Sales atty. Uribe notes

7/27/2019 Sales atty. Uribe notes

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CIVIL LAWREVIEW II -

LAW ON

SALESAtty. Crisostomo Uribe - Course Outline (Dec.!!"#

Donnell R. A$%ton & Recoletos 'e %nil% - Colle$eo) L%*


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Art. 1458 (CC) By the contract of sale, one ofthe contracting parties obligates himself totransfer ownership of and to delier adeterminate thing, and the other to paytherefor a price in money or its e!"ialent.

#hen one of the parties deliers a thing andthe other pays a price it constit"te a contractof sale$

Not necess%rily. Not %ll 'eli+ery o) % t,in$ %n't,e concomit%nt %yment o) % rice constitute %contr%ct o) s%le. It coul' be % contr%ct o) le%se.W,%t is necess%ry is t,e intent o) t,e %rties totr%ns)er o*ners,i o+er t,e subect m%tter o) t,econtr%ct o) s%le.

Note/ S%le is % contr%ct %n' t,ere)ore0 t,e

ro+ision on obli$%tions %n' contr%ct un'er t,eci+il co'e m%y $ener%lly %ly.

#hat are the characteristics of a contract ofsale$

1. Consensu%l. er)ecte' by meetin$ o) t,e min's %s to t,e

rice %n' t,e obect.

e2cet/ in c%ttle re$istr%tion 'ecree tobe % er)ecte' contr%ct it re3uires to be in %ublic instrument0 re$istere' %n' % certi)ic%teo) title be issue'.

4. It is % rinci%l contr%ct suc, t,%t it c%n st%n'on its o*n )or its er)ection %n' +%li'ity.

5. It is onerous *,ere bot, %rties %re obli$e' to$i+e somet,in$.

6. Commut%ti+e bec%use t,ere is e3ui+%lence o)+%lue to be er)orme' by bot, %rties.

e2cet/ %le%tory contr%cts or s%le o),oe. 7,e obli$%tion o) % %rty *ill only %riseuon t,e ,%enin$ o) % cert%in e+ent orcon'itions. 7,e er)orm%nce o) one o) t,e%rties or bot, is contin$ent on t,eoccurrence o) % %rticul%r e+ent.

e.$. s%le o) lotto tic8et iscontin$entuon t,e numbers *oul' %e%r in t,e 'r%*.

Insur%nce contr%cts.

9. Nomin%te contr%ct - ,%s % %rticul%rn%me to 'istin$uis, it )rom ot,ers.

As to n%ture/

1. mo+%ble or immo+%ble - 7,is is imort%ntbec%use one must 'etermine t,e obect o) t,es%le.

St%tute o) :r%u's/

%. mo+%bleb. immo+%ble%ce'% L%*Recto L%*

. A t,in$ or % ri$,t - imort%nt %s to t,e mo'e o)'eli+ery.

4. V% l i ' 0 Vo i ' % b l e 0 Vo i ' 0 u n e n ) o rc e % b l e

Rescissible etc.

#hat are the distinctions between absol"tesale and conditional sale$

Absol"te %ale Conditional %ale

7,e seller 'oes notreser+e ,is title o+ert,e t,in$ sol'0o*ners,i %ssesuon 'eli+ery*,et,er t,e buyer,%s %ctu%lly %i' %sin$le cent%+o ornot.

Con'itions %reimose' by t,eseller in or'er t,%to*ners,i *ill%ss.

O*ners,i%utom%tic%lly%sses )rom t,emoment t,econ'ition,%ene'.

Contract to sell


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A receit *%s issue' by A to ; )or t,e sum o)o*e+er0 i) A is obli$e' to 'eli+er % ,orse butinste%' 'eli+ere' % c%r %n' ; %ccets0 t,is*oul' be '%tion in %yment but not un'er Art.

156 but by no+%tion by c,%n$in$ t,e obect o)t,e obli$%tion.

As to n%ture0 '%tion in %yment is % seci%l )ormo) %yment0 *,ile s%les is % contr%ct.

In '%tion in %yment t,ere must be % re

e2istin$ obli$%tion. Since t,is is % seci%l )orm o)%yment0 t,ere ,%s to be %n obli$%tion. 7,ere isno re e2itin$ obli$%tion in % contr%ct o) s%le.

'assach"setts "le

It is % rule *,ere % contr%ct *%s entere' into )or% contr%ct )or % iece o) *or8. :or e2%mle0 %erson *,o entere' % store to buy s,oes0 butsince t,ere is no si?e t,%t *oul' )it suc, erson0t,e store o))ere' to m%8e % %ir o) s,oesseci%lly m%'e )or ,im. In % contr%ct o) s%le0 t,e

s,oes or'in%rily sol' %re )or t,e $ener%l m%r8et0*,ile t,e s,oes seci%lly m%'e0 is % contr%ct )oriece o) *or8.

A obliged himself to delier to B a car wor*5+. B on the other hand, obliged himself todelier to B a watch pl"s cash in the amo"ntof 15+. #hat is the nat"re of the transactionbetween A and B$

Deen'in$ on t,e intention o) t,e %rties0 A %n'; m%y consi'er %s one o) s%le or b%rter. I) t,eintention o) t,e %rties %re not cle%r b%se on t,e%$reement0 t,e n%ture o) t,e contr%ct *oul''een' on t,e +%lue o) t,e *%tc,. I) t,e +%lue o)t,e *%tc, is $re%ter t,%n 16!80 it *ill be b%rter0but i) t,e +%lue o) t,e *%tc, is e3u%l or less t,%n16!80 t,en it *oul' be s%le. 7,e +%lue ) t,e c%ris irrele+%nt.

A gae B the ecl"sie right to sell his denim-eans, promising B *+ disco"nt on sales./oweer, it was stip"lated in their agreement

that B shall pay the price of this -eans 0+days from deliery. After the -eans wasdelier to B and before B co"ld sell the

-eans, the store was b"rned witho"t the fa"ltof anyone. h"s, can B still be compelled topay the price of this -eans$

Un'er Art. 15990 in construin$ % contr%ctcont%inin$ ro+isions c,%r%cteristic o) bot, t,e


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contr%ct o) s%le %n' o) t,e contr%ct o) %$ency tosell0 t,e essenti%l cl%uses o) t,e *,oleinstrument s,%ll be consi'ere'.

I) %ssumin$ t,is is % contr%ct o) %$ency t,eo*ners,i 'oes not %ss to ;0 t,e o*ner-sellers,%ll be%r t,e loss %n' notin$ t,%t ; is not

ne$li$ent un'er t,e )%cts. I) ,o*e+er it is %contr%ct o) s%le0 t,en o*ners,i %sses to ;0%n' since ,e is t,e o*ner0 ,e be%rs t,e loss.

Since bot, %re c,%r%cteristic o) % contr%ct o)s%le %n' %$ency0 t,e ro+isions o) Art. 1599,o*e+er s,%ll be %lie'. >ere0 t,e essenti%lcl%uses o) t,e *,ole instrument must bein3uire' into. One o) t,e cl%uses or con'ition%$ree' uon by t,e %rties is t,%t @; ,%' to %yt,e rice *it,in 9! '%ys. As suc,0 t,%t *oul'm%8e t,e contr%ct %s one o) s%le %n' not o)

%$ency. 7,is is bec%use 9! '%ys )rom 'eli+ery0*,et,er or not ; ,%s sol' t,ose e%ns to ot,erersons0 ,e is %lre%'y obli$e' to %y t,e rice.;ein$ % contr%ct o) s%le t,ere)or %n' t,ere,%+in$ % 'eli+ery0 o*ners,i %sses to t,ebuyer. >ence0 t,e buyer be%rs t,e loss.7,ere)ore ,e c%nnot be comelle' to %y t,erice o) t,e e%ns.

2ssential elements of a contract of sale$

1. Consent o) t,e contr%ctin$ %rties. O b e c t o r s u b e c t m % t t e r * , i

c , i s % 'etermin%te t,in$ or 'etermin%tesubect m%tter (m%y eit,er be % t,in$ or ri$,t#.

Ser+ice c%nnot be % subect m%tter o) % contr%ct o) s%le.

4. C%use or consi'er%tion

As to t,e seller/ t,e rice in money or its e3ui+%lent.

#hat is the effect of a contract of sale whenthere is no consent gien by one or both ofthe parties$

I) consent is not $i+en by one or bot, o) t,e%rties0 t,e contr%ct is +oi' bec%use one o) t,eessenti%l elements is l%c8in$. Un'er t,e l%*0 it isconsi'ere' %s % )ictitious contr%ct. A )ictitiouscontr%ct *oul' norm%lly be t,%t @t,e si$n%ture o)

t,e %rties in t,e s%le *%s )or$e'. I) t,esi$n%ture o) t,e seller *%s )or$e'0 t,%t *oul' be% )ictitious contr%ct. 7,e %lle$e' seller *ill not,%+e %rtici%tion in t,e e2ecution o) t,econtr%ct.%im"lated Contract

>Ere t,e %rties %ctu%lly ,%+e %rtici%tion.7,ey (t,e %rties# +olunt%rily si$n t,e 'ee' o)s%le0 ,o*e+er t,ey 'o not inten' to be boun' byt,e terms o) t,e contr%ct0 or t,ey m%y inten' tobe boun' but not un'er % contr%ct o) s%le but onsome ot,er contr%ct.

Bin's o) simul%te' contr%cts

1. Absolutely simul%te' Contr%cts - >ere0 t,e%rties 'o not *%nt to be boun' by t,e

contr%ct0 t,e common re%son is to 'e)r%u'cre'itors. :or e2%mle0 t,e 'ebtor *ol' sell,is rem%inin$ roerties in % simul%te'contr%ct to m%8e it %e%r t,%t ,e ,%s noroerty0 t,%t m%y be re%c,e' by ,iscre'itors.

. Rel%ti+ely simul%te' contr%cts - >ere it m%y%e%r to be in % +%li' 'ee' o) s%le but t,ey%ctu%lly inten' to enter into %not,er contr%ctsuc, t,%t it is %ctu%lly % 'on%tion or tocircum+ent t,e ro+isions o) t,e le$itime.

3f consent is gien, wo"ld it mean that thecontract is alid$

Not necess%rily0 bec%use *,en consent is $i+enby %n inc%%cit%te' erson0 suc, is +oi' or+oi'%ble %s t,e c%se m%y be. 7,is is bec%uset,ere %re seci)ic rules )ollo*e' 'een'in$ ont,e b%sis o) inc%%city.

#hat are the inds of incapacity

1. Absolute inc%%city - A %rty c%nnot +%li'ly$i+e consent to %ny contr%ct.

. Rel%ti+e inc%%city - 7,e %rty is ro,ibite' inenterin$ into seci)ic contr%cts or seci)icersons or t,in$s.


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%. S%le bet*een souses - 7,e SC *oul'consistently consi'er t,is contr%ct %s +oi'0e2cet/

%1. *,en t,e souses in t,eir m%rri%$e settlement0 %n' %$ree' t,ey constitute comlete se%r%tion o) roerty. 7,ey

c%n enter into % contr%ct o) s%le *it, e%c, ot,er.

%. E+en i) t,ey 'i' not e2ecute %m%rri%$e settlement0 i) 'urin$ t,eir m%rri%$eobt%ine' % u'ici%l 'ecl%r%tion o) comletese%r%tion o) roerty.

%. s%le by ersons mentione' un'er Art. 15"10n%mely/

b1. 7,e $u%r'i%n0 t,e roerty o) t,e

erson or ersons *,o m%y be un'er ,is $u%r'i%ns,i

b . A $ e n t s 0 t , e r o e r t y *, o s e % ' m i n i s t r % t i o n o r s % l e m % y, % + e b e e n entruste' to t,em0 unless t,econsent o)t,e rinci%l ,%s been $i+en

b40 E2ecutors %n' %'ministr%tors0 t,e r o e r t y o ) t , e e s t % t e u n 'e r%'ministr%tion

b5. ublic o))icers %n' emloyees0 t,e r o e r t y o ) t , e S t % t e o r o )% n y s u b ' i + i s i o n t , e r e o ) 0 o r o )

% n y $o+ernment-o*ne' or controlle'coror%tion0 or institution0 t,e

%'ministr%tion o) *,ic, ,%s beenintruste' to t,em t,is ro+ision s,%ll %ly to u'$es %n' $o+ernment

e2erts *,o0 in %ny m%nner *,%tsoe+er0 t%8e

%rt in t,e s%le

b 6 . u s t i c e s 0 u ' $ e s 0 r o se c u t i n $ %ttorneys0 cler8s o) suerior %n'in)erior courts0 %n' ot,er o))icers %n'

emloyees connecte' *it, t,e%'ministr%tion o) ustice0 t,e roerty

%n' ri$,ts in liti$%tion or le+ie' uon %ne2ecution be)ore t,e court *it,in *,ose uris'iction or territory t,ey e2ercise

t,eir resecti+e )unctions t,is ro,ibition

inclu'es t,e %ct o) %c3uirin$ by %ssi$nment %n's,%ll %ly to l%*yers0 *it, resect to t,eroerty %n' ri$,ts *,ic, m%y be t,e


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obect o) %ny liti$%tion in *,ic, t,ey m%yt%8e %rt by +irtue o) t,eir ro)ession.

b9. Any ot,ers seci%lly 'is3u%li)ie' by l%*.

c. Aliens %re ro,ibite' )rom %c3uirin$ ri+%te

l%n's by urc,%se0 e2cet/

c1. )ormer n%tur%l born citi?ens

Note/ E+en i) consent is $i+en by onec%%cit%te' but suc, consent is +iti%te' consent0t,e contr%ct is merely +oi'%ble eit,er by )r%u'0mist%8e0 intimi'%tion0 un'ue in)luence %n'+iolence.

I) t,e %rty $i+in$ consent is in t,e n%me o)%not,er erson0 but *it,out t,e %ut,ority o) suc,

erson or %ut,ority o) t,e l%*0 suc, contr%cts,%ll be unen)orce%ble.

wo inds of capacity

1. uri'ic%l c%%city

It is t,e )itness to be t,e subect o) le$%l rel%tions.

