JLo Cases

Question 1

What is the default property relations of the spouses absent any showing that they agreed on a particular regime?

Answer 1

Article 160 of the Civil Code is explicit that -

All property of the marriage is presumed to belong to the conjugal partnership, unless it be proved that it pertains exclusively to the husband or to the wife.

Question 2

When does the Family Code takes effect?

Answer 2

August 3, 1988

Question 3

What law will apply when the sale or alienation of a property transpired after the effectivity of the Family Code?

Answer 3

,The applicable law must be reckoned on the date of the alienation or encumbrance of the conjugal property made without the consent of the other spouse:

1. The alienation or encumbrance of the conjugal property, without the wife’s consent, made before the effectivity of the Family Code, is not void but merely voidable. The applicable laws are Articles 166 and 173 of the Civil Code. The wife may file an action for annulment of contract within 10 years from the transaction; and
2. The alienation or encumbrance of the conjugal property, without the authority of the court or the written consent of the other spouse, made after the effectivity of the Family Code is void. The applicable Jaw is Article 124 of the Family Code without prejudice to vested rights in the property acquired before August 3, 1988.

Before FC - voidable
remedy: annulment of contract with 10 yrs from transaction.

After FC - void

Question 4

When is consent manifested?

Answer 4

Consent is manifested by the

1.meeting of the offer and 2. the acceptance of the thing and the cause,

which are to constitute the contract. The absence of consent renders the contract void and inexistent.

Question 5

Does an action to nullify a void contract prescribed?

Answer 5

No. It is settled that contracts involving the sale or mortgage of unregistered property by a person who was not the owner or by an unauthorized person are void.

Reygan and Belinda cannot acquire any right from a void contract that has no force and effect from the very beginning.

This contract cannot he validated either by ratification or prescription. The action to nullify the transaction is imprescriptible.

(Alexander vs. Escalona
GR 256141)

Question 6

What is the principle of principle against unjust enrichment?

Answer 6

Article 22 of the Civil Code - which provides that a person who acquires or comes into possession of something at the expense of another without just or legal ground must return it.

To be applicable, Article 22 requires that:
(a) a person is benefited without a valid basis or justification, and
(b) such benefit is derived at another’s expense or damage.

Question 7

How is the principle of Unjust Enrichment applied?

Answer 7

The principle of unjust enrichment does not automatically apply when one party benefits from the efforts or obligations of another.

It is necessary to show that the enrichment of one party is without a just or legal ground, and that the plaintiff has no other action against the other party.

In other words, there is no unjust enrichment when the person who benefited has a valid claim to such benefit.

Question 8

What is the Molina Doctrine, in relation to Article 36 of the of the Family Code?

Answer 8

The Molina doctrine required the parties to prove not only gravity and antecedence stated under Article 36, but also incurability.

Gravity - that the person who contracted the marriage is psychologically incapacitated to assume the essential marital obligations and not merely refuses or neglects to do so because of difficulty or ill will.

Antecedence - requires that the incapacity exists at the time of the solemnization of the marriage, even if it manifests only thereafter.

incurability - This contemplates of a situation wherein the person’s personality structure manifests through clear acts of dysfunctionality which undermine the marital union.

The incapacity is so enduring and persistent with respect to a specific partner, and contemplates a situation where the couple’s respective personality structures are so incompatible and antagonistic that the only result of the union would be the inevitable and irreparable breakdown of the marriage.

Question 9

Is chronic infidelity is a form of psychological incapacity?

Answer 9

Yes.

To be considered as a form of psychological incapacity, infidelity must satisfy the requirements of (1) gravity or severity,
(2) antecedence, and
(3) legal incurability or persistence during the marriage.

Question 10

What is the nature of marriage?

Answer 10

It is “special contract” of an exclusive partnership between a man and a woman.

Question 11

Is infidelity only a ground for legal separation?

Answer 11

While it is true that infidelity is a ground for legal separation, the same may also be an indication of a psychological incapacity if, for the same reason, one is completely unable to discharge the essential obligations of marriage.

