Sales PowerPoint in Doc

8/12/2019 Sales PowerPoint in Doc

1/19

Sales Law Review for Seniors PowerPoint Presentations and Lectures of Atty. Maria Christina S. Sagmit

(PowerPoint Presentations in Bold Letters;Additional Notes based on 4thYear Lectures not in Bold Letters )

PART ONE: CONCEPT OF SALECONCEPT

Article 145! Ci"il Code

B# t$e contract o% sale! one o% t$e contractin& 'artiesoli&ates $i)sel% to trans%er t$e owners$i' o% and to

deli"er a deter)inate t$in&! and t$e ot$er to 'a# t$ere%ora 'rice certain in )one# or its e*+i"alent,

A contract o% sale )a# e asol+te or conditional,

Take note: A conditional sale is not the same as a contract to sell

Sale "s, Ot$er Contracts

Sale ", -onation

-onation . an act o% lieralit# w$ic$ is &rat+ito+s inc$aracter

/ain consideration: lo"e and a%%ection

A donation is a transfer of ownership of ones property wherein themain consideration is not money !t is an act of liberality of thedonor

"ain consideration of a contract of sale: purchase price

Sale ", Barter

Barter . contract w$ere )a0orit# o% t$e considerationis in t$e %or) o% anot$er t$in& and a )inor 'art o% t$econsideration is in )one#

Sale ", Contract %or a Piece o% or2 Contract %or a 'iece o% wor2 . contractor inds $i)sel%to e3ec+te a 'iece o% wor2 %or t$e e)'lo#er! in considerationo% a certain 'rice or co)'ensation,

test: t$in& is s'eciall#)an+%act+red %or t$e c+sto)er and +'on $is s'ecialorder (-ino ", CA! +ne 6! 6617

Sale . i% t$e article is )an+%act+red or 'roc+red %ort$e &eneral )ar2et in t$e ordinar# co+rse o%+siness! 8ET8ER T8E SA/E 9S ON 8AN- AT T8ET9/E OR NOT

Test: t$in& is )an+%act+red in t$e ordinar# co+rse o%+siness (147

This means that the #thin$ is specially manufactured for you%&uantity will not determine if it is a piece of work!f anyone can buyt it' it is a contract of sale !f it is e(clusie' it

is a contract for a piece of work !f it is displayed thereafter' it is asale

A*T!+L, -4./ A contract for the deliery at a certain price of anarticle which the endor in the ordinary course of his businessmanufactures or procures for the $eneral market' whether the sameis on hand at the time or not' is a contract of sale' but if the $oods

are to be manufacture specially for the customer and upon hisspeciar order' and not for the $eneral market' it s a contract for apiece of work 0n)

,(ample: A cake which has a face of you on it 1 contract for a pieceof work

Sale ", Dacion en PagoDacion En Pago< -ation in 'a#)ent . 'ro'ert# is

alienated to t$e creditor in satis%action o% a det in )one#,T$is contract is &o"erned # t$e law on sales (1457

A*T!+L, -243 ation in payment' whereby property is alienated tothe creditor in satisfaction of a debt in money' shall be $oerned bythe law on sales 0n)

This is different from pactum commissorium' wherein there isautomatic appropriation Be able to distin$uish it dacion en pa$ofrom pactum commissorium

SSS ", A=>P! A'ril ?6! 66

Dacion en pago is t$e deli"er# and trans)ission o%owners$i' o% a t$in& # t$e detor to t$e creditor as anacce'ted e*+i"alent o% t$e 'er%or)ance o% t$e oli&ation,

S'ecial )ode o% 'a#)ent w$ere t$e detor o%%ersanot$er t$in& to t$e creditor w$o acce'ts it as e*+i"alent o%'a#)ent o% an o+tstandin& det,

Parta2es in one sense o% t$e nat+re o% sale! t$at is t$ecreditor is reall# +#in& t$e t$in& or 'ro'ert# o% t$e detor!

'a#)ent %or w$ic$ is to e c$ar&ed a&ainst t$e detor@s det, T$e essential ele)ents o% a contract o% sale! na)el#!

consent! o0ect certain! and ca+se or consideration )+st e'resent,

9n its )odern conce't! w$at act+all# ta2es 'lace indacion en pago is an o0ecti"e no"ation o% t$e oli&ationw$ere t$e t$in& o%%ered as an acce'ted e*+i"alent o% t$e'er%or)ance o% an oli&ation is considered as t$e o0ect o%t$e contract o% sale! w$ile t$e det is considered as t$e'+rc$ase 'rice, 9n an# case! co))on consent is an essential'rere*+isite! e it sale or no"ation! to $a"e t$e e%%ect o%totall# e3tin&+is$in& t$e det or oli&ation,

*ules on sale will apply

SSS "s, A=P (A'ril ?6! 667

FACTS: 5laintiff informed the 666 in writin$ of its premiums and loanamorti7ation delin8uencies A95 chose to settle its obli$ation with the666 throu$h dacion en pa$o A95 was' thereafter' directed by thedefendant to submit certain documents' such as Transfer +ertificate of Title'Ta( eclaration coerin$ the sub;ect lot' and the proposed subdiision plan'which re8uirements A95 immediately complied 666 approed A95sproposal to settle its and 6,"!*A*As delin8uencies throu$h dacion enpa$o A eed of Assi$nment has to be e(ecuted between the plaintiffsand the defendant Because of 666 failure to come up with the re8uiredeed of Assi$nment to effect said transfer' A95 prepared the draft andsubmitted it to the 5resident ?nfortunately' the defendantfailed to take any action on said eed of Assi$nment causin$ A95 to re>submit it to the same office

"ore than a year after the approal of A95s proposal' defendantsent the reised copy of the eed of Assi$nment to A95 @oweer' theamount of the plaintiffs obli$ation appearin$ in the approed eed ofAssi$nment has ballooned alle$edly because of the additional interests andpenalty char$es assessed on plaintiffs outstandin$ obli$ation from April2-' the date of approal of the proposal' up to anuary 2C

A95 demanded for the waier and deletion of the additionalinterests on the $round that delay in the approal of the deed and thesubse8uent delay in coneyance of the property in defendants name wassolely attributable to the defendant efendant' howeer' refused to acceptthe payment throu$h dacion en pa$o' unless plaintiffs also pay theadditional interests and penalties bein$ char$ed

666 moed for the dismissal of the complaint for lack of ;urisdictionand non>e(haustion of administratie remedies

9SSE: Dhich body has ;urisdiction to entertain a controersy arisin$ fromthe non>implementation of a dacion en pa$o a$reed upon by the parties asa means of settlement of priate respondents liabilities

8EL-: The action then is one for specific performance which case lawholds is an action incapable of pecuniary estimation fallin$ under the

;urisdiction of the *e$ional Trial +ourt' and does not fall within the;urisdiction of the 6ocial 6ecurity +ommission

acion en pa$o is the deliery and transmission of ownership of athin$ by the debtor to the creditor as an accepted e8uialent of theperformance of the obli$ation !t is a special mode of payment where thedebtor offers another thin$ to the creditor who accepts it as e8uialent of

payment of an outstandin$ debt The undertakin$ really partakes in onesense of the nature of sale' that is the creditor is really buyin$ the thin$ orproperty of the debtor' payment for which is to be char$ed a$ainst thedebtorEs debt As such' the essential elements of a contract of sale'

namely' consent' ob;ect certain' and cause or consideration must bepresent !n its modern concept' what actually takes place in dacion en pa$ois an ob;ectie noation of the obli$ation where the thin$ offered as anaccepted e8uialent of the performance of an obli$ation is considered asthe ob;ect of the contract of sale' while the debt is considered as thepurchase price !n any case' common consent is an essential prere8uisite'be it sale or noation' to hae the effect of totally e(tin$uishin$ the debt orobli$ation

The controersy' instead' lies in the non>implementation of theapproed and a$reed dacion en pa$o on the part of the 666 As such'respondents filed a suit to obtain its enforcement which is' doubtless' a suitfor specific performance and one incapable of pecuniary estimation beyondthe competence of the +ommission

0a77ie 6arona )

Sale ", LeaseLease +se o% t$in& %or a 'rice and ret+rn o% t$e sa)e a%ter

t$e 'eriod

Prepared by !a""ie M. Sarona #for $%Manresa &''(%&'')* 1


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RENT TO ON $en t$e lease &i"es t$e lessee t$eo'tion to +# %or a s)all consideration at t$e end o% t$e ter)!a%ter creditin& to t$e 'rice all t$e socalled rents! s+c$ contract)a# e re&arded a contract o% sale on install)ents, Articles144 and 145 will a''l# (Filinvest v. CA, 178 SCRA 188)

F9L9NEST CRE-9T "s, CA 1 SCRA 1

FACTS: 5riate respondents spouses ose and !luminada are

en$a$ed in the sale of $rael and ac8uired the serices of 9emini"otor 6ale to look for a rock crusher 5riate respondents appliedfor financial assitance from Filinest +redit with the conditions thatthe machinery be purchased in the name of Filinest and that it beleased for 2 years with option to purchase upon the termination ofthe lease period to priate respondent Filinest foreclosed themort$a$ed property e(ecuted by priate respondent 5riaterespondent filed a complaint for the rescission of the contract oflease

