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."

Domestic workers or also referred to as "kasambahay" are very common in a Filipino household. They take care of chores, run errands and look after children when both parents are working. This is why it is only imperative that they get social benefits as no amount of money can repay their dedication, commitment and kindness. The Republic Act of 10361 protects the welfare of domestic workers. Entitlement to social benefits is one of the terms and conditions that the employer should fulfill when hiring domestic workers according to this law. 

EMPLOYMENT – TERMS AND CONDITIONS

SEC. 19. Health and Safety. – The employer shall safeguard the health and safety of the domestic worker in accordance with laws, rules and regulations, with due consideration of the peculiar nature of domestic work.

SEC. 20. Daily Rest Period. – The domestic worker shall be entitled to an aggregate daily rest period of eight (8) hours per day.

SEC. 21. Weekly Rest Period. – The domestic worker shall be entitled to at least twenty-four (24) consecutive hours of rest in a week. The employer and the domestic worker shall agree in writing on the schedule of the weekly rest day of the domestic worker: Provided, That the employer shall respect the preference of the domestic worker as to the weekly rest day when such preference is based on religious grounds. Nothing in this provision shall deprive the domestic worker and the employer from agreeing to the following:

(a) Offsetting a day of absence with a particular rest day;

(b) Waiving a particular rest day in return for an equivalent daily rate of pay;

(c) Accumulating rest days not exceeding five (5) days; or

(d) Other similar arrangements.

SEC. 22. Assignment to Nonhousehold Work. – No domestic worker shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage rate lower than that provided for agricultural or nonagricultural workers. In such cases, the domestic worker shall be paid the applicable minimum wage.

SEC. 23. Extent of Duty. – The domestic worker and the employer may mutually agree for the former to temporarily perform a task that is outside the latter’s household for the benefit of another household. However, any liability that will be incurred by the domestic worker on account of such arrangement shall be borne by the original employer. In addition, such work performed outside the household shall entitle the domestic worker to an additional payment of not less than the existing minimum wage rate of a domestic worker. It shall be unlawful for the original employer to charge any amount from the said household where the service of the domestic worker was temporarily performed.

SEC 24. Minimum Wage. – The minimum wage of domestic workers shall not be less than the following:

(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National Capital Region (NCR);

(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first class municipalities; and

(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other municipalities.

After one (1) year from the effectivity of this Act, and periodically thereafter, the Regional Tripartite and Productivity Wage Boards (RTPWBs) shall review, and if proper, determine and adjust the minimum wage rates of domestic workers.

SEC 25. Payment of Wages. – Payment of wages shall be made on time directly to the domestic worker to whom they are due in cash at least once a month. The employer, unless allowed by the domestic worker through a written consent, shall make no deductions from the wages other than that which is mandated by law. No employer shall pay the wages of a domestic worker by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than the cash wage as provided for under this Act.

The domestic worker is entitled to a thirteenth month pay as provided for by law.

SEC. 26. Pay Slip. – The employer shall at all times provide the domestic worker with a copy of the pay slip containing the amount paid in cash every pay day, and indicating all deductions made, if any. The copies of the pay slip shall be kept by the employer for a period of three (3) years.

SEC. 27. Prohibition on Interference in the Disposal of Wages. – It shall be unlawful for the employer to interfere with the freedom of any domestic worker to dispose of the latter’s wages. The employer shall not force, compel or oblige the domestic worker to purchase merchandise, commodities or other properties from the employer or from any other person, or otherwise make use of any store or services of such employer or any other person.

SEC 28. Prohibition Against Withholding of Wages. – It shall be unlawful for an employer, directly or indirectly, to withhold the wages of the domestic worker. If the domestic worker leaves without any justifiable reason, any unpaid salary for a period not exceeding fifteen (15) days shall be forfeited. Likewise, the employer shall not induce the domestic worker to give up any part of the wages by force, stealth, intimidation, threat or by any other means whatsoever.

SEC. 29. Leave Benefits. – A domestic worker who has rendered at least one (1) year of service shall be entitled to an annual service incentive leave of five (5) days with pay: Provided, That any unused portion of said annual leave shall not be cumulative or carried over to the succeeding years. Unused leaves shall not be convertible to cash.

SEC. 30. Social and Other Benefits. – A domestic worker who has rendered at least one (1) month of service shall be covered by the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or Pag-IBIG, and shall be entitled to all the benefits in accordance with the pertinent provisions provided by law.

Premium payments or contributions shall be shouldered by the employer. However, if the domestic worker is receiving a wage of Five thousand pesos (P5,000.00) and above per month, the domestic worker shall pay the proportionate share in the premium payments or contributions, as provided by law.

The domestic worker shall be entitled to all other benefits under existing laws.

SEC. 31. Rescue and Rehabilitation of Abused Domestic Workers. – Any abused or exploited domestic worker shall be immediately rescued by a municipal or city social welfare officer or a social welfare officer from the Department of Social Welfare and Development (DSWD) in coordination with the concerned barangay officials. The DSWD and the DILG shall develop a standard operating procedure for the rescue and rehabilitation of abused domestic workers, and in coordination with the DOLE, for possible subsequent job placement.

