SYLLABUS FOR THE 2012 BAR EXAMINATIONSLEGAL AND JUDICIAL ETHICS

I. LEGAL ETHICSA. Practice of law1. Concepta) Privilegeb) Profession, not business2. Qualifications3. Appearance of non-lawyersa) Law student practiceb) Non-lawyers in courtsc) Non-lawyers in administrative tribunalsd) Proceedings where lawyers are prohibited from appearing4. Sanctions for practice or appearance without authoritya) Lawyers without authorityb) Persons not lawyers5. Public officials and practice of lawa) Prohibition or disqualification of former government attorneysb) Public Officials who cannot practice law or with restrictions6. Lawyers authorized to represent the government7. Lawyer’s oath

B. Duties and responsibilities of a lawyer1. To societya) Respect for law and legal processesb) Efficient and convenient legal servicesc) True, honest fair, dignified and objective information on legal servicesd) Participation in the improvement and reforms in legal systeme) Participation in legal education program2. To the legal professiona) Integrated Bar of the Philippines(i) Membership and duesb) Upholding the dignity and integrity of the professionc) Courtesy, fairness and candor towards professional colleaguesd) No assistance in unauthorized practice of law3. To the courtsa) Candor, fairness and good faith towards the courtsb) Respect for courts and judicial officersc) Assistance in the speedy and efficient administration of justiced) Reliance on merits of his cause and avoidance of any impropriety which tendsto influence or gives the appearance of influence upon the courts4. To the clientsa) Availability of service without discrimination(i) Services regardless of person’s status(ii) Services as counsel de officio(iii) Valid grounds for refusalb) Candor, fairness and loyalty to clients(i) Confidentiality rule(ii) Privileged communications(iii) Conflict of interest(iv) Candid and honest advice to clients(v) Compliance with laws(vi) Concurrent practice of another professionc) Client’s moneys and properties(i) Fiduciary relationship(ii) Co-mingling of funds(iii) Delivery of funds(iv) Borrowing or lendingd) Fidelity to client’s causee) Competence and diligence(i) Adequate protection(ii) Negligence(ii) Collaborating counsel(iii) Duty to apprise clientf) Representation with zeal within legal bounds(i) Use of fair and honest means(ii) Client’s fraud(iii) Procedure in handling the case

g) Attorney’s fees(i) Acceptance fees(ii) Contingency fee arrangements(iii) Attorney’s liens(iv) Fees and controversies with clients(v) Concepts of attorney’s fees(a) Ordinary concept(b) Extraordinary concepth) Preservation of client’s confidences(i) Prohibited disclosures and use(ii) Disclosure, when allowedi) Withdrawal of services

C. Suspension, disbarment and discipline of lawyers1. Nature and characteristics of disciplinary actions against lawyersa) Sui generisb) Prescription2. Grounds3. Proceedings4. Discipline of Filipino lawyers practicing abroad

D. Readmission to the Bar1. Lawyers who have been suspended2. Lawyers who have been disbarred3. Lawyers who have been repatriatedE. Mandatory Continuing Legal Education1. Purpose2. Requirements3. Compliance4. Exemptions5. SanctionsF. Notarial Practice1. Qualifications of notary public2. Term of office of notary public3. Powers and limitations4. Notarial register5. Jurisdiction of notary public and place of notarization6. Revocation of commission7. Competent evidence of identity8. Sanctions

II. JUDICIAL ETHICSA. Sources1. New Code of Judicial Conduct for the Philippine Judiciary (Bangalore Draft)2. Code of Judicial ConductB. Qualities1. Independence2. Integrity3. Impartiality4. Propriety5. Equality6. Competence and diligenceC. Discipline of members of the Judiciary1. Members of the Supreme Courta) Impeachment2. Lower court judges and justices3. Grounds4. Impeachment5. Sanctions imposed by the Supreme Court on erring members of the Judiciary

INCLUDE: Pertinent Supreme Court decisions promulgated up to January 31, 2012.

SYLLABUS FOR THE 2012 BAR EXAMINATIONSTAXATION

I. General Principles of TaxationA. Definition and concept of taxationB. Nature of taxationC. Characteristics of taxationD. Power of taxation compared with other powers1. Police power2. Power of eminent domainE. Purpose of taxation1. Revenue-raising2. Non-revenue/special or regulatoryF. Principles of sound tax system1. Fiscal adequacy2. Administrative feasibility3. Theoretical justiceG. Theory and basis of taxation1. Lifeblood theory2. Necessity theory3. Benefits-protection theory (Symbiotic relationship)4. Jurisdiction over subject and objectsH. Doctrines in taxation1. Prospectivity of tax laws2. Imprescriptibility3. Double taxationa) Strict senseb) Broad sensec) Constitutionality of double taxationd) Modes of eliminating double taxation4. Escape from taxationa) Shifting of tax burden(i) Ways of shifting the tax burden(ii) Taxes that can be shifted(iii) Meaning of impact and incidence of taxationb) Tax avoidancec) Tax evasion5. Exemption from taxationa) Meaning of exemption from taxationb) Nature of tax exemptionc) Kinds of tax exemption(i) Express(ii) Implied(iii) Contractuald) Rationale/grounds for exemptione) Revocation of tax exemption6. Compensation and set-off7. Compromise8. Tax amnestya) Definitionb) Distinguished from tax exemption9. Construction and interpretation of:a) Tax laws(i) General rule(ii) Exceptionb) Tax exemption and exclusion(i) General rule(ii) Exceptionc) Tax rules and regulations(i) General rule onlyd) Penal provisions of tax lawse) Non-retroactive application to taxpayers(i) ExceptionsI. Scope and limitation of taxation1. Inherent limitationsa) Public purposeb) Inherently legislative(i) General rule(ii) Exceptions(a) Delegation to local governments(b) Delegation to the president(c) Delegation to administrative agenciesc) Territorial(i) Situs of taxation

(a) Meaning(b) Situs of income tax(1) From sources within the Philippines(2) From sources without the Philippines(3) Income partly within and partly without the Philippines(c) Situs of property taxes(1) Taxes on real property(2) Taxes on personal property(d) Situs of excise tax(1) Estate tax(2) Donor’s tax(e) Situs of business tax(1) Sale of real property(2) Sale of personal property(3) VATd) International comitye) Exemption of government entities, agencies, and instrumentalities2. Constitutional limitationsa) Provisions directly affecting taxation(i) Prohibition against imprisonment for non-payment of poll tax(ii) Uniformity and equality of taxation(iii) Grant by congress of authority to the president to impose tariff rates(iv) Prohibition against taxation of religious, charitable entities, andeducational entities(v) Prohibition against taxation of non-stock, non-profit institutions(vi) Majority vote of congress for grant of tax exemption(vii) Prohibition on use of tax levied for special purpose(viii) President’s veto power on appropriation, revenue, tariff bills(ix) Non-impairment of jurisdiction of the Supreme Court(x) Grant of power to the local government units to create its own sources ofrevenue(xi) Flexible tariff clause(xii) Exemption from real property taxes(xiii) No appropriation or use of public money for religious purposesb) Provisions indirectly affecting taxation(i) Due process(ii) Equal protection(iii) Religious freedom(iv) Non-impairment of obligations of contractsJ. Stages of taxation1. Levy2. Assessment and collection3. Payment4. RefundK. Definition, nature, and characteristics of taxesL. Requisites of a valid taxM. Tax as distinguished from other forms of exactions1. Tariff2. Toll3. License fee4. Special assessment5. DebtN. Kinds of taxes1. As to objecta) Personal, capitation, or poll taxb) Property taxc) Privilege tax2. As to burden or incidencea) Directb) Indirect3. As to tax ratesa) Specificb) Ad valoremc) Mixed4. As to purposesa) General or fiscalb) Special, regulatory, or sumptuary5. As to scope or authority to imposea) National – internal revenue taxesb) Local – real property tax, municipal tax6. As to graduation

a) Progressiveb) Regressivec) Proportionate

II. II. National Internal Revenue Code of 1997, as amended (NIRC)A. Income taxation1. Income tax systemsa) Global tax systemb) Schedular tax systemc) Semi-schedular or semi-global tax system2. Features of the Philippine income tax lawa) Direct taxb) Progressivec) Comprehensived) Semi-schedular or semi-global tax system3. Criteria in imposing Philippine income taxa) Citizenship principleb) Residence principlec) Source principle4. Types of Philippine income tax5. Taxable perioda) Calendar periodb) Fiscal periodc) Short period6. Kinds of taxpayersa) Individual taxpayers(i) Citizens(a) Resident citizens(b) Non-resident citizens(ii) Aliens(a) Resident aliens(b) Non-resident aliens(1) Engaged in trade or business(2) Not engaged in trade or business(iii) Special class of individual employees(a) Minimum wage earnerb) Corporations(i) Domestic corporations(ii) Foreign corporations(a) Resident foreign corporations(b) Non-resident foreign corporations(iii) Joint Venture and Consortiumc) Partnershipsd) General professional partnershipse) Estates and trustsf) Co-ownerships7. Income taxationa) Definitionb) Naturec) General principles8. Incomea) Definitionb) Naturec) When income is taxable(i) Existence of income(ii) Realization of income(a) Tests of realization(b) Actual vis-à-vis constructive receipt(iii) Recognition of income(iv) Methods of accounting(a) Cash method vis-à-vis accrual method(b) Installment payment vis-à-vis deferred payment vis-à-vis percentagecompletion (in long term contracts)d) Tests in determining whether income is earned for tax purposes(i) Realization test(ii) Claim of right doctrine or doctrine of ownership, command, or control(iii) Economic benefit test, doctrine of proprietary interest(iv) Severance test9. Gross incomea) Definitionb) Concept of income from whatever source derived

c) Gross income vis-à-vis net income vis-à-vis taxable incomed) Classification of income as to source(i) Gross income and taxable income from sources within the Philippines(ii) Gross income and taxable income from sources without the Philippines(iii) Income partly within or partly without the Philippinese) Sources of income subject to tax(i) Compensation income(ii) Fringe benefits(a) Special treatment of fringe benefits(b) Definition(c) Taxable and non-taxable fringe benefits(iii) Professional income(iv) Income from business(v) Income from dealings in property(a) Types of properties(1) Ordinary assets(2) Capital assets(b) Types of gains from dealings in property(1) Ordinary income vis-à-vis capital gain(2) Actual gain vis-à-vis presumed gain(3) Long term capital gain vis-à-vis short term capital gain(4) Net capital gain, net capital loss(5) Computation of the amount of gain or loss(a) Cost or basis of the property sold(b) Cost or basis of the property exchanged in corporatereadjustment(1) Merger(2) Consolidation(3) Transfer to a controlled corporation (tax-freeexchanges)(c) Recognition of gain or loss in exchange of property(1) General rule(a) Where no gain or loss shall be recognized(2) Exceptions(a) Meaning of merger, consolidation, controlsecurities(b) Transfer of a controlled corporation(6) Income tax treatment of capital loss(a) Capital loss limitation rule (applicable to both corporationsand individuals)(b) Net loss carry-over rule (applicable only to individuals)(7) Dealings in real property situated in the Philippines(8) Dealings in shares of stock of Philippine corporations(a) Shares listed and traded in the stock exchange(b) Shares not listed and traded in the stock exchange(9) Sale of principal residence(vi) Passive investment income(a) Interest income(b) Dividend income(1) Cash dividend(2) Stock dividend(3) Property dividend(4) Liquidating dividend(c) Royalty income(d) Rental income(1) Lease of personal property(2) Lease of real property(3) Tax treatment of(a) Leasehold improvements by lessee(b) VAT added to rental/paid by the lessee(c) Advance rental/long term lease(vii) Annuities, proceeds from life insurance or other types of insurance(viii) Prizes and awards(ix) Pensions, retirement benefit, or separation pay(x) Income from any source whatever(a) Forgiveness of indebtedness(b) Recovery of accounts previously written off(c) Receipt of tax refunds or credit(d) Income from any source whatever(e) Source rules in determining income from within and without(1) Interests

(2) Dividends(3) Services(4) Rentals(5) Royalties(6) Sale of real property(7) Sale of personal property(8) Shares of stock of domestic corporation(f) Situs of income taxation (see page 2 under inherent limitations,territorial)(g) Exclusions from gross income(1) Rationale for the exclusions(2) Taxpayers who may avail of the exclusions(3) Exclusions distinguished from deductions and tax credit(4) Under the constitution(a) Income derived by the government or its politicalsubdivisions from the exercise of any essential governmentalfunction(5) Under the tax code(a) Proceeds of life insurance policies(b) Return of premium paid(c) Amounts received under life insurance, endowment orannuity contracts(d) Value of property acquired by gift, bequest, devise ordescent(e) Amount received through accident or health insurance(f) Income exempt under tax treaty(g) Retirement benefits, pensions, gratuities, etc.(h) Winnings, prizes, and awards, including those in sportscompetition(6) Under a tax treaty(7) Under special laws(h) Deductions from gross income(1) General rules(a) Deductions must be paid or incurred in connection withthe taxpayer’s trade, business or profession(b) Deductions must be supported by adequate receipts orinvoices (except standard deduction)(2) Return of capital (cost of sales or services)(a) Sale of inventory of goods by manufacturers anddealers of properties(b) Sale of stock in trade by a real estate dealer and dealerin securities(c) Sale of services(3) Itemized deductions(a) Expenses(1) Requisites for deductibility(a) Nature: ordinary and necessary(b) Paid and incurred during taxable year(2) Salaries, wages and other forms of compensation forpersonal services actually rendered, including the grossedupmonetary value of the fringe benefit subjected to fringebenefit tax which tax should have been paid(3) Traveling/transportation expenses(4) Cost of materials(5) Rentals and/or other payments for use or possession ofproperty(6) Repairs and maintenance(7) Expenses under lease agreements(8) Expenses for professionals(9) Entertainment expenses(10) Political campaign expenses(11) Training expenses(b) Interest(1) Requisites for deductibility(2) Non-deductible interest expense(3) Interest subject to special rules(a) Interest paid in advance(b) Interest periodically amortized(c) Interest expense incurred to acquire property foruse in trade/business/profession(c) Taxes

