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Civil Law

property

I.

Distinguish the following concepts:

1. Occupation v. possession. (5%)

Occupation is a mode of acquiring ownership which involves some form of holding

(Articles 712 & 713, New Civil Code). Possession is the holding of a thing or the

enjoyment of a right. (Article 532, NCC).

Occupation can take place only with respect to property without an owner,

whilepossession can refer to all kinds of property, whether with or without an

owner.Occupation in itself, when proper, confers ownership; but possession does

not by itself give rise to ownership. (II Tolentino, Civil Code, 1992 ed., p. 489).

Property donation

2. Illegal and impossible conditions in a simple donation v. illegal and impossible

conditions in an onerous donation. (5%)

Illegal or imposable conditions in simple conditions are considered as not imposed,

hence the donation is valid. (Art. 727, NCC). On the other hand, donations with an

onerous cause shall be governed by the rules on contract (Art. 733, NCC). UnderArt. 1183 0f the New Civil Code, (I)mpossible conditions, those contrary to good

customs or public policy and those prohibited by law shall annul the obligation

which depends upon them. Thus, the onerous donation is void.

Property real personal

II.(10%)

Manila Petroleum Co. owned and operated a petroleum operation facility off the

coast of Manila. The facility was located on a floating platform made of wood

and metal, upon which was permanently attached the heavy equipment for the

petroleum operations and living quarters of the crew. The floating platform

likewise contained a garden area, where trees, plants and flowers were planted.

The platform was tethered to a ship, the MV 101, which was anchored to the

seabed.

1. Is the platform movable or immovable property?

Alternative Answer:

The platform is an immovable property by destination. It was intended by the

owner to remain at a fixed place on a river or coast.

Article 415(9) of the New Civil Code considers as a real property docks and

structures which, though, floating, are intended by their nature and object to

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remain at a fixed place on a river, lake or coast.

NOTA BENE: In Fels Energy, Inc. v. The Province of Batangas, et.al., G.R. No.

168557, February 16, 2007, the Court ruled that the power barges moored off the

coast of Balayan, Batangas are real property under Article 415(9) of the Civil Code.

This case is beyond the coverage of the 2007 Bar Exam.

Alternative Answer:

The platform is a movable property if it is not permanently attached or anchored

to the ship or seabed. As a result, it may be brought from place to place for various

purposes or may be towed or tethered to other vessels.

2. Are the equipment and living quarters movable or immovable property?

Alternative Answer:With respect to the equipment, the same is real property under paragraph 5 of

Article 415, NCC. It is intended to meet the needs of the industry being undertaken

by Manila Petroleum Co. The equipment partakes of the nature of the immovable

upon which it has been placed.

The living quarters, if attached to the immovable platform with permanence,

becomes an immovable as well. Permanence means they cannot be separated

without destroying the platform or the quarters. (Art. 415[3], NCC). On the otherhand, if the attachment is not permanent, or is merely superimposed on the

platform, then the living quarters are movable property.

Alternative Answer:

With respect to the equipment, the same is real property under paragraph 5 of

Article 415. It is intended to meet the needs of industry being undertaken by

Manila Petroleum Co. The equipment partakes of the nature of the immovable

upon which it has been placed.

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

as well because they partake of the nature of the platform to which they are

attached.

3. Are the trees, plants and flowers immovable or movable property?

Alternative Answer:

The trees, plants and flowers are also immovable, having been plantedin thegarden area under Art. 415(2) which provides that Trees, plants, and growing

fruits, while they are attached to the land or form an integral part of the

immovable are likewise immovable property.

Alternative Answer:

If the platform is movable property, then the trees, plants and flowers are

movable because they are not attached to the land or form an integral part of any

immovable. (par.2, Art. 415, NCC)

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trust

III.

