Course Outline

I.In General
Definition - Art. 1458(1)
Villonco Realty Company v. Bormaheco, Inc., 65 SCRA 352, July 25, 1975
Ang Yu Asuncion v. Court of Appeals, 238 SCRA 602, December 2, 1994
Vda. De Ape v. Court of Appeals, 456 SCRA 193, April 15, 2005
Torcuator v. Bernabe, 459 SCRA 439, June 8, 2005
History
Governing Law RA No. 386 (August 30, 1950); Arts. 1488, 1637
Commercial & Civil Sales
Characteristics
consensual Art. 1475
bilateral - Art. 1458
onerous Art. 1350
commutative - Art. 2010
principal
nominate Art. 1458
Gaite v. Fonacier, 2 SCRA 830, July 31, 1961
Stages
Negotiation
Perfection Arts. 1315, 1475
Performance - Arts. 1191, 1403(2)
Consummation
Ainza v. Padua, 462 SCRA 614, June 30, 2005
Kinds of Sale - Arts. 1458(2), 1488, 1544, 1403,
Maceda Law, Recto Law, 1477, 1501)
As to the nature of the subject matter
Sale of real property
Sale of personal property
As to whether the object is tangible or intangible/corporeal or incorporeal
sale of thing
sale of right
As to validity or defect of the transaction
valid sale
rescissible
voidable
unenforceable

void
As to the presence or absence of condition
absolute sale
conditional sale [Art. 1458]
contract to sell
McCullough v. Berger, 43 Phil 823, September 26, 1922
Dichoso v. Roxas, 5 SCRA 781, July 31, 1962
Luzon Brokerage v. Maritime Building, 43 SCRA 93, January 21, 1972
Portic v. Cristobal, 456 SCRA 577, April 22, 2005
Heirs of Jesus M. Mascunana v. Court of Appeals, 461 SCRA 186, June 23,
2005
Ursal v. Court of Appeals, 473 SCRA 52, October 14, 2005
Carrascoso, Jr. v. Court of Appeals, 477 SCRA 666, December 14, 2005
Sacobia Hills Devt Corp. v. Ty, 470 SCRA 395, September 20, 2005
Keppel Bank V. Adao, 473 SCRA 372, October 19, 2005
Edrada v. Ramos, 468 SCRA 597, August 31, 2005
Distinguished from other transactions
1. Contract for a Piece of Work (Massachusetts Rule) - Art. 1467
2. Contract of Lease with Option to Buy
3. Dacion en Pago Art. 1245
Barter or Exchange Arts. 1468, 1638, 1954
Agency to Sell Art. 1466
Heacock v. Buntal Manufacturing Co., 66 Phil 245, September 26, 1938
Quiroga v. Parsons Hardware, 38 Phil 501, August 23, 1918
Ker v. Lingad, 38 SCRA 524, April 30, 1971
Del Monte Phils. v. Aragones, 461 SCRA 139, June 23, 2005
II.Elements of a Contract of Sale
Essential Elements
Consent of the contracting parties
Parties to the Contract
Capacity of Parties- Arts. 1489, 1390, 1403
absolute - Arts. 1327-1328, Art. 234Family Code (FC) as amended by RA
6809
relative Art. XII, Secs. 7 & 8, 1987 Constitution
Arts. 1490-1492, 1533(5), 1476(4), 124FC,
Rodriguez v. Mactal, 60 Phil 13, April 4, 1934
Rubias v. Batiller, 51 SCRA 120, May 29, 1973
Miguel v. Catalino, 26 SCRA 234, November 29, 1968
Estate of Salvador Serra Serra v. Heirs of Primitivo Hernaez, 466 SCRA 120,
August 9, 2005
Mapalo v. Mapalo, 17 SCRA 114, May 19, 1966
Subject matter (things & rights)- Arts. 1347, 1311, 1636(goods)
Requisites- Arts. 1458(1), 1459-1462, 1347-1349

Rules on the object of a contract of sale- Arts. 1463-1465

Assignment of Credit and Other Incorporeal Rights- Arts. 1624-1635
Martinez v. Court of Appeals, 56 SCRA 647, April 29, 1974
Melliza v. City of Iloilo, 23 SCRA 477, April 30, 1968
Cause - Arts. 1350, 1352-1353
Price certain in money- Arts. 1469, 1471-1474, 1308; RA 529, RA8183, PD72
Earnest Money- Art. 1482
Lesion - Arts. 1470, 1355
Villonco Realty Company v. Bormaheco, Inc., supra
Spouses Doromal , Sr. and Salas v. Court of Appeals, 66 SCRA 575,
September 5, 1975
Goldenrod v. Court of Appeals, 299 SCRA 141, November 24, 1998
Edrada v. Ramos, 468 SCRA 597, August 31, 2005
Philippine Free Press, Inc. v. Court of Appeals, 473 SCRA 639, October 24,
2005
Cruz v. Fernando, Sr., 477 SCRA 173, December 9, 2005
Morales Devt Co. v. Court of Appeals, 27 SCRA 484, March 28, 1969
Laperal v. Rogers, 13 SCRA 26, January 30, 1965
De Leon v. Salvador, 36 SCRA 566, December 28, 1970
Velasco v. Court of Appeals, 51 SCRA 439, June 29, 1973