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)

What happens when a landowner enters into an agreement with another person whereby the landowner disposes of a lot gratuitously? Does the recipient of the lot donation have the right to enforce the verbal agreement despite the absence of proper documents. Article 725 of the New Civil Code considers the donation of an immovable property valid if it is made in a public document. With regard to contracts, Article 1403 of the same code considers the following contract unenforceable:

UNENFORCEABLE CONTRACTS (n)

Art. 1403. The following contracts are unenforceable, unless they are ratified:

(1) Those entered into in the name of another person by one who has been given no authority or legal representation, or who has acted beyond his powers;

(2) Those that do not comply with the Statute of Frauds as set forth in this number. In the following cases an agreement hereafter made shall be unenforceable by action, unless the same, or some note or memorandum, thereof, be in writing, and subscribed by the party charged, or by his agent; evidence, therefore, of the agreement cannot be received without the writing, or a secondary evidence of its contents:

(a) An agreement that by its terms is not to be performed within a year from the making thereof;

(b) A special promise to answer for the debt, default, or miscarriage of another;

(c) An agreement made in consideration of marriage, other than a mutual promise to marry;

(d) An agreement for the sale of goods, chattels or things in action, at a price not less than five hundred pesos, unless the buyer accept and receive part of such goods and chattels, or the evidences, or some of them, of such things in action or pay at the time some part of the purchase money; but when a sale is made by auction and entry is made by the auctioneer in his sales book, at the time of the sale, of the amount and kind of property sold, terms of sale, price, names of the purchasers and person on whose account the sale is made, it is a sufficient memorandum;

(e) An agreement of the leasing for a longer period than one year, or for the sale of real property or of an interest therein;

(f) A representation as to the credit of a third person.

(3) Those where both parties are incapable of giving consent to a contract.

It is also important to note the nature of donations: 

NATURE OF DONATIONS

Art. 725. Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it. (618a)

Art. 726. When a person gives to another a thing or right on account of the latter's merits or of the services rendered by him to the donor, provided they do not constitute a demandable debt, or when the gift imposes upon the donee a burden which is less than the value of the thing given, there is also a donation. (619)

Art. 727. Illegal or impossible conditions in simple and remuneratory donations shall be considered as not imposed. (n)

Art. 728. Donations which are to take effect upon the death of the donor partake of the nature of testamentary provisions, and shall be governed by the rules established in the Title on Succession. (620)

Art. 729. When the donor intends that the donation shall take effect during the lifetime of the donor, though the property shall not be delivered till after the donor's death, this shall be a donation inter vivos. The fruits of the property from the time of the acceptance of the donation, shall pertain to the donee, unless the donor provides otherwise. (n)

Art. 730. The fixing of an event or the imposition of a suspensive condition, which may take place beyond the natural expectation of life of the donor, does not destroy the nature of the act as a donation inter vivos, unless a contrary intention appears. (n)

Art. 731. When a person donates something, subject to the resolutory condition of the donor's survival, there is a donation inter vivos. (n)

Art. 732. Donations which are to take effect inter vivos shall be governed by the general provisions on contracts and obligations in all that is not determined in this Title. (621)

Art. 733. Donations with an onerous cause shall be governed by the rules on contracts and remuneratory donations by the provisions of the present Title as regards that portion which exceeds the value of the burden imposed. (622)

Art. 734. The donation is perfected from the moment the donor knows of the acceptance by the donee. (623) 

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) 

You might have surely heard about horror stories involving house owners and contractors because of expectations that were not met. There are also cases when owners bypass hiring contractors and builders and they end up getting unsatisfactory results. Building a home, without a doubt is no joke because it involves spending your hard-earned money. While you are eager to build your dream home, there are other people who are going to make promises and just break them in the end. You may have already thought about building your dream house on your own. After all, the Internet can guide you in the right direction on the materials you need to buy and the requirements you need to comply. 

However, if you want to gain greater peace of mind, you need to consider hiring a building contractor. The reason is simple: These companies or individuals know the ins and outs of construction including the processes and products that will be used. For first-time customers, the process will always be filled with apprehension. This is why, it pays to do your homework so you can be sure that there is a trusted person responsible for the documentation, design and even day-to-day management of the construction process. 

The Advantage of Hiring a Contractor:

Contractors have substantial experience to ensure that costly mistakes and pitfalls are avoided in every construction project. For sure, just like anybody else, you cannot afford to lose a large chunk of money because the contractor neglected the project. Contractors' license is at stake. This is the reason they need to adhere to building codes and local ordinances. In the event your house catches fire, they are the ones who will face any complaint. Contractors have tried and tested strategies and methodologies so each construction project is delivered at faster time and lower cost. When you choose a reliable contractor, you will no longer have to take care of supervising the project yourself. 

Things to Consider When Hiring a Contractor:

1. Track Record-always check the contractor's track record so you will know whether or not they have successfully completed projects. Contractors will agree to tour you around projects, which have already been completed. These projects will help you decide whether or not the contractor can be trusted. 

2. Service Cost- the cost of service of most contractors will not be too apart from each other and they will usually provide you a price proposal that is lower than their competitors. Keep in mind that if the rate is too good to be true, it probably is. Make sure the price not too low as you might run the risk of getting your project at an unacceptable state or condition.

There are many deterrents to purchasing your dream home and one of which is the difficulty of resources that will provide financial assistance. Without a doubt, if you are cash strapped, your options are limited and sometimes, your dream of buying the home you want, has to take a backseat. 

These days, rent-to-own is an option many potential buyers would like to explore because it provides you two options: rent a home or purchase it during your rental period. It differs from traditional financing because the owner is the one offering financing to buyers. Just like any agreement between buyers and sellers, a contract will be secured to make sure that both parties have understood what they have entered into. 

RENT TO OWN CONTRACT

 

This Contract of Lease with Option to Purchase (Rent-to-Own Contract) made and executed this ____of __________ 20___ Manila, Philippines by and between.

 

__________________________________, Filipino, of legal age, single/married to, with post address at ________________________, hereinafter referred to as the LESSOR/SELLER. 

 

-AND –

 

            __________________________________, Filipino, of legal age, single/married to, with postal address __________________________, hereinafter referred to as the LESSEE/BUYER.

