Sales & Lease thing leased but the lessee shall have a direct action

against the intruder.

1. A contract of lease is consensual, nominate, bilateral,
onerous, commutative, and remuneratory. FALSE. The FALSE. Art. 1664: The lessor is not obliged to answer for a
contract of lease is principal NOT remuneratory. (De Leon) mere act of trespass which a third person may cause on the
use of the thing leased; but the lessee shall have a direct
2. A lease of professional services may be implied action against the intruder.
because no specific form is required. TRUE. The Civil
Code accommodates unwritten lease agreements (Automat 16. When the lessor repairs the thing leased but the
Realty and Dev't Corp versus De la Cruz) lessee is not satisfied, the latter may suspend the
payment of rent.
3. In lease of work, the lessee becomes the agent of the
lessor but only with respect to the particular work FALSE. Art. 1658: The lessee may suspend the payment of
performed. FALSE. Art. 1644 the relation of principal and the rent in case the lessor fails to make the necessary
agent does not exist between them. repairs or to maintain the lessee in peaceful and adequate
enjoyment of the property leased.
4. In a contract of lease, the term "price certain" must
be in money or its equivalent. FALSE. A price certain 17.
exists when the same can be ascertained according to the
customs and usage of the place. 18-19. warranties in contract of lease:
1. Lessors right to lease the thing
5. A contract of lease for 99 years is void. -- FALSE. 2. Lessee shall enjoy legal and peaceful possession;
Under Article 1643, no lease for more than 99 years shall 3. Fit for use
be valid. 4. Free from hidden fault or defect

6. Exceptionally, a portion of the town plaza which is 20. If the lessor sells the leased property to a 3rd party
property for public use may be the object of lease. -- in violation of if the right of 1st refusal given to the
FALSE, pero paki-sure wala ako mahanap na exception lessee, the contract is rescissible regardless of the good
faith of the buyer. FALSE. Rescissible only when in bad
7. The period in a contract of lease for services may be faith.
definite or indefinite. False. Indefinite period Applicable
only to lease of things see 1682 and 1687. 21. The lessor has a subrogatory right against a sub-
lessee for unpaid rent. False. Under Art. 1652, the
8-12. Enumerate 5 persons who are disqualified to sublessee is subdiarily liable to the lessor for unpaid rent
become lessees due from the lessee but the lessor cannot be subrogated in
Article 1491: the rights of the sublessor to demand payment of unpaid
A. G u a r d i a n w r e s p e c t t o p r o p e r t y u n d e r rentals due from the sublessee as the contract of sublease is
guardianship an independent, separate and distinct contract from the
B. Agents, the property whose administration or sale original contract of lease.
may have been entrusted to them, unless with
consent 22-24. Article 1654. The lessor is obliged:
C. Executors or administrators of the estate (1) To deliver the thing which is the object of the
D. Public officers and employees the admin of such contract in such a condition as to render it fit for
property is entrusted to them the use intended;
E. Justices judges prosecutors of property in (2) To make on the same during the lease all the
litigation before their court necessary repairs in order to keep it suitable for
the use to which it has been devoted, unless there
13. Persons enumerated in art. 1491 are prohibited is a stipulation to the contrary;
from entering into the contract of lease of service. False. (3) To maintain the lessee in the peaceful and
Art. 1646 they are only disqualified to become lessees of adequate enjoyment of the lease for the entire
the things mentioned in 1491 duration of the contract.

14. A right may also be the object of a contract of lease 25- 28. (4) Obligation of a Lessee: Article 1657. The
and the compensation is referred to as royalty. True. But lessee is obliged:
not sure (1) To pay the price of the lease according to the
terms stipulated;
15. The lessor is obliged to answer even for a mere act of (2) To use the thing leased as a diligent father of a
trespass which a third party may cause on the use of the family, devoting it to the use stipulated; and in the