Explain the following concepts and doctrines and give an example of each:

1. concept of trust de son tort (constructive trust) (5%)

A constructive trust is a form of implied trust created by equity to meet the

demands of justice. It arises contrary to intention against one who, by fraud,

duress, or abuse of confidence, undue influence or mistake or breach of fiduciary

duty or wrongful disposition of anothers property, obtains or holds the legal

right to property which he is not entitled to under the law. (Huang v. Court

of Appeals, G.R. No. 108525, September 13, 1994). An example of constructive

trust is when a property is acquired through mistake or fraud, the person obtaining

it, is by force of law, considered a trustee of an implied trust for the benefit of the

person from whom the property comes. (Art. 1456, NCC).

2. doctrine of discovered peril (last clear chance) (5%)

The doctrine of discovered peril, is also known as the doctrine of last clear chance,

applies in a situation where both parties are negligent so that the party who had

the last clear chance or opportunity to avoid the accident by proper care, but

failed to do so, is considered solely responsible for the accident. (Picart v. Smith,

G.R. No. L-12219, March 15, 1918). For example, if a truck driver saw an oncoming

car that swerved and entered the trucks lane to avoid running over a pedestrian,and the truck driver did not slow down or move to the side of the road and give

way to the oncoming car, even though he could have done so to avoid a collision,

then the truck driver shall be solely responsible for the accident. (Mckee v. IAC,

G.R. No. L-68102, July 16, 1992).

Land titles

IV.

(10%)Bedrock Land & Property Development Corp. is a development company

engaged in developing and selling subdivisions, condominium units and

industrial estates. In order to replenish its inventories, it embarked on an

aggressive land banking program. It employed "scouts" who roam all over the

Philippines to look for and conduct investigations on prospective sites for

acquisition and development, whether developed, semi-developed or raw land.

The management of Bedrock asks you as the company counsel to prepare a

manual containing a summary of the pertinent laws and regulations relating to

land registration and acquisition of title to land. The manual should include the

following items:

Supply this information.

1. What is the governing law?

Depending on the transaction involved, one or more of the following will be the

governing laws relating to land acquisition of title to land are as follows:

1. P.D. No. 1529 (Property Registration Decree)

2. Public Land Law (CA No. 141, as amended)

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3. The Civil Code of the Philippines

4. Act No. 2259 (The Cadastral Act)

5. Section 194 of the Administrative Code as amended by Act No. 2837 and Act No.

3344 (System of Recording for Unregistered Real Estate)

6. P.D. No. 1073 (Extending the Period for Administrative and Judicial Legalization

of Imperfect Title)

7. Article XII of the 1987 Constitution

8. P.D. No. 957 (An Act Regulating the Sale of Subdivisions and Condominiums)

9. R.A. 4276 (An Act Amending P.D. No. 957)

10. Real Property Tax Code

2. What properties are not registrable?

With respect to the land banking program of Bedrock, the following properties

may not be registered under the Torrens System with any Register of Deeds: (a)inalienable lands of the public domain; and (b) those prohibited under the

Constitution (such as national parks, mineral lands, forest or timber lands and

agricultural lands not classified as alienable and disposable.)

oblicon

V.

(10%)What are obligations without an agreement"? Give five examples of situations

giving rise to this type of obligations?

Obligations without an agreement are those which are not based on contract.

Apart from contracts, obligations may arise from (1) law; (2) qausi-contract; (3)

delict; and (4) quasi-delict.

Examples of situations giving rise to Obligations without an agreement are as

follows:1. A law was passed requiring the payment of a specific kind of tax.

2. If something is received when there is no right to demand it, and it was unduly

delivered through mistake, the obligation to return it arises. (Article 2154, NCC)

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

business or property of anther, without any power from the latter, he is obliged to

continue the same until the termination of the affair and its incidents, or torequire the person concerned to substitute him, if the owner is in a position to do

so. This juridical relation does not arise in either of these instances:

a. When the property or business is not neglected or abandoned;

b. If in fact the manager has been tacitly authorized by the owner (Article 2144,

NCC)

4. A person, through negligence, caused damage or injury to another.

5. A person intentionally damaged a property of another.

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

by mistake, the recipient not having the right to demand it, is one that arises from

quasi-contract (Article 2154, NCC)

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

person is one which arises from delict or crime (Art. 2206, NCC)

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

by him to another person due to his act or omission, characterized by fault or

negligence, is one which arises from quasi-delict (Art. 2176, NCC) and

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

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

succession

VI.