I) t,e %rty ,%s no uri'ic%l c%%city0 t,e contr%ct is 'e)initely +oi'.

All li+in$ n%tur%l ersons ,%+e uri'ic%l c%%city.

An %lle$e' coror%tion *,ic, ,%s not been re$istere' *it, t,e SEC ,%s no uri'ic%l c%%city.

. C%%city to %ct

It is t,e o*er to 'o %cts *it, le$%le))ects.

Wit,out c%%city to %ct0 norm%lly t,e contr%ct s,%ll be +oi'%ble.

%rticul%r restriction *it, resect toc%%city to %ct is minority or ins%nity0 'e%)mutes *,o 'oes not 8no* ,o* to re%' %n'*rite or ersons su))erin$ )rom


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o*e+er0 to bin' t,ir' ersonssuc, s%le must be recor'e' in t,e re$istry o)roerty.

3n a deed of sale, where the price stated inthe deed was 1++ lapad (1+,+++ yen) 1million yen, as s"ch the sale not being in6hilippine peso, a alid sale$ Can the sellercompel the b"yer to pay in that c"rrency$

7,%t *oul' be % +%li' s%le e+en i) t,e currencyis not ,iliine currency0 %s t,e l%* re3uiresonly t,%t it be in money or it m%y e+en be itse3ui+%lent li8e romissory notes0 or letters o)cre'it.

I) t,e contr%ct *oul' be entere' into %)ter RA

6" *%s ree%le' by RA 14 in 1""90 t,en t,eseller c%n be comelle' to %y in % currencyot,er t,%n ,iliine eso. Ot,er*iset,e seller c%nnot comel t,e buyer to % in

%%nese currency.

Can there be a alid payment in 1+,+++ 1peso coins$

Fes0 but t,e seller c%nnot be comelle' to%ccet bec%use un'er ,iliine l%* 1 esocoins only ,%+e le$%l ten'er o*er u to 6!

esos.

%ale of shares of stocs al"ed at 5+++ b"tthere was no date as to the al"e of theshares

7,e rice must be cert%in %s one o) t,ere3uirement in or'er t,%t t,e s%le s,%ll be +%li'.7,e '%te is +ery m%teri%l bec%use t,e +%lue o)t,e s,%res c,%n$es 'een'in$ on t,e '%te.

E+en i) t,e '%te ,%s been )i2e' but t,e time ,%snot been consi'ere' suc, %s t,e oenin$ %n'closin$ *it, resect to suc, e2c,%n$e *oul'%))ect t,e +%li'ity o) t,e s%le. ;ec%use i) t,e+%lue uon t,e oenin$ is 6! esos but in t,eclosin$ it is only 4" esos0 t,en suc, is notcert%in *,en t,e time is not consi'ere'.

#ho can fi the price of the sale$

It is best t,%t t,e %rties s,%ll %$ree %s to t,erice o) t,e s%le0 but t,e %rties m%y %$ree %s to

*,o m%y )i2 t,e rice.

'ay the sale be perfected if one of theparties is designated to fi the price$

It is +%li' ro+i'e' t,e erson 'esi$n%te' to )i2t,e rice0 t,e rice )i2e' must be %ccete' byt,e ot,er %rty. As to t,e rice0 i) one o) t,e%rties 'esi$n%te' )i2e' it %t 1 million but t,eot,er %rty 'i' not %ccet0 t,ere is no er)ecte'


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contr%ct o) s%le0 bec%use t,e l%tter 'i' not%ccet0 t,ere bein$ no meetin$ o) t,e min's.

'ay a third person be tased by the originalparties to fied the price$

It is +oi' *,en t,e t,ir' erson 'oes not *%nt to

)i2 t,e rice or un%ble to )i2 t,e rice.

I) suc, t,ir' erson *%s %ble to )i2 t,e rice butit is too ,i$, or it is too lo* %n' t,ere is )r%u'emloye'0 t,e contr%ct is not +oi'0 t,e reme'yo) suc, %rty is to $o to court to )i2 t,e rice.

'ay a sale be alid if the price of a car isal"ed at 1 peso$

Fes0 bec%use un'er t,e l%* $ross in%'e3u%cy%s to t,e rice 'oes not in+%li'%te t,e contr%ct0

e2cet %s ot,er*ise ro+i'e' by l%*.

An e2%mle o) t,is e2cetion is t,%t o) lesion*,ere suc, *oul' in+%li'%te t,e contr%ct o) s%leun'er Art. 141 *,ere t,e $u%r'i%n sells t,eroerty o) t,e *%r' %n' t,ere is lesion o) moret,%n 6G o) t,e +%lue o) suc, t,in$ suc,contr%ct is rescissible. I) t,e buyer s,oul' be t,e$u%r'i%n Art. 151 s,oul' %ly %n' t,e contr%cts,%ll be +oi'.

I) t,ere is % $ross in%'e3u%cy %n' t,e %rtiesinten' %not,er contr%ct0 t,en suc, *oul' be %simul%te' s%le0 %n' %s suc, t,e contr%ct s,%llbe +oi'0 %s *,en t,e re%l urose o) t,e s%le is'on%tion.

3s there a need for deliery in order that acontract of sale be perfected$

As % consensu%l contr%ct t,ere is no nee' )or'eli+ery in or'er t,%t % contr%ct o) s%le *ill be

er)ecte'. 7,e only 3uestion is ,ere t,e time*,en t,e contr%ct is er)ecte'.

ption sale

An otion s%le is er)ecte' uon t,e )%ll o) t,e,%mmer or %ny ot,er custom%ry m%nner by*,ic, t,e s%me m%y be consi'ere' er)ecte'.;e)ore t,e )%ll o) t,e ,%mmer0 t,e buyer *,om%'e ,is bi' m%y %ctu%lly *it,'r%* ,is bi'.

Wit, resect to t,e %uctioneer0 ,e m%y *it,'r%*%s % rule0 be)ore t,e )%ll o) t,e ,%mmer. Unlesst,e bi''in$ ,%s been %nnounce' to be *it,outreser+e' %s )%r %s t,e %uctioneer is concerne'.

ption contracts

In t,e c%se o) S%nc,e? +s. Ri$os0 Ri$os o))ere'to sell % %rcel o) l%n' to S%nc,e? )or % cert%inrice0 %n' Ri$os $%+e S%nc,e? ye%rs *it,in*,ic, to 'eci'e *,et,er ,e *ill buy it or not. Inotions t,e otionee or o))eree ,e is not boun'to urc,%se0 but ,e ,%s t,e otion. 7,ere)oreS%nc,e? ,%s t,e otion on *,et,er to buy t,el%n' or not. ;e)ore t,e l%se o) t,e ye%rerio'0 S%nc,e? tol' Ri$os t,%t ,e is buyin$ t,el%n'0 but Ri$os re)use' to sell it %n' s%i' t,%t ,e*%s not boun' by t,is %$reement bec%use t,ere

*%s no otion money $i+en by S%nc,e? )or l%c8o) consi'er%tion.

;ut t,e SC s%i' t,%t since S%nc,e? t,e o))eree%ccete' t,e o))er %n' consi'ere' to buy *it,int,e erio' be)ore t,e o))er *%s *it,'r%*n %er)ecte' contr%ct o) s%le *%s cre%te' e+en*it,out t,e otion money $i+en by t,e o))eree.In t,is c%se t,ere *%s no otion contr%ct0 %n't,is is merely %n otion %$reement *,ereby*,%t *%s $i+en is merely %n o))er on t,e %rt o)R i $ o s 0 t , e r e ) o r e b e ) o r e t , e o t i o n * % s *it,'r%*n re$%r'less *,et,er %notion money is $i+en0 % er)ecte' contr%ct o)s%le *%s cre%te'.

Assumin$ t,ere *%s otion money0 be)ore t,eo))eree 'eci'e to buy t,e o))error *it,'r%* ont,e 9t, mont,0 but on t,e 1!t, mont, t,e o))eree'eci'e' t,%t t,e o))eror no* *%nt to buy. C%nt,e o))eree comel t,e seller to sell t,e o))er,%+in$ been *it,'r%*n be)ore it *%s %ccete'=No. 7,e %ction )or seci)ic er)orm%nce *ill not

roser bec%use t,e o))eree *,o 'eci'e' tobuy0 *,en t,e o))error *it,'r%* t,e s%me0 t,ereis no more o))er to be consi'ere'.

;ut t,e o))eree c%n cl%im )or '%m%$es bec%uset,e o))error is boun' to $i+e t,e o))eree ye%rs*it,in *,ic, to 'eci'e. >e is li%ble not un'er %er)ecte' contr%ct o) s%le but on % er)ecte'contr%ct to o))er.


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ption money disting"ished from earnestmoney

Otion money is not consi'ere' %rt o) t,erice e%rnest money is consi'ere' %s %rt o)t,e rice but %lso consi'ere' %s roo) o) %er)ecte' contr%ct o) s%le.

Note ,o*e+er0 %s 'eci'e' by t,e SC0 *,en t,eotion money *ill be tre%te' by t,e %rties %s%rt o) t,e rice0 t,e s%me s,%ll be bin'in$bet*een t,e %rties. Wit,out stiul%tion0 it is notconsi'ere' %rt o) t,e rice. Otion money is %consi'er%tion )or t,e otion.

2arnest money

E%rnest money m%y be c%lle' by %ny ot,ern%me but i) it is consi'ere' by t,e %rties %s %rt

o) t,e rice0 suc, *oul' be consi'ere' %se%rnest money.

>o*e+er0 e+en i) t,ere is e%rnest money0 it 'oesnot me%n t,%t t,ere is %lre%'y % er)ecte'contr%ct o) s%le. I) it is merely % roo) o) %er)ecte' contr%ct o) s%le. E+en i) t,ere ise%rnest money $i+en0 i) t,e contr%ctin$ %rties,%+e not %$ree' %s to t,e tot%l %mount o) t,eurc,%se rice0 t,en t,ere *ill ne+er be %contr%ct o) s%le.

E+en t,ou$, t,ey ,%+e %$ree' %s to t,e tot%l%mount o) t,e rice %n' %n e%rnest money is$i+en0 %n' *ere %ble to %$ree %s to t,e tot%l%mount o) t,e rice0 but not %s to t,e obect t,ent,ere *ill be no er)ecte' contr%ct o) s%le.E%rnest money is not t,e only re3uirement in %er)ecte' contr%ct o) s%le.here is a perfected sale by the meremeeting of the minds, does it mean that it isalready enforceable$

Not t,%t uon er)ection t,e %rties to suc,contr%ct0 t,e %rties %lre%'y ,%+e t,e ri$,t tocomel t,e %rties to er)orm t,eir resecti+eobl i$%tions . ;ut er )ec tion is subec t to)orm%lities re3uire' by l%* li8e t,e st%tute o))r%u's.

7,ere m%y be % meetin$ o) t,e min's0 but t,es%me s,%ll be unen)orce%ble.

As % rule0 t,ere is no %ctu%l )orm %s ro+i'e' inArt. 154 t,%t % contr%ct o) s%le m%y be in*ritin$0 or by *or' o) mout,0 or %rtly in *ritin$%n' %rtly by *or' o) mout, 0 or m%y be in)erre')rom t,e con'uct o) t,e %rties )or %s lon$ %s t,eessenti%l re3uisites %re resent. ;ut ,o*e+er0*,en t,e l%* itsel) ro+i'es )or % %rticul%r )orm

t,en t,e s%me must be comlie' *it, in or'er)or it to be en)orce%ble0 suc, %s t,e st%tute o))r%u's %n' t,e c%ttle re$istr%tion 'ecree.

%tat"te of 7ra"ds

In s%le o) % %rcel o) l%n' *,ic, is not in *ritin$0is % +%li' contr%ct but unen)orce%ble.

I) t,e obect o) t,e s%le is % mo+%ble0 t,e +%lueo) t,e rice %$ree' uon must be consi'ere'%n' not t,e %ctu%l +%lue o) t,e rice must be

consi'ere'. I) t,e rice is %t le%st 6!! esos %n't,e s%me is not in *ritin$0 t,e s%me isunen)orce%ble. E+en i) t,e rice is less t,%n 6!!esos t,e s%me must be in *ritin$ *,en t,es%me is not to be er)orme' *it,in 1 ye%r.

In t,e c%se o) %re'es +s. A3uino0 %re'es ,ere*%s % rosecti+e buyer %n' A3uino *%s t,eo*ner o) % %rcel o) l%n'. 7,e ne$oti%tion *%sm%'e t,rou$, letters %n' tele$r%ms. Ultim%telyt,e o*ner m%'e % letter si$ne' by ,im to%re'es st%tin$ t,%t ,e %n' ,is *i)e %lre%'y%$ree' to sell t,e l%n' %t t,e seci)ic rice.>o*e+er0 t,e e2ecution o) t,e s%le s,%ll bem%'e uon %rri+%l o) %re'es in %l%*%n0 %st,e l%tter is )rom Nort,ern Lu?on. W,en %re'es%rri+e' in %l%*%n0 t,e seller s%i' t,%t ,e *%sno lon$er intereste' in sellin$ t,e l%n'. >ence0%re'es )ile' %n %ction to comel A3uino to sellt,e l%n'. A3uinoHs 'e)ense on t,e ot,er ,%n'*%s ,e St%tute o) :r%u's0 since t,ere *%s no'ee' o) s%le0 t,ere *%s no er)ecte' contr%ct o)s%le. 7,e SC rule' t,%t t,e contr%ct *%s no

lon$er co+ere' by t,e st%tute o) )r%u's sincet,ere *%s %lre%'y % letter. Un'er t,e l%*0seci)ic%lly un'er Art. 15!4 e+en i) t,e contr%ct'oes not comly *it, t,e st%tute o) )r%u's0 t,es%me s,%ll be en)orce%ble %n' no lon$erco+ere' un'er t,e oer%tion o) t,e st%tute o))r%u's *,en t,e s%me *%s m%'e t,rou$, somenote or memor%n'um0 be in *ritin$0 %n'subscribe' by t,e %rty c,%r$e'0 or by ,is


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11

%$ent. >ence0 A3uino c%n be comelle' toe2ecute % )in%l 'ee' o) s%le.