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 absence of stipulation, to that which may be maintain the lessee in peaceful and adequate
inferred from the nature of the thing leased, enjoyment of the property leased
according to the custom of the place; 6. To terminate the lease if the leased dwelling or
(3) To pay expenses for the deed of lease. building intended for habitation is in such a
(4) The lessee is obliged to bring to the knowledge of condition that its use brings imminent and serious
the proprietor, within the shortest possible time, danger to his life or health or uninhabitable
every usurpation or untoward act which any third 7. To ask for proportional reduction of the rent if the
person may have committed or may be openly urgent repairs being made by the lessor will last
preparing to carry out upon the thing leased. for more than 40 days.
(article 1663)
37-40. Give 4 grounds for the ejectment of the lessee.
29. A lease extendible by mutual agreement would Article 1673
simply amount to a right of first refusal in favor of the 1. Expiration of period agreed upon or the period
lessee so that even if a third party would offer a higher under Art. 1682 and 1687 of the Civil Code
rent, the lease in favor of the first lessee will not be 2. Non-payment of the rentals agreed upon
extended unless he can match the offer. True. 3. Violation of any of the conditions agreed upon in
the contract
In an option to renew, where the clause does not stipulate 4. Improper use or enjoyment by the lessee of the
the rental for the renewal period, the clause constitutes an thing leased
"agreement to agree" and is unenforceable. The right of
first refusal, however, does not require rental to be 41. The destruction of the thing by fortuitous event
stipulated in the renewal clause. The grantor of such a right obligates the lessor to rebuild the thing leased.
of first refusal cannot be compelled to renew the lease but,
on expiry or termination of the current lease, he may not FALSE. Art. 1655. If totally destroyed by fortuitous event,
lease the property to any third party without first offering the lease is extinguished. If partial, lessor may choose
the property to let by the existing tenant who holds the between proportional reduction of the rent or rescission of
right of first refusal. This right exists even where rental is the lease.
not stipulated in the renewal clause.
42. Failure to pay rentals makes possession unlawful.
30. A contract for the lease of a vibrator is personal in False. Mere failure to pay rentals does not make the
character and is therefore terminated by the death of possession unlawful unless coupled with a refusal on the
the lessee.True? part of the lessor to pay after lawful demand

31. An implied new lease may result even if there is an 43. A provision in a contract of lease that improvements
express stipulation to the contrary - FALSE, there can be introduced by the lessee will accrue to the lessor upon
no implied renewal of the lease where the parties stipulated termination of the lease shall be governed by the rules
that there would be no renewal by implication (Ramon on sale of property. FALSE. No need to apply rules on
magsaysay award foundation v. ca) sale of property. It is a valid stipulation which binds the
parties and is the law between them.
32. An implied new lease is for the same period as the
original lease but a guaranty executed by a third person 44. The lessor may terminate the lease when the rentals
in favor of the lessor shall cease with respect to the new are not paid without the need of court action. TRUE.
lease. FALSE, instead of the original period, the period of The parties can stipulate that there can be extrajudicial
the new lease will be according to the character of the ejectment if there would be non-payment of rentals.
property and the mode of payment of the rent art. 1670,
1682, 1687 45. A contract of sale entered into in violation of the
right of first refusal is valid. – TRUE
33-36. Enumerate 4 rights of a lessee.
1. To demand delivery of the thing leased 46. The lessee in a lease of rural lands has a right to
2. To be in peaceful and adequate enjoyment of the reduction of rental on account of sterility of land and
lease for the entire duration of the contract for loss of fruits due to extraordinary and unforeseen
3. To sub-lease the property unless there is a event. -- FALSE. Article 1680:
stipulation to the contrary.
4. To choose between proportional reduction of rent The lessee shall have no right to a reduction of the rent on
and rescission of the lease if the thing is partially account of the sterility of the land leased, or by reason of
destroyed by fortuitous event the loss of fruits due to ordinary fortuitous events; but he
5. To suspend the payment of the rent in case the shall have such right in case of the loss of more than one-
lessor fails to make the necessary repairs or to half of the fruits through extraordinary and unforeseen

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fortuitous events, save always when there is a specific 55. In order to bind third persons to a trust, the same
stipulation to the contrary. must be in a public instrument.

47. A provision in a contract of lease that all FALSE. “To affect third persons, a trust concerning an
improvements introduced by the lessee will accrue to immovable or any interest therein must be embodied in a
the benefit of the lessor without reimbursement is not public instrument and registered in the Registry of
valid. Property. An express trust over personal property or any
interest therein, and an implied trust, whether the property
False. This stipulation, not being contrary to law, morals, subject to the trust is real or personal, may be proved by
public order or public policy, binds the parties and is the oral evidence.” (De Leon, pp. 631-632)
law between them (Lhuiller v. CA G.R. 128058, Dec 9,
2000) 56. The statute of limitations applies to express trusts.

48. The lease of a determinate time ceases upon the day FALSE. Express trusts do not prescribe as long as they
fixed without the need of a demand. have not been repudiated. In the express trust, there is a
promise or a fiduciary relation, hence the pos- session of
True. Art. 1669. If the lease was made for a determinate the trustee is not adverse until and unless the beneficiary is
time, it ceases upon the day fixed, without the need of a made aware that the trust has been repudiated. (Paras, p.
demand. 915, citing Diaz v. Garricho [L-11229, March 20, 1958])

