2024 BAR EXAMINATIONSCIVIL LAWSEPTEMBER 8, 20248:00 AM – 12 NOON
1.
Carlos and Chloe scheduled their intimate wedding on September 4, 204 at 7:00 p.m. in Manila. Chloe purchased from Angelica a gold wedding ring with engraving “Love, Carlos” for PHP 1,000,000. Angelica promised to deliver the ring on or before the wedding day. On September 1, 2024, a weather bulletin warned that super typhoon Enteng will enter the country within three days. On September 4, 2024 at 6:00 a.m., typhoon Enteng and the enhanced southwest monsoon caused massive flooding that rendered major roads in Manila impassable to all kinds of vehicles. Angelica failed to deliver the ring in time for Carlos and Chloe’s wedding which pushed through despite the typhoon. Angelica delivered the ring the following day after the flood subsided. Chloe filed against Angelica a complaint for damages. Angelica denied liability and argued that typhoon is a fortuitous event. Chloe replied that typhoon is not a fortuitous event because its arrival was earlier announced. In any event, the typhoon will not exempt Angelica because of her negligence and default. Angelica was negligent when she failed to pay attention to the forecast and was in default when she delivered the ring after the wedding. Is Angelica liable for damages due to default complying with her obligation? Explain.
2.
Viada and Blanco are best friends. In July 2024, Blanco sold to Castan a parcel of land registered in Viada’s name. Blanco signed the deed of absolute sale in behalf of Viada and pretended as his agent. In August 2024, Viada executed a special power of attorney (SPA) authorizing Blanco to sell the identical parcel of land. Blanco executed a deed of absolute sale in favor of Sanchez Roman who was aware of the prior conveyance of the same land to Castan. Thereafter, Castan learned of the subsequent transaction between Blanco and Sanchez Roman. Castan then filed against Sanchez Roman an action for annulment of sale. Castan argued that Sanchez Roman is in bad faith becuase of his knowledge of the prior sale. Sanchez Roman countered that the sale between Blanco and Castan is void for lack of Viada’s consent. Castan replied that the subsequent issuance of the SPA of Blanco ratified any defect in their transaction. Who between Castan and Sanchez Roman has a better right over the parcel of land? Explain.
3.
Alice and Shiela occupied a parcel of land which they inherited from their parents. In 2003, Alice executed an affidavit of self-adjudication over the property and was issued a certificate of title solely under her name. In August 2024, Sheila discovered that she was excluded from the certificate of title. Shiela filed against Alice an action to reconvey the land based on implied trust. Shiela alleged continuous actual possession of the property and deprivation of share as compulsory heir. Alice countered that the prescriptive period to reconvey real property based on an implied trust is 10 years reckoned when she repudiated the trust in 2003 upon the issuance of certificate of title in her name. Thus, Shiela’s action for reconveyance filed only in 2024 had already prescribed. Is Sheila’s cause of action to recover her share in property from Alice already prescribed? Explain.
4.
In 2017, Maloi leased her real property to Sheena for a period of 10 years with rental escalation clause which reads: “For the first five years, the rental rate shall be PHP 10,000.00 per month subject to 10% increase for the succeeding years.”. In 2020 Sheena assigned to Colet her rights through postdated checks but were dishonored for having been drawn against a closed account. Maloi charged Colet with the crime of estafa. On the other hand, Maloi demanded from Sheena the unpaid rentals and stipulated increase in rent but was refused. Sheena denied liability and argued that her obligation was already extinguished when Colet substituted her as lessee. Sheena added that Maloi accepted rental payments from Colet. Did novation extinguish Sheena’s obligation under the contract of lease? Explain.
5.
Primo, a French national and permanent resident of Canada, executed in the Philippines a holographic will which he entirely wrote, dated and signed. Primo enumerated in the will various real and personal properties situated in the Philippines, France, and Canada. Primo bequeathed the properties in the Philippines to his parents, the properties in France to his siblings, and the properties in Canda to his wife and children. In 2024, Primo suffered a heart attack and died in Australia while attending a conference. Primos was survived by his wife, two children, parents, and three siblings. What laws shall govern the formalities of Primo’s holographic will, the distribution of his estate, and the qualifications of his heirs? Explain.
6.
In 2021, Jesse and Celeste got married. After a year, Jesse took all their savings and abandoned Celeste for his paramour Diana. Jesse asked Diana to quit her job. Diana hesitated because she has no money and is drowning in debts. Yet, Jesse promised to provide for all of Diana’s needs. Jesse and Diana then lived together. The following day, Jesse and Diana bought a brand-new car. The vehicle was exclusively registered under Diana’s name. Celeste learned of the purchase and filed an action to recover the vehicle from Diana. Celeste claimed that Jesse is still her lawful husband, and that the car is part of their community property. Diana countered that she and Jesse are co-owners of the vehicle. Can Celeste recover the vehicle from Diana? Explain.
7.
Lloyd had a long-time crush with his childhood friend Miggy. Lloyd always dreamed of building a family with Miggy but Philippine laws disapprove of same-sex marriages. Lloyd then migrated and established a career in Sweeden. After several years, Lloyd applied for naturalization and was granted Swedish citizenship. Lloyd underwent gender-affirming surgery to resemble the woman gender identity. Lloyd also changed his sex from “male” to “female” and his name from “Lloyd” to “Laida” pursuant to Swedish law. Thereafter, Laida returned to the Philippines and married Miggy. Is the marriage between Miggy and Laida valid? Explain.
8.
In 1990, Monica was born during the marriage of her parents Anton and Steph. In 2024, Monica discovered that a certain Patrick signed as the father in her birth certificate. Monica looked for Patrick and was informed that he passed away a year earlier. Monica learned that Patrick was Steph’s last boyfriend before she married Anton. Thereafter, Monica filed a complaint for partition of Patrick’s estate. Monica claimed that she is the non-marital child of Patric and Steph. Monica submitted her birth certificate where Patrick recognized her as his daughter. The heirs of Patrick opposed the complaint and argued that Monica is presumed the legitimate child of Anton and Steph pursuant to Article 164 of the Family Code which states that “children conceived or born during the marriage of the parents are legitimate.” The heirs of Patrick also invoked the rule that only the father can impugn the legitimacy of the child. May Monica impugn her own legitimacy in an action for partition? Explain.
9.
Zion purchased a condominium unit from Hammered Homes Realty (HHR) for PHP 10,000,000.00. Zion paid a down payment of PHP 2,000,000.00 while the balance of PHP 8,000,000.00 is payable for a period of 80 months at PHP 100,000.00 monthly installments. Zion started paying the monthly installments on April 15, 2022. Due to financial difficulties, Zion started to default on his payments from June 15, 2924. Zion paid PHP 1,800,000.00 total monthly installments. On August 15, 2024, Zion received a notarized letter cancelling the contract to sell. Zion then went to the office of HHR to claim the cash surrendered value of his payments pursuant to Republic Act No. 6552 entitled “Ready Installment Buyer Act” or the Maceda Law. Is Zion entitled to cash surrender value? Explain.
10.
Caloy died with a net estate of PHP 240 million, survived by his:
(1) father – Cesar;
(2) spouse – Grace;
(3) legitimate children – Teddy and Bobbie;
(4) illegitimate child – Rebreb; and
(5) sisters – Alex and Gabbie.
In his will, Caloy instituted Rebreb as the sole heir. How much can Rebreb receive from Caloy’s estate? Explain.
11.
Rico mortgaged a parcel of land to Maris as security for a loan. In the mortgage contract, Rico appointed Maris as attorney-in-fact for the purpose of selling the land in case of default in the payment of loan. Rico failed to pay his obligation. Maris then purchased the land from Rico through a deed of absolute sale. Later, Rico questioned the mortgage contract because it violates the prohibition against pactum commisorium. As such, the subsequent sale is also void. Is the sale between Rico and Maris valid? Explain.
12.
Kiko leased a parcel of land to Jackie from January to December 2024 or for a period of one year. In July 2024, Kiko sent to Jackie a letter which reads: “I am giving you the first opportunity to buy the leased property for PHP 1,000,000.00. You have until the expiration of the lease contract within which to decide.” Immediately, Jackie informed Kiko that she will buy the leased property for PHP 800,000.00. Kiko did not reply to Jackie. In August 2024, Jackie learned that Kiko sold the leased property to Bogs for PHP 800,000.00. Aggrieved, Jackie filed an action against Kiko and Bogs to rescind their contract of sale. Jackie claimed that the sale transaction violated her right of first refusal, and that she must be allowed to buy the property at a similar price of PHP 800,000.00. Can Jackie rescind the contract of sale between Kiko and Bogs for the alleged violation of her right of first refusal? Explain.
13.