(1) Requisites for deductibility(2) Non-deductible taxes(3) Treatments of surcharges/interests/fines for delinquency(4) Treatment of special assessment(5) Tax credit vis-à-vis deduction(d) Losses(1) Requisites for deductibility(2) Other types of losses(a) Capital losses(b) Securities becoming worthless(c) Losses on wash sales of stocks or securities(d) Wagering losses(e) NOLCO(e) Bad debts(1) Requisites for deductibility(f) Depreciation(1) Requisites for deductibility(2) Methods of computing depreciation allowance(a) Straight-line method(b) Declining-balance method(c) Sum-of-the-years-digit method(g) Charitable and other contributions(1) Requisites for deductibility(2) Amount that may be deducted(h) Contributions to pension trusts(1) Requisites for deductibility(4) Optional standard deduction(a) Individuals, except non-resident aliens(b) Corporations, except non-resident foreign corporations(5) Personal and additional exemption (R.A. 9504, Minimum WageEarner Law)(a) Basic personal exemptions(b) Additional exemptions for taxpayer with dependents(c) Status-at-the-end-of-the-year rule(6) Items not deductible(a) General rules(b) Personal, living or family expenses(c) Amount paid for new buildings or for permanentimprovements (capital expenditures)(d) Amount expended in restoring property (major repairs)(e) Premiums paid on life insurance policy covering life or anyother officer or employee financially interested(f) Interest expense, bad debts, and losses from sales ofproperty between related parties(g) Losses from sales or exchange or property(h) Non-deductible interest(i) Non –deductible taxes(j) Non-deductible losses(k) Losses from wash sales of stock or securities(i) Exempt corporations10. Taxation of resident citizens, non-resident citizens, and resident aliensa) General rule that resident citizens are taxable on income from all sources withinand without the Philippinesb) Taxation on compensation income(i) Inclusions(a) Monetary compensation(1) Regular salary/wage(2) Separation pay/retirement benefit not otherwise exempt(3)Bonuses, 13th month pay, and other benefits not exempt(4) Director’s fees(b) Non-monetary compensation(1) Fringe benefit not subject tax(ii) Exclusions(a) Fringe benefit subject to tax(b) De minimis benefits(c) 13th month pay and other benefits and payments specifically excludedfrom taxable compensation income(iii) Deductions(a) Personal exemptions and additional exemptions(b) Health and hospitalization insurance(c) Taxation of compensation income of a minimum wage earner

(1) Definition of statutory minimum wage(2) Definition of minimum wage earner(3) Income also subject to tax exemption: holiday pay, overtime pay,night shift differential, and hazard payc) Taxation of business income/income from practice of professiond) Taxation of passive income(i) Passive income subject to final tax(a) Interest income(b) Royalties(c) Dividends from domestic corporation(d) Prizes and other winnings(ii) Passive income not subject to final taxe) Taxation of capital gains(i) Income from sale of shares of stock of a Philippine corporation(a) Shares traded and listed in the stock exchange(b) Shares not listed and traded in the stock exchange(ii) Income from the sale of real property situated in the Philippines(iii) Income from the sale, exchange, or other disposition of other capitalassets11. Taxation of non-resident aliens engaged in trade or businessa) General rulesb) Cash and/or property dividendsc) Capital gainsExclude non-resident aliens not engaged in trade or business12. Individual taxpayers exempt from income taxa) Senior citizensb) Exemptions granted under international agreements13. Taxation of domestic corporationsa) Tax payable(i) Regular tax(ii) Minimum corporate income tax (MCIT)(a) Imposition of MCIT(b) Carry forward of excess minimum tax(c) Relief from the MCIT under certain conditions(d) Corporations exempt from the MCIT(e) Applicability of the MCIT where a corporation is governed both underthe regular tax system and a special income tax systemb) Allowable deductions(i) Itemized deductions(ii) Optional standard deductionc) Taxation of passive income(i) Passive income subject to tax(a) Interest from deposits and yield or any other monetary benefit fromdeposit substitutes and from trust funds and similar arrangements androyalties(b) Capital gains from the sale of shares of stock not traded in the stockexchange(c) Income derived under the expanded foreign currency deposit system(d) Intercorporate dividends(e) Capital gains realized from the sale, exchange, or disposition of landsand/or buildings(ii) Passive income not subject to taxd) Taxation of capital gains(i) Income from sale of shares of stock(ii) Income from the sale of real property situated in the Philippine(iii) Income from the sale, exchange, or other disposition of other capitalassetse) Tax on proprietary educational institutions and hospitalsf) Tax on government-owned or controlled corporations, agencies orinstrumentalities14. Taxation of resident foreign corporationsa) General ruleb) With respect to their income from sources within the Philippinesc) Minimum corporate income taxd) Tax on certain income(i) Interest from deposits and yield or any other monetary benefit fromdeposit substitutes, trust funds and similar arrangements and royalties(ii) Income derived under the expanded foreign currency deposit system(iii) Capital gain from sale of shares of stock not traded in the stock exchange(iv) Intercorporate dividendsExclude:

(i) International carrier(ii)Offshore banking units(iii)Branch profits remittances(iv) Regional or area headquarters and regional operating headquarters ofmultinational companies15. Taxation of non-resident foreign corporationsa) General ruleb) Tax on certain income(i) Interest on foreign loans(ii) Intercorporate dividends(iii) Capital gains from sale of shares of stock not traded in the stockexchangeExclude:(i) Non-resident cinematographic film owner, lessor or distributor(ii) Non-resident owner or lessor of vessels chartered by Philippine nationals(iii) Non-resident owner or lessor of aircraft machineries and other equipment16. Improperly accumulated earnings of corporations17. Exemption from tax on corporations18. Taxation of partnerships19. Taxation of general professional partnerships20. Taxation on estates and trustsa) Applicationb) Exceptionc) Determination of tax(i) Consolidation of income of two or more trusts(ii) Taxable income(iii) Revocable trusts(iv) Income for benefit of grantor(v) Meaning of “in the discretion of the grantor”21. Withholding taxa) Conceptb) Kinds(i) Withholding of final tax on certain incomes(ii) Withholding of creditable tax at sourcec) Withholding on wages(i) Requirement for withholding(ii) Tax paid by recipient(iii) Refunds or credits(iv) Year-end adjustment(v) Liability for taxd) Withholding of VATe) Filing of return and payment of taxes withheld(i) Return and payment in case of government employees(ii) Statements and returnsf) Final withholding tax at sourceg) Creditable withholding tax(i) Expanded withholding tax(ii) Withholding tax on compensationh) Fringe benefit taxB. Estate tax1. Basic principles2. Definition3. Nature4. Purpose or object5. Time and transfer of properties6. Classification of decedent7. Gross estate vis-à-vis net estate8. Determination of gross estate and net estate9. Composition of gross estate10. Items to be included in gross estate11. Deductions from estate12. Exclusions from estate13. Tax credit for estate taxes paid in a foreign country14. Exemption of certain acquisitions and transmissions15. Filing of notice of death16. Estate tax returnC. Donor’s tax1. Basic principles2. Definition3. Nature4. Purpose or object

5. Requisites of valid donation6. Transfers which may be constituted as donationa) Sale/exchange/transfer of property for insufficient considerationb) Condonation/remission of debt7. Transfer for less than adequate and full consideration8. Classification of donor9. Determination of gross gift10.Composition of gross gift11.Valuation of gifts made in property12.Tax credit for donor’s taxes paid in a foreign country13. Exemptions of gifts from donor’s tax14. Person liable15. Tax basisD. Value-Added Tax (VAT)1. Concept2. Characteristics3. Impact of tax4. Incidence of tax5. Tax credit method6. Destination principle7. Persons liable8. VAT on sale of goods or propertiesa) Requisites of taxability of sale of goods or properties9. Zero-rated sales of goods or properties, and effectively zero-rated sales of goods orproperties10. Transactions deemed salea) Transfer, use or consumption not in the course of business of goods/propertiesoriginally intended for sale or use in the course of businessb) Distribution or transfer to shareholders, investors or creditorsc) Consignment of goods if actual sale not made within 60 days from date ofconsignmentd) Retirement from or cessation of business with respect to inventories on hand11. Change or cessation of status as VAT-registered persona) Subject to VAT(i) Change of business activity from VAT taxable status to VAT-exempt status(ii) Approval of request for cancellation of a registration due to reversion toexempt status(iii) Approval of request for cancellation of registration due to desire to revertto exempt status after lapse of 3 consecutive yearsb) Not subject to VAT(i) Change of control of a corporation(ii) Change in the trade or corporate name(iii) Merger or consolidation of corporations12. VAT on importation of goodsa) Transfer of goods by tax exempt persons13. VAT on sale of service and use or lease of propertiesa) Requisites for taxability14. Zero-rated sale of services15. VAT exempt transactionsa) VAT exempt transactions, in generalb) Exempt transaction, enumerated16. Input tax and output tax, defined17. Sources of input taxa) Purchase or importation of goodsb) Purchase of real properties for which a VAT has actually been paidc) Purchase of services in which VAT has actually been paidd) Transactions deemed salee) Transitional input taxf) Presumptive input taxg) Transitional input tax credits allowed under the transitory and otherprovisions of the regulations18. Persons who can avail of input tax credit19. Determination of output/input tax; VAT payable; excess input tax creditsa) Determination of output taxb) Determination of input tax creditablec) Allocation of input tax on mixed transactionsd) Determination of the output tax and VAT payable and computation of VATpayable or excess tax credits20. Substantiation of input tax credits21. Refund or tax credit of excess input taxa) Who may claim for refund/apply for issuance of tax credit certificate

b) Period to file claim/apply for issuance of tax credit certificatec) Manner of giving refundd) Destination principle or cross-border doctrine22. Invoicing requirementsa) Invoicing requirements in generalb) Invoicing and recording deemed sale transactionsc) Consequences of issuing erroneous VAT invoice or VAT official receipt23. Filing of return and payment24. Withholding of final VAT on sales to governmentE. Compliance requirements (internal revenue taxes)1. Administrative requirementsa) Registration requirements(i) Annual registration fee(ii) Registration of each type of internal revenue tax(iii) Transfer of registration(iv) Other updates(v) Cancellation of registration(vi) Power of the commissioner to suspend the business operations of anyperson who fails to registerb) Persons required to register for VAT(i) Optional registration for VAT of exempt person(ii) Cancellation of VAT registration(iii) Changes in or cessation of status of a VAT-registered personc) Supplying taxpayer identification number (TIN)d) Issuance of receipts or sales or commercial invoices(i) Printing of receipts or sales or commercial invoices(ii) Invoicing requirements for VAT(a) Information contained in the VAT invoice or VAT official receipt(b) Consequences of issuing erroneous VAT invoice or official receiptse) Exhibition of certificate of payment at place of businessf) Continuation of business of deceased persong) Removal of business to other location2. Tax returnsa) Income tax returns(i) Individual tax returns(a) Filing of individual tax returns(1) Who are required to file(a) Return of husband and wife(b) Return of parent to include income of children(c) Return of persons under disability(2) Who are not required to file(b) Where to file(c) When to file(ii) Corporate returns(a) Requirement for filing returns(1) Declaration of quarterly corporate income tax(a) Place of filing(b)Time of fling(2) Final adjustment return(a)Place of filing(b)Time of filing(3) Taxable year of corporations(4) Extension of time to file return(b) Return of corporation contemplating dissolution or reorganization(c) Return on capital gains realized from sale of shares of stock nottraded in the local stock exchange(iii) Returns of receivers, trustees in bankruptcy or assignees(iv) Returns of general partnerships(v) Fiduciary returnsb) Estate tax returns(i) Notice of death to be filed(ii) Estate tax returns(a) Requirements(b) Time of filing and extension of time(c) Place of filing(iii) Discharge of executor or administrator from personal liability(a) Definition of deficiencyc) Donor’s tax returns(i) Requirements(ii) Time and place of filingd) VAT returns

(i) In general(ii) Where to file the returne) Withholding tax returns(i) Quarterly returns and payments of taxes withheld(ii) Annual information return3. Tax paymentsa) Income taxes(i) Payment, in general; time of payment(ii) Installment payment(iii) Payment of capital gains taxb) Estate taxes(i) Time of payment(a) Extension of time(ii) Liability for payment(a) Discharge of executor or administrator from personal liability(b) Definition of deficiency(iii) Payment before delivery by executor or administrator(a) Payment of tax antecedent to the transfer of shares, bonds or rights(iv) Duties of certain officers and debtors(v) Restitution of tax upon satisfaction of outstanding obligationsc) Donor’s taxes(i) Time and place of paymentd) VAT(i) Payment of VAT(ii) Where to pay the VATF. Tax remedies under the NIRC1. Taxpayer’s remediesa) Assessment(i) Concept of assessment(a) Requisites for valid assessment(b) Constructive methods of income determination(c) Inventory method for income determination(d) Jeopardy assessment(e) Tax delinquency and tax deficiency(ii) Power of the commissioner to make assessments and prescribe additionalrequirements for tax administration and enforcement(a) Power of the commissioner to obtain information, and tosummon/examine, and take testimony of persons(iii) When assessment is made(a) Prescriptive period for assessment(1) False, fraudulent, and non-filing of returns(b) Suspension of running of statute of limitations(iv) General provisions on additions to the tax(a) Civil penalties(b) Interest(v) Assessment process(a) Tax audit(b) Notice of informal conference(c) Issuance of preliminary assessment notice(d) Notice of informal conference(e) Issuance of preliminary assessment notice(f) Exceptions to issuance of preliminary assessment notice(g) Reply to preliminary assessment notice(h) Issuance of formal letter of demand and assessment notice/finalassessment notice(i) Disputed assessment(j) Administrative decision on a disputed assessmentvi) Protesting assessment(a) Protest of assessment by taxpayer(1)Protested assessment(2)When to file a protest(3) Forms of protest(b) Submission of documents within 60 days from filing of protest(c) Effect of failure to protest(vii) Rendition of decision by commissioner(a) Denial of protest(1) Commissioner’s actions equivalent to denial of protest(a) Filing of criminal action against taxpayer(b) Issuing a warrant of distraint and levy(2) Inaction by commissioner(viii) Remedies of taxpayer to action by commissioner