Natural Elements
warranties
subrogation
Accidental Elements
III.Perfection of the Contract
When perfected- Arts. 1475-1476, 1479(1)
Cruz v. Fernando, Sr., supra
Contract of Option- Arts. 1479, 1324
Sanchez v. Rigos, 145 SCRA 368, June 14, 1972
Equatorial Realty Devt, Inc. v. Mayfair Theater, Inc., 264 SCRA 483,
November 21, 1996
Formalities of Contract of Sale (Statutes of Fraud) - Arts. 1483, 1403, 1625,
1356-1358, 1874; Sec. 22 Act 1147 (Cattle Registration Act)
Paredes v. Espino, 22 SCRA 1000, March 13, 1968
Inigo v. Maloto, 21 SCRA 246, September 28, 1967
Cuyugan v. Santos, 34 Phil 100, March 3, 1916
Dalion v. Court of Appeals, 182 SCRA 872, February 28, 1990
Yuvienco v. Dacuycuy, 104 SCRA 668, May 27, 1981
Vda. De Jomoc v. Court of Appeals, 200 SCRA 74, August 2, 1991
Santos v. Manalili, 475 SCRA 679, November 22, 2005
IV.Rights and Obligations of the Vendor - Art. 1495

To transfer ownership
Who can transfer ownership?
General Rule - Arts. 1505-1506, 1547
Cuison v. Remoto, 472 SCRA 274, October 11, 2005
Exceptions: Art. 1505
Estoppel- Arts. 1431, 1433-1434
Sale by an apparent owner
Purchase at Merchants Store, Market or Fair Art. 559
Sun Bros. v. Velasco, 54 O.G. 5143, August 11, 1958
Salonga v. Concepcion, 470 SCRA 291, September 20, 2005
Sigaya v. Mayuga, 467 SCRA 341, August 18, 2005
Premiere Devt Bank v. Court of Appeals, 453 SCRA 630, March 18, 2005
Siy Cong Bieng and Co. v. HSBC, 56 Phil 598 [1932]
Masiclat v. Centeno, May 31, 1956
When/How transfer is effected? - Arts. 1477, 1459, 1496, 1547, 1588
General Rule:
Ilao-Quianay v. Mapile, 474 SCRA 246, October 25, 2005
Exceptions:
sale or return - Art. 1502(1)
sale on approval or trial Art. 1502(2)
conditional sales - Arts. 1478, 1503(1), 1458(2)
Vallarta v. Court of Appeals, 150 SCRA 336, May 29, 1987
Risk of Loss or Deterioration (Total/Partial)- Arts. 1504, 1480, 1493-1494,
1538(1189), 1163, 1174
General Rule: Res perit domino
Exceptions:
Stipulation
Security Title
Delay
Lawyers Cooperative v. Tabora, 13 SCRA 762, April 30, 1965
De Lizardi v. Yaptico, 30 Phil 211, March 22, 1915
Sun Bros. Appliances v. Perez, 7 SCRA 977, April 30, 1963
Double Sales- Art.1544
Rule (Movables/Immovables)
Cuison v. Remoto, supra
Ulep v. Court of Appeals, 472 SCRA 274, October 11, 2005
Sigaya v. Mayuga, supra
Bautista v. Sioson, 39 Phil 615, February 11, 1919
Lichauco v. Berenguer, 39 Phil 643, February 27, 1919
Paylago v. Jarabe, 22 SCRA 1247, March 27, 1968
Quimson v. Rosete, 87 Phil 159, August 9, 1950
When not applicable?
unregistered lands