(10%)

Clara, thinking of her mortality, drafted a will and asked Roberta, Hannah, Luisa

and Benjamin to be witnesses. During the day of the signing of her will, Clara fell

down the stairs and broke both her arms. Coming from the hospital, Clara

insisted on signing her will by thumb mark and said that she can sign her fullname later. While the will was being signed, Roberta experienced a stomach

ache and kept going to the restroom for long periods of time. Hannah, while

waiting for her turn to sign the will, was reading the 7th Harry Potter book on

the couch, beside the table on which everyone was signing. Benjamin, aside from

witnessing the will, also offered to notarize it. A week after, Clara was run over

by a drunk driver while crossing the street in Greenbelt. May the will of Clara be

admitted to probate? Give your reasons briefly.

Yes, the will of Clara may be probated.

A thumbmark has been considered by the Supreme Court as a valid signature if

intended by the testator to be his signature. (Garcia v. La Cuesta, G.R. No. L-4067,

November 29, 1951; De Gala v. Gonzales, G.R. No. L-37756, November 28, 1933).

The three witness rule required for the validity of an ordinary will is satisfied

provided either of the two conditions exists:

1. Roberta could see Clara and the other witnesses sign the will at any time while

she was in the toilet, had she wanted to.

2. If Roberta could not have seen Clara and the other witnesses sign the will, the

same is valid if the will was acknowledged before a Notary Public other than

Benjamin.

It is not necessary that the testator or the witnesses should actually see the others

subscribe their names to the instrument, provided that he is position to see them

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sign if he chooses (Nera v. Rimando, G.R. NO. 5971, February 27, 1911; Yap Tua v.

Yap Ka Kuan, G.R. No. L-6845, September 1, 1914). Thus, the signing must be

considered to be in the presence of Hannah, who was reading a book on the couch

beside the table.

Family law

VII.

Write "TRUE" if the statement is true or "FALSE" if the statement is false. If the

statement is FALSE, state the reason. (2% each).

1. Roberta, a Filipino, 17 years of age, without the knowledge of his parents, can

acquire a house in Australia because Australian Laws allow aliens to acquire

property from the age of 16. (2%)

TRUE

2. If a man commits several acts of sexual infidelity, particularly in 2002, 2003,

2004, 2005, the prescriptive period to file for legal separation runs from 2002. (2%)

FALSE. Every act of sexual infidelity committed by the man is a ground for legal

separation under Article 55(8) of the Family Code (Tolentino, Civil Code, 1990 ed.,

321) Hence, the prescriptive period begins to run upon the commission of each act

of infidelity.

3. An individual, While single, purchases a house and lot in 1990 and borrows

money in 1992 to repair it. In 1995, such individual gets married while the debt is

still being paid. After the marriage, the debt is still the responsibility of such

individual. (2%)

Alternative Answer:

FALSE. Under Article 94(7) of the Family Code, ante-nuptial debts of either spouse

shall be considered as the liability of the absolute community property insofar asthey have redounded to the benefit of the family.

Alternative Answer:

TRUE

4. The day after John and Marsha got married, John told her that he was impotent.

Marsha continued to live with John for 2 years. Marsha is now estopped from filing

an annulment case against John.FALSE. Marsha is not estopped from filing an annulment case against John on the

ground of impotency under Article 45(5) of the Family Code. Unlike the other

grounds for annulment of voidable marriages which are subject to ratification by

continued cohabitation, the law does not allow ratification under Article 45(5).

5. Amor gave birth to Thelma when she was 15 years old. Thereafter, Amor met

David and they got married when she was 20 years old. David had a son, Julian,

with his ex-girlfriend Sandra. Julian and Thelma can get married.

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Alternative Answer:

TRUE.

