Obligations of the Vendee Sales 093015

7/17/2019 Obligations of the Vendee Sales 093015

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* OBLIGATIONS OF THE VENDEE(Art. 1582) The vendee must:(a) Accept delivery(b) Pay the price

- R!"# $% A&&"PTA%&" A%' PA"%T:(a) *+th must be per,+rmed at the time and place stipulated

(b) hen there is n+ stipulati+n as t+ time and place +, payment payment must be made at the time and place +, delivery.(c) Apply Article 152/ (in relati+n t+ Article 110 last pararaph) 3here payment and delivery are simultane+us

- apply Arts. 1251 and 1521 (Time and Place +, 'elivery)T4" at a reas+nable h+ur (6uesti+n +, ,act)P!A&"5. #tipulati+n +, the parties7 +r0. #ellers place +, business i, he has +ne7 +r9. #ellers residence7 +r8. 4n case +, sale +, de,inite +r speci,ic ++ds in the place 3here the thin is.

P$T"T4&A! ;"#T4$%#:

1. A and * entered int+ a c+ntract +, sale 3here it is stipulated that * the buyer is b+und t+ pay 15 days a,ter the per,ecti+n +, thec+ntract. ay * demand the delivery +, the thin ,r+m A even be,+re the arrival +, the day he is b+und t+ pay<es. As +bliati+n n+t bein dependent +n a c+nditi+n +r a peri+d is pure. is +bliati+n is thus demandable at +nce even at the time thec+ntract is per,ected (Art. 119)2. A and * entered int+ a c+ntract +, sale +, a parcel +, land. A delivered the parcel +, land t+ * up+n per,ecti+n. * +n the +ther hand isb+und t+ pay +n $ct+ber . A became incapacitated +n $ct+ber 8. $n $ct+ber * 3ent t+ A t+ pay. 4s payment +, * t+ A valid<

As a rule payment t+ the incapacitated is v+id. +3ever i, the incapacitated has =ept the thin delivered +r i, payment has been bene,icialt+ him the payment is valid (Article 12/1).>Article 1/29 implies that the incapacitated 3h+ v+luntarily pays the buyer d+es n+t have the riht t+ rec+ver the price ,r+m the seller 3h+spent it in ++d ,aith.?. (<) A s+ld sac=s +, c+rn t+ * ,+r P5@@=. They areed that A 3ill deliver +n 1 une 2@@ and * 3ill pay +n ?1 uly 2@@. A lives in 'ava+ 3hile * lives in anila. $n 1 une 2@@ A delivered the sac=s +, c+rn. * +n the +ther hand did n+t pay the price +n ?1 uly 2@@. A 3entt+ anila and spent P0= ,+r air,are and P5= ,+r h+tel acc+mm+dati+n in +rder t+ et the payment +, the purchase price ,r+m *. * tenderedP5@@= but A re,used t+ accept. A c+ntends that * sh+uld als+ pay P11= 3hich the ,+rmer spent ,+r air,are and h+tel acc+mm+dati+n. 4s Asc+ntenti+n c+rrect<

es. 4t is the duty +, the debt+r t+ c+rrect payment. Applyin Art. 1582 in relati+n t+ Art. 1521 * is b+und t+ pay at the place +, delivery inthe absence +, stipulati+n as t+ the place +, payment. The place +, delivery 3hen there is n+ stipulati+n as t+ 3here the same is t+ bemade is the sellers place +, business +r residence. ence * is b+und t+ + t+ 'ava+ t+ pay A.

- &$PA% *$BT-$T- i, inv+lves n+t c+nsiderable am+unt C mere c+ntinuance +, business- i, inv+lves c+nsiderable am+unt such that the c+mpany is b+uht +ut t+ st+p its +perati+ns C there is n+ assumpti+n +, +bliati+ns

(Art. 158?): D"%'$R 4# %$T *$%' T$ A&&"PT PART4A! '"!4D"R- relate Article 12??: There is n+ payment until the thin is c+mpletely delivered

- relate Article 12/8: $ne cann+t be c+mpelled t+ receive partial payment7 +ne has n+ riht t+ ma=e partial payment> #"PARAT" PR4&" E$R "A& 4%#TA!!"%T- *R"A& AEE"&T# T" $!" &$%TRA&T (4nFured party may sue ,+r breach +, entire c+ntract)- 3hen seller ma=es de,ective +r inc+mplete deliveries7 +r- buyer 3r+n,ully nelects +r re,uses t+ accept delivery7 +r- buyer ,ails t+ pay any installment- *R"A& 4# #"D"RA*!"- +nly claim ,+r c+mpensati+n ,+r particular breach may be all+3ed(Art. 158/): *"R# R4BT T$ "GA4%" B$$'#A&&"PTA%&" C assent t+ bec+me +3ner +, the speci,ic ++ds 3hen delivery +, them is +,,ered t+ the buyer"GA4%AT4$% C is a c+nditi+n precedent t+ trans,er +3nership> Art. 158/ re,ers t+ A&TA! '"!4D"R

> R!"#:(a) "Haminati+n be,+re delivery sh+uld be made by re6uest. Dend+r is n+t b+und t+ +,,er the thin ,+r eHaminati+n be,+re delivery 3ith+utthe re6uest +, the vendee.



(b) hen the thin is delivered the thin is n+t c+nsidered accepted i, the vendee has n+t eHamined it +r has n+ reas+nable +pp+rtunity t+eHamine itI(c) 4n case +, &$' (c+llect +n delivery) C buyer is n+t entitled t+ eHamine until payment is made "G&"PT 3hen there is an areement +rthat the usae +, trade permits the same

> 4n &$' ++ds are n+t t+ be delivered by the carrier t+ the buyer unless the latter pays.

(Art. 1585): $'"# $E A%4E"#T4%B A&&"PTA%&"1. "GPR"## A&&"PTA%&" C the buyer intimates t+ the seller that he accepts the thin2. 4P!4"' A&&"PTA%&" C may be either +, the ,+ll+3in:a. *uyer d+es an act inc+nsistent 3ith the sellers +3nership7 +rb. *uyers retenti+n +, ++ds 3ith+ut intimatin reFecti+n a,ter the lapse +, reas+nable time.

>%$T": 'elivery and Acceptance are separate acts.

Receipt and acceptance are n+t syn+nym+us(Art. 1580): A&&"PTA%&" 4# %$T A *AR T$ A&T4$% E$R 'AAB"#. +3ever n+tice must be iven t+ the seller 3ithin a reas+nabletime.(Art. 1589): "R" *"R# R"E#A! T$ A&&"PT 4# #T4E4"'- *uyer is n+t b+und t+ return the ++ds7 but he must n+ti,y seller (4t is the seller 3h+ is re6uired t+ rec+ver the ++ds ,r+m the buyer)- The ris= +, l+ss is still 3ith the seller- *uyer is n+t liable as '"P$#4TAR unless he v+luntarily c+nstitutes himsel, as such

;"#T4$% J 4%;4R: 4s the buyer b+und t+ ta=e care +, the ++ds< (3hether Art. 110? is applicable in this case)

(Art. 1588): R"E#A! $E T" *"R 4T$T #T &A#"- Title passes t+ the buyer the m+ment it is placed at his disp+sal

(Art. 158): 4%T"R"#T (,+r the peri+d bet3een delivery and payment):- &+ntemplates a situati+n 3here '"!4D"R A%' PA"%T AR" %$T #4!TA%"$#- Dendee is b+und t+ pay interest in any +, the ,+ll+3in instances: [IFV (Inday’s Funniest Videos)](a) Interest is stipulated

- may be +ral- interest 3hich must be in 3ritin re,ers +nly t+ l+an (Art. 150)(b) Fruits +r inc+me are received by vendee ,r+m the thin s+ld

-even i, a term has been ,iHed ,+r the payment +, price(c) Vendee is uilty +, 'e,ault (see Art. 110)

Knder Art. 110 the debt+r incurs in delay ,r+m the time +, Fudicial +r eHtra-Fudicial demand. +3ever demand is n+t necessary t+c+nstitute delay in the ,+ll+3in cases: [LTD]1. The a3 +r +bliati+n eHpressly s+ pr+vides72. Time is +, the essence7 +r?. Demand 3+uld be useless as 3hen the +bli+r has rendered it bey+nd his p+3er t+ per,+rm.L

(Art. 15@): R4BT $E D"%'"" T$ ##P"%' PA"%T- &+ntemplates a situati+n 3here the &$%TRA&T 4# %$T "T &$%#AT"'- B"%"RA! R!": Applicable in 2 cases:(a) here the vendee is disturbed in p+ssessi+n +r +3nership +, the thin b+uht7 +r(b) Dendee has reas+nable r+und t+ ,ear that his p+ssessi+n +r +3nership 3+uld be disturbed (by a vindicat+ry acti+n +r a ,+recl+sure +,a m+rtae)

> 4n b+th instances the vendee may retain +nly the price that has n+t been paid t+ the vend+r. e is n+t entitled t+ rec+ver 3hat hasalready been paid.- "G&"PT4$%# T$ ##P"%#4$% $E PA"%T (3here vendee has n+ riht t+ suspend payment): [SS!T"](a) S# vend+r ives security ,+r the return +, the price(b) S# stipulati+n that vendee must ma=e payment n+t3ithstandin such c+ntinency(c) !# $essati+n +, disturbance +r daner

(d) T# disturbance is a mere act +, trespass(e) "# vendee has %aid the price in ,ull



P$T"T4&A! ;"#T4$%#:1. A s+ld a parcel +, land t+ *. Therea,ter & ,iled a suit aainst A and * ,+r 6uietin +, title. 'urin pendency may * suspend payment<

es. * has reas+nable r+und t+ ,ear that his p+ssessi+n +r +3nership 3+uld be disturbed by a vindicat+ry acti+n.2. (<) #ame ,acts as M1 but & +nly claims ,+r a part +, the land. ay there be suspensi+n +, payment<

es * may still suspend payment ,+r the entire am+unt.

