Making a last will and testament is an important step in estate planning, and it is crucial to know the different types of wills recognized by law. In the Philippines, two types of wills are recognized: notarial wills and holographic wills.

Most people in the Philippines don't give much thought to their estate after they pass. Even when they do, they might not think it's important enough to make out a will. But this isn't the best way to go.

Planning for your own death can be difficult, but it doesn't have to be confusing. Understanding the different types of wills and how to execute them can help ensure that you're able to settle any potential issues with your estate once you pass away.

In this article, I'll explain what a notarial and holographic will is, as well as some legal aspects that you need to know about these convenient forms of estate planning in the Philippines.

Notarial Wills in the Philippines

A notarial will is a will that is executed before a notary public. This type of will is recognized as a formal will and is considered more secure than a holographic will. To make a notarial will in the Philippines, you must follow these steps:

1. Determine your assets and beneficiaries - You must decide which assets you want to distribute and to whom you want to distribute them.

2. Choose an executor - It is important to choose a trustworthy executor who will be responsible for carrying out your wishes.

3. Draft your will - Write down your wishes and instructions for distributing your assets, as well as any specific conditions or limitations you want to impose.

4. Go to a notary public - Bring two witnesses with you, who must attest to your identity and competence to make a will. They should not be related to you by blood or marriage.

5. Sign your will - You, your witnesses, and the notary public will sign your will. The notary public will affix his or her seal and signature to the document.

It is important to note that notarial wills are subject to the formalities required by law, and it is more challenging to challenge a notarial will in court. However, the process of making a notarial will can be more time-consuming and costly.

Holographic Wills in the Philippines

A holographic will is a testament written, dated, and signed in the testator's handwriting which does require a witness but does generally require to be certified by a public official. To make a holographic will in the Philippines, you must follow these steps:

1. Draft your will - Write down your wishes and instructions for distributing your assets, as well as any specific conditions or limitations you want to impose.

2. Sign and date your will - Sign and date your will in your own handwriting.

Holographic wills are less formal than notarial wills, and they are generally easier and less expensive to make. However, they are also more vulnerable to challenges in court, as they are subject to stricter requirements of proof.

Requirements and Validity of Notarial and Holographic Wills

In the Philippines, notarial and holographic wills are subject to different requirements for validity. A notarial will must be signed in the presence of two witnesses and a notary public, while a holographic will must be entirely in the handwriting of the testator. Notarial wills are generally easier to prove in court, while holographic wills are subject to stricter requirements of proof.

Conclusion

In conclusion, a notarial and holographic will in the Philippines can be invaluable for providing for your family when you're gone. They both offer important benefits such as a guarantee of authenticity and legal advise if needed. However, there are key differences to consider, with notarial wills offering more security although they tend to take longer to register. The right option for you will depend on individual circumstances, but crafting either kind of will is an important step forward in responsible estate planning. So, make sure to seek professional advice if needed and make sure that your wishes will be followed when the time comes!

Real estate transactions in the Philippines are governed by specific laws and regulations that both buyers and sellers need to be aware of. Understanding the legal framework and key considerations is crucial to protect one's rights and interests in any real estate transaction. This blog aims to provide a comprehensive guide for buyers and sellers in navigating the complex landscape of real estate and property law in the Philippines.

Ownership and Title

The Philippines follows the Torrens system of land registration, wherein ownership and title to land are registered with the government. It is important for buyers and sellers to verify the ownership and title of the property they are dealing with to avoid any disputes or issues in the future. Liens, encumbrances, and disputes related to the property should also be carefully examined to ensure a clean and marketable title.

Contract of Sale

The contract of sale is a critical document in real estate transactions as it outlines the terms and conditions of the sale. It is important to include key terms such as the purchase price, mode of payment, and timeline for completion. Thorough review and legal advice should be sought before signing the contract to ensure that the rights and interests of both parties are protected.

Taxes and Fees

Real estate transactions in the Philippines are subject to various taxes and fees, including documentary stamp taxes, capital gains taxes, transfer taxes, and registration fees. Buyers and sellers have specific obligations in terms of proper payment and documentation of these taxes and fees. It is important to be aware of the applicable taxes and fees and ensure compliance with legal requirements.

Zoning and Land Use Regulations

Zoning and land use classification in the Philippines can significantly impact the permitted uses, development potential, and restrictions of a property. Buyers and sellers should understand the zoning and land use regulations in the area where the property is located and verify the permits and clearances required from the local government.