Alternative Answer:

FALSE. If the marriage was solemnized during the effectivity of the New Civil Code,

the marriage between stepbrother and stepsister is void (Article 80[7]). However,

under the Family Code, this marriage may be valid. (Article 38, FC)

donation

VIII.

(10%)

In 1986, Jennifer and Brad were madly in love. In 1989, because a certain Picasso

painting reminded Brad of her, Jennifer acquired it and placed it in his bedroom.In 1990, Brad and Jennifer broke up. While Brad was mending his broken heart,

he met Angie and fell in love. Because the Picasso painting reminded Angie of

him, Brad in his will bequeathed the painting to Angie. Brad died in 1995.

Saddened by Brads death, Jennifer asked for the Picasso painting as a

remembrance of him. Angie refused and claimed that Brad, in his will,

bequeathed the painting to her. Is Angie correct? Why or why not?

Angie is not correct. The painting is not a property of Brad which he can dispose bywill. Even if the painting was bought while they were madly in love, there can be

no valid donation of such a valuable painting because it was not reduced to writing

as required by Article 748(3) of the New Civil Code.

Therefore, this is a legacy of property not owned by the testator. If Brad knew that

he did not own the painting, it may be considered as an instruction to acquire the

painting from Angie. However, if he erroneously believed he owned the painting,

the legacy is void.

Credit transaction

IX.

Multiple choice: Choose the right answer. (2% each)

1. The parties to a bailment are the:

a. bailor;

b. bailee;

c. comodatario;

d. all the above;

e. letters a and b

E

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

a. an extrajudicial deposit;

b. a voluntary deposit;

c. a necessary deposit;

d. a deposit with a warehouseman;

e. letters a and b

C

3. A contract of antichresis is always:

a. a written contract;

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

fruits of an immovable;

c. Involves the payment of interests, if owing;

d. All of the above;

e. Letters a and b

D

4. An, assignee in a proceeding under the Insolvency Law does not have the duty

of:

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

b. selling property of the insolvent debtor;

c. ensuring that a debtor corporation operate the business efficiently and

effectively while the proceedings are pending;

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

C

5. In order to obtain approval of the proposed settlement of the debtor in an

insolvency proceeding.

a. the court must initiate the proposal

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

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

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

e. Letters a and b

B

succession

X.

(10%)

For purposes of this question, assume all formalities and procedural

requirements have been complied with.In 1970, Ramon and Dessa got married.

Prior to their marriage, Ramon had a child, Anna. In 1971 and 1972,Ramon and

Dessa legally adopted Cherry and Michelle,respectively. In 1973, Dessa diedwhile giving birth to Larry.Anna had a child, Lia. Anna never married. Cherry, on

theother hand, legally adopted Shelly. Larry had twins, Hans and Gretel, with his

girlfriend, Fiona. In 2005, Anna, Larry,and Cherry died in a car accident. In 2007,

Ramon died.Who may inherit from Ramon and who may not? Give your reasons

briefly.

Lia and Michele are the only possible heirs of Ramon.

Lia succeeds by representation of Anna who, if she is an illegitimate child of

Ramon, may be represented by her descendants. (Article 990, NCC). If Anna is a

legitimate child, Lia may not inherit (Article 992, NCC)

Michelle may inherit as an adopted child of Ramon, unless the word respectively

means she was adopted only by Dessa. In the latter case, Michelle will not inherit

from Ramon.

Shelly cannot inherit from Ramon. She cannot represent Cherry in the inheritance

of Ramon since filiation created by adoption is exclusively between the adopter

and the adopted. The legal relationship does not extend to the children of the

adopted. (Rabuya, Law on Persons and Family Relations, 2006 ed., III Tolentino,

Civil Code, 1992 ed., 448-449).

Hans and Gabriel, being illegitimate children of Larry, cannot inherit from Ramonab intestato because of the barrier between the legitimate and the illegitimate.

(Article 992, NCC)

Dessa, Ana , Larry and Cherry will not inherit from Ramon because they

predeceased Ramon. The law requires that one must be alive to be capacitated to

inherit. (Article 1025, NCC)