Klyde and his predecessors-in-interest had been in open, continuous, exclusive and notorious possession and occupation of a 10-hectare agricultural land of the public domain under a bona fide claim of ownership since 1995. In 2015, the property had been declared alienable and disposable. In 2020, Klyde applied for registration of the lot. The Register of Deeds denied the application because Klyde did not occupy the property since time immemorial or before June 12, 1945. Is the Register of Deeds justified in denying the registration of the property in favor of Klyde based on lack of occupation since time immemorial? Explain.
14.
In 2015, Sergio and Calista got married. In 2019, Sergio started complaining about his recurring and severe migraines. Sergio then left without informing Calista his whereabouts. Eventually, Calista fell in love with her best friend Albert. In 2024, Calista filed a summary proceeding to declare Sergio presumptively dead so she can marry Albert. Calista alleged that Sergio’s only known relative is his brother, Robert, who lives in Cotabato City. Calista wrote to Robert and asked him about Sergio. Robert replied that he does not have any idea where to find Sergio. Calista also tried to inquire from Sergio’s friends but to no avail. Thus, Calista honestly believed that Sergio is already dead. Is Calista’s petition for declaration of presumptive death meritorious? Explain.
15.
Ginny arrived at Star Viva Hotel (SVH) and entrusted the ignition key of her vehicle to parking attendant Marco, who in turn, issued a valet parking customer claim stub. After parking the vehicle, Marco placed the ignition key inside a safety box. Ginny proceeded to the hotel lobby to check in. At midnight, the hotel security officer informed Ginney that her vehicle was carnapped. Ginny filed against SVH an action for damages for the loss of the vehicle. In its answer, SVH denied responsibility for any loss or damage to vehicles in the parking area since the valet parking service is a special privilege given for the convenience of the hotel guests. Is SVH liable for the loss of Ginny’s vehicle? Explain.
16.
In 2021, Kynan was born to live-in parents Popoy and Basha. After a year, Popoy and Basha parted ways due to irreconcilable differences. Basha worked as a market vendor to support Kynan and often left him in the care of his maternal grandmother. Popoy occasionally sent money for Kynan’s needs. Later, Basha had a discreet romantic affair with her best friend Helen. In 2024, Popoy filed a case for the sole custody of Kynan and alleged that Basha is an unfit mother. Popoy argued that Basha’s lesbian relationship is not conducive to the proper moral development of Kynan. Basha countered that she is able to take care of and provide for Kynan despite her meager income. Are there compelling reasons to deprive Basha of Kynan’s custody? Explain.
17.
Lennon made a last will and testament which contained two simple dispositions, to wit: “First, I am leaving one-half of my estate in favor of the poor…. Second, I am leaving one-half of my estate in favor of my soul….” Lennon named Atty. Manresa as executor and instructed him to carry out the provisions of his will. In 2024, Lennon died single and childless. Thereafter, Lennon’s will was presented for probate. The siblings of Lennon opposed the probate of the will and claimed his entire estate through intestate succession. The siblings of Lennon argued that his testamentary dispositions are void because the first is in favor of an unknown person while the second is for a beneficiary without civil personality. Are the dispositions in Lennon’s will void? Explain.
18.
Sharon owned a parcel of land adjoining the sea with flat terrain at the center and elevated rocky northern part. Sharon executed a written instrument where she donated the portion with flat terrain to Nichloas who accepted it in the same instrument. After the survey, Nicholas discovered that the land described in the deed of donation refers to the rocky northern portion. However, Sharon already died without correcting the mistake. Nicholas asked the heirs of Sharon to execute an amended deed of donation over the flat terrain but was refused. Nicholas filed against the heirs of Sharon an action for reformation of instrument to reflect the real intention of the parties. May the trial court compel the heirs of Sharon to reform the instrument and execute an amended deed of donation? Explain.
19.
On July 5, 2024, Odrey and Jeboy executed a notarized agreement for the sale of real property which reads: “Odrey agrees to sell Lot 0416 to Jeboy for a total consideration of PHP 1,000,000.00. Upon full payment of the purchase price, Odrey will execute a deed of absolute sale in favor of Jeboy.” The following day, Jeboy recorded the instrument with the Register of Deeds. On August 5, 2024, Odrey and Lorenz executed a notarized document over the same parcel of land which reads: “for and in consideration of PHP 1,000,000.00, receipt of which is hereby acknowledged, Odrey hereby sells, transfers, and conveys and by these presents sold, transferred, and conveyed Lot 0416 to Lorenz.” The deed between Odrey and Lorenz was not registered. Later, Jeboy discovered the transaction between Odrey and Lorenz. Jeboy invoked the rules on double sale and argued that he has a better right because he is the first registrant in good faith. Will the rules on double sale apply? Explain.
20.
Alan, a mall security guard, negligently shot Kazuto, a customer who died on the spot. The heirs of Kazuto filed an action for damages against Alan, for his own negligence, and his employer, Ryota Security Agency (RSA), for failure to observe diligence in the selection and supervision of its employees. In due course, the trial court ruled that both Alan and RSA are negligent and ordered them to pay damages in favor of the heirs of Kazuto, to wit:
FOR THE REASONS, the complaint for quasi-delict is GRANTED. Alan is civilly liable to pay the heirs of Kazuto PHP 1,000,000.00 actual damages, PHP 500,000.00 moral damages, and PHP 500,000.00 exemplary damages. Ryota Security Agency, as employer, is subsidiarily liable to pay the award of damages in case of the employee’s insolvency.
The award of damages shall earn interest at the rate of 12% from filing of the complaint until finality of the decision.
SO ORDERED.
Did the trial court properly impose the civil liabilities of Alan and RSA? Explain.
2024 BAR EXAMINATIONSREMEDIAL LAW, LEGAL AND JUDICIAL ETHICSSeptember 15, 20242:00 p.m. – 6:00 p.m.
Toni filed an action for breach of contract against Ivana. At the trial, Toni answered these questions from her counsel:
Q: What happened next, if any?
A: Ivana and I negotiated the terms of the transaction.
Q: After your negotiation with Ivana, did you reduce your agreement into writing?
A: Yes, we drafted and signed an instrument.
Q: Do you know the contents of this instrument?
A: Yes.
Q: Will you tell the court the contents of this instrument?
If you are Ivana’s counsel, will you object to the last question? Explain.
In a criminal case for homicide, the prosecution offered Austin as witness to prove that Titus admitted to him the killing of the victim. At the trial, Austin answered these questions from the public prosecutor:
Q: Did you witness the killing of the victim?
A: No, ma’am.
Q: What were you doing when the victim was killed?
A: I was sleeping, ma’am.
Q: Why are you testifying against Titus?
A: Because Titus admitted to me that he killed the victim.
Q: What did Titus tell you?
Immediately, Titus’s counsel objected to the question on the ground that the answer of Austin would be hearsay and inadmissible in evidence. If you are the judge, how will you rule on the objection? Explain.
Zeinab, Glenda, and Rosmar had several business dealings. Zeinab purchased from Glenda PHP 1,000,000.00 worth of beauty products. On the other hand, Rosmar borrowed from Glenda PHP 2,000,000.00 as additional capital. Zeinab and Rosmar promised to pay their respective obligations to Glenda after one year. On due date, Zeinab paid Glenda only PHP 700,000.00 while Rosmar did not pay any amount despite repeated demands. Aggrieved, Glenda filed a complaint to recover PHP 2,300,000.00 against Zeinab and Rosmar before the Regional Trial Court (RTC). Does the RTC have jurisdiction over the complaint? Explain.
Ulrich is resident and owner of a house and lot situated in Pasay City. Thereafter, Ulrich discovered a deed of real estate mortgage over the house and lot which he supposedly executed to secure a loan from Nigel. The mortgage contract contained a stipulation that “all civil actions arising from or connected with this instrument or any of its provisions shall be brought before the proper courts of Bacolod City, to the exclusion of all other venues of action which are hereby expressly waived.” Aggrieved, Ulrich filed against Nigel an action to declare void the spurious deed of real estate mortgage before the Regional Trial Court in Pasay City. In his answer, Nigel raised an affirmative defense that the venue was improperly laid. The action must be filed exclusively in Bacolod City pursuant to the mandatory venue stipulation. Which between Pasay City and Bacolod City is the proper venue for the action to nullify the deed of real estate mortgage? Explain.
Gomez died leaving his wife Morticia and daughter Wednesday. Thereafter, Morticia filed a petition for probate of Gomez’s holographic will before the Regional Trial Court (RTC). The holographic will contained a detailed distribution of Gomez’s estate, Wednesday opposed the petition on the ground that it failed to allege that earnest efforts have been made among the surviving family members towards an amicable settlement of the estate of the deceased. The RTC dismissed the petition for probate absent compliance with a condition precedent as mandated by Article 151 of the Family Code. Is the RTC correct in dismissing the petition for probate for failure to allege earnest efforts toward a compromise? Explain.