3n a deed of sale there can be 1++s obobligations of the endors beca"se of thestip"lation. here are only few obligationsimposed by law to the endors, and these

are9

1. 7,e obli$%tion to tr%ns)er o*ners,i. 7,e obli$%tion to 'eli+er4. 7,e obli$%tion to *%rr%nt t,e t,in$5. 7,e obli$%tion to t%8e c%re o) t,e t,in$ sol'

*it, t,e 'ili$ence o) % $oo' )%t,er o) t,e)%mily )rom t,e time o) er)ection uto t,etime o) 'eli+ery.

6. 7,e obli$%tions to %y t,e c%it%l $%ins t%29. 7,e obli$%tions to 'eli+er t,e )ruits

bligations to delier the fr"its

A sale of a mango plantation between A andB, A agreed to delier to B the fr"its onlyafter 0 months from the perfection of thesale. &espite the arrial of the period, theseller too him 1 month to delier the fr"itsto the b"yer. A howeer, sold the fr"its to athird person : in good faith. Can B recoerthe fr"its from :$ #hat are the remedies ofthe b"yer as against the seller$

Un'er t,e l%* un'er Art. 164o*e+er0 ,e s,%ll %c3uire no re%l ri$,t o+er ituntil t,e s%me ,%s been 'eli+ere' to ,im.

:rom t,e )ore$oin$ t,ere)ore t,e +en'or %ctu%lly,%s ri$,ts to t,e )ruits but not )rom t,e time o)er)ection. ; is only entitle' to t,e )ruits o) t,et,in$ )rom t,e en' o) t,e 9 mont, erio' b%se

on t,eir %$reement bec%use until suc, timet,ere is no obli$%tion to 'eli+er *,ic, %rise.

Secon'ly0 t,e buyer c%nnot comel t,e buyer torecei+e t,e )ruits bec%use ,e s,%ll not %c3uirere%l ri$,ts o+er suc, )ruits until t,e 'eli+ery o)t,e t,in$. 7,e buyerHs reme'y is $oin$ %)ter t,e

seller.

bligation to tae care of the thing

7,e remise in t,is 8in' o) obli$%tion o) t,eseller is % 'etermin%te t,in$. I) t,e t,in$ sol' is %$eneric t,in$0 t,ere is not,in$ to be t%8en c%reo)0 it *ill become 'etermin%te only uon 'eli+ery.

One scen%rio *,ere t,e seller 'oes not ,%+e t,eobli$%tion to t%8e c%re o) t,e t,in$ )rom t,e timeo) er)ection0 *,en t,e buyer %lre%'y *%s in

ossession o) t,e t,in$ %t t,e time o) er)ection.

bligation to pay epenses or capital gainsta

7,rou$, stiul%tion0 t,e %rties c%n %$ree %s to*,o is $oin$ to %y t,e t%2.

'ay a person sell something which does notbelong to him$ (Bar ;"estion)

Fes. O*ners,i o+er % t,in$ is not % re3uisite inor'er )or % s%le to become +%li'. ;ut i) t,e seller'oes not o*n t,e t,in$ ,e m%y ,%+e % roblemi n e r ) o r m i n $ , i s o b l i $ % t i o n t ot r % n s ) e r o*ners,i. 7,e roblem %ctu%lly is*,et,er or not t,e buyer %c3uire o*ners,i o+ert,e t,in$ sol' by t,e erson sellin$ *,o 'oesnot o*n t,e t,in$. 7,us0 only t,ose ersons*,o ,%+e t,e ri$,t to sell c%n tr%ns)ero*ners,i.

7,e o*ner or e+en i) not t,e o*ner % erson ,%s

been $i+en %ut,ority by t,e o*ner0 t,ere)ore ,e*ill ,%+e t,e ri$,t to sell0 or t,e l%* %ut,ori?es %erson t,e o*er to sell (%rt. 16!6 st%tutoryo*er to sell# (e.$. t,e not%ry ublic0 t,ele'$ee un'er le'$e0 un'er t,e mort$%$e l%*t,e li3ui'%tors ,%+e %ut,ority to sell0 t,e$u%r'i%n0 recei+ers etc#0 t,ose *,o ,%+e t,e%ut,ority o) t,e court (s,eri)) in %n e2ecutions%le or )oreclosure s%le#.


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'ay the b"yer act"ally ac!"ire ownershipoer the thing sold if the seller has no rightto sell$

Un'er Art. 16!6 t,e buyer 'oes not %c3uirebetter title t,%n *,%t t,e seller ,%'. I) t,e selleris neit,er t,e o*ner or 'oes not ,%+e %ut,ority

to sell0 t,e buyer %c3uires no better title t,%n*,%t t,e seller ,%'. As %n e2cetion0 t,e buyerc%n %c3uire better title t,%n *,%t t,e seller ,%'0e+en i) t,e seller is not t,e o*ner or 'oes not,%+e t,e ri$,t to sell0 *,en/

%. by estoel in %it - by t,e rincile o)estoel % erson *ill be reclu'e' )rom'enyin$ t,%t % erson ,%s %ut,ority to sell byt,e o*ners %cts or reresent%tions. 7,isestoel is ot,er *ise 8no*n %s estoel in%it (e3uit%ble 8in' o) estoel#.

%. estoel by 'ee' (tec,nic%l estoel#-Art.1545. W,en % erson *,o is not t,e o*ner o)% t,in$ sells or %lien%tes %n' 'eli+ers it0 %n'l%ter t,e seller or $r%ntor %c3uires titlet,ereto0 suc, title %sses by oer%tion o) l%*to t,e buyer or $r%ntee.

%. Estoel by recor' (tec,nic%l estoel#-

%. A s%le by %n %%rent o*ner -

%. urc,%ses )rom % merc,%nt store

A and B are coo*e+er0 un'er Art. 1545 'oes not %lybec%use t,e l%* re3uires t,e 'eli+ery o) t,e%rcel o) l%n' to t,e buyer0 %n' un'er t,e)%cts %rt. 1545 *oul' not %ly bec%use 1. t,ere*%s no s,o*in$ t,%t t,ere *%s 'eli+eryJ%yment%lre%'y 'ue to t,e +erb%l n%ture o) t,e s%le,ence unen)orce%ble. >ence it coul' not be s%i'

t,%t by oer%tion o) l%*0 F li8e*ise %c3uire'o*ners,i by estoel by 'ee'.

%ale by the nephew of the owner of a parcelof land. %ince the nephew co"ld not delierthe land to the b"yer, the b"yer filed acomplaint for estafa. 3n this criminal case, for

the acc"sed to be ac!"itted, he ased his"ncle to testify that he act"ally had thea"thority to sell. #hen the "ncle testified inco"rt, the nephew was ac!"itted beca"seafter all, he had the a"thority to sell. After theac!"ittal of the nephew and the b"yer demanded from the "ncle for the deliery,the "ncle ref"sed for in reality he said thathe did not a"thori>ed his nephew. %o when aciil case was filed to compel the "ncle todelier and transfer ownership oer thething, will that action prosper$

Fes0 bec%use t,e o*ner c%nnot be %llo*e' no*t,%t ,is ne,e* *%s not %ut,ori?e' *,en ,etesti)ie' in court t,%t ,e $%+e suc, %ut,ority.7,is is consi'ere' %s estoel by recor' %n'%lso consi'ere' tec,nic%l estoel.

&isc"ss ?%ale by an apparent owner@$

As ro+i'e' by )%ctors %ct0 recor'in$ l%*s0 %n'ot,er l%*s *,ic, en%ble t,e %%rent o*ner o)$oo's to 'isose o) t,em %s i) ,e *ere t,e re%lo*ner.

nder the 7actors (an old name for agent)Act, een if the agent has no right to sell aspecific thing a third person may act"allyac!"ire ownership beca"se he can only relyon the power of attorney as written. 3f foreample an agent thro"gh a special power ofattorney was gien the power to p"rchase acar, howeer in the erbal instr"ction theagent was a"thori>ed to sell that car only to

o n e o f t h e m e m b e r s o f a c e r ta i n organi>ation. B"t the agent sold the carto a person other than to a member of theorgani>ation as directed by the principal.#o"ld that b"yer ac!"ire ownership een ifthe agent has no right to sell to that b"yer$

Fes. Un'er Art 1"!! so )%r %s t,ir' ersons %reconcerne'0 t,ey only ,%+e to rely on t,e SA %s*ritten e+en i) t,e seller %$ent *%s not


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14

%ut,ori?e' %s instructe'0 t,e buyer %c3uireo*ners,i o+er t,e t,in$ subect o) t,e s%le.

he elder brother 'ig"el 'apalo donatedhalf of his land to his yo"nger brotherbeca"se the latter was abo"t to get married.3nstead of the yo"nger brother ased his

elder brother to sign a deed of donation, heased the latter to sign a deed of sale notonly half of the land b"t the entire parcel ofland. /e was therefore able to register theproperty in his name. After 1+ years,howeer, he sold this entire parcel of land tothe arcisos. bio"sly, the yo"nger brotheris not a"thori>ed to sell with respect to theother half, beca"se what was only gien isonly half of the land. B"t the arcisosclaimed that they bo"ght the land on anapparent owner beca"se the entire property

was registered in the ame of the seller. &idthe arcisos ac!"ired ownership beca"sethey bo"ght the entire property from anapparent owner$

Not necess%rily0 bec%use t,e seller must notonly be %n %%rent o*ner but buyer must %lsobe % buyer in $oo' )%it,. 7,e buyers in t,is c%seis not in $oo' )%it, bec%use be)ore t,ey bou$,tt,e l%n'0 t,ey *ent )irst to t,e ,ouse o) i$uel%$%lo to in3uire on *,et,er ,e (youn$erbrot,er# *oul' %llo* ,is youn$er brot,er to sellt,%t %rcel o) l%n'. 7,ere)ore t,ey %re in b%')%it, bec%use t,ey 8ne* %n' bec%use i$uel%lso ,%' t,e ri$,t to t,e ,%l) ortion o) t,e l%n'*,en t,ey bou$,t t,e entire %rcel o) l%n'.7,ere)ore t,ey 'i' not %c3uire o*ners,i o+ert,e entire %rcel o) l%n' (%%lo +s. %%lo#

he owner of a parcel of land coered by aC or C, mortgaged a parcel of land tothe creditor and deliered the C or C.his mortgagee forged the signat"re of the

owner in a deed of sale. h"s, he was able toregister the property in his name with thatforged deed. hereafter, the mortgagee whowas a b"yer in the forged deed, sold thatland to a third person who had no nowledgeof the transaction between the mortgagor Aand mortgagee B. &id the mortgageeac!"ired ownership$ &id the b"yer ac!"iredthe property oer the parcel of land$ #hencan a b"yer said to be in good faith$

7,e mort$%$ee 'i' not %c3uire o*ners,i by+irtue o) % 'ee' o) s%le. A )or$e' 'ee' is % +oi'instrument %n' c%nnot be t,e source o) % +%li'title to t,e buyer. 7,is )or$e' 'ee' ,o*e+er0 c%nbe t,e root o) % +%li' title un'er t,e mirrorrincile *,en t,e buyer bou$,t it )rom t,e

mort$%$ee in *,ose n%me it *%s re$istere'0%n' relie' on t,e 7C70 t,en i) ,e %c3uire' t,eroerty in $oo' )%it,0 t,en ,e ,%' %c3uire'o*ners,i o+er t,e %rcel o) l%n' un'er Art.16!6 in rel%tion to D 16"0 *,en t,e buyerbou$,t % %rcel o) l%n' relyin$ on t,e 7C7 %lone%n' buyin$ it in $oo' )%it, t,en ,e *ill ,%+e %better ri$,t t,%n t,e o*ner.

;y t,e mere )%ct t,%t t,e buyer 'i' not 8no* t,ee2ecution o) t,e time o) t,e 'ee' necess%rilyme%n ,e is %lre%'y % buyer in $oo' )%it,= Not

necess%rily bec%use t,e l%* re3uires t,%t ,e,%' )ully %i' *it,out 8no*le'$e o) 'e)ect in t,etitle o) t,e seller. >e m%y ,%+e %c3uire'8no*le'$e %)ter t,e e2ecution o) t,e 'ee' o)s%le but be)ore %yment0 ,e c%n no lon$er beconsi'ere' % buyer in $oo' )%it,.

he owner of a parcel of land entr"sted thesecretary to tae hold of the C only forsafeeeping. h"s the secretary forged thesignat"re of his boss in a deed of sale. h"she was able to register the property in hisname, and sold this parcel of land to a thirdperson, and s"ch person is considered to bei n g o o d f a i t h , t h e n h e h a s a c! " i r e d ownership oer the thing sold eenif the seller had nor right to sell. his isbeca"se the b"yer bo"ght it from anapparent owner who disposed of the thing asif it was really owned by him.

nder the ew Ciil Code on negotiabledoc"ments of title, if goods are coered by a

negotiable doc"ment of title and there was an e g o t i a t i o n o f t h i s d o c " m e n ta s a conse!"ence of a sale, if the b"yerbo"ght the good in good faith and for al"e,he will be protected "nder the law, andac!"ire ownership oer the goods een if theseller do not hae the right to sell. he sellermay hae ac!"ired oer the doc"ment of titlethro"gh iolence, b"t if it is negotiabledoc"ment of title especially if it is a bearer


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instr"ment, then the b"yer may ac!"ireownership oer the goods een if the sellerhad no right to sell.

% " n b r o t h e r s w a s t h e o w n e ro f t h e refrigerator (they are engaged inthe b"siness of selling refrigerators) and

sold it to Dope> in an installment basis.As stip"lated %"n brothers reseredownership oer the refrigerator "ntil f"llpayment. he b"yer Dope> paid only E++ andthe remaining balance to be paid on amonthly basis. /oweer, Dope> sold therefrigerator to Felasco the ery net day inhis store to Co Cang Chi". %"n brothers afterlearning of the s a l e , fi l e d a n a c t i o nt o r e c o e r t h e refrigerator. #o"ld theaction prosper$ &id Co Cang Chi" ac!"iredownership oer the refrigerator$ Can %"n

brothers recoer the refrigerator byreimb"rsing the price paid by Co Cang Chi"$

As to Vel%sco0 t,e rule un'er Art. 16!6 is t,%tt,e buyer c%nnot %c3uire better title t,%n *,%tt,e seller ,%'.