(Antonio S. Quiogue, Jr. Vs. Maria Bel B. Quiogue and the Republic of the Philippines, G.R. No. 203992. August 22, 2022)

Question 12

What are the essential obligations of a marriage?

Answer 12

Under Article 68 of the Family Code,
the “husband and wife are obliged to
1. live together,
2. observe mutual love, respect and fidelity, and
3. render mutual help and support.

Question 13

How is Fidelity defined as an obligation of the husband and wife under Article 68 of the Family Code?

Answer 13

Article 68 of the Family Code itself recognizes fidelity as the norm and a spouse should not be made to settle for anything less than absolute faithfulness from the other.

Question 14

What does Article 36 is on psychological incapacity require?

Answer 14

Article 36 is clear that the psychological incapacity must be

“existing at the time of the celebration” of the marriage,

“even if such incapacity becomes manifest only after its solemnization.”

As contemplated under the law, psychological incapacity depicts an

*enduring aspect of a spouse’s personality structure,
*existing at the time of the celebration of marriage, *that renders them incapable of understanding and complying with their essential marital obligations,
*manifested through clear acts of dysfunctionality that undermines the family.

(Republic v. CA)

Question 15

How is divorce distinguished from psychological incapacity?

Answer 15

Divorce severs a marital tie even for causes, psychological or otherwise, that may have developed AFTER the marriage celebration.

Question 16

What can be a proof of juridically antecedent in psychological incapacity?

Answer 16

Proof of juridically antecedent psychological incapacity may consist of testimonies describing the environment where the supposedly incapacitated spouse lived that may have led to a particular behavior

Question 17

Does the law require a clinical diagnosis of a mental or personality disorder to obtain a decree of nullity on the ground of psychological incapacity?

Answer 17

No, the law does not require a clinical diagnosis of a mental or personality disorder to obtain a decree of nullity on the ground of psychological incapacity.

Psychological incapacity does not need to be a medical or clinical condition.

thus:
Ordinary witnesses who have been present in the life of the spouses before the latter contracted marriage may testify on behaviors that they have consistently observed from the supposedly incapacitated spouse.

From there the judge will decide if these behaviors are indicative of a true and serious incapacity to assume the essential marital obligations.

Question 18

How is Gravity considered as ground for psychological incapacity?

Answer 18

The psychological incapacity must also be grave to distinguish it from “mild characterological peculiarities, mood changes, occasional emotional outbursts”[31] generally brought about by human nature and the natural dynamics of every personal relationship.

Question 19

What is Incurability in the legal sense as basis for psychological incapacity?

Answer 19

The incapacity is so enduring and persistent with respect to a specific partner, and contemplates a situation where the couple’s respective personality structures are so incompatible and antagonistic that the only result of the union would be the inevitable and irreparable breakdown of the marriage.

Question 20

Is the application of rigid medical parameters indispensable in Psychological incapacity as a ground to consider a marriage void under Article 36 of the Family Code?

Answer 20

No. Psychological incapacity as a ground to consider a marriage void under Article 36 of the Family Code, is not a medical, but a legal concept. Application of rigid medical parameters for its determination is, thus, ill-suited.

Expert opinions furnished by psychiatrists or psychologists on the psychological temperament of parties are not indispensable.

It is enough that the totality of clear and convincing evidence proves that an enduring aspect of a spouse’s personality, existing at the time of the celebration of marriage, render him or her incapable of understanding or performing essential marital obligations.

Question 21

What are the two indispensable requisites which must concur
for an action for quieting of title to prosper?

Answer 21

(1) the plaintiff has a
legal or an equitable title to or interest in the real property subject of the action; and

(2) the deed, claim, encumbrance, or proceeding claimed to be casting cloud on their title must be shown to be in fact invalid or inoperative despite its primafacie appearance of validity or legal efficacy.

Question 22

Is physical intrusion is a ground for quieting of title?

Answer 22

No. In Titong v. Court of Appeals, the Court
emphatically ruled that physical intrusion is not a ground for quieting of title.