(Art. 151): R4BT $E D"%'$R T$ R"#&4%' #A!" $E 4$DA*!" PR$P"RT J A%T4&4PAT$R *R"A&- R";4#4T"#:(a) There is delivery +, imm+vable pr+perty(b) Dendee has n+t paid the price(c) Dend+r has reas+nable r+und t+ ,ear the:a. !$## +, PR$P"RT7 A%'b. !$## +, PR4&"

- hen there is n+ such reas+nable r+und Art. 111 shall be +bserved (3hen the vendee d+es n+t c+mply 3ith 3hat is incumbent up+nhim).

(Art. 152): "R" AT$AT4& R"#&4##4$% $E #A!" $E 4$DA*!" PR$P"RT 4# #T4P!AT"'Art. 152: 4n the sale +, imm+vable pr+perty even th+uh it may have been stipulated that up+n ,ailure t+ pay the price at the time areedup+n the rescissi+n +, the c+ntract shall +, r iht ta=e place the vendee may pay even a,ter the eHpirati+n +, the peri+d as l+n as n+demand ,+r rescissi+n +, the c+ntract has been made up+n him either Fudicially +r by a n+tarial act. A,ter the demand the c+urt may n+trant him a ne3 term.- Acc+rdin t+ Dillanueva and Pineda the phrase Neven th+uh‖means that this pr+visi+n is als+ applicable in a case 3here there is n+stipulati+n in the c+ntract as t+ aut+matic rescissi+n.

Atty. &asiO+ d+es n+t aree 3ith them (this time he arees 3ith 'e !e+n)- Dend+r is iven an +pti+n t+ rescind P$% '4&4A! $R %$TAR4A! '"A%'- +3ever 3hen there is n+ Fudicial +r n+tarial demand vendee may still pay. $,,er t+ pay is su,,icient t+ de,eat vend+rs prer+ative.- Dend+rs riht t+ rescind is n+t abs+lute.+ Art. 111 par. ? pr+vides that the c+urt may rant vendee a ne3 term+ +3ever i, there is already a demand the c+urt may n+ l+ner ,iH a term.- *reach must be substantial as t+ de,eat the very +bFect +, parties.- %$T APP!4&A*!" T$:+ #ale +n installment +, real estate (&aridad "states vs #anter+) C +verned by aceda !a3+ ere pr+mise t+ sell real estate J &+nditi+nal sale C there can be n+ rescissi+n in c+ntract t+ sell+ &ases under RA 0552 (RA 0552 rec+nies the vend+rs riht t+ cancel un6uali,iedly in case +, industrial l+ts c+mmercial buildins etc. 3ith a re,und +, certain percentaes +, payments made +n acc+unt +, cancelled c+ntract).

>4n +ther 3+rds the vendee in such cases may n+ l+ner pay the price a,ter the eHpirati+n +, the time areed up+n alth+uh n+ demandhas yet been made up+n him by suit +r n+tarial act.

(Art. 15?): "R" AT$AT4& R"#&4##4$% $E #A!" $E $DA*!" PR$P"RT 4# #T4P!AT"'- Dend+r can rescind the c+ntract as a matter +, riht i, the vendee d+es n+t:

(a) Accept7 +r(b) Pay unless credit peri+d ,+r payment is stipulated- Reas+n ,+r the rule: Pers+nal pr+perties are n+t capable +, maintainin stable price in the mar=et. ence any delay is preFudicial t+ thevend+r.- %+t applicable i, the thin has already been delivered (reas+n: the vend+r cann+t ta=e the la3 in his hands)

*&E'EDIES OF "A&TIES IN !ASE OF B&EA!H OF !ONT&A!T OF SALEA Sae o "esona "o%ety 1. #ale +, pers+nal pr+perty +n installments:Re6uisites (Art. 1/8/)(a) c+ntract +, sale(b) pers+nal pr+perty(c) payable in installments(d) in case +, 2nd and ?rd remedies there has been a ,ailure t+ pay t3+ +r m+re installments

Alternative remedies +, the vend+r: KArt. 1/8/ %&&L(a) eHact ,ul,illment +, the +bliati+n sh+uld the vendee ,ail t+ pay(b) cancel the sale sh+uld the vendees ,ailure t+ pay c+ver t3+ +r m+re installments



(c) ,+recl+se the chattel m+rtae +n the thin s+ld (i, +ne has been c+nstituted) sh+uld the vendees ,ailure t+ pay c+ver t3+ +r m+reinstallments.K4n this case he shall have n+ ,urther acti+n aainst the purchaser t+ rec+ver any unpaid balance +, the price. Any areement t+ thec+ntrary shall be v+id.L

#peci,ic Per,+rmance:

B"%"RA! R!": 3hen the seller has ch+sen speci,ic per,+rmance he can n+ l+ner see= ,+r rescissi+n n+r ,+recl+sure +, the chattelm+rtae c+nstituted +n the thin s+ld. "G&"PT4$% KArt. 111L: "ven i, the seller had ch+sen speci,ic per,+rmance i, the same hasbec+me imp+ssible the seller may still ch++se rescissi+nsee &hien v. #ps. #ant+s B.R. %+. 100/9 Au. ?1 2@@9Rescissi+n>hen rescissi+n is deemed ch+sen:hen the seller has clearly indicated t+ end the c+ntract such as 3hen C [N"A](a) he sends a n+tice +, rescissi+n +r(b) he ta=es %+ssessi+n +, the subFect matter +, the sale +r(c) he ,iles an a cti+n ,+r rescissi+n.

>E+r,eiture +, installment +r rentals paid: B"%"RA! R!" KArt. 1?85L: Rescissi+n creates the +bliati+n t+ return the thins 3hich 3ere the+bFect +, the c+ntract t+ether 3ith the ,ruits and the price 3ith interests. 4t can be carried +ut +nly 3hen he 3h+ demands rescissi+n canreturn 3hatever he may be +blied t+ rest+re. "G&"PT4$% KArt. 1/80L: A stipulati+n that the installments +r rents paid shall n+t be returnedt+ the vendee +r lessee shall be valid ins+,ar as the same may n+t be unc+nsci+nable under the circumstances.

> ",,ect +, rescissi+n:

%+nat+ v. 4A& hen the sellers assinee a ,inancin c+mpany is able t+ ta=e bac= p+ssessi+n +, the m+t+r vehicle 3ith ac+nditi+n that the vehicle c+uld be redeemed by the buyers 3ithin 15 days then such ta=in +, p+ssessi+n isclearly 3ith the intent t+ cancel the c+ntract.

'elta +t+r#ales &+rp. v.%iu Qim 'uan

A stipulati+n in a c+ntract that the installments paid shall n+t be returned t+ the vendee is valid ins+,ar as thesame may n+t be unc+nsci+nable under the circumstances. The &+urt t++= pains t+ sh+3 that the treatment +,the ,+r,eited installments as rental is m+re than Fusti,ied by the retenti+n and use +, the air-c+nditi+nin units bythe buyer ,+r 22 m+nths.

E+recl+sure +, chattel m+rtaehen remedy is deemed ch+sen: At the time +, actual sale +, the subFect pr+perty at public aucti+n pursuant t+ the ,+recl+surepr+ceedins c+mmenced.Rule:anila +t+r&+. vsEernande

The remedies under Article 1/8/ are atenati+e, n+t cumulative in that the eHercise +, +ne 3+uld bar the eHercise+, the +thers.

Dda de;uiamba+ vsanila +t+r4nc

$nly the ta=in bac= +, the pr+perty c+upled 3ith an une6uiv+cal desire +n its part t+ rescind its c+ntract +r ,+r thepurp+se +, appr+priatin the same 3+uld su,,ice t+ bar the seller ,+rm pr+ceedin 3ith speci,ic per,+rmance. 4n thiscase it 3as n+t the seller 3h+ demanded a return +, the subFect m+t+r vehicle but rather it 3as the buyer 3h+v+luntarily returned the same t+ p+stp+ne the satis,acti+n +, the en,+rcement +, the Fudment debt +btained by theseller +n the unpaid balance +, the purchase price.

%+rthern+t+rs vs

#apin+s+

4, pri+r t+ the actual sale +, the subFect pr+perty at public aucti+n the seller had received ,urther payments ,r+m thebuyer the seller is n+t +blied t+ re,und said payments a,ter ,+recl+sure t+ the buyer.

niversal+t+rs vs 'yian Tat

The ,ilin by the seller +, an acti+n ,+r the issuance +, a 3rit +, replevin and the actual rec+very +, p+ssessi+n +,the subFect pr+perty 3+uld n+t am+unt t+ ,+recl+sure even 3ith the attachment +, the m+rtae c+ntract itsel,since n+ actual ,+recl+sure pursuant t+ the relevant pr+visi+ns +, the Rules +, &+urt have been pursued. The mere,act that the seller has secured p+ssessi+n +, the truc= in 6uesti+n d+es n+t necessarily mean that it 3ill ,+recl+seits m+rtae. 4ndeed there is n+ sh+3in at all that the seller is causin the sale there+, at public aucti+n +r is evenpreparin t+ d+ s+. 4t is 6uite p+ssible that the seller 3anted merely t+ be sure that the truc= is n+t l+st +r renderedvalueless preparat+ry t+ havin it levied up+n under a 3rit +, attachment.