Due Diligence

Conducting thorough due diligence is crucial for buyers to ensure that they are making an informed decision. This may include a physical inspection of the property, verification of documents such as the title, survey plans, and tax declarations, and investigation of any legal or environmental issues that may affect the property. Sellers also have an obligation to provide necessary information and disclosures to potential buyers.

Financing and Mortgages

Understanding mortgage terms and conditions is important for buyers who may require financing to purchase a property. Factors such as interest rates, repayment terms, and consequences of default should be carefully considered. If the property has existing mortgages or liens, it is important to properly discharge or settle them to ensure a clear title.

Dispute Resolution

Disputes may arise in real estate transactions, and it is important to be prepared. Including dispute resolution clauses in the contract of sale can help in resolving disputes in a timely and efficient manner. Mediation, arbitration, or litigation may be options for resolving disputes, and understanding the available mechanisms for dispute resolution is important for both buyers and sellers.

Conclusion

In conclusion, navigating real estate transactions in the Philippines requires a thorough understanding of the legal framework, key considerations, and compliance with legal requirements. Seeking legal advice, conducting due diligence, and being aware of the obligations and responsibilities of both buyers and sellers is essential in protecting one's rights and interests. By being informed and vigilant, buyers and sellers can ensure a smooth and successful real estate transaction in the Philippines.

Do you know what power of attorney is? It gives one or more people the authority to act on behalf of someone else. In the Philippines, there is something called special power of attorney that you should be aware of if you are planning a major transaction.

Most people don't even know about the special power of attorney in the Philippines and what kind of transactions require it. And with all the scams going around, it's hard to tell who to trust when it comes to making important decisions.

In this article, I'll explain the basics behind the Special Power of Attorney and how you can use it in different parts of your life, including business transactions, property transfers, and healthcare decisions.

Definition and Types

A special power of attorney is a legal document that grants a specific authority to another person to act on your behalf. It is different from a general power of attorney, which grants broad authority to act on your behalf in various matters.

In the Philippines, there are different types of special power of attorney, depending on the purpose of the document. Some examples of these types are:

• Real Estate SPA: This type of SPA authorizes another person to act on your behalf in selling or buying a property, or in any real estate transactions.
• Bank SPA: This type of SPA authorizes another person to manage your bank account, perform bank transactions, and sign checks on your behalf.
• Medical SPA: This type of SPA authorizes another person to make medical decisions on your behalf, in case you are unable to do so.
• Legal SPA: This type of SPA authorizes another person to act on your behalf in legal matters, such as filing a lawsuit, settling a legal dispute, or signing legal documents.

Requirements

To make a valid special power of attorney in the Philippines, certain requirements must be met. The following are some of the key requirements:

• The person making the SPA must have the legal capacity to do so.
• The SPA must be in writing, and it must clearly state the authority granted to the person acting on your behalf.
• The SPA must be signed by the person making it, and by the person authorized to act on their behalf.
• The SPA must be notarized, and it must comply with the legal formalities required by law.
• The SPA must be registered with the appropriate government agency, depending on the type of SPA.

Fees

The cost of a special power of attorney in the Philippines may vary depending on various factors such as the complexity of the document, the purpose of the SPA, the lawyer's fees, and the notarization and registration fees. The fees may also vary depending on the location and the lawyer's experience. It can cost from P400 to P1,500.

It is recommended to consult with a lawyer to discuss the specific requirements and costs for creating a special power of attorney tailored to your specific needs.

Uses

A special power of attorney has many uses in the Philippines, and it can be used for various purposes, such as:

• Real estate transactions: A real estate SPA is commonly used in the Philippines for buying or selling properties, and for other real estate transactions.
• Banking and financial transactions: A bank SPA is used to manage bank accounts, perform bank transactions, and sign checks on behalf of the person making the SPA.
• Legal and medical decisions: A legal or medical SPA is used to authorize another person to act on your behalf in legal or medical matters.

Cancellation of a Special Power of Attorney in the Philippines.

A special power of attorney can be revoked by the person making it, either by executing a new SPA that revokes the previous one or by sending a written notice of revocation to the person authorized to act on their behalf. The revocation takes effect once the authorized person receives the notice of revocation.

Conclusion

In conclusion, when it comes to the special power of attorney in the Philippines, there are a few important steps that need to be taken. From appointing an attorney-in-fact to having all documents drafted and notarized, getting special power of attorney taken care of can be a bit overwhelming.

However, by taking the time to understand the process and do your due diligence, you can successfully obtain the legal authority necessary to delegate tasks and manage investments on behalf of someone else. With clear expectations and understanding from both parties, special power of attorney has the potential to be a beneficial tool for those in need.