8EL-: +ontracts in the form of lease' either with an option for thebuyer to purchase for a small consideration at the end of the termproided all installments are paid or with stipulation that if the rentthrou$ht the term is paid' title shall est in the lessee' are loans inname only Contracts o% t$is nat+re are act+all# contracts o%sale The intent of the parties to the sub;ect contract is for the so>called rentals to be the installment payments ?pon completion of

payment' the machinery would become the property of the priaterespondent

A*T!+L, -4G4 !n a contract of sale of personal property the priceof which is payable in instalments' the endor may e(ercise any ofthe followin$ remedies:0-) ,(act fulfilment of the obli$ation' should the endee fail to payH02) +ancel the sale' should the endees failure to pay coer twoor more instalmentsH0C) Foreclose the chattel mort$a$e on the thin$ sold' if one hasbeen constituted' should the endees failure to pay coer two ormore instalments !n this case' he shall hae no further actiona$ainst the purchaser to recoer any unpaid balance of the price

Any a$reement to the contrary shall be oid 0-434>A>a)

A*T!+L, -4G3 The precedin$ article shall be applied to contract

purportin$ to be leases of personal property with option to buy'when the lessor has depried the lessee of the possession oren;oyment of the thin$

144 and 145 144 . relie% a"ailale to an +n'aid install)ent seller 145 144 is a''licale i% t$ere is lease o% 'ersonal

'ro'ert# and lessor de'ri"es t$e lessee o%'ossession or en0o#)ent o% t$e S/

S+))ar# SALE SALE

SALE SALE SALE

onation 9ratuitous

Barter +onsiderationmostly in

another thin$

5iece ofwork

Thin$ isspeciallymanufactured

Lease No transferofownership

Dacion enPago

Transfer ofownershipto satisfyobli$ation

PART TO: ELE/ENTS OF A CONTRACT OF SALE

Essential Ele)ents consent or )eetin& o% t$e )inds;

deter)inate s+0ect )atter; and

'rice certain in )one# or its e*+i"alent

1st ele)ent: CONSENTI Basic 're)ise: Onl# ca'acitated 'arties can &i"e t$eir

consent to +# or sell

I Art, 14D : an# 'erson w$o is a+t$oried in t$e Ci"ilCode to oli&ate $i)sel%

A*T!+L, -4GJ All persons who are authori7ed in the +ode to obli$atethemseles' may enter into a contract of sale' sain$ the modifications

contained in the followin$ articlesDhere necessaries are sold and deliered to a minor or other

person without capacity to act' he must pay a reasonable pricetherefore Necessaries are those referred to in Article 2J 0-43/ a)

9nca'acitated Parties

=ENERAL RLE: Contracts entered into # )inors!insane and de)ented 'ersons! dea%)+tes w$o cannotread and write are O9-ABLE (1?7

T$e "oidale contract cannot e a"oided # ca'acitated'art# (1?D7

A*T!+L, -C2/ The followin$ cannot $ie consent to a contract:0-) ?nemancipated minorsH02) !nsane or demented persons' and deaf>mutes who do not know

how to write 0-2.Ca)

A*T!+L, -CJ/ The action for the annulment of contracts may beinstituted by all who are thereby obli$ed principally or subsidiarily@oweer' persons who are capable cannot alle$e the incapacity ofthose with whom they contractedH nor can those who e(ertedintimidation' iolence' or undue influence' or employed fraud' orcaused mistake base their action upon these flaws of the contract0-C2a)

ECEPT9ON: 9% contracts o% t$ese inca'acitated 'ersonsare %or NECESSAR9ES or t$ose t$in&s w$ic$ areindis'ensale %or $is s+''ort! t$e# )+st 'a# areasonale 'rice t$ere%or (14D7

Sale etween s'o+ses

=eneral r+le: NO (Article 14D67! NLESS w$en a se'aration o% 'ro'ert# was a&reed +'on in t$e

)arria&e settle)ents; OR

w$en t$ere $as een a 0+dicial se'aration o% 'ro'ert#+nder Article 1D1 (w$en s'o+se is sentenced to a 'enalt#w$ic$ carries wit$ it ci"il interdiction or $as een declaredasent or in case o% le&al se'aration7

!f the spouses are separated only in fact' apply the $eneral rule thatthey cannot sell property to each other

&: !f they are not le$ally separated' can they still sell to each otherEA: Yes' if they $o for a oluntary separation of property

Sale a&ainst '+lic 'olic#

Persons w$o cannot ac*+ire # '+rc$ase! e"en at a'+lic or 0+dicial a+ction t$e %ollowin& 'ro'ert#: (Article14D17

&+ardians! 'ro'ert# o% $is ward a&ents! 'ro'ert# w$ose ad)inistration or sale

$as een entr+sted to $i)! +nless 'rinci'alconsents

e3ec+tors! 'ro'ert# o% state +nderad)inistration

'+lic o%%icers > e)'lo#ees! 'ro'ert# o% t$estate or s+di"ision or =OCC entr+sted tot$e) incl+des -=ES and =O@T EPERTS0may naisip na 8uestion si maam dito na part )

0+stices! 0+d&es! 'rosec+tin& attorne#s! cler2so% in%erior and s+'erior co+rts! ot$er o%%icersand e)'lo#ees connected wit$ t$e

ad)inistration o% 0+stice! 'ro'ert# and ri&$ts inliti&ation < le"ied wit$in t$eir 0+risdiction, S$alla''l# to law#ers

STATS: contracts "iolati"e o% Art, 14D6 > 14D1 are n+ll and"oid (Medina v. Collector, 1 SCRA !")

A*T!+L, -4J- The followin$ persons cannot ac8uire by purchase'een at a public or ;udicial auction' either in person or throu$h themediation of another:0-) The $uardian' the property of the person or persons who may

be under his $uardianshipH



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02) A$ents' the property whose administration or sale may haebeen entrusted to them' unless the consent of the principalhas been $ienH

0C) ,(ecutors and administrators' the property of the estateunder administrationH

04) 5ublic officers and employees' the property of the 6tate or ofany subdiision thereof' or of any $oernment>owned orcontrolled corporation' or institution' the administration ofwhich has been intrusted to themH this proision shall apply

to ;ud$es and $oernment e(perts who' in any mannerwhatsoeer' take part in the saleH03) ustices' ;ud$es' prosecutin$ attorneys' clerks of superior and

inferior courts' and other officers and employees connectedwith the administration of ;ustice' the property and ri$hts inliti$ation or leied upon an e(ecution before the court withinwhose ;urisdiction or territory they e(ercise their respectiefunctionsH this prohibition includes the act of ac8uirin$ byassi$nment and shall apply to lawyers' with respect to theproperty and ri$hts which may be the ob;ect of any liti$ationin which they may take part by irtue of their profession

0.) Any others specially dis8ualified by law 0-43Ja)

Take note: #unless with consent% only applies to a$ent and principalHothers are considered null and oid

6ale made in iolation of Articles -4J and -4J2/E-9NA "s, COLLECTOR OF 9NTERNAL REENE and T8E

CORT OF TA APPEALS, (an+ar# ! 1D17

FACTS: 5etitionin$ ta(payer Antonio "edina married Antonia*odri$ue7 Before -J4.' the spouses had neither property norbusiness of their own Later' howeer' petitioner' ac8uired forestconcessions in the municipalities of 6an "ariano and 5alanan inthe 5roince of !sabela From -J4. to -J4G' the lo$s cut andremoed by the petitioner from his concessions were sold todifferent persons in "anila throu$h his a$ent' "ariano


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All serices which are not contrary to law' morals' $ood customs'public order or public policy may likewise be the ob;ect of a contract0-2/-a)

-ETER/9NATE

S/ )+st e deter)inate OR at least deter)inale(Art, 1467

deter)inate . 'artic+larl# desi&nated or

'$#sicall# se&re&ated %ro) all ot$ers o% t$esa)e class

-ETER/9NABLE . ca'ale o% ein& )adedeter)inate wit$o+t t$e necessit# o% a newor %+rt$er a&ree)ent etween t$e 'arties

-ETER/9NATE: &eneric o0ects! +ndi"ided

interested o% a sole owner (14?7! +ndi"ideds$are o% a s'eci%ic )ass (1447

A*T!+L, -4.C The sole owner of a thin$ may sell an undiidedinterest therein 0n)

A*T!+L, -4.4 !n the case of fun$ible $oods' there may be a saleof an undiided share of a specific mass' thou$h the sellerpurports to sell and the buyer to buy a definite number' wei$ht

or measure of the $oods in the mass' and thou$h the number'wei$ht or measure of the $oods in the mass is undeterminedBy such a sale the buyer becomes owner in common of sucha share of the mass as the number' wei$ht or measurebou$ht bears to the number' wei$ht or measure of the mass!f the mass contains less than the number' wei$ht or measurebou$ht' the buyer becomes the owner of the whole mass andthe seller is bound to make $ood the deficiency from $oods ofthe same kind and 8uality' unless a contrary intent appears0n)

-eter)inale

Atilano v. Atilano. wron& desi&nation o% a lot doesnot "itiate t$e sale since t$e 'arties e%ore enterin&into t$e contract saw t$e act+al settin& and )etesand o+nds o% t$e s+0ect )atter

AT9LANO "s, AT9LANO (/a# 1! 1DD7

FACTS: !n -J-.' ,ulo$io Atilano ! ac8uired' by purchase from one9erardo =illanuea' lot No 3C3 of the then municipality ofamboan$a cadastre !n -J2 he had the land subdiided into fieparts ,ulo$io Atilano !' for the sum of 5-3' e(ecuted a deed ofsale coerin$ lot No 3C3>, in faor of his brother ,ulo$io Atilano !!'who thereupon obtained transfer certificate of title No C-2J in hisname Three other portions were likewise sold to other persons' theori$inal owner' ,ulo$io Atilano !' retainin$ for himself only theremainin$ portion of the land ?pon his death the title to this lotpassed to Ladislao Atilano