As to Co C%n$ C,iu0 ,e %c3uire' o*ners,io+er t,e re)ri$er%tor bec%use ,e bou$,t it in %merc,%nt store. Un'er 16!6 l%st %r%$r%,0 i)t,e o*ner bou$,t t,e t,in$ in $oo' )%it, )rom %merc,%nt store ,e %c3uires o*ners,i o+er t,et,in$. Note0 ,e must ,%+e no 8no*le'$e o) t,e'e)ect in t,e title o) t,e $oo's.

As to t,e issue on *,et,er Sun ;rot,ers reco+ert,e re)ri$er%tor )rom Co C%n$ C,iu byreimbursin$ t,e rice %i'. 7,e SC ,el' t,%tSun brot,ers c%nnot. 7,is is bec%use un'er Art16!60 t,e o*ners,i o) t,e buyer *,o bou$,tt,%t t,in$ in t,e merc,%nt store %n' in $oo' )%it,%n' )or +%lue0 is %bsolute in c,%r%cter.

Art. 66" 'oes not %ly to t,is scrn%rio bec%useSun ;ros. *%s not unl%*)ully 'eri+e' nor is t,et,in$ lost. I) t,e t,in$ *%s lost or t,e o*ner isunl%*)ully 'eri+e'0 suc, o*ner c%n reco+er t,es%me e+en i) it *%s sol t,rou$, % ublic s%le orin % merc,%nt store but suc, o*ner mustreimburse t,e erson *,o bou$,t in in $oo')%it, %n' )or +%lue. (Sun brot,ers %n' com%ny+s. ose Vel%sco %n' Co C%n$ C,u#

Art. 559. The possession of movable property acquired in

good faith is equivalent to a title. Nevertheless, one who

has lost any movable or has been unlawfully deprived

thereof may recover it from the person in possession of the

same.

If the possessor of a movable lost or which the owner has

been unlawfully deprived, has acquired it in good faith at a

public sale, the owner cannot obtain its return withoutreimbursing the price paid therefor. !"!a#

ne painting owned by A was stolen fromher. Dater on she noticed that the paintingwas in the room of B, and ased how heac!"ired the painting, he said that heac!"ired the same in a gallery a"ction. Canthe owner of the painting from whom thepainting was stolen recoer the same fromB$

A $%llery %uction is not % ublic s%le. Since it isnot % ublic s%le0 t,e o*ner c%n reco+er t,eroerty e+en *it,out reimbursement.

I) it is % ublic s%le0 t,e o*ner c%n reco+er t,e%intin$ ro+i'e' t,e o*ner reimburses t,ebuyer o) t,e rice %i' in t,%t s%le.

A diamond ring was robbed in a b"s, andthis same diamond ring has become theob-ect of a p"blic sale of a pawnshop. Canthe owner recoer the ring from the b"yer in

the p"blic sale initiated by the pawnshop$

Fes0 i) t,e buyer is in $oo' )%it,0 %n' so lon$ t,eo*ner is *illin$ to reimburse t,e buyer o) t,erice %i' in t,%t s%le0 ,e m%y reco+er t,es%me.

Can the owner recoer a thing from theb"yer who bo"ght in a merchant store$

No. 7,e o*ner c%nnot reco+er t,e t,in$ )rom t,ebuyer e+en i) t,e s%me *%s lost or t,e o*ner

*%s unl%*)ully 'eri+e' t,ereo)0 %n' e+en i) t,eo*ner *is,es to reimburse t,e buyer )or t,erice %i'. As % m%tter o) ri$,t0 t,e buyer in$oo' )%it, %c3uires %bsolute title o+er t,e t,in$.

/ow is transfer of ownership oer a thingeffected$

It is e))ecte' by 'eli+ery0 %ctu%l or constructi+e.


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2eryt ime there is deliery, the b"yerac!"ires ownership "pon deliery$

Not necess%rily. 7,is is not %n %bsolute t,%tuon 'eli+ery %s % conse3uence o) s%le0 t,ere istr%ns)er o) o*ners,i. 7,ere %re 8in's o) s%le

t,%t 'esite 'eli+ery0 t,e buyer 'oes not %c3uireo*ners,i. E2%mles o) *,ic, %re/

%. Con'ition%l s%le - >ere o*ners,i is reser+e'by t,e seller0 suc, t,%t 'esite 'eli+eryo*ners,i 'oes not %ss to t,e buyer. 7,ebuyer 'oes not %c3uire o*ners,i uon'eli+ery but r%t,er uon t,e ,%enin$ o) t,econ'ition (usu%lly uon )ull %yment o) t,erice#.

%. A s%le on 7ri%l0 s%le on s%tis)%ction or s%le on

%ro+%l - Uon 'eli+ery0 e+en i) t,ere is no%ctu%l 'eli+ery0 t,ere is no tr%ns)er o) o*ners,i %t t,e time o) 'eli+ery. 7,e buyer*ill %c3uire o*ners,i o+er t,e t,in$ sol'*,en t,e buyer si$ni)ies ,is %ccet%nce or%ro+%l o+er t,e t,in$ sol'. E+en I) ,e 'oesnot si$ni)y ,is %ro+%l o*ners,i m%y still%ss to ,im i)/ 1# t,ere is % erio' %$ree'uon by t,e %rties *it, *,ic, to 'eci'e %n'uon l%se o) t,e erio' ,e ,%' imlie'ly%ccete' or # e+en be)ore t,e l%se o) %erio'0 ,e m%y be consi'ere' %s to ,%+eimlie'ly %ccete' i) ,e 'i' %n %ct *,erein ,e*oul' be consi'ere' to ,%+e %'ote' t,et r % n s % c t i o n t , e n o * n e r s , i *o u l ' b e consi'ere' to ,%+e %ss on t,ebuyer (e.$. e+en i) ,e ,%s 1! '%ys *it,in*,ic, to 'eci'e0 %)ter t*o '%ys ,o*e+er )rom'eli+ery0 ,e sol' t,e c%r to %not,er# 4# t,erem%y be no erio' t,e buyer is 'eeme' to,%+e %ccete' %)ter t,e l%se o) %re%son%ble time. W,%t is r e % s o n % b l et i m e * i l l ' e e n ' o n t , e

circumst%nces surroun'in$ t,e s%le0 t,eurose o) t,e s%le0 or t,e n%ture o) t,e t,in$sol'.

3n %ale or et"rn, ownership passes to theb"yer "pon deliery$

In t,is 8in' o) s%le o*ners,i %sses to t,ebuyer uon 'eli+ery. >o*e+er in t,is 8in' o)s%le0 t,e buyer is $i+en t,e ri$,t to reimburset,e title b%c8 to t,e seller.

A c%r *%s sol' %t 16!0!!!0


16/37

19

o) t,e rice o) t,e buyer0 t,en by l%*0 ris8 o) losss,%ll only ert%in to t,e buyer. 7,is is 8no*n %s% security title. 7,ere)ore0 e+en i) t,e buyer 'i'not %c3uire title uon 'eli+ery0 ,e be%rs t,e loss.

#heneer there is delay in the deliery of thething sold, who bears the loss$

It 'een's *,o m%y be %t )%ult )or t,e 'el%y int,e 'eli+ery. It m%y be t,e seller or t,e buyer.3f for eample, there is a stip"lation that theb"yer m"st retriee the goods on thewareho"se of the seller on a specific date.n that date agreed "pon, the seller demanded the b"yer to get the goods at thewareho"se. &espite s"ch, the b"yer failed too b t a i n t h e g o o d s . h e n e t da y, t h e wareho"se was b"rned. #ho thenshall bear the loss$

>ere t,e seller *%s still t,e o*ner0 ,o*e+er0 t,ebuyer *%s %lre%'y in 'el%y in retrie+in$ t,e$oo's0 ,ence0 un'er Art. 16!50 t,e buyer be%rst,e loss0 %s %n e2cetion to t,e res erit 'ominorule.

3f the seller is the one at fa"lt, who bears theloss$

7,e remise ,ere0 t,e o*ners,i s,oul' ,%+ebeen %sse' to t,e buyer but t,e $oo's %re still*it, t,e seller (t,is coul' ,%en by constructi+e'eli+ery but ,ysic%l ossession is still *it, t,eseller#0 e+en so0 t,e seller s,%ll be%r t,e lossbec%use ,e *%s t,e one %t )%ult )or t,e 'el%y int,e 'eli+ery o) t,e t,in$ sol' 'esite 'em%n' byt,e buyer.

An owner of a registered land sold the landto B. B did not register the sale. A few daysthereafter, A sold again the same parcel ofland to C, who this time registered the sale.

#ho between B and C hae a better right tothis parcel of land$

It 'een's on *,et,er or not C re$ister t,e s%lein $oo' )%it,.

Note/ In Art. 1655 ert%inin$ to 'ouble s%les0 %sto *,ic, rule to %ly *oul' 'een' on t,en%ture o) t,e t,in$ sol' *,et,er it is immo+%bleor % % mo+%ble. I) it is % s%le o) % mo+%ble.

I) t,e t,in$ sol' is % mo+%ble0 t,e )irst erson*,o too8 ossession o+er t,e t,in$ s,%ll ,%+e %better ri$,t.

I) t,e t,in$ sol' is %n immo+%ble0 t,e buyer *,o)irst re$ister in $oo' )%it, *ill ,%+e t,e better

ri$,t0 i) t,ere *%s no re$istr%tion0 t,en t,eerson *,o )irst too8 ossession0 i) no one is inossession t,en it *ill be t,e buyer *it, t,eol'est title in $oo' )%it,. Koo' )%it, ,ere 'oesnot ert%in to 8no*le'$e o) % 'e)ect o) title o)t,e secon' buyer since ,e is t,e )irst buyer0$oo' )%it, ,ere me%ns ,e ,%s no 8no*le'$e o)t,e 'e)ect on t,e title o) t,e seller.

3f a thing is sold to two or more persons,what will be the effect of9 1) the first b"yerwas the first to register with nowledge of

the second saleH *) the second b"yer was thefirst to register with nowledge of the firstsale. #ho will hae a better right in these toscenarios$

1. In t,e )irst scen%rio0 ,is 8no*le'$e o) t,esecon' s%le 'oes not m%8e ,im % re$istr%nt inb%' )%it,. Bno*le'$e s,oul' ert%in to one*,ic, is rior s%le in or'er to m%8e one %re$istr%nt in b%' )%it,. >ence0 ,ere ,e ,%s %better ri$,t.

. As to t,e secon' scen%rio0 ,e is consi'ere' %re$istr%nt in b%' )%it, bec%use o) ,is rior8no*le'$e o) % )ormer s%le. >ence0 ,e *illnot ,%+e % better ri$,t.

3f a person bo"ght the thing witho"tnowledge of the prior sale and registeredthe same, wo"ld that mean he is a registrantin good faith$

Not necess%rily. 7,is is bec%use ,e m%y ,%+e

%c3uire' 8no*le'$e rior to t,e re$istr%tion. but%)ter buyin$. W,%t is re3uire' by l%* is not %buyer in $oo' )%it,0 but % re$istr%nt in $oo' )%it,.

;%utist% +s. Sioson

he owner sold a registered parcel of land toB who did not register, neither did he toophysical possession. After the sale theyeec"ted a lease agreement in which the


17/37

1ed by law, what are these$

1. Actu%l - %teri%l 'eli+ery or re%l 'eli+ery

7o ,%+e % +%li' %ctu%l 'eli+ery t,e t,in$ must be subect to ossessio n %n'control o) t,e +en'ee.

I) t,e t,in$ sol' *%s 'eli+ere' to % t,ir' erson0 t,ere m%y still be %ctu%l

' e l i + e r y * , e n s u c , t , i r ' e r s on , % s %ut,ority to recei+e )rom t,e +en'ee.As suc,

,e becomes %n %$ent o) t,e +en'ee0t,us0 t,ere is %ctu%l 'eli+ery.

. Constructi+e 'eli+ery

%. ;y t,e e2ecution o) % ublic instrument (i) t,econtr%ry intention 'oes not %e%r on t,e'ocument# by t,e mere e2ecution o) t,e


18/37

1

ublic instrument0 t,%t is %lre%'y e3ui+%lent to'eli+ery. >ence0 o*ners,i %sses to t,ebuyer.

%. Deli+ery o) Beys (7r%'icion Symbolic%#

%. ;y mere consent or %$reement o) t,e %rties

ro+i'e' %t t,e time o) t,e s%le ossession o)t,e $oo's c%nnot be tr%ns)erre' to t,e buyer(e.$. *,en t,e t,in$ *%s t,e subect m%tter o)t,e le%se0 bec%use be)ore e2ir%tion o) t,ele%se t,e t,in$ c%nnot be tr%ns)erre' to t,ebuyer#.

%. 7r%'icion ;re+i %nu - >ere0 t,e buyer *%s%lre%'y in ossession t,e roerty0 but t,ereis % c,%n$e %s to t,e st%tus o) ossessionsuc, %s t,%t o) % lessee0 'eosit%ry or %$entto ossession in t,e concet o) %n o*ner.

%. 7r%'icion Constitutum ossesorium - >eret,e seller *oul' still continue to be inossession o) t,e t,in$ %)ter t,e s%le but nolon$er in t,e concet o) %n o*ner but in%not,er c%%city.

he original owner here, : I = whoseproperties are fit"res in a salon, while J I& was a -"dgment creditor of : I =. Beca"seof -"dgment rendered by a co"rt in faor ofJ, the sheriff leied "pon the properties of :and = which was still in the latters physicalp o s s e s s i o n . h i s e e c " t i o n sa l e w a s !"estioned by A I B on thepremise that these goods were already soldto them prior to the ley. /ence, if thesegoods were sold to them prior to the ley,ownership already passed to A I B, andas s"ch there is nothing more to beleied "pon. B"t the d e b t o r w a s e ry m " c h i n p h y s i c a l possession.'ay A I B be considered as owners of

the land despite them not being in act"alphysical possession of the good sold, andmae them to hae a better right oer the

-"dgment creditors oer an eec"tion sale$

E+en i) t,ere *%s no ,ysic%l ossession %n't,ere *%s no %ctu%l 'eli+ery0 t,ere m%y be %constructi+e 'eli+ery by t,e e2ecution o) % ublicinstrument. Un)ortun%tely in t,is c%se0 t,e 'ee'o) s%le *%s merely in % ri+%te instrument.

