2025 Civil Law, Q1

A leased out his penthouse condominium unit to B. Unfortunately, A figured in an accident and perished, leaving his son, C, as his sole heir. Subsequently, C demanded that B vacate the premises by noon of the following day. B refused, showing C the duly executed lease agreement between her and A. B claimed that she has a right to remain in the unit since the term of the lease was yet to expire. C countered that he had nothing to do with the lease contract as it was executed between his father and B and therefore does not bind him. Is C correct? Reason(s).

Quick check

Under Article 1311 of the Civil Code, who among the following are bound by the rights and obligations arising from a contract?

What comprises the inheritance of a decedent under Article 776 of the Civil Code?

What is the general effect of a lessor's death on an existing contract of lease prior to its expiration?

Why was C bound by the contract of lease executed between his deceased father A and tenant B?

Which of the following exceptions prevents contractual obligations from binding an heir under Article 1311 of the Civil Code?

Learn more about these topics

1. Relativity of Contracts
Under Article 1311 of the Civil Code, contracts take effect between the parties, their assigns, and heirs. This principle of relativity dictates that rights and obligations arising from a contract are transmissible to the heirs upon the death of a contracting party. Unless a contract is purely personal by its nature, restricted by explicit stipulation, or rendered intransmissible by provision of law, an heir inherits both the benefits and burdens established by the decedent's agreements. Consequently, heirs cannot disavow contracts entered into by their predecessors in interest.

2. Transmission of Inheritance
Under Article 776 of the Civil Code, the inheritance includes all the property, rights, and obligations of a person which are not extinguished by his death. Successional rights are transmitted from the exact moment of the decedent's death. An heir steps directly into the legal shoes of the deceased, succeeding to all transmissible contractual rights and liabilities. Because an heir acquires the property subject to existing encumbrances and obligations, he must respect all valid legal commitments, such as outstanding lease contracts, that were lawfully created by the decedent during his lifetime.

3. Transmissibility of Lease
A contract of lease is essentially an agreement involving property rights and enjoyment, making it inherently transmissible to heirs upon the death of either party. Unlike contracts that rely on personal qualifications, a lease does not terminate upon the death of the lessor or lessee unless the contract explicitly provides for its termination. The lessor's heir inherits the property subject to the existing lease burden and remains bound to respect the tenant's right of peaceful possession until the full expiration of the stipulated lease term.

About these questions and answers
The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

They are not official answers, have no connection with the Supreme Court, the Office of the Bar Confidant, or any bar review institution, and are not endorsed by any of them. Official answer keys, where released, should be preferred over anything here.Nothing on this page is legal advice, and reading it creates no lawyer-client relationship. Do not rely on any suggested answer in an actual legal matter. Consult counsel on your own facts.Suggested answers reflect the law and jurisprudence the author considers applicable as of the date shown.

Where a question comes from an earlier examination, the suggested answer applies the law as it now stands, which may differ from the law in force when the question was given, and may therefore differ from what would have been the correct answer at that time. Where the difference is material, the answer notes it.The practice scoring feature measures wording overlap with the suggested answer. It is not a grade, carries no official weight, and says nothing about whether your reasoning is sound.Errors are possible. If you find one, please tell me and I will correct it.Last reviewed: October 2026