",,ect +, ,+recl+sure +, the chattel m+rtae: %+ ,urther acti+n aainst the purchaser t+ rec+ver any unpaid balance +, the price. Anyareement t+ the c+ntrary is v+id. KArt. 1/8/(?)L K%+te: unpaid balance here pertains t+ purchase priceL"G&"PT4$%:Eilipinas 4nvestment Einance &+rp v.

Ridad

hen a de,aultin buyer-m+rta+r re,uses t+ surrender the chattel t+ the seller t+ all+3 the latter t+ beable t+ pr+ceed 3ith ,+recl+sure then the seller even a,ter ,+recl+sure sh+uld be all+3ed t+ rec+ver

eHpenses and att+rneys ,ees incurred in tryin t+ +btain p+ssessi+n +, the chattel.*arrin ",,ect +, $ther #ecurities Biven ,+r Payment +, Price



&ru v. Eilipinas4nvestment Einance&+rp

- The N,urther acti+n‖bein barred under Art. 1/8/ is n+t limited t+ Fudicial pr+ceedins but sh+uld includeeHtraFudicial pr+ceedins by virtue +, 3hich the seller may be enabled t+ eHact rec+very +, the supp+sedunsatis,ied balance +, the purchase price ,r+m the purchaser +r his privy.- A seller is precluded ,r+m havin a rec+urse aainst the additi+nal security put up by a third party ins+,ar asthe burden 3+uld ultimately ,all +n the buyer himsel, is c+ncerned (e.. the uarant+r 3ill later +n pr+ceedaainst the buyer). T+ rule +ther3ise 3+uld be a circumventi+n +, Art. 1/8/.

Assin+r-Assinee7 Einancin Transacti+n

hen the seller assins his credit t+ an+ther pers+n the latter is li=e3ise b+und by the same la3. (*+rb+n 44 vs #ervice3ide #pecialists)SAssinment 3ith rec+urse basisEilipinas 4nvestment Einance &+rp. vs Ditu

Art. 1/8/ (?) d+es n+t bar +ne t+ 3h+m the vend+r has assined +n 3ith a rec+urse basis his creditaainst the vendee ,r+m rec+verin ,r+m the vend+r the assined credit in ,ull alth+uh the vend+r mayhave n+ riht +, rec+very aainst the vendee ,+r the de,iciency.

;"#T4$%J4%;4R: hat i, it is the buyer 3h+ assined +r alienated the pr+perty t+ an+ther pers+n (3hether the +ther pers+n is b+undby the same la3)<

Applicability +, Rect+ !a3: KArt. 1/85L: Art. 1/8/ applies als+ t+ c+ntracts purp+rtin t+ be leases +, pers+nal pr+perty 3ith +pti+n t+ buy(3hen the less+r has deprived the lessee +, the p+ssessi+n +r enF+yment +, the thin)

P&4 !easin and Einance 4nc. v. Bira,,e-G &reative 4main 4nc. B.R. %+. 1/2018 uly 12 2@@97*A Einance &+rp. v. &A 228 #&RA 5?@7 Dda. de +se v. *arruec+ 09 Phil. 11L

P$T"T4&A! ;"#T4$%#:1. A lease +, pers+nalty 3ith +pti+n t+ buy 3as entered int+ by A and *. E+r ,ailure t+ pay rentals the less+r (A) t++= p+ssessi+n +, thethin s+ld. ay A still c+llect the unpaid rentals<%+. !ess+r is est+pped ,r+m ,urther acti+n t+ rec+ver the unpaid rentals 3hich are deemed 3aived. The remedies are alternative. TheeHercise +, +ne 3+uld bar the eHercise +, the +ther.2. The vend+r elected t+ ,+recl+se the chattel m+rtae +n the car s+ld. e ,iled an acti+n ,+r replevin. *e,+re the vendee ,iled his ans3erhe paid t3+ installments am+untin t+ P125@. ay the vend+r retain the am+unt paid t+ him<es. The said am+unt c+uld be retained by the vend+r since it 3as paid be,+re the actual ,+recl+sure +, the chattel m+rtae. #ee %+rthern+t+rs 4nc vs #apin+s+.?. A and * entered int+ a c+ntract +, sale 3here A b+und himsel, t+ deliver up+n per,ecti+n a particular car. * +n the +ther hand is b+undt+ pay hal, +, the price at the time +, per,ecti+n and the +ther hal, 15 days therea,ter. There 3as n+ payment made by *.(a) 4s Art. 1/8/ applicable<%+. This is a sale +n straiht term. #ee !evy erman+s 4nc. v. Bervaci+.(b) ay A ,+recl+se the chattel m+rtae i, +ne has been c+nstituted<es under the &hattel +rtae !a3.(c) ay A cancel the c+ntract<es under Art. 111.(d) ay A rec+ver the balance a,ter ,+recl+sin the chattel m+rtae<es. There is n+ barrin e,,ect because Art. 1/8/ is n+t applicable.

/. A and * entered int+ a c+ntract +, sale 3here A b+und himsel, t+ deliver up+n per,ecti+n a particular car. * +n the +ther hand b+und t+pay P1@@= +n ten e6ual m+nthly installments. * ,ailed t+ pay the /th 5th and 0th installments (+n /th 5th and 0th m+nths). $n the 9thm+nth * 3ent t+ A and paid P1@=. A accepted the payment and issued a receipt. ay A avail +, the remedies stated in Art. 1/8/<%+. The receipt +, a later installment +, a debt 3ith+ut reservati+n as t+ pri+r installments shall raise the presumpti+n that such installments

have been paid. (Art. 1190 par. 2)5. A and * entered int+ a c+ntract +, sale 3here A b+und himsel, t+ deliver up+n per,ecti+n a particular car. * +n the +ther hand b+undhimsel, t+ pay P1@@= +n ten e6ual m+nthly installments. * ,ailed t+ pay the /th 5th and 0th installments (+n /th 5th and 0th m+nths). ayA rescind the c+ntract<%+. There is n+ demand. 4n +rder ,+r Art. 1/8/ t+ apply the vendee must be in de,ault. Applyin Art. 110 vendee is n+t in de,ault 3henthere is n+ Fudicial +r eHtra-Fudicial demand.0. A and * entered int+ a c+ntract +, sale 3here A b+und himsel, t+ deliver up+n per,ecti+n a particular car. * +n the +ther hand b+undhimsel, t+ pay P1@@= +n ten e6ual m+nthly installments. * ,ailed t+ pay 1 installment. ay A rescind the c+ntract<%+. The n+n-payment must pertain t+ t3+ +r m+re installments.9. K(<) "#&A!AT4$% &!A#"L A and * entered int+ a c+ntract +, sale 3here A b+und himsel, t+ deliver up+n per,ecti+n a particular car. *+n the +ther hand b+und himsel, t+ pay P1@@= +n ten e6ual m+nthly installments. There is a stipulati+n in the c+ntract that ,ailure t+ pay+ne +, the installments shall aut+matically ma=e all +, the installments due and demandable. * ,ailed t+ pay 1 installment. Assumin thatthere is a demand t+ pay +n the part +, A as t+ the unpaid installment may A rescind the c+ntract<

8. K(<) EA&T# %&!"ARL A and * entered int+ a c+ntract +, sale 3here A b+und himsel, t+ deliver up+n per,ecti+n a particular car. * +nthe +ther hand b+und t+ pay P1@@= +n ten e6ual m+nthly installments. A chattel m+rtae 3as c+nstituted t+ secure *s payment +, theprice. ean3hile a real estate m+rtae is als+ c+nstituted +n the pr+perty in ,av+r +, &. * ,ailed t+ pay the /th 5th and 0th installments



(+n /th 5th and 0th m+nths). 4, A 3+uld ch++se ,+recl+sure +, the chattel m+rtae may he pr+ceed aainst & as t+ the payment +, thebalance<. A and * entered int+ a c+ntract +, sale 3here A b+und himsel, t+ deliver up+n per,ecti+n a particular car. * +n the +ther hand b+undhimsel, t+ pay P1@@= +n ten e6ual m+nthly installments. & uaranteed *s payment +, the price. * ,ailed t+ pay the /th 5th and 0thinstallments (+n /th 5th and 0th m+nths). ay A pr+ceed aainst & the uarant+r ,+r the payment +, the unpaid balance<%+. &hec= Ridad case. A seller is precluded ,r+m havin a rec+urse aainst the additi+nal security put up by a third party ins+,ar as theburden 3+uld ultimately ,all +n the buyer himsel, is c+ncerned (e.. the uarant+r 3ill later +n pr+ceed aainst the buyer). T+ rule +ther3ise

3+uld be a circumventi+n +, Art. 1/8/ (&ru v. Eilipinas 4nvestment Einance &+rp). Eurtherm+re a uarant+r is +nly subsidiarily liableunli=e a surety 3h+ is primarily and s+lidarily liable 3ith the principal.1@. #ame ,acts as M +nly that A did n+t ch++se ,+recl+sure. & the uarant+r paid the price +, the car in behal, +, *. Rule the case.There is here a leal subr+ati+n 3here even 3ith+ut the =n+3lede +, * the debt+r & a pers+n interested in the ,ul,illment +, the+bliati+n pays (Art. 1?@2)11. A and * entered int+ a c+ntract +, sale 3here A b+und himsel, t+ deliver up+n per,ecti+n a particular car. * +n the +ther hand b+undhimsel, t+ pay P1@@= +n ten e6ual m+nthly installments. * paid the 1st installment but be,+re the 2nd installment 3as due * becameins+lvent. ay A avail +, the remedies stated in Art. 1/8/ even 3ith+ut a demand<es. * l+st his riht t+ a peri+d he havin bec+me ins+lvent 3h+ ave n+ uaranty +r security ,+r the payment +, the price (Art. 118).