In or'er )or t,e o*ners,i to %ss0 it ,%' to be in% ublic instrument (constructi+e 'eli+ery#.

3f for eample the seller and the b"yerp"rs"ant to their agreement deliered thegoods to a common carrier, "pon deliery of

the goods to a common carrier, wo"ld thatres"lt in transfer of ownership immediately$

I) 'eli+ery to t,e common c%rrier is 'eli+ery tot,e buyer0 t,en o*ners,i %sses to t,e buyeruon 'eli+ery to t,e common c%rrier. Suc, is %$ener%l rule0 t,e e2cetions %re/

1. i) t,ere *%s stiul%tion t,%t o*ners,i *ill not%ss to t,e buyer until )ull %yment.

. E+en i) t,e 'ee' o) s%le 'oes not ro+i'e )or

suc, stiul%tion0 t,e seller m%y ,%+e obt%ine'% bill o) l%'in$ *,ic, ro+i'es t,%t t,e $oo's%re 'eli+er%ble to t,e seller ,imsel) or ,is%$ent. 7,us 'esite 'eli+ery o) t,e $oo's tot,e s,i0 t,ere is no tr%ns)er o) o*ners,ibec%use it *oul' still be t,e seller *,o *oul',%+e t,e ri$,t to obt%in t,e $oo's )rom t,ecommon c%rrier.

Bin' s o ) Deli+er y o ) Incorore% l roertie s(u%si 7 r%'icion#

#hat are the three modes of delieries as torights$

1. E2ecution o) % ublic instrument ()rom t,e'eli+ery o) certi)ic%tes0 o*ners,i %sses#

. Use by t,e +en'ee o) ,is ri$,ts *it, t,e+en'ors consent (e.$. in s%les o) s,%res o)stoc80 t,e +en'ee m%y not %l*%ys necess%rily,%+e t,e ri$,t to e2ercise t,e stoc8,ol'ers

ri$,ts o+er t,e s,%re0 t,e buyer c%n onlye2ercise suc, ri$,t *it, t,e consent o) t,e+en'or#.

3n a sale of 1+++ pairs of shoes, as agreed"pon by the parties. he seller deliered1*++ pairs of shoes instead of only 1+++.'ay the b"yer ref"sed to accept eerything$


19/37

1"

Un'er t,e l%*0 ,e *oul' only ,%+e t,e ri$,t toreect t,e e2cess0 but ,e c%n be comelle' to%ccet t,e 1!!!.

Ass"ming if what was agreed "pon was1+++, and the seller deliered only 8++, canb"yer be compelled to receie the 8++$

No0 bec%use un'er t,e l%*0 %rti%l er)orm%nceis non er)orm%nce. As % rule0 % cre'itor c%nnot%ccet %rti%l er)orm%nce o) t,e obli$%tion0e2cet *,en t,ere is % stiul%tion t,%t %rti%l'eli+eries is %llo*e'0 or *,en t,e obli$%tionert%ins to one *,ic, is %rtly li3ui'%te' %n'%rtly unli3ui'%te'0 obli$%tion to 'i))erent term%n' con'itions.

he b"yer accepted only 8++ at 1+++ per pairof shoes, it so happened the seller can no

longer delier the balance of *++, since whatwas preio"sly stip"lated was 1+++ pair ofs h o e s . / o w m " c h c a n t h e b " ye r b e compelled to pay$

It 'een's on *,et,er t,e buyer *%s %*%re t,%tt,e seller coul' no lon$er t,e b%l%nce or *,en,e %ccete' ,e *%s not %*%re t,%t t,e sellercoul' no lon$er 'eli+er t,e b%l%nce.I) ,e *%s %*%re t,%t t,e seller c%n no lon$er'eli+er t,e b%l%nce0 t,en ,e c%n be comelle' to%y %t t,e contr%ct r%te. In t,is c%se0 !!0!!!.

I) ,e ,%' no 8no*le'$e or %*%reness t,%t t,eseller c%n no lon$er 'eli+er t,e b%l%nce *,en ,e%ccete'0 t,en un'er t,e l%* t,e buyer c%n onlybe comelle' to %y t,e )%ir +%lue o) t,is t,in$.

An obligation to delier 1+++ caans of aspecific rice (milagrosa). /oweer, the sellerdeliered 1*++ caans of both milagrosa andcombodian rice. 'ay the b"yer hae the rightto re-ect eerything$

Fes ,e *oul' ,%+e t,e ri$,t to reect e+eryt,in$i) t,e $oo's %re 'eeme' in'i+isible. e%nin$ ine%c, s%c8 o) rice0 c%mbo'i%n rice %n' mil%$ros%rice %re mi2e'.

>o*e+er0 i) in e%c, s%c8 it is cle%r )rom e%c,t,%t it is mil%$ros% or comb%'i%n t,en0 t,%t*oul' not be consi'ere' %s in'i+isible0 %n' ,e

c%n only be comelle' t,e %rt *,ic, ismil%$ros%0 %n' reect t,e combo'i%n rice.

%ale of a parcel of land and the price agreed"pon is 1 million at 1++ s!. m., the act"alarea deliered was only K5 s!"are meters,what are the remedies of the b"yer$

1. Seci)ic er)orm%nce i) it is ossible )or t,eseller to 'eli+er t,e b%l%nce suc, *,en t,e%'%cent l%n' is still o*ne' by t,e seller or

. roortion%l re'uction o) t,e rice is *it, %seci)ic %mount $i+en to % seci)ic me%sure.I) t,e s%le is % lum sum s%le0 t,en %ny'e)iciency in t,e %re%0 t,ere is no ri$,t toroortion%l re'uction o) t,e rice. :urt,er0e+en i) t,ere is %n incre%se in t,e %re%'eli+ere'0 t,ere *ill %lso be no %''ition%l

incre%se in t,e rice.

4. Rescission - As % rule it *ill not be % reme'yb%se on t,e )%cts. ;ec%use rescission *illonly be % reme'y i) t,e %re% l%c8in$ is moret,%n 1!G o) t,e %re% %$ree' uon. ;ut e+eni) t,e %re% l%c8in$ is not more t,%n 1!G0rescission *ill be % reme'y i) t,e buyer c%nro+e t,%t ,e *oul' not ,%+e bou$,t t,e l%n',%' ,e 8no*n t,%t it *%s less t,%n 1!! s3. m.

Note/ Rescission %n' roortion%l re'uction i)t,e roerty 'eli+ere' is o) in)erior 3u%lity. I) by%$reement t,e %rties inten' to sell % rice )iel'0but it turne' out t,%t !G o) t,e l%n' is not%ctu%lly % rice )iel' %n' c%nnot be l%nte' by%l%y. 7,e reme'y o) t,e buyer is to m%8e %roortion%l re'uction o) t,e rice i) ,e still*oul' *%nt t,e l%n' or rescission *oul' be %reme'y i) t,e %re% *,ic, is in)erior is more t,%n1!G o) t,e tot%l %re% o) t,e l%n'.

l%ce o) Deli+ery

Kener%lly0 o*ners,i %sses %t t,e l%ce o) 'eli+ery.W,ere s,oul' t,e t,in$ or $oo's be 'eli+ere'=

he seller deliered the goods to the place of b"siness

of the b"yer and the b"yer ref"sed to accept the

goods. 7rom that moment does it mean that the b"yer

is already in delay beca"se he ref"sed to accept the

goods$

It 'een's on *,et,er t,ere is % stiul%tion %s to t,e l%ce

o) 'eli+ery or not. I) t,ere *%s suc, % stiul%tion0 %n' t,e


20/37

!

l%ce %$ree' uon *%s not t,e l%ce o) business o) t,e

buyer0 o) course ,e *oul' ,%+e t,e ri$,t to re)use' to

%ccet t,e 'eli+ery o) t,e $oo's in ,is l%ce o) business.

In ot,er *or's0 *it, resect to t,e l%ce o) 'eli+ery t,e )irst

t,in$ t,%t s,oul' be consi'ere' is t,e/

1. stiul%tion

. l%ce )i2e' by us%$e or tr%'e4. l%ce o) business o) t,e seller

5. sellerHs l%ce o) resi'ence

6. I) t,e t,in$ is not in t,e l%ce o) business seller nor

buyer0 8no*n bot, to t,e %rties0 but in some ot,er

l%ce. 7,e l%ce o) 'eli+ery s,%ll be *,ere t,e t,in$ is

loc%te' %t t,e time o) er)ection o) t,e contr%ct.

l%ces )i2e' by us%$e or tr%'e

I) t,ere is no stiul%tion %s to t,e l%ce o) 'eli+ery0 t,e l%*

ro+i'es t,%t0 it *ill be t,e l%ce )i2e' by t,e us%$e or

tr%'e.

S,iin$ Arr%n$ements l%ce o) 'eli+ery

1. :.O.;. (:ree On ;o%r'# Arr%n$ement (oint o)

Destin%tion#

I) t,ere is no l%ce stiul%te' %s to t,e l%ce o) 'eli+ery %n'

t,e $oo's %re to be s,ie' on %n :O; b%sis0 t,e l%ce o)

'eli+ery s,%ll be t,e l%ce o*ners,i is 'eeme' to %ss. In

%n :O; %rr%n$ement0 t,e %rties s,oul' ,%+e %$ree' to %

seci)ic ort *,et,er it is t,e ort o) ori$in or it coul' be t,e

ort o) 'estin%tion.

In %n :O; ort o) ori$in0 t,e l%ce o) 'eli+ery s,%ll be

consi'ere' to be t,e ort o) ori$in. It *oul' be t,e ort o)

ori$in bec%use :O; me%n :ree On ;o%r'0 %n' :ree On;o%r' me%ns t,%t t,e moment t,e $oo's %rri+e' %t t,e ort

o) ori$in0 t,e seller *ill be )ree )rom %ny e2ense on

tr%nsort%tion o) t,e $oo's to t,e buyer. :rom t,e ort o)

ori$in0 it *ill be t,e buyer *,o *ill s,oul'er t,e e2enses

)or t,e tr%nsort%tion. It *oul' %e%r since t,e buyer *,o

s,oul'er t,e e2enses0 it is t,e buyer *,o is t,e o*ner o)

t,e $oo's %s it re%c,e' t,e ort o) ori$in. I) ,e is %lre%'y

t,e o*ner un'er t,is :O; %rr%n$ement t,ere)ore0 t,e l%ce

o) 'eli+ery s,%ll be t,e ort o) %nil%.

In :O; ort o) 'estin%tion %rr%n$ement0 t,e seller *oul'

,%+e to s,oul'er t,e e2enses )or t,e tr%nsort%tion o) t,e

$oo's0 uto %n' until t,e %rri+%l o) t,e $oo's %t t,e ort o)

'estin%tion. >ence0 'eli+ery %sses %t t,e ort o)'estin%tion.

. C.I.:. (costs0 insur%nce0)rei$,t# Arr%n$ement (oint o)

Ori$in#

In % CI: %rr%n$ement0 t,e l%ce o) 'eli+ery is consi'ere' to

be t,e ort o) ori$in bec%use0 t,e rice %i' by t,e buyer

*oul' %lre%'y inclu'e t,e costs0 insur%nce0 %n' )rei$,t.

7,e buyer %ys )or t,e )rei$,t0 it %e%rs t,ere)ore t,%t

o*ners,i %sses %t t,e ort o) ori$in0 ,ence0 'eli+ery is

m%'e %t t,e ort o) ori$in.

3s it possible in a C37 arrangement or in an 7B

arrangement, the place of deliery shall be the port of

destination$

7,ese 'eli+ery %rr%n$ements only m%8e rules o)

resumtion. It must $i+e *%y to t,e re%l intention o) t,e

%rties %s to t,e l%ce o) 'eli+ery0 *it,out e2ressly

stiul%tin$ %s to t,e l%ce o) 'eli+ery. 7,e intention o) t,e%rties %s to t,e l%ce o) 'eli+ery s,%ll be 'etermine' by

t,e l%ce %n' m%nner o) t,e %yment o) t,e rice. W,ere

t,e rice is %i'0 t,%t is 'etermin%ti+e o) t,e l%ce o)

'eli+ery.

Un'er Art. 160 %s to t,e l%ce o) %yment0 i) t,ere is no

l%ce %$ree' uon *,ere %yment s,oul' be m%'e0 t,e

l%ce o) %yment s,oul' be m%'e to t,e l%ce o) 'eli+ery.

In one c%se0 it *%s stiul%te' in t,e contr%ct t,%t t,e seller

c%n 'em%n' t,e %yment o) t,e rice0 uon t,e %rri+%l o)

t,e $oo's %t t,e ort o) 'estin%tion in % CI: %rr%n$ement.

7,e SC rule' t,%t t,e l%ce o) 'eli+ery is t,e ort o)

'estin%tion bec%use it is only %t t,%t ort t,%t t,e seller c%n'em%n' on t,e %yment o) t,e rice. 7,ey ,%+e %$ree' on

% CI: %rr%n$ement (ort o) 'estin%tion# )or t,e urose o)

)i2in$ o) t,e rice0 bec%use $ener%lly0 CI: me%ns ort o)

ori$in0 ,o*e+er out o) t,e rice0 it *ill be t,e ort o)

'estin%tion0 %n' %yment s,%ll inclu'e t,e cost0 t,e

insur%nce %n' t,e )rei$,t. 7,e l%ce o) 'eli+ery bein$ t,e

ort o) 'estin%tion0 o*ners,i %sses in t,e ort o)

'estin%tion. E))ecti+ely t,e )rei$,t s,%ll be s,oul'ere' by

t,e buyer0 but t,%t %mount *ill be t%8en to t,e rice )i2e'

by t,e seller.