 

WITNESSETH:

 

             THAT, for and in consideration of the payment of rent and the faithful compliance by the LESSEE/BUYER of all the stipulations and covenants hereinafter contained, the LESSOR/SELLER has agreed to lease unto the LESSE /BUYER the premises located at _______________________________, City of Manila under the following terms and conditions.

 

1. PURPOSE: That the premises hereby leased shall be used exclusively by the LESSE/BUYER for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed upon that if at any time the premises are used for other purposes, the LESSOR/SELLER shall have the right to rescind this contract without prejudice to its other rights under the law.
   
   
2. TERM: The term of this non–renewable lease is for ______________ months from _____________________ to ________________ inclusive.
   
   
3. RENTAL RATE: The monthly rate for the leased premises shall be in PESOS:  ______________________ [_______________], Philippine currency. All rental payments shall be made payable to ______________________.
   
   
4. DEPOSIT: That the LESSEE/BUYER shall deposit with the LESSOR/SELLER upon signing of this contract and prior to move in an amount equal to ten percent (10%) of the selling price or the sum of PESOS: _____________________________________________________, Philippine currency.
   
   
5. RENTAL PAYMENT: The LESSE/BUYER shall issue, likewise, upon signing of this contract and prior to move in, Thirty (30) post-dated checks to cover monthly rental for the months of _________________ to __________________, each check dated on the _____ day of each month.
   
   
6. DEFAULT IN PAYMENT: In case of default by the LESSEE/BUYER in the payment of the rent, such as when the checks are dishonored, the LESSOR/SELLER, at its option may terminate this contract and eject the LESSEE/BUYER as hereinafter provided. However, the LESSE/BUYER is given seven (7) days grace period within which to settle the account from date rental payment is due. Granting an extension to the aforesaid grace period may not be deemed as a waiver of LESSOR/SELLER right to terminate this contract and eject the LESSE/BUYER but in the event the LESSOR/SELLER so opts to grant a written request for extension, a penalty equivalent to three (3%) percent per month of the rental due, with a fraction of a month considered as one month shall be charged and assessed for delayed payments.
   
   
7. SUB–LEASE: The LESSEE/BUYER 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/BUYER 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/BUYER without LESSOR/SELLER’s written approval.
   
   
8. LESSE’S VISITORS, etc…: In case of damage to leased premises attributable to the LESSEE/BUYER, agents and/or visitors, repair of the same shall be for the account of the LESSEE/BUYER without prejudice to LESSOR/SELLER’s availment of any other right under the law.
   
   
9. POWER, WATER CONSUMPTION & ASSOCIATION DUES:  Power, water and association dues shall be for the account of the LESSEE/BUYER.
   
   
10. OTHER PUBLIC UTILITIES: The LESSEE/BUYER shall pay for its telephone, cable and electrical services and other public services and utilities.
    
    
11. REPAIR AND MAINTENANCE: The LESSOR/SELLER shall deliver the leased as is where is. The LESSEE/BUYER hereby expressly acknowledges that the leased as is where is. The LESSE/BUYER hereby agrees and binds itself to undertake at its exclusive expense all minor and major repairs as may be required to maintain the leased premises in good state of repair, any provisions of law, present or future, or any stipulation in this agreement to the contrary notwithstanding.
    
    
12. IMPROVEMENTS, ALTERATIONS AND RENOVATIONS: The LESSEE/BUYER shall not make any improvements, alternations and renovations in the leased premises without prior written consent of both the Association and the LESSOR/SELLER. It is understood that all permanent improvements shall be owned by the LESSOR/SELLER and may not be removed without the express and written consent of the LESSOR/SELLER.
    
    
13. INJURY OR DAMAGE: The LESSEE/BUYER hereby assumes full responsibility for any damage which may be caused to the person or property of third person/s while remaining either casually or on business in any part of the premises leased. LESSEE/BUYER further binds itself to hold the LESSOR/SELLER harmless and free from any claim for such injury or damage. Provided, however, that the LESSOR/SELLER shall make necessary actions to correct said deficiencies to ensure that premises are in good and tenantable condition.
    
    
14. DISTURBANCE OF POSSESSION: Disturbance or discontinuance of possession of the LESSEE/BUYER due to “force majeure” shall confer nor right of any kind to the LESSEE/BUYER as against the LESSOR/SELLER, by reason of inconvenience, annoyance or injury to business arising out of the necessity of repairing any portion of the leased premises.
    
    
15. GOVERNMENT REGULATIONS: The LESSEE/BUYER, shall, at its own expense and risks, comply with all the laws, ordinances, regulations and orders of any agency of the government, national or local, affection or pertaining to the leased premises and to any effects or articles which said LESSEE/BUYER may have in its possession therein.
    
    
16. ABANDONMENT OF PREMISES: Should the LESSEE/BUYER abandon the leased premises for a period of THIRTY (30) DAYS or vacate the premises before expiration of this Contract of Lease without notifying the LESSOR/SELLER and check payment for the current month is dishonored, the LESSOR/SELLER’S may immediately re-enter the leased premises and this lease shall thereon be automatically terminated.
    
    
17. BREACH OF CONDITIONS: In case of breach by the LESSEE/BUYER of any of the conditions and covenants of this lease as herein stipulated, the LESSOR/SELLER at its option, may forthwith terminate and cancel this lease and the LESSEE/BUYER shall be liable for any and all damages as a result of such default and termination. Forfeiture of whatever rental desists and advances shall apply in case the LESSEE/BUYER violates any of the provisions in the contract. Forfeiture shall likewise apply should the LESSEE/BUYER fails to exercise his option to purchase after the expiration of this contract.
    