(a) In case of denial of protest(b) In case of inaction by commissioner within 180 days from submissionof documents(c) Effect of failure to appealb) Collection(i) Requisites(ii) Prescriptive periods(iii) Distraint of personal property including garnishment(a) Summary remedy of distraint of personal property(1) Procedure for distraint and garnishment(2) Sale of property distrained and disposition of proceeds(a) Release of distrained property upon payment prior to sale(3) Purchase by the government at sale upon distraint(4) Report of sale to the BIR(5) Constructive distraint to protect the interest of the government(iv) Summary remedy of levy on real property(a) Advertisement and sale(b) Redemption of property sold(c) Final deed of purchaser(v) Forfeiture to government for want of bidder(a) Remedy of enforcement of forfeitures(1) action to contest forfeiture of chattel(b) Resale of real estate taken for taxes(c) When property to be sold or destroyed(d) Disposition of funds recovered in legal proceedings or obtained fromforfeiture(vi) Further distraint or levy(vii) Tax lien(viii) Compromise(a) Authority of the commissioner to compromise and abate taxes(ix) Civil and criminal actions(a) Suit to recover tax based on false or fraudulent returnsc) Refund(i) Grounds and requisites for refund(ii) Requirements for refund as laid down by cases(a) Necessity of written claim for refund(b) Claim containing a categorical demand for reimbursement(c) Filing of administrative claim for refund and the suit/proceedingbefore the CTA within 2 years from date of payment regardless of anysupervening cause(iii) Legal basis of tax refunds(iv) Statutory basis for tax refund under the tax code(a) Scope of claims for refund(b) Necessity of proof for claim or refund(c) Burden of proof for claim of refund(d) Nature of erroneously paid tax/illegally assessed collected(e) Tax refund vis-à-vis tax credit(f) Essential requisites for claim of refund(v) Who may claim/apply for tax refund/tax credit(a) Taxpayer/withholding agents of non-resident foreign corporation(vi) Prescriptive period for recovery of tax erroneously or illegally collected(vii) Other consideration affecting tax refunds2. Government remediesa) Administrative remedies(i) Tax lien(ii) Levy and sale of real property(iii) Forfeiture of real property to the government for want of bidder(iv) Further distraint and levy(v) Suspension of business operation(vi) Non-availability of injunction to restrain collection of taxb) Judicial remedies3. Statutory offenses and penaltiesa) Civil penalties(i) Surcharge(ii) Interest(a) In general(b) Deficiency interest(c) Delinquency interest(d) Interest on extended payment4. Compromise and abatement of taxesa) Compromise

b) AbatementG. Organization and Function of the Bureau of Internal Revenue1. Rule-making authority of the secretary of financea) Authority of secretary of finance to promulgate rules and regulationsb) Specific provisions to be contained in rules and regulationsc) Non-retroactivity of rulings2. Power of the commissioner to suspend the business operation of a taxpayer

III. III. Local Government Code of 1991, as amendedA. Local government taxation1. Fundamental principles2. Nature and source of taxing powera) Grant of local taxing power under the local government codeb) Authority to prescribe penalties for tax violationsc) Authority to grant local tax exemptionsd) Withdrawal of exemptionse) Authority to adjust local tax ratesf) Residual taxing power of local governmentsg) Authority to issue local tax ordinances3. Local taxing authoritya) Power to create revenues exercised through Local Government Unitsb) Procedure for approval and effectivity of tax ordinances4. Scope of taxing power5. Specific taxing power of Local Government Units (LGUs)a) Taxing powers of provinces(i) Tax on transfer of real property ownership(ii) Tax on business of printing and publication(iii) Franchise tax(iv) Tax on sand, gravel and other quarry services(v) Professional tax(vi) Amusement tax(vii) Tax on delivery truck/vanb) Taxing powers of citiesc) Taxing powers of municipalities(i) Tax on various types of businesses(ii) Ceiling on business tax impossible on municipalities within Metro Manila(iii) Tax on retirement on business(iv) Rules on payment of business tax(v) Fees and charges for regulation & licensing(vi) Situs of tax collectedd) Taxing powers of barangayse) Common revenue raising powers(i) Service fees and charges(ii) Public utility charges(iii) Toll fess or chargesf) Community tax6. Common limitations on the taxing powers of LGUs7. Collection of business taxa) Tax period and manner of paymentb) Accrual of taxc) Time of paymentd) Penalties on unpaid taxes, fees or chargese) Authority of treasurer in collection and inspection of books8. Taxpayer’s remediesa) Periods of assessment and collection of local taxes, fees or chargesb) Protest of assessmentc) Claim for refund of tax credit for erroneously or illegally collected tax, fee orcharge9. Civil remedies by the LGU for collection of revenuesa) Local government’s lien for delinquent taxes, fees or chargesb) Civil remedies, in general(i) Administrative action(ii) Judicial actionc) Procedure for administrative action(i) Distraint of personal property(ii) Levy of real property, procedure(iii) Further distraint or levy(iv) Exemption of personal property from distraint or levy(v) Penalty on local treasurer for failure to issue and execute warrant ofdistraint or levyd) Procedure for judicial action

B. Real property taxation1. Fundamental principles2. Nature of real property tax3. Imposition of real property taxa) Power to levy real property taxb) Exemption from real property tax4. Appraisal and assessment of real property taxa) Rule on appraisal of real property at fair market valueb) Declaration of real propertyc) Listing of real property in assessment rollsd) Preparation of schedules of fair market value(i) Authority of assessor to take evidence(ii) Amendment of schedule of fair market valuee) Classes of real propertyf) Actual use of property as basis of assessmentg) Assessment of real property(i) Assessment levels(ii) General revisions of assessments and property classification(iii) Date of effectivity of assessment or reassessment(iv) Assessment of property subject to back taxes(v) Notification of new or revised assessmenth) Appraisal and assessment of machinery5. Collection of real property taxa) Date of accrual of real property taxb) Collection of tax(i) Collecting authority(ii) Duty of assessor to furnish local treasurer with assessment rolls(iii) Notice of time for collection of taxc) Periods within which to collect real property taxd) Special rules on payment(i) Payment of real property tax in installments(ii) Interests on unpaid real property tax(iii) Condonation of real property taxe) Remedies of LGUs for collection of real property tax(i) Issuance of notice of delinquency for real property tax payment(ii) Local government’s lien(iii) Remedies in general(iv) Resale of real estate taken for taxes, fees or charges(v) Further levy until full payment of amount due6. Refund or credit of real property taxa) Payment under protestb) Repayment of excessive collections7. Taxpayer’s remediesa) Contesting an assessment of value of real property(i) Appeal to the Local Board of Assessment Appeals(ii) Appeal to the Central Board of Assessment Appeals(iii) Effect of payment of taxb. Payment of real property under protest(i) File protest with local treasurer(ii) Appeal to the Local Board of Assessment Appeals(iii) Appeal to the Central Board of Assessment Appeals(iv) Appeal to the CTA(v) Appeal to the Supreme Court

IV. IV. Tariff and Customs Code of 1978, as amendedA. Tariff and duties, definedB. General rule: all imported articles are subject to duty.1. Importation by the government taxableC. Purpose for impositionD. Flexible tariff clauseE. Requirements of importation1. Beginning and ending of importation2. Obligations of importera) Cargo manifestb) Import entryc) Declaration of correct weight or valued) Liability for payment of dutiese) Liquidation of dutiesf) Keeping of recordsF. Importation in violation of tax credit certificate1. Smuggling

2. Other fraudulent practicesG. Classification of goods1. Taxable importation2. Prohibited importation3. Conditionally-free importationH. Classification of duties1. Ordinary/regular dutiesa) Ad valorem; methods of valuation(i) Transaction value(ii) Transaction value of identical goods(iii) Transaction value of similar goods(iv) Deductive value(v) Computed value(vi) Fallback valueb) Specific2. Special dutiesa) Dumping dutiesb) Countervailing dutiesc) Marking dutiesd) Retaliatory/discriminatory dutiese) SafeguardI. DrawbacksJ. Remedies1. Governmenta) Administrative/extrajudicial(i) Search, seizure, forfeiture, arrestb) Judicial(i) Rules on appeal including jurisdiction2. Taxpayera) Protestb) Abandonmentc) Abatement and refund

V. V. Judicial Remedies (R.A. 1125, as amended, and the Revised Rules of the Court ofTax Appeals)A. Jurisdiction of the Court of Tax Appeals1. Exclusive appellate jurisdiction over civil tax casesa) Cases within the jurisdiction of the court en bancb) Cases within the jurisdiction of the court in divisions2. Criminal casesa) Exclusive original jurisdictionb) Exclusive appellate jurisdiction in criminal casesB. Judicial procedures1. Judicial action for collection of taxesa) Internal revenue taxesb) Local taxes(i) Prescriptive period2. Civil casesa) Who may appeal, mode of appeal, effect of appeal(i) Suspension of collection of taxa) Injunction not available to restrain collection(ii) Taking of evidence(iii) Motion for reconsideration or new trialb) Appeal to the CTA, en bancc) Petition for review on certiorari to the Supreme Court3. Criminal casesa) Institution and prosecution of criminal actions(i) Institution on civil action in criminal actionb) Appeal and period to appealcounsel for the people and government officials sued intheir official capacityc) Petition for review on certiorari to the Supreme CourtC. Taxpayer’s suit impugning the validity of tax measures or acts of taxing authorities1. Taxpayer’s suit, defined2. Distinguished from citizen’s suit3. Requisites for challenging the constitutionality of a tax measure or act of taxingauthoritya) Concept of locus standi as applied in taxationb) Doctrine of transcendental importancec) Ripeness for judicial determination

INCLUDE: Pertinent Supreme Court decisions promulgated up to January 31, 2012.

SYLLABUS FOR THE 2012 BAR EXAMINATIONSMERCANTILE LAW

I. Letters of CreditA. Definition/conceptB. Governing lawsC. Nature of letter of creditD. Parties to a letter of credit1. Rights and obligations of partiesE. Basic principles of letter of credit1. Doctrine of independence2. Fraud exception principle3. Doctrine of strict compliance

II. II. Warehouse Receipts LawA. Nature and functions of a warehouse receipt1. To whom delivered2. Kinds3. Distinction between a negotiable instrument and a negotiable warehouse receipt4. Rights of a holder of a negotiable warehouse receipt as against a transferee of a nonnegotiablewarehouse receiptB. Duties of a warehousemanC. Warehouseman’s lien

III. III. Trust Receipts LawA. Definition/concept of a trust receipt transaction1. Loan/security feature2. Ownership of the goods, documents and instruments under a trust receiptB. Rights of the entruster1. Validity of the security interest as against the creditors of the entrustee/innocentpurchasers for valueC. Obligations and liability of the entrustee

1. Payment/delivery of proceeds of sale or disposition of goods, documents or instruments2. Return of goods, documents or instruments in case of sale3. Liability for loss of goods, documents or instruments4. Penal sanction if offender is a corporationD. Remedies available

IV. IV. Negotiable Instruments LawA. Forms and interpretation1. Requisites of negotiability2. Kinds of negotiable instrumentB. Completion and delivery1. Insertion of date2. Completion of blanks3. Incomplete and undelivered instruments4. Complete but undelivered instrumentsC. Rules of interpretationD. Signature1. Signing in trade name2. Signature of agent3. Indorsement by minor or corporation4. ForgeryE. ConsiderationF. Accommodation partyG. Negotiation1. Distinguished from assignment2. Modes of negotiation3. Kinds of indorsementH. Rights of the holder1. Holder in due course2. Defenses against the holderI. Liabilities of parties1. Maker2. Drawer3. Acceptor4. Indorser5. WarrantiesJ. Presentment for payment1. Necessity of presentment for payment2. Parties to whom presentment for payment should be made3. Dispensation with presentment for payment4. Dishonor by non-paymentK. Notice of dishonor1. Parties to be notified2. Parties who may give notice of dishonor3. Effect of notice4. Form of notice5. Waiver6. Dispensation with notice7. Effect of failure to give noticel. Discharge of negotiable instrument1. Discharge of negotiable instrument2. Discharge of parties secondarily liable3. Right of party who discharged instrument4. Renunciation by holderM. Material alteration1. Concept2. Effect of material alterationN. Acceptance1. Definition2. Manner3. Time for acceptance4. Rules governing acceptanceO. Presentment for acceptance1. Time/place/manner of presentment2. Effect of failure to make presentment3. Dishonor by non-acceptanceP. Promissory notesQ. Checks1. Definition2. Kinds

3. Presentment for paymenta) Timeb) Effect of delayV. Insurance CodeA. Concept of insuranceB. Elements of an insurance contractC. Characteristics/nature of insurance contractsD. Classes1. Marine2. Fire3. Casualty4. Suretyship5. Life6. Compulsory motor vehicle liability insuranceE. Insurable interest1. In life/health2. In property3. Double insurance and over insurance4. Multiple or several interests on same propertyF. Perfection of the contract of insurance1. Offer and acceptance/consensuala) Delay in acceptanceb) Delivery of policy2. Premium payment3. Non-default options in life insurance4. Reinstatement of a lapsed policy of life insurance5. Refund of premiumsG. Rescission of insurance contracts1. Concealment2. Misrepresentation/omissions3. Breach of warrantiesH. Claims settlement and subrogation1. Notice and proof of loss2. Guidelines on claims settlementa) Unfair claims settlement; sanctionsb) Prescription of actionc) Subrogation

V. VI. Transportation LawA. Common carriers1. Diligence required of common carriers2. Liabilities of common carriersB. Vigilance over goods1. Exempting causesa) Requirement of absence of negligenceb) Absence of delayc) Due diligence to prevent or lessen the loss2. Contributory negligence3. Duration of liabilitya) Delivery of goods to common carrierb) Actual or constructive deliveryc) Temporary unloading or storage4. Stipulation for limitation of liabilitya) Void stipulationsb) Limitation of liability to fixed amountc) Limitation of liability in absence of declaration of greater value5. Liability for baggage of passengersa) Checked-in baggageb) Baggage in possession of passengersC. Safety of passengers1. Void stipulations2. Duration of liabilitya) Waiting for carrier or boarding of carrierb) Arrival at destination3. Liability for acts of othersa) Employeesb) Other passengers and strangers4. Extent of liability for damagesD. Bill of lading1. Three-fold character2. Delivery of goods

a) Period for deliveryb) Delivery without surrender of bill of ladingc) Refusal of consignee to take delivery3. Period for filing claims4. Period for filing actionsE. Maritime commerce1. Charter partiesa) Bareboat/demise charterb) Time charterc) Voyage/trip charter2. Liability of ship owners and shipping agentsa) Liability for acts of captainb) Exceptions to limited liability3. Accidents and damages in maritime commercea) General averageb) Collisions4. Carriage of Goods by Sea Acta) Applicationb) Notice of loss or damagec) Period of prescriptiond) Limitation of liabilityF. Public Service Act1. Definition of public utility2. Necessity for certificate of public conveniencea) Requisites(i) Citizenship(ii) Promotion of public interests(iii) Financial capabilityb) Prior operator rule(i) Meaning(ii) Exceptions(iii) Ruinous competition3. Fixing of ratea) Rate of returnb) Exclusion of income tax as expense4. Unlawful arrangementsa) Boundary systemb) Kabit system5. Approval of sale, encumbrance or lease of propertyG. The Warsaw Convention1. Applicability2. Limitation of liabilitya) Liability to passengersb) Liability for checked baggagec) Liability for hand-carried baggage3. Willful misconduct

