#BESTBAREVER 2020_21_22 CIVIL & COMMERCIAL LAW
OUTLINE REVIEWER ON
THE LAW ON PRIVATE AND PERSONAL RELATIONS
(18 QUESTIONS)
BY:
DEAN ARTURO M. DE CASTRO
UNIVERSITY OF MANILA
GRADUATE SCHOOL OF LAW
CIVIL LAW (12 QUESTIONS)
1. LEGAL PERSONALITY
1. Any person, natural or artificial, being created by law like corporation,
partnership, capable of possessing legal rights and obligation.
2. Juridical Capacity- fitness to be the subject of legal relations, which is
inherent in every natural person and is lost only through death.
3. Capacity to act- power to do act with legal effect which is acquired and maybe
lost.
4. Restrictions on capacity to act:
a.) Minority
b.) Insanity
c.) Being a deaf-mute, progality or
d.) Civil interdiction
5. Beginning of Personality
-At conception, a conceived child is considered borne, provided it is borne later
alive. Fetus is considered borne if alive at time of complete delivery from
maternal womb unless it dies within 24 hours after complete delivery from
womb if the fetus has an intrauterine life of less than 7 months.
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WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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2. MARITAL RELATIONSHIP
The husband and the wife are obliged to live together, observe mutual love,
respect, and fidelity, and render mutual help and support.
Their property relations are governed by the conjugal partnership of gains, unless
a different property relation, such as separation of properties or absolute community
is agreed upon in a pre-nuptial agreement.
3. PROPERTY
CONCEPT OF PROPERTY
- Anything which is or may be the object of appropriation (ART 414 Civil
Code)
OWNERSHIP
- Independent right of exclusive enjoyment and control of property, with their
right to enjoy, use (Jus Utendi), to enjoy the fruits (Jus fruende)
and the right to consume the thing (Jus Abutendi), the right to
dispose (Jus Disponendi) or the right to vindicate (Jus Vendicandi)
or the right to recover the property (Art. 428).
CO-OWNERSHIP
1. The ownership of an individual thing or right belongs to different persons
(Art 484)
2. A co-owner has the right of pre-emption or redemption in case a co-owner
wants to sell his interest.
3. A co-owner may manage the property and may sue to protect the thing
owned in common.
4. Prescription does not run against or the right of a co-owner unless co-
ownership is repudiated as when a co-owner registers the title only in his
sole name. Prescriptions runs from the registration of the title which is
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WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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tantamount to repudiation of co-ownership. The remedy is reconveyance
within 10 years.
5. In case of alteration or change in the use of the co-owned property, there
must be unanimous agreement of all the co-owners.
RIGHT OF ACCESSION
- Title may not be obtained over accretion by the sea. Such accretion is
property of the public domain (Art. 420). Accretion by the side of the river
belongs in ownership to the owner of the adjacent land by alluvium and
may the subject of land registration under PD 529.
OBLIGATIONS
A juridical necessity to give, to do or not to do (ART. 1156)
SOURCES OF OBLIGATIONS
1.) Law
2.) Contracts
3.) Quasi-Contracts
4.) Acts or omissions punishable by law
-Obligations to do may not be compelled by specific performance; only obligations
to give may be compelled by specific performance. Obligation to do may be subject to
damage.
DEFAULT
-There is delay or default in the performance of the obligation upon demand,
except when time is of the essence in the performance of the obligation or demand
would be useless as when the obligor has become insolvent and demand is waived,
or the law expressly so declares. (ART. 1169)
NUISANCE – any act or omission, businesses, establishment, condition of property
that:
1.) Injures or endangers public health of safety of others
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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2.) Annoys or offends the senses
3.) Shocks, defies, or disregards decency or morality
4.) Obstructs or interferes with the full passage of any public highway or street, or
any body of water; or
5.) Hinders or impairs the use of property.
PUBLIC NUISANCE – affects a community or neighbourhood or any considerable
members or persons.