The Department of Public Works and Highways (DPWH) launched an infrastructure project that will connect the major highways in the country. Trevor’s real property situated in Bacoor, Cavite will be affected by the implementation of the project. The DPWH, through the Office of the Solicitor General, then initiated expropriation proceedings with motion for the urgent issuance of a writ of possession. The DPWH attached a manager’s check equivalent to 100% of the zonal valuation of Trevor’s property and indicated the Office of the Clerk of Court, Regional Trial Court (RTC) of Bacoor, Cavite as payee. The DPWH furnished Trevor with copies of the complaint, motion, and manager’s check. The motion was not set for hearing. Thereafter, the RTC issued the writ of possession. Trevor questioned the propriety of the issuance of the writ of possession because he was not afforded due process in determining the valuation of his real property. Was the writ of possession validly issued in the expropriation case even without a hearing? Explain.
Myrna leased her real property to Geybin for a period of one year. However, Geybin refused to vacate the premises after the expiration of the lease. Myrna then filed against Geybin an unlawful detainer case. The Metropolitan Trial Court (MeTC) ruled in favor of Myrna and ordered Geybin to surrender the real property. The judgment of the MeTC lapse into finality but was not enforced. For humanitarian reasons, Myrna allowed Geybin to stay on the real property provided he will surrender its possession when needed. Thereafter, Myrna demanded from Geybin to vacate the premises but was refused. Myrna filed against Geybin another unlawful detainer case. In his answer, Geybin argued that the second ejectment case is barred by the prior final judgment in the first ejectment case. Does res judicata bar the institution of the second unlawful detainer case? Explain.
Amor filed against Yoda and the Register of Deeds an action for reconveyance, nullity of sale, and cancellation of certificate of title before the Regional Trial Court (RTC). Amor alleged that Yoda unlawfully obtained a certificate of title when he registered the disputed land in his name based on a falsified deed of sale. In due course, the RTC found Amor as the lawful owner of the realty and declared the sale void. However, the RTC failed to expressly include in the dispositive portion the cancellation of the certificate of title. The decision became final and executory. Amor moved for clarificatory inquiry about the omission in the dispositive portion. The RTC clarified its final judgment and required the Register of Deeds to cancel the certificate of title. Aggrieved, Yoda questioned the RTC’s course of action and argued that it cannot modify a final judgment to correct perceived errors of law and fact. Did the RTC violate the doctrine of immutability of final judgment when it required the Register of Deeds to cancel the certificate of title? Explain.
The Ombudsman filed an information against City Mayor Isidro for violation of Section 3(e) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act before the Sandiganbayan. The information alleged that Mayor Isidro, “an incumbent City Mayor with Salary Grade 30, while in the performance of his official and administrative functions, acting with evident bad faith and manifest partiality, did then and there willfully, unlawfully and criminally give unwarranted benefits to ABC Corporation by allowing it to operate a dumpsite without the necessary environmental permits and clearances causing undue injury to the residents who had to endure the stench, flies, rats and mosquitoes emanating from the dumpsite.” Mayor Isidro sought to dismiss the criminal case for lack of jurisdiction and explained that the Regional Trial Court (RTC), not the Sandiganbayan, has authority to decide the controversy. Which between the Sandiganbayan and the RTC has proper jurisdiction over the criminal case? Explain.
The Philippine Drug Enforcement Agency (PDEA) received a tip from its confidential informant that Aidan was selling dangerous drugs in his residence in Quezon City. The PDEA agents conducted surveillance and confirmed the illegal activity. The PDEA agents then filed an application for search warrant before the Regional Trial Court (RTC) of Manila. The PDEA agents stated that Aidan has two kilos of shabu in his residence ready for disposal. The PDEA agents added that they will use two body-worn cameras. The Executive Judge of the RTC of Manila granted the application and issued a search warrant. The PDEA agents enforced the warrant and seized two kilos of shabu from Aidan. Is the issuance of search warrant valid? Explain.
The Metropolitan Trial Court (MeTC) convicted Ivanka of theft and imposed upon her the indeterminate penalty of one year and eight months, as minimum, to three years, six months and 21 days, as maximum. Ivanka timely filed a notice of appeal. The MeTC then transmitted the records of the criminal case to the Regional Trial Court (RTC). Thereafter, the RTC directed Ivanka to file a memorandum of appeal. However, Ivanka failed to submit here memorandum despite notice. The RTC then dismissed Ivanka’s appeal for failure to file the required memorandum. Did the RTC properly dismiss Ivanka’s appeal for failure to file the required memorandum? Explain.
Hermie and his 11-year old son Karter are residing in the province. Vincent, a talent manager, recruited Karter to be a child actor. Hermie agreed and gave parental consent. Vincent brought Karter in Manila. Vincent locked Karter in a small room and obliged him to have sex with clients. After one month, Vincent brough Karter inside an operating room and removed one of his corneas and a large portion of his skin. The operatives raided the premises, rescued Karter, and arrested Vincent. The social worker interviewed Karter who narrated how he was recruited, detained, sexually abused, and subjected to organ removal. The psychologist also diagnosed Karter with post-traumatic stress disorder. The prosecution charged Vincent with qualified human trafficking. However, Karter refused to testify because of severe trauma. At the trial, the prosecution called the social worker to the witness stand to establish the elements of the offense charged based on Karter’s statements during the interview. Vincent objected on the ground that the testimony of the social worker is inadmissible for being hearsay. Is the testimony of the social worker hearsay? Explain.
Esnyr filed against Fonzie a complaint for sum of money with prayer for preliminary attachment. Esnyr alleged that Fonzie failed to pay the consideration arising from their contract of service. The trial court granted the provisional remedy and levied Fonzie’s property. However, Fonzie died during the pendency of the proceedings. Accordingly, the heirs of Fonzie moved to dismiss the case and to dissolve the writ of preliminary attachment. The heirs of Fonzie argued that the writ of preliminary attachment would adversely affect their right to dispose the estate. The trial court dismissed the case and dissolved the writ of preliminary attachment. Did the trial court properly dismiss the case and dissolve the writ of preliminary attachment? Explain.
Virgil filed a disbarment complaint against Atty. Flores for dishonest and deceitful conduct. Virgil alleged that he paid a substantial amount to Atty. Flores who promised to facilitate the release of a favorable judgment. The operatives then arrested Atty. Flores for selling fake court decisions. As supporting evidence, Virgil submitted screenshots of text messages exchanged between him and Atty. Flores, to wit: “If you send PHP400,000.00 then you will surely win the case!”; “Any … I already deposited the amount, thank you.”; “Okay, received … let’s wait for a month according to the judge.” However, Atty. Flores argued that the records are bereft of any proof showing that the text messages originated from a phone number registered in his name. Thus, the text messages are inadmissible in evidence. Are the text messages inadmissible in evidence? Explain.
Rigor, Marites and Lena are best friends. Eventually, Rigor married Marites but they separated due to irreconcilable differences. After five years, Marites visited Rigor in his apartment for possible reconciliation. Marites was surprised to discover that Rigor and Lena were already living together as common law partners. Due to extreme jealousy, Marites physically assaulted Lena who sustained major contusions and trauma. The public prosecutor charged Marites with serious physical injuries. At the trial, the prosecution called Rigor in the witness stand to testify on the incident. Marites invoked the marital disqualification rile which prohibits the spouses from testifying against one another during their marriage. Marites argued that her marriage with Rigos remains valid and existing despite their separation. The prohibition must apply to bring back solidarity and harmony in their marital relationship. Is the marital disqualification rule applicable between Rigor and Marites? Explain.
Atty. Perez induced Eunice to invest money in a trading business with guaranteed profits. Atty. Perez assured Eunice that the business was doing well. Eunice agreed and delivered to Atty. Perez PHP 10,000,000.00 as capital investment. Atty. Perez issued to Eunice postdated checks with amounts representing her capital and expected profits. Thereafter, Eunice discovered that the trading business was a sham and that the checks were all drawn against a closed account. Aggrieved, Eunice filed against Atty. Perez a criminal action for estafa and a disbarment complaint for gross misconduct. Atty. Perez sought to suspend the disciplinary charge against him pending resolution of the criminal proceedings. Atty. Perez explained that his innocence or acquittal constitutes a prejudicial question to his administrative liability arising from similar incidents. Does the pending criminal action constitute a prejudicial question to warrant the suspension of the disbarment case? Explain.
Colin is a strict team leader who earned the disdain and displeasure of his co-employees. Colin started to receive text messages and calls from unknown mobile numbers warning him that his days are numbered. Colin reported the threats to his manager. After investigation, the manager decided to transfer Colin to another station for security reasons. Colin repeatedly requested from his manager to disclose the details of the investigation but was refused. Aggrieved, Colin filed a petition for issuance of writ of habeas data to stop his involuntary transfer to another station which allegedly amounts to constructive dismissal. Colin also claimed that the unjustified refusal of the management to disclose the basis of his transfer constitutes serious threat to his rights to privacy and liberty. Will the petition for habeas data prosper to protect Colin’s right to security of tenure? Explain.