With an allegation of a violation (physical intrusion) of a right (ownership),
petitioners clearly do not seek a declaratory relief or mere removal of cloud
over their title. Ultimately, they seek to recover full possession of the
properties as an element of their ownership, which was disturbed by
Concepcion’s physical intrusion. (Velarde vs Heirs of Concepcion Candari GR190057)

Question 23

What is Accion Reivindicatoria?

Answer 23

It is a suit to recover full possession
of a parcel of land as an element of ownership.

Question 24

What is the essence of essence of a Pacto de Retro sale?

Answer 24

The essence of a pacto de retro sale is that title &
ownership of the property sold are immediately vested in the vendee a retro, subject [only] to the resolutory condition of repurchase by the vendor a retro within the stipulated period.”

Once the vendor a retro fails to redeem the
property within the agreed period, absolute ownership is vested upon the vendee a retro by operation of law.

Question 25

What nature of a Pacto de retro sale?

Answer 25

The very nature of a pacto de retro sale, ownership is automatically vested
upon the vendee a retro by operation of law when the vendor a retro failed to
exercise the right to redeem the properties. Inevitably, the vendor a retro no longer owns the property sold at that point.

Thus, subsequent conveyance of
the unredeemed properties through quitclaim and waiver of rights was, improper, unnecessary, and a mere surplusage.

The irrevocable title of
petitioners’ predecessor-in-interest, Isagani, remained intact with or without such quitclaim and waiver. ((Velarde vs Heirs of Concepcion Candari GR190057)

Question 26

What is the nature of a duly executed contract or instrument?

Answer 26

“A duly executed contract or instrument carries with it the presumption of validity.”

Claims adverse to such presumption grounded on
fraud cannot be sustained by mere construction as fraud must be specifically
alleged and proved in all cases. The party who impugns its regularity has the burden of presenting clear and convincing evidence of irregularity.

Question 27

When can the donation of donation of an immovable property valid?

Answer 27

Art. 749. In order that the donation of an immovable may be valid, it must be made in a public document, specifying therein the property donated and the value of the charges which the donee must satisfy.

The acceptance may be made in the same deed of donation or in a separate public document, but it shall not take effect unless it is done during the lifetime of the donor.

If the acceptance is made in a separate instrument, the donor shall be notified thereof in an authentic form, and this step shall be noted in both instruments.

Question 28

When are solemn contracts valid?

Answer 28

Solemn contracts like donations of immovable property are valid ONLY when they comply with legal formalities.

Absent the solemnity requirements for validity, the mere intention of the parties and concurrence to the agreement will not give rise to a contract.

Question 29

What are Classifications of contracts – Contracts Law?

Answer 29

1) Consensual contract / Ordinary Contract
- perfected by the concurrence of the requisites of consent, object and cause

2) Formal / solemn contracts
- refer to contracts that require a solemnity or a formality in addition to the essential requisites in order to be perfected.

Contracts for which the law itself requires that they be in some particular form (e.g. in writing) in order to make them valid and enforceable (the so-called solemn contracts)

3) Real contracts
– refer to contracts wherein delivery of the object is required in order to be perfected.

Question 30

Is the donation invalid if it violates the formal requirements set by the prevailing law at the time of signing?

Answer 30

A defective notarization may render a donation invalid if it violates the formal requirements set by the prevailing law at the time of signing.

There is nothing in the law that obligates the parties to a notarized document to sign the notarial register. This requirement was subsequently included only in Section 3, Rule VI of the 2004 Rules on Notarial Practice.

The present deed of donation, however, was executed and acknowledged before the notary public on January 18, 2002, when there is no rule yet that requires the parties to sign the notarial register.

(PATENIA-KINATAC-AN vs. ENRIQUETA PATENIA-DECENA G.R. No. 238325, June 15, 2020)

Question 31

What is an agreement in writing contemplated in the statute of limitations?

Answer 31

A “writing” for the payment of money sued in an action, within the meaning of the ten-year statute of limitations, is one which contains either an express promise to pay or language from which a promise to pay arises by fair implication.

It is sufficient if the words import a promise or an agreement or if this can be inferred from the terms employed.

Where the promise or agreement to pay on which the action is based does not appear in express terms or by fair implication in writing, but the cause of action arises out of facts collateral to the instrument, it does not fall within the provision of the statute of limitations.

