subsists against his estate.
No property or portion of the
inheritance may be transmitted to his heirs unless the
Basis of Succession debt has first been satisfied.
- The basis or foundation of succession is the Intransmissible obligations:
recognized necessity of perpetuating man’s patrimony
beyond the limits of human existence. This necessity, - Those which are purely personal
in turn, is based on the necessity of giving greater
stability to the family and to the social economy. (4 1. Partnerships
Castan, 6th Ed., p. 148) 2. Agency
3. By the very nature of the obligations therefrom
Succession v. Inheritance (ex. Those requiring special personal
qualifications of the obligor)
- Succession is the mode of acquiring ownership
- Inheritance is what will be transmitted Contract of Lease with Option to Buy
What inheritance includes - Transmissible
- Property Test:
- Rights and obligations which are not extinguished by
a person’s death Whether it is of such a character that it may be performed by
- Those which have accrued to the inheritance since the promissor's personal representative.
the opening of the succession (death)
Transmissible – where the service or act is of such a character
GR: Contracts take effect only between: that it may as well be performed by another, or where the
contract, by its terms, shows that performance by others was
1. Parties contemplated, death does not terminate the contract or excuse
2. Heirs nonperformance.
3. Assigns
Intransmissible – Contracts to perform personal acts which
XPN: In case where rights and obligations arising from cannot be as well performed by others are discharged by the
contract are not transmissible: death of the promissor.
1. By nature Case: DKC Holdings Corporation v. CA, G.R. No. 118248,
2. By stipulation April 5, 2000
3. By provision of law
There is neither contractual stipulation nor legal provision
Case: Inocencio v. Hospicio de San Jose, G.R. No. making the rights and obligations under the contract
201787, September 25, 2013 intransmissible. More importantly, the nature of the rights and
obligations therein are, by their nature, transmissible.
Lease contract is not essentially personal in character. Thus,
the rights and obligations therein are transmissible to the heirs. There is no personal act required from the late Encarnacion
Bartolome. Rather, the obligation of Encarnacion in the
XPN: If there is a stipulation to the contrary contract to deliver possession of the subject property to
petitioner upon the exercise by the latter of its option to lease
Note: In this case the stipulation (Sec 6.) on prohibition on the same may very well be performed by her heir Victor.
sublease is effect only inter vivos not mortis causa.
Being an heir of Encarnacion, there is privity of interest
Money obligations between him and his deceased mother. He only succeeds to
what rights his mother had and what is valid and binding
- Do not become the personal liability of the heirs. against her is also valid and binding as against him.
- The estate of the decedent (to the extent of the value
of the inheritance) Property right
Note: The heir is not liable beyond the value of the property - The death of a party does not excuse
he received from the decedent. (Art. 1311, NCC) nonperformance of a contract which involves a
property right, and the rights and obligations
Case: Genato v. Bayhon, G.R. No. 171035, August 24, thereunder pass to the personal representatives of the
2009 (Art. 1311, 774 & 766 NCC still apply) deceased.
While in our successional system the responsibility of the heirs - Nonperformance is not excused by the death of the
for the debts of their decedent cannot exceed the value of the party when the other party has a property interest in
inheritance they receive from him, the principle remains intact the subject matter of the contract.
that these heirs succeed not only to the rights of the deceased
but also to his obligations. Transmission of successional rights
The loan in this case was contracted by respondent. He died - From the moment of the death of the decedent (Art.
while the case was pending before the Court of Appeals. While 777, NCC)
he may no longer be compelled to pay the loan, the debt
Prior to the death of the decedent, the heirs only have:
- Mere expectancy
- Inchoate
Rights of the heirs upon the death
- Rights are vested
Death may be actual or presumed
Legitime
Part of the testator’s property which he cannot disposed of
because the law has reserved it for his compulsory heirs.
XPN:
Arts. 915, 919, 920, and 921, NCC
Compulsory heirs:
a. Primary – have priority over the secondary
b. Secondary
c. Concurring compulsory heirs
How legitime is computed:
- The net hereditary estate must first be determined.
basis: value of the property left at the death of the testator
minus: debts and other charges against his estate
add: donations made by the testator during his lifetime;
donations inter vivos must be collated.
Estate after testator’s death
- Obligations and charges against estate
+ value of all donation inter vivos
= basis of computation of the legitime of the compulsory heirs
- Legacy/ Devise
Note: If donation is made to a compulsory heir and it
exceeds the amount of his/her legitime, the excess
shall be charged against that portion of the estate for free
disposal.
Note: There will be a reduction to the donation made if the
excess would still impinge on the legitime of the other
compulsory heirs
Order of priority in the distribution of the estate of the decedent.
1. Legitime
2. Donations inter vivos
3. Legacies devises