Atty. Cassandra, a solo legal practitioner, hired Sandro as a legal researcher. Atty. Cassandra has an appeal brief due on September 25, 2024. However, Atty. Cassandra contracted monkeypox and suffered high fever, severe headache, and muscle fatigue. Atty. Cassandra then instructed Sandro to finish the appeal brief, affix her signature, and file the pleading with the Court of Appeals. Did Atty. Cassandra violate any provision of the Code of Professional Responsibility and Accountability? Explain.
Francis, through Atty. Kyle, charged Madam Toyoh with violation of Presidential Decree No. 1612 or the Anti-Fencing Law for purchasing a vintage vehicle knowing that it proceeds from the crime of carnapping. Madam Toyoh hired Atty. Caleb as counsel and confessed to him that she is guilty of the offense. Atty. Calen promised Madam Toyoh that he will do anything to prove her innocence. Atty. Caleb then reached out to Francis and negotiated for an amicable settlement that resulted n the execution of a release, quitclaim, and waiver of rights. Atty. Kyle discovered the compromise agreement and noticed some unfair provisions. Atty. Kyle filed against Atty. Caleb an administrative case for impropriety. On the other hand, Atty. Caleb countered that the ethical standards in the legal profession mandates lawyers to encourage clients to avoid and settle any controversy. Atty. Caleb added that the compromise agreement is beneficial to both parties. Did Atty. Caleb violate any provision of the Code of Professional Responsibility and Accountability? Explain.
Atty. Diwata, a suspended lawyer, created a professional social media page and maintained poser accounts which she used across various social networks. Atty. Diwata, during her livestream, spread fake news that the Court’s Strategic Plan for Judicial Innovations 2022-2027 failed to achieve its major target outcomes and had prejudiced the legal profession. Particularly, Atty. Diwata launched a social media campaign against the Code of Professional Responsibility and Accountability and claimed that it is akin to an ex post facto law because its provisions are given retroactive effect. May the Supreme Court discipline Atty. Diwata for her social media activities? Explain.
2024 BAR EXAMINATIONSCOMMERCIAL AND TAXATIONS LAWSEPTEMBER 8, 20242:00 P.M. – 6:00 P.M.
Nympha, a famous author, collaborated with Tobias, a novice illustrator, to create a children’s book. Tobias offered his services for free. Nympha gave Tobias the manuscript and discussed with him the inspiration for the characters. Nympha envisioned a story about two best friends who had a huge fight but later realized the value of forgiveness. Tobias drew the characters based on Nympha’s specifications and instructions. Nympha then published the book and claimed sole copyright ownership. Nympha argued that she is the author not only of the text but also the images in the book since Tobias exactly adopted her idea. Is Nympha the copyright owner of the images or drawings in the book? Explain.
In 1984, the Nova Family established the North Nova, Inc. (NNI), a pharmaceutical company. On August 31, 1984, NNI was issued its certificate of incorporation with corporate term of 40 years. On August 31, 2024, the corporate term of NNI expired without the board of directors renewing its corporate existence. However, the Nova Family continued NNI’s business operations. South Moon, Inc. (SMI), a rival company, questioned the Nova Family’s action. SMI argued that the Nova Family cannot continue to operate NNI without reviving its corporate existence. Is the Nova Family’s continued operations of NNI valid? Explain.
Ernest Bicycle Corporation (EBC) and Max Speed Corporation (MSC) are the leading manufacturers and sellers of electric bicycles in the country. EBC and MSC offer their bestselling models at PHP 25,000.00 per unit. IN 2023, Gryffin Pedals, Inc. (GPI) entered the market and sold electric bicycles with features similar to EBC and MSC’s bestselling models for only PHP 20,000.00. GPI has no physical stores and offers its products in digital marketplaces. After a year, GPI had 75% share of the market leading EBC and MSC at 15% and 10% shares, respectively. EBC and MSC filed a complaint before the Philippine Competition Commission and alleged that GP is fast monopolizing the electric bicycles market because of its dominant position. Will the complaint against GPI for violation of the competition laws prosper? Explain.
Audrey read the 24-hour rush sale from Easy Shopping, a known digital marketplace, which offers free shipping plus 50% cash back for purchases worth at least PHP10,000.00. Audrey checked out several items and placed the orders pursuant to the promotion. Easy Shopping accepted the orders and marked them “pending payment”. However, Audrey’s digital wallet had insufficient funds and was reloaded only the following day. At that time, the cashback and free shipping promotions were no longer available. Audrey then demanded from Easy Shopping to honor their transaction based on the promotion and presented a screenshot of her orders as supporting evidence. On the other hand, Easy Shopping countered that the transaction is unenforceable absent a written contract and that Audrey must pay the regular price and normal shipping rate. Is the transaction enforceable on the basis of the screenshot of Audrey’s orders with Easy Shopping? Explain.
In 2022, Annie, Brenda, Clara, Donna, and Enola formed Nurturing Family Organization (NFO), a corporation with the principal purpose of helping single parents. Gregory, a wealthy philanthropist, donated to NFO a parcel of land through a public document. Clara accepted the donation in the same public instrument because NFO was not yet registered with the Securities and Exchange Commission (SEC). In 2023, the SEC issued a certificate of incorporation in favor of NFO. In 2024, Clara died and her heirs included the donated land in the settlement of her estate. The heirs of Clara argued that she owned the real property and not NFO which lacked legal personality at the time of donation. Is the donation of real property in favor BFO valid despite its lack of legal personality? Explain.
Pierre and Fonzi derived money from the illegal trade of Philippine wildlife like pangolins, tarziers, and palm civets. Pierre and Fonzi collected PHP 2,000,000.00 each month which they delivered to Phoebe, an art collector. Phoebe used the funds to buy high-value paintings which she auctioned off in art galleries. The police officers tracked down the unlawful wildlife trading and arrested Phoebe. The operatives charged Phoebe with money laundering. At the trial, Phoebe argued that she should be acquitted of the charge because she did not participate in the wildlife trading. Is Phoebe criminally liable for money laundering? Explain.
Nina and Roxanne are shareholders of Essean & Essaiah Corporation (EEC) engaged in the pet supplies business. In 2023, the Board of Directors declared surplus profits and distributed dividends to the shareholders. The Board of Directors likewise released the shareholders with unpaid subscriptions from their obligations. Accordingly, Nina and Roxanne no longer settled the unpaid balance of their subscriptions. Upon inspection of corporate books, however, it was revealed the EEC has been experiencing insolvency for the last three years. In 2024, the directors and shareholders dissolved EEC during their annual meeting and divided corporate properties and assets among themselves. Aggrieved, the creditors of EEC filed an action against Nina and Roxanne to collect the corporate debts. In their answer, Nina and Roxanne invoked the distinct personality of EEC from its shareholders. Nina and Roxanne added that they are not privy to be transactions between EEC and its creditors. May the creditors of EEC run after Nina and Roxanne to satisfy their claims? Explain.
Felix, Ivan and Ruth formed a partnership to operate a coffee shop. Felix and Ivan provided the capital while Ruth contributed her labor and industry. Within the coffee shop, Felix opened his own plant kiosk and Ruth put up her own souvenir shop. Whereas Ivan set up a coffee stall two blocks away from the coffee shop. May the partners Felix, Ivan, and Ruth lawfully engage in their separate businesses? Explain.
Dory is a video bolgger with 500,000 subscribers. Dory documented her life in law school and uploaded the videos in social media platforms. Dory earned PHP 100,000.00 for each video that gets a hundred thousand views. In one video, Dory shared her difficulties in reading hundreds of cases and the application of penalties in Criminal Law. Byrom, a law student, uploaded a 10-minute video in social media using a 30-second clip from Dory’s vlog showing the case list in Criminal Law. Byron shared his study habits and discussed how a law student like Dory can easily memorize the doctrine on the list. Byron’s video got 1,000,000 views and earned more than what Dory gained. Dory envied Byron and sued him for copyright infringement and argued that he used her content for monetary gain. Is Byron liable for copyright infringement? Explain.
Express Innovation Corporation (EIC) applied for registration with the Securities and Exchange Commission (SEC). The EIC submitted its proposed Articles of Incorporation which reads:
First: That the name of the corporation shall be, “Express Innovation Corporation”
…..
Third: That the principal office of the corporation is located in Sakurajima, Konohana Ward, Osaka, Japan.
Ninth: That Haru Nikko, a resident of Japan, has been elected by the subscribers as the Treasurer of the Corporation to act as such until after the successor is duly elected and qualified in accordance with the by-laws, That as Treasurer, authority has been given to receive in the name and for the benefit of the corporation, all subscriptions, contributions or donations paid or given by the subscribers or members, who certified the information set forth in the seventh and eighth clauses above, and that the paid-up portion of the subscription in cash and/or property for the benefit and credit of the corporation has been duly received.
If you are the SEC Examiner, will you recommend the approval of the Articles of Incorporation? Explain.