Question 32

What is the difference between a WRITTEN and ORAL Contract

Answer 32

In Manuel v. Rodriguez, et al.,

WRITTEN contract must contain all the terms in writing and, a contract partly in writing and partly oral is, in legal effect, an oral contract.

Question 33

Are checks considered an agreement in writing?

Answer 33

Checks are not the kind of “writing” or “written agreement” contemplated by law for the 10-year limitation to apply.

Question 34

When does written contracts prescribes?

Answer 34

Under Act 190, an action based upon a written contract prescribes in 10 years, whereas one predicated on a contract NOR in writing must be commenced in 6 years. (like the checks which is not an agreement in writing)

Question 35

When does the right of action accrues in cases of dishonored checks resulting to non-payment?

Answer 35

The dishonor of the checks resulted in a breach of contract for non-payment. The right to bring an action for collection accrued from the date of the dishonor of the checks

Question 36

Does Philippine Law laws prohibit the probate of wills executed by foreigners abroad?

Answer 36

A foreign will can be given legal effects in our jurisdiction.

Article (Art.) 816 of the Civil Code is instructive:

ART. 816. The will of an alien who is abroad produces effect in the Philippines if made with the formalities prescribed by the law of the place in which he resides, or according to the formalities observed in his country, or in conformity with those which this Code prescribes.

Question 37

Does the Philippines take judicial notice of foreign laws?

Answer 37

Foreign law must be properly alleged and proven, and our courts are not at liberty to exercise judicial notice without contravening our Rules of Evidence.

Under the Rules of Court, the record of public documents of a sovereign authority or tribunal may be proved by (1) an official publication thereof, or
(2) a copy attested by the officer having the legal custody thereof.

Such official publication or copy must be accompanied, if the record is not kept in the Philippines, with a certificate that the attesting officer has the legal custody thereof.

Question 38

What is doctrine of presumed-identity approach or processual presumption?

Answer 38

Where a foreign law is not pleaded or, even if pleaded, is not proved, the presumption is that foreign law is the same as ours.

Example: Since foreign law was not alleged and proven, the Will must comply with Philippine laws. ( as to formalities of the Will)

Question 39

Does Estoppel apply in probate proceedings?

Answer 39

Estoppel is not applicable in probate proceedings because they involve public interest. Otherwise, the truth as to the circumstances surrounding the execution of a testament may not be ascertained which is inimical to public policy.

(IN THE MATTER OF THE TESTATE ESTATE OF AIDA A. BAMBAO, [ G.R. No. 237449, December 02, 2020 )

Question 40

Is substantial compliance with formalities sufficient to uphold a will?

Answer 40

No, substantial compliance with formalities is not sufficient to uphold a will, and it cannot fill the void left by non-compliance, especially with regard to the requirement of acknowledgment.

Question 41

Does non-payment of an obligation render a contract void?

Answer 41

Non-payment of an obligation does not render a contract void, in which case, the remedy of the injured party is simply demand fulfillment, or rescission of the contract under Article 1191 of the Civil Code.

Question 42

Can a party deny the content of a contract where he signs the same?

Answer 42

No. The rule is that one who signs a contract is presumed to know its contents, especially if the person who signed has caused the preparation of the document.

Question 43

What is required to be entitled to an adequate compensation for pecuniary loss?

Answer 43

Article 2199 of the Civil Code provides that “except as provided by law or by stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved.

Question 44

What are Actual or Compensatory damages ?

Answer 44

Actual or compensatory damages cannot be presumed but must be proved with reasonable degree of certainty.

A court cannot rely on speculations, conjectures, or guesswork as to the fact of damage but must depend upon competent proof that they have indeed been suffered by the injured party and based on the best evidence obtainable as to the actual amount thereof.

Question 45

When is contract provision ambiguous?

Answer 45

t provision is ambiguous if it is susceptible of two reasonable alternative interpretations.

Question 46

How is the letters of the contract interpreted?

Answer 46

Where the language of a contract is plain and unambiguous, its meaning should be determined without reference to extrinsic facts or aids.

“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.”