,' the bi$$er lot

RL9N=: The lo$ic and common sense of the situation lean heailyin faor of the defendantsK contention Dhen one sells or buys realproperty a piece of land' for e(ample one sells or buys theproperty as he sees it' in its actual settin$ and by its physical metesand bounds' and not by the mere lot number assi$ned to it in thecertificate of title !n the particular case before us' the portioncorrectly referred to as lot No 3C3>A was already in the possessionof the endee' ,ulo$io Atilano !!' who had constructed his residence

therein' een before the sale in his faor een before the subdiision ofthe entire lot No 3C3 at the instance of its owner' ,ulo$io Atillano ! !nlike manner the latter had his house on the portion correctly identified'after the subdiision' as lot No 3C3>,' een addin$ to the area thereofby purchasin$ a portion of an ad;oinin$ property belon$in$ to adifferent owner The two brothers continued in possession of therespectie portions the rest of their lies' obiously i$norant of theinitial mistake in the desi$nation of the lot sub;ect of the -J2 until-J3J' when the mistake was discoered for the first time

The mistake did not itiate the consent of the parties' oraffect the alidity and bindin$ effect of the contract between them Thenew +iil +ode proides a remedy for such a situation by means ofreformation of the instrument This remedy is aailable when' therehain$ been a meetin$ of the funds of the parties to a contract' theirtrue intention is not e(pressed in the instrument purportin$ to embodythe a$reement by reason of mistake' fraud' ine8uitable conduct onaccident !n this case' the deed of sale e(ecuted in -J2 need nolon$er reformed The parties hae retained possession of theirrespectie properties conformably to the real intention of the parties tothat sale' and all they should do is to e(ecute mutual deeds of

coneyance 0a77ie 6arona)

-eter)inale des'ite lac2 o% s'eci%ic *+antit# $ational %rains v. &AC. s+0ect )atter was t$e rice to

e $ar"ested %ro) seller@s %ar)land

T$e %act t$at t$e *+antit# is not deter)inate s$all not ean ostacle to t$e e3istence o% t$e contract 'ro"ided itis 'ossile to deter)ine t$e sa)e wit$o+t t$e need %or a%+rt$er a&ree)ent

NAT9ONAL =RA9NS AT8OR9TG! CABAL "s, 9AC! SOR9ANO(/arc$ ! 1DD7

FACTS: National 9rains Authority 0now National Food Authority' NFAfor short) is a $oernment a$ency wherein one of its incidentalfunctions is the buyin$ of palay $rains from 8ualified farmers

6oriano offered to sell palay $rains to the NFA' throu$h Dilliam+abal' the 5roincial "ana$er of NFA stationed at Tu$ue$arao'+a$ayan 5riate respondent 6orianoKs documents were processedand accordin$ly' he was $ien a 8uota of 2'.4 caans of palay The8uota noted in the FarmerKs !nformation 6heet represented the

ma(imum number of caans of palay that 6oriano may sell to the NFA!n the afternoon of Au$ust 2C' -J/J and on the followin$ day'

Au$ust 24' -J/J' 6oriano deliered .C caans of palay The palaydeliered durin$ these two days were not reba$$ed' classified andwei$hed when 6oriano demanded payment of the .C caans ofpalay' he was informed that its payment will be held in abeyance since"r +abal was still inesti$atin$ on an information he receied that6oriano was not a bona tide farmer and the palay deliered by him wasnot produced from his farmland but was taken from the warehouse of arice trader' Ben de 9u7man

+abal wrote 6oriano adisin$ him to withdraw from the NFAwarehouse the .C caans 6oriano deliered statin$ that NFA cannotle$ally accept the said deliery on the basis of the subse8uentcertification of the BA,O technician' Napoleon +allan$an that 6orianois not a bona fide farmer

6oriano insisted that the palay $rains deliered be paid @e thenfiled a complaint for specific performance andPor collection of moneywith dama$es The trial court rendered ;ud$ment orderin$ petitionerNational Food Authority' its officers and a$ents to pay respondent6oriano The !A+ upheld the findin$s of the trial court

9SSE: Dhether or not there was a contract of sale in the case at bar

RL9N=: The petition is not impressed with merit !n the case at bar'6oriano initially offered to sell palay $rains produced in his farmland toNFA Dhen the latter accepted the offer by notin$ in 6orianoKsFarmerKs !nformation 6heet a 8uota of 2'.4 caans' there was alreadya meetin$ of the minds between the parties The ob;ect of the contract'bein$ the palay $rains produced in 6orianoKs farmland and the NFAwas to pay the same dependin$ upon its 8uality The fact that thee(act number of caans of palay to be deliered has not beendetermined does not affect the perfection of the contract Article -C4Jof the New +iil +ode proides: M The fact that the 8uantity is not

determinate shall not be an obstacle to the e(istence of the contract'proided it is possible to determine the same' without the need of anew contract between the partiesM !n this case' there was no need forNFA and 6oriano to enter into a new contract to determine the e(actnumber of caans of palay to be sold 6oriano can delier so much ofhis produce as lon$ as it does not e(ceed 2'.4 caans

The acceptance referred to which determines consent is theacceptance of the offer of one party by the other and not of the $oodsdeliered as contended by petitioners

The reason why NFA initially refused acceptance of the .Ccaans of palay deliered by 6oriano is that it 0NFA) cannot le$allyaccept the said deliery because 6oriano is alle$edly not a bona fide



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farmer The trial court and the appellate court found that 6orianowas a bona fide farmer and therefore' he was 8ualified to sell palay

$rains to NFA 0a77ie 6arona)

9lle&al Sale d+e to 9lle&al S+0ect /atter narcotics (RA 457

wild ird < )a))al (Art No, D567 rare wild 'lants (Art No, ?D?7 'oisono+s 'lants < %r+its (RA 17

d#na)ited %is$ (RA 47 &+n'owder and e3'losi"es (Act No,557 %irear)s and a))+nitions (P-HD7

?rd ELE/ENT: PR9CE Price . s+) sti'+lated as t$e e*+i"alent o% t$e t$in&

sold and also e"er# incident ta2en into consideration%or t$e %i3in& o% t$e 'rice '+t to t$e deit o% t$e +#erand a&reed to # $i)

Price )+st e: real

in )one# or its e*+i"alent certain or ascertainale at 'er%ection #:

a t$ird 'erson t$e co+rts re%erence to a de%inite

da#meter residential land in"anaoa$' 5an$asinan with


6/19


worth at least5-'3 $oin$ only by assessments for ta( purposes which' it iswell>known' are notoriously low indicators of actual alue > plainly andun8uestionably demonstrates that they state a false and fictitiousconsideration' and no other true and lawful cause hain$ been shown'the +ourt finds both said deeds' insofar as they purport to be sales' notmerely oidable' but oid ab initio

T$e trans%ers in *+estion ein& "oid! it %ollows as anecessar# conse*+ence and con%or)al# to t$e conc+rrin&o'inion in Ar)entia! wit$ w$ic$ t$e Co+rt %+ll# a&rees! t$att$e 'ro'erties '+r'ortedl# con"e#ed re)ained 'art o% t$eestate o% 8ilario /ate+)! said trans%ers notwit$standin&!reco"erale # $is intestate $eirs! t$e 'etitioners $erein!

w$ose stat+s as s+c$ is not c$allen&ed,0@anniyah 6eilla )

E%%ect i% Price is ncertain t$e K is ine%%icacio+s +t i% +#er

ne"ert$eless a''ro'riates t$e o0ect $e )+st 'a#reasonale 'rice (Art, 1447

/anner o% 'a#)ent )+st e a&reed +'on

A*T!+L, -4/4 Dhere the price cannot be determined in accordancewith the precedin$ articles' or in any other manner' the contract isinefficacious @oweer' if the thin$ or any part thereof has beendeliered to and appropriated by the buyer he must pay a reasonable

price therefor Dhat is a reasonable price is a 8uestion of factdependent on the circumstances of each particular case 0n)

9nade*+ac# o% 'rice: E%%ect

ol+ntar# sale does not a%%ect t$e "alidit# o% sale

But the price must not be $rossly disproportionate

9nade*+ac# o% Price: +dicial Sale

=eneral r+le: )a# a"oid t$e 0+dicial sale w$en it iss$oc2in& to t$e conscience o% )an

E3ce'tion: w$en t$ere@s a ri&$t o% rede)'tion

9nade*+ac# o% Price: Sales A Retro Raises t$e 'res+)'tion o% e*+itale )ort&a&e

9nade*+ac# o% Price: ards and =+ardians sale # &+ardians or # re'resentati"es w$en

wardsfourth of the alueof the thin$s which are the ob;ect thereofH02) Those a$reed upon in representation of absentees' if the lattersuffer the lesion stated in the precedin$ numberH0C) Those undertaken in fraud of creditors when the latter cannot in anyother manner collect the claims due themH

04) Those which refer to thin$s under liti$ation if they hae beenentered into by the defendant without the knowled$e and approal ofthe liti$ants or of competent ;udicial authorityH03) All other contracts specially declared by law to be sub;ect to

rescission 0-2J-a)

A*T!+L, -CG. *escission referred to in Nos - and 2 of Article -CG-shall not take place with respect to contracts approed by the courts0-2J.a)



7/19


Lesion as to wards and $uardians: !f the price is 5 /3' of 5 -"'it is still alid Lesion suffered is e8ual 0not more) to U of the alueof the thin$

S//ARG

CONSENT SBECT /ATTER PR9CE

6pouses ,mptio rei ,mptiospei

*ules on inade8uacy

"inors' insane'demented' deaf mutewho cant read andwrite

9eneric No price

9uardians' ;ud$es'attorneys' a$ents'public officers'e(ecutors

!lle$al ob;ects 6imulated

eterminate uncertain

FOR/AT9ON OF A CONTRACT OF SALE

STA=ES

STA=ES

F9RST P8ASE: PREPARATORG

'eriod o% ne&otiation and ar&ainin& endin& at t$e)o)ent o% a&ree)ent o% t$e 'arties