B Sae o I--o+a.e "o%ety (1) Remedies +, Dend+rJ#eller: 1. Anticipat+ry *reach:(Art. 151): R4BT $E D"%'$R T$ R"#&4%' #A!" $E 4$DA*!" PR$P"RT J A%T4&4PAT$R *R"A&- R";4#4T"#:(a) There is delivery +, imm+vable pr+perty(b) Dendee has n+t paid the price(c) Dend+r has reas+nable r+und t+ ,ear the:a. !$## +, PR$P"RT7 A%'b. !$## +, PR4&"hen there is n+ such reas+nable r+und Art. 111 shall be +bserved (3hen the vendee d+es n+t c+mply 3ith 3hat is incumbent up+nhim).

2. AT$AT4& R"#&4##4$%: K152 %&&7 !a,+rtea vs. achuca ??? #&RA 0/?L(Art. 152): "R" AT$AT4& R"#&4##4$% $E #A!" $E 4$DA*!" PR$P"RT 4# #T4P!AT"'- Acc+rdin t+ Dillanueva and Pineda the phrase Neven th+uh‖means that this pr+visi+n is als+ applicable in a case 3here there is n+stipulati+n in the c+ntract as t+ aut+matic rescissi+n.

Atty. &asiO+ d+es n+t aree 3ith them (this time he arees 3ith 'e !e+n)- Dend+r is iven an +pti+n t+ rescind P$% '4&4A! $R %$TAR4A! '"A%'- +3ever 3hen there is n+ Fudicial +r n+tarial demand vendee may still pay. $,,er t+ pay is su,,icient t+ de,eat vend+rs prer+ative.- Dend+rs riht t+ rescind is n+t abs+lute.+ Art. 111 par. ? pr+vides that the c+urt may rant vendee a ne3 term+ +3ever i, there is already a demand the c+urt may n+ l+ner ,iH a term.- *reach must be substantial as 3+uld de,eat the very +bFect +, parties.- %$T APP!4&A*!" T$:+ #ale +n installment +, real estate (&aridad "states vs #anter+)+ ere pr+mise t+ sell real estate J &+nditi+nal sale+ &ases under RA 0552 (RA 0552 rec+nies the vend+rs riht t+ cancel un6uali,iedly in case +, industrial l+ts c+mmercial buildins etc. 3ith a re,und +, certain percentaes +, payments made +n acc+unt +, cancelled c+ntract.

>4n +ther 3+rds the vendee in such cases may n+ l+ner pay the price a,ter the eHpirati+n +, the time areed up+n alth+uh n+ demand

has yet been made up+n him by suit +r n+tarial act.>Article 152 n+t applicable t+ &+ntract t+ #ell:KPanilinan vs. &A 29 #&RA 5@ (19)7 Al,+ns+ vs. &A 180 #&RA /@@ (1@)7Dalara+ vs. &A ?@/ #&RA 155 (1)7Pe+ples 4ndustrial and &+mmercial &+rp. vs. &A 281 #&RA 2@0 (19)L.

(2) Remedies +, *uyer 1. Riht t+ #uspend Payment:(Art. 15@): R4BT $E D"%'"" T$ ##P"%' PA"%T- &+ntemplates a situati+n 3here the &$%TRA&T 4# %$T "T &$%#AT"'- B"%"RA! R!": Applicable in 2 cases:(c) here the vendee is disturbed in p+ssessi+n +r +3nership +, the thin b+uht7 +r(d) Dendee has reas+nable ,ear r+und t+ ,ear that his p+ssessi+n +r +3nership 3+uld be disturbed (by a vindicat+ry acti+n +r a,+recl+sure m+rtae)

> 4n b+th instances the vendee may retain +nly the price that has n+t been paid t+ the vend+r. e is n+t entitled t+ rec+ver 3hat hasalready been paid.



- "G&"PT4$%# T$ ##P"%#4$% $E PA"%T (3here vendee has n+ riht t+ suspend payment): [SS!T"](,) S# vend+r ives security ,+r the return +, the price() S# stipulati+n that vendee must ma=e payment n+t3ithstandin such c+ntinency(h) !# $essati+n +, disturbance +r daner(i) T# disturbance is a mere act +, trespass(F) "# vendee has %aid the price in ,ull

- hen the disturbance is caused by n+n-apparent servitude the remedy is rescissi+n n+t suspensi+n +, payment.

>Rule applicable in cases n+t inv+lvin subdivisi+n +r c+nd+minium pr+Fects>Rule applicable in cases inv+lvin sale +, subdivisi+n l+ts +r c+nd+minium units

Br+und ,+r suspensi+n +, payment:%+ installment payments made by the buyer in a subdivisi+n +r c+nd+minium pr+Fect ,+r the l+t +r unit he c+ntracts t+ buy shall be ,+r,eitedin ,av+r +, the +3ner +r devel+per 3hen the buyer a,ter due n+tice t+ the +3ner +r devel+per desists ,r+m ,urther payment due t+ the,ailure +, the +3ner +r devel+per t+ the devel+p the subdivisi+n +r c+nd+minium pr+Fect acc+rdin t+ the appr+ved plans and 3ithin thetime limit ,+r c+mplyin 3ith the same. K#ec. 2? P' 59L

K1.2.2L Alternative remedies +, the buyer: K#ec. 2? P' 59L

Reluci+ v. *rillante-Bar,in 189 #&RA /@57&asa Eilipina Realty &+rp. v. $,,ice +, the Pres. 2/1 #&RA 105L.

2. Riht t+ Brace Peri+d:*ric=t+3n 'evel+pment&+rp. v. Am+r Tierra'evel+pment &+rp.

hen a race peri+d is pr+vided ,+r in the c+ntract +, sale it sh+uld be c+nstrued as a riht n+t an+bliati+n +, the debt+r and 3hen unc+nditi+nally c+n,erred the race peri+d is e,,ective 3ith+ut,urther need +, demand either callin ,+r the payment +, the +bliati+n +r ,+r h+n+rin the riht.

! T/e 'a$eda La0 (&A 1223)"u%ose o a0 # Pr+tect buyers in installments aainst +ppressive c+nditi+ns1. Applicability:Transacti+ns &+vered:Transacti+n +r c+ntracts inv+lvin the sale +, ,inancin +, real estate +n installment payments includin residential c+nd+minium

apartments.- !o+es:1. c+ntract +, sale2. c+ntract t+ sell?. ,inancin transacti+ns

E4$uded#1. industrial2. c+mmercial?. sale t+ tenants under ararian la3s

K#ec. ? RA 0552L.Applicability:

K#ec. 2 RA 0552L.Applies even t+ c+ntract t+ sell:KDillanueva #ales /?27 Rill+ v. &A 29/ #&RA /017 !ean+ v. &A ?0 #&RA 09/L.

2. Rihts Branted t+ *uyer nder aceda !a3:

4, the buyer has paid at least t3+ years +, installments:(a) The buyer must pay 3ith+ut additi+nal interest the unpaid installments due 3ithin the t+tal race peri+d earned by him. There shall be1 m+nth race peri+d ,+r every 1 year +, installment payments made. K%$T": This is t+ be eHercised +nly +nce in every 5 years +r the li,e+, the c+ntract and its eHtensi+ns.(b) Actual cancellati+n can +nly ta=e place a,ter ?@ days ,r+m receipt by the buyer +, the n+tice +, cancellati+n +r demand ,+r rescissi+n bya n+tarial act and up+n ,ull payment +, the cash surrender value t+ buyer. K%$T": The seller shall re,und t+ the buyer the cash surrendervalue +, the payments +n the pr+perty e6uivalent t+ 5@ +, the t+tal payments made A,ter 5 years +, the installments there shall be an

additi+nal 5 every year but n+t t+ eHceed @ +, the t+tal payments made.(c) The buyer shall have the r iht t+ sell his rihts +r assin the same t+ an+ther pers+n +r t+ reinstate the c+ntract by updatin the acc+untdurin the race peri+d and be,+re actual cancellati+n +, the c+ntract.



(d) The buyer shall have the riht t+ pay in advance any installment +r the ,ull unpaid balance +, the purchase price any time 3ith+utinterest and t+ have such ,ull payment +, the purchase price ann+tated in the certi,icate +, title c+verin the pr+perty.

4, the buyer has paid less than t3+ years installments:(a) the seller shall ive the buyer a race peri+d +, n+t less than 0@ days ,r+m the date the installment became due. 4, the buyer ,ails t+ paythe installments due at the eHpirati+n +, the race peri+d the seller may cancel the c+ntract a,ter ?@ days ,r+m receipt by the buyer +, then+tice +, cancellati+n +r the demand ,+r rescissi+n +, c+ntract by n+tarial act.