In %not,er c%se0 t,e %rties %$ree' in %n :O;

%rr%n$ement0 but it *%s stiul%te' in t,e contr%ct t,%t t,e

seller c%n 'em%n' t,e %yment o) t,e rice by resentin$t,e bill o) l%'in$ to t,e buyer. 7,e bill o) l%'in$ c%n be

resente' %t t,e ort o) ori$in to t,e buyer bec%use % bill o)

l%'in$ c%n be t%8en )rom t,e common c%rrier %t t,e ort o)

ori$in. Desite o) %n :O; %rr%n$e0 t,e l%ce o) 'eli+ery is

t,e ort o) ori$in. :O; ort o) 'estin%tion is %rr%n$e' in t,is

c%se bec%use t,e buyer *oul' *%nt to ,%+e t,e seller to

s,oul'er %ll t,e e2enses )or t,e tr%nsort%tion o) t,e

$oo's u to t,e ort o) 'estin%tion.

Obli$%tions o) t,e Seller W %rr%nty

&oes 6hilippine law adopt the common law principle of

caeat emptor (b"yer beware)$

As % rule0 ,iliine L%* 'oes not %'ot t,e common l%*

rincile o) buyer be*%re bec%use o) t,e imlie'

*%rr%nties. E+en in t,e %bsence o) stiul%tion0 t,is

*%rr%nties %re 'eeme' %tt%c,e' to t,e contr%ct0 %n' t,e

buyer m%y ,ol' t,e seller li%ble )or bre%c, o) *%rr%nty.

>o*e+er0 it is only % $ener%l rule. 7,ere %re inst%nces

*,ere t,ere c%n be no imlie' *%rr%nty. E2%mles0 *,ere

t,ere is no imlie' *%rr%nties %re/


21/37

1

1. In s%le o) %nim%ls in )%ir (no *%rr%nty %$%inst ,i''en

'e)ects# (but *it, *%rr%nty %$%inst e+iction or title#

. ublic %uctions (no *%rr%nty %$%inst ,i''en 'e)ects# (but

*it, *%rr%nty %$%inst e+iction or title#

4. %s is *,ere is s%les (no *%rr%nty %s to t,e )itness o) t,e

t,in$0 but t,ere is still *%rr%nty %$%inst e+iction#

5. s%le o) secon' ,%n' items

#hen wo"ld and affirmation of fact or promise of a

endor be the basis in holding the seller liable for

breach of an epress warranty$

7,e l%* re3uires t,%t %n %))irm%tion o) )%ct or romise o)

t,e seller must rel%te to t,e t,in$ itsel). In ot,er *or's0 it

must rel%te to t,e c,%r%cter o) t,e t,in$0 or to t,e 3u%lity o)

t,e t,in$0 or its title.

Secon'ly0 it is re3uire' t,%t suc, %))irm%tion o) )%ct must

,%+e t,e n%tur%l ten'ency to in'uce % erson to urc,%se

t,e t,in$

7,ir'ly0 t,e buyer urc,%se t,e t,in$ relyin$ on t,e

%))irm%tion o) )%ct or romise m%'e by t,e seller.

3f the seller told the b"yer that this is the best fertili>er

in this world, wo"ld that be the basis in holding the

seller liable if it wo"ld came o"t that there are other

brands of fertili>er that are m"ch better than what was

sold to this b"yer$

7,%t c%nnot be t,e b%sis in ,ol'in$ t,e seller li%ble

bec%use0 t,%t *ill be tre%te' merely %s %n oinion.

Unless suc, oinion is m%'e by %n e2ert0 suc, st%tement

c%nnot be t,e b%sis in ,ol'in$ t,e seller li%ble un'er t,ise2ress *%rr%nty.

3n a sale of a car, the seller told the b"yer that een

only with one liter of gasoline, yo" can drie this car

for 5+ m. 3s this an epress warranty$

7,is is %n e2%mle o) %n e2ress *%rr%nty0 %n' )%ilure o)

t,e c%r to consume $%s %t 18mJ6!8m m%y ,ol' t,e seller

li%ble )or bre%c, o) ,is e2ress *%rr%nty.

&oes it mean that the word g"arantee is "sed, means

there is an epress warranty$

No. Suc, *or' i) it 'oes not $o into t,e c,%r%cter o) t,et,in$0 t,e 3u%lity o) t,e t,in$ or its title0 suc, *oul' not

ert%in to %n e2ress *%rr%nty.

3n &ecember 1K85, %alador and the %tar %emi

Cond"ctor Company, eec"ted a deed of conditional

sale wherein the former agreed to sell his *+++ s!. m.

lot in Cainta, i>al to the latter for the price of 1million,

payable 1++,+++ down. he balance 0+ days after the

s!"atters in the property hae been remoed. 3f the

s!"atters hae not been remoed after 0 mos., the

1++,+++ down payment shall be ret"rned by the endor

to the endee. %alador filed e-ectment s"its against

the s!"atters b"t despite of the decision of the Co"rt

in his faor, the s!"atters wo"ld still wo"ld not leae.

3n A"g"st 1K80, %alador offered to ret"rn the 1++,+++

down to the endee on the gro"nd that he was "nable

to remoe the s!"atters to the property. %%C ref"sed

to accept the money and demanded that %alador

eec"te a deed of absol"te sale of its property in itsfaor, in which time it will pay the balance of its price.

he al"e of the land had do"bled at that time,

%alador consigned the 1++ in co"rt and filed an

action for rescission of the deed of conditional sale,

pl"s damages. #ill the action prosper$

Un'er t,e )%cts0 S%l+%'or is not %n %$$rie+e' %rty0 ,ence

,e *ill not ,%+e %ny reme'y un'er t,e l%*. In )%ct0 ,e *%s

t,e one *,o )%ile' to e+ict t,e s3u%tters.

7,e %yment o) t,e b%l%nce %s %$ree' uon is m%'e to

'een' uon t,e remo+%l o) t,e s3u%tters *it,in 9 mos.

Cle%rly0 i) not0 imlie'ly )rom t,e )%cts0 t,%t is %n obli$%tion

o) t,e seller0 %n' suc, is t,e con'ition )or t,e %yment.Since suc, con'ition 'i' not ,%en0 *,erein t,e s3u%tters

)%ile' to )lee0 *oul' suc, con'ition )or t,e %yment o) t,e

b%l%nce *oul' not %rise.

Un'er Art. 16560 it is t,e buyer *,o is $i+en otions un'er

t,e l%*0 'ue to t,e non ,%enin$ o) t,e con'itions 'ue to

t,e )%ult o) t,e seller. 7,e otions o) t,e seller %re/ 1# Not to

rocee' *it, t,e s%le bec%use t,e con'ition 'i' not

,%en # W%i+e t,e ,%enin$ o) t,e con'ition %n'

rocee' *it, t,e s%le. In t,is c%se t,e secon' otion *%s

c,osen by t,e buyer. 4# 7re%t t,e non ,%enin$ o) t,e

con'ition %s % bre%c, o) *%rr%nty0 *,ic, c%n be t,e b%sis

o) ,ol'in$ t,e seller li%ble )or '%m%$es.

Imlie' W %rr%nties

1. W%rr%nty %$%inst e+iction

. W%rr%nty %$%inst ,i''en 'e)ects

4. W%rr%nty o) 3u%lity (W%rr%nty o) )itness )or % %rticul%r

urose#

3s warranty against hidden defects incl"de warranty of

fitness for a partic"lar p"rpose$

No bec%use0 in %n imlie' *%rr%nty o) )itness )or %

%rticul%r urose0 t,e t,in$ m%y not ,%+e %ny ,i''en

'e)ect. As to 1 million buyers t,ey *ill be )ine0 but0 %s to 1

erson %s to ,im0 it m%y not be )it )or ,is urose.

1. W%rr%nty %$%inst e+iction

#hat is incl"ded in warranty against eiction$

1. 7,%t t,e seller ,%s t,e ri$,t to sell %t t,e time o*ners,i

is to %ss %n'

. t,%t t,e buyer *ill ,%+e %n' enoy t,e le$%l %n' e%ce)ul

ossession.


22/37

'ay the b"yer hold the seller liable for breach of

warranty against eiction if the b"yer was depried of

en-oyment and peacef"l possession, een if he was

not depried of ownership$

Fes. ;ec%use t,ere c%n be % u'$ment in )%+or o) % t,ir'

erson *,o *oul' ,%+e t,e ri$,t to t,e ossession o) t,e

t,in$ but ,e is not t,e o*ner. One suc, erson is % lessee.Once t,e court consi'er % le%se contr%ct %s % +%li' %n'

bin'in$ le%se0 e+en %s %$%inst t,e buyer0 t,e buyer c%n be

'eri+e' o) t,e ossession but ,e is not 'eri+e' o)

o*ners,i. 7,us0 t,is coul' be % bre%c, o) *%rr%nty

%$%inst e+iction bec%use t,en0 ,e *oul' *%rr%nt t,%t t,e

buyer *oul' ,%+e % le$%l %n' e%ce)ul ossession o) t,e

t,in$.

#hat re!"isites proided by law in order to hold the

seller liable for breach of warranty against eiction by

the b"yer$

1. 7,ere must be % )in%l u'$ment 'eri+in$ t,e buyer o)

t,e t,in$ in *,ole or in %rt

. 7,e seller must be noti)ie' (or summone' or consi'ere'

%s %rty 'e)en'%nt#

4. 7,e re%son *,y t,e buyer *%s 'eri+e' o) t,e t,in$

must be b%se' on % ri$,t o) % t,ir' erson e2istin$ e+en

rior to t,e s%le or e+en i) suc, ri$,t o) t,e t,ir' erson

%)ter suc, s%le t,%t must be b%e' on %ct imut%ble to

t,e +en'or.

#ill a mere letter of a third person claiming a right oer

a property, which letter was receied by the b"yer, can

the b"yer hold the seller liable$

O) course not. 7,e l%* re3uires t,%t t,ere must be )in%l

u'$ment 'eri+in$ t,e buyer o) t,e t,in$ in *,ole or in

%rt.

3n case there is a -"dgment, and s"ch -"dgment was in

faor of a third person against the b"yer, is it re!"ired

for the b"yer to appeal in order to hold the seller

liable$

No suc, %e%l is re3uire' on t,e %rt o) t,e buyer. ;ut i)

t,e seller 'oes not *%nt to be li%ble0 t,en ,e s,oul'

%e%l.

A scenario where the b"yer was depried of the thingbased on a right of a third person eisting een prior to

the sale$

One e2%mle is in 'ouble s%les *,ere t,e secon' buyer

*%s 'eri+e' o) % t,in$ bec%use o) % ri$,t o) % )irst buyer0

,%+in$ t,e t,in$ )irst re$istere' in ,is n%me in $oo' )%it,.

A scenario where a b"yer was depried of a thing after

the sale which is imp"table to the endor$

In 'ouble s%les *,ere t,e )irst buyer *%s 'eri+e' o) t,e

t,in$ bec%use o) % ri$,t o) % secon' buyer *,ic, is

imut%ble to t,e +en'or0 suc, *,en t,e buyer *%s

'eri+e' i) suc, t,in$ bec%use o) %n e2ecution s%le 'ue to

)%ilure o) t,e seller to %y re%l roerty t%2 i) t,e t%2

%ccrue' be)ore t,e s%le.

3f the b"yer was depried of the thing based on the

-"dgment of the co"rt that a third person ac!"ired theproperty by ac!"isitie prescription, can the seller be

held liable for breach of warranty against eiction$

It 'een's on *,et,er t,e rescribe erio' ,%' %lre%'y

been comlete' %t t,e time o) t,e s%le or not. :or e2%mle0

i) t,is is b%se' on t,e 1! ye%r %c3uisiti+e rescrition *it,

color o) title0 i) t,e occu%nt in *,ose )%+or t,e court

'eci'e' *,o %c3uire' t,e roerty resultin$ in t,e

'eri+%tion o) t,e buyer o) suc, roerty *%s %lre%'y in

ossession )or < ye%rs %t t,e time o) t,e s%le0 but t,e buyer

ne+er e+en bot,ere' to e2%mine t,e %rcel o) l%n'. W,en

,e %rri+e' %)ter 1 ye%rs t,ere is % u'$ment in )%+or o) t,e

occu%nt bec%use t,e occu%nt *%s %ble to comlete t,e

1! ye%r erio' rescribe by l%* *it,out interrution. >ere0t,e buyer c%nnot ,ol' t,e seller li%ble. 7,is is no lon$er t,e

)%ult o) t,e seller *,en t,e occu%nt *%s %ble to comlete

t,e erio'. I) t,e buyer only *rote % letter 'em%n'in$ t,e

occu%nt to +%c%te t,e remises t,%t *oul' ,%+e

interrute' t,e runnin$ o) t,e rescriti+e erio'. It is t,e

)%ult o) t,e buyer *,y ,e is 'eri+e' o) t,is l%n'.

3f the seller wo"ld be liable "nder this warranty against

eiction, what are the possible liabilities of the seller$

Un'er t,e l%*0 +%lue o) t,e t,in$ %t t,e time o) e+iction not

t,e rice0 inclu'in$ t,e )ruits0 costs0 income %n' e2enses

%n' '%m%$es %n' interest.

A erson c%n only be ,el' li%ble )or '%m%$es i) ,e is in b%'

)%it,. A seller m%y be ,el' li%ble )or '%m%$es in rel%tion to

t,is *%rr%nty %$%inst e+iction i) ,e *%s in b%' )%it,.

#hen wo"ld the seller be considered to be in bad

faith$ 3f the seller new of the defect of his title at the

time of the sale, therefore he is a seller in bad faith$

Not necess%rily0 ,e m%y ,%+e 8no*n o) t,e 'e)ect in ,is

title0 but ,e ,%' in)orme' t,e buyer. E+en i) ,e 8ne* o) t,e

'e)ect in ,is title %n' ,e 'i' not in)orm t,e buyer o) suc,

'e)ect0 ,e nee' not be in b%' )%it, bec%use rob%bly t,e

buyer *%s %lre%'y %*%re o) t,e 'e)ect o) ,is title.