CONTRACTS 9N T8E F9RST P8ASE

Policitation

'ption Contract

Rigt o* First Re*+sal

Contract to Sell

P'&C&-AC&'$

NACCEPTE- +nilateral 'ro)ise to +# or sell, E"en i%acce'ted # t$e ot$er 'art#! it is not indin& +'on t$e'ro)issor and )a# e wit$drawn at an# ti)e,

"iolation does not &i"e rise to an# relie% on t$e 'art o%t$e ot$er 'art# since t$ere is no "alid contract

There is no remedy in case of breach because there is lack ofconsent

BAR 1DDD

A 'ro)ised to sell 'ro'ert# to B i% B 'asses t$e BarE3a)

A sold $o+se to C e%ore B 'assed t$e Bar

9s t$e sale AL9- 9s B entitled to rentals since $e t$ere was a 'ro)ise to

sell

ANSER

Ges! t$e sale to C is "alid, A )erel# )ade an +nacce'ted+nilateral 'ro)ise to sell to B in t$e nat+re o% a'olicitacion, T$is contract does not &i"e rise to an#oli&ation, 9t does not 're"ent t$e owner %ro) sellin&t$e t$in& to anot$er,

No! B is not entitled to rentals, As 'ro)ise to sell was+nilateral and +nacce'ted, 8ence! t$ere was no'er%ected contract o% sale t$at will trans%er owners$i'o"er t$e t$in& to B, B is not entitled to rentals eca+se$e does not own t$e 'ro'ert#,



8/19


OPT9ON CONTRACT

ACCEPTE- +nilateral 'ro)ise to +# or sell adeter)inate t$in& w$ic$ is s+''orted # aconsideration distinct %ro) t$e 'rice

i% wit$ consideration &i"es rise to a case %or da)a&es+t NOT %or s'eci%ic 'er%or)ance

O'tion contract )+st $a"e consideration se'arate

and distinct %ro) t$e '+rc$ase 'rice, Ot$erwise! t$eo'tion contract is O9-(S+gar Molassescase7

9% t$ere is no consideration! t$e contract is O9- BTo%%er can still e acce'ted +ntil it is wit$drawn(Sance v. Rigos)

&MS'$ /. CA

An o'tion is a contin+in& o%%er or contract # w$ic$t$e owner sti'+lates wit$ anot$er t$at t$e latter s$all$a"e t$e ri&$t to +# t$e 'ro'ert# at a %i3ed 'ricewit$in a ti)e certain! or +nder! or in co)'liance wit$!certain ter)s and conditions! or w$ic$ &i"es to t$eowner o% t$e 'ro'ert# t$e ri&$t to sell or de)and asale, An o'tion is not itsel% a '+rc$ase! +t )erel#sec+res t$e 'ri"ile&e to +#, 9t is not a sale o%'ro'ert# +t a sale o% ri&$t to '+rc$ase,

L9/SON S C,A,( ?5 s 6D 7

FACTS: 5etitioner Limson filed a complaint alle$in$ that in uly-J/G' 6pouses de =era' throu$h their a$ent "arcosa 6anche7'offered to sell to petitioner a parcel of land

5etitioner a$reed to buy the property and $ae 52k asearnest money *espondent spouses si$ned a receipt and $aepetitoner a ->day option period to purchase the property andinformed them that the property was mort$a$e to *amoses' andasked Limson to pay the balance of the purchase price to enable tosettle their obli$ation with *amoses

days' and did not sell their propertyH they did not alsoa$ree to sell itH but they sold somethin$' and the a$reementimposed no bindin$ obli$ation on petitioner' aside from theconsideration for the offer

The consideration of 52k paid by petitioner to respondentspouses was not earnest money but option money

,arnest money and option money are not the same butdistin$uished thus:

,arnest money is part of the purchase price' while option moneyis the money $ien as a distinct consideration for an option contractH

,arnest money is $ien only where there is already a sale' whileoption money applies to a sale not yet perfectedH

Dhen earnest money is $ien' the buyer is bound to pay the

balance' while when the would 1be buyer $ies option money' he isnot re8uired to buy' but may een forfeit it dependin$ on the terms ofthe option

!n this case' there is nothin$ in the receipt which indicates that the52k was part of the purchase price "oreoer' it was not shown thatthere was a perfected sale between the parties where earnest moneywas $ien Finally' the receipt did not reeal that petitioner was boundto pay the balance of the purchase price !n fact' respondent spousescould een forfeit the money $ien if the terms of the option were notmet The option period hain$ e(pired and acceptance was not madeby petitioner' the purchase of sub;ect property by 6unar was perfectlyalid and entered into in $ood faith

0from: ,rwin =icente)

BAR 1DD! 1DDA &a"e B an o'tion to '+rc$ase $is a'art)ent %or P5/B o%%ered to +# %or P4,5 /

Co+ntero%%er was not acce'tale to AA sold to C w$o o+&$t it at P5 /Can B co)'el A to cancel sale to C and e3ec+te deed

in $is %a"orANSER

B cannot co)'el A to e3ec+te a deed in $is %a"oreca+se w$at B onl# $ad was an o'tion contract, Saidcontract was not a "alid one since it was not s+''orted# a consideration distinct %ro) t$e '+rc$ase 'rice,

E"en i% wit$ consideration! B can onl# s+e A %orda)a&es +t not %or s'eci%ic 'er%or)ance

BAR 66

9% t$e 'arties entered into an o'tion K w$ic$ iss+''orted # a se'arated consideration %ro) t$e'+rc$ase 'rice and t$e o'tion K is not res'ected! can

t$e wo+lde+#er as2 %or s'eci%ic 'er%or)ance Can t$e seller esca'e liailit# # sa#in& $onorin& t$e

o'tion K wo+ld e %inanciall# disad"anta&eo+s to $i)ANSER

An o'tion contract wit$ se'arate consideration will onl#&i"e rise to a case %or da)a&es and not %or s'eci%ic'er%or)ance,

Seller cannot esca'e liailit# # clai)in& econo)iclesion since seller w$o enters into an o'tion contract$as t$e oli&ation to s+stain o%%er +ntil t$e end o%a&reed 'eriod,

R9=8T OF F9RST REFSAL

contract 0ic grants a person te rigt to +2 apropert2 e*ore it is o**ered to anoter. -is doesn3t need a

separate consideration since s+c stip+lation is part andparcel o* te entire contract

This is usually present if you are the lessee

R9=8T OF F9RST REFSAL 9%

o%%eree and o%%error@s ter)s are 9-ENT9CAL o%%eror "iolates t$e a&ree)ent SPEC9F9C PERFOR/ANCE

9% o%%eree and o%%error@s ter)s are -9FFERENT o%%eror "iolates t$e a&ree)ent -A/A=ES

R9=8T OF F9RST REFSAL

A o0ns a o+se 0ic is leased to

0as given te rigt o* *irst re*+sal 4 P5M

o**ered to +2 *or P6.5 M 4 not acceptale co+nter4o**er

A sold te o+se to C *or P5 M

Can co#pel A to cancel te sale 0it C and sell te o+se toi#



9/19


ANSER B cannot co)'el A to e3ec+te a deed o% sale in $is

%a"or eca+se B@s co+ntero%%er is not t$e sa)e asA@s 'rice,

8owe"er! since t$ere was a reac$ o% t$e ri&$t o% %irstre%+sal since t$e 'ro'ert# was not sold to B as t$elessee! B )a# %ile a case %or da)a&es,

CONTRACT TO SELL Bilateral contract w$ere# t$e 'ros'ecti"e seller!

w$ile e3'ressl# reser"in& t$e owners$i' o% t$es+0ect 'ro'ert# des'ite deli"er# t$ereo% to t$e'ros'ecti"e +#er! inds $i)sel% to sell t$e said'ro'ert# e3cl+si"el# to t$e 'ros'ecti"e +#er +'on%+l%ill)ent o% t$e condition a&reed +'on! t$at is! %+ll'a#)ent o% t$e '+rc$ase 'rice

Take note a$ain: +ontract to sell is different from conditional sale

CONTRACT TO SELL 9S NOT A CONTRACT OF SALE T$e %irst essential ele)ent o% consent o% 'arties is

ABSENT T$e seller does not consent to trans%er

owners$i' to t$e +#er +ntil t$e $a''enin& o% an

e"ent! w$ic$ )a# e t$e %+ll 'a#)ent o% 'rice w$ic$is a s+s'ensi"e condition! t$e non%+l%ill)ent o%w$ic$ 're"ents t$e oli&ation %ro) arisin& (Coronelv. CA, 'ct. 7,19)

CORONEL "s CA (? S 15 . Octoer ! 1DD7FACTS:This case has its roots in a complaint for specificperformance to compel herein petitioners to consummate the saleof a parcel of land with its improements located alon$ *ooseelt

Ae' &+ entered in to by the parties sometime in anuary -JG3 forthe price of 5-'24'

&+ rendered ;ud$ment faorable to +oncepcion andordered the cancellation of sale to "abana$ +oncepcions "otionfor *econsideration was deniedH hence an appeal was made to +awhich affirmed *T+s decision

@ence' this petition where +oncepcion contended that the#*eceipt of own 5ayment% embodied a perfected contract of sale'while +oronels insisted that what the document si$nified was amere e(ecutory contract to sell' sub;ect to certain suspensieconditions' and because of the absence of *amona' who left for the?6A' said contract could not possibly ripen into a contract ofabsolute sale