VI. VII. The Corporation CodeA. Corporation, definedB. Classification of corporationsC. Nationality of corporations1. Control test2. Grandfather ruleD. Corporate juridical personality1. Doctrine of separate juridical personalitya) Liability for tort and crimesb) Recovery of damages2. Doctrine of piercing the corporate veila) Grounds for application of doctrineb) Test in determining applicabilityE. Capital structure1. Number and qualifications of incorporators2. Minimum capital stock and subscription requirements3. Corporate term4. Classification of sharesF. Incorporation and organization1. Promotera) Liability of promoterb) Liability of corporation for promoter’s contracts2. Subscription contract3. Pre-incorporation subscription agreements

4. Consideration for stocks5. Articles of incorporationa) Contentsb) Non-amendable items6. Corporate name -- limitations on use of corporate name7. Registration and issuance of certificate of incorporation8. Election of directors or trustees9. Adoption of by-lawsa) Requisites of valid by-lawsb) Binding effectsc) AmendmentsG. Corporate powers1. General powers, theory of general capacity2. Specific powers, theory of specific capacitya) Power to extend or shorten corporate termb) Power to increase or decrease capital stock or incur, create, increase bondedindebtednessc) Power to deny pre-emptive rightsd) Power to sell or dispose of corporate assetse) Power to acquire own sharesf) Power to invest corporate funds in another corporation or businessg) Power to declare dividendsh) Power to enter into management contracti) Ultra vires acts(i) Applicability of ultra vires doctrine(ii) Consequences of ultra vires actsj) Doctrine of individuality of subscriptionk) Doctrine of equality of sharesl) Trust fund doctrine3. How exerciseda) By the shareholdersb) By the board of directorsc) By the officersH. Stockholders and members1. Fundamental rights of a stockholder2. Participation in managementa) Proxyb) Voting trustc) Cases when stockholders’ action is required(i) By a majority vote(ii) By a two-thirds vote(iii) By cumulative voting3. Proprietary rightsa) Right to dividendsb) Right of appraisalc) Right to inspectd) Pre-emptive righte) Right to votef) Right to dividends4. Remedial rightsa) Individual suitb) Representative suitc) Derivative suit5. Obligation of a stockholder6. Meetingsa) Regular or special(i) When and where(ii) Noticeb) Who calls the meetingsc) Quorumd) Minutes of meetingsI. Board of directors and trustees1. Repository of corporate powers2. Tenure, qualifications and disqualifications of directors3. Electionsa) Cumulative votingb) Quorum4. Removal5. Filling of vacancies6. Compensation7. Disloyalty

8. Business judgment rule9. Solidary liabilities for damages10. Liability for watered stocks11. Personal liabilities12. Responsibility for crimes13. Special fact doctrine14. Inside information15. Contractsa) By self-dealing directors with the corporationb) Between corporations with interlocking directors16. Executive committeea) Creationb) Limitations on its powers17. Meetingsa) Regular or special(i) When and where(ii) Noticeb) Who presidesc) Quorumd) Rule on abstentionJ. Capital affairs1. Certificate of stocka) Nature of the certificateb) Uncertificated sharesc) Negotiability(i) Requirements for valid transfer of stocksd) Issuance(i) Full payment(ii) Payment pro-ratae) Stock and transfer book(i) Contents(ii) Who may make valid entriesf) Lost or destroyed certificatesg) Situs of the shares of stock2. Watered stocksa) Definitionb) Liability of directors for watered stocksc) Trust fund doctrine for liability for watered stocks3. Payment of balance of subscriptiona) Call by board of directorsb) Notice requirement4. Sale of delinquent sharesa) Effect of delinquencyb) Call by resolution of the board of directorsc) Notice of saled) Auction sale5. Alienation of sharesa) Allowable restrictions on the sale of sharesb) Sale of partially paid sharesc) Sale of a portion of shares not fully paidd) Sale of all of shares not fully paide) Sale of fully paid sharesf) Requisites of a valid transferg) Involuntary dealingsK. Dissolution and liquidation1. Modes of dissolutiona) Voluntary(i) Where no creditors are affected(ii) Where creditors are affected(iii) By shortening of corporate termb) Involuntary(i) By expiration of corporate term(ii) Failure to organize and commence business within 2 years fromincorporation(iii) Legislative dissolution(iv) Dissolution by the SEC on grounds under existing laws2. Methods of liquidationa) By the corporation itselfb) Conveyance to a trustee within a 3-year periodc) By management committee or rehabilitation receiverd) Liquidation after three years

L. Other corporations1. Close corporationsa) Characteristics of a close corporationb) Validity of restrictions on transfer of sharesc) Issuance or transfer of stock in breach of qualifying conditionsd) When board meeting is unnecessary or improperly helde) Pre-emptive rightf) Amendment of articles of incorporationg) Deadlocks2. Non-stock corporationsa) Definitionb) Purposesc) Treatment of profitsd) Distribution of assets upon dissolution3. Religious corporationsa) Corporation sole(i) Nationality(ii) Religious societies4. Foreign corporationsa) Bases of authority over foreign corporations(i) Consent(ii) Doctrine of “doing business” (relate to definition under the ForeignInvestments Act, R.A. 7042)b) Necessity of a license to do business(i) Requisites for issuance of a license(ii) Resident agentc) Personality to sued) Suability of foreign corporationse) Instances when unlicensed foreign corporations may be allowed to sueisolated transactionsf) Grounds for revocation of licenseM. Merger and consolidation1. Definition and concept2. Constituent vs. Consolidated corporation3. Plan of merger or consolidation4. Articles of merger or consolidation5. Procedure6. Effectivity7. Limitations8. Effects

VII. VIII. Securities Regulation Code (R.A. 8799)A. State policy (purpose)B. Powers and functions of the SEC1. Regulatory2. AdjudicativeC. Securities required to be registered1. Exempt securities2. Exempt transactionsD. Procedure for registration of securitiesE. Prohibitions on fraud, manipulation and insider trading1. Manipulation of security prices2. Short sales3. Fraudulent transactions4. Insider tradingF. Protection of investors1. Tender offer rule2. Rules on proxy solicitation3. Disclosure ruleG. Civil liability

VIII. IX. Banking LawsA. The New Central Bank Act (R.A. 7653)1. State policies2. Creation of the Bangko Sentral ng Pilipinas (BSP)3. Responsibility and primary objective4. Monetary board - powers and functions5. How the BSP handles banks in distressa) Conservatorshipb) Closurec) Receivership

d) Liquidation6. How the BSP handles exchange crisisa) Legal tender powerb) Rate of exchangeB. Law on Secrecy of Bank Deposits (R.A. 1405, as amended)1. Purpose2. Prohibited acts3. Deposits covered4. Exceptions5. Garnishment of deposits, including foreign deposits6. Penalties for violationC. General Banking Act (R.A. 8791)1. Definition and classification of banks2. Distinction of banks from quasi-banks and trust entities3. Bank powers and liabilitiesa) Corporate powersb) Banking and incidental powers4. Diligence required of banks - relevant jurisprudence5. Nature of bank funds and bank deposits6. Stipulation on interests7. Grant of loans and security requirementsa) Ratio of net worth to total risk assetsb) Single borrower’s limitc) Restrictions on bank exposure to DOSRI (directors, officers, stockholders andtheir related interests)8. Penalties for violationsa) Fine, imprisonmentb) Suspension or removal of director or officerc) Dissolution of bankD. Philippine Deposit Insurance Corporation Act1. Basic policy2. Concept of insured deposits3. Liability to depositorsa) Deposit liabilities required to be insured with PDICb) Commencement of liabilityc) Deposit accounts not entitled to paymentd) Extent of liabilitye) Determination of insured depositsf) Calculation of liability(i) Per depositor, per capacity rule(ii) Joint accounts(iii) Mode of payment(iv) Effect of payment of insured deposit(v) Payments of insured deposits as preferred credit under Art. 2244, CivilCode(vi) Failure to settle claim of insured depositor(vii) Failure of depositor to claim insured deposits(a) Examination of banks and deposit accounts(b) Prohibition against splitting of deposits(c) Prohibition against issuances of TROs, etc.

IX. X. Intellectual Property Law (excluding implementing rules and regulations)A. Intellectual property rights in general1. Intellectual property rights2. Differences between copyrights, trademarks and patent3. Technology transfer arrangementsB. Patents1. Patentable inventions2. Non-patentable inventions3. Ownership of a patenta) Right to a patentb) First-to-file rulec) Inventions created pursuant to a commissiond) Right of priority4. Grounds for cancellation of a patent5. Remedy of the true and actual inventor6. Rights conferred by a patent7. Limitations of patent rightsa) Prior userb) Use by the government8. Patent infringement

a) Tests in patent infringement(i) Literal infringement(ii) Doctrine of equivalentsb) Civil and criminal actionc) Prescriptive periodd) Defenses in action for infringement9. Licensinga) Voluntaryb) Compulsory10. Assignment and transmission of rightsC. Trademarks1. Definitions of marks, collective marks, trade names2. Acquisition of ownership of mark3. Acquisition of ownership of trade name4. Non-registrable marks5. Prior use of mark as a requirement6. Tests to determine confusing similarity between marksa) Dominancy testb) Holistic test7. Well-known marks8. Rights conferred by registration9. Use by third parties of names, etc. similar to registered mark10. Infringement and remediesa) Trademark infringementb) Damagesc) Requirement of notice11. Unfair competition12. Trade names or business names13. Collective marks14. Criminal penalties for infringement, unfair competition, false designation of origin, andfalse description or misrepresentationD. Copyrights1. Basic principles, Secs. 172.2, 175, and 1812. Copyrightable worksa) Original worksb) Derivative works3. Non-copyrightable works4. Rights of copyright owner5. Rules on ownership of copyright6. Limitations on copyrighta) Doctrine of fair useb) Copyright infringement(i) Remedies(ii) Criminal penalties

X. XI. Special LawsA. The Chattel Mortgage Law (Act 1508 in rel. to Arts. 1484, 1485, 2140 and 2141 of the Civil Code)1. Essential requisites2. Formal requisites3. Registration, when and where4. After-acquired property5. After-incurred obligation6. Right of junior mortgagee7. Foreclosure procedure8. Redemption9. Claim for deficiencya) General ruleb) Exceptionc) Article 1484B. Real Estate Mortgage Law (Act 3135, as amended by R.A. 4118)1. Coverage2. Remedies available to mortgagee upon default of the mortgagor3. Need for special power of attorney4. Authority to foreclose extrajudicially5. Procedurea) Where to fileb) Where to sellc) Posting requirementd) Publication requirement

(i) Sufficiency of newspaper publication(ii) Need for republication in case of postponement(iii) Personal notice to the mortgagor when and when not needed6. Possession by purchaser of foreclosed property7. Remedy of debtor if foreclosure is not proper8. Redemptiona) Who may redeemb) Amount of redemption pricec) Period for redemptiond) Effect of pendency of action for annulment of sale9. Writ of possessiona) Ministerial duty of the courtb) Enforcement against third partiesc) Pendency of action for annulment of sale10. Annulment of saleC. Truth in Lending Act (R.A. 3765)1. Purpose2. Obligation of creditors to person to whom credit is extended3. Covered and excluded transactions4. Consequences of non-compliance with obligationD. Anti-money Laundering Law (R.A. 9160, as amended by R.A. 9194)1. Policy of the law2. Covered institutions3. Obligations of covered institutions4. Covered transactions5. Suspicious transactions6. When is money laundering committed7. Unlawful activities or predicate crimes8. Anti-money laundering council9. Functions10. Freezing of monetary instrument or property11. Authority to inquire into bank depositsE. Foreign Investments Act (R.A. 7042)1. Policy of the law2. Definition of termsa) Foreign investmentb) “Doing business” in the Philippinesc) Export enterprised) Domestic market enterprise3. Registration of investments of non-Philippine nationals4. Foreign investments in export enterprises5. Foreign investments in domestic market enterprises6. Foreign investment negative list

INCLUDE: Pertinent Supreme Court decisions promulgated up to January 31, 2012.

SYLLABUS FOR THE 2012 BAR EXAMINATIONSCIVIL LAW

I. Effect and Application of LawsA. When law takes effect (Civil Code, Art. 2)B. Ignorance of the law (Civil Code, Art. 3)C. Retroactivity of laws (Civil Code, Art. 4)D. Mandatory or prohibitory laws (Civil Code, Art. 5)E. Waiver of rights (Civil Code, Art. 6)F. Repeal of laws (Civil Code, Art. 7)G. Judicial decisions (Civil Code, Art. 8)H. Duty to render judgment (Civil Code, Art. 9)I. Presumption and applicability of custom (Civil Code, Arts. 10-12)J. Legal periods (Civil Code, Art. 13, as amended by Book I, Sec. 31 of theAdministrative Code of 1987 (EO 292))K. Applicability of penal laws (Civil Code, Art. 14)L. Conflict of laws (Civil Code, Arts. 15-18)

II. II. Human Relations (Civil Code, Arts. 19-22)Exclude: Independent Civil Actions and prejudicial questions which will be covered bythe examinations in Remedial LawPERSONSI. Persons and Personality (Civil Code)A. Capacity to act1. Civil personality (Art. 37)2. Restrictions on capacity to act (Arts. 38-39)3. Birth (Arts. 40-41)4. Death (Arts. 42-43)a) Compare Art. 43 with Rule 131, Sec. 3 (jj) presumption of survivorship5. Juridical Persons, Civil Code, Arts. 44-46B. Domicile and residence (Arts. 50-51)II. Marriage (Family Code)Exclude: Muslim Code (P.D. 1083)A. Nature of marriageB. Requisites1. Kinds of requisites (Family Code, Arts. 2-3)3. Effect of absence of requisites (Art. 4)4. Essential requisites (Art. 5)a) Ageb) Consent5. Formal (Arts. 7, 31, 32)6. Ceremony (Art. 6)7. Solemnizing authority (Art. 7-8, 10)a) Exceptions (Art. 35 (2))8. License required (Arts. 3 (2), 9, 11, 20, 26)a) Foreign national (Art. 21)b) Exceptions (Arts. 27, 31-32, 34)9. Marriage certificate (Art. 22)

Exclude: Duties of a Civil Registrar under Arts. 12-19, 23-25B. Effect of marriage celebrated abroad and foreign divorce (Art. 26)C. Void and voidable marriages1. Void marriages (Arts. 5, 35, 36-38, 52-53)a) Absence of requisites (Art. 35)b) Psychological incapacity (Art. 36)c) Incestuous marriages (Arts. 37-38)2. Prescription (Art. 39)3. Subsequent marriage (Arts. 40-44)4. Annullable marriage (Arts. 14, 45-46)5. Voidable marriages (Art. 45-47)6. Presence of prosecutor (Art. 48)7. Pendency of action (Art. 49)8. Effects of nullity (Arts. 50-54)Exclude: A.M. No. 02-11-10-SC, Rule on Declaration of Absolute Nullity of VoidMarriages and Annulment of Voidable Marriages; R.A. 6955, entitled “An Act toDeclare Unlawful the Practice of Matching Filipino Women for Marriage to ForeignNationals on a Mail Order Basis and Other Similar Practices…”; R.A. 9208 or theAnti-Trafficking in Persons Act of 2003

III. III. Legal SeparationA. Grounds (Art. 55 and R.A. 9262 or the Anti-Violence Against Women and TheirChildren Act of 2004)B. Defenses (Arts. 56-57)C. Cooling-off period (Art. 58)D. Reconciliation efforts (Art. 59)E. Confession of judgment (Art. 60)F. Effects of filing petition (Art. 61)G. Effects of pendency (Art. 62)H. Effects of legal separation (Arts. 63-64)1. Reconciliation (Arts. 65-67)Exclude: A.M. No. 02-11-11-SC or the Rule on Legal Separation

IV. IV. Rights and Obligations Between Husband and WifeA. Essential obligations (Art. 68)B. Family domicile (Art. 69)C. Support (Art. 70)D. Management of household (Art. 71)E. Effect of neglect of duty (Art. 72)F. Exercise of profession (Art. 73)Exclude: R.A. 7192 or the Women in Development and Nation Building Act; R.A. 8187,or the Paternity Leave Act of 1996; R.A. 9710 or The Magna Carta of Women.