Question 47

What is the distinction between a stipulation to RENEW a lease and one to EXTEND it beyond the original term?

Answer 47

A renewal clause creates an obligation to execute a new lease for the additional period. It connotes the cessation of the old agreement and the emergence of a new one.

On the other hand, an extension clause operates of its own force to create an additional term. It does not require the execution of a new contract between the parties.

Question 48

What is the effect of lease was made for a determinate time?

Answer 48

if the lease was made for a determinate time, it ceases upon the day fixed, without the need of a demand.

Question 49

What is required in in extrajudicial foreclosure of real estate mortgage?

Answer 49

A special power to sell the property is required which must be either inserted in or attached to the deed of mortgage.

“A special power of attorney is necessary before entering “into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration.”

Thus, the written authority must be a special power of attorney to sell.

Question 50

How are terms of a contract treated by court?

Answer 50

It is settled that the literal meaning shall govern when the terms of a contract are clear and leave no doubt as to the intention of the parties.[17] The courts have no authority to alter the agreement or to make a new contract for the parties.

Question 51

When can the Court permitted to interpret the agreement in the contract?

Answer 51

** It is only when the contract is vague and ambiguous that the courts are permitted to interpret the agreement and determine the intention of the parties.

In the case of Alcala vs Villanueva, the real estate mortgage contract is complete and leave no doubt as to the authority of TCLC to sell the mortgaged property.

In this case, paragraph 3 of the real estate mortgage sufficiently incorporated the required special power of attorney to sell. It expressly provides that the mortgaged property shall be foreclosed, judicially or extra judicially, upon failure to satisfy the debt, and that TCLC, the mortgagee, is appointed as attorney-in-fact of Spouses Villanueva, the mortgagors, *to do any legal action as may be necessary to satisfy the mortgage debt. *

Question 52

What does “to take any legal action as may be necessary to satisfy the mortgage debt” means?

Answer 52

The provision is customary in mortgage contracts, and is in conformity with the principle that when the principal obligation becomes due, the things in which the mortgage consists may be alienated for the payment to the creditor.

Question 53

What is the obligations of parties arising in a contract?

Answer 53

It is basic that obligations arising from contracts have the force of law between the parties and should be complied with in good faith.

The stipulations are binding between the contracting parties unless they are contrary to law, morals, good customs, public order or public policy.

Question 54

What is a Contract of Adhesion?

Answer 54

A Contract of adhesion is one which imposes a ready-made contract to the other whose sole participation is either to accept or reject the agreement.

The parties do not bargain on equal footing in the execution of this kind of contract given that the debtor is limited “to take it or leave it” option and there is no room for negotiation.

However, such contract is not entirely prohibited. The one adhering is free to give his consent inasmuch as he is also free to reject it completely.

Question 54

What is “blanket mortgage clause” or “dragnet clause” ?

Answer 54

subsumes all debts of past or future origins[34] and makes additional funds available to a borrower without the need to execute separate security documents, thus, saving time, costs, and other resources.

Jurisprudence recognizes the validity of this clause but its terms must still be judiciously examined.

Question 55

Can Real Estate Mortgage (REM) secure future loans or advancements?

Answer 55

While a REM may exceptionally secure future loans or advancements, these future debts must be *specifically described or must come *fairly within the terms of the mortgage contract.

A mortgage containing a dragnet clause will not be extended to cover future advances, unless the document evidencing the subsequent advance refers to the mortgage as providing security therefor, or unless there are clear and supportive evidence to the contrary.

(QUIAMBAO, PETITIONER, VS. CHINA BANK G.R. No. 238462, May 12, 2021)

Question 56

How are impugned contracts treated ?

Answer 56

The validity or enforceability of the impugned contracts will have to be determined by the peculiar circumstances obtaining in each case and the situation of the parties concerned.

(QUIAMBAO, PETITIONER, VS. CHINA BANK G.R. No. 238462, May 12, 2021)

Question 57

How are Contract of Adhesion treated?

Answer 57

The stringent treatment towards a contract of adhesion is pursuant to the mandate that in all contractual, property, or other relations, when one of the parties is at a disadvantage on account of his moral dependence, ignorance, indigence, mental weakness, tender age or other handicap, the courts must be vigilant for his protection.