    
18. NON-WAIVER OF LESSOR’S RIGHT: Failure of the LESSOR/SELLER to enforce strict performance by the LESSEE/BUYER of any of the terms, conditions and covenants of this agreement shall not be construed as waiver of any right or remedy that the LESSOR/SELLER’S may have, nor shall it be deemed as a waiver of any subsequent breach of the terms, conditions, and covenants contained therein. No waiver by the LESSOR/SELLER of its rights hereunder shall be deemed to have been made unless expressed in writing and signed by the LESSOR/SELLER.
    
    
19. EXPIRATION OR CANCELLATION OF LEASE: At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE/BUYER will promptly deliver to the LESSOR/SELLER the leased premises with all corresponding keys and in as good and tenantable condition as the same is now, ordinary wear and tear excepted, devoid of all occupants, movable furniture, articles and effects of any kind.  Non-compliance with the terms of this clause by the LESSEE/BUYER will give the LESSOR/SELLER the right, at latter’s option, to refuse to accept the delivery of the premises and to compel the LESSEE/BUYER to pay therefrom at the same rate as herein provided plus an additional sum equal to Twenty Five (25%) percent thereof as penalty until the LESSEE/BUYER shall have complied with terms hereof. The same penalty shall, likewise, be imposed in case the LESSEE/BUYER shall refuse to leave the leased premises after the expiration of this Contract of Lease or the termination for any reason whatsoever.
    
    
20. OPTION TO PURCHASE: For good & valuable consideration, the receipt whereof is hereby acknowledge from the LESSEE/BUYER.  The LESSOR/SELLER hereby extends an option to the LESSEE/BUYER to purchase for the amount of PESOS: ___________________________________________ [P __________________] of Lease on the 18th month or the period from 1st to _____ of __________, _______. The LESSEE/BUYER, at his/her/its exclusive option, conditioned on faithful compliance with all payments and undertakings contained herein, may convey his/her/its decision to avail of option to purchase in writing to the LESSOR/SELLER who thereafter shall credit all rental payments up to the __________ (___) month and the initial deposit stated above to down payment.
    
    
21. BALANCE AFTER THIS LEASE AGREEMENT: If LESSEE/BUYER complied with all terms and conditions stated above, inclusive of payment of realty taxes, power, water and association dues, the outstanding balance of the LESSEE/BUYER shall be 70% of the Total Selling Price amount equivalent to PESOS: _____________________________________ [P_____________], Philippine currency. The LESSEE/BUYER hereby agrees to execute the Deed of Absolute Sale upon payment in full of the TOTAL PURCHASE PRICE. Failure of the LESSEE/BUYER to exercise his/its right to purchase within the period of 30 months from the execution of this contract shall mean forfeiture and abandonment of his right to purchase. In such case, all payment made during the term of this lease are considered rentals.
    
    
22. TRANSFER EXPENSES: Documentary stamp tax, capital gain tax, registration fees, transfer tax, and other necessary expenses connected with the execution and registration of the sale shall be for the account of and paid by the LESSEE/BUYER.
    
    
23. TAXES, UTILITIES AND OTHER ASSOCIATION IMPOSITIONS: For the duration of this lease, LESSEE/BUYER shall pay the Realty Taxes. However, should the LESSEE/BUYER not exercise the option to purchase, LESSOR/SELLER shall reimburse the LESSEE/BUYER of all the taxes, exclusive of penalties for delayed payments, if any, it had paid as well as the start-up fund of the Homeowners Association.
    
    
24. JUDICIAL RELIEF AND PENALTY: Should any one of the parties herein be compelled to seek judicial relief against the other, the losing parties shall pay an amount equivalent to One Hundred Percent (100%) of the amount claimed in the compliant as attorney’s fees which shall in no case be less than P 100,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law, to recover from the other party. Provisions of penal character in this Contract of Lease shall be considered as cumulative to the relief granted by this section.
    
    
25. RIGHTS AND INTERESTS: The rights and interests of the LESSOR/SELLER subject under this instrument shall be fully assignable by the LESSOR/SELLER subject only to previous written notice thereof to the LESSEE/BUYER.
    
    
26. FORFEITURE OF DEPOSIT: Forfeiture of whatever rental deposit and advances shall apply to any of the following:

a. When the LESSEE/BUYER is in default in payment for three (3) months. In such a case, the LESSOR/SELLER shall have the right to prohibit entry of the LESSEE/BUYER, visitors, guests and his employees in the premises and the right to   padlock the leased premises until indebted is satisfied;

 

            b. When LESSEE/BUYER pre-terminates lease with or without cause;

            c. When LESSEE/BUYER violates any of the provisions of this contract; and

            d. When the LESSEE/BUYER fails to exercise his/her option to purchase.

27. PENAL PROVISION: The parties agree that all covenant and agreements herein contained shall be deemed conditions as well as covenants that if default or breach be made of any such covenants and conditions, then this lease may be terminated and cancelled and the party in breach shall be liable for any and all damages, actual and consequential, resulting from such breach or termination; provided however, that no default shall be declared under this lease unless the party in default has given written notice to cure such default within thirty (30) days. In the event of violation of this contract, other than the non-payment of rentals, the party in breach must immediately take remedial steps to cure the breach not later than thirty (30) days.

28. RIGHT OF ENTRY: LESSOR/SELLER or its authorized agent/s shall, after giving due notice to the LESSEE/BUYER, have the right to enter the premises in the presence of the LESSEE/BUYER or its representative at any reasonable hour to examine the same or to make repairs therein or for the operation of regular maintenance of the building or for any other lawful purpose which it may deem necessary.

This RENT TO OWN CONTRACT (CONTRACT OF LEASE WITH OPTION TO PURCHASE) shall be valid and binding, between the parties, their successors-in-interest and assigns. No amendment of the terms of the instrument shall be effective unless in writing and signed by the parties therein.