(b) c and d ab+ve K%$T": d+3npayments dep+sits +r +pti+ns +n the c+ntract shall be included in the c+mputati+n +, the t+tal number +,installment payments made.L?. Re6uisites ,+r valid cancellati+n +, c+ntract c+vered by aceda !a3: Re6uisites:Actual cancellati+n can +nly ta=e place a,ter ?@ days ,r+m receipt by the buyer +, the n+tice +, cancellati+n +r demand ,+r rescissi+n by an+tarial act and up+n ,ull payment +, the cash surrender value t+ buyer. K%$T": The seller shall re,und t+ the buyer the cash surrendervalue +, the payments +n the pr+perty e6uivalent t+ 5@ +, the t+tal payments made A,ter 5 years +, the installments there shall be anadditi+nal 5 every year but n+t t+ eHceed @ +, the t+tal payments made.K#ec. ? RA 05527 #is=a 'evel+pment &+rp. vs. $,,ice +, the President +, the Philippines 2?1 #&RA 09/ and arina Pr+perties &+rp. vs.&A 2/ #&RA 292 (18)L",,ect +, ,ailure t+ c+mply:KActive Realty 'evel+pment &+rp. vs. 'ar+ya ?82 #&RA 1527 $lympia +usin v. Panasiatic Travel &+rp. B.R. %+. 1/@/08 an. 102@@?7 !ayu vs. &+urt +, Appeals ?0 #&RA ?0L

",,ect +, c+ntrary stipulati+nK#ec. 9 RA 0552L.

P$T"T4&A! ;"#T4$%#:1. (<) A and * entered int+ a c+ntract +, sale 3hereby A b+und himsel, t+ deliver a parcel +, land thr+uh a public d+cument +n 1 uly 2@1@and * b+und himsel, t+ pay +n ?1 'ecember 2@1@. $n ?1 uly 2@1@ h+3ever * became ins+lvent. &an A sue ,+r rescissi+n<

es. * l+ses his riht t+ a peri+d because +, his ins+lvency pursuant t+ Article 118.2. (<) A and * entered int+ a c+ntract +, sale 3hereby A b+und himsel, t+ deliver a parcel +, land thr+uh a public d+cument +n 1 uly 2@1@and * b+und himsel, t+ pay +n ?1 'ecember 2@1@. $n ?1 uly 2@1@ h+3ever * absc+nded. &an A sue ,+r rescissi+n<

es. * l+ses his riht t+ a peri+d pursuant t+ Article 118?. A and * entered int+ a c+ntract +, sale 3hereby A b+und himsel, t+ deliver a parcel +, land thr+uh a public d+cument +n 1 uly 2@1@and * b+und himsel, t+ pay +n ?1 'ecember 2@1@. * did n+t pay A +n ?1 'ecember 2@1@. hat isJare the remedyJies +, A<

A may ch++se bet3een ,ul,illment and rescissi+n +, the +bliati+n 3ith payment +, damaes in either case +n the r+und that * d+es n+tc+mply 3ith 3hat is incumbent up+n him (Article 111). #h+uld there be a reas+nable r+und t+ ,ear the l+ss +, pr+perty s+ld and its priceA may immediately sue ,+r rescissi+n +, the sale (Article 151)/. (<) (#+riaJ#uria<) A and * entered int+ a c+ntract +, sale 3hereby A b+und himsel, t+ deliver a parcel +, land thr+uh a public d+cument+n 1 uly 2@1@ and * b+und himsel, t+ pay +n ?1 'ecember 2@1@. A real estate m+rtae 3as c+nstituted +n the pr+perty havin A as them+rtaee. * did n+t pay A +n ?1 'ecember 2@1@. ay A rescind the sale<

%+. p+n the c+nstituti+n +, Real estate m+rtae the c+ntract has been chaned int+ +ne +, payment +, a l+an.

D Sae o Goods &e-edies o 5n%aid See#KArt. 1520L C %+t3ithstandin that the +3nership +, the ++ds may have passed t+ the buyer:(a) P+ssess+ry lien

(b) #t+ppae in transitu(c) Riht +, resale (can +nly be eHercised 3hen the t3+ pri+r remedies have been eHercised)(d) Rescissi+n (can +nly be eHercised 3hen the t3+ pri+r remedies have been eHercised)

h+ is c+nsidered an unpaid seller<KArt. 1525L(a) 3hen the 3h+le +, the price has n+t been paid +r tendered t+ the seller7 +r(b) 3hen a bill +, eHchane +r +ther ne+tiable instrument has been received (as c+nditi+nal payment) and the c+nditi+n +n 3hich theinstrument 3as received 3as br+=en by reas+n +, the dish+n+r +, the instrument ins+lvency +, buyer +r +ther3ise.

> !ien +n ++ds +r riht +, retenti+n:hen riht +, lien eHists: KArt.1529L [6EI](a) ++ds have been s+ld 0ith+ut any stipulati+n as t+ credit

(b) ++ds have been s+ld +n credit but the term +, credit has eHpired(c) buyer bec+mes ins+lvent (as he had already l+st his riht t+ a peri+d pursuant t+ Art. 118)



(a) he delivers t+ a $arrier +r +ther bailee

-,+r the purp+se +, transmissi+n t+ the buyer- 3ith+ut reservin the +3nership in the ++ds +r the riht +, p+ssessi+n there+,(b) buyer +r his aent a3,ully +btains p+ssessi+n +, the ++ds(c) 0aiver

Part delivery +, ++ds had been made KArt. 1528LC lien +n the remainder",,ect +, sale +, ++ds by buyer: KArt.15?5L#ellers riht +, lien +r st+ppae in transitu is n+t a,,ected."G&"PT4$%:(a) #eller assented theret+

hen a ne+tiable d+cument +, title has been issued ,+r ++ds (reiterati+n +, Art. 15?2 and in c+ns+nance 3ith Art. 1518)

> #t+ppae 4n Transitu:hen can it be inv+=ed: KArts. 1520 15?@ and 15?2L- seller has parted 3ith the p+ssessi+n +, the ++ds- R";4#4T"#:(a) unpaid seller(b) ins+lvent buyer(c) ++ds are in transit(d) The eHercise +, st+ppae in transitu is either by:(i) +btainin actual p+ssessi+n +, the ++ds(ii) ivin n+tice +, his claim t+ the carrier +r +ther bailee in 3h+se p+ssessi+n the ++ds are.- (15?2) %+tice may be iven either t+ the pers+n in actual p+ssessi+n +, the ++ds +r t+ his principal.- hen n+tice is iven t+ the carrier +r +ther bailee in p+ssessi+n +, the ++ds he must redeliver the ++ds acc+rdin t+ the directi+ns +,the seller K%$T": "Hpenses must be b+rne by the sellerL

"G&"PT4$%: a ne+tiable d+cument +, title representin the ++ds has been issued (in 3hich case the carrier +r bailee is n+t +blied t+redeliver the ++ds unless the seller surrendered the d+cument ,+r cancellati+n)

hen are the ++ds c+nsidered Nin transit‖(Art. 15?1)1. A,ter delivery t+ a carrier +r +ther bailee and be,+re the buyer +r his aent ta=es delivery +, them7 and2. B++ds are reFected by the buyer and the carrier +r +ther bailee c+ntinues t+ p+ssess them (even i, the seller re,used t+ receive thembac=)

hen are the ++ds c+nsidered n+ l+ner in transit (Art. 15?1)1. A,ter delivery t+ buyer +r his aent2. *uyer +r his aent +btains delivery +, the ++ds (be,+re their arrival at the app+inted destinati+n)?. A,ter the arrival at the app+inted destinati+n the carrier +r bailee ac=n+3lede t+ the buyer +r his aent that he is h+ldin the ++ds inhis behal, and c+ntinues in p+ssessi+n +, them as bailee ,+r buyer +r his aent/. &arrier +r bailee 3r+n,ully re,uses t+ deliver the ++ds t+ the buyer +r his aent in that behal,

",,ect +, sale +, ++ds by buyer: KArt.15?5L#ellers riht +, lien +r st+ppae in transitu is n+t a,,ected.

"G&"PT4$%:(b) #eller assented theret+(c) hen a ne+tiable d+cument +, title has been issued ,+r ++ds (reiterati+n +, Art. 15?2 and in c+ns+nance 3ith Art. 1518)

> Resale +, the B++dsR";4#4T"#: KArt. 15??L (1) ,irst t3+ remedies have been eHercised- unpaid seller has riht +, lien +r has st+pped ++ds in transitu(2) under any +, the ,+ll+3in c+nditi+ns:(a) ++ds are perishable(b) seller eHpressly reserves the riht +, resale in case buyer de,aulted(c) buyer has been in de,ault in payment ,+r an unreas+nable time

#eller is n+t liable t+ +riinal buyer ,+r pr+,it made by virtue +, resale

#eller may rec+ver ,r+m buyer damaes ,+r l+ss due t+ breach +, c+ntract +, sale



> Rescissi+n +, sale:KAL #pecial riht t+ rescind KArt.15?/L- seller has parted 3ith p+ssessi+n +, the ++ds- seller may rec+ver ,r+m the buyer damaes ,+r any l+ss due t+ breach +, c+ntract- there must be %$T4&" +r s+me +ther $D"RT A&T +, intenti+n t+ rescind K$vert act need n+t be c+mmunicated *T the ivin +, n+ticeis relevant in case +, de,ault ,+r an unreas+nable time.