PRIVATE NUISANCE – affects only a person or small number of person and may be
abated only by juridical proceeding.
• A public nuisance may be abated without the need of juridical proceedings.
DOCTRINE OF ATTRACTIVE NUSIANCE
- Dangerous instrumentality, which is attractive to children of tender years at
play, where the owner fails to exercise due diligence to present such children
from playing therewith is liable to the injured child even if technically he is a
trespasser.
CONTRACTS
IN GENERAL:
ELEMENTS OR REQUISITES OF A VALID CONTRACT
1. Meeting of the minds
2. Object Certain
3. Prestation or consideration
CHARACTERISTICS OF A VALID CONTRACT
1. Essential Mutuality
-it must be agreed upon by both parties. A Potestative Condition, which is
dependent upon the will of one party is null and void and deemed not imposed
for violation of essential equality between the parties. The rate of interest
unilaterally imposed by the lender without the agreement of the borrower as
the interest rate null and void, in which case the interest rate applicable is the
legal rate is of 12% per month.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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2. Relativity of Contract
- Contract takes effectively between the parties, their privies and successor-in-
interest except where there is a stipulation por atrui in favor of a third party
who has accepted the stipulation. A contract does not bind a third party.
- In Remedial Law, an admission of a co-conspiracy is not admissible against
another co-conspirator unless the conspiracy is proven by independent
evidence.
3. Contracts are obligatory in whatever form, except when formality is required
for validity or enforceability. A donation must be accepted to be valid. Contracts
must be in to be enforceable under the Statute of Frauds.
4. Complimentarity of Contract
- Implementing agreements cannot vary the tenor and terms of another
agreement. Usually in the form of Memorandum of Agreement (MOA).
TORTS, QUASI-DELICTS
1. Any person who causes damage or injury to another is liable for damages.
2. QUASI-DELICT – is fault or negligence of a person who, by his act or omission
causes damage to another whether punishable by law or not, whether criminal or
not, voluntary, or unintentional that results in damage or injury to another.
PERSONS LIABLE FOR DAMAGES ARISING FROM QUASI-DELICT
Persons directly responsible for the damages incurred are the following:
1. The father, and in case of his death or incapacity, the mother, with respect to
damages caused by the minor children living with them.
2. Guardians, for damages caused by the minors or incapacitated persons who
are under their authority and living with them.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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3. The owners and managers of enterprise, for damages caused by their
employees in their service or in the performance of their functions.
4. Employers for damages caused by their employees and household helpers in
the performance of their tasks even though the employers are not in business
or industry.
5. The state for the acts done by special agents not in the performance of the
assigned tasks or duties.
6. Teachers or wards of establishments of arts and trade as to damages cause by
their people and students or apprentices under their custody (Art. 2180).
DOCTRINE OF PROXIMATE CAUSE- the cause of the cause of the evil caused.
CONTRIBUTORY NEGLIGENCE - the damage shall be mitigated/ reduced if the
negligence of plaintiff is only contributory, and the proximate cause is done by the
defendant. If the plaintiff cooperated with the negligence of the plaintiff, there should
be no recovery.
DOCTRINE OF IMPUTED NEGLIGENCE – the negligence of a person in transaction
or act which gives rise to the injury is imputable against the person for whom he was
acting or against his associates.
DOCTRINE OF LAST CLEAR CHANCE - where both parties are negligent in such a
way that it would be impossible to determine whose negligence was the proximate
cause of accident. The party who had the last clear chance or opportunity to avoid the
accident by the use of proper care but failed to do so is considered in law solely
responsible for the accident.
DOCTRINE OF RES IPSA LOQUITOR - the thing that causes the accident is under
the management of the defendant or his servant and the accident would not have
happened in the ordinary course of events of those who have the management had
used proper care. It is presumed that the accident was due to negligence of the
defendant in the absence of explanation of the defendant.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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In administrative disciplinary action against a Judge, the doctrine of res ipsa
loquitor provides justification for immediate dismissal of the Judge if from the order it
is clear that he has violated a fundamental and basic provision of law or has thereby
demonstrated ignorance of the law. The offensive order or decision speaks for itself.