 

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

 

__________________________                           _______________________

[Name]                                                       [Name]

LESSOR/SELLER                                       LESSEE/BUYER

 

 SIGNED IN THE PRESENCE OF:

 

__________________________                           _______________________

 ACKNOWLEDGEMENT

 

Republic of the Philippines)

_________________________) S.S

                        BEFORE ME, a Notary Public, this   _____ day of ____________, 20___ personally appeared the following to witness:

 

       NAME                        CTC No.            DATE ISSUED        PLACE ISSUED 

 

-------------------------------       ---------------      ---------------------      ---------------------

-------------------------------       ---------------      ---------------------      --------------------- 

Known to me to be the same persons who have executed the foregoing, instrument and acknowledged to me that the same is of their own free will and voluntary act and deed as well as of the corporation herein represented.

 

This instrument consisting of ______ (__) pages, including the page on which this acknowledgement is written, has been signed on the left margin of each page and every page thereof by the parties and their instrumental witnesses and sealed with my notarial seal.

 

IN WITNESS WHEREOF, I have hereunto set my hand, the day, year and place above written.

 

Doc. No.  ______:

Page No.  ______:

Book No. ______:

Series No 20___.

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___.

Many people have fallen prey to schemes including entering into a fake marriage. Everything seems like a dream-come-true to these individuals, but when both parties decide to part ways, it is only then that one party discovers that the marriage was actually fake. People who are not well-versed when it comes to the ins and outs of legal marriage may consider a marriage certificate as a strong proof of the validity of marriage. Surprising as it may seem, a marriage can still be considered valid despite the absence of registration of a marriage certificate at the local civil registry or the National Statistics Office. 

When both parties have entered into a contract of permanent union, the following requirements must be met in accordance with the Family Code. 

Requisites of Marriage

Article 1. Marriage is a special contract of permanent union between a man and a woman entered into in accordance with law for the establishment of conjugal and family life. It is the foundation of the family and an inviolable social institution whose nature, consequences, and incidents are governed by law and not subject to stipulation, except that marriage settlements may fix the property relations during the marriage within the limits provided by this Code. (52a)

Art. 2. No marriage shall be valid, unless these essential requisites are present:

(1) Legal capacity of the contracting parties who must be a male and a female; and

(2) Consent freely given in the presence of the solemnizing officer. (53a)

Art. 3. The formal requisites of marriage are:

(1) Authority of the solemnizing officer;

(2) A valid marriage license except in the cases provided for in Chapter 2 of this Title; and

(3) A marriage ceremony which takes place with the appearance of the contracting parties before the solemnizing officer and their personal declaration that they take each other as husband and wife in the presence of not less than two witnesses of legal age. (53a, 55a)

Art. 4. The absence of any of the essential or formal requisites shall render the marriage void ab initio, except as stated in Article 35 (2).

A defect in any of the essential requisites shall not affect the validity of the marriage but the party or parties responsible for the irregularity shall be civilly, criminally and administratively liable. (n)

Art. 5. Any male or female of the age of eighteen years or upwards not under any of the impediments mentioned in Articles 37 and 38, may contract marriage. (54a)

Art. 6. No prescribed form or religious rite for the solemnization of the marriage is required. It shall be necessary, however, for the contracting parties to appear personally before the solemnizing officer and declare in the presence of not less than two witnesses of legal age that they take each other as husband and wife. This declaration shall be contained in the marriage certificate which shall be signed by the contracting parties and their witnesses and attested by the solemnizing officer.

In case of a marriage in articulo mortis, when the party at the point of death is unable to sign the marriage certificate, it shall be sufficient for one of the witnesses to the marriage to write the name of said party, which fact shall be attested by the solemnizing officer. (55a)

Art. 7. Marriage may be solemnized by:

(1) Any incumbent member of the judiciary within the court's jurisdiction;

(2) Any priest, rabbi, imam, or minister of any church or religious sect duly authorized by his church or religious sect and registered with the civil registrar general, acting within the limits of the written authority granted by his church or religious sect and provided that at least one of the contracting parties belongs to the solemnizing officer's church or religious sect;

(3) Any ship captain or airplane chief only in the case mentioned in Article 31;   

(4)  Any military commander of a unit to which a chaplain is assigned, in the absence of the latter, during a military operation, likewise only in the cases mentioned in Article 32;

(5) Any consul-general, consul or vice-consul in the case provided in Article 10. (56a)

Article. 8. The marriage shall be solemnized publicly in the chambers of the judge or in open court, in the church, chapel or temple, or in the office the consul-general, consul or vice-consul, as the case may be, and not elsewhere, except in cases of marriages contracted on the point of death or in remote places in accordance with Article 29 of this Code, or where both of the parties request the solemnizing officer in writing in which case the marriage may be solemnized at a house or place designated by them in a sworn statement to that effect. (57a)

Art. 9. A marriage license shall be issued by the local civil registrar of the city or municipality where either contracting party habitually resides, except in marriages where no license is required in accordance with Chapter 2 of this Title. (58a)

Art. 10. Marriages between Filipino citizens abroad may be solemnized by a consul-general, consul or vice-consul of the Republic of the Philippines. The issuance of the marriage license and the duties of the local civil registrar and of the solemnizing officer with regard to the celebration of marriage shall be performed by said consular official. (75a)

Art. 11. Where a marriage license is required, each of the contracting parties shall file separately a sworn application for such license with the proper local civil registrar which shall specify the following:

(1) Full name of the contracting party;

(2) Place of birth;

(3) Age and date of birth;

(4) Civil status;

(5) If previously married, how, when and where the previous marriage was dissolved or annulled;

(6) Present residence and citizenship;

(7) Degree of relationship of the contracting parties;

(8) Full name, residence and citizenship of the father;

(9) Full name, residence and citizenship of the mother; and

(10) Full name, residence and citizenship of the guardian or person having charge, in case the contracting party has neither father nor mother and is under the age of twenty-one years. 