V. V. Property Relations of the SpousesA. Marriage settlements (Arts. 76-81)B. Donations by reason of marriage (Arts. 82-83, 86, 43(3), 50)C. Void donations by the spouses (Art. 87)D. Absolute Community of Property1. General provisions (Arts. 75-85, 88-90)2. What constitutes community property (Arts. 91-93)3. Charges upon and obligations of the community property (Arts. 94-95)4. Ownership, administration, enjoyment and disposition of the communityproperty (Arts. 96-98)5. Dissolution of community regime (Arts. 99-101)6. Liquidation of the absolute community assets and liabilities (Arts. 102-104)E. Conjugal Partnership of Gains1. General provisions (Arts. 105-108)2. Exclusive property of each spouse (Arts. 109-115)3. Conjugal partnership property (Arts. 116-120)4. Charges upon and obligations of the Conjugal Partnership of Gains (Arts. 121-123)5. Administration of the Conjugal Partnership of Gains (Arts. 124-125)6. Dissolution of the regime of Conjugal Partnership of Gains (Arts. 126-128)7. Liquidation of the conjugal partnership assets and liabilities (Arts. 129-133)F. Separation of property of the spouses and administration of common property by onespouse during the marriage (Arts. 134-142)G. Regime of separation of property (Arts. 143-146)H. Property regime of unions without marriage (Arts. 147-148)

VI. VI. The FamilyA. The family as an institution (Arts. 149-151)B. The family home (Arts. 152-165)Exclude: Arts. 157, 161 and 162VII. Paternity and FiliationA. Legitimate children (Arts. 163-171)B. Proof of filiation (Arts. 172-174)C. Illegitimate children (Art. 175 and Art. 176 as amended by R.A. 9255 allowingillegitimate children to use the surname of their father)D. Legitimated children (Arts. 177-182)Exclude: A.M. No. 06-11-5-SC or the Rule on DNA Evidence

VII. VIII. AdoptionA. Domestic Adoption Act of 1998 (R.A. 8552)1. Who can adopt2. Who can be adopted3. Rights of an adopted child (include Family Code, Arts. 189 and 190 onsuccessional rights)4. Rescission of adoption

Exclude:1. Rule on Adoption (A.M. No. 02-6-02-SC )2. R.A. 9523, entitled “An Act Requiring Certification of the Department of SocialWelfare and Development (DSWD) to Declare a “Child Legally Available forAdoption” as a Prerequisite for Adoption Proceedings….”B. Inter-Country Adoption Act of 1995 (R.A. 8043)1. Who can adopt2. Who can be adoptedExclude: Arts. 183-188, 191-193 of the Family CodeIX. SupportA. What it comprises (Art. 194)B. Who are obliged (Arts. 195-197, 199-200, 206-208)C. Support during marriage litigation (Art. 198)D. Amount (Arts. 201-202)E. When demandable (Art. 203)F. Options (Art. 204)G. Attachment (Art. 205)

XI. Parental AuthorityA. General provisions (Arts. 209-215)B. Substitute and special parental authority (Arts. 216-219)C. Effect of parental authority upon the persons of the children (Arts. 220-224)Exclude:1. Rule on Guardianship of Minors (A.M. No. 03-02-05-SC)2. Rules on Custody of Minors and Writ of Habeas Corpus in Relation toCustody of Minors (A.M. No. 03-04-04-SC)3. Solo Parents' Welfare Act of 2000 (R.A. 8972)4. The Early Childhood Care and Development Act (R.A. 8980)D. Effects of parental authority upon the property of the children (Arts. 225-227)Exclude: R.A. 9231, entitled “An Act Providing for the Elimination of the WorstForms of Child Labor and Affording Stronger Protection for the Working Child…”which will be covered under Labor LawE. Suspension or termination of parental authority (Arts. 228-233)1. Child Abuse Law (R.A. 7610)

XII. XI. Emancipation (Arts. 234 and 236, as amended by R.A. 6809 which lowered theage of majority)

XIII. XII. Summary Judicial Proceedings in Family Law Cases

XIV. XIII. Retroactivity of the Family Code (Art. 256)Exclude: Arts. 254-255, 257 of the Family Code

XV. XIV. Funerals (Civil Code, Arts. 305-310)Exclude: Care and Education of Children (Arts. 356-363, Civil Code)

XVI. XV. Use of SurnamesArts. 364-369, 369-380 (other articles repealed by Family Code)

XVII. XVI. Absence (Civil Code, Art. 43; Art. 41 Family Code)7A. Provisional measures in case of absence (Arts. 381-383)B. Declaration of absence (Arts. 384-386)C. Administration of the property of the absentee (Arts. 387- 389)D. Presumption of death (Arts. 390-392)Exclude: Arts. 393-396 on contingent assets

XVIII. XVII. Civil RegistrarA. Arts. 407-413B. Correction of Clerical Errors (R.A. 9048, entitled “An Act Authorizing the City orMunicipal Civil Registrar or the Consul General to Correct a Clerical or TypographicalError in an Entry and/or Change of First Name or Nickname in the Civil Register WithoutNeed of a Judicial Order….”)C. Rule 108, Rules of CourtExclude: Act No. 375 and the Implementing Rules and Regulations of R.A. 9048PROPERTYI. CharacteristicsII. Classification (Arts. 415-418)A. Hidden treasure (Arts. 438-439)B. Right of accession (Art. 440)1. Fruits (Arts. 441-444)2. With respect to immovable propertya) Builder, planter, sower on land of another in the concept of owner(i) Builder, planter, sower in good faith (Arts. 448-456)(ii) Builder, planter, sower in bad faith (Arts. 449-450)b) Usufructuary (Art. 579)3. Lands adjoining river banksa) Alluvion (Art. 457)b) Change of course of river (Arts. 461-462 and P.D. 1067 or the WaterCode)c) Avulsion (Arts. 459-463)4. Islands (Arts. 464-465)C. By object1. Real or immovable2. Personal or movableD. By owner1. Of public dominion2. Of private ownershipa) Patrimonial property(i) Distinction between private property of individual persons andof state entitiesE. By nature1. Consumable/non-consumable vs. Fungible/non-fungible

XIX. III. OwnershipA. Right in general1. Bundle of rightsa) Jus utendi, fruendi, abutendi, vindicandi, disponendi (possidendi)(i) Actions to recover ownership and possession of real property(a) Distinctions between accion reivindicatoria, accionpubliciana, accion interdictal(b) Distinction between forcible entry and unlawfuldetainer(ii) Actions for recovery of possession of movable property(iii) Requisites for recovery of property(a) Proof of right(b) Identity(c) Reliance on strength of own evidence, not weakness ofdefendant’s claim2. Distinction between real and personal rightsB. Modes of acquiring ownership1. Original2. DerivativeC. Limitations1. General limitations: taxation, eminent domain, police power2. Specific limitations: those imposed by law (sic utere tuo, nuisance, state of

necessity), easements voluntarily imposed by owner (servitudes, mortgagesimposed by contract)

XX. IV. AccessionA. Right to hidden treasureB. General rules1. For immovables:a) Accession discreta (natural, industrial, civil fruits) and continua(over immovables: artificial/industrial and natural)b) Accession industrial (building, planting, sowing in good faith or badfaith)c) Accession natural (accretion, avulsion, rivers, islands)2. For movables:a) Accession continua (conjunction, adjunction, commixtion/ confusion,specification)b) Rules for determining the principal and accessoryV. Quieting of Title to or Interest in and Removal or Prevention of Cloud over Title toor Interest in Real Property (Arts. 476-481)A. RequirementB. Distinction between quieting of title and removing/preventing a cloudC. Prescription/non-prescription of actionVI. Co-ownershipA. Characteristics of co-ownership1. In general2. Special rulesa) Concept of condominium(i) Condominium corporation(ii) Interest in real property(iii) Concept of common areas, amendment(iv) Documents to consider (master deed, declaration ofrestrictions, articles and by-laws of the condominium corporationor the association, where applicable)b) Rights and obligations of condominium owners(i) Contributions/dues(ii) P.D. 957, The Subdivision and Condominium Buyers'Protective Decreeand R.A. 6552, Realty Installment Buyer Actc) Grounds for partition of common areas, or dissolution of thecondominiumB. Source of co-ownershipC. Rights of co-owners1. Distinction between right to property owned in common and full ownershipover his/her ideal share2. Right to oppose acts of alteration3. Right to partition4. Right to contributions for expenses (necessary expenses, taxes)5. Waiver6. Right to redemption of co-owners shareD. Termination/extinguishment1. Effect of partition2. Rights against individual co-owners in case of partition3. Partition in case co-owners cannot agree

XXI. VII. PossessionA. CharacteristicsB. How acquired (Art. 531)C. Effects of possession1. Possessor in good faith (Arts. 544, 526-527)a) Right to pending fruits (Art. 545)b) Right to be reimbursed(i) Necessary and useful expenses (Arts. 546-547)(ii) Expenses for pure luxury (Art. 548)2. Possessor in bad faith (Arts. 449, 549, 552)D. Loss or unlawful deprivation of a movable (Arts. 559, 1505(3))1. Period to recover (Arts. 1140, 1134, 1132, 1133)2. Finder of lost movable (Arts. 719-720)3. Distinguished from voidable title (Art. 1506)E. In concept of owner, holder, in one’s own name, in name of anotherF. Rights of the possessorG. Loss/termination

XXII. VIII. UsufructA. CharacteristicsB. ClassificationC. Rights and obligations of usufructuaryD. Rights of the ownerE. Extinction/termination

XXIII. IX. Easements (Arts. 613, 615-616)A. CharacteristicsB. Classification1. Legal easementsa) Right of way2. Voluntary easements (Art. 688)a) Effect of zoning ordinanceC. Modes of acquiring easements1. Compulsory easements (Arts. 620-624)2. Easement of light and view (Arts. 669-673)D. Rights and obligations of dominant and subservient estateE. How terminatedX. Nuisance (Arts. 694-707)A. DefinitionB. ClassificationC. Remedies

XXIV. XI. Modes of Acquiring Ownership (Art. 712)A. Occupation (Art. 713)B. Donation1. Definition (Arts. 725-726, 746)2. Characteristicsa) Extent to which donor may donate propertyb) Reservations and reversions3. Kindsa) Donation inter vivos (Art. 729)b) Donation by reason of marriage (Family Code, Arts. 82-83, 86)c) Donation mortis causa (Art. 728)d) Onerous donation (Art. 733)e) Simple, modal, conditional4. Formalities requireda) How made and acceptedb) Perfectionc) Differences between formalities for donation of real, personalproperties(i) Movables (Art. 748)(ii) Immovables (Art. 749)5. Qualifications of donor, donee6. Effects of donation/limitationsa) In generalb) Double donationsc) Excessive/inofficiousd) Scope of amount (Arts. 750-752)e) In fraud of creditors (Art. 759)7. Void donations (Arts. 739-740, 1027)8. Revocation or reductiona) Grounds for revocation, grounds for reductionb) How donec) Effectsc) Prescriptione) Inofficious donations (Arts. 760-761, 771-773)f) Ingratitude (Arts. 765, 769)Exclude: Intellectual creations

XXV. PRESCRIPTIONI. Definition (Art. 1106)A. Acquisitive (Art. 1117)1. Characteristics2. Ordinarya) Good faith (Art. 1127)b) Just title (Arts. 1129-1130)3. Extraordinary (Arts. 1137 and 1132, second par.)4. Requisites (Arts. 1118-1125)

5. Period (Arts. 1132, 1134, 1138)6. What cannot be required by acquisitive prescriptionB. Extinctive1. Characteristics2. Requisites3. PeriodsII. No Prescription ApplicableA. By offender (Art. 1133)B. Registered lands (P.D. 1529)C. Art. 1143, Civil Code1. Action legal to demand a right of way (Art. 649)2. To abate a nuisanceD. Action to quiet title if plaintiff is in possessionE. Void contracts (Art. 1410)F. Action to demand partition (Art. 494)1. Distinguished from lachesG. Property of public dominion

Prescription or limitation of actionsA. To recover movables (Art. 1140)B. To recover immovables (Art. 1141)C. Other actions (Arts. 1142-1149)IV. Interruption (Art. 1155)

OBLIGATIONSI. Definition of an ObligationIII. Different Kinds of PrestationsIV. Classification of Obligations

VI. Sources of obligations (Arts. 1156-1157)A. A single act or omission can give rise to different causes of actionB. Natural obligationsC. Extra-contractual obligations

VII. VI. Nature and Effect of ObligationsA. Obligation to give1. A determinate or specific thing2. An indeterminate or generic thingB. Obligation to do or not to doC. Breaches of obligations1. Complete failure to perform2. Default, delay or mora – no default unless creditors makes a demand;exceptions (Art. 1169)a) Mora solvendib) Mora accipiendic) Compesatio morae3. Fraud in the performance of obligationa) Waiver of future fraud is void (Art. 1171)4. Negligence (culpa) in the performance of obligationa) Diligence normally required is ordinary diligence or diligence of a goodfather of a familyb) Exception: common carriers which are required to exerciseextraordinary diligence5. Contravention of the tenor of obligation6. Legal excuse for breach of obligation: fortuitous event; requisitesD. Remedies available to creditor in cases of breach1. Specific performancea) Substituted performance by a third person on obligation to delivergeneric thing and in obligation to do, unless a purely personal act2. Rescission (resolution in reciprocal obligations)3. Damages, in any event4. Subsidiary remedies of creditors (Art. 1177)a) Accion subrogatoriaa) Accion paulianac) Accion directa (Arts. 1652, 1608, 1729, 1893)