Question 58

When can the written instrument ordered reformed?

Answer 58

Equity orders the reformation of a written instrument when the real intention of the contracting parties are not expressed by reason of mistake, fraud, inequitable conduct or accident.

Art. 1359. When, there having been a meeting of the minds of the parties to a contract, their true intention is not expressed in the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed.

Question 59

When will an action for reformation of instrument prosper ?

Answer 59

Aan action for reformation of instrument may prosper only upon the concurrence of the following requisites: (1) there must have been a meeting of the minds of the parties to the contract; (2) the instrument does not express the true intention of the parties; and
(3) the failure of the instrument to express the true intention of the parties is due to mistake, fraud, inequitable conduct or accident.

Question 60

Who has the burden of proof that a contract must be reformed?

Answer 60

The onus probandi is upon the party who insists that the contract should be reformed.

Question 61

What is the prescriptive period for actions based upon a written contract and for reformation of an instrument?

Answer 61

A suit for reformation of an instrument may be barred by lapse of time.

The prescriptive period for actions based upon a written contract and for reformation of an instrument is ten years.

Question 62

When is prescription of actions is interrupted?

Answer 62

The prescription of actions is interrupted when they are filed before the court, when there is a written extrajudicial demand by the creditors, and when there is any written acknowledgment of the debt by the debtor.

Question 63

What is the effect of interruption in the prescriptive period of actions?

Answer 63

The effect of interruption is to renew the obligation and to make the full period of prescription run again.

Interruption should not be equated with suspension where the past period is included in the computation being added to the period after prescription is resumed.[3

Question 64

When shall the 30-day written notice requirement regarding the right of legal pre-emption or redemption?

Answer 64

ARTICLE 1623. The right of legal pre-emption or redemption shall not be exercised except within thirty days from the notice in writing by the prospective vendor, or by the vendor, as the case may be.

Question 65

What is the nature of written notice in the right of legal redemption or pre-emption?

Answer 65

The required written notice by the seller is mandatory and indispensable for the 30-day redemption period to commence.

With regard to the written notice, such notice is indispensable, and that, in view of the terms in which Article 1623 of the Philippine Civil Code is couched, mere knowledge of the sale, acquired in some other manner by the redemptioner, does not satisfy the statute.

Question 66

Is actual knowledge sufficient in the right of legal redemption or pre-emption?

Answer 66

Despite actual knowledge, the person having the right to redeem is STILL entitled to the written notice.

The written notice from the seller remains to be an indispensable requirement to commence the running of the 30-day redemption period.

Question 67

When is the explicit requirement of written notice in the right of legal redemption or pre-emption may be dispensed with?

Answer 67

The explicit requirement of written notice may only be dispensed with upon a showing that the co-owners already had sufficient knowledge of the sale and they were guilty of laches in the exercise of their redemption right.

Question 68

Is it necessary to pinpoint when is the precise date of the 30-day period supposed to begin?

Answer 68

Considering the shortness of the period [of redemption], it is really necessary, as a general rule, to pinpoint the precise date [the 30-day period] is supposed to begin to obviate any problem of alleged delays, sometimes consisting of only a day or two.

In the case of Rama vs. Nogra, the 30-day redemption period under Article 1623 should be reckoned from Hermelina’s receipt of the Deed of Absolute Sale on September 26, 2007. Hermelina, therefore, validly exercised and enforced her right by filing the complaint for redemption on October 16, 2007, which is within the 30-day period under Article 1623.

Question 69

What are the requisites of the Doctrine of Mortgagee in Good Faith?

Answer 69

The doctrine applies when the following requisites concur, namely:
(a) the mortgagor is not the rightful owner of, or does not have valid title to, the property;
(b) the mortgagor succeeded in obtaining a Torrens title over the property;
(c) the mortgagor succeeded in mortgaging the property to another person;
(d) the mortgagee relied on what appears on the title and there exists no facts and circumstances that would compel a reasonably cautious man to inquire into the status of the property; and
(e) the mortgage contract was registered.