9SSE: Dfulfillment of whichpreents the obli$ation to sell from arisin$ and thus' ownership isretained by the prospectie seller without further remedies by theprospectie buyer

A +ontract to 6ell may thus be defined as a bilateral contract

whereby the prospectie seller while e(pressly reserin$ the ownershipof the sub;ect property despite delier thereof to the prospectie buyer'binds himself to sell the property e(clusiely to the prospectie buyerupon fulfillment of the condition a$reed upon' that is full payment of thepurchase price !n a contract to sell' upon the fulfillment of the suspensiecondition which is the full payment of the purchase price' ownershipwill not automatically transfer to the buyer althou$h the property mayhae been preiously deliered to him The prospectie seller still hasto coney the title to the prospectie buyer by enterin$ into a contractof absolute sale

!n conditional contract of sale' howeer' upon the fulfillment of thesuspensie condition' the sale becomes absolute and this will definitelyaffect the sellers title thereto !n fact' if there had been preiousdeliery of the sub;ect property' the sellers ownership or title to theproperty is automatically transferred to the buyer such that' the sellerwill no lon$er hae nay title to transfer to any third person Applyin$

Art -344 of the ++' such second buyer of the property who may haehad actual or constructie knowled$e of such defect in the sellers title'or atleast was char$ed with the obli$ation to discoer such defect'cannot be a re$istrant in $ood faith 6uch second buyer cannot defeatthe first buyers title !n case the title is issued to the second buyer' thefirst buyer may seek reconeyance of the property sub;ect of the sale

Dhen the #*eceipt of own 5ayment% is considered in its entirety'it becomes more manifest that there was a clear intent on the part ofpetitioners to transfer title to the buyer' but since the Transfer+ertificate of Title 0T+T) was still in the name of petitioners father' theycould not fully effect such transfer althou$h the buyer was then willin$and able to immediately pay the purchase price The a$reement could not hae been a contract to sell becausethe seller herein made no e(press reseration of ownership or title tothe sub;ect parcel of land Dhat is clearly established by the plain lan$ua$e of the sub;ectdocument is that when the said #*eceipt of own 5ayment% wasprepared and si$ned by petitioners *omeo +oronel' et al' the partieshad a$reed to a conditional contract of sale' consummation of which issub;ect only to the successful transfer of the certificate of title from thename of petitioners father' +onstancio +oronel' to their names 6ince the condition contemplated by the parties which is theissuance of a certificate of title in petitioners name was fulfilled onFebruary .'-JG34' the respectie obli$ations of the parties under thecontract of sale became mutually demandable' that is' petitioners' assellers' were obli$ed to present the transfer certificate of title already intheir names to priate respondent *amona Alcara7' the buyer' and toimmediately e(ecute the eed of Absolute 6ale' while the buyer on herpart' was obli$ed to forthwith pay the balance of the purchase priceamountin$ to 5-'-J'

0a77ie 6arona )

CONTRACT OF SALE , CONTRACT TO SELL

CONTRACT TO SELL 9S NOTA CON-9T9ONAL SALE

9n a conditional sale! t$e %irst ele)ent o% consent is'resent alt$o+&$ it is conditioned on t$e $a''enin& o%an e"ent,

T$ere is no consent to trans%er owners$i' in a contractto sell

CORONEL , CA

IRecei't o% -own'a#)entJ contains t$e %%:

Prepared by !a""ie M. Sarona #for $%Manresa &''(%&'')*

Title re)ains in t$e "endorand $e can e0ect "endee %ornonco)'liance wit$s+s'ensi"e condition

endor $as lost control andcan reco"er onl# i% K isrescinded

F+ll 'a#)ent is a 'ositi"eresol+tor# condition

Non'a#)ent is a ne&ati"eresol+tor# condition

endor reser"es owners$i'and will not 'ass +ntil %+ll'a#)ent o% 'rice

Title 'asses to t$e +#er+'on deli"er# o% S/

9


10/19


11/19


Owners$i' is trans%erred to t$e +#er +'on act+al orconstr+cti"e deli"er# (147

owners$i' o% S/ is ac*+ired # t$e "endee %ro) t$e)o)ent it is deli"ered to $i) in an# o% t$e wa#ss'eci%ied in articles 14D1561 (14D7

A*T!+L, -4// The ownership of the thin$ sold shall be transferredto the endee upon the actual or constructie deliery thereof 0n)

A*T!+L, -4J. The ownership of the thin$ sold is ac8uired by theendee from the moment it is deliered to him in any of the waysspecified in Articles -4J/ to -3-' or in any other manner si$nifyin$an a$reement that the possession is transferred from the endor tothe endee 0n)

A*T!+L, -4J/ The thin$ sold shall be understood as deliered'when it is placed in the control and possession of the endee0-4.2a)

A*T!+L, -4JG Dhen the sale is made throu$h a public instrument'the e(ecution thereof shall be e8uialent to the deliery of the thin$which is the ob;ect of the contract' if from the deed the contrarydoes not appear or cannot clearly be inferred

Dith re$ard to moable property' its deliery may also bemade by the deliery of the keys of the place or depository where it

is stored or kept 0-4.Ca)

A*T!+L, -4JJ The deliery of moable property may likewise bemade by the mere consent or a$reement of the contractin$ parties'if the thin$ sold cannot be transferred to the possession of theendee at the time of the sale' or if the latter already had it in hispossession for any other reason 0-4.Ca)

A*T!+L, -3 There may also be tradition constitutumpossessorium 0n)

A*T!+L, -3- Dith respect to incorporeal property' the proisionsof the first para$raph of article -4JG shall $oern !n any other casewherein said proisions are not applicable' the placin$ of the titlesof ownership in the possession of the endee or the use by theendee of his ri$hts' with the endorKs consent' shall be understood

as a deliery 0-4.4)

-eli"ered +t no trans%er o% owners$i'

14 . 'arties )a# sti'+late t$at owners$i' s$all not'ass to t$e +#er +ntil $e $as %+ll# 'aid

T#'es o% -eli"er#

P$#sical -eli"er# (14D7 . w$en t$e S/ is 'laced in t$e'ossession and control o% t$e "endee

Constr+cti"e deli"er# 9//OABLES

sale t$ro+&$ '+lic instr+)ent! e3ec+tion o%instr+)ent deli"er# i% t$e contrar# does not a''earin t$e deed (14D7

Placin& t$e title o% owners$i' in "endee@s 'ossessionwit$ "endors consent (15617

Constr+cti"e deli"er#/OABLES

deli"er# o% t$e2e#s or de'ositor# w$ere it is stored (14D7

deli"er# #consent o% t$e 'arties i% S/ cannot e trans%erred to+#er at t$e ti)e o% sale or t$e +#er alread# $ad'ossession e%ore sale (14DD7

'erson tow$o) ne&otiale doc+)ent o% title $as eenne&otiated ac*+ires t$e ri&$t o% 'erson to w$o)deli"er# s$all e )ade # t$e ter)s o% t$e doc+)ent(151?7

A*T!+L, -3-C A person to whom a ne$otiable document of titlehas been duly ne$otiated ac8uires thereby:0-) 6uch title to the $oods as the person ne$otiatin$ the documentto him had or had ability to coney to a purchaser in $ood faith foralue and also such title to the $oods as the person to whose orderthe $oods were to be deliered by the terms of the document had orhad ability to coney to a purchaser in $ood faith for alueH and02) The direct obli$ation of the bailee issuin$ the document to holdpossession of the $oods for him accordin$ to the terms of thedocument as fully as if such bailee had contracted directly with him0n)

-oc+)ents o% Title

Bill o% ladin&! doc2 warrant! *+edan! ware$o+se recei'tor an# doc+)ent +sed in t$e ordinar# co+rse o%+siness in t$e sale or trans%er o% &oods as 'roo% o%'ossession and control or a+t$oriin& or '+r'ortin& toa+t$orie t$e 'ossessor o% t$e doc+)ent to trans%er orrecei"e eit$er # endorse)ent or deli"er# t$e &oodsco"ered # t$e doc+)ent (1?7

A*T!+L, -.C. !n the precedin$ articles in this Title $oernin$ the saleof $oods' unless the conte(t or sub;ect matter otherwise re8uires:0-) "Document of title to goods" includes any bill of ladin$' dockwarrant' M8uedan'M or warehouse receipt or order for the deliery of$oods' or any other document used in the ordinary course of businessin the sale or transfer of $oods' as proof of the possession or control ofthe $oods' or authori7in$ or purportin$ to authori7e the possessor ofthe document to transfer or receie' either by endorsement or bydeliery' $oods represented by such document"Goods"includes all chattels personal but not thin$s in action or moneyof le$al tender in the 5hilippines The term includes $rowin$ fruits orcrops"Order" relatin$ to documents of title means an order by endorsementon the documents"Quality of goods"includes their state or condition"Specific goods"means $oods identified and a$reed upon at the time acontract of sale is made

An antecedent or pre>e(istin$ claim' whether for money or not'constitutes MalueM where $oods or documents of title are taken eitherin satisfaction thereof or as security therefor02) A person is insolent within the meanin$ of this Title who either hasceased to pay his debts in the ordinary course of business or cannotpay his debts as they become due' whether insolency proceedin$shae been commenced or not0C) 9oods are in a "deliverable state"within the meanin$ of this Titlewhen they are in such a state that the buyer would' under the contract'be bound to take deliery of them 0n)

-oc+)ents o% Title . P+r'ose E"idence o% control and 'ossession or control o% &oods

descried

/edi+) o% trans%errin& 'ossession and control o% &oods

descried wit$o+t $a"in& to +nderta2e act+al deli"er#T#'es o% -oc+)ents o% Title

Ne&otiale . states t$at &oods will e deli"ered toearer or to t$e order o% one 'erson