VIII. VII. Kinds of Civil ObligationsA. Pure (Arts. 1179-1180)B. Conditional (Art. 1181)1. Suspensive condition2. Resolutory condition3. Potestative: casual or mixeda) Obligations subject to potestative suspensive conditions are void (Art.1182)4. Effect of the happening of suspensive condition or resolutory condition (Art.1187)a) Extent of retroactivity5. Effect of improvement, loss or deterioration of specific thing before thehappening of a suspensive condition in obligation to do or not to do (Art. 1189)6. Effect when a resolutory condition in obligation to do or not to do happensand there is improvement, loss or deterioration of the specific thing (Art. 1190,par. 3)C. Obligation with a period or a term (Art. 1193)1. Presumption that period is for the benefit of both debtor and creditor (Art.1196)2. Effect if suspensive period is for the benefit of both debtor and creditor3. Effect if given to debtor alonea) Instances when debtor losses benefit of period (Art. 1198)2. Resolutory period3. Definite or indefinite perioda) Instances when courts may fix the period (Art. 1197)b) Creditor must ask court to set the period before he can demandpaymentD. Alternative or facultative (Art. 1199)1. Difference between alternative and facultative obligations2. Effect of loss of specific things or impossibility of performance of alternative,through fault of debtor/creditor or through fortuitous events

IX. VIII. Joint and Solidary ObligationA. Joint (divisible) obligation1. Concurrence of two or more creditors and or two or more debtorsa) Joint obligation is presumed, unless otherwise indicated by the law ornature of obligation (Art. 1207)b) Obligation presumed to be divided into as many equal shares as thereare creditors or debtorsc) Each credit is distinct from one another, therefore a joint debtorcannot be required to pay for the share of another with debtor, althoughhe may pay if he wants to (Art. 1209)d) Insolvency of a joint debtor, others not liable for his share (Art. 1209)B. Joint indivisible obligation1. Obligation cannot be performed in parts but debtors are bound jointly2. In case of failure of one joint debtor to perform his part (share), there isdefault but only the guilty debtor shall be liable for damagesC. Solidary obligation1. Mutual agency among solidary debtors (Arts. 1214, 1215)2. Mutual guaranty among solidary debtors (Arts. 1216, 1217, 1222)3. Each one of solidary creditors may do whatever may be useful to the others,but not anything prejudicial to them (Art. 1212);a) Effect of any novation, compensation, confusion or remission of debtexecuted by a solidary creditorD. Divisible and indivisible (Art. 1225)E. Obligations with a penal clause (Arts. 1226, 1228-1230)

X. IX. Extinguishment of ObligationsA. Payment (Arts. 1236-1238)1. Dation in payment (Art. 1245)2. Form of payment (Art. 1249)3. Extraordinary inflation or deflation (Art. 1250)4. Application of payment (Art. 1252-1254)5. Tender of payment and consignation (Arts. 1256-1261)B. Loss of determinate thing due or impossibility or difficulty of performance (Arts.1262, 1266-1267)C. Condonation or remission of debt (Art. 1270)1. Express condonations and required formality thereof (Art. 1270)2. Implied (Arts. 1271, 1272, 1274)D. Confusion or Merger of Rights (Arts. 1275, 1272)E. Compensation

1. Kinds (Arts. 1278, 1279)a) Legal compensation (Arts. 1286-1290)b) Agreement (Art. 1282)c) Voluntary (Art. 1282)d) Judicial (Art. 1283)e) Facultative2. Obligations not compensable (Art. 1287-1288)F. Novation (Arts. 1291-1304)

CONTRACTSI. Essential Requisites (Art. 1261)

II. Kinds of ContractsA. ConsensualB. RealC. Formal or solemn1. Donations (Arts. 748-749)2. Partnership where real property contributed (Arts. 1771, 1773)3. Antichresis (Art. 2134)4. Agency to sell real property or an interest therein (Art. 1874)5. Stipulation to charge interest (Art. 1956)6. Stipulation limiting common carrier’s duty of extraordinary diligence toordinary diligence (Art. 1744)7. Chattel mortgage8. Sale of large cattle

III. Formality (Arts. 1356, 1357, 1358)IV. Defective ContractsA. Rescissible contracts (Art. 1381)1. Difference with rescission (resolution) under Art. 1191B. Voidable contracts (Arts. 1328-1344, 1390-1402)C. Unenforceable contracts (Arts. 1403-1408, 1317)D. Void contracts (Arts. 1409, 1346)1. Pactum commissorium (Arts. 2088, 2130, 1390)2. Pactum de non alienando (Art. 2130)3. Pactum leonina (Art. 1799)V. Effect of contracts (Art. 1311)

SALESI. IntroductionA. Definition of sales (Arts. 1458, 1470)B. Essential requisites of a contract of sale (Art. 1505)C. Stages of contract of saleD. Obligations created (Art. 1165)E. Characteristics of a contract of saleF. Sale is title and not modeG. Sale distinguished from other contractsH. Contract of sale/contract to sell

II. Parties to a Contract of SaleA. Capacity of parties (Arts. 1489-1492)B. Absolute incapacity (Arts. 1327, 1397, 1399)C. Relative incapacity: married personsD. Special disqualifications (Arts. 1491-1492)

III. Subject MatterA. Requisites of a valid subject matter (Arts. 1459-1465)B. Particular kinds

IV. Obligations of the Seller to Transfer OwnershipA. Sale by a person not the owner at time of delivery (Arts. 1462, 1505, 1459)1. Exceptions

B. Sale by a person having a voidable title (Arts. 1506, 559)

V. PriceA. Meaning of price (Arts. 1469-1474)B. Requisites for a valid priceC. How price is determinedD. Inadequacy of price (Arts. 1355, 1470)E. When no price agreed (Art. 1474)F. Manner of payment must be agreed uponG. Earnest money vs. Option money (Art.1482)

VI. Formation of Contract of SaleA. Preparatory (Art. 1479)1. Offer (Art. 1475)2. Option contract (Arts. 1479, 1324)3. Right of first refusal4. Mutual promise to buy and sell (Art. 1479)B. Perfection (Arts. 1475, 1319, 1325, 1326)C. Formalities of the contract, Art. 1403 (d) (e)

VII. Transfer of OwnershipA. Manner of transfer (Arts. 1477, 1496-1501)B. When delivery does not transfer titleC. Kinds of deliveryD. Double sales (Art. 1544)E. Property Registration Decree1. Requisites for registration of deed of sale in good faith2. Accompanied by vendor’s duplicate certificate of title, payment of capital gainstax, and documentary tax registration fees

VIII. Risk of LossA. General rule (Arts. 1263, 1189)B. When loss occurred before perfectionC. When loss occurred at time of perfection (Arts. 1493 and 1494)D. When loss occurred after perfection but before deliveryE. When ownership is transferred (Art. 1504)

IX. Documents of TitleA. Definition (Art. 1636)B. Purpose of documents of titleC. Negotiable documents of titleD. Non-negotiable documents of titleE. Warranties of seller of documents of title (Art. 1516)F. Rules on levy/garnishment of goods (Arts. 1514, 1519, 1520)

X. Remedies of an Unpaid SellerA. Definition of unpaid seller (Art. 1525)B. Remedies of unpaid sellerXI. Performance of ContractA. Delivery of thing sold1. Sale of movables (Arts. 1522, 1537, 1480)2. Sale of immovables (Arts. 1539, 1543)3. Inspections and acceptanceB. Payment of price

XII. WarrantiesA. Express warrantiesB. Implied warranties (Art. 1547)C. Effects of warrantiesD. Effects of waiversE. Buyer’s options in case of breach of warranty (Art. 1599)

XIII. Breach of ContractA. Remedies of the seller (Arts. 1636, 1594)1. Sale of movablesB. Recto Law: sale of movables on installment (Arts. 1484-1486)C. Sale of immovables1. P.D. 957, Secs. 23, 242. Sale of immovables on installment (Maceda Law)D. Remedies of the buyer1. Sale of movable2. Sale of immovables

XIV. Extinguishment of the SaleA. Causes (Arts. 1600, 1231)B. Conventional redemption (Art. 1601)C. Equitable mortgage (Arts. 1602-1604)D. Distinguished from option to buy (Art. 1602)E. Period of redemption (Art. 1606)F. Exercise of the right to redeem (Art. 1616)G. Legal redemption (Art. 1619)H. Age redemption (Art. 1619)

XV. The Subdivision and Condominium Buyers' Protective Decree (P.D. 957)

XVI. The Condominium Act (R.A. 4726)Exclude: Electronic Commerce Act of 2000 (R.A. 8792); Public Land Law, Retail Trade andLiberalization Act, Bulk Sales Law (Act No. 3952)

SUCCESSIONI. General Provisions (Arts. 774-780)A. Definition/what is transmitted (Arts. 774, 776, 781)B. When succession occurs (Art. 777)C. Kinds of successors: heirs, devisees, legatees (Art. 782)

II. Testamentary SuccessionA. Wills1. In generala) Definition and characteristics (Arts. 783-787)(i) Act of making a will a strictly personal act (Arts. 784-785, 787)(a) Exception (Art. 786)(ii) Rules of construction and interpretation (Arts. 788-794)(iii) Law governing formal validity (Art. 795)2. Testamentary capacity and intent (Arts. 796-803)a) Age requirement (Art. 797)b) Soundness of mind (Arts. 798-801)(i) When testator is deemed to be of sound mind(ii) Presumptions(iii) Supervening incapacity3. Forma) Rules governing the formal validity of wills (Arts. 17, 815-817, 819)(i) See law governing substantive validity (Arts.15, 16, 1039)b) Common requirements (Art. 804)(i) In writing(ii) Language/dialect requirementc) Notarial wills(i) Arts. 805-806(ii) Special rules for handicapped testators (Arts. 807-808)(iii) Substantial compliance (Art. 809)(iv) Witnesses to wills(Arts. 820-824)d) Holographic wills(i) Requirements (Arts. 810-814)(a) Requirements in case of alterations (Art. 814)(ii) Witnesses required for probate (Art. 811)e) Joint wills (Arts. 818-819)4. Codicils (Arts. 825-826)a) Definition and formal requirements5. Incorporate by reference (Art. 827)

6. Revocation (Arts. 828-834)a) Kinds (Art. 830)7. Allowance and disallowance of wills (Arts. 838-839)a) Probate requirement (Art. 838)(i) Issues to be resolved in probate proceedings (Art. 839)(a) Exceptions: when practical considerations demand theintrinsic validity of the will be resolved(ii) Effect of final decree of probate, res judicata on formalvalidityb) Grounds for denying probate (Art. 839)B. Institution of heirs (Arts. 840-856)1. Preterition (Art. 854)a) Definitionb) Requisitesc) Effects(i) Effects of preterition, devisees only entitled to completion oflegitime2. Concept – Art. 8543. Compulsory heirs in the direct line4. Preterition vs. Disposition less than legitime/donation inter vivos – Arts. 855,906-918C. Substitution of heirs (Arts. 857-870)1. Definition (Art. 857)2. Kinds (Arts. 858-860)3. Simple substitution (Art. 859)4. Fideicommissary substitution (Arts. 863-866, 869)D. Conditional testamentary dispositions and testamentary dispositions with a term(Arts. 871-885)E. Legitime (Arts. 886-914)1. Definition (Art. 886)2. Compulsory heirs and various combinations (Arts. 887-903)3. Reserva troncal (Art. 891)4. Disinheritancea) Disinheritance for cause (Art. 919)(i) Reconciliation (Art. 922)(ii) Rights of descendants of person disinherited (Art. 923)b) Disinheritance without cause (Art. 918)5. Legacies and devisees (Arts. 924-959)

III. Legal or Intestate Succession (Arts. 960-1014)A. General provisions (Arts. 960-969)1. Relationship (Arts. 963-969)2. Right of representation (Arts. 970-977)B. Order of intestate succession (Arts. 978-1014, 992)IV. Provisions Common to Testate and Intestate Succession (Arts. 1015-1105)A. Right of accretion (Arts. 1015-1023)1. Definition and requisites (Arts. 1015-1016)B. Capacity to succeed by will or intestacy (Arts. 1024-1040)1. Persons incapable of succeeding (Arts. 1027, 739, 1032)2. Unworthiness vs. DisinheritanceC. Acceptance and repudiation of the inheritance (Arts.1041-1057)D. Collation (Arts. 908-910, 1061-1062)E. Partition and distribution of estate (Arts. 1078-1105)1. Partition (Arts. 1079, 1080)2. Partition inter vivos3. Effects of partition (Arts. 1091, 1097, 1100, 1104-1105)Exclude: Executors and administrators (Arts. 1058-1060), which will be covered underRemedial Law

PARTNERSHIPI. Contract of PartnershipA. DefinitionB. ElementsC. Rules to determine existenceD. How partnership is formedE. Partnership termF. Universal vs. Particular; General vs. LimitedG. Partnership by estoppelH. Partnership v. Joint venture

I. Professional partnershipJ. Management (Arts. 1800-1803)

II. Rights and Obligations of PartnershipIII. Rights and Obligations of Partners Among ThemselvesIV. Obligations of Partnership/Partners to Third PersonsV. Dissolution (Art. 1830)

VI. Limited PartnershipA. DefinitionB. How limited partnership is formed/amendedC. Rights and obligations of a limited partnerExclude: Questions requiring application of SEC opinions or regulations

AGENCYI. Definition of Agency

II. Powers (Arts. 1877-1878)A. To bind principal (Arts. 1897-1902)B. Exception (Art. 1883)

III. Express vs. Implied AgencyIV. Agency by EstoppelV. General vs. Special AgencyVI. Agency Couched in General TermsVII. Agency Requiring Special Power of AttorneyVIII. Agency by Operation of LawIX. Rights and Obligations of PrincipalX. Irrevocable Agency (Arts. 1927-1930)

XI. Modes of ExtinguishmentCOMPROMISEI. Definition (Art. 2028)II. Void Compromise (Art. 2035)III. Effect (Arts. 2037, 2041)

CREDIT TRANSACTIONSI. LoanA. Commodatum vs. MutuumB. Obligations of bailor and baileeC. Interest and the suspension of usury law