If the requisites mentioned are present, there is no reason for marriage to be invalid. If a copy of the marriage certificate has not been filed to the local civil registry, it does not affect the validity of marriage. Married parties will just simply present a copy of marriage certificate to the civil registry for late registration. 

A Contract to Sell refers to an agreement between a seller and a buyer. The contract shows that the seller promises to sell something to the buyer and the buyer also promises the seller the buy the property. However, the contract does not instantly transfer the right to the buyer even when this contract is signed. There are still conditions that have to be fulfilled by one or both parties before transfer of ownership can take place. The Deed of Absolute sale will only be executed once the conditions stated in the Contract to Sell have been met. 

 

CONTRACT TO SELL

KNOW ALL MEN BY THESE PRESENTS:

This Contract to Sell is made and executed and entered into by: 

Name of Seller, of legal age, Filipino, single/married to Name of the Spouse of Seller, with residence address at Postal Address of the Seller in the Phiilppines, hereinafter referred to as the SELLER;

-AND- 

       Name of Buyer, of legal age, Filipino, single/married to, Name of Spouse of Buyer and with residence and postal address at Address of the Buyer in the Phiippines, hereinafter referred to as the BUYER; 

WITNESSETH;

         WHEREAS, the SELLER is the registered owner of a parcel of land with improvements located at Address of the property for sale in the Philippines and covered by Transfer Certificate of Title No. 000000 containing a total area of LAND AREA IN SQUARE METERS (000sqm) SQUARE METERS, more or less, issued by the Registry of Deeds of City/Municipality;

WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the above mentioned property under the terms and conditions herein below set forth;

NOW THEREFORE, for and in consideration of the total sum of THE CONTRACT PRICE FOR THE PROPERTY FOR SALE (P0,000,000.00) Philippine Currency, and of the covenants herein after set forth the SELLER  agrees to sell and the BUYER agree to buy the aforesaid property subject to the following terms and conditions:

The total consideration shall be THE CONTRACT PRICE FOR THE PROPERTY FOR SALE (P0,000,000.00) Philippine Currency, payable through CASH/MANAGERS’ CHECK/WIRE TRANSFER as follows:

1.1. The amount of THE EARNEST MONEY DEPOSIT (P000,000.00) representing earnest money deposit shall be payable upon execution of this Contract to Sell and shall be considered part of the total Contract price.

1.2. The remaining balance amounting to THE REMAINING BALANCE (P0,000,000.00) PESOS Philippine Currency, shall be payable within ­TIME FRAME upon execution of this Contract to Sell.

1.3  In case the BUYERS could not fulfil any of their obligation stated in this Contract To Sell, the earnest money shall be forfeited in favor of the SELLER.

2.    Al pending utility bills, if any, Real Estate Tax up to the time of sale, Capital Gains Tax, Documentary Stamp Tax, shall be for the account of the SELLER.

3.     Notarization fees, Registration Fee, Transfer Fees and all miscellaneous fees and expenses to transfer the certificate of title in the name of the new owner shall be for the account of the SELLER;

4.     Possession to the subject property shall be delivered by the SELLER to the BUYER upon full payment of the total consideration;

5. ADDITIONAL TERMS AND CONDITIONS SUCH AS Delivery of the property shall be given by the SELLER to the BUYER devoid of any religious artefacts, personal belongings and effects, tenants and any toxic/radioactive substances. Etc.

6. TERMS AND CONDITIONS MAY VARY ON A CASE-TO-CASE BASIS. CONTRACTING PARTIE MAY ADD, SUBTRACT, EDIT, ANY OR ALL PARTS OF THIS CONTRACT TO SELL AS THEY SEE FIT

7.    Upon full payment of the total price, the SELLER shall sign and execute a DEED OF ABSOLUTE SALE in favour of the BUYER. The SELLER shall likewise execute and/or deliver any and all documents, including but not limited to the original copy of Transfer Certificate of Title, Tax Declaration and all other documents necessary for the transfer of ownership from SELLER to the BUYER. 

8. In case the SELLER could not fulfil any of the obligations stated in this Contract to Sell, the BUYER shall be entitled to a full refund plus 10% interest per month.

 

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this

 

_____ day of _______________________ 20________ at ___________________________________, Philippines.

 

___________________________________                                       ___________________________________

 

Printed Name and Signature of SELLER                                          Printed Name and Signature of BUYER

 

SIGNED IN THE PRESENCE OF:

 ___________________________________                                       ______________________________________

 

Printed Name and Signature of 1st Witness                                                Printed Name and Signature of 2nd Witness

 

 ACKNOWLEDGMENT

 

REPUBLIC OF THE PHILIPPINES)

_____________________________ )  SS.

BEFORE ME, a Notary Public for and in ________________________________________________________  personally appeared:

 

Name                                       ID  Number                                         Date/Place Issued

 

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

 

This instrument, consisting of 2 pages, including the page on which this acknowledgment is written, has been signed on the left margin of each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal.

 

WITNESS  MY HAND AND SEAL on this ______day of _______________________________20__________ at_____________________________.

 

Notary Public

  

Doc. No. ……..;

Page No. …….;

Book No. …….;

Series of 20____.

Before you become officially employed, you need to sign an employment contract that binds you into an agreement. Signing a contract means that you will follow company policies and agree to the terms and conditions. Your probationary period is one of the provisions in the contract. But, what if you noticed that the probationary period is more than six months? Will you still consider your employment just and legal?

According to Article 281 of the Labor Code, "probationary employment shall not exceed six months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period."

Also, an employee who continues to work for the same company after the probationary period will be considered a regular employee. As a rule of thumb, the period of probation should only be limited to six months.