(Supena vs. Dela Rosa).
DAMAGES – compensation for pecuniary loss or physical suffering or abuse of right.
ACTUAL OR COMPENSATORY – for pecuniary loss suffered
MORAL DAMAGES – for physical suffering, mental anguish, fright, serious anxiety,
reputation, wounded feelings, moral shock, social humiliation.
NOMINAL DAMAGES – vindication or recognition of one’s right
TEMPERATE DAMAGES – more than nominal but less than compensatory but the
amount cannot be proved with certainty.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
#BESTBAREVER 2020_21_22 CIVIL & COMMERCIAL LAW
COMMERCIAL LAW (6 QUESTIONS)
CORPORATION
- An artificial being created by operation of law having the right of succession,
and the powers, attributes and properties especially authorized by law and
incident to its existence.
1. KINDS OF CORPORATION
A. Public Corporation – organized by special law or charter for governmental or
other functions. If organized for proprietary function, it must satisfy the two (2)
requirements of economic viability and public welfare.
B. Private Corporation – organized under general law, the Corporation Code for
profit or Charity.
1. Stock Corporation – the capital stock is divided into shares and is authorized
to distribute to the holders’ dividends from surplus profits in proportion to the
shares held.
2. Non- Stock Corporation – part of the income is distributable or pay to its
members, trustees, and officers.
3. Close Corporation – with members not exceeding 20.
4. Corporation Sole – with a single stockholder
5. De Jure Corporation – duly organized under the law.
6. De Facto Corporation – not duly organized with colorable compliance with the
law.
7. Eleemosynary Corporation – For charitable purpose
8. Domestic Corporation – organized under Philippine law
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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9. Foreign Corporation – organized under foreign law doing business in the
Philippines, may sue in the Philippine courts if licensed to do business. May not
sue if not licensed unless the defendant is under estoppel.
2. STOCKHOLDERS
- Have the power to elect directors and to receive dividends from surplus profits
- Have appraisal rights in case of disapproval in the fundamental changes in
capital structure, sale of all or substantially all assets, declaration of stock
dividends, merger and consolidation, whether into another business.
- Have pre-emptive rights to subscribe proportionately to increase in capital stock
to maintain his percentage share
- Entitled to liquidating dividends.
3. BOARD OF DIRECTORS
- The business affaires are managed by the Board of Directors, the governing
body of the Corporation.
The member of the Board and officers have the following fiduciary duties:
Duty of Obedience- to obey the business purpose of the corporation. Acts done
outside the power and functions of the Corporation are ultra-wires acts, for which
the directors and officers are liable to the corporation for damage or injury in a
derivations suit that may be brought by the stockholder on behalf of the Corporations
against the erring officer and directors.
Duty of Diligence – to act with good faith and prudence, free from negligence.
Under the Best Business Judgement Rule, and officer or director is not liable for
corporate transactions done in good faith and without negligence.
An officer or director is criminally liable for criminal acts committed on behalf
of the corporation.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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Duty of Loyalty – under the doctrine of corporate opportunity, an officer or director
who takes advantage of a business opportunity that belongs to the corporation is liable
to turn over the business appropriated and account for all the profits to the
corporation. They should avoid conflict of interest and observe honesty and good faith
and give to the corporation the business opportunity due to the corporation.
4. ARTICLES OF INCORPORATION AND BY LAWS
1. The Articles of Incorporation defines the power and functions of the
corporation under the Principal and Secondary purpose clause . It also states
the principal office of the corporation for purposes of establishing venue of
action for or against the corporation. The capital structure, whether stock or
non-stock capital stock, or non-stock non-profit are found in the articles of
incorporation.