II. DepositA. Voluntary depositB. Necessary depositC. Judicial deposit

III. Guaranty and SuretyshipA. Nature and extent of guarantyB. Effects of guarantyC. Extinguishment of guarantyD. Legal and judicial bonds

IV. PledgeA. DefinitionB. KindsC. Essential requirementsD. Obligation of pledgeE. Rights of pledgorF. Perfection (Arts. 2093, 2096)

G. Foreclosure (Arts. 2112, 2115)H. Pledge by operation of law (Art. 2121-2122)I. Distinguished from chattel mortgage (Arts. 2140, 1484)V. Real MortgageA. Definition and characteristicsB. Essential requisitesC. Foreclosure

VI. AntichresisA. Definition and characteristicsB. Obligations of antichretic creditor

VIII. Chattel MortgageA. Definition and characteristicsB. Registration

IX. VIII. Quasi-contractsA. Negotiorum gestioB. Solutio indebiti

X. IX. Concurrence and Preference of CreditsA. Meaning of concurrence and preferenceB. Preferred credits on specific movablesC. Exempt propertyD. Classification of creditsE. Order of preference of creditsX. Insolvency LawA. Definition of insolvencyB. Suspension of paymentsC. Voluntary insolvencyD. Involuntary insolvencyExclude: Warehouse Receipts Law, Usury Law

XI. LEASEI. Lease of ThingsII. Lease of Work or Services

III. Lease of Rural and Urban LandsA. Qualified personsB. RegistrationC. Prohibitions

IV. Rights and Obligations of Lessor and LesseeV. Special Rules for Lease of Rural/Urban LandsVI. Household Service

VII. Contract of LaborA. Obligation in case of death/injury of laborers

XI. Contract for Piece of Work

LAND TITLES AND DEEDSI. Torrens SystemA. Concept and backgroundB. Certificate of title

II. Regalian DoctrineA. ConceptB. EffectsC. Concept of native title, time immemorial possession

III. Citizenship RequirementA. Individuals and corporations

IV. Original RegistrationA. Who may apply1. Under P.D. 15292. Under C.A. 1413. Under R.A. 8371B. Registration process and requirementsC. RemediesD. Cadastral registrationV. Subsequent RegistrationA. Voluntary dealingsB. Involuntary dealings

VI. Non-registrable Properties

VII. Dealings with Unregistered LandsExclude:1. History of land laws2. Remedies sufficiently covered under Remedial Law3. Registration of judgments, orders and partitions4. Assurance fund5. Registration of patents6. Administrative structure of the Register of Deeds7. Consultas.

TORTS AND DAMAGESBook I--TortsI. PrinciplesA. Abuse of right; elementsB. Unjust enrichmentC. Liability without faultD. Acts contrary to lawE. Acts contrary to morals

II. Classification of TortsA. According to manner of commission: intentional, negligent and strict liabilityB. According to scope: general or specific

III. The TortfeasorA. The direct tortfeasor1. Natural persons2. Juridical personsB. Persons made responsible for others1. In generala) Quasi-delicts under Art. 2180, and the Family Code, Arts. 218-219, 221(i) Elements; definition(ii) Distinguished from culpa contractual and culpa criminalb) Indirect liability for intentional actsc) Presumption of negligence on persons indirectly responsibled) Nature of liability; joint or solidary?2. In particulara) Parentsb) Guardiansc) Owners and managers of establishments and enterprisesd) Employers(i) Meaning of employers(ii) Requisites(a) Employee chosen by employer or through another(b) Services rendered in accordance with orders which employer has authority to give(c) Illicit act of employee was on the occasion or by reason of the functions entrusted to him(d) Presumption of negligence(iii) Employer need not be engaged in business or industry

(iv) Defense of diligence in selection and supervision(v) Nature of employer’s liabilitye) Statef) Teachers and heads of establishments of arts and tradesC. Joint tortfeasors (Art. 2194, Civil Code)

IV. Act of Omission and Its ModalitiesA. Concept of act

V. Proximate CauseA. Concept1. Definition2. Test3. Distinguished from immediate cause4. Distinguished from intervening cause5. Distinguished from remote and concurrentB. Cause in fact1. Substantial factor test2. Concurrent causesC. Legal cause1. Natural and probable consequences2. ForeseeabilityD. Efficient intervening causeE. Cause vs. ConditionF. Last clear chance

VI. Legal InjuryA. ConceptB. Elements of rightC. Violation of right or legal injuryD. Classes of injury1. Injury to persons2. Injury to property3. Injury to relations

VII. Intentional TortsA. General1. Concept2. Classesa) Interference with persons and property(i) Physical harms(ii) Non-physical harmsb) Interference with relationsB. Interference with rights to persons and property1. Intentional physical harmsa) General(i) Concept(ii) Kindsb) Violation of persons security, physical injuries (Art. 33, Civil Code)(i) Battery (physical injury)(ii) Assault (grave threat)c) False imprisonment (illegal detention)d) Trespass to land(i) Concept(ii) Elementse) Interference with personal property(i) Trespass to chattels(ii) Conversion2. Intentional non-physical harmsa) General(i) Concept(ii) Kindsb) Violation of personal dignityc) Infliction of emotional distressd) Violation of privacy(i) Appropriation(ii) Intrusion

(iii) Public disclosure of private facts(iv) False light in the public eyee) Disturbance of peace of mindf) Malicious prosecutiong) Defamation(i) Defenses(a) Absence of elements(b) Privilegeh) Fraud or misrepresentation (formerly deceit)i) Seductionj) Unjust dismissalC. Interference with relations1. Generala) Conceptb) Kinds2. Family relationsa) Alienation of affectionb) Loss of consortiumc) Criminal conversation (adultery)3. Social relationsa) Meddling with or disturbing family relationsb) Intriguing to cause another to be alienated from his friends4. Economic relationsa) Interference with contractual relationsb) Unfair competition5. Political relationsa) Violation of right to suffrage (Civil Code, Art. 32)b) Violation of other political rights (freedom of speech, press, assembly and petition, etc.)6. Defensesa) Absence of elementb) Privilege(i) Consent(ii) Self-defense and defense of others(iii) Necessity (Civil Code, Art. 429)(iv) Defense of property(v) Authority of lawc) Prescriptiond) Waivere) Force majeure

VIII. NegligenceA. ConceptB. Good father of a family or reasonably prudent manC. Standard of care1. Civil Code, Art. 11732. Emergency ruleD. Unreasonable risk of harmE. EvidenceF. Presumption of negligence1. Legal provisions2. Res ipsa loquiturG. Defenses1. Completea) Absence of element(i) Due diligence(ii) Acts of public officersb) Accident or fortuitous eventc) Damnum absque injuriad) Authority of lawe) Assumption of riskf) Last clear chanceg) Prescription (Civil Code, Arts. 1144, 1146, and 1150)h) Waiveri) Double recovery (Civil Code, Art. 2177)

XII. Special Liability in Particular ActivitiesA. General1. ConceptB. Products liability

1. Manufacturers or processorsa) Elementsb) Consumer Act [R.A. 7394, Secs. 92-107, (Ch. 1)]C. Nuisance (Civil Code, Arts. 694-707)1. Nuisance per se and nuisance per accidence2. Public nuisance and private nuisance3. Attractive nuisanceD. Violation of constitutional rights1. Violation of civil libertiesE. Violation of rights committed by public officersF. Provinces, cities and municipalitiesG. Owner of motor vehicleH. Proprietor of building or structure or thingI. Head of familyX. Strict LiabilityA. Animals1. Possessor and user of an animalB. Nuisance (supra)1. Classesa) Per se or per accidentsb) Public or private2. Easement against nuisanceC. Products liability (supra)1. Consumer act

Book II--DamagesI. General ConsiderationsA. Classification1. Under Art. 2197 of the Civil Code2. According to purpose3. According to manner of determination4. Special and ordinary

II. Actual and Compensatory DamagesA. ConceptB. Requisites1. Alleged and proved with certainty2. Not speculativeC. Component elements1. Value of loss; unrealized profit2. Attorney’s fees and expenses of litigation3. InterestD. Extent or scope of actual damages1. In contracts and quasi-contracts2. In crimes and quasi-delicts

III. Moral DamagesA. Concept (Arts. 2217-2218)B. When recoverable (Arts. 2219-2220)1. In seduction, abduction, rape and other lascivious acts2. In acts referred to in Arts. 21, 26, 27, 28, 29, 32, 34 & 35, Civil Code,3. In cases of malicious prosecution

IV. Nominal DamagesA. ConceptB. When awarded

V. Temperate or Moderate DamagesA. ConceptB. When awarded

VI. Liquidated DamagesA. Concept (Civil Code, Art. 2226)

B. Rules governing in case of breach of contract

VII. Exemplary or Corrective DamagesA. Concept (Civil Code, Art. 2229)B. When recovered1. In criminal offenses (Civil Code, Art. 2230)2. In quasi-delicts (Civil Code, Art. 2231)3. In contracts and quasi-contracts (Civil Code, Art. 2232)C. Requisites1. Arts. 2233, 2234

VIII. Damages in Case of DeathA. In crimes and quasi-delicts causing death

1. In death caused by breach of conduct by a common crime

IX. Graduation of DamagesA. Duty of injured party1. Art. 2203B. Rules1. In crimes2. In quasi-delict (Civil Code, Art. 2214)3. In contracts, quasi-contracts and quasi-delicts (Civil Code, Art. 2215)4. Liquidated damages (Civil Code, Art. 2227)5. Compromise

X. Miscellaneous RulesA. Damages that cannot co-exist1. Nominal with other damages (Art. 2223)2. Actual and liquidated (Art. 2226)B. Damages that must co-exist1. Exemplary with moral, temperate, liquidated or compensatoryC. Damages that must stand alone1. Nominal damages (Art. 2223)Exclude: Distinction between tort and quasi-delictInclude: Pertinent Supreme Court decisions promulgated up to January 31, 2012.

SYLLABUS FOR THE 2012 BAR EXAMINATIONSCRIMINAL LAW

I. Revised Penal Code/special laws, presidential decrees, and executive ordersA. Book 1(Articles 1-99, RPC, excluding provisions on civil liability), includingrelated special laws)1. Fundamental principlesa) Definition of Criminal Law(i) Difference between Mala in Se and Mala Prohibitab) Scope of application and characteristics of Philippine criminal law(i) Generality(ii) Territoriality(iii) Prospectivityc) Constitutional limitations on the power of Congress to enact penal laws in theBill of Rights(i) Equal protection(ii) Due process(iii)Non-imposition of cruel and unusual punishment or excessive fines(a) Act Prohibiting the Imposition of Death Penalty in the Philippines (R.A.9346)(iv) Bill of attainder(v) Ex post facto law2. Feloniesa) Classifications of feloniesb) Elements of criminal liabilityc) Impossible crimed) Stages of executione) Conspiracy and proposalf) Multiple offenders (differences, rules, effects)(i) Recidivism(ii) Habituality (Reiteracion)(iii) Quasi-Recidivism(iv) Habitual Delinquencyg) Complex crimes vis special complex crimes3. Circumstances which affect criminal liabilitya) Justifying circumstances(i) Anti-Violence Against Women and Their Children Act of 2004 (R.A. 9262)(a) Battered woman syndromeb) Exempting circumstances(i) Juvenile Justice and Welfare Act of 2006 (R.A.9344); also refer to Child andYouth Welfare Code (P.D. 603, as amended)(a) Definition of child in conflict with the law(b) Minimum age of criminal responsibility(c) Determination of age(d) Exemption from criminal liabilityc) Mitigating circumstancesd) Aggravating circumstances(i) Generic(ii) Qualifying(a) Decree Codifying the Laws on Illegal/Unlawful Possession,Manufacture, Dealing in, Acquisition or Disposition, of Firearms,Ammunition or Explosives (P.D. 1866, as amended by R.A. 8294) as anaggravating circumstance(b) The Comprehensive Dangerous Drugs Act of 2002 (R.A.9165)

(i) As a qualifying aggravating circumstance(ii) Immunity from prosecution and punishment, coverage(iii) Minor offenders(iv) Application/Non application of RPC provisions (Sec. 98, R.A. No.9165) provisions (sec. 98) cf. Art. 10, RPCe) Alternative circumstancesf) Absolutory cause4. Persons criminally liable/Degree of participationa) Decree Penalizing Obstruction of Apprehension and Prosecution of CriminalOffenders (P.D. 1829)(i) Punishable acts(ii) Compare with Article 20 (accessories exempt from criminal liability)5. Penaltiesa) General principles(i) Act Prohibiting the Imposition of Death Penalty in the Philippines (R.A.9346)b) Purposesc) Classificationd) Duration and Effecte) Application(i) Indeterminate Sentence Law (R.A. 4103, as amended)(a) Application on the imposed sentence(b) Coverage(c) Conditions of parole(ii) Three-fold rule(iii) Subsidiary imprisonmentf) Execution and service(i) Probation Law (P.D. 968, as amended)(a) Definition of terms(b) Purpose(c) Grant of probation, manner and conditions(d) Criteria of placing an offender on probation(e) Disqualified offenders(f) Period of probation(g) Arrest of probationer(h) Termination of probation; exception(i) The Comprehensive Dangerous Drugs Act of 2002 (R.A. 9165)(ii) Juvenile Justice and Welfare Act of 2006 (R.A. 9344); also referto Child and Youth Welfare Code (P.D. 603, as amended)(a) Definition of child in conflict with the law(b) Exemption from criminal liability(c) Juvenile justice and welfare systemg) Distinguished from preventive imprisonment6. Modification and extinction of criminal liabilitya) Prescription of crimesb) Prescription of penaltiesc) Pardon by offended partyd) Pardon by the Chief Executivee) Amnesty