NonNe&otiale does not state t$at t$e &oods re%erredto t$erein will e deli"ered to t$e earer or t$e order o%an# 'erson

-eli"er# t$ro+&$ Carrier 15? deli"er# o% &oods to t$e carrier is dee)ed

deli"er# o% &oods to t$e +#er

A*T!+L, -32C Dhere' in pursuance of a contract of sale' the seller isauthori7ed or re8uired to send the $oods to the buyer' deliery of the$oods to a carrier' whether named by the buyer or not' for the purpose

of transmission to the buyer is deemed to be a deliery of the $oods tothe buyer' e(cept in the case proided for in Article -3C' first' secondand third para$raphs' or unless a contrary intent appears?nless otherwise authori7ed by the buyer' the seller must make suchcontract with the carrier on behalf of the buyer as may be reasonable'hain$ re$ard to the nature of the $oods and the other circumstancesof the case !f the seller omit so to do' and the $oods are lost ordama$ed in course of transit' the buyer may decline to treat thedeliery to the carrier as a deliery to himself' or may hold the sellerresponsible in dama$es?nless otherwise a$reed' where $oods are sent by the seller to thebuyer under circumstances in which the seller knows or ou$ht to knowthat it is usual to insure' the seller must $ie such notice to the buyeras may enable him to insure them durin$ their transit' and' if the sellerfails to do so' the $oods shall be deemed to be at his risk durin$ suchtransit 0n)

F,A,S, sales seller 'a#s all c$ar&es and is s+0ect to allris2s +ntil t$e &oods are 'laces alon&side t$e "essel

F,O,B, sales I%ree on oardJ seller s$all ear alle3'enses +ntil t$e &oods are deli"ered w$et$er at t$e'oint o% s$i')ent or t$e 'oint o% destination

C,9,F, sales Icost! ins+rance > %rei&$tJ 'rice co"erscost o% &oods and %rei&$t and ins+rance costs 'aid #t$e seller

S'ecial /odes o% -eli"er# constit+t+# possessori+# (15667

)ode o% deli"er# ta2es e%%ect w$en at t$e ti)e o%



12/19


'er%ection o% t$e contract t$e seller $eld 'ossessiono% t$e S/ in t$e conce't o% an owner and a%ter t$econtract! $e contin+es to $old S/ no lon&er in t$econce't o% an owner

tradition revi #an+ o''osite o% constit+t+); e%oret$e contract! t$e wo+lde+#er is alread# is'ossession o% t$e S/ +t not in t$e conce't o% anowner and '+rs+ant to t$e sale! $e now $olds'ossession o% t$e S/ in t$e conce't o% an owner

tradition longa #an+ deli"er# )erel# # a&ree)ents+c$ as w$en t$e seller 'oints t$e S/ wit$o+tact+all# deli"erin& '$#sical 'ossession e,&, 14DD

OBL9=AT9ONS OF T8E BGER Pa# 'rice o% t$in& sold (157

Acce't deli"er# o% t$in& sold (151557

Pa# e3'enses o% deli"er#

A*T!+L, -3G2 The endee is bound to accept deliery and to paythe price of the thin$ sold at the time and place stipulated in thecontract!f the time and place should not hae been stipulated' the paymentmust be made at the time and place of the deliery of the thin$ sold0-3a)

A*T!+L, -3GC ?nless otherwise a$reed' the buyer of $oods is notbound to accept deliery thereof by installmentsDhere there is a contract of sale of $oods to be deliered by statedinstallments' which are to be separately paid for' and the sellermakes defectie delieries in respect of one or more instalments' orthe buyer ne$lects or refuses without ;ust cause to take deliery ofor pay for one more instalments' it depends in each case on theterms of the contract and the circumstances of the case' whetherthe breach of contract is so material as to ;ustify the in;ured party inrefusin$ to proceed further and suin$ for dama$es for breach of theentire contract' or whether the breach is seerable' $iin$ rise to aclaim for compensation but not to a ri$ht to treat the whole contractas broken 0n)

A*T!+L, -3G4 Dhere $oods are deliered to the buyer' which hehas not preiously e(amined' he is not deemed to hae acceptedthem unless and until he has had a reasonable opportunity of

e(aminin$ them for the purpose of ascertainin$ whether they are inconformity with the contract if there is no stipulation to the contrary?nless otherwise a$reed' when the seller tenders deliery of $oodsto the buyer' he is bound' on re8uest' to afford the buyer areasonable opportunity of e(aminin$ the $oods for the purpose ofascertainin$ whether they are in conformity with the contractDhere $oods are deliered to a carrier by the seller' in accordancewith an order from or a$reement with the buyer' upon the terms thatthe $oods shall not be deliered by the carrier to the buyer until hehas paid the price' whether such terms are indicated by markin$ the$oods with the words Mcollect on deliery'M or otherwise' the buyer isnot entitled to e(amine the $oods before the payment of the price'in the absence of a$reement or usa$e of trade permittin$ suche(amination 0n)

A*T!+L, -3G3 The buyer is deemed to hae accepted the $oodswhen he intimates to the seller that he has accepted them' or whenthe $oods hae been deliered to him' and he does any act inrelation to them which is inconsistent with the ownership of theseller' or when' after the lapse of a reasonable time' he retains the$oods without intimatin$ to the seller that he has re;ected them 0n)

-OBLE SALES

Ele)ents or )ore sales )+st e "alid sales

or )ore sales )+st 'ertain to e3actl# t$e sa)e

s+0ect0possible 8uestion sa e(am ) +#ers )+st eac$ re'resent con%lictin& interests

+#ers )+st eac$ $a"e o+&$t %ro) t$e "er#sa)e seller

&: Dhat if spouses sell property to different personsE Dhat ifeach spouse sells property to another set of spouse separatelyE

0Dalay answer baka related dito an$ 8uestion toynkV )

-o+le Sales . /o"ales Person w$o $as 'ossession in &ood %ait$ s$all e t$eowner

All elements of double sale must be present

-o+le Sales . 9))o"ales recorded in Re&istr# o% Pro'ert# in &ood %ait$

i% t$eres no inscri'tion! w$o in &ood %ait$ was %irst in'ossession

in asence t$ereo%! to t$e 'erson w$o 'resents t$eoldest title! 'ro"ided t$ere@s &ood %ait$

9% not all ele)ents o% do+le sales are 'resentPR9NC9PLE:

Prior te)'ore! Prior +reQFirst in ti)e! stron&er in ri&$t

0pwede i>theme sa conflicts haha )

o not apply this principle if all the elements of double sale arepresent

BAR 661! 665 A sold land to B +ne 15! 1DD5

A sold sa)e land to C +ne ?6! 1DD5 $o $as a etter ri&$t i%:

B@s sale was re&istered e%ore C@s sale +t B2new t$e sale to C

C@s sale was re&istered e%ore B@s sale +t C2new t$e sale to B

ANSER B $as a etter ri&$t eca+se $e was ale to record t$e

sale in &ood %ait$ since $e recorded e%ore t$e sale to C

$a''ened

E"en i% B recorded t$e sale 2nowin& o% t$e s+se*+entsale to C! B is still in &ood %ait$ since in do+le sale!w$at creates ad %ait$ is 2nowled&e o% a 'rior sale! noto% a later sale

B still $as a etter ri&$t o"er C since C +ndertoo2re&istration in ad %ait$ $a"in& 2nowled&e o% t$e PR9ORsale to B (Art, 1544! Ci"il Code7

A*T!+L, -344 !f the same thin$ should hae been sold to differentendees' the ownership shall be transferred to the person who mayhae first taken possession thereof in $ood faith' if it should bemoable property6hould it be immoable property' the ownership shall belon$ to theperson ac8uirin$ it who in $ood faith first recorded it in the *e$istry of5roperty6hould there be no inscription' the ownership shall pertain to theperson who in $ood faith was first in the possessionH and' in theabsence thereof' to the person who presents the oldest title' proidedthere is $ood faith 0-4/C)

BAR 664 A sold a lot to B +t t$e deed o% sale was not re&istered,

One #ear later! A sold sa)e lot to C and C was ale tore&ister t$e sa)e and otain a TCT o"er t$e lot in $isna)e,

$o $as t$e etter ri&$t o"er t$e lot E3'lain t$e le&al

asis %or #o+r answer,

ANSER

C will $a"e a etter ri&$t to t$e lot 'ro"ided t$at $e was

ale to re&ister t$e lot +nder $is na)e in &ood %ait$,

nder t$e Ci"il Code! in case o% do+le sale o% real'ro'ert#! t$e one w$o was ale to re&ister t$e 'ro'ert#in $is na)e in &ood %ait$ will e dee)ed t$e owner

SELLER 9S NONONER

STATSO9-

Article 1565 &oods are sold # a nonowner or does notsell +nder a+t$orit# or wit$ t$e consent o% t$e owner!t$e +#er ac*+ires no etter title to t$e &oods t$an t$eseller $ad

Stat+s o% t$e contract is "oid DP v. CA, 'ct. 19, 15

A*T!+L, -33 6ub;ect to the proisions of this Title' where $oods aresold by a person who is not the owner thereof' and who does not sellthem under authority or with the consent of the owner' the buyerac8uires no better title to the $oods than the seller had' unless theowner of the $oods is by his conduct precluded from denyin$ thesellerKs authority to sellNothin$ in this Title' howeer' shall affect:0-) The proisions of any factorsK act' recordin$ laws' or any otherproision of law enablin$ the apparent owner of $oods to dispose ofthem as if he were the true owner thereofH02) The alidity of any contract of sale under statutory power of sale orunder the order of a court of competent ;urisdictionH