Duke is a resident of an exclusive subdivision. Duke always heard loud cars and motorcycles passing through the neighborhood at night. Duke then set up a closed-circuit television (CCTV) at his gate and recorded the rowdy vehicles and their plate numbers. Thereafter, Duke requested from the Land Transportation Office (LTO) the names and addresses of the registered owners of the vehicles. Duke explained that he will use the CCTC footage as supporting evidence in his complaint for damages against the vehicle owners. However, the LTO denied the request on the ground that personal information of vehicle owners can be disclosed without their consent. Is the LTO correct in denying Duke’s request for information? Explain.
Blaine Builders Corporation (BBC) has a total of 200,000 outstanding shares which are all entitled to vote. However, 10,000 of the shares are under dispute of subject matter of pending litigations. Harold and Joaquin are BBC’s major stockholders. Harold called a meeting where stockholders representing 98,400 shares attended and voted for new members of the board of directors. Joaquin filed an election protest and claimed that there was no quorum in the meeting which shall consist of the stockholders representing a majority of the outstanding capital stock. Harold insisted that there is a quorum after excluding the 10,000 disputed shares. Is there a required quorum in the stockholders’ meeting that elected the new members of the board of directors? Explain.
Justin opened a peso savings account with the Ozzy Pay Bank (OPB) where he deposited his earnings. In 2024, Justin went to OPB to verify his account. The OPB showed to Justin the transaction history and informed that he had only PHP 100.00 remaining balance after a series of withdrawals. Justin denied the transactions and claimed that his signatures appearing on the withdrawal slips in the sum of PHP 3,000,000.00 were forged. The investigation revealed that an impostor forged the signature on the withdrawal slip sand delivered the amounts to his conspirator who opened a peso savings account with OPB using the funds as initial deposit. Aggrieved, Justin filed a complain for sum of money against OPB and alleged that it was negligent in allowing the unauthorized withdrawals. Meantime, the trial court directed the OPB to produce the bank records of the conspirotr. The OPB refused contending that the conspirator’s bank account is not the subject of litigation. Did the OPB validly refuse to disclose the conspirator’s bank records? Explain.
Flavio obtained from Safe Assurance Corporation (SAC) through its agent Laureen, a fire insurance policy over his residential house for a period of one year from August 25, 2024 to August 24, 2025. Flavio delivered on August 26, 2024 a check representing premium payment to Laureen who then issued an acknowledgement receipt. On August 27, 2024, a fire completely razed Flavio’s house. Oblivious of the incident, Laureen deposited the check on August 28, 2024 to SAC’s bank account and was credited on the same day. Thereafter, Flavio filed against SAC an insurance claim. However, SAC denied the claim and argued that there was no payment of premium yet to make the insurance policy effective at the time of loss. SAC explained that it received the premium payment only on August 28, 2024 or after the fire occurred on August 27, 2024. Is there a valid and binding insurance contract between SAC and Flavio? Explain.
Sierra Electronics Inc. (SEI) has an outstanding capital stock consisting of 100 common shares and 100 non-voting preferred shares. The common shares are held by Filipino citizens while the preferred shares are held by foreigners. SEI planned to buy real property and establish manufacturing plant in the Philippines. May the SEI own land in the Philippines? Explain.
The City Treasurer served to Luminous Star Corporation (LSC) a Notice of Assessment (NOA) for basic local business taxes (LBT) in the amount of PHP900,000.00 exclusive of interest and penalties. LSC filed a protest before the City Treasurer but was denied. LSC appealed tot he Metropolitan Trial Court (MeTC) and prayed for a writ of preliminary injuction to prevent the collection of assessed taxes. The City Treasurer opposed the application for injunctive relief and contended that the courts cannot enjoin the collection of taxes. May the MeTC issue an injunctive relief against the City Treasurer from collecting local taxes?
On August 23, 2024, Topaz Gems Industries (TGI) filed witht he Bureau of Internal Revenue (BIR) an administrative claim for refund of overpaid final withholding tax on dividends paid in 2023. On August 28, 2024, TGI field a judicial claim for refund before the Court of Tax Appeals (CTA). The BIR opposed the judicial claim for refund and contended that the CTA lacks jurisdiction over the case. The BIR added that the judicial claim was premature having been filed without prior resolution of the administrative claim. Does the CTA have jurisdiction over the judicial claim for refund? Explain.
Fritzie Presley Inc. (FPI) is a domestic corporation engaged in Value Added Tax (VAT) zero0rated transactons. In the second quarter of 2022, the input taxes of FPI from zero-rated sales amounted to PHP 9,811,152.02. The accountant of FPI advised to refund the input taxes and not to offset it with output taxes. On Jully 10, 2023, FPI filed a claim to refund the input taxes before the Bureau of Internal Revenue (BIR) but was denied. FPI elevated the case to the Court of Tax Appeals (CTA). Meantime, the BIR’s assessment against FPI for deficiency output VAT for the second quarter of 2022 in the amount of PHP8,501,355.53 became final and executory. After trial, the CTA granted FPI’s claim for refund but only for PHP 1,309,796.49 representing the difference between the excess nput taxes and deficiency output taxes. The CTA held that since FPI has deficiency taxes, and only the balance should be allowed for refund. On the other hand, FPI argues that the taxpayer-claimant has the option to charge the input taxes from zero-rated sales against the output taxes. May the CTA offset the input taxes against deficiency output taxes even without the taxpayer-claimant choosing this option? Explain.
The Court of Tax Appeals (CTA) acquitted Stephen in a criminal case for non-filing of Annual Income Tax Return (ITR) under Section 255 of the Tax Code. The CTA ruled that the prosecution filed to prove Stephen’s guilt. However, the CTA imposed upon Stephen civil liability for deficiency income tax arising from the non-filing of ITR. Stephen questioned the civil aspect of the case and argued that his acquittal in the criminal case exonerated him from any civil liability arising from the offense. May the CTA impose civil liability to pay taxes upon Stephen despite his acquittal in the criminal case? Explain.
On June 30, 2023, the Commissioner of Internal Revenue (CIR) served a Letter of Authority (LOA) to Waldolf Weston Corporation (WWC). The LOA authorized Revenue Officer (RO) Arjun and Group Supervisor (GS) Simone to examine WWC’s accounting books and records for the taxable year 2021. Thereafter, WWC received a Memorandum-Referral Letter signed by Revenue District Officer (RDO) Desmond authorizing RO Valerie and GS Warren to continue the audit investigation. The memorandum noted that RO Arjun and GS Simone were already reassigned to another district office. After proper issuance of the Notice of Discrepancy and Preliminary Assessment Notice, RO Valerie and GS Warren jointly recommended that the CIR issue a Final Assessment Notice (FAN) against WWC because it had unreported gain subject to income tax for 2021. The CIR adopted the recommendation and served a FAN upon WWC. Aggrieved, WWC challenged the validity of the Memorandum-Referral Letter on the ground that it is not equivalent to a LOA. Is the Memorandum-Referral Letter valid to examine WWC’s accounting books and records? Explain.
2024 BAR EXAMINATIONSPOLITICAL AND PUBLIC INTERNATION LAWSEPTEMBER 8, 20248:00 A.M – 12 NOON
The Senate conducted investigations on how to strengthen the efforts of the government against fugitives from justice after the prominent personalities covertly left the country to escape prosecution. The Senate invited Winston as a resource person. Winston is a notorious drug dealer who managed to avoid his warrants of arrest and hold departure orders. At the hearing, the Senators asked Winston about the modus operandi and the names of immigration officers who helped him escape. Yet, Winston responded: “I will leave it to the Senate to find out the information about these immigration officers.” Dissatisfied, the Senators immediately cited Winston in contempt and ordered his detention until he answers the question. Did the Senate lawfully cite Winston in contempt? Explain.
Rocco, a lawyer, filed a petition for mandamus to compel the President of the Philippines to defend the West Philippine Sea against Chinese invasion. Rocco alleged that the President has a ministerial duty to protect the national territory. Rocco likewise asked the President to bring the territorial dispute before the United Nations Security Council after diplomatic protests proved futile. Will the petition for mandamus prosper? Explain.
The Zuri Republic and Wanda Republic are members of the United Nations Convention on the Law of the Sea (UNCLOS). In 2024, the Permanent Court of Arbitration rejected Zuri Republic‘s claim over the entire South Wrigley Sea and declared it as part of Wanda Republic‘s exclusive economic zone. However, Zuri Republic refused to recognize the arbitral award and continued its reclamation activities. Thereafter, Xena Republic, a non-UNCLOS state, filed a protest against Zuri Republic before the United Nations Security Council to respect the arbitral award and to stop reclamation efforts that destroy the fragile ecosystem. The Zuri Republic then challenged the legal standing of Xena Republic and agreed that only state parties of the UNCLOS can enforce the arbitral award. Does Xena Republic have legal standing to initiate the protest? Explain.