49. In an express trust, acceptance by the trustee is 57.

necessary for the creation of the trust.
A: Wrongness! Article 1445 says that "No trust shall fail 58.
because the trustee appointed declines the designation,
unless the contrary should appear in the instrument 59. No express trusts concerning an immovable or any
constituting the trust." interest therein may be proven by parol evidence.
TRUE. (Art. 1443)
50. Acceptance by the beneficiary is not necessary for
the creation of an express trust. 60. There is a resulting trust when a donation is made to
A: Wrongness again! Article 1446 provides "Acceptance by a person but it appears that although the legal estate is
the beneficiary is necessary. Nevertheless, if the trust transmitted to the donee, he nevertheless is either to
imposes no onerous condition upon the beneficiary, his have no beneficial interest or only a part thereof.
acceptance shall be presumed, if there is no proof to the TRUE. (Art. 1449)
contrary."
61. There is a constructive trust when land passes by
51. A trustor may or may not have the capacity to succession and he causes the legal title to be put in the
transfer the property. FALSE. The trustor must have the name of another. TRUE. Article 1451; Fabian v. Fabian, p.
capacity to dispose the property because the creation of 663, Jurado
trust is an act of disposition of property.
62. There is a constructive trust if the price of the sale of
52. An express trust is created by declaration of the property is loaned or paid by one person for the benefit
trustee that he holds the property in trust. FALSE. of another and the conveyance is made to the lender or
Express trusts are created by direct and positive acts of the payor to secure the payment of the debt. TRUE. Article
parties, by some writing or deed, or will, or by words either 1450; p. 472, Albano
expressly or impliedly evincing an intention to create a
trust. Under Article 1444 of the Civil Code, no particular 63. Laches is a defense in resulting trusts unless the
words are required for the creation of an express trust, it beneficiary had no knowledge of the facts.
being sufficient that a trust is clearly intended.
Answer: TRUE. Laches constitutes a defense to suit to
53. Trusts over real property are enforceable in any declare and enforce an implied trust, and for the purpose of
form. True. No form is required under the law. It may be the rule, express repudiation is not required, unless the
by mere tolerance or may be made orally of in writing. trustee fraudulently and successfully conceals the facts
giving rise to the trust. (54 Am. Jur. 409; Fabian vs. Fabian,
54. The trustee can acquire the trust property by 22 SCRA 231 [1968].)
adverse possession even without repudiation of the
trust. False. The trustee must perform unequivocal acts of Laches constitutes a bar to actions to enforce an implied
repudiation. trust even where there is no repudiation, unless there is
concealment of the fact giving rise to the trust. (Diaz vs.

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Gorricho and Aguado, 103 Phil. 261 [1958]; Heirs of of the trustee and the beneficiary should results in the
Candelaria vs. Romero, 109 Phil. 500 [1960]; Fabian vs. extinguishment of the trust.
Fabian, 22 SCRA 231 [1968].)
70. In an implied trust over a parcel of land, the action
64. In express trusts, the statute of limitations does not to recover must be brought within five years from the
apply to subsisting and continuing trusts, so long as issuance of the title to the property. - False. An action for
there is no denial or repudiation thereof. reconveyance of a parcel of land based on an implied or
constructive trust prescribes in ten years, the point of
Answer: TRUE. While no time limit is imposed for the reference being the date of registration of the deed or the
enforcement of rights under an express trust, prescription date of the issuance of the certificate of title. (Memaid, pg.
may, however, bar a beneficiary's action for recovery, if a 441)
repudiation of the trust is proven by clear and convincing
evidence and made known to the beneficiary. (Secuya vs.
Vda. de Selma, 326 SCRA 244 [2000].) An express trust
does not prescribe except when the trustee repudiates the
trust.

65. An oral trust is sufficient in case of trust over

personalty. TRUE. Express trusts are created by the direct
and positive acts of the parties, by some writing or deed or
will or by words evidencing and intention to create a trust.

66. In case of an impossible trust, the court may

authorize deviation, in the interest of the trust. TRUE
RULE 98 of ROC SECTION 8. Removal or resignation of
trustee. - The proper Court of First Instance may, upon
petition of the parties beneficially interested and after due
notice to the trustee and hearing, remove a trustee if such
removal appears essential in the interests of the petitioners.

67. There is no need for the trustee to render an account

under oath.

False. Under Rule 98, Section 6 of RoC:

"The following conditions shall be deemed to be part of the
bond whether written therein or not;

XXX

(c) That he will render upon oath at least once a year until
his trust is fulfilled, unless he is excused therefrom in any
year by the court, a true account of the property in his
hands and the management and disposition thereof, and
will render such other accounts as the court may order;"

68. The trustor cannot prohibit the alienation for a

period more than 25 years.

True. In the case of Orendain vs. Trusteeship of the Estate

of Doa Margarita Rodriguez (2009), SC ruled that the
perpetual prohibition will only be valid for a period of 20
years. the trust stipulated in the decedent's will prohibiting
perpetual alienation

69. Merger is a mode of extinguishment of an implied or

express trust. - True. Memaid, page 440 says it is true for
an express trust. Nothing said about implied trusts, but I
don't see why it shouldn't also apply. Merger in the rights

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