13/19


0C) 5urchases made in a merchantKs store' or in fairs' or markets' inaccordance with the +ode of +ommerce and special laws 0n)

R9SPR-ENCEA ta2es B@s car wit$o+t consentA sells it to C w$o does not 2now ao+t t$e t$e%t

R+lin&: C does not ac*+ire &ood title to t$e car

B was +nlaw%+ll# de'ri"ed o% $is car +nderArt, 55D

C is not an 9P since it is essential t$at As$o+ld $a"e at least a "oidale title to t$ecar (Anar v. appellant wasMille$ally depriedK of her car' for the way by which Feist induced her topart with it is ille$al and punishable by law But does this #unlawfuldepriation% come within the scope of Article 33J of the New +iil+odeE

The fraud and deceit practiced by Feist earmarks this sale as aoidable contract 0Art -CJ) Bein$ a oidable contract' it is susceptible



14/19


15/19


PART F9E: RE/E-9ES 9N CASE OF BREAC8

Breac$ # Seller:Breac$ Relie%

Nondeli"er# S'eci%ic'er%or)ancewit$ da)a&es

arrant# Seller $asri&$t to sell A&ainste"iction 8iddende%ects Nona''arentser"it+de

Acce't &oods'l+sreco+')ent

Acce't &oods'l+s da)a&es

-on@tacce't 'l+sda)a&es

Rescind!re%+se toacce't orret+rn

-ist+rancein 'ossession

S+s'end'a#)ent o%'rice +ntilend o%dist+rance

NOTE:Tres'assin&is notdist+rance

To know that seller committed breach' know first the obli$ations ofthe seller 0see preious discussion)

*ecoupment 1 means to $et eerythin$ back' restored to the placewhere you were before the contract

Arrow 0mutally e(clusie) means that you cannot do eerythin$You must choose your option

BAR 66

S'o+ses Bion& and Linda are sellin& t$eir $o+se,Linda ne&otiated wit$ Ra# and t$e# a&reed on a %air'rice o% P /

Ra# con%ir)ed $is intention o% +#in& t$e $o+set$ro+&$ a letter,

Ra# 're'ared a deed o% sale and a )ana&er@s c$ec2%or P /, A%ter recei"in& t$e P/! Bion& si&ned t$edeed o% sale +t Linda was aroad

$en Linda ret+rned! s$e re%+sed to si&n since s$ec$an&ed $er )ind,

-oes Ra# $a"e an# ca+se o% action a&ainst Bion& andLinda Can $e reco"er da)a&es

ANSER Ra# can %ile a case %or s'eci%ic 'er%or)ance or rescissionwit$ a clai) %or da)a&es in eac$ case considerin& t$at Linda

co))itted a reac$ o% a 'er%ected contract o% sale,

Be able to distin$uish $uaranty from warranty

Breac$ # B+#erBreac$ Relie%/o"ale issold anddeli"er# is+nacce'ted

Rescission

-eli"er# isacce'ted +tno 'rice is'aid

Rescission

Title is

'assed +t'rice is not'aid

S+e %or 'rice

'l+s da)a&es

Re'+diationo% sale e%oredeli"er#

Rescissionwit$ da)a&es

9nailit# to'a# e%oredeli"er#

Rescissionwit$ da)a&es

-oes not 'a#'rice

Possessor#Lien

Sto''a&e intransit+

S'ecialri&$t toresale

S'ecialri&$t torescind

Conce't: n'aid Seller w$ole o% t$e 'rice $as not een 'aid or tendered ne&otiale doc+)ent o% title was recei"ed as conditional

'a#)ent and condition was ro2en

S'ecial Re)edies Possessor# Lien Sto''a&e in transit+

S'ecial ri&$t o% resale S'ecial ri&$t to rescind

S'ecial Ri&$ts ?>4 0resale and rescind) can onl#e +sed w$en Ri&$t 1 or $as een e3ercised

As special ri$hts' you must first choose either possessory lien orstoppa$e in transitu before you can choose between resale or rescind

Possessor# Lien (157 owners$i' $as een trans%erred to t$e +#er Seller is still +n'aid seller )a# retain &oods %or t$e 'rice w$ile still

in 'ossession o% t$e &oods Can onl# e e3ercised w$en

&oods were sold wit$o+t an# sti'+lation as tocredit OR

&oods were sold on credit +t ter) o% credit$as e3'ired OR

+#er eco)es insol"ent

A*T!+L, -32. 6ub;ect to the proisions of this Title' notwithstandin$that the ownership in the $oods may hae passed to the buyer' theunpaid seller of $oods' as such' has:0-) A lien on the $oods or ri$ht to retain them for the price while he is inpossession of themH02) !n case of the insolency of the buyer' a ri$ht of stoppin$ the $oodsin transitu after he has parted with the possession of themH0C) A ri$ht of resale as limited by this TitleH04) A ri$ht to rescind the sale as likewise limited by this TitleDhere the ownership in the $oods has not passed to the buyer' theunpaid seller has' in addition to his other remedies a ri$ht ofwithholdin$ deliery similar to and coe(tensie with his ri$hts of lienand stoppa$e in transitu where the ownership has passed to the buyer0n)

Sto''a&e in Transit+ (15! 15?67

Seller no lon&er $as 'ossession o% t$in& B+#er eco)es insol"ent

Seller can sto' t$e &oods in transit+ or res+)e'ossession at an# ti)e w$ile &oods are in transit

Seller en0o#s sa)e ri&$ts as i% $e ne"er 'arted'ossession wit$ t$in&

=oods are dee)ed in transit Period etween deli"er# to t$e carrier %or

trans)ission to t$e +#er +ntil +#er clai)s t$e)%ro) t$e carrier

=oods are re0ected # t$e +#er and carriercontin+es to $a"e 'ossession e"en i% t$e sellerre%+ses to ta2e &oods ac2

A*T!+L, -3C 6ub;ect to the proisions of this Title' when the buyerof $oods is or becomes insolent' the unpaid seller who has partedwith the possession of the $oods has the ri$ht of stoppin$ them intransitu' that is to say' he may resume possession of the $oods at anytime while they are in transit' and he will then become entitled to thesame ri$hts in re$ard to the $oods as he would hae had if he hadneer parted with the possession 0n)

!n this case' time is of the essence

Stat+s o% Sale /ade # B+#er w$ile in transit+ &* +2er sells ting 0ito+t consent o* seller 0ile in

transit+, te sellers rigt o* stoppage in transit+ &S $'-AFFEC-ED (155)

Rigt o* stoppage D'ES $'- de*eat title o* an innocentp+rcaser *or val+e 0o is iss+ed a negotialedoc+#ent o* title (155)

Prepared by !a""ie M. Sarona #for $%Manresa &''(%&'')*

"utually e(clusie

15


16/19


A*T!+L, -3C3 6ub;ect to the proisions of this Title' the unpaidsellerKs ri$ht of lien or stoppa$e in transitu is not affected by anysale' or other disposition of the $oods which the buyer may haemade' unless the seller has assented thereto!f' howeer' a ne$otiable document of title has been issued for$oods' no sellerKs lien or ri$ht of stoppa$e in transitu shall defeatthe ri$ht of any purchaser for alue in $ood faith to whom suchdocument has been ne$otiated' whether such ne$otiation be prioror subse8uent to the notification to the carrier' or other bailee who

issued such document' of the sellerKs claim to a lien or ri$ht ofstoppa$e in transitu 0n)

S'ecial ri&$t to Resell =oods A"ailale onl# a%ter e3ercise o% eit$er 'ossessor# lien

or sto''a&e in transit+ Can e e3ercised w$en:

&oods are 'eris$ale in nat+re seller e3'ressl# reser"es t$e ri&$t to resell

in case o% +#er@s de%a+lt +#er $as een in de%a+lt %or an

+nreasonale 'eriod o% ti)e

S'ecial Ri&$t to Rescind . 15! 15?4 A%ter e3ercise o% 'ossessor# lien or sto''a&e

/a# $old +#er liale %or da)a&es

A*T!+L, -3C4 An unpaid seller hain$ the ri$ht of lien or hain$stopped the $oods in transitu' may rescind the transfer of title andresume the ownership in the $oods' where he e(pressly reseredthe ri$ht to do so in case the buyer should make default' or wherethe buyer has been in default in the payment of the price for anunreasonable time The seller shall not thereafter be liable to thebuyer upon the contract of sale' but may recoer from the buyerdama$es for any loss occasioned by the breach of the contractThe transfer of title shall not be held to hae been rescinded by anunpaid seller until he has manifested by notice to the buyer or bysome other oert act an intention to rescind !t is not necessary thatsuch oert act should be communicated to the buyer' but the $iin$or failure to $ie notice to the buyer of the intention to rescind shallbe releant in any issue inolin$ the 8uestion whether the buyerhad been in default for an unreasonable time before the ri$ht ofrescission was asserted 0n)

Rescission o% Sale o% 9))o"aleI 15D in t$e sale o% i))o"ales! e"en i% it was

sti'+lated t$at +'on %ail+re to 'a# t$e 'rice at t$e ti)ea&reed +'on t$e rescission o% t$e contract s$all o% ri&$tta2e 'lace! t$e "endee )a# 'a#! e"en a%ter t$e e3'irationo% t$e 'eriod FOR AS LON= AS NO -E/AN- FORRESC9SS9ON OF T8E CONTRACT 8AS BEEN /A-E PON89/ E9T8ER -9C9ALLG OR BG A NOTAR9AL ACT