A contract is already a proof that two or more persons have entered an agreement. However, there are instances when a written contract is not enough to determine one's sincerity in fulfilling what has been agreed on. An earnest money or "arras" is usually given by the prospective buyer to the seller. This is to show that the buyer is interested in purchasing the property. The main purpose of the earnest money is to bind the bargain. It is also considered as part of the purchase price and will be deducted from the total price. Once the earnest money is given to the seller, it will perfect the contract of sale. A payment will only be considered an earnest money if it constitutes as part of the purchase price. The money will be refunded if the sale did not push through. 

Here is a scenario of how an earnest money is determined:

On March 28, 1990, respondent, through his counsel Atty. Ponciano Espiritu, wrote petitioners informing them of his readiness to pay the balance of the contract price and requesting them to prepare the final deed of sale.[3]

On April 4, 1990, petitioners, through Atty. Ruben V. Lopez, sent a letter[4] to respondent stating that petitioner Amparo Herrera is leaving for abroad on or before April 15, 1990 and that they are canceling the transaction. Petitioners also informed respondent that he can recover the earnest money of P100,000.00 anytime.

Again, on April 6, 1990,[5] petitioners wrote respondent stating that they delivered to his counsel Philippine National Bank Managers Check No. 790537 dated April 6, 1990 in the amount of P100,000.00 payable to him.

In view of the cancellation of the contract by petitioners, respondent filed with the Regional Trial Court, Branch 63, Makati City a complaint against them for specific performance and damages, docketed as Civil Case No. 90-1067.[6]

On June 27, 1994, after hearing, the trial court rendered its Decision[7] finding there was a perfected contract of sale between the parties and ordering petitioners to execute a final deed of sale in favor of respondent. The trial court held:

x x x

In the evaluation of the evidence presented by the parties as to the issue as to who was ready to comply with his obligation on the verbal agreement to sell on March 23, 1990, shows that plaintiffs position deserves more weight and credibility. First, the P100,000.00 that plaintiff paid whether as downpayment or earnest money showed that there was already a perfected contract. Art. 1482 of the Civil Code of the Philippines, reads as follows, to wit:

Art. 1482. Whenever earnest money is given in a contract of sale, it shall be considered as part of the price and as proof of the perfection of the contract.

Second, plaintiff was the first to react to show his eagerness to push through with the sale by sending defendants the letter dated March 25, 1990. (Exh. D) and reiterated the same intent to pursue the sale in a letter dated April 6, 1990. Third, plaintiff had the balance of the purchase price ready for payment (Exh. C). Defendants mere allegation that it was plaintiff who did not appear on March 23, 1990 is unavailing. Defendants letters (Exhs. 2 and 5) appear to be mere afterthought.

In times of financial difficulties, we turn to our relatives, friends and even colleagues for assistance. Once they extend a loan, we agree to pay the money we borrowed within the agreed period. If we borrow a large amount of money, a written agreement is created to ensure that money will be collected. However, not all of us can meet our payment obligations. Once we fail to pay, within the period agreed upon, the lender will be forced to impose penalties. When it comes to the lender's right to demand payment, it is essential to keep the prescriptive period into consideration. 

The New Civil Code of the Philippines states that:

“Art. 1144. The following actions must be brought within 10 years from the time the right of action accrues:

(1) Upon a written contract;

(2) Upon an obligation created by law;

(3) Upon a judgment.”

Art. 1423. Obligations are civil or natural. Civil obligations give a right of action to compel their performance. Natural obligations, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof. Some natural obligations are set forth in the following articles.

A written agreement serves as evidence of the lender's right to demand payment. If the debtor fails to pay the debt within one year as agreed upon, it is imperative for lenders to put pressure on the debtor to make a payment. 

Article 1155 of the New Civil Code of the Philippines also states that, "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."

Contracts are often so complex that all parties involved in signing them are caught in an endless disagreement. There are many reasons problems arise when you bind yourself into a contract. For one, it is possible for one party to have ulterior motives in creating a contract. Sometimes, the conditions are not properly performed and it will take some sort of judicial relief to resolve the problem. When transactions are found to be fraudulent, the process of putting things in proper legal perspectives seems like a tiring task. Just when you think you got things figured out, you will be confronted by legalities. Since ignorance of the law excuses no one, it is essential to know when a contract can be considered fraudulent. If the following warning signs are present, you know you are not getting a fair bargain. 

