Precarium is a specie of commodatum where the bailor can demand the return of the thing at will. This is a contractual relationship. (Art. 1947) The original word for precarium is precarious…
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Category: Terms
Res Judicata
is a rule that a final judgment on the merits by a court of competent jurisdiction is conclusive of the rights of the parties or their privies in all subsequent suits on…
Rebus Sic Stantibus
The contract can only be valid if the conditions prevailing at the time of contracting continue to exist at the time of performance. If the conditions have changed that it becomes manifestly…
Semper Praesumitur Pro Matrimonio
means “the law always presume marriage”. Semper = “always”; Praesumitur = presume; pro matrimony = “for marriage” In Perido vs. Perido, the children of Lucio Perido and Marcelina are presumed to be…
“Yamashita Standard”
Also known as “Command Line Responsibility” or “Command Responsibility, is when the law of war imposes on an army commander a duty to take such appropriate measures as are within his power…
Business Judgment Rule
The will of the majority of the Board members control corporate affairs and contracts intra vires and the courts will not interfere unless such contracts are unconscionable and oppressive amounting to destruction…
Trust Fund Doctrine
Trust Fund Doctrine considers the subscribed capital as a trust fund for the payment of debts of the corporation to which the creditors may look for satisfaction. (NTC vs. CA) How can…
Dividends
These are surplus corporate profits (coming from unrestricted retained earnings) which are [SDD] set apart, declared, and ordered to be distributed to stockholders. Profits are not dividends. As long as a profit…
Treasury Shares
Treasury shares are those previously issued by the company and fully paid by subscribers but are subsequently reacquired by the issuing corporation through PDFRL (purchase, donation, forfeiture, redemption, or lawful means) Nature…
Bad Faith
It is factual and evidentiary. It does not mean bad judgment or negligence because it imports a dishonest purpose or some moral obliquity and conscious wrongdoing. It means breach of a known…
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