A*T!+L, -3J2 !n the sale of immoable property' een thou$h itmay hae been stipulated that upon failure to pay the price at thetime a$reed upon the rescission of the contract shall of ri$ht takeplace' the endee may pay' een after the e(piration of the period'as lon$ as no demand for rescission of the contract has been madeupon him either ;udicially or by a notarial act After the demand' the

court may not $rant him a new term 0-34a)

BAR 66? and G a&reed to a sale o% land 'a#)ent and deli"er# will e on Fer+ar# 1! 66 CLASE: i% no 'a#)ent is done on Fer+ar# 1! 66!

t$e sale is ATO/AT9CALLG RESC9N-E-

G did not 'a# on Fer+ar# 1! 66 +t o%%ered to 'a# ?da#s later

9s t$e contract RESC9N-E-ANSER

No, nder Article 15D! w$en an i))o"ale is soldand t$ere is a sti'+lation t$at +'on %ail+re to 'a# t$e'rice at t$e ti)e a&reed +'on t$e rescission o% t$econtract s$all o% ri&$t ta2e 'lace! t$e "endee )a#'a#! e"en a%ter t$e e3'iration o% t$e 'eriod FOR AS

LON= AS NO -E/AN- FOR RESC9SS9ON OF T8ECONTRACT 8AS BEEN /A-E PON 89/ E9T8ER-9C9ALLG OR BG A NOTAR9AL ACT

SALE ON 9NSTALL/ENT

RECTO LA . 144

O'tions w$en seller discontin+es instal)ents e3act %+l%ill)ent o% t$e oli&ation cancel t$e sale i% t$e +#er %ails to 'a# TO OR

/ORE install)ents

%oreclose t$e c$attel )ort&a&e i% t$e +#er %ails to 'a#TO OR /ORE install)ents (wit$o+t ri&$t to s+e %or+n'aid alance7

Recto Law: Sale o% /o"ales on 9nstall)ents Re)edies +nder 144 are alternati"e and not c+)+lati"e,T$is is ased on t$e 'rinci'le t$at no one s$o+ld enric$ $i)sel%at t$e e3'ense o% anot$er,

$en t$e +n'aid seller $as alread# en%orced t$e K #collectin& t$e a)o+nt d+e! $e can no lon&er rescind or cancel t$esa)e, 8e cannot also %oreclose t$e )ort&a&e o"er t$e S/, Fort$e e3ercise o% one in %+ll %orecloses t$e ri&$t to e3ercisere)edies ($onato v. CA, $ov. "", 185)

Recto Law: Sale o% /o"ales on 9nstall)ents

9% t$e seller %orecloses t$e c$attel )ort&a&e! it can nolon&er s+e %or de%icienc#


17/19


S+''osin& de"elo'er de"elo'ed t$e s+di"ision +tA a%ter 'a#in& 4 )ont$s o% install)ents sto''ed'a#in&! disc+ss t$e ri&$ts and oli&ations o% t$e'arties,

ANSER NO, t$e action o% t$e de"elo'er is wron&, nder P-

D5! a +#er o% a s+di"ision lot )a# desist %ro)'a#in& %+rt$er install)ents w$en t$e de"elo'er %ailsto de"elo' t$e s+di"ision accordin& to t$e a''ro"ed'lans and wit$in t$e 'eriod a&reed on, T$e +#er )a#&et all t$e install)ents $e )ade and t$ese are NOTdee)ed %or%eited,

Ass+)in& t$e de"elo'er de"elo's t$e s+di"ision+t A re%+ses to 'a# a%ter 4 )ont$l# install)ents! $es$all e entitled to 'a# wit$o+t interest $isinstall)ents in arrears wit$in a &race 'eriod o% 4)ont$s or 1 )ont$ %or e"er# ann+al install)ent,

9% $e %ails to 'a# wit$in t$e &race 'eriod! $e is entitledto e rei)+rsed 56 o% $is 'a#)ents since $e $as)ade at least ann+al install)ents,

PART SEEN : ET9N=9S8/ENT OF SALE

=RON-S 'a#)ent


18/19


(c7 all or s+stantiall# all! o% t$e %i3t+res and e*+i')ent +sedin > ao+t t$e +siness o% t$e seller! )ort&a&or! trans%eror orassi&nor

Oli&ations o% SellerI -eli"er# o% sworn state)ent o% listin& o% creditorsI 'rorata a''lication o% 'roceedsI written ad"ance disclos+re to creditors

Penalt# %or iolation

9)'rison)ent not less t$an )os, OR Fine not e3ceedin& P5!666,66 OR ot$

BAR 66I See2in& to strea)line its o'erations and to ail o+t

its losin& "ent+res! t$e stoc2$olders o% Cor'oration+nani)o+sl# ado'ted a 'ro'osal to sell s+stantiall#all o% t$e )ac$ineries and e*+i')ent +sed in and o+tits )an+%act+rin& +siness and to sin2 t$e 'roceedso% t$e sale %or t$e e3'ansion o% its car&o trans'ortser"ices,

I o+ld t$e transaction e co"ered # t$e 'ro"isionso% t$e B+l2 Sales Law

ANSERI Ges! t$e 'ro'osed sale is co"ered # t$e B+l2 Sales

Law, T$e sale in"ol"es all or s+stantiall# all! o% t$e

%i3t+res and e*+i')ent +sed in > ao+t t$e +sinesso% t$e seller, 8ence! Cor' )+st deli"er a swornstate)ent o% listin& o% creditors! )a2e a 'rorataa''lication o% 'roceeds and a written ad"ancedisclos+re to creditors

That is still the duty of the corporation despite the fact that there is

no mention of creditors

RA . RETA9L TRA-E L9BERAL9AT9ON ACT OF 666

Retail Trade )eans an# act! occ+'ation or callin& o%$ait+all# sellin& direct to t$e &eneral '+lic )erc$andise!co))odities or &ood %or cons+)'tion,

&: Are sales of cars includedE

A: Not included because it is not for consumption 0"aam askedAtty uremdes and this was his answer)

#for consumption% must be read in entirety 1 publicmerchandise for consumption' commodities for consumption or$ood for consumption

T$e restriction o% t$is law s$all not a''l# to t$e%ollowin&::

(a7 Sales # a )an+%act+rer! 'rocessor!laorer! or wor2er! to t$e &eneral '+lic t$e'rod+cts )an+%act+red! 'rocessed or 'rod+ced# $i) i% $is ca'ital does not e3ceed P166!666,66;

(7 Sales # a %ar)er or a&ric+lt+rist sellin&t$e 'rod+cts o% $is %ar);

(c7 Sales in resta+rant o'erations # a $otel

owner or inn2ee'er irres'ecti"e o% t$e a)o+nto% ca'ital: Pro"ided! T$at t$e resta+rant isincidental to t$e $otel +siness: and

(d7 Sales w$ic$ are li)ited onl# to 'rod+cts)an+%act+red! 'rocessed or asse)led # a)an+%act+rer t$ro+&$ a sin&le o+tlet!irres'ecti"e o% ca'italiation,

I8i&$end or l+3+r# &oodsJ s$all re%er to &oodsw$ic$ are not necessar# %or li%e )aintenance and w$osede)and is &enerated in lar&e 'art # t$e $i&$er inco)e&ro+'s, L+3+r# &oods s$all incl+de! +t are not li)ited to!'rod+cts s+c$ as: 0ewelr#! randed or desi&ner clot$in&and %ootwear! wearin& a''arel! leis+re and s'ortin&&oods! electronics and ot$er 'ersonal e%%ects

Treat)ent o% Nat+ralBorn Citiens Nat+ralorn citien o% t$e P$ili''ines w$o $as lost

$is P$ili''ine citiens$i' +t w$o resides in t$eP$ili''ines s$all e &ranted t$e sa)e ri&$ts asFili'ino citiens %or '+r'oses o% t$is Act,

Forei&n E*+it# Partici'ationCate&or# Ca'italiation Owners$i' Co))ent

A V SW,5 / $oll# #Fili'inos

B SW,5/VSW,5/

1st #ears%ro)t$islaw6%orei&n

T$erea%ter166%orei&nowned

9n"est)ents$all

note

9% %orei&ne*+it#6!)+sto%%er?6o%t$eire*+it#toFili'inoswit$inei&$t#ears%ro)

C SW,5 / or)ore

$oll#%orei&n

owned

lesst$an

SW?6!

666

start o%o'erations

- SW56!666 or)ore

8i&$end orl+3+r#'rod+cts

/aintenance o% Ca'ital Forei&n in"estor )+st )aintain t$e %+ll a)o+nt o% t$e

'rescried )ini)+) ca'ital NLESS %orei&n in"estor $as noti%ied t$e SEC and t$e

-T9 o% its intention to re'atriate its ca'ital and ceaseo'erations in t$e P$ili''ines,

Fail+re to )aintain t$e %+ll a)o+nt o% t$e 'rescried)ini)+) ca'ital 'rior to noti%ication o% SEC and t$e -T9 'enalties or restrictions on an# %+t+re tradin&

acti"ities


19/19


Penalties 9)'rison)ent o% not less t$an #ears and 1 da# +t

not )ore t$an #ears! and a %ine o% not less t$an P1/illion +t not )ore t$an 6 /illion ,

9n t$e case o% associations! 'artners$i's orcor'orations . 'enalt# i)'osed on 'artners!'resident! directors! )ana&er and ot$er o%%icersres'onsile %or t$e "iolation,

Forei&n o%%ender de'orted i))ediatel# a%ter ser"iceo% sentence,

Fili'ino '+lic o%%icer o%%ender 'enalt# 'l+sdis)issal and 'er)anent dis*+ali%ication %ro) '+lico%%ice,

Keep smiling - it makes people wonder what you've been up to.

-- Author Unknown


Documents

Sales PowerPoint in Doc