B. Book II (Articles 114-365), including related special laws1. Crimes Against National Security (Articles 114-123); in addition:a) Anti-Piracy and Anti- Highway Robbery (P.D.532)(i) Definition of terms(ii) Punishable actsb) Anti-Hijacking Law (P.D. 6235)(i) Punishable actsc) Human Security Act of 2007(R.A. 9372)(i) Punishable acts of terrorism(ii) Who are liable2. Crimes Against the Fundamental Laws of the State (Articles 124-133); in addition:a) Human Security Act of 2007 (R.A. 9372)(i) Period of detentionb) Anti-Torture Act of 2009 (R.A. 9745)(i) Punishable acts(ii) Who are liable3. Crimes Against Public Order (Articles 134-160); in addition:a) Decree Codifying the Laws on Illegal / Unlawful Possession, Manufacture,Dealing in, Acquisition or Disposition of Firearms, Ammunition or Explosives (P.D.1866, as amended by R.A. 8294) as an element of the crimes of rebellion,insurrection, sedition, or attempted coup d’etat

b) Human Security Act of 2007 (R.A. 9372)(i) Punishable acts of terrorism(ii) Who are liable(iii) Absorption principle in relation to complex crimes4. Crimes Against Public Interest (Articles 161-187); in addition:a) The New Public Bidding Law (R.A. 9184)(i) Prohibited actsb) Anti-Alias Law (C.A. 142)(i) Punishable acts(ii) Exception5. Crimes Relative to Opium and Other Prohibited Drugsa) The Comprehensive Dangerous Drugs Act of 2002 (R.A. 9165)(i) Punishable acts(ii) Who are liable(iii) Attempt or conspiracy, effect on liability(iv) Immunity from prosecution and punishment6. Crimes Against Public Morals (Articles 200-202)7. Crimes Committed by Public Officers (Articles 203-245); in addition:a) Anti-Graft and Corrupt Practices Act (R.A. 3019, as amended)(i) Coverage(ii) Punishable acts(iii) Exceptionsb) Anti-Plunder Act (R.A. 7080, as amended)(i) Definition of terms(ii) Ill-gotten wealth(iii) Plunder(iv) Series/Combination(v) Patternc) Human Security Act of 2007 (R.A. 9372)(i) Failure to deliver suspect to proper judicial authority(ii) Infidelity in the custody of detained persons(iii) False prosecution8. Crimes Against Persons (Articles 246-266); in addition:a) Anti-Violence against Women and their Children Act of 2004 (R.A. 9262)(i) Punishable actsb) Anti-Child Pornography Act of 2009 (R.A. 9775)(i) Definition of terms(ii) Unlawful or punishable actsc) Anti-Hazing Law (R.A. 8049)(i) Hazing(a) Definition(b) Allowed initiation rites(ii) Who are liable(iii) Punishable actsd) Special Protection of Children Against Child Abuse, Exploitation andDiscrimination Act (R.A. 7610, as amended)(i) Coverage(ii) Child prostitution, punishable acts(iii) Child trafficking, punishable actse) Juvenile Justice and Welfare Act of 2006 (R.A. 9344); also refer to Child andYouth Welfare Code (P.D. 603, as amended)(i) Punishable actsf) Human Security Act of 2007 (R.A. 9372)(i) Punishable acts of terrorism(ii) Who are liable9. Crimes Against Personal Liberty and Security (Articles 267-292); in addition:a) Anti-Wire Tapping Act (R.A. 4200)(i) Punishable acts(ii) Exceptionsb) Human Security Act of 2007 (R.A. 9372(i) Surveillance of suspects and interception and recording of communications(ii) Restriction on travel(iii) Examination of bank deposits and documents(a) Judicial Authorization(b) Application(iv) Unauthorized revelation of classified materialsc) Anti-Trafficking in Persons Act of 2003 (R.A. 9208)(i) Punishable acts10. Crimes Against Property (Articles 293-332); in addition:a) Anti-Fencing Law (P.D. 1612) and its implementing rules and regulations(i) Fencing

(a) Definition(b) Presumption of fencing(ii) Exception(a) With clearance or permit to sellb) Bouncing Checks Law (B.P. Blg. 22) plus Administrative Circular No. 12-2000Re: Penalty for Violation of B.P. 22 and Administrative Circular No. 13-2001 Re:Clarification of Admin Circular No. 12-2000(i) Punishable acts(ii) Evidence of knowledge of insufficient funds(iii) Preference of imposition of finec) Anti-Carnapping Act of 1972 (R.A. 6539)(i) Definition of terms(ii) Registration(iii) Who are liable(a) Duty of collector of customs(b) Duty of importers, distributors and sellers(c) Clearance and permit(iv) Punishable actsd) Human Security Act of 2007 (R.A. 9372)(i) Punishable acts of terrorisme) Anti-Arson Law (P.D.1613)(i) Punishable acts11. Crimes Against Chastity (Articles 333-334, 336-346); in addition:a) Anti-Photo and Video Voyeurism Act of 2009 (R.A. 9995)(i) Punishable actsb) Special Protection of Children Against Child Abuse, Exploitation andDiscrimination Act (R.A. 7610, as amended)(i) Child prostitution and other acts of abuse(a) Punishable acts(b) Compare prosecution for Acts of Lasciviousness under Art. 366, RPCand R.A. 7610, as amended(ii) Obscene publications and indecent shows(a) Punishable actsc) Anti-Trafficking in Persons Act of 2003 (R.A. 9208)(i) Punishable actsd) Anti-Violence Against Women and Their Children Act of 2004 (R.A. 9262)(i) Punishable actse) Anti-Sexual Harassment Act of 1995 (R.A. 7877)(i) Punishable acts12. Crimes Against Civil Status (Articles 347-352)13. Crimes Against Honor (Articles 353-364); in addition:a) Administrative Circular 08-2008 Re: Guidelines in the Observance of aRule of Preference in the Imposition of Penalties in Libel Cases(i) Preference of imposition of fine14. Criminal Negligence (Article 365)

II. Jurisprudence— Pertinent Supreme Court decisions promulgated up to January31, 2012.

III. Excluded TopicsA. All special penal laws and Supreme Court Decisions not pertinent to the above outlinedtopics are excluded.B. Penalties of specific crimes.

SYLLABUS FOR THE 2012 BAR EXAMINATIONSLABOR AND SOCIAL LEGISLATION

I. Fundamental Principles and PoliciesA. Constitutional provisions1. Article II, Secs. 9, 10, 11, 13, 14, 18, 20.2. Article III, Secs. 1, 4, 8.3. Art. XIII, Secs. 1, 2, 3, 14.B. Civil Code1. Article 1700C. Labor Code1. Article 32. Article 2113. Article 2124. Article 255

II. II. Recruitment and PlacementA. Recruitment of local and migrant workers1. Recruitment and placement; defined2. Illegal recruitment, Art. 38 (local), Sec. 6, Migrant Workers Act, R.A. 8042a) License vs. Authorityb) Essential elements of illegal recruitmentc) Simple illegal recruitmentd) Illegal recruitment in large scalee) Illegal recruitment as economic sabotagef) Illegal recruitment vs. Estafag) Liabilities(i) Local employment agency(ii) Foreign employer(a) Theory of imputed knowledgeh) Pre-termination of contract of migrant worker3. Direct hiringB. Regulation and enforcement1. Remittance of foreign exchange earnings2. Prohibited activities3. Regulatory and visitorial powers of the labor secretary4. Penalties for illegal recruitment

III. III. Labor StandardsA. Hours of work1. Coverage/exclusions2. Normal hours of worka) Exceptions(i) Health personnel(ii) Compressed work weekb) Work interruption due to brownoutsc) Meal breakd) Idle time, waiting time, commuting time, travel time, whether part ofhours of work or note) Overtime work(i) Undertime not offset by overtime(ii) Waiver of overtime pay3. Night work4. CBA provision vis-à-vis overtime workB. Wages1. “No work, no pay” principle2. Coverage/exclusions3. Facilities vs. Supplements4. Wages vs. Salaries5. Wage distortion6. CBA vis-à-vis wage orders – CBA creditability7. Non-diminution of benefits

8. Worker’s preference in case of bankruptcy9. Labor Code provisions for wage protection10. Allowable deductions without employee’s consent11. Attorney’s fees and union service fee in labor cases12. Criteria/factors for wage setting

C. Rest day1. Right to weekly rest day2. Preference of the employee3. When work on rest day authorizedD. Holidays1. Right to holiday paya) In case of absencesb) In case of temporary cessation of workc) Of teachers, piece workers, seafarers, seasonal workers, etc.2. Exclusions from coverageE. Leaves1. Service incentive leave paya) Right to service incentive leaveb) Exclusions from coveragec) Commutable nature of benefit2. Maternity leavea) Coverageb) Conditions to entitlementc) Availment3. Paternity leavea) Coverageb) Conditions to entitlementc) Availment4. Parental leavea) Coverageb) Conditions to entitlementc) Availment5. Leaves for victims of violence against womena) Coverageb) Conditions to entitlementc) AvailmentF. Service charges1. Coverage2. Exclusion3. Distribution4. IntegrationG. Thirteenth (13th) month pay and other bonuses1. Coverage2. Exclusion/exemptions from coverage3. Nature of 13th month pay4. Commissions vis-à-vis 13th month pay5. CBA vis-à-vis 13th month payH. Women workers1. Discrimination (Art. 135, Labor Code)2. Stipulation against marriage (Art. 136, Labor Code)3. Prohibited acts (Art. 137, Labor Code)4. Classification of certain women workers (Art. 138, Labor Code)5. Anti-Sexual Harassment Act (R.A. 7877)I. Minor workers (R.A. 7678, R.A. 9231)1. Regulation of working hours of a child2. Employment of the child in public entertainment3. Prohibition of employing minors in certain undertakings and in certainadvertisementsJ. Employment of househelpers1. Definition2. Benefits accorded househelpers3. Termination4. Reliefs for unjust terminationK. Employment of homeworkers1. Definition2. Rights and benefits accorded homeworkers3. Conditions for deduction from homewoker’s earningsL. Apprentices and learners1. Distinctions between learnership and apprenticeship

M. Handicapped workers (R.A. 7277)1. Definition of “handicapped workers”2. Rights of disabled workers3. Prohibitions on discrimination against disable persons4. Incentives for employersIV. Termination of EmploymentA. Employer-employee relationship1. Four-fold test2. Probationary employment3. Kinds of employmenta) Regular employment(i) Reasonable connection ruleb) Project employment(i) Indicators of project employmentc) Seasonal employmentd) Casual employmente) Fixed term employment(i) Requisites for validity4. Job contracting and labor-only contractinga) When is there “job contracting”?b) When is there “labor-only contracting”?c) Conditions that must concur in legitimate job contractingd) Effects of finding that there is labor-only contractingB. Termination of employment1. Substantive due processa) Just causes(i) Serious misconduct or willful disobedience(a) Requisites(ii) Gross and habitual neglect of duties(a) Requisites(iii) Fraud or willful breach of trust (loss of trust and confidence)(a) Requisites(iv) Abandonment of employment; elements that must concur(v) Termination of employment pursuant to a union securityclause(vi) Totality of infractions doctrineb) Authorized causes(i) Redundancy, retrenchment and closure(a) Procedural steps required(b) Requirements for valid retrenchment/redundancy(c) Criteria in selecting employees for dismissal(d) Standards to be followed(ii) Disease or illness(a) Requisites2. Procedural due processa) Procedure to be observed in termination casesb) Guiding principles in connection with the hearing requirements indismissal casesc) Agabon doctrine3. Reliefs for illegal dismissala) Reinstatement aspect(i) Immediately executory(a) Actual reinstatement(ii) Payroll reinstatementb) Separation pay in lieu of reinstatement(i) Strained relation rulec) Back wages(i) Components of the amount of back wagesd) Constructive dismissale) Preventive suspensionf) Quitclaimsg) Termination of employment by employeeC. Retirement Pay Law1. Coverage2. Exclusions from coverage3. Components of retirement pay4. Retirement pay under R.A. 7641 vis-à-vis retirement benefits under SSS andGSIS lawsV. Management PrerogativeA. DisciplineB. Transfer of employees

C. Productivity standardD. Grant of bonusE. Change of working hoursF. Marital discriminationG. Post-employment banH. Limitations in its exercise

IV. VI. Social LegislationA. SSS Law (R.A. 8282)1. Coveragea) Exclusions from coverageb) Benefitsc) BeneficiariesB. GSIS Law (R.A. 8291)1. Coverage2. Exclusions from coverage3. Benefits4. BeneficiariesC. Limited Portability Law (R.A. 7699)D. Employee’s compensation – coverage and when compensable

V. VII. Labor Relations LawA. Right to self-organization1. Who may unionize for purposes of collective bargaininga) Who cannot form, join or assist labor organizationsb) Executive Order No. 1802. Bargaining unita) Test to determine the constituency of an appropriate bargaining unitb) Voluntary recognition(i) Requirementsc) Certification election(i) In an unorganized establishment(ii) In an organized establishment(iii) Rules prohibiting the filing of petition for certification election(iv) Requirements for validity of certification election(v) Protests and other questions arising from conduct ofcertification electiond) Run-off election(i) Requirementse) Re-run electionf) Consent electiong) Affiliation and disaffiliation of the local union from the mother union(i) Substitutionary doctrineh) Union dues and special assessments(i) Requirements for validityi) Agency fees(i) Requisites for assessmentB. Right to collective bargaining1. Duty to bargain collectivelya) Kiok Loy ruling2. Mandatory provisions of CBAa) Grievance procedureb) Voluntary arbitrationc) No strike-no lockout claused) Labor management council3. Unfair Labor Practice in collective bargaininga) Bargaining in bad faithb) Refusal to bargainc) Individual bargainingd) Blue sky bargaininge) Surface bargaining4. Unfair Labor Practice (ULP)a) ULP of employersb) ULP of labor organizationsC. Right to peaceful concerted activities1. Forms of concerted activities2. Who may declare a strike or lockout?3. Requisites for a valid strike4. Requisites for a valid lockout

5. Requisites for lawful picketing

6. Assumption of jurisdiction by the Secretary of Labor or certification of the labor dispute to the NLRC for compulsory arbitration7. Nature of assumption order or certification order8. Effect of defiance of assumption or certification orders9. Illegal strikea) Liability of officers of the unionsb) Liability of ordinary workersc) Waiver of illegality of strike10. Injunctionsa) Requisites for labor injunctionsb) “Innocent bystander rule”

VI. VIII. Procedure and JurisdictionA. Labor arbiter1. Jurisdiction2. Effect of self-executing order of reinstatement on back wages3. Requirements to perfect appeal to NLRCB. National labor relations commission (NLRC)1. Jurisdictions2. Effect of NLRC reversal of labor arbiter’s order of reinstatement3. Requirements to perfect appeal to court of appealsC. Bureau of Labor Relations – med arbiters1. Jurisdiction (original and appellate)D. National Conciliation and Mediation Board1. Conciliation vs. Mediation2. Preventive mediationE. DOLE regional directors1. Small money claimsF. DOLE secretary1. Visitorial and enforcement powers2. Power to suspend effects of terminationG. Voluntary arbitrators1. Submission agreement2. Rule 43, Rules of CourtH. Court of Appeals1. Rule 65, Rules of CourtI. Supreme Court1. Rule 45, Rules of CourtJ. Prescription of actions1. Money claims2. Illegal dismissal3. Unfair labor practice4. Offenses penalized by the Labor Code and Implementing Rules andRegulations issued pursuant thereto

INCLUDE: Pertinent Supreme Court decisions promulgated up to January 31, 2012.