R";4#4T"#:(1) ,irst t3+ remedies have been eHercised- unpaid seller has riht +, lien +r has st+pped ++ds in transitu(2) under any +, the ,+ll+3in c+nditi+ns:(a) seller eHpressly reserves the riht +, resale in case buyer de,aulted(b) buyer has been in de,ault in payment ,+r an unreas+nable time

K*L Technical Rescissi+n KArt. 159L- There is n+ delivery +, ++ds yet- seller may t+tally rescind by ivin n+tice +, his electi+n t+ d+ s+ t+ the buyer(1) *uyer has repudiated the c+ntract +, sale7(2) *uyer has mani,ested his inability t+ per,+rm +bliati+ns7 +r(?) *uyer c+mmitted a breach

P$T"T4&A! ;"#T4$%#:1. A entered int+ a c+ntract +, sale 3ith * 3hereby * b+und himsel, t+ pay P5@@= ,+r the 1@@ sac= +, c+rn 3hich is t+ be delivered by A. Aave * a bill +, ladin deliverable t+ * +r +rder. #ubse6uently * became ins+lvent. ay A eHercise t+ riht +, st+ppae in transitu<es.2. A and * entered int+ a c+ntract +, sale +, 1@@ sac=s +, c+rn. A is b+und t+ send the ++ds t+ * thr+uh his ship 3hich is bein +peratedby &. Assumin that A became an unpaid seller may he eHercise the riht +, st+ppae in transitu 3hile the ++ds are in the p+ssessi+n +,&<%+. A is still in the p+ssessi+n +, the ++ds. &s p+ssessi+n is merely that +, a h+lder as he 3as actin as As empl+yee. *ecause A hasn+t yet parted 3ith the p+ssessi+n +, the ++ds his remedy is t+ eHercise his lien +n the ++ds.

A$tions in $ase o .ea$/ o $onta$t o sae o 7oodsKAL R""'4"# $E #"!!"R1. Acti+n ,+r the price J #peci,ic per,+rmance (Art. 155)(a) 3hen the +3nership +, the ++ds has passed t+ the buyer and he 3r+n,ully nelects +r re,uses t+ pay ,+r the ++ds acc+rdin t+ theterms +, the c+ntract(b) 3hen price is payable +n certain day irrespective +, delivery +r trans,er +, title and the buyer 3r+n,ully nelects +r re,uses t+ payK*T: it is a de,ense t+ such acti+n that seller has mani,ested an inability +r lac= +, interest t+ per,+rm his +bliati+n be,+re FudmentL(c) i, ++ds cann+t readily be res+ld ,+r a reas+nable price alth+uh trans,er +, +3nership has n+t passed C seller may +,,er t+ deliver the++ds t+ the buyer7 i, buyer re,uses t+ receive seller may n+ti,y the buyer that he h+lds the ++ds as bailee ,+r the buyer. Therea,ter theseller may treat the ++ds as buyers and may maintain an acti+n ,+r the price.

2. Acti+n ,+r 'amaes (Art. 150)- hen buyer 3r+n,ully nelects +r re,uses t+ A&&"PT and PA ,+r the ++ds- "A#R" $E 'AAB"# estimated l+ss directly and naturally resultin in the +rdinary c+urse +, events ,r+m the buyers breach- "A#R" $E 'AAB"# ("% T"R" 4# ADA4!A*!" ARQ"T) di,,erence bet3een the c+ntract price and the mar=et +r current

price at the time the ++ds +uht t+ have been accepted +r at the time +, re,usal t+ accept 3hen there is n+ time ,iHed

?. Rescissi+n (Art. 159)

- There is n+ delivery +, ++ds yet- seller may t+tally rescind by ivin n+tice +, his electi+n t+ d+ s+ t+ the buyer(1) *uyer has repudiated the c+ntract +, sale7(2) *uyer has mani,ested his inability t+ per,+rm +bliati+ns7 +r(?) *uyer c+mmitted a breach

K*L R""'4"# $E *"R1. #peci,ic per,+rmance 3ith+ut ivin the seller the +pti+n +, retainin the ++ds +n payment +, damaes. Kudment may beunc+nditi+nal +r up+n such terms and c+nditi+ns as t+ damaes payment +, the price and +ther3ise as the c+urt may deem FustL (Art.

158)2. 4n case +, sellers breach +, 3arranty (Art. 15)(a) Rec+upment C accept the ++ds and set up the sellers breach t+ reduce +r eHtinuish the price



(c) Re,use t+ accept and maintain an acti+n ,+r damaes ,+r breach +, 3arranty(d) Rescissi+n C rescind the c+ntract7 re,use t+ receive the ++ds7 +r i, ++ds have already been received return them and rec+ver 3hat 3as paid +r any part +, it c+ncurrently 3ith return +r immediately a,ter it.

- These remedies are alternative 3ith+ut preFudice t+ pararaph 2 +, Art. 111 (that a party may still see= rescissi+n a,ter ch++sin speci,icper,+rmance i, the latter is imp+ssible)- *uyer cann+t rescind i, he =ne3 +, the breach and accepted the ++ds 3ith+ut pr+test +r ,ails 3ithin reas+nable time t+ n+ti,y the seller

+, his electi+n t+ rescind +r ,ails t+ return +r +,,er t+ return the ++ds in substantially as ++d c+nditi+n as it 3as- 4, seller re,uses t+ accept an +,,er t+ return the ++ds and the buyer elected rescissi+n buyer shall be deemed t+ h+ld the ++ds asbailee ,+r the seller subFect t+ lien t+ secure payment +, any p+rti+n +, the price 3hich has been paid.- !$## (in case +, breach +, 3arranty +, 6uality) di,,erence bet3een value +, the ++ds at the time +, delivery and value they 3+uld havehad i, they had ans3ered t+ the 3arranty

"o+isions on &es$ission8898 (udicial Rescissi+n based +n substantial breach) C at the instance +, arieved party8:;8 (rescissi+n based +n lesi+n) - at the instance +, arieved party8298 (,+r Anticipat+ry breach - imm+vable) C at the instance +, vend+r8293 (Aut+matic rescissi+n 3hen there is stipulati+n - imm+vable) - at the instance +, vend+r829: (Aut+matic rescissi+n 3hen there is stipulati+n C m+vable) - at the instance +, vend+r82:< (#pecial riht t+ rescind) - at the instance +, vend+r

829=(Technical Rescissi+n) - at the instance +, vend+r

8299(<) (3here there is breach +, 3arranty +n the part +, seller) C at the instance +, vendee

Rescissi+n in case +, breach +, a party +r lesi+n&ES!ISSION (&ESOL5TION) 8898 &ES!ISSION > 8:;8leal basis is substantial breach leal basis is lesi+n (rescissible c+ntract)principal remedy retaliat+ry vs. unFust party subsidiary remedy C cann+t be instituted eHcept 3hen +ther remedies are eHhausted

mutual restituti+n mutual restituti+n

Rescissi+n at the instance +, vend+r - imm+vable8298 8293Rescissi+n based +n Anticipat+rybreach

Rescissi+n based +n stipulati+n reardin aut+matic rescissi+n

(b) There is delivery +, imm+vablepr+perty(c) Dendee has n+t paid the price(d) Dend+r has reas+nable r+undt+ ,ear the:a. !$## +, PR$P"RT7 A%'

b. !$## +, PR4&"

- Dend+r is iven an +pti+n t+ rescind P$% '4&4A! $R %$TAR4A! '"A%'- +3ever 3hen there is n+ Fudicial +r n+tarial demand vendee may still pay. $,,er t+ pay issu,,icient t+ de,eat vend+rs prer+ative.- Dend+rs riht t+ rescind is n+t abs+lute.+ Art. 111 par. ? pr+vides that the c+urt may rant vendee a ne3 term+3ever i, there is already a demand the c+urt may n+ l+ner ,iH a term.

Rescissi+n at the instance +, vend+r C m+vable J ++ds82:< 829=

#pecial riht t+ rescind Technical Rescissi+n#eller has already parted 3ith p+ssessi+n +, the ++dsI(1) #eller eHpressly reserved the riht t+ d+ s+ in case the buyer sh+uldma=e de,ault7 +r(2) The buyer has been in de,ault in the payment +, the price ,+r anunreas+nable time.

There is n+ delivery +, ++ds yetI(1) *uyer has repudiated the c+ntract +, sale7(2) *uyer has mani,ested his inability t+ per,+rm+bliati+ns7 +r(?) *uyer c+mmitted a breach

PrincipalJsubsidiary (<)

Rescissi+n at the instance +, vend+r - m+vable829: 82:< ? 829=+vable Pr+perty +vable Pr+perty J ++dsAut+matic rescissi+n +, sale +, m+vable is stipulated (#ee re6uisites)

PrincipalJsubsidiary (<)

!o-%aati+e Ta.e o &e-edies in $ase o .ea$/



D"%'$RJ#"!!"R D"%'""J*"R111119@(4$DA*!")1. Rescissi+n under 1512. Rescissi+n under 152?. Re pr+visi+ns +n aceda !a3

($DA*!" J B$$'#)1) Acti+n ,+r the price J #peci,ic per,+rmance (155)2) Acti+n ,+r 'amaes?) Rescissi+n under 159/) Rescissi+n under 15? (there is stipulati+n)

111119@(4$DA*!")1. #uspensi+n +, payment under 1512. Riht t+ race peri+d under aceda !a3($DA*!" J B$$'#)

1. (158)2. 4n case +, breach +, 3arranty +, seller (15)?.