However, there are still some exceptions to the rule. This is when probationary employment is covered by an apprenticeship agreement, which in theory requires a longer period. Apprenticeship refers to an employment wherein the situation that an employee is engaged in is apprenticeable.

SECTION 6. Probationary employment.

(a) Where the work for which an employee has been engaged is learnable or apprenticeable in accordance with the standards prescribed by the Department of Labor, the probationary employment period of the employee shall be limited to the authorized learnership or apprenticeship period, whichever is applicable.

(b) Where the work is neither learnable nor apprenticeable, the probationary employment period shall not exceed six (6) months reckoned from the date the employee actually started working.

(c) The services of an employee who has been engaged on probationary basis may be terminated only for a just cause or when authorized by existing laws, or when he fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer.

(d) In all cases involving employees engaged on probationary basis, the employer shall make known to the employee the standards under which he will qualify as a regular employee at the time of his engagement.

If you have made a purchase of a parcel of land and found out that the contract has not been notarized, can the contract be considered invalid? The notarization of a contract is not required to prove its validity. As stated in Article 1356 of the Civil Code, contracts are deemed obligatory and it should meet the essential requisites that will prove its validity.

Art. 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised.

It has also been specified under Article 1318 that notarization is not one of the requirements for preparing a contract.

Art. 1318. There is no contract unless the following requisites concur:

    (1) Consent of the contracting parties;

    (2) Object certain which is the subject matter of the contract;

    (3) Cause of the obligation which is established.

However, the notarization converts a contract into a public document. While it is not required, it is suggested that contracts involving land must be notarized as specified under Article 1358 of the Civil Code.

Art. 1358. The following must appear in a public document:

(1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405;

(2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains;

(3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person;

(4) The cession of actions or rights proceeding from an act appearing in a public document.

If you will undergo the registration process, the deed of sale should be notarized according to Section 112 of the Property Registration Decree.

Section 112. Forms in conveyancing. The Commissioner of Land Registration shall prepare convenient blank forms as may be necessary to help facilitate the proceedings in land registration and shall take charge of the printing of land title forms.

Deeds, conveyances, encumbrances, discharges, powers of attorney and other voluntary instruments, whether affecting registered or unregistered land, executed in accordance with law in the form of public instruments shall be registerable: Provided, that, every such instrument shall be signed by the person or persons executing the same in the presence of at least two witnesses who shall likewise sign thereon, and shall acknowledged to be the free act and deed of the person or persons executing the same before a notary public or other public officer authorized by law to take acknowledgment. Where the instrument so acknowledged consists of two or more pages including the page whereon acknowledgment is written, each page of the copy which is to be registered in the office of the Register of Deeds, or if registration is not contemplated, each page of the copy to be kept by the notary public, except the page where the signatures already appear at the foot of the instrument, shall be signed on the left margin thereof by the person or persons executing the instrument and their witnesses, and all the ages sealed with the notarial seal, and this fact as well as the number of pages shall be stated in the acknowledgment. Where the instrument acknowledged relates to a sale, transfer, mortgage or encumbrance of two or more parcels of land, the number thereof shall likewise be set forth in said acknowledgment.

Renting a property is indeed very challenging especially when it comes to following rules. Due to excitement, the tenant may immediately sign the contract without reading the content of the tenancy agreement. It is important to ask questions before you consider signing the lease agreement to prevent problems from arising in the future.

1. Mode of payment

Before you sign the lease agreement, be sure you find out about the mode of payment accepted. More often than not, the landlord will prefer cash but check or bank transfer may also be an option. Aside from the mode of payment, you should also ask about the specific date that the payment should be made.

2. Utilities you are responsible for

Some landlords include utilities like water and electricity to the rental payment while others may also consider paying the utilities separately. Make sure you settle issues of utilities so confusion can be avoided.

3. Repair and Renovation of the Property

It is important to know whether or not it is allowed to make changes to the property. Some landlords allow repair and renovation while others may not agree with it. The landlord's policy regarding re-designing the rental space is usually specified on the contract.

4. Guest Policy

You have to keep in mind that the policy when renting an apartment or other types of rental property may vary from landlord to landlord. There are landlords who prefer to set specific visiting hours and prohibit tenants from accepting visitors in the middle of the night due to security issues. Before you move in, ask the time you can accept or bring a guest.

5. Bringing Pets

Again, some landlords do not mind bringing your furry friends, but there are owners that either prohibit pets in the property or expect a pet deposit. Ask in advance to find out.

6. Maintenance Problem

It can be inevitable to encounter maintenance emergency when you are supposed to have a good night's sleep. The landlord must be quick to respond to maintenance problems. You should know if the landlord has a reliable repairman who will come to the rescue in case of maintenance emergency.

7. Damage and Security Deposit

The security deposit serves as your bond in the event you have incurred damage in the property. However, if you choose to not renew your contract and there are no damages in the property, you need to get a refund of your security deposit. Ask the landlord if they allow documenting current damage in the rental property for future reference.

8.Non-Refundable Security Deposit

Normal wear and tear can be an issue that may cause the landlord to hold the deposit. Be sure to arm yourself with sufficient knowledge about the reasons for not getting your security deposit back.