Art. 1339. Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations, constitutes fraud. (n)

Art. 1340. The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves fraudulent. (n)

Art. 1341. A mere expression of an opinion does not signify fraud, unless made by an expert and the other party has relied on the former's special knowledge. (n)

Art. 1342. Misrepresentation by a third person does not vitiate consent, unless such misrepresentation has created substantial mistake and the same is mutual. (n)

Art. 1343. Misrepresentation made in good faith is not fraudulent but may constitute error. (n)

Art. 1344. In order that fraud may make a contract voidable, it should be serious and should not have been employed by both contracting parties.

Incidental fraud only obliges the person employing it to pay damages. (1270)

Art. 1345. Simulation of a contract may be absolute or relative. The former takes place when the parties do not intend to be bound at all; the latter, when the parties conceal their true agreement. (n)

Art. 1346. An absolutely simulated or fictitious contract is void. A relative simulation, when it does not prejudice a third person and is not intended for any purpose contrary to law, morals, good customs, public order or public policy binds the parties to their real agreement. (n)

Before you agree to sign a contract, you have to make sure that you can fulfill or perform the obligations. Many individuals have found themselves breaching a contract because of not thoroughly reading the terms and conditions. It is important to remember that the obligations bind two or more parties. There are two kinds of obligations: pure and conditional.  What is the difference between these two obligations?

DIFFERENT KINDS OF OBLIGATIONS

SECTION 1. - Pure and Conditional Obligations

Art. 1179. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once.

Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event. (1113)

Art. 1180. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period, subject to the provisions of Article 1197. (n)

Art. 1181. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition. (1114)

Art. 1182. When the fulfillment of the condition depends upon the sole will of the debtor, the conditional obligation shall be void. If it depends upon chance or upon the will of a third person, the obligation shall take effect in conformity with the provisions of this Code. (1115)

Art. 1183. Impossible conditions, those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the impossible or unlawful condition shall be valid.

The condition not to do an impossible thing shall be considered as not having been agreed upon. (1116a)

Art. 1184. The condition that some event happen at a determinate time shall extinguish the obligation as soon as the time expires or if it has become indubitable that the event will not take place. (1117)

Art. 1185. The condition that some event will not happen at a determinate time shall render the obligation effective from the moment the time indicated has elapsed, or if it has become evident that the event cannot occur.

If no time has been fixed, the condition shall be deemed fulfilled at such time as may have probably been contemplated, bearing in mind the nature of the obligation. (1118)

Art. 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment. (1119)

Art. 1187. The effects of a conditional obligation to give, once the condition has been fulfilled, shall retroact to the day of the constitution of the obligation. Nevertheless, when the obligation imposes reciprocal prestations upon the parties, the fruits and interests during the pendency of the condition shall be deemed to have been mutually compensated. If the obligation is unilateral, the debtor shall appropriate the fruits and interests received, unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting the same was different.

In obligations to do and not to do, the courts shall determine, in each case, the retroactive effect of the condition that has been complied with. (1120)

Art. 1188. The creditor may, before the fulfillment of the condition, bring the appropriate actions for the preservation of his right.

The debtor may recover what during the same time he has paid by mistake in case of a suspensive condition. (1121a)

Art. 1189. When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give, the following rules shall be observed in case of the improvement, loss or deterioration of the thing during the pendency of the condition:

(1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished;

(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered;

(3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor;

(4) If it deteriorates through the fault of the debtor, the creditor may choose between the rescission of the obligation and its fulfillment, with indemnity for damages in either case;

(5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the creditor;

(6) If it is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary. (1122)

Art. 1190. When the conditions have for their purpose the extinguishment of an obligation to give, the parties, upon the fulfillment of said conditions, shall return to each other what they have received.

In case of the loss, deterioration or improvement of the thing, the provisions which, with respect to the debtor, are laid down in the preceding article shall be applied to the party who is bound to return.

As for the obligations to do and not to do, the provisions of the second paragraph of Article 1187 shall be observed as regards the effect of the extinguishment of the obligation. (1123)

Art. 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him.

The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible.

The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.

This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with Articles 1385 and 1388 and the Mortgage Law. (1124)

Art. 1192. In case both parties have committed a breach of the obligation, the liability of the first infractor shall be equitably tempered by the courts. If it cannot be determined which of the parties first violated the contract, the same shall be deemed extinguished, and each shall bear his own damages. (n)

There are many things that encompass obligations such as an obligation to provide basic needs to children, deliver goods and services, perform agreements stated on the contract and many others. When these obligations are not fulfilled, the burden will be on the individual who made a promise. Avoiding these obligations have legal implications according to the provisions of Chapter 2 of the Civil Code of the Philippines. 