2. The By Laws contain the rules and regulations of electing officers, their powers
and functions and disciplinary action such as removal of directors by the
stockholders.
INTRA CORPORATE CONTROVERSY
- Involves a controversy between or among the stockholders, directors, officers,
and the corporation involving the intra-corporate relationship under the articles
and by-laws such as the compensation of corporate officers, right of appraisal,
right to dividends and similar intra-corporate issue.
Purely civil controversy between stockholders, directors and officers and
the corporation are not intra-corporate controversy that falls under the
jurisdiction of the regular RTC and not the RTC designated by the Supreme
Court as special Commercial court to handle intra-corporate controversies.
Example of intra-corporate controversies are:
➢ Petition for rehabilitative or insolvency
➢ Removal of directors
➢ Derivative suits by a stockholder for a cause of actions that belongs to the
corporation against the officers and directors for mismanagement.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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INTELLECTUAL PROPERTY (COPYRIGHT)
1. FAIR USE PRINCIPLE
- Making quotations from a published work compatible with fair use and only to
the extent justified for the purpose does not constitute infringement of
copyright, including quotations from newspaper, articles and periodicals in the
form of press summaries; Provided that the source and the name of the author,
if appearing on the work, are mentioned.
- The fair use of a copyright work for criticism, comment, news reporting,
teaching including multiple copies for classroom use, scholarship research, and
similar purpose is not an infringement of copyright.
- DECOMPILATION – the reproduction of the code and translation of the forms
of the computer program to achieve the inter-operability of an independently
created computed program with other program may also constitute fair use.
FACTORS TO BE CONSIDERED TO DETERMINE FAIR USE ARE:
A.) The purpose and character of the use, whether commercial or for non-profit
education purpose.
B.) Nature of the copyrighted work.
C.) The amount or substantiality of the poster used
D.) Effect of the use on the potential market for or value of the copyrighted work
MORAL RIGHTS OF THE AUTHOR INDEPENDENTLY OF ECONOMIC OR
GRANT OF LICENSE OR ASSIGNMENT
A. Attribution of authorship to him or copies for public use
B. To alter or withhold publication
C. To object to distortion or modification or action to dishonor him.
D. Restrain use of his name in distorted version.
WHEN WAIVER OF MORAL RIGHTS IS INVALID?
1. Use of name, title or his work or reputation of the author in any version of
adaptation would injure the literary or artistic reputation of another author
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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2. To use the name of the author with respect to a work he did not create.
TERM OF MORAL RIGHTS
During his lifetime and for 50 years after his death and shall not be assignable
and subject to license. The posthumous enforcement of moral right shall be done by
the person assigned for the purpose or in his absence, any heir of the author, or in
the absence of the latter, by the Director of the National Library.
INSURANCE
WHAT MAY BE INSURED?
Only future contingent event that may cause loss, damage or liability may be
covered with an insurance contract, except a past even unknown to the partner may
be covered by the marine insurance.
CLAIMS FOR LIFE INSRUANCE
There is no limit on the amount the insured may insure his life, so long as he
can pay the premium, except that a creditor may insure the life of a debtor for an
insurable interest equal only to the indebtedness.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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R.A. NO. 10173 (DATA PRIVACY ACT OF 2021)
PURPOSE:
- To protect the fundamental human right to privacy or privacy of communication
while ensuring free flow of information to promote innovation and growth.
- To ensure that personal information in information and communications system
in the government and in the private sector are secured and protected.
DATA SUBJECT
- An individual whose information is processed.
PERSONAL INFORMATION
-Any information, whether recorded in a natural form or not, from which the
identity is ascertained by the entity holding the information or when put together with
other information would directly and certainly identify the individual.
SENSITIVE PERSONAL INFORMATION
1. Individual’s race, ethnic origin, mental status, age, color religion, philosophical
or political affiliation.