In the 2022 elections, Pho Goh, 27 years old, won as provincial governor. Pho Goh took his oath of office and discharged his duties. Maxwell, a registered voter, filed a petition for quo warranto against Pho Goh on the ground that he cannot hold the Office of the Provincial Governor. Maxwell alleged that Pho Goh was born in Vietnam and submitted his Vietnamese passport as conclusive evidence that he is not a Filipino citizen. In contrast, Pho Goh opposed the petition and presented his belatedly registered birth certificate stating that his mother is a natural born citizen of the Philippines. Is Maxwell correct that Pho Goh cannot hold the Office of the Provincial Governor? Explain.
Omar, an Iranian national, was admitted in the Philippines as a refugee. After more than 10 years in the Philippines, Omar filed a petition for naturalization as a Filipino citizen. The trial court found that Omar possessed all the qualifications and none of the disqualifications to become a Filipino citizen. However, the Office of the Solicitor General opposed the petition because the laws of Iran do not grant reciprocal right to Filipinos to become naturalized citizens. Will the lack of the reciprocity requirement bar Omar’s application for naturalization? Explain.
The Congress passed a law prohibiting the “transmission of commercial electronic communications with the use of a computer system which seeks to advertise, sell, or offer products and services without prior consent of the recipient.” The digital marketplace Buy and Ship Online (BSO) questioned the constitutionality of the law for being a class legislation because it specifically targets online businesses. The BSO added that the measure must be tested using the “strict scrutiny test” because it interferes with the exercise of fundamental rights since commercial advertisements are forms of free speech and expression. In contrast, the Office of the Solicitor General invoked the “rational basis test” and argued that the State has a legitimate interest to protect the public from unsolicited advertisements. Considering the levels of juridical scrutiny, what is the proper test to determine the constitutionality of the subject law? Explain.
Andrew, a long-time advocate of women’s rights, is a bona fide member of the BINI-bini Party registered with the Commission of Elections under the party-list system. BINI-bini Party seeks to represent the women sector in the House of Representatives. In the 2022 elections, BINI-bini Party secured one seat, and its first nominee, Andrew, took his oath of office and started to serve his term as a Member of the House of Representatives. However, an electoral protest was filed against Andrew on the ground that he is not qualified to represent the women sector because he is a male. Is Andrew qualified to represent BINI-bini Party in the House of Representatives? Explain.
The Regional Trial Court issued warrants of arrest against Mayor Leroy for charges of tax evasion and graft and corruption. Mayor Leroy secretly left the country and sought refuge in Essex Republic. The Philippines requested from Essex Republic the surrender of Mayor Leroy pursuant to their extradition treaty. The Essex Republic conducted judicial investigation and established prima facie case against Mayor Leroy. The Essex Republic, through its court, issued a warrant of surrender. Mayor Leroy questioned the legality of the warrant of surrender and argued that it violated the right of non-refoulment. Is the warrant of surrender valid? Explain.
Fidel, a government official, was charged with and convicted of three separate crimes: (1) receiving a gift in connection with government contracts where he intervened in his official capacity under Section 3(b) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act; (2) acceptance of gift in connection with transactions affected by the functions of his office under Section 7(d) of the Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees; and (3) direct bribery under Article 210 of the Revised Penal Code. On appeal, Fidel invoked a violation of his right against double jeopardy when the trial court convicted him of three separate crimes. Is Fidel’s contention that his right against double jeopardy was violated correct? Explain.
Politico Film Productions (PFP) conceptualized a mockumentary called “Covidubidapdap” which will detail the poor government response during the pandemic. The Department of Health (DOH) Secretary was scared that he would be portrayed as a lazy and incompetent public officer. Thus, the DOH Secretary warned PFP that he would not approve the use or exhibition of his name or image in the film. Nevertheless, PFP began the production of the mockumentary and used the name and image of the DOH Secretary. Aggrieved, the DOH Secretary applied for injunction against PFP invoking his right to privacy. Is there a violation of the DOH Secretary’s right to privacy? Explain.
The members of the Barangay Council wanted to make the yuletide celebrations of their constituents more festive. Accordingly, the Barangay Council adopted a resolution authorizing the solicitation of funds from private individuals to build a seven-meter tall statue of “Rudolph the Red-Nosed Reindeer” in the plaza in front of the basilica. The residents from other barangays questioned the resolution for alleged violation of Section 5, Article III of the 1987 Constitution which states that “[n]o law shall be made respecting an establishment of religion, or prohibiting the free exercise thereof.” Is the barangay resolution invalid for violation of the non-establishment of religion clause? Explain.
Gabby won as Senator in the May 2022 election for a term of six years. Upon proclamation, Gabby took his oath of office before the Senate President in open session and assumed office at the start of his term. In August 2022, Senator Gabby resigned for personal reasons. In January 2023, Congress enacted a law merging two existing government agencies with a Presidential appointee as head of office. In August 2023, the President appointed former Senator Gabby as head of the merged government agencies. Is former Senator Gabby’s appointment as head of the merged government agencies valid? Explain.
In June 2024, Carina, a private citizen, filed a verified impeachment complaint against the Vice President of the Philippines for culpable violation of the Constitution and betrayal of public trust. The impeachment complaint was referred to the House of Representatives Committee on Justice. In July 2024, the House of Representatives approved the report of the Committee on Justice dismissing the impeachment complaint due to the absence of resolution or endorsement of any Member of the House of Representatives. In August 2024, a party-list representative filed a second verified impeachment complaint against the Vice President based on the same facts and grounds as the first complaint. In September 2024, the second impeachment complaint arguing that no impeachment proceeding can be initiated against the same official more than once within a period of one year. May the second impeachment complaint be dismissed for the violation of the one-year bar rule? Explain.
Under the 2020 Rules of the Senate Electoral Tribunal, any election protest against a Member of the Senate Shall be filed “within thirty (30) days after assumption office of the protestee.” Subsequently, the Senate promulgated its Internal Rules of Proceedings which shortened the period of filing the election protests “within fifteen (15) days” from assumption of office of the protestee. Is the Senate Internal Rules of Proceedings relative to election protest constitutional? Explain.
The Local Government Code allocated shares in revenue collections to local government units (LGUs) in the following manner: 23% for the provinces, 23% for the Cities, 34% for the Municipalities, and 20% for the Barangays. In 2023, the proposed General Appropriations Act (GAA) provided a different distribution scheme of revenue collections to LGUs, to wit: 25% for the provinces, 25% for the Cities, 35% for the Municipalities, and 15% for the Barangays. Congressman Macky assailed the constitutionality of this item in the proposed GAA. The House of Representative Budget Committee countered that it is within the power of Congress to enact laws to increase or decrease the just share of the LGUs in the revenues. Is the new distribution scheme in the proposed GAA lawful? Explain.
MVL, a government-owned corporation, has three Cabinet Secretaries as ex-officio members of its Board of Directors. In 2024, the MVL Board of Directors resolved to grant additional benefits to qualified corporate officers and employees. The Commission on Audit (COA) disallowed the grant of benefits because there was no prior approval of the President. However, the MVL Board of Directors invoked the alter ego principle and argued that the President deemed approved the benefits when the three Cabinet Secretaries, as ex-officio board members, voted in favor of the resolution. Is the COA correct in disallowing the grant of benefits? Explain.
Kenneth had a romantic relationship with Mabel, a 14-year old minor. Kenneth and Mabel constantly exchanged pictures through online messaging applications. One day, Kenneth rented a laptop in a computer shop and had an online chat and videocall with Mabel. Kenneth left the shop but forgot to logout his social media account. The next customer read the sensual conversations between Kenneth and Mabel as well as their nude videos and photos. The customer reported the matter to the police. Accordingly, Kenneth was charged with violation of Republic Act No. 11930 or the Anti-Online Sexual Abuse or Exploitation of Children and Anti-Child Sexual Abuse or Exploitation Materials. At the trial, Kenneth objected to the admissibility of the pictures and videos as evidence for having been obtained against his right to privacy. Are the pictures and videos admissible in evidence to prosecute Kenneth of the criminal offense? Explain.
The sovereign Republic of Handskaland, represented by Ambassador Hansen, entered into a five-year contract with Hardee Services Corporation (HSC) for the maintenance of and repair of the electrical facilities of its embassy in the Philippines. Ambassador Hansen pre-terminated the agreement after discovering HSC’s faulty electrical works. Aggrieved, HSC filed against the Republic of Handskaland and Ambassador Hansen a complaint for damages. HSC argued that Republic of Handskaland and Ambassador Hansen waived their immunity from suit when they entered into a contract. Did the Republic of Handskaland and Ambassador Hansen waive their immunity from suit? Explain.
The Regional Trial Court (RTC) convicted Luciano of illegal sale of dangerous drugs. Luciano sought reconsideration. The RTC reversed its judgement of conviction and acquitted Luciano of the crime, thus:
ORDER
For the resolution is the accused’s motion for reconsideration assailing his conviction for the offense of illegal sale of dangerous drugs. The prosecution did not file any comment. Hence, the motion is now submitted for resolution.