NATURE AND EFFECT OF OBLIGATIONS

Art. 1163. Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care. (1094a)

Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. (1095)

Art. 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by Article 1170, may compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery. (1096)

Art. 1166. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned. (1097a)

Art. 1167. If a person obliged to do something fails to do it, the same shall be executed at his cost.

This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone. (1098)

Art. 1168. When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense. (1099a)

Art. 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation.

However, the demand by the creditor shall not be necessary in order that delay may exist:

(1) When the obligation or the law expressly so declare; or

(2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the contract; or

(3) When demand would be useless, as when the obligor has rendered it beyond his power to perform.

In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins. (1100a)

Art. 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. (1101)

Art. 1171. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a)

Art. 1172. Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances. (1103)

Art. 1173. The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. When negligence shows bad faith, the provisions of Articles 1171 and 2201, paragraph 2, shall apply.

If the law or contract does not state the diligence which is to be observed in the performance, that which is expected of a good father of a family shall be required. (1104a)

Art. 1174. Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen, were inevitable. (1105a)

Art. 1175. Usurious transactions shall be governed by special laws. (n)

Art. 1176. The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid.

The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid. (1110a)

Art. 1177. The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn the acts which the debtor may have done to defraud them. (1111)

Art. 1178. Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the contrary. (1112) 

In real estate, lease contract is considered as the most important legal form because it legally binds two or more parties often referred to as the landlord and tenant. The lease contract contains rental agreement, which specifies the tenant's right to live and the landlord's right to retain ownership. The contract protects both parties. For instance, if a tenant decides to move, a letter of cancellation must be provided to the landlord one month in advance to give ample time to find new occupants. 

 

LEASE CONTRACT

 

 

KNOW ALL MEN BY THESE PRESENTS:

 

This CONTRACT OF LEASE is made and executed at the City of _____, this day of _______________, 20__, by and between:

 

        (NAME OF LESSOR), of legal age, single/married to (Name of spouse if any),   Filipino, and with residence and postal address at (Address), hereinafter referred to as the LESSOR.

 

-AND-

 

        (NAME OF LESSEE), Filipino and with residence and postal address at (Address), hereinafter referred to as the LESSEE.

 

WITNESSETH; That

 

WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a residential property situated at (Address of property to be leased);

 

WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE and the LESSEE is willing to lease the same;

 

NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to the following: 

 

TERMS AND CONDITIONS

 

1. PURPOSES:   That premises hereby leased shall be used exclusively by the LESSEE for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are used for other purposes, the LESSOR shall have the right to rescind this contract without prejudice to its other rights under the law.

 

2. TERM:  This term of lease is for ONE (1) YEAR. from (Date) to (Date) inclusive. Upon its expiration, this lease may be renewed under such terms and conditions as my be mutually agreed upon by both parties,  written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7) days prior to the expiry date of the period herein agreed upon.

 

3. RENTAL RATE:   The monthly rental rate for the leased premises shall be in PESOS: AMOUNT IN WORDS (P 00,000.00), Philippine Currency. All rental payments shall be payable to the LESSOR.

 

4. DEPOSIT:   That the LESSEE shall deposit to the LESSOR upon signing of this contract and prior to move-in an amount equivalent to the rent for THREE (3) MONTHS or the sum of  PESOS: AMOUNT IN WORDS (P 00,000.00), Philippine Currency.  wherein the two (2) months deposit shall be applied as rent for the 11th and 12th months and the remaining one (1) month deposit shall answer partially for damages and any other obligations, for utilities such as Water, Electricity, CATV, Telephone, Association Dues or resulting from violation(s) of any of the provision of this contract.

 

5. DEFAULT PAYMENT:  In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of payment for One (1) month and may forfeit whatever rental deposit or advances have been given by the LESSEE.

 

6. SUB-LEASE:   The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be occupied in whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR'S written approval.

7. PUBLIC UTILITIES:   The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, association dues and other public services and utilities during the duration of the lease. 

8. FORCE MAJEURE:   If whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause of acts of God, as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.

9. LESSOR'S RIGHT OF ENTRY:   The LESSOR or its authorized agent shall after giving due notice to the LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to examine the same or make repairs therein or for the operation and maintenance of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem necessary.

10. EXPIRATION OF LEASE:   At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the latter's option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent therefrom at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall have complied with the terms hereof.  The same penalty shall be imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease or termination for any reason whatsoever.