* E@TING5ISH'ENT OF SALEArt. 10@@: #ales are eHtinuished by the same causes as all +ther +bliati+ns by th+se stated in the precedin articles +, this Title and byc+nventi+nal +r leal redempti+n.#ales are eHtinuished by the same causes as all +ther +bliati+ns (Art. 10@@) such as:1. Payment +r per,+rmance +, +bliati+n2. !+ss +, the thin due?. &+nd+nati+n +r remissi+n +, debt/. &+n,usi+n +r merer +, rihts5. &+mpensati+n0. %+vati+n9. Rescissi+n8. Annulment

#ales are als+ eHtinuished by &$%D"%T4$%A! $R !"BA! R"'"PT4$%.

*!on+entiona &ede-%tion&+nventi+nal redempti+n:U seller reserved the riht t+ repurchase thin s+ldU c+upled 3ith +bliati+n t+ return price +, the sale eHpenses +, c+ntract +ther leitimate payments and the necessary use,ul eHpensesmade +n the thin s+ldU riht is eHercised +nly by seller in 3h+m riht is rec+nied in the c+ntract +r by any pers+n t+ 3h+m riht 3as trans,erred

> A riht +, repurchase is an alienable riht and 3ithin the c+mmerce +, man. 4t may be s+ld attached and levied up+n."6uitable +rtae (re6uisites):1. the parties entered int+ a c+ntract den+minated as sale2. the intenti+n 3as t+ secure an eHistin debt by 3ay +, m+rtae

Rati+nale *ehind Pr+visi+n +n "6uitable +rtae1. T+ av+id circumventi+n +, usury la32. T+ av+id circumventi+n +, pr+hibiti+n aainst pactum c+mmiss+rium C credit+r cann+t appr+priate the thins iven by 3ay +, plede +rm+rtae7 remedy here is ,+recl+sure

Art. 818: &+nventi+nal redempti+n shall ta=e place 3hen the vend+r reserves the riht t+ repurchase the thin s+ld 3ith the +bliati+n t+

c+mply 3ith the pr+visi+ns +, Article 1010 and +ther stipulati+ns 3hich may have been areed up+n.Art. 813: The c+ntract shall be %esu-ed t+ be an euita.e -ot7a7e in any +, the ,+ll+3in cases: [I"E&TOD](1) hen the price +, a sale 3ith riht t+ repurchase is unusually inade6uate7(2) hen the vend+r remains in %+ssessi+n as lessee +r +ther3ise7(?) hen up+n +r a,ter the eHpirati+n +, the riht t+ repurchase an+ther instrument eHtendin the peri+d +, redempti+n +r rantin a ne3peri+d is eHecuted7(/) hen the purchaser etains ,+r himsel, a part +, the purchase price7(5) hen the vend+r binds himsel, t+ pay the taHes +n the thin s+ld7(0) 4n any +ther case 3here it may be ,airly in,erred that the real intenti+n +, the parties is that the transacti+n shall secure the payment +, adebt +r the per,+rmance +, any +ther obliati+n.4n any +, the ,+re+in cases any m+ney ,ruits +r +ther bene,it t+ be received by the vendee as rent +r +ther3ise shall be c+nsidered asinterest 3hich shall be subFect t+ the usury la3s.Art. 81:: 4n case +, d+ubt a c+ntract purp+rtin t+ be a sale 3ith riht t+ repurchase shall be c+nstrued as an e6uitable m+rtae.

Art. 81<: The pr+visi+ns +, Article 10@2 shall als+ apply t+ a c+ntract purp+rtin t+ be an abs+lute sale.Art. 812: 4n the cases re,erred t+ in Articles 10@2 and 10@/ the apparent vend+r may as= ,+r the re,+rmati+n +, the instrument.(#ee Art. 1?5)



#h+uld there be an areement the peri+d cann+t eHceed ten years.+3ever the vend+r may still eHercise the riht t+ repurchase 3ithin thirty days ,r+m the time ,inal Fudment 3as rendered in a civil acti+n+n the basis that the c+ntract 3as a true sale 3ith riht t+ repurchase.(This is n+t applicable t+ abs+lute sale. This is applicable +nly 3here the nature +r character +, the transacti+n as t+ 3hether it is a pact+de retr+ sale +r e6uitable m+rtae 3as put in issue be,+re the c+urt.)Art. 81=: 4n case +, real pr+perty the c+ns+lidati+n +, +3nership in the vendee by virtue +, the ,ailure +, the vend+r t+ c+mply 3ith thepr+visi+ns +, article 1010 shall n+t be rec+rded in the Reistry +, Pr+perty 3ith+ut a Fudicial +rder a,ter the vend+r has been duly heard.

(pertains t+ the rec+rdin +, the c+ns+lidati+n +, +3nership)Art. 81;: The vend+r may brin his acti+n aainst every p+ssess+r 3h+se riht is derived ,r+m the vendee even i, in the sec+nd c+ntractn+ menti+n sh+uld have been made +, the riht t+ repurchase 3ith+ut preFudice t+ the pr+visi+ns +, the +rtae !a3 and the !andReistrati+n !a3 3ith respect t+ third pers+ns.Art. 819: The vendee is subr+ated t+ the vend+rVs rihts and acti+ns.Art. 818: The credit+rs +, the vend+r cann+t ma=e use +, the riht +, redempti+n aainst the vendee until a,ter they have eHhausted thepr+perty +, the vend+r.(This is in c+ns+nance 3ith Art. 1199)

Art. 8188: 4n a sale 3ith a riht t+ repurchase the vendee +, a part +, an undivided imm+vable 3h+ ac6uires the 3h+le there+, in the case+, article /8 may c+mpel the vend+r t+ redeem the 3h+le pr+perty i, the latter 3ishes t+ ma=e use +, the riht +, redempti+n.Art. 8183: 4, several pers+ns F+intly and in the same c+ntract sh+uld sell an undivided imm+vable 3ith a riht +, repurchase n+ne +, themmay eHercise this riht ,+r m+re than his respective share.The same rule shall apply i, the pers+n 3h+ s+ld an imm+vable al+ne has le,t several heirs in 3hich case each +, the latter may +nlyredeem the part 3hich he may have ac6uired.Art. 818:: 4n the case +, the precedin article the vendee may demand +, all the vend+rs +r c+-heirs that they c+me t+ an areement up+nthe purchase +, the 3h+le thin s+ld7 and sh+uld they ,ail t+ d+ s+ the vendee cann+t be c+mpelled t+ c+nsent t+ a partial redempti+n.Art. 818<: "ach +ne +, the c+-+3ners +, an undivided imm+vable 3h+ may have s+ld his share separately may independently eHercise theriht +, repurchase as reards his +3n share and the vendee cann+t c+mpel him t+ redeem the 3h+le pr+perty.Art. 8182: 4, the vendee sh+uld leave several heirs the acti+n ,+r redempti+n cann+t be br+uht aainst each +, them eHcept ,+r his +3nshare 3hether the thin be undivided +r it has been partiti+ned am+n them.*ut i, the inheritance has been divided and the thin s+ld has been a3arded t+ +ne +, the heirs the acti+n ,+r redempti+n may beinstituted aainst him ,+r the 3h+le.Art. 8181: The vend+r cann+t avail himsel, +, the riht +, repurchase 3ith+ut returnin t+ the vendee the price +, the sale and in additi+n:(1) The eHpenses +, the c+ntract and any +ther leitimate payments made by reas+n +, the sale7(2) The necessary and use,ul eHpenses made +n the thin s+ld.(c+nstrue 3ith Art. 5/9 and Art. 5/97 enumerati+n is n+t eHclusive7 tender +, payment is en+uh because +ther eHpenses are still subFect t+validati+n)Art. 818=: 4, at the time +, the eHecuti+n +, the sale there sh+uld be +n the land visible +r r+3in ,ruits there shall be n+ reimbursement,+r +r pr+ratin +, th+se eHistin at the time +, redempti+n i, n+ indemnity 3as paid by the purchaser 3hen the sale 3as eHecuted.#h+uld there have been n+ ,ruits at the time +, the sale and s+me eHist at the time +, redempti+n they shall be pr+rated bet3een theredempti+ner and the vendee ivin the latter the part c+rresp+ndin t+ the time he p+ssessed the land in the last year c+unted ,r+m theanniversary +, the date +, the sale.Art. 818;: The vend+r 3h+ rec+vers the thin s+ld shall receive it ,ree ,r+m all chares +r m+rtaes c+nstituted by the vendee but heshall respect the leases 3hich the latter may have eHecuted in ++d ,aith and in acc+rdance 3ith the cust+m +, the place 3here the land issituated.