After perusal of the motion for reconsideration, the Court finds merit that the prosecution miserably failed to overcome the accused’s presumption of innocence.
For this reason, the motion for reconsideration is GRANTED. The accused is ACQUITTED in the criminal case for illegal sale of dangerous drugs.
The Office of the Solicitor General (OSG) questioned the order of acquittal before the Court of Appeals. The OSG explained that the RTC failed to comply with the constitutional requirements in rendering a valid judgement amounting to grave abuse of discretion. On the other hand, Luciano invoked his right against double jeopardy and argued that the order of acquittal is already final and not subject to review. Is the RTC guilty of grave abuse of discretion when it rendered the order of acquittal? Explain.
The Congress enacted the “Battered Partner Law” which amended Republic Act No. 9262 or the Anti-Violence Against Women and Their Children Act. The amendatory law changed the term “women” to “partners” to make it gender neutral and to recognize husbands and boyfriends as victims of domestic violence. The amendatory law likewise included LGBTQ+ members who are victims of domestic abuse within the coverage of the law. However, several groups and activists challenged the constitutionality of the amendatory law on the ground that it blurs the substantial distinction between men and women. As a “practice-ready” and “potentially capable” lawyer, will you support the validity of the amendatory law under the equal protection clause? Explain.
I
Lebron, a Makati resident, obtained a Php 350,000.00 loan from a bank secured by a real estate mortgage (REM) over his lot located in Quezon City with an assessment value of Php 500,000.00. Lebron failed to pay despite written demands. The bank intends to file an action for judicial foreclosure of the REM,
Where should the action for judicial foreclosure of the REM be filed in which court? Explain briefly.
II
Asya, Inc. sued Kobe a resident of Bukidnon. To serve summons, the sheriff waited in the lobby of Makati Hotel (MH), where Kobe stays whenever he is in Manila. The sheriff failed to serve the summons Kobe left the hotel for an emergency. Hours later, the sheriff asked the front desk about Kobe’s whereabouts and his room number. The hotel refused to disclose on grounds of confidentiality. The sheriff tried again the next day, but Kobe was in a conference until midnight. So, the following, day the sheriff left the summons and a copy of the complaint with MH’s chief security officer (CSO), even as the CSO refused because Kobe had already checked you by then. The sheriff thereafter filed his return, stating the dates, times and places of his attempts, the name of the CSO, and the fact that the complaint was served with the summons. When Kobe did not file an Answer, Asya, Inc. moved to declare him in default.
Was there a valid substituted service of summons? Explain briefly.
III
Ten days after service if summons, defendant Kay filed a motion to dismiss the complaint for collection of sum of money against her on the ground of improper service of summons, on the basis of which the court did not acquire jurisdiction over her person.
If you were the judge, how would you rule? Explain briefly.
IV
[This item has two questions.] Attorney Woo, the new-hired lawyer of a law firm, booked Samurai Express, a duly accredited courier within the National Capital Judicial Region, to serve a copy of a motion for reconsideration to Attorney Han, counsel of the adverse party, whose office is in the City of Manila Attorney Hann moved to deny the motion for failure to contain a written explanation as to why the motion was not served personally.
(a) Was the motion for reconsideration properly served? Explain briefly.
(b) What shall be considered as proof of service of the motion? Explain briefly.
V
Jimuel filed against his wife Jewel a petition for the declaration of nullity of their marriage, alleging as ground therefor Jewel’s psychological incapacity under article 36 of the Family Code. The court denied the petition for insufficiency of the evidence presented at the trial. Much later, Jimuel filed again a petition against Jewel for the declaration of nullity of their marriage. This time, the basis of Jimuel’s petition was the absence of a marriage license at the time their marriage was celebrated. Upon Jewel’s motion, the court dismissed the petition on the ground of res judicata by virtue of the judgment in the first suit.
Was the denial of the petition on the ground of res judicata proper? Explain briefly.
VI
Isol, Inc. supplies rotisserie chicken products to the grocery section of shopping malls. It conducts kitchen operations in refurbished house located in Palanan, a residential neighborhood. Rona, a resident of Palanan, filed an action against Isol, Inc to enjoin the operation of its kitchen on the ground that it emits intolerable odors and violates laws on waste disposal. In the same action, Rona also seeks to have Isol, Inc.’s business permit revoked because an industrial facility is not allowed by the law to be located in a residential neighborhood and Isol, Inc. failed to comply with sanitary inspection and other procedural and health requirements. In the complaint Rona filed, she likewise prayed for the issuance of a writ of preliminary injunction (WPI) to stop the kitchen operations during the pendency of the case. Isol, Inc in its verified answer, strongly opposed the prayer for WPI considering the huge financial disaster that it will suffer if the writ were to be issued, especially in light of the possibility that the suit could continue to be pending for more than a year.
Based on the foregoing may the WPI prayed for already be issued? Explain briefly.
VII
Is a prior determination of the status as a legal heir in a separate special proceeding a prerequisite to an ordinary civil action seeking the protection and enforcement of ownership right heir vested by the law of succession? Explain briefly.
VIII
Namjoon, a Korean national, and Regine, a Filipina were married in Makati City on February 14, 2012. Unfortunately, their relationship shortly turned sour and ended with a divorce by mutual agreement in South Korea. The local court in Korea granted the divorce. Wanting to marry her new boyfriend Taehyung, Regine filed a petition of the foreign decree of divorce in the Regional Trial Court (RTC) of Cebu where she resides.
The Office of the Solicitor General (OSG) opposed the petition contending that the proper remedy is a special proceeding for cancellation or correction of entries in the civil registry under Rule 108 of the Rules of Court, which can only be filed in the RTC of Makati where the marriage was celebrated and recorded in the Civil Registry of Makati.
Is the OSG’s contention tenable? Explain briefly.
IX
Notting Hill Corp. filed an action for forcible entry against the ten occupants of a parcel of land it owns. After the summary proceedings the Municipal Trial Court (MTC) rendered judgment against the ten defendants filed a notice of appeal, but failed to file a supersedeas bond to stay the judgment to vacate. Upon Notting Hill Corp.’s motion, the MTC issued a writ of execution. When Hugh, the sheriff, was implementing writ of execution, he discovered that the land was occupied by a number of families who all claimed that they were legitimate lessees of the ten defendants. Julia, one of the lessees, pleaded with Hugh, beseeching: “I’m just a lessee, standing in front of a sheriff, asking him to me stay in my home.”
May Hugh implement the writ of execution against the lessees? Explain briefly.
X
An Information for Murder was filed against the accused Demo and Onyok. It reads:
“That on or about the 9th day of March 2008, in the City of Las Piñas, Philippines and within the jurisdiction of this Honorable Court, the above, named accused, conspiring and confederating together and both of them mutually helping and adding each other; without justifiable motive, with intent to kill and with treachery and abuse of superior strength, did then and there knowingly, unlawfully and feloniously attack, assault and use personal violence upon one Angel Rosario, by then and there repeatedly hitting and beating his head with a baseball bat, thereby inflictive upon the later mortal injury which caused his death.
Contrary to law”
The accused filed a motion to quash on the ground that the Information does not conform substantially to the prescribed form.
Is the accused correct? Explain briefly.
XI
Cain was indicated under an Information charging him with the crime of Murder. He was caught by the police in flagrante delicto as the incident happened in a public place with many witnesses present. Videos of the incident were also posted online which the judge was able to watch.
During his arraignment, Cain pleaded guilty to the crime charged. The Regional Trial Court (RTC) accepted the plea because it was made voluntarily and with full understanding of the consequences. The RTC directed the Prosecution to present evidence to prove Cain’s guilt. However, the prosecution failed to present any evidence during the scheduled hearing. The RTC then ruled and found Cain guilty beyond reasonable doubt based solely on his plea of guilt.
Was Cain’s conviction proper? Explain briefly.
XII
Enumerate and describe three warrants that may be issued by the courts pursuant to the Rule on Cybercrime Warrants.
XIII
Ricky, while driving his Maerati, smashes into the Toyota Vios of Dante. Immediately after the incident, Ricky offers to pay the value of the Toyota Vios. Dante still sued Ricky criminally for Reckless Imprudence because Ricky’s wayward and speedy driving. During trial, Dante was called as a witness to testify Ricky’s offer to compromise as an admission of guilt. Ricky’s counsel objected.
If you were the judge, how would you rule on the objection? Explain briefly.
XIV
Klaus was drinking in front of his rented apartment when he suddenly heard a gunshot which came from inside the apartment owned by Luther. Klaus then saw Igor, a neighbor, going down the stairs and leaving the scene holding a gun. Klaus also witnessed Luther fall from the stairs with blood oozing from his chest. Vanya, Luther’s daughter, also rushed to Luther when he fell.