11. JUDICIAL RELIEF:   Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay an amount of One Hundred (100) % of the amount clamed in the complaint as attorney's fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law.

 

12. This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest and assigns.

 

IN WITNESS WHEREOF,  parties herein affixed their signatures on the date and place above written.

 

 

 

(Name of Lessor)                               (Name of Lessee)

LESSOR                                                LESSEE

 

Signed in the presence of:

 

 

_____________________________                  ______________________________

 

ACKNOWLEDGEMENT

 

Republic of the Philippines)

_________________________) S.S

 

BEFORE ME, personally appeared:

 

   Name                                 CTC Number             Date/Place Issued

 

(Name of Lessor)                     10000000           February 24, 20__ / Cavite City

(Name of Lessee)                     10000000           January 07, 20__ / Makati

 

Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.

 

This instrument consisting of ____ page/s, including the page on which this acknowledgement is written, has been signed on each and every page thereof by the concerned parties and their witnesses, and and sealed with my notarial seal.

 

WITNESS MY HAND AND SEAL, on the date and place first above written.

                                                                    

                                                                                                                                                         

Notary Public

 

Doc. No.______;

Page No. ______;

Book No.______;

Series of 20___.

Disagreements between tenants and landlords are very common in the Philippines. This is why both parties are encouraged to negotiate rent before signing a contract.  While the Rental Reform Act of 2002, which has already expired in 2004 protects the rights of landlords, the law also provides heaps of information to tenants to prevent conflicts especially in terms of payment. While the landlord and tenant can negotiate any deposit they want, it is still necessary for both parties to fulfill the agreements or obligations on the contract. A tenant who enters into a lease contract is usually required to deposit worth 2 to 3 months’ rent. After the end of the tenancy, the deposit is returned one month, but the repairs and unpaid bills will be deducted.

Generally, landlords require one month’s advance rental and two months’ deposit. The deposit is often referred to as security deposit because it will be used for paying the rent for the last month of the occupancy. In most cases, landlords are the ones who will shoulder unpaid bills and repairs.

Duration of Contract and Eviction

If the tenant is still occupying the property 15 days after the lease contract has expired, and no notice has been given by either the landlord or the tenant, it is an implication that the contract has been renewed. Lease contracts can either be oral or written. The landlord has the right to eject a tenant due to the following reasons:

•    Subleasing the unit without the landlord’s written consent;
•    Non-payment of rent for three months;
•    Landlord needs property for personal use;
•    Landlord needs to make necessary repairs, but may notify ejected tenant if still interested in renting the same unit.

The lease agreement can be terminated by the tenant at any time and may also withhold rent payments if the landlord has not made any necessary repairs. A notice of 15 days will be given to the tenants if the unit is condemned for demolition. A case must be filed in court for tenant eviction and within 10 days, the landlord can apply for a permit to reclaim the property. Within 30 days, the court makes a decision and order the Court Sheriff to assist the landlord in claiming the property.

If there are problems regarding tenancy agreement, barangay tribunals are the ones who mediate in such problems. However, unresolved landlord-tenant problems are taken to court, but this can be a long and expensive process. A landlord often applies pressure by influencing the police in evicting a tenant.

What are the nature and effects of a contract? Does it necessarily have to be written to support legal disputes in the event one of the agreements has not been performed by the contracting parties? A contract is simply a meeting of minds between two persons. A contract can either be implicitly done or expressly made. Once both parties have entered into an agreement, it is imperative that both are bound to an obligation to fulfil the conditions stipulated on the contract. While a written contract is a concrete evidence of the agreement made by two parties, the real challenge begins with express contracts.

Nature and Effect of Obligations

“ARTICLE 1163. Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care. (1094a)

ARTICLE 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. (1095)

ARTICLE 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by article 1170, may compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery. (1096)

ARTICLE 1166. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned. (1097a)

ARTICLE 1167. If a person obliged to do something fails to do it, the same shall be executed at his cost.
This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone. (1098)

ARTICLE 1168. When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense. (1099a)

ARTICLE 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation.

However, the demand by the creditor shall not be necessary in order that delay may exist:

(1) When the obligation or the law expressly so declare; or

(2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the contract; or

(3) When demand would be useless, as when the obligor has rendered it beyond his power to perform.

In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins. (1100a)

ARTICLE 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. (1101)

ARTICLE 1171. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a)

ARTICLE 1172. Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances. (1103)

ARTICLE 1173. The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. When negligence shows bad faith, the provisions of articles 1171 and 2201, paragraph 2, shall apply.