3f the seller eec"ted a waier een in case of eiction,

where s"ch b"yer agree that he will not hold the seller

liable for the depriation of s"ch thing, can the seller

be held liable$

Fes0 i) t,e seller is in b%' )%it,0 bec%use un'er t,e l%*0

suc, *%i+er is +oi'0 %n' t,ere)ore t,e seller c%n be ,el'

li%ble.


23/37

4

3f the b"yer eec"ted a waier, and the seller acted in

good faith, may the seller be held liable$

Fes0 t,e seller m%y be ,el' li%ble *,en t,e *%i+er is 8no*n

%s *%i+er consciente. It is % *%i+er consciente *,en t,e

buyer e2ecute' % *%i+er not 8no*in$ t,e 'e)ect o) t,e title

o) t,e seller0 %t t,e s%me time t,e seller 'oes not li8e*ise

8ne* o) suc, 'e)ect. 7,e seller is li%ble )or only t,e +%lue

o) t,e t,in$ %t t,e time o) e+iction0 e2clu'in$ t,e ot,erli%bilities.

I) t,e *%i+er is %n intencion%'% *%i+er0 *it, )ull 8no*le'$e

o) t,e ossibility o) e+iction. In ot,er *or's0 ,e 8no*s t,e

'e)ect in t,e title o) t,e seller *,en ,e bou$,t %n' *,en ,e

e2ecute' t,e *%i+er. O) course t,e buyer c%n no lon$er

,ol' t,e seller li%ble )or bre%c, o) *%rr%nty %$%inst e+iction.

3f there is no waier, and the b"yer was depried, will

the seller be held liable$

O)0 course0 t,e only 'i))erence is t,e e2tent o) t,e li%bility o)

t,e seller *,et,er ,e is in $oo' )%it, or b%' )%it,. I) seller is

in b%' )%it,0 ,e *ill be e+en li%ble )or '%m%$es in c%se o)e+iction.

W %rr%nty %$%inst ,i''en )%ults or 'e)ects

#hat are the re!"irements in order for the seller to be

held liable for breach of warranty against hidden

defects$

1. 7,e 'e)ect must be ,i''en %n' not %tent.

. 7,e 'e)ect must ,%+e %lre%'y e2iste' %t t,e time o) t,e

s%le.

3f the b"yer discoered the defect on the thing bo"ght1+ days after the sale, the seller will be liable for

breach of warranty against hidden defects$

Not necess%rily bec%use t,e 'e)ect m%y be %tent0 ,ence

t,e seller c%nnot be ,el' li%ble. Secon'ly0 t,e 'e)ect m%y

e2ist %t t,e time %)ter t,e s%le0 t,ere)ore t,e seller c%nnot

be ,el' li%ble )or bre%c, o) *%rr%nty %$%inst ,i''en

'e)ects.

3n case the seller is held liable for breach of warranty

against hidden defects, what are the possible liability

of the seller$

1. I) t,e t,in$ *%s lost or 'estroye' 'ue to % )ortuitouse+ent or it *%s lost or 'estroye' 'ue to t,e )%ult o) t,e

buyer0 m%y t,e seller still be ,el' li%ble=

Fes t,e seller *ill still be ,el' li%ble bec%use t,e t,in$

,%' ,i''en 'e)ects.

I) t,e c%use o) t,e loss *%s 'ue to t,e )%ult o) t,e

buyer or to % )ortuitous e+ent0 t,e li%bility o) t,e seller

is to return t,e rice less +%lue %t t,e time o) t,e loss

*,et,er t,e seller is on $oo' )%it, or b%' )%it,.

D%m%$es *ill only be $r%nte' i) t,e seller is in b%'

)%it,. >e is in b%' )%it, *,en t,e seller 'i' not in)orm

t,e buyer o) t,e 'e)ect.

. I) t,e t,in$ *%s lost 'ue to t,e 'e)ect itsel)

7,e li%bility *ill be $re%ter i) t,e c%use o) t,e loss *%s

'ue to t,e 'e)ect itsel)0 t,%n *,en t,e c%use o) t,eloss *%s 'ue to t,e )%ult o) t,e buyer or to % )ortuitous

e+ent.

In c%se o) 'e)ect t,e seller ,%s to return t,e rice in

$oo' )%it, or in b%' )%it,.

D%m%$es *ill only be $r%nte' i) t,e seller is in b%'

)%it,. >e is in b%' )%it, *,en t,e seller 'i' not in)orm

t,e buyer o) t,e 'e)ect.

Note/ D%m%$es %n' interest c%nnot concur in c%se o) loss

'ue to t,e 'e)ect. W,en t,e seller is in b%' )%it, (+en'or

*%s %*%re o) t,e 'e)ect# '%m%$es is $r%nte'0 i) in $oo'

)%it, (+en'or *%s not %*%re o) t,e 'e)ect# interest s,%ll be$r%nte'.

In *%rr%nty %$%inst e+iction0 interest %n' '%m%$es concur.

3f the thing was lost or destroyed d"e to a fort"ito"s

eent, fa"lt of the endee, or d"e to the defect itself,

how can the b"yer proe that the thing had hidden

defects, when the thing was lost$

It is % m%tter o) roo). 7,e buyer mi$,t ,%+e %llo*e' %n

e2ert to e2%mine t,e t,in$ be)ore t,e loss o) t,e t,in$. >e

,%s % roo) o) t,e 'e)ect o) t,e t,in$ be)ore its loss.

2en if the thing with hidden defects was lost ordestroyed, is it possible that the seller will not be liable

for a single centao, een witho"t a waier$

W,en t,e loss *%s 'ue to % )ortuitous e+ent or )%ult o) t,e

+en'ee0 %n' t,e +en'or *%s not %*%re o) t,e 'e)ect. In t,is

scen%rio t,e li%bility o) t,e seller is only to return t,e rice

less +%lue. ;ut *,en t,e +%lue is $re%ter t,%n t,e rice0 t,e

seller *oul' no lon$er return t,e rice less +%lue ,ence no

li%bility. 7,e +%lue m%y be $re%ter t,%n t,e rice *,en t,e

seller sol' t,e t,in$ less t,%n its +%lue or t,e t,in$ *%s sol'

%t its +%lue but t,ere *%s %reci%tion o) t,e +%lue. Lesion

'oes not %))ect t,e +%li'ity o) t,e s%le.

Inclu'e' in t,is *%rr%nt %$%inst ,i''en 'e)ects0 *oul'ert%in to %ny c,%r$e or non-%%rent encumbr%nce not

'ecl%re' or 8no*n to t,e buye r.

1. In rel%tion to % s%le o) % %rcel o) l%n'0 %n' suc, is

subect to % ri$,t o) *%y0 *ill t,e seller be li%ble in

rel%tion to bre%c, o) *%rr%nty=

Not necess%rily. %ybe it *%s 8no*n to t,e buyer or it

*%s 'ecl%re' to t,e buyer. E+en i) it is not 'ecl%re'

%n' not 8no*n to t,e buyer but t,e encumbr%nce is


24/37

5

%%rent0 ,ence t,e seller c%nnot be ,el' li%ble )or

bre%c, o) *%rr%nty. E+en i) not 8no*n or *%s 'ecl%re'

to t,e buyer or t,e encumbr%nce is non %%rent0 t,e

seller m%y be li%ble *,en t,e encumbr%nce is

re$istere'.

he sale of a parcel of land was entered into Gan"ary *,

*++K. he b"yer filed an action for breach of warranty

against hidden defects pertaining to any charge or nonapparent enc"mbrance "nnown to the b"yer, beca"se

of a right of way only last friday, will the action

prosper$

It 'een's on *,%t 8in' o) %ction. I) t,e %ction is %n %ction

)or rescission0 it *ill not roser bec%use t,e l%* re3uires

t,%t t,e %ction )or rescission s,oul' be )ile' *it,in 1 ye%r

)rom t,e '%te o) t,e contr%ct. It is more t,%n 1 ye%r.

I) t,is is %n %ction )or '%m%$es0 it AF roser 'een'in$

on *,en t,e buyer 'isco+ere' t,e encumbr%nce. 7,e l%*

re3uires t,%t %n %ction )or '%m%$es m%y be )ile' *it,in 1

ye%r )rom 'isco+ery o) t,e encumbr%nce. W,en it is *it,in

suc, erio'0 t,en t,e %ction *ill roser.

S%le o) Anim%ls *it, 'e)ects or 'ise%ses (re',ibitory

'e)ects#

A re',ibitory 'e)ect c%nnot be 'isco+ere' 'esite %n

e2%min%tion by %n e2ert.

3f a b"yer bo"ght L dogs and one of them t"rned o"t to

hae a redhibitory defect, will an action for redhibition

be a remedy not only as to the animal with the defect

b"t also as to the other animals$

As % rule0 no. Re',ibition *oul' only ert%in to 'e)ecti+e

%nim%ls0 unless t,e buyer c%n ro+e t,%t ,e *oul' not,%+e bou$,t t,e ot,ers ,%' ,e 8no*n o) t,e 'e)ect o) one.

7,e bur'en o) roo) in ro+in$ t,%t t,e buyer *oul' not

,%+e bou$,t t,e 'o$s ,%' ,e 8no*n o) t,e 'e)ect o) one is

t,e buyer0 but un'er cert%in circumst%nces t,e l%* *oul'

resume t,%t t,e buyer *oul' not ,%+e bou$,t t,e ot,ers

,%' ,e 8no*n o) t,e 'e)ect o) one. 7,is *oul' ,%en

*,en ,e bou$,t t,e %nim%ls in %irs0 %s % te%m or %s %

$rou.

3f the animal bo"ght died 5 days after the sale, can the

b"yer still demand for the ret"rn of the price$

7,e seller c%n no lon$er be ,el' li%ble )or bre%c, o)*%rr%nty bec%use t,e l%* re3uires t,%t t,e %nim%l s,oul'

'ie *it,in 4 '%ys. 7,e 'ise%se must be e2istin$ %t t,e time

o) s%le.

7,e seller c%n ,o*e+er0 be obli$e' to return i) t,e 'e%t,

%lt,ou$, it ,%ene' more t,%n 4 '%ys %)ter t,e s%le0 *%s

c%use' by % cont%$ious 'ise%se. Un'er t,e l%*0 t,is

contr%ct is +oi'0 ,ence t,e seller c%n be comelle' to

return t,e rice %i' by t,e buyer.

Are there no implied warranties in -"dicial sales$

:%lse. 7,ere c%n be imlie' *%rr%nties in u'ici%l s%les.

1. 7,ere seems to be % ro+ision *,ere cert%in ersons

suc, %s mort$%$ees0 le'$ees0 %uctioneers0 %n'

s,eri))s0 c%nnot be ,el' li%ble )or bre%c, o) *%rr%nty.

Since % s,eri)) is t,e seller in % u'ici%l s%le0 %n' un'er

t,e l%* ,e c%nnot be ,el' li%ble0 it is conclu'e' t,%tt,ere %re no imlie' *%rr%nties in u'ici%l s%le. Suc,

+ie* is incorrect0 it 'oes not )ollo* t,%t t,e s,eri)) c%nnot

be ,el' li%ble. It 'oes not me%n t,%t *,en t,e s,eri))

c%nnot be ,el' li%ble0 it 'oes not )ollo* t,%t no one c%n

be ,el' li%ble. 7,e u'$ment 'ebtor c%n be ,el' li%ble0

unless t,e contr%ry *%s 'ecree' in t,e u'$ment.

. In u'ici%l s%le0 norm%lly t,ese %re secon' ,%n' items0

,ence0 t,ere is no *%rr%nty %s to ,i''en 'e)ects= :%lse0

bec%use t,e s,eri)) c%n le+y br%n' ne* roerties0 suc,

*,en t,e seller *%s in t,e business o) sellin$ br%n' ne*

items. In t,is l%tter c%se0 t,e u'$ment 'ebtor m%y be

,el' li%ble )or bre%c, o) *%rr%nty %$%inst ,i''en 'e)ects.

Un'er Art. 16

m%'e e2ressly %lic%ble to u'ici%l s%les.

Ri$,ts %n' obli$%tions o) t,e +en'ee

#hat are the rights of the endee$

1. Ri$,t to t,e :ruits

By means of a p"blic instr"ment, 'r. agbibili sold his

mango plantation to Abentorero effectie immediately.

he parties agreed that the deliery will be effected 0

mos. from eec"tion of the deed of sale. #hen the saidperiod arried Abent"rero demanded the thing, b"t

agbibili dili dallied. 3t was only a month afterwards

when agbibili finally deliered the land to Abent"rero.

3n the three wees before deliery, agbibili sold and

delier the entire prod"ce of the 'ango plantation to

'r. Commerciante. 'r. Commerciante nown nothing

of the contract between agbibili and Abent"rero.

Abent"rero now sees to recoer from Commerciante

either the f"ll al"e of the mangoes or a similar amo"nt

and !"ality of the mangoes sold. &oes abent"rero

hae the right to the fr"its against Commerciante$

Un'er t,e l%* %rticul%rly Art. 169


25/37

6

o+er t,e t,in$ until t,e %ctu%l 'eli+ery o) t,e t,in$ to ,im.

7,e only reme'y o) Abenturero is only %$%inst N%$bibili

since0 Commerci%nte ,%' no 8no*le'$e o) suc, s%le

bet*een N%$bibili %n' Abenturero.

#hat if d"ring the 0 month period, agbibili harested

the fr"its and sold it to Commerciante, can Abent"ero

recoer these fr"its or the al"e thereof$

Abenturero 'oes not ,%+e t,e ri$,t to t,e )ruits bec%use

Abenturero s,%ll only ,%+e t,e ri$,t to t,e )ruits o) t,e t,in$

)rom t,e time t,e obli$%tion to 'eli+er it %rises. Un'er t,e

)%cts0 it *%s ,%r+este' be)ore t,e 9 mont, erio' %n'

'urin$ suc, time N%$bibili is un'er no obli$%tion to 'eli+er

t,e )ruits.