During Igor’s trial for Murder, Vanya testified and presented a flash drive containing the closed-circuit television (CCTV) footage of the scene. Said footage showed a man appearing to be Igor, armed with a gun, proceeding up the stairs and entering Luther’s apartment. In the video, the same man was seen hastily leaving the premises. Vanya further testified that she was the one who transferred to the flash drive video footage from the barangay-owned CCTV that was located outside their apartment.
When the footages were played in court and an enlarged screenshot was presented, Vanya identified the shooter as Igor. The defense objected on the ground that Vanya was not the recorder of the video footages.
Are the (CCTV) footage admissible as electronic evidence? Explain briefly.
XV
In a case for Estafa, the presecution offered the photocopy of the acknowledge receipt signed by the accused showing personal receipt of the sum of money from the private complainant to prove the amount of damage. Accused objected to the offer of the photocopy on the sole ground that it is a mere reproduction of the original in violation of the original document rule. The court overruled the accused’s objection and admitted in evidence the photocopy of the acknowledgement receipt.
Did the court err in admitting the photocopy? Explain briefly.
Samson Manufacturing, Inc. insured its own goods with Delilah Insurance for Php 2,000,000.00. The same goods were insured by Alibaba Shipping Co. with Assured Corp. for the same amount pursuant to its contract of carriage with Samson Manufacturing, Inc. Both policies warranted that no other insurance exists, and in case another insurance does exist, such would not void either policy, but in no case should the claim exceed the total amount of Php 2,000,000.00 at the time of loss.
Is this a case of double insurance? Explain briefly.
[This item has two questions.] Muviel obtained a life insurance policy from X Insurance Corp. Muviel underwent a medical examination and was certified as qualified to be insured. Unknown to X Insurance Corp., Muviel had a mild stroke some years earlier. The insurance policy expressly provided that any misrepresentation in the questionnaire filled up by Muviel for the issuance of the policy would render the policy null, void and of no effect.
(a) If Muviel dies within the two-year period from the time of issuance of the policy, will the beneficiaries of Muviel be entitled to claim the proceeds of the life insurance policy? Explain briefly.
(b) Should Muviel die after the two-year period, will your answer be the same? Explain briefly.
[This item has two questions.] Kotse Corp. in an entity that provides pre-arranged transportation services for a fee using an online-enabled platform technology that connects passengers with drivers using their own vehicles.
(a) Is Kotse Corp. a common carrier? Explain briefly.
(b) Are the drivers engaged in common carrier service? Explain briefly.
At around 4:00 p.m. of December 25, 2020, Christmas Day, Queenie and her child, Paeng, boarded a jeepney being operated by Emil and driven by Amor. Queenie was made to sit on an empty beer case at the edge of the rear entrance/exit of the jeepney with her sleeping child on her lap. When they reached an uphill incline on the road, the jeepney slid backwards. Queenie pushed both her feet against the step board to prevent herself and her child from being thrown out of the exit, but because the step board was wet, her left foot slipped and was crushed between the step board and the coconut tree which halted the jeepney’s backward motion. As a result, Queenie’s leg was badly injured and had to be amputated.
Queenie then sued Emil and Amor for breach of contract of carriage. Emil and Amor countered that the injuries Queenie sustained were due to her own fault since Amor had instructed everyone not to panic, but Queenie nevertheless tried to disembark which caused her foot to be crushed.
If you were the judge, would you hold Emil and Amor solidarily liable? Explain briefly.
FLIP Co. is engaged in a nationalized activity requiring at least 60% Filipino ownership. Its outstanding capital stock consists of 1,000,000,00 shares broken down into 400,000 non-voting preferred shares and 600,000 voting common shares out of which 20,000 are treasury shares.
How many shares of the corporation must be owned by Filipinos? Explain briefly.
Yoongi, a director of BTS Corp. PH, bought substantial shares of its major supplier, Hybe, Inc. When Hybe, Inc.’s contracts were taken up by the BTS Corp. PH Board, Yoongi not only voted for their approval but influenced other directors to do so. Later, the Hybe, Inc. contact turned out to be disadvantageous to BTS Corp. PH and caused it substantial losses.
Discuss the action/s that may be pursued against Yoongi under the Revised Corporation Code. Explain briefly.
[This item has two questions.] LOKO Co., using a fraudulent scheme, was able to sell its shares to investors. The sale proceeds were then secretly diverted by LOKO Co. to its wholly owned subsidiaries. Later, LOKO Co. became insolvent and was placed under receivership. On behalf of the investor-stockholders, the receiver demanded the inspection of the book and records of LOKO Co.’s subsidiaries.
(a) Can LOKO Co. stockholders exercise, through the receiver, their right of inspection of the books and records of LOKO Co.’s subsidiaries? Explain briefly.
(b) Is this a case of intra-corporate dispute? Explain briefly.
EXIT Corp., no longer wanting to continue with its business, transferred to Entra, Inc. under an Asset Purchase Agreement all its properties and assets including goodwill. A creditor of EXIT Corp. demanded from Entra, Inc. the payment of EXIT Corp.’s debt for the reason that the transaction amounted to a merger and, therefore, the surviving corporation, Entra, Inc., must assume the debts of the absorbed corporation, EXIT Corp.
Is the Creditor’s demand tenable? Explain briefly.
[This item has two questions.] Zui Cheneris Corp. is a pharmaceutical company operating in the Philippines since 1999. One of its products is a drug called carbamazepine under the brand name “CHENAPS”, which is an anti-convulsant used to control all types of seizure disorders of varied causes like epilepsy.
Nutty pharma, also a pharmaceutical company in the Philippines, sells citicoline under the mark “CHENAPSE”, which is indicated for the treatment of cerebrovascular disease or stroke. “CHENAPSE” was registered as a trademark by Nutty Pharma with the Intellectual Property Office of the Philippines (IPO) on September 24, 2017.
On November 29, 2017, Nutty Pharma filed the Regional Trial Court (RTC) a Complaint against Zui Cheneris for Temporary Restraining Order and/or Preliminary Injunction, alleging that Zui Cheneris’ “ CHENAPS” is confusingly similar to is registered trademark “CHENAPSE” and the resulting likelihood of confusion is dangerous because the marks cover medical drug intended for different types of illnesses.
Zui Cheneris, in its Answer, countered that: (i) it has been selling carbamazepine under the brand name “CHENAPS” since 2004; (ii) it was impossible for Nutty Pharma not to have known the existence of “CHENAPS” before the latter’s registration of “CHENAPSE” because Nutty Pharma had promoted its products in the same publication where Zui Cheneris had advertised “CHENAPS”; (iii) despite its knowledge of prior use by Zui Cheneris of “CHENAPS”, Nutty Pharma had fraudulently appropriated the “CHENAPSE” mark by registering the same with the IPO; and, (iv) as the prior user, Zui Cheneris is the owner of “CHENAPS” and the continued use by Nutty Pharma of “CHENAPSE” will cause it grave and irreparable damage, Thus, Zui Cheneris prayed for the cancellation of the trademark registration of Nutty Pharma’s “CHENAPSE”.
(a) As the RTC judge, will you enjoin Zui Cheneris from further using the mark ”CHENAPS”? Explain briefly.
(b) Is Zui Cheneris’ prayer for cancellation of Nutty Pharma’s trademark registration tenable? Explain briefly.
Bank teller Loris submitted a Suspicious Transaction Report (STR) on Marychelle, a politically exposed person (PEP), who, when asked about her deposit of Php 2,000,000.00 in cash, winked and replied “Sikreto teh”. The Anti-Money Laundering Council did not find probable cause which could support the belief that Marychelle had committed an unlawful activity or was otherwise involved in money laundering. Marychelle now wants to sue the bank and Loris for allegedly discriminating against her.
Discuss whether or not Loris and the bank are liable.
Kauff Corp. had suffered tremendous losses as a result of the COVID-19 pandemic and the resulting economic slump. From a calculation of its assets and liabilities, Kauff Corp. was technically insolvent but management believed that it had the chance to survive if its mineral properties could be exploited. Kauff Corp has the rights to several parcels of land containing nickel deposits. Nickel prices had gone up in the world market and nickel was in short supply.
The creditors of Kauff Corp. are set to file suits for collection with application for writs of attachment.
As the counsel for Kauff Corp., what legal action would you take to avert the suits and stave off insolvency and liquidation? Explain briefly.
In a Facebook livestream, an author offered his books online for sale by asking interested viewers to type in “Mine” in the chat box. A set of his books was sold to a social media influencer who later turned out to be a “joy reserver” A “joy reserver” refers to an online buyer who enthusiastically shows interest in an item, but will not actually buy it. The author made a screenshot of the social media influencer’s “Mine” message as proof of the acceptance of the offer.
Does the screenshot of the massage prove the perfection of the sale contract? Explain briefly.
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Revenue Memorandum Circular No. 34-2025
Revenue Memorandum Circular No. 32-2025
Republic Act No. 12079
2025 Filing of Annual Financial Statements and General Information Sheet
Revenue Regulations No. 012-2025
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