P$T"T4&A! ;"#T4$%#:1. A land 3as s+ld in 191 ,+r P5@=. !ater the vend+r claims sale t+ be an e6uitable m+rtae because +, unusual inade6uacy +, the price.4s he c+rrect<

%+. Price is n+t inade6uate because +, circumstance and time the thin 3as s+ld. 4n 191 P5@= is already a bi am+unt. 4nade6uacy +,price is determined at the time +, sale.2. (<) A third pers+n ac6uires riht +, repurchase +, vend+r 3hich 3as attached and s+ld at a public aucti+n 3here the ,+rmer became thehihest bidder. ay vend+r still eHercise riht +, repurchase<?. (<)(<)(<) A +3es * P1@@=. * ,iled an acti+n t+ c+llect7 and Fudment is rendered in his ,av+r. The subFect parcel +, land 3as a3arded t+*. ay A be c+mpelled t+ immediately deliver the land<%+ there is +ne year riht +, repurchase./. A and * entered int+ a c+ntract +, sale 3ith riht +, repurchase. They areed that the riht +, repurchase is ,iHed at P0@@=. 4s thestipulati+n valid<es. &+nventi+nal redempti+n is subFect t+ such N+ther stipulati+ns 3hich may have been areed up+n.‖(Art. 10@1) (#+lid +mes vs &A)5. A and * entered int+ a pact+ de retr+ sale. * the vendee a retr+ s+ld the subFect pr+perty t+ & thr+uh an abs+lute sale. ay A eHercisethe riht +, repurchase as aainst &<es. The vend+r may brin his acti+n aainst every p+ssess+r 3h+se riht is derived ,r+m the vendee even i, in the sec+nd c+ntract there

is n+ menti+n as t+ the riht t+ repurchase (Art. 10@8)0. A and * entered int+ a pact+ de retr+ sale. * the vendee a retr+ leased the subFect pr+perty t+ &. ay A evict &<%+. A is b+und t+ respect the lease (Art. 1018)



9. * entered int+ a pact+ de retr+ sale 3ith &. A is a credit+r +, *. ay A pr+ceed directly aainst & (+r levy up+n the subFect pr+perty 3hichis in the p+ssessi+n +, &) ,+r the satis,acti+n +, *s debt<%+. The credit+rs +, the vend+r cann+t ma=e use +, the riht +, redempti+n aainst the vendee until a,ter they have eHhausted the pr+perty+, the vend+r. (Art. 101@ in c+nnecti+n 3ith Art. 1199) K%+ted: eHcepti+ns t+ this rule are: (a) a m+rtae 3hich is rec+rded pri+r t+ sale and(b) m+rtae that 3as ,+recl+sedL8. A * and & are c+-+3ners +, an undivided imm+vable. A s+ld his share t+ ' 3hich made ' a ne3 c+-+3ner. Partiti+n +, the pr+pertyt++= place. #ubse6uently * and & s+ld their part +, the pr+perty t+ '. Rule the case.

A may be c+mpelled t+ redeem the 3h+le pr+perty i, he 3ishes t+ redeem (Art. 1011). A * and & are c+-+3ners +, an undivided imm+vable. They F+intly entered int+ a c+ntract +, pact+ de retr+ sale +, the imm+vablepr+perty t+ '. Rule the case.%+ne may eHercise riht t+ repurchase m+re than his share. (Art. 1012)1@. G +3ns a parcel +, land. hen he died he le,t the said land t+ A * and &. A * and & F+intly entered int+ a c+ntract +, pact+ de retr+sale +, the imm+vable pr+perty t+ '. Rule the case.%+ne may eHercise riht t+ repurchase m+re than his share. (Art. 1012)11. 4n Ms 8 and 1@ ay the vendee demand ,r+m vend+rs t+ aree t+ purchase the 3h+le<es. 4, the vend+rs cann+t aree the vendee cann+t be c+mpelled t+ c+nsent t+ partial redempti+n. (Art. 101?)12. A * and & are c+-+3ners +, an undivided imm+vable. They entered int+ separate c+ntracts +, pact+ de retr+ sale +, their shares in,av+r +, +ne vendee '. ay ' c+mpel either +, A * and & t+ redeem the 3h+le<%+ they cann+t be c+mpelled but each +, them may independently eHercise the riht +, repurchase as reards his share. (Art. 101/)1?. A entered int+ a pact+ de retr+ sale +, an undivided imm+vable 3ith *. * the vendee died leavin & ' and " as his heirs. ay Ac+mpel +ne +, the heirs t+ redeem the 3h+le pr+p< 4, the pr+perty has already been partiti+ned 3+uld the ans3er be the same<

hether the pr+perty is undivided +r partiti+ned the heirs cann+t be c+mpelled t+ redeem the 3h+le pr+perty eHcept 3hen a,ter partiti+nthe 3h+le pr+perty has been a3arded t+ +ne +, the heirs in 3hich case he may be c+mpelled t+ redeem the 3h+le.1/. #uria case (Art. 1010)15. A entered int+ a pact+ de retr+ sale +, a parcel +, land 3ith *. The pr+perty is t+ be redeemed 3ithin ? years ,r+m sale. The land 3ass+ld t+ * at P5@@=. * ,urther paid P5@= ,+r the r+3in and visible ,ruits +n the land. $n the ?rd year a,ter sale A s+uht t+ redeem thepr+perty C(a) 4, A 3ill eHercise redempti+n he must pay P55@= as price ,+r sale.(b) 4, * did n+t pay he is n+t entitled t+ reimbursement ,+r cr+ps eHistin at the time +, redempti+n.(c) 4, n+ cr+ps at the time +, sale and s+me eHist at redempti+n * is entitled t+ cr+ps durin the last year i.e. 2nd year.(d) 4, there 3ere cr+ps at the time +, sale and * paid them * must receive reimbursement +r is entitled t+ ,ruits ,+r the last year becausehavin paid them the e,,ect is the same as i, there 3ere n+ cr+ps +n the land 3hen it 3as s+ld. (Art. 1019)10. A entered int+ a pact+ de retr+ sale 3ith *. * the vendee a retr+ m+rtaed the pr+perty t+ &. #h+uld * redeem the m+rtae pri+r t+As eHercise +, his riht +, repurchase<es. The vend+r 3h+ rec+vers the thin s+ld shall receive it ,ree ,r+m all chares +r m+rtaes c+nstituted by the vendee. (Art. 1018)19. A the vend+r a retr+ be,+re the eHpirati+n +, the peri+d +, redempti+n br+uht an acti+n t+ declare that such sale is really a simplem+rtae. #everal years later it 3as declared as pact+ de retr+. &an the vend+r a retr+ still redeem the pr+perty<

es. #ee Art. 10@1 par. ?

* Le7a &ede-%tionU !eal redempti+n is n+t applicable t+: (enumerati+n is n+t eHclusive)(a) barter(b) d+nati+n(c) transmissi+n +, thins by hereditary title(d) m+rtae

(e) lease

U Article 8<93 pr+vides that the pr+hibiti+ns as laid d+3n in Arts. 1/@ and 1/1 are als+ applicable t+ leal redempti+n.

Art. 8189: !eal redempti+n is the riht t+ be subr+ated up+n the same terms and c+nditi+ns stipulated in the c+ntract in the place +,+ne 3h+ ac6uires a thin by purchase +r dati+n in payment +r by any +ther transacti+n 3hereby +3nership is transmitted by +ner+us title.(purp+se is t+ minimie c+-+3nership)Art. 8::: #ubr+ati+n trans,ers t+ the pers+ns subr+ated the credit 3ith all the rihts theret+ appertainin either aainst the debt+r +raainst third pers+n be they uarant+rs +r p+ssess+rs +, m+rtaes subFect t+ stipulati+n in a c+nventi+nal subr+ati+n.Art. 813: A c+-+3ner +, a thin may eHercise the riht +, redempti+n in case the shares +, all the +ther c+-+3ners +r +, any +, them ares+ld t+ a third pers+n. 4, the price +, the alienati+n is r+ssly eHcessive the redempti+ner shall pay +nly a reas+nable +ne.#h+uld t3+ +r m+re c+-+3ners desire t+ eHercise the riht +, redempti+n they may +nly d+ s+ in pr+p+rti+n t+ the share they mayrespectively have in the thin +3ned in c+mm+n.

Re6uisites:1. &+-+3nership



?. #ale t+ a straner/. *e,+re partiti+n

Art. 8138: The +3ners +, adF+inin lands shall als+ have the riht +, redempti+n 3hen a piece +, rural land the area +, 3hich d+es n+teHceed +ne hectare is alienated unless the rantee d+es n+t +3n any rural land.This riht is n+t applicable t+ adFacent lands 3hich are separated by br++=s drains ravines r+ads and +ther apparent servitudes ,+r thebene,it +, +ther estates.

4, t3+ +r m+re adF+inin +3ners desire t+ eHercise the riht +, redempti+n at the same time the +3ner +, the adF+inin land +, smaller areashall be pre,erred7 and sh+uld b+th lands have the same area the +ne 3h+ ,irst re6uested the redempti+n.-Re6uisites:1. b+th lands are rural2. adFacent?. there is an alienati+n/. less than 1 hectare- purp+se is t+ enc+urae maHimum devel+pment and utiliati+n +, aricultural landsArt. 8133: henever a piece +, urban land 3hich is s+ small and s+ situated that a maF+r p+rti+n there+, cann+t be used ,+r any practicalpurp+se 3ithin a reas+nable time havin been b+uht merely ,+r speculati+n is ab+ut t+ be re-s+ld the +3ner +, any adF+inin land has ariht +, pre-empti+n at a reas+nable price. (Riht +, Pre-empti+n)4, the re-sale has been per,ected the +3ner +, the adF+inin land shall have a riht +, redempti+n als+ at a reas+nable price.hen t3+ +r m+re +3ners +, adF+inin lands 3ish t+ eHercise the riht +,pre-empti+n +r redempti+n the +3ner 3h+se intended use +, the land in 6uesti+n appears best Fusti,ied shall be pre,erred. (Riht +,redempti+n)Art. 813:: The riht +, leal pre-empti+n +r redempti+n shall n+t be eHercised eHcept 3ithin thirty days ,r+m the n+tice in 3ritin by thepr+spective vend+r +r by the vend+r as the case may be. The deed +, sale shall n+t be rec+rded in the Reistry +, Pr+perty unlessacc+mpanied by an a,,idavit +, the vend+r that he has iven 3ritten n+tice there+, t+ all p+ssible redempti+ners.The riht +, redempti+n +, c+-+3ners eHcludes that +, adF+inin +3ners.



Documents

Obligations of the Vendee Sales 093015