. Ri$,t o) e2%min%tion

3f the goods were deliered by the seller to the place of

b"siness of the b"yer, and the goods were receied by

the b"yer, does it mean that ownership already passed"pon receipt of the goods$

Not necess%rily. Recei+in$ is 'i))erent )rom %ccetin$. In

or'er t,%t o*ners,i is to %ss0 t,e l%* re3uires t,%t t,e

buyer must ,%+e %ccete' t,e $oo's. Recei+in$ is only

relimin%ry to %ccetin$0 in )%ct recei+in$ is necess%ry )or

,im to e2ercise % ri$,t *,ic, is t,e ri$,t o) e2%min%tion or

insection be)ore ,e %ccets. As to *,en ,e *ill be

'eeme' to ,%+e %ccete'0 *,en ,e intim%tes ,is

%ccet%nce to t,e seller or *,en ,e 'i' %n %ct inconsistent

*it, t,e o*ners,i o) t,e seller0 %)ter t,e l%se o) %

re%son%ble time.

3s it possible that the endee "pon receiing, healready accepted$

Fes0 *,en t,e +en'ee ,%' *%i+e' t,e ri$,t o) e2%min%tion

by e2ress stiul%tion0 or by cert%in %rr%n$ements t,%t m%y

be %$ree' uon by t,e %rties *,erein t,ere *ill be no ri$,t

o) e2%min%tion relimin%ry to %ccet%nce.

E.$. In s%le o) co%l )rom t,e loc%tion o) t,e site o) t,e

minin$ com%ny0 it *ill be 'eli+ere' to C%l%c% l%nt in

;%t%n$%s0 *,en t,e co%l *%s recei+e' by N%ocor0 it is

'eeme' %ccete'. 7,ere *ill be no e2%min%tion

relimin%ry to %ccet%nce. >o*e+er0 t,ere *ill be %n

e2%min%tion %)ter recei+in$ not )or t,e urose o)

'eterminin$ *,et,er it *ill be %ccete' or not0 but t,eurose *ill only be )or t,e )i2in$ o) t,e rice0 %n' %scert%in

t,e 3u%lity o) t,e co%l.

Are C& sales hae right of eamination$

None bec%use uon 'eli+ery0 t,e buyer %ys0 %n' t,e

buyer is 'eeme' to ,%+e %ccete'.

3f the goods were deliered to the place of b"siness of

the b"yer which goods were receied by the b"yer b"t

sometimes the employees of the seller will leae the

place immediately. After 1 ho"r the b"yer called the

seller informing him that he is re-ecting the goods,

and told the seller to obtain the goods in the place of

the b"yer. B"t before the seller co"ld obtain the goods

from the b"yers place, all the goods were destroyed.

Can the b"yer be held liable for the price of these

goods$

It 'een's on t,e re%son )or t,e re)us%l to %ccet. I) t,ere

is no ust c%use )or t,e re)us%l0 un'er t,e l%* o*ners,i is

'eeme' to %ss to t,e buyer0 ,ence0 t,e o*ner be%rs t,e

loss. As suc,0 ,e c%n be comelle' to %y t,e rice.

I) t,ere is % $oo' %n' +%li' re%son0 rob%bly t,e $oo's

*ere 'e)ecti+e0 suc, t,%t ,e ,%' to reect t,e $oo's0 t,e

l%* e2ressly ro+i'es t,%t o*ners,i *ill not %ss to ,im

%n' ,e c%nnot be comelle' to %y t,e rice.

6"rs"ant to a sale, the seller deliered the rice field *

years ago, b"t the payment was only made today. Can

the seller demand to pay interest on the price$

Or'in%rily0 t,e buyer c%nnot be ,el' li%ble )or t,e interest

on t,e rice. Unless t,ere is %n e2ress stiul%tion to t,e

contr%ry0 interest c%nnot be 'em%n'e'. As %n e2cetion0

t,e seller c%n +%li'ly 'em%n' interest only i) t,ere *%s

suc, % stiul%tion to %y interest.

E+en i) t,ere is no suc, stiul%tion to %y interest0 t,e

buyer m%y be ,el' li%ble to %y interest i) t,e t,in$ is )ruit

be%rin$. Un'er t,e )%cts0 t,e l%n' sol' is % rice )iel'0

,ence0 it is )ruit be%rin$. An' %s suc,0 t,e buyer c%n be

comelle' to %y interest on t,e rice.

E+en i) t,ere is no stiul%tion %n' e+en i) t,e t,in$ is not

)ruit be%rin$0 ,e m%y be ,el' li%ble )or interest in t,e ricebec%use t,e buyer is %lre%'y in 'el%y %)ter u'ici%l or

e2tr%u'ici%l 'em%n' is m%'e by t,e seller.

It must be noted, under $ $"!, there is no need for

demand, when one of the parties had complied with his

obligation, delay by the other begins. %nder this scenario

this presupposes that there is a period within which to pay

and the period had already prescribed, and in such case

there has to be a &udicial or e'tra&udicial demand.

4. %ce'% L%* RA 966 - Ri$,t o) t,e +en'ee

7,e Re%lty Inst%llment ;uyer Act - 7,is l%* is inten'e' torotect or'in%ry buyers.

7,is l%* c%n only be in+o8e' *,en t,e obect o) t,e s%le is

% re%lty. Cle%rly0 t,is c%nnot be in+o8e' i) t,e obect o) t,e

s%le is % erson%l roerty or % mo+%ble roerty.

3f it is an immoable property, is it coered by the

'aceda Daw$


26/37

9

Not necess%rily. W,%t is co+ere' by t,e %ce'% L%* %re

re%lties. Not e+ery immo+%ble is co+ere' by t,e %ce'%

L%*.

3f it is a realty is it coered by the 'aceda Daw$

Not necess%rily. It must be % resi'enti%l re%lty0 %n' not

commerci%l or in'ustri%l re%lty.

A sale on installment is a sale on credit$ 3f a sale on

installment is a sale on credit, a sale on credit is

coered by the 'aceda Daw$

A s%le on inst%llment is % s%le on cre'it0 but % s%le on cre'it

nee' not necess%rily me%n it is co+ere' by t,e %ce'%

L%*0 bec%use % s%le on cre'it nee' not be on inst%llment

b%sis.

A s%le o) % con'ominium unit *,ere 1J4 o) t,e rice *ill be

%i' uon si$nin$ o) t,e contr%ct0 but t,e b%l%nce *ill be

%i' *it,in % ye%r. Suc, is not co+ere' by t,e %ce'% L%*

bec%use t,%t is not % s%le on inst%llment b%sis. 7,is is %

s%le on cre'it on % str%i$,t term b%sis.

3n a sale on installment payable in *+ years or E+ years,

a b"yer was able to religio"sly pay his monthly

ammorti>ation for 1+ years, what if on the 11th year the

b"yer for one reason or another, he was no longer able

to pay. #hat will be the effect$

3s the maceda law be inoed if the b"yer was able to

pay installments for at least two years$

:%lse. E+en i) t,e buyer *%s not %ble to %y inst%llments

)or % )ull t*o ye%rs0 t,e buyer c%n ,%+e ri$,ts un'er t,e

l%*. I) ,e %lre%'y %i' )or t*o ye%rs0 ,e *oul' ,%+e betterri$,ts.

#hat are the rights of the b"yer if he only paid for less

than * years$

>e is $i+en % minimum o) 9! '%y $r%ce erio' *,ic, c%n

be incre%se' %t t,e otion o) t,e seller but no less t,%n 9!.

In t,is $r%ce erio'0 t,e ri$,ts o) t,e buyer %re/ 1# >e c%n

u'%te ,is %ccounts # %y t,e %rre%rs *it,out bein$ ,el'

li%ble )or en%lties0 surc,%r$es0 interests0 ,e c%n %y t,e

entire b%l%nce 'urin$ t,is $r%ce erio'. 4# Sell ,is interest

un'er t,is contr%ct 5#Assi$n ,is interest or ri$,ts un'er t,is

contr%ct.

3f the b"yer was able to pay installments for at least

two years, what are the rights of the b"yer$

7,e buyer *ill be entitle' to % ortion o) t,e %mounts %i'0

8no*n %s t,e C%s, Surren'er V%lue in % minimum o) 6!G

)or ye%rs o) %ll %yments m%'e. A)ter %not,er 6 ye%rs or i)

,e %i' )or % tot%l o) < ye%rs0 entitle' to %not,er 6G *,ic,

me%ns 66G0 %n' e+ery ye%r t,ere%)ter0 %''ition%l 6G0 but

not to e2cee' "!G.

6riscilla p"rchased a condomini"m "nit in 'aati City

from the Cityland Corporation for a price of 1+ million

payable E million down and the balance thereon shall

be paid in 0+ e!"al monthly installments. hey

eec"ted a deed of conditional sale in which it is

stip"lated that sho"ld the endee fail to pay E

s"ccessie monthly installments, the sale shall be

deemed a"tomatically rescinded witho"t the necessityof -"dicial action and the act"al payments made by the

endee shall be forfeited in faor of the endor by way

of rental for the "se and occ"pancy of the "nit and

li!"idated damages. 7or 40 months 6riscilla paid

monthly installments religio"sly, b"t on the 4Lth and

48th month she failed to pay. n the 4Kth month she

tried to pay the installment d"e, b"t the endor ref"sed

to receie the payments tendered by her. he following

month the endor sent her a notice that he was

rescinding the deed of conditional sale p"rs"ant to the

stip"lation of a"tomatic rescission and demanded that

she acate the premises. %he replied that the contract

cannot be rescinded witho"t -"dicial demand or

notarial act p"rs"ant to Art. 15K* of the Ciil Code.Can the endor rescind the contract$

No0 bec%use t,e obect o) s%le is % resi'enti%l unit %n'

un'er t,e %ce'% L%*0 t,ere %re t*o stiul%tions t,%t %re

'ecl%re' +oi' by t,is l%*. One o) t,e stiul%tion is t,e

stiul%tion ro+i'in$ )or t,e %utom%tic rescission o) t,e

contr%ct. Anot,er +oi' stiul%tion un'er t,e %ce'% L%* is

8no*n %s t,e )or)eiture cl%use. In ot,er *or's0 t,e buyer is

entitle' to t,e C%s, Surren'er V%lue e+en i) t,ere is %

)or)eiture cl%use. Suc, cl%use is % +oi' cl%use un'er t,e

%ce'% L%*.

7,e +en'or c%nnot rescin' bec%use un'er t,is %ce'%

L%*0 t,e buyer ,%' %lre%'y %i' )or %t le%st t*o ye%rs. 7,ebuyer is entitle' to % $r%ce erio' *,ic, is 1 mont, )or

e+ery ye%r. Un'er t,e )%cts riscill% ,%' %lre%'y %i' )or 59

mont,s0 %n' t,us ,%+in$ comlete' %yin$ 4 ye%rs s,e is

entitle' to % 4 mont,s $r%ce erio' e3ui+%lent to "! '%ys.

On t,e 5"t, inst%llment o))ere' to %y0 s,e '%)%ulte' on t,e

5


27/37

ence ,e coul' not conni+e to% t,ir' erson to buy t,e $oo's )or % less +%lue so ,e c%n

reco+er t,e 'e)iciency )rom t,e buyer. Suc, *oul' be % b%'

)%it, s%le0 %n' t,e seller coul' no lon$er ,%+e t,e ri$,t to

reco+er t,e 'e)iciency. ;ut i) in'ee' t,ere *%s % $oo' )%it,

s%le0 %n' t,ere *%s %ctu%l bi''in$ %n' t,ere %re erson

*,o bi'0 but t,e ,i$,est bi''er is 9!0 t,e buyer c%n be

comelle' to %y t,e 'e)iciency.

#hen the net proceeds is greater than the payable

amo"nt, who is entitled to the ecess amo"nt$


29/37

'aceda Daw ecto Daw

Contr%ct o) S%le Contr%ct o) S%le

S%le on Inst%llment S%le on Inst%llment

%sse' to rotect buyers %sse' to rotect buyers0

Obect o) s%le is % Re%lty

)or Resi'enti%l urose

Obect o) t,e s%le is %

erson%l roerty ormo+%ble roerty.

Reme'ies/

E2%ct )ul)illment

C%ncell%tion o) t,e S%le

:oreclosure o) ort$%$e

"

Un'er t,e l%* it is t,e seller. 7,e seller s,%ll not be

resonsible )or t,e buyer )or *,%te+er ro)it ,e m%y obt%in

out o) t,e res%le.

3f the b"yer partially paid, b"t the seller resold it at a

price higher than the amo"nt payable, can the b"yer

demand for the amo"nt paid$

No. 7,e l%* is cle%r t,%t t,e seller s,%ll not be resonsible

)or %ny ro)it ,e m%y obt%in out o) t,e res%le.

3f ownership had already passed to the b"yer, in the

eercise of the right of resale, sho"ld the seller rescind

the first contract, or the title of the first b"yer for him

to be able to resell$

No nee' )or rescission bec%use t,e e))ect o) t,e res%le

*oul' termin%te t,e o*ners,i o) t,e )irst buyer by

oer%tion o) l%*. Suc, o*ners,i c%n be +este' uon t,e

secon' buyer uon t,e 'eli+ery o) t,e $oo's to t,e secon'

buyer.

Rescission

#hat are the gro"nds for rescission$

1. 7,e buyer ,%s been in 'e)%ult )or %n unre%son%ble

len$t, o) time

. 7,e ri$,t is e2ressly reser+e' to t,e seller

Recto L%*

I) t,e buyer )%ils to %y or more inst%llments reme'ies %re

ro+i'e' to t,e seller. In t,e )irst l%ce0 t,e Recto L%* is

consi'ere' rel%te' to t,e %ce'% L%*0 t,%tHs *,y t,ee2%miner mi$,t re3uire you to 'istin$uis, one )rom t,e

ot,er0 ,ence/

7,e Recto l%* is consi'ere' %s % rotection to buyers

'esite t,e )%ct t,%t t,e l%* $i+es t,e seller reme'ies0 %n'

not to buyers. In t,e sense t,%t t,ese reme'ies %re

%ltern%ti+e in c,%r%cter0 it is me%nt to rotect buyers

bec%use once t,e seller in+o8e %ny o) t,ese reme'ies0 ,e

c%n no lon$er in+o8e t,e ot,er reme'ies.

%ale of a specific car worth 5 million, payable in 1+

e!"al ann"al

Documents

Sales atty. Uribe notes