While you may try to do everything to ensure renting out your property runs smoothly, there are still instances when you need to deal with a non-paying tenant. There might be other grounds for tenant eviction, but non-payment is the most common. Some prefer to create a verbal agreement while others secure a contract. With or without a contract, a tenant who fails to pay for a maximum of three months can be subject for ejectment. However, things are always easier said than done. Here's what you need to know about ejectment:

Grounds and process of ejectment

"Sec.  5.  Grounds for Judicial Ejectment. — Ejectment shall be allowed on the following grounds:

    a.  Subleasing or assignment of lease of residential units in whole or in part, without the written consent of the owner/lessor: Provided, That in case of subleases or assignments executed prior to the approval of this Act, the sublessor/assignor shall have sixty days from the effectivity of this Act within which to obtain the written approval of the owner/lessor or terminate the sublease or assignment.

    b.  Arrears in payment of rent for three (3) months at any one time: Provided, That in case of refusal by the lessor to accept payment of the rental agreed upon, the lessee shall either deposit, by way of consignation, the amount in court, or in a bank in the name of and with notice to the lessor.

    c.  Need of owner/lessor to repossess his property for his own use for the use of any immediate member of his family as a residential unit, such owner or immediate member not being the owner of any other available residential unit: Provided, however, That the period of lease has expired: Provided, further, That the lessor has given the lessee notice three months in advance of the lessor's intention to repossess the property: and Provided, finally, That the owner/lessor or immediate member stays in the residential unit for at least one year, except for justifiable cause.

    d.  Ownership by the lessee of another residential unit which he may use as his residence: Provided, That the lessee shall have been notified by the lessor of the intended ejectment three months in advance.

    e.  Need of the lessor to make necessary repairs of the leased premises which is the subject of an existing order of condemnation by the appropriate administrative authorities concerned in order to make the said premises safe and habitable: Provided, That after said repair, the lessee ejected shall have the right of first refusal of the lease of the same premises.

    f.  Expiration of the period of a written lease contract. "

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)”

Aside from knowing the essential elements of a rental contract, tenants and landlords are also interested to know the law on tenant eviction in the Philippines. The rental law varies from country to country and with that being said, tenant eviction cannot take place if it does not coincide with the local law.  More often than not, non-payment is the most common reason for tenant eviction but before a landlord can evict a tenant, certain obligations must also be taken into consideration.  A landlord must ensure that the unit is habitable. The owner must also be compliant with health laws and building statutes.

A property owner or landlord cannot evict a tenant immediately without delivering three day notice. It is against the law to change the locks without the tenant’s consent. If the tenant’s eviction is due to non-payment and the tenant decides to pay the rent, then the problem has been resolved. However, if the tenant refuses to pay or leaves the property, the issue will be taken to court. For both parties, the process can be very expensive and time-consuming.

A landlord must also keep in mind that eviction does not happen in an instant. If the tenant fails to pay for three consecutive months, the landlord has the right to sue the tenant. The landlord needs to wait for the tenant’s response to a writ given by the court indicating abandonment. The police will be the one to evict a tenant under court order.

Aside from non-payment, a landlord has the right to evict a tenant for subleasing a property or unit without prior consent from the landlord. If the landlord decides to repair or use the unit, the tenant must also vacate the property at a given time. In theory, the tenant is given three month formal notice, which can be delivered by mail or handed personally to the tenant. If the property will only undergo repair, the tenant has the right to rent the property again. For condemned buildings or units, the landlord should give a fifteen day notice to the tenant to leave the unit.

While it can be frustrating to evict a tenant who refuses to pay rent after the grace period, the landlord should not take the matter into his own hands. Instead, call the police to evict the tenant to avoid facing serious consequences. Landlords are also encouraged to make the tenant leave the property voluntarily because taking the matter to court is costly and can take so much of your precious time.

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.

Anti-corruption advocates were quite disappointed when Makati Mayor Jejomar Erwin “Junjun” Binay Jr. invoked the Aguinaldo doctrine, questioning his order of suspension last March. The decision was made by Ombudsman Conchita Carpio Morales. The Makati Mayor claimed that he was no longer held responsible nor liable for the construction of Makati Science High School Building (MSHSB) because such liability has already been rendered ineffective by his reelection in 2013.  The same doctrine was used for defending himself against anomalous and shady transaction involved in the construction of the Makati City Hall Parking Building II. Perhaps, the existence of Aguinaldo Doctrine has been misused and abused by politicians who still aspire to run for 2016 elections in spite of pending administrative cases. 

The Aguinaldo doctrine removes the elected officials’ liabilities for administrative offenses that were committed in previous terms once they are reelected. It is so easy for elected officials to evade liabilities so long as they are reelected into office. The doctrine also emphasizes that the law only applies to administrative cases. If elected official has a pending criminal case, the acts will not be pardoned and the judicial processes will push through. Anti-corruption advocates believe that scrapping this doctrine can reduce graft and corruption in the country. 

As stated in the doctrine: “Offenses committed, or acts done, during a previous term are generally held not to furnish cause for removal and this is especially true were the Constitution provides that the penalty in proceeding for removal shall not extend beyond the removal from office, and disqualification from holding office for a term for which the officer was elected or appointed.”

“The Court should ever remove a public officer for acts done prior to his present term of office. To do otherwise would be to deprive the people of their right to elect their officers. When a people have elected a man to office, it must be assumed that they did this with knowledge of his life and character, and that they disregarded or forgave his fault or misconduct, if he had been guilty of any. It is not for the court, by reason of such fault or misconduct, to practically overrule the will of the people. (Lizares v. Hechanova, et al., 17 SCRA 58, 59-60 [1966]) (See also Oliveros v. Villaluz, 57 SCRA 163 [1974])”

“Equally without merit is petitioner's claim that before he could be suspended or removed from office, proof beyond reasonable doubt is required inasmuch as he is charged with a penal offense of disloyalty to the Republic which is defined and penalized under Article 137 of the Revised Penal Code. Petitioner is not being prosecuted criminally under the provisions of the Revised Penal Code, but administratively with the end in view of removing petitioner as the duly elected Governor of Cagayan Province for acts of disloyalty to the Republic where the quantum of proof required is only substantial evidence.”

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.