If the law or contract does not state the diligence which is to be observed in the performance, that which is expected of a good father of a family shall be required. (1104a)

ARTICLE 1174. Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen, were inevitable. (1105a)

ARTICLE 1175. Usurious transactions shall be governed by special laws. (n)

ARTICLE 1176. The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid.

The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid. (1110a)

ARTICLE 1177. The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn the acts which the debtor may have done to defraud them. (1111)

ARTICLE 1178. Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the contrary. (1112)”

People enter into an agreement for various reasons such as buying, selling or rendering services. Contracts contain relevant agreements which both parties should perform. However, there are instances when one of the contracting parties ends up dealing with legal disputes because of one essential element that has been taken for granted: notarization.  Does notarization bear any weight on the contract? While merely signing a contract binds a person into an agreement, a contract that bears the signature of contracting parties may not suffice in spite the presence of consent elements. 

The importance of notarization

Notarization has a legal impact on the contract as it converts a private document to a public instrument. Agreements on the contract are enforceable once the document is notarized because it is a strong proof of the document’s authenticity. However, basic requirements must also be observed in notarizing documents. The document is also rendered admissible in court as tangible evidence once it is notarized. Notarization also prevents fraud among legal documents and contracts. The documents that often require notarization are Power of Attorney, medical documents, sworn statements, affidavits, deeds, wills and trusts.

It is stated under Section 1 of Public Act No. 2103, known as the Notarial Law that, ““An instrument or document shall be considered authentic if the acknowledgment is made before a notary public or an officer duly authorized by law of the country to take acknowledgments of instruments or documents in the place where the act is done. The notary public or the officer taking the acknowledgment shall certify that the person acknowledging the instrument or document is known to him and that he is the same person who executed it, and acknowledged that the same is his free act and deed. The certificate shall be made under his official seal, if he is by law required to keep a seal, and if not, his certificate shall so state.”

The process

1.    The unsigned document must be brought to the notary public. It is important to note that the document must not be signed in advance as the notary public will not entertain signed documents without their presence. Proper identification must be secured to ensure that notary public can verify your identity.  Proofs of identity include TIN, NBI Clearance and SSS ID.

2.    Upon verifying your identity, the notary public will also check your documents. There are instances when notary publics prepare document for you to sign. This step is usually required in the case of affidavits.

3.    Once identification and document are clear, you will be asked to sign the document. You will also be observed if you are signing under duress or if another person is forcing you to sign the document against your will.

4.    You should also have one credible witness who is personally known to either the individual signing the document or the notary public.

5.    The transaction will be recorded on the notary’s journal. The record will show the date, place and other essential details of the transaction.

6.    If the requirements and process have been fulfilled, the notary will stamp the document with an official public seal or stamp to prove that your document is notarized. The payment for notarization will vary from location to location.

Have you ever been told not to sign a contract without taking time to read the terms and conditions? While every contract is created in good faith, there are instances when conditions are not something that every tenant can agree on. Landlords and tenants may have verbal agreements, but these can be reversed in a written contract. Before signing a contract, take time to read the fine print and getting a property lawyer to help you understand the terms and conditions will also be a wise move. A contract is essential for both short-term and long-term rentals. It binds agreements and protects both parties in the event the contract is breached.

Before a tenant can rent a residential property, landlords will require a deposit. This is often referred to as security deposits. In most cases, the rules for security deposits are almost similar in many countries. The tenant is required to pay a fixed amount, which will be used for repairing damages that the tenant incurs. However, the landlord will pay the deposit back if there is no damage to the property.  Unfortunately, there is no way to prove that a tenant has left the property damage-free unless pictures were taken. This is why tenants must make an effort to take pictures when moving in as a way of documenting any damage that is already present prior to occupying the property. You can present the proof once the landlord inspects the rental property.

Aside from deposits, another area of concern for tenants is the security of the rental property. While this can be pretty subjective especially when this is based on the location where the property is situated, a tenant always looks for a property that can ensure their safety. To reduce the chances of being robbed, it is necessary to check the security measures of your prospective rental location. More often than not, condos are equipped with security cameras to closely monitor day-to-day activities.

In the previous years, tenants are protected by Rent Control Act of 2009, but this act has already expired on December 31, 2015.  Reading and understanding the elements of contracts are the tenant's and landlord's line of defense.

Vital Elements Of A Rental Contract

•    Responsible parties. All tenants or lessees must be listed to ensure that all the adult individuals on the contract are jointly liable for breach of contract.

•    Payment and deposit. The contract must also indicate all monetary provisions including the rental amount and the security deposit. The frequency of payment and the acceptable modes of payment must be included.

