages may be awarded for the hospital and medical expenses incurred

moral damages cannot, as a rule, be awarded in a breach of promise to marry

unless there be moral or criminal seduction.

exemplary damages can be awarded as long as the act was committed in wanton,

oppressive, dishonest and fraudulent manner.

2. no. under the present rule, an illegitimate child may use the surname of the

father provided the father acknowledges the child. however, the decision to

adopt the surname is with the child alone. the law uses the word "may" and not

"shall." the regular support given is immaterial.


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3. yes, the court must grant the petition. rona is already 7 years old and so therule that no child below 7 years old shall be separated from the mother no

longer applies. upon reaching the age of 7, the child's choice of whom to go

must be followed unless the court finds that the parent chosen is unfit, which

is not obtaining in the case. in all case however, the welfare of the child shallbe taken as the paramount consideration.

XV Sarah had a deposit in a savings account with Filipino Universal Bank in the amount of

five million pesos (P5,000,000.00). To buy a new car, she obtained a loan from the same

bank in the amount of P1,200,000.00, payable in twelve monthly installments. Sarah

issued in favor of the bank post-dated checks, each in the amount of P100,000.00, to

cover the twelve monthly installment payments. On the third, fourth and fifth months,

the corresponding checks bounced.

The bank then declared the whole obligation due, and proceeded to deduct the amount

of one million pesos (P1,000,000.00) from Sarahs deposit after notice to her that this is a

form of compensation allowed by law. Is the bank correct? Explain. (4%)

ANS:

- No. The bank should have first send the notices of bounced check to the issuer

asking her to settle the installment amount due within a certain number of days.

If no payment was made then a demand letter should have been sent to her. If

there is till no payment proceed against the chattel mortgage. Or the last resort is

to seek consent first from the depositor prior to offset of the unpaid amounts.

However, should this not be in violation of bank secrecy law?

-The bank is incorrect in declaring the whole obligation due since legal

compensation applies every time each payable installment becomes due and

demandable. Fixed, savings and current deposits of money in banks and similar

institutions shall be governed by the provisions concerning simple loan (Art. 1980

Civil Code), which makes Sarah and the bank, in their own right, creditors and

debtors of each other, hence, compensation shall take place (Art. 1278 Civil

Code).

All the requisites under Article 1279 of the Civil Code being present,

compensation takes effect by operation of law, and extinguishes both debts to

the concurrent amount, even though the creditors and debtors are not aware of

the compensation (1290 Civil Code).

Therefore, the bank cannot declare the whole obligation due and only thereafter

apply compensation to the prejudice of Sarah since she cannot be declared in


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default for the 3 payments as legal compensation operates at the time each

payable installment becomes due and demandable.

XVI Marciano is the owner of a parcel of land through which a river runs out into the sea.

The land had been brought under the Torrens System, and is cultivated by Ulpiano andhis family as farmworkers therein. Over the years, the river has brought silt and sediment

from its sources up in the mountains and forests so that gradually the land owned by

Marciano increased in area by three hectares. Ulpiano built three huts on this additional

area, where he and his two married children live. On this same area, Ulpiano and his

family planted peanuts, monggo beans and vegetables. Ulpiano also regularly paid taxes

on the land, as shown by tax declarations, for over thirty years.

When Marciano learned of the increase in the size of the land, he ordered Ulpiano to

demolish the huts, and demanded that he be paid his share in the proceeds of theharvest. Marciano claims that under the Civil Code, the alluvium belongs to him as a

registered riparian owner to whose land the accretion attaches, and that his right is

enforceable against the whole world.

Is Marciano correct? Explain. (3%)

What rights, if any, does Ulpiano have against Marciano? Explain. (3%)

ANS:

A. No. Marciano is not correct. Ulpiano is the owner of the increase caused by

alluvium on the parcel of land he bought from Marciano following the principle

accessories follows the principal.

B. Being the owner of the increase area in his land, Ulpiano has the right to

exclude Marciano from the land and register the same in his name. Additionally,

Ulpiano can exercise all the rights of an owner over the increase area.

a. marciano is wrong. although it is settled that the accretion belongs to the

owner of the land to which it attaches, ownership is not automatic. just because

the accretion had attached to a parcel of land brought under the torrens system

does not mean that the accretion has also been included therein. the additional

increase of the land in this case has to be brought within the torrens system in

order that the riparian owner of the registered land may acquire ownership

thereof. the registration of the land to which the accretion had attached does not,

and cannot, extend to the accretion. registration of the increase land must be

had.