Question 70

Does a a subsequent lien or encumbrance annotated at the back of a certificate of title of a foreclosed property affects the rights of a purchaser in a foreclosure sale?

Answer 70

Jurisprudence dictates that a subsequent lien or encumbrance annotated at the back of a certificate of title of a foreclosed property will NOT affect the rights of a purchaser in a foreclosure sale
**because such sale retroacts to the date of the registration of the mortgage, making the sale prior in time to the lien or encumbrance.

The foreclosure sale retroacts to the date of registration of the mortgage because it is incidental to the fulfilment of the mortgagor’s obligation in the mortgage contract upon his default. In turn, the purchaser in a foreclosure sale essentially derives his right from the previously registered mortgage

Question 71

Does the nullity of the mortgagor’s certificate of title carry with it the nullity of a registered mortgage?

Answer 71

No. The nullity of the mortgagor’s certificate of title does NOT automatically carry with it the nullity of a registered mortgage if the mortgagee acted in good faith.

Question 72

Can the adverse claim, which was annotated AFTER the registered mortgage prevail over rights as mortgagees in good faith?

Answer 72

No. The adverse claim, which was annotated AFTER the registered mortgage cannot prevail over rights as mortgagees in good faith. Being mortgagees in good faith, they have a superior lien over the party who has adverse claim, and their right to foreclose is reserved.

(Jimenez vs Registrar
G.R. No. 228011, February 10, 2021)

Question 73

Does the nullity of a mortgage invalidate the loan?

Answer 73

The nullity of a mortgage does not invalidate the loan. The liability on the principal contract of the loan subsists notwithstanding the illegality of the mortgage.

That obligation matures and becomes demandable in accordance with the stipulation pertaining to it. Under the foregoing circumstances, what is lost is merely the right to foreclose the mortgage as a special remedy for satisfying or settling the indebtedness which is the principal obligation.

In case of nullity, the mortgage deed remains as evidence or proof of a personal obligation of the debtor and the amount due to the creditor may be enforced in an ordinary action.

Question 74

What is the nature of a Mortgage?

Answer 74

A mortgage is merely an accessory agreement and does not affect the principal contract of loan. The mortgages, while void, can still be considered as instruments evidencing the indebtedness.

(Strongfort vs Banta GR 222369 and 222502)

Question 75

What is the nature of a compromise agreement?

Answer 75

It is in the nature of a contract and a judgment on the merits.

It is settled that a compromise agreement, once stamped with judicial
imprimatur, becomes more than a mere contract and acquires the force and
effect of a judgment that is immediately final and executory.

Question 76

As a contract, on what grounds can compromise agreement be avoided?

Answer 76

As a contract, the compromise
agreement can only be avoided on grounds of
*illegality,
*lack of consent, f
*Fraud or
*duress

Question 77

What are the elements of res judicata?

Answer 77

The elements
of res judicata are:

(1) the judgment sought to bar the new action must be final;
(2) the decision must have been rendered by a court having jurisdiction
over the subject matter and the parties;
(3) the disposition of the case must be a judgment on the merits; and
( 4) there must be as between the first and second action, identity of parties, subject matter, and causes of action.

Question 78

What is the best evidence to prove the existence of a partnership?

Answer 78

The best evidence to prove the existence of a partnership is the contract or articles of partnership. Nevertheless, in its absence, its existence can be established by circumstantial evidence.

Under Article 1769 of the Civil Code, “the receipt by a person of a share of the profits of a business is a prima facie evidence that he is a partner in the business, [but] no such inference shall be drawn if such profits were received in payment as wages of an employee [or rent to a landlord].”

Question 79

How is the existence of a partnership established?

Answer 79

The existence of a partnership is established when it is shown that:
(1) two or more persons bind themselves to contribute money, property, or industry to a common fund; and
(2) they intend to divide the profits among themselves.

Generally, it is not required that the agreement be in writing or in a public instrument.

However, when immovable properties or real rights are contributed to the partnership, it is required that an inventory of the real properties or rights contributed be prepared and signed by the parties, and attached to the public instrument, otherwise, the agreement is void.