2. Health, education, genetics or sexual life of a person, any proceeding for any
offense and the disposal thereof, or sentence therein
3. Personal information issued by the Government such as Social Security
Number, Health records, licenses or their denial suspension or revocation, tax
returns
4. Classified by order of an act of Congress or Executive Order
PROCESSING
- Any use of personal information such as collection, recording, organization,
storage, updating or modification, retrieval, consultation, use, consolidation,
blocking, erasure, or destruction of data.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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EXEMPTION FROM DATA PRIVACY LAW
1. Personal information of Government Officers and employees connected with
the performance of public functions, including their title, business address,
office telephone number, functions and responsibilities, salary range, including
contractual employees performing government services, the terms of their
contract and the name of the individual given in the course of the performance
of official services, including the discretionary benefit of a financial value.
2. Personal Information process for journalistic, artistic, literary or research
purposes.
3. Information in order to carry out the functions of public authority, without
amending the Secrecy of Bank Deposit Act (RA 1405) and the Foreign
Currency Deposit Act (RA 6426) and the Credit Information System
(RA 9510).
4. Information for banks and other financial institutions to comply with the Anti-
Money Laundering Act (RA 9160) and
5. Personal Information collected from residents of foreign country under the law
of the forum.
Protection to Journalist and their sources – they cannot be compelled to reveal
the source of any news report or information related in confidence.
FAIR USE DOCTRINE
A. Processing of personal information may be allowed by the National Privacy
Commission, if not otherwise prohibited by law if:
1. The data subject has given his or her consent or it is necessary for the
fulfilment of contract with the data subject or to take preparatory steps
thereto or
2. For compliance with legal obligation
3. To protect vitally important interest of the data including life and health
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WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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4. To respond to the national emergency to comply with the requirements of
public order or safety or fulfil the functions of public authority.
PROCESSING OF SENSITIVE PERSONAL INFORMATION
- Is prohibited, except with the consent of the data subject, specific to the
purpose prior to the processing, and with the prior consent of all the parties in
case of privileged information consistent with any of the following fair use:
1. To protect the life and health of the data subject or another person, or
2. To achieve the lawful and non-commercial objectives of public organization and
their associations, related and confined only to the bona fide members of the
organization or their associations, and the sensitive personal information are
not transferred to third parties and finally that the consent of the data subject
was obtained prior to processing.
3. For purposes of medical treatment carried out by medical practitioner or
medical treatment institution, or
4. For the protection of lawful rights and interests of natural or legal person in
court to establish, exercise or defence legal claims.
RIGHTS OF DATA SUBJECT
1. To be informed of all the material details of the use of his personal information
and be furnished with all the information before use of his personal information
such as description of the personal information, purpose, means and method
of processing, recipients to whom they may be disclosed. Methods utilized for
automated access, the identity of contact details, period of storage and the
rights to access, correct and lodge complaints before the Commission.
2. Access upon demand to the material details of the use of personal information.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY
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3. To suspend, withdraw, order the blocking, removal or destruction of these
personal information from the controller’s filing system, and
4. To be indemnified for damages due to inaccurate, incomplete, outdated, false,
unlawfully obtained or unauthorized use of personal information.
NOTES AND COMMENTS
1. The penalty for illegal use of sensitive personal information is higher that the
penalty for simple personal information.
2. President GMA issued a National ID system including personal information of
private individuals involving private transactions, which was declared
unconstitutional by the Supreme Court, while declaring as valued the National
ID established by President Fidel Ramos limited only to private individuals with
transactions with the Government.
The Data Privacy Act of 2021 is a codification of the decision of the
Supreme Court in Kilusan Mayo Uno vs Neda G.R No. 167798, April 19, 2006
summarized in De Castro, Arturo, Read: Study Guide for the Bar, 2007 ed., Rex
Publication pp 15 to 22.
TRANSCRIBED BY: ROSANIE P. REMOTIN, JD
WESTERN MINDANAO STATE UNIVERSITY
ZAMBOANGA CITY