•    Summary of fees. Other fees must be outlined and the parties responsible for each should also be indicated.

•    Rules, limitations, policies and disclaimers. As a landlord, policies on pets, sub-letting and allowing visitors should be clearly stated. This way, the lessees are not going to feign ignorance in case issues related to rental agreements arise.

Fast food has become a staple diet for busy people especially when time is not enough for food preparation. What could be worse than sinking your teeth into your favorite food, unperturbed to the fact that it is crawling with germs? You have already consumed and digested your meal before discovering that there is an additional “ingredient”, which is, without a doubt, a recipe for disaster. A person will more likely choose to starve to death than eat contaminated food. There have been several complaints about food poisoning and unsafe food handling practices. While some complainants are already well-aware of the steps to take, others still need guidance so their complaints will not end up falling on deaf ears. 

The Republic Act No. 10611 otherwise known as the “Food Safety Act of 2013” strengthens food safety regulatory system in our country. The law provides protection to consumers so they will have access to local foods and food products that have undergone thorough and rigid inspection. 

Under Section 3 of the Republic Act, the objectives are as follows:

“(a) Protect the public from food-borne and water-borne illnesses and unsanitary, unwholesome, misbranded or adulterated foods;

(b) Enhance industry and consumer confidence in the food regulatory system; and

(c) Achieve economic growth and development by promoting fair trade practices and sound regulatory foundation for domestic and international trade.”

The food safety regulatory system combines various processes to ensure that food safety standards are met. Food safety standards refer to the formal documents, which contain the food requirements that the food processors need to comply with so human health is safeguarded. These safety standards are implemented by law and authorities. Some of the processes that are under the regulatory system include inspection, testing, data collection, monitoring and other activities, which are carried out by various food safety regulatory agencies. 

Under Section No. 37, these acts are prohibited:

(a) Produce, handle or manufacture for sale, offer for sale, distribute in commerce, or import into the Philippines any food or food product which is not in conformity with an applicable food quality or safety standard promulgated in accordance with this Act.

(b) Produce, handle or manufacture for sale, offer for sale, distribute in commerce, or import into the Philippines any food or food product which has been declared as banned food product;

(c) Refuse access to pertinent records or entry of inspection officers of the FSRA;

(d) Fail to comply with an order relating to notifications to recall unsafe products;

(e) Adulterate, misbrand, mislabel, falsely advertise any food product which misleads the consumers and carry out any other acts contrary to good manufacturing practices;

(f) Operate a food business without the appropriate authorization;

(g) Connive with food business operators or food inspectors, which will result in food safety risks to the consumers; and

(h) Violate the implementing rules and regulations of this Act

 

Although a contract is just a piece of paper that you sign to seal the deal, you can still end up in court due to misinterpretation. A poorly written contract is not necessarily the reason a person can face a lawsuit. Even if your contract has been prepared by one of the biggest law firms in the country, it is still not immune to criminal charges if the obligations that are stated have not been fulfilled. There are basic elements in a contract, which need to be present before any deals can be made. 

A contract refers to an agreement of two or more contracting parties on a particular venture whereby one person binds himself, with respect to the other, to render services or give something. 

The contract must not be obtained through undue influence, coercion, misrepresentation and fraud. As a general rule, the party who has suffered due to breach of contract can claim money damages from the other. The breaching party will also be ordered by the court to perform obligations that are stipulated in the contract.  

Contracts cannot completed without the following requisites:

(1) Contracting parties' consent; 

(2) subject matter of the contract; and 

(3) the cause of the obligation. 

The Basic Elements of Contracts

Consent

In general, when a consent is given, the contract is considered perfected. It can be deemed an oral contract that binds both contracting parties. One person must have a definite offer and the other must have an absolute acceptance of the offer. 

Object of the Agreement

The subject matter refers to the object of the contract. If a thing is deemed outside the commerce of man, it will not be accepted as the object of the contract. Contracts are made to transfer the rights of property, render services and others. However, the object of the contract must not be contrary to law, good customs, morals and public order. 

Consideration

The cause of the contract will be based on the type of contracts. For instance, onerous contract's cause is the promise of service or thing by the other person. Remunatory contract's cause is the benefit or service, which is being remunerated. For contracts of pure beneficence, the cause is the benefactor's liberality. The cause can only be defined based on the nature of the contract. 

An oral contract may not suffice even if both parties have made an agreement. A written contract is a strong proof that a deal or agreement has been made. It includes the necessary details that can be used in court when the obligations have not been met.