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b. ulpiano in this case has already acquired ownership of the increased land by

acquisitive prescription. being in bad faith, the lapse of 30 yrs of an open,

continuous, exclusive, adverse and notorious possession is necessary for him to

acquire by prescription the subject land. since here ulpiano has been in the

possession of the land for more than 30 yrs already, regularly paying even thetaxes due thereon, it is clear that he acquires ownership of the land.

consequently, then, as against marciano, he has the full ownership rights of the

land, w/c include the rights to use, to the fruits, to dispose and even to exclude

others from enjoyment and possession thereof. he may even place a fence

surrounding the area. thus, he cannot be made to demolish the huts and pay for

the fruits he received.

XVII Rosario obtained a loan of P100,000.00 from Jennifer, and pledged her diamond

ring. The contract signed by the parties stipulated that if Rosario is unable to redeem thering on due date, she will execute a document in favor of Jennifer providing that the ring

shall automatically be considered full payment of the loan.

a. Is the contract valid? Explain. (3%)

b. Will your answer to [a] be the same if the contract stipulates that upon failure of

Rosario to redeem the ring on due date, Jennifer may immediately sell the ring and

appropriate the entire proceeds thereof for herself as full payment of the loan? Reasons.

(3%)

ANS:

a. yes, contract's valid n no pactum commissarium

b. no, new stipulation's void coz it's pactum commissarium. however, contract of

pledge is still valid.

a. Valid, a valid dacion en pago; one thing given in full consideration for the

indebtedness.

b. The contract of loan remains valid. The contract of loan is a principal contract,

the pledge is only an accessory contract. Hence it can stand on its own

notwithstanding the invalidity of the pledge on account of its being a prohibited

pactum commissorium.

XVIII The Ifugao Arms is a condominium project in Baguio City. A strong earthquake

occurred which left huge cracks in the outer walls of the building. As a result, a number

of condominium units were rendered unfit for use. May Edwin, owner of one of the

condominium units affected, legally sue for partition by sale of the whole project?

Explain. (4%)


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ANS:

Yes. Under Section 8 of the Condominium Law; When several persons own

condominiums in a condominium project, an action maybe brought by one or

more such persons for partition by sale of the entire project as if the owners af allthe condominiums in such project were co-owners of the entire project in the

same proportion as their interests in the common areas and provided that the

damage to the project has rendered 1/2 or more of the units untenantable and

that the condo owners holding in aggregate more than 50% interest in the

common areas are opposed to the repair or restoration of the project.

XIX In 1972, Luciano de la Cruz sold to Chua Chung Chun, a Chinese citizen, a parcel of

land in Binondo. Chua died in 1990, leaving behind his wife and three children, one of

whom, Julian, is a naturalized Filipino citizen. Six years after Chuas death, the heirs

executed an extrajudicial settlement of estate, and the parcel of land was allocated to

Julian. In 2007, Luciano filed suit to recover the land he sold to Chua, alleging that the

sale was void because it contravened the Constitution which prohibits the sale of private

lands to aliens. Julian moved to dismiss the suit on grounds of pari delicto, laches and

acquisitive prescription. Decide the case with reasons. (4%)

ANS:

- The prohibition on the sale of private lands to aliens is no longer a valid

contention since the land was already extra-judicially partitioned and transferred

to Julian who at the time of transfer was a already a naturalized Filipino citizen. As

such the defect is already cured.

-The petition of Luciano must be dismissed.

Independently of the doctrine of pari delicto, the petitioner cannot have the sale

annulled and recover the lot Luciano himself has sold. While the vendee was an

alien at the time of the sale, the land has since become the property, of

respondent Julian, a naturalized Philippine citizen, who is constitutionally

qualified to own.

Laches also militates against petitioner's cause. Luciano sold the disputed lot in

1972 and instituted the action to annul the sale only in the year 2007. By his long

inaction of inexcusable neglect, he should be held barred from asserting his claim

to the litigated property.

Respondent, therefore, must be declared to be the rightful owner of the

property.


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(De Castro vs. Teng Queen Tan, G.R. No. L-31956, April 30, 1984)

NOTE: The problem is exactly the case of De Castro vs. Teng Queen Tan, but in the

decision it was never explained by the court why the ground of acquisitive

prescription by the respondent was not sustained.

XX If Ligaya, a Filipino citizen residing in the United States, files a petition for change of

name before the District Court of New York, what law shall apply? Explain. (2%)

If Henry, an American citizen residing in the Philippines, files a petition for change of

name before a Philippine court, what law shall apply? Explain. (2%)

ANS:

Art. 15 Laws relating to family rights ad duties, or to the status, condition andlegal capacity of persons are binding upon citizens of the Philippines, even though

living abroad.

Since the name of a person forms part of his status, Philippine law should apply.

2009 civil law review

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