Carumba v. Court of Appeals, 31 SCRA 558, February 18, 1970

Vda. De Jomoc v. Court of Appeals, supra
Hanopol v. Pilapil, 7 SCRA 452, February 28, 1963
To deliver the object and its accessions - Art. 1537(1164)
Kinds of Delivery of Incorporeal Property (Quasi-tradition) - Arts. 1501, 2095
Kinds of Delivery of Corporeal Property (Tradition) - Art. 1477
Actual (Real or Material) - Art. 1497
Constructive (Symbolic or Formal)
delivery by the execution of a public instrument- Art. 498(1)
tradition longa manu- Arts. 1498(2), 1499
tradition brevi manu- Art. 1499
tradition constitutum possessorium- Art. 1500
delivery to a common carrier- Arts. 1503, 1523, 1582
when goods are in the possession of a third person- Art. 521(3)
Kuenzle & Streiff v. Macke & Chandler, 14 Phil 610, December 16, 1909
Addison v. Felix, 38 Phil 404, August 3, 1918
Daguilan v. IAC, 168 SCRA 22, November 28, 1988
Pasagui v. Villablanca, 68 SCRA 18, November 10, 1975
Dy, Jr. v. Court of Appeals, 198 SCRA 826, July 8, 1991
Power Commercial and Indl Corp. v. CA, 274 SCRA 597, June 20, 1997
Florendo v. Foz, 20 Phil 388, October 24, 1911
Philippine Suburban Devt. Corp. v. The Auditor General, 63 SCRA 397, April
18, 1975
Board of Liquidators v. Floro, 110 Phil 482, December 29, 1960
Quality/Quantity)- Arts. 1481, 1522, 1539-1543, 1630, 1632-1633
Rudolf Lietz, Inc. v. Court of Appeals, 478 SCRA 451, December 19, 2005
Santa Ana, Jr. v. Hernandez, 18 SCRA 973, December 17, 1966
Asiain v. Jalandoni, 45 Phil 296, October 23, 1923
Azarraga v. Gay, 52 Phil 599, December 29, 1928
Not bound to deliver when? - Arts. 1524, 1536(1198)
Visayan Distributors, Inc. v. Flores, 92 Phil 145, October 15, 1952
Place of Delivery - f.o.b., c.i.f., f.a.s. )- Arts. 1521(1), 1251, 1582
Behn, Meyer & Co. v. Yangco, 38 Phil 606, September 18, 1918
Bislig Bay Lumber Co. v. CIR, 1 SCRA 156, January 28, 1961
Time of Delivery - Art. 1521(2)
Republic v. Litton & Co., 94 Phil 52, November 28, 1953
Prescription- Art. 1543
Warranties - Arts. 1495, 1567, 1571, 1628, 1629, 1631
Express- Art. 1546
Carrascoso, Jr. v. Court of Appeals, supra
Philippine Manufacturing Co. v. Go Joco, 48 Phil 621, January 21, 1926
Distinguished from:

condition)- Art. 1545

dealers talk
false representation
Implied warranties
warranty against eviction (warranty of title) )- Arts. 1548-1559
warranty against hidden encumbrances or defects)- Arts. 1560, 1561, 15671581, 613, 615
warranty of quality)- Arts. 1562-1565, 1586, 1599(5)
Guinhawa v. People, 468 SCRA 278, August 25, 2005
Power Commercial and Indl Corp. v. CA, supra
Bautista v. Lasam, 72 Phil 506, June 27, 1941
Mendoza v. Caparros, 94 Phil 317, January 30, 1954
Others)- Arts. 1480, 1163, 1538, 1537, 1164, 1487, 1521 last par.
V.Rights and Obligations of the Vendee
Payment of Price) - Arts. 1582, 1590, 1593
Time and Place
Liability for interest)- Art. 1589
Right of Inspection/Examination)- Arts. 1584, 1481
Right to the fruits- Arts. 1537, 1164
Acceptance- Arts. 1582-1583, 1585-1588, 1593
The Maceda Law (RA 6552) Sale of Immovables on Installment
Ramos v. Heruela, 473 SCRA 79, October 14, 2005
Fabrigas v. San Francisco del Monte, Inc. 476 SCRA 247, November 25, 2005
VI.Remedies for Breach of Contract
Remedies of an Unpaid Seller- Arts. 1525-1526
withhold delivery (possessory lien) - Arts.1527-1529, 1535, 2241(3)
stoppage in transitu )- Art. 1530-1532, 1535, 1636(2)
resell the goods- Art. 1533
rescission- Arts. 1534, 1597, 1591-1593, 1191, 1556, 1484, 1532, 1567,
1580
action for the price specific performance- Art. 1595
action for damages- Art. 1596
Katigbak v. Court of Appeals, 4 SCRA 242, January 31, 1962
Song Fo & Co. v. Hawaiian-Phil. Co., 47 Phil 821, September 16, 1925
Weyerhauser Timber Co. v. First Natl Bank of Portland, 38 P2d 48

Remedies of the Buyer- Arts. 1539, 1542-1543, 1567, 1571, 1599

specific performance- Arts. 1598
damages
rescission- Arts. 1481
Recto Law Sale of Movables on Installment- Arts. 1484-1486

Luneta Motor C. v. Salvador, 108 Phil 1037, July 26, 1960

Industrial Finance Corp. v. Ramirez, 77 SCRA 152, May 26, 1977
Northern Motors, Inc. v. Sapinoso, 33 SCRA 1970, May 29, 1970
UMC v. Dy Hian Tat, 28 SCRA 161, May 16, 1969
Cruz v. Filipinas Investment & Finance Corp., 23 SCRA 791, May 27, 1968
VII.Extinguishment of Sale
Causes- Arts. 1600, 1231, 1626, 1634-1635
Redemption
Conventional - Art. 1601
Pacto de Retro Sale- Arts. 1607, 1609, 1611-1518, 1676-1677
Equitable Mortgage- Arts. 1602-1605
Period to Redeem- Art. 1606
Who may exercise the right to redeem? - Arts. 1608, 1610, 1612, 1614-15
Cadungog v. Yap, 469 SCRA 561, September 12, 2005
Salonga v. Concepcion, supra
Go v. Bacaron, 472 SCRA 339, October 11, 2005
Gerardino, Sr. v. CFI Capiz Br. III, 80 SCRA 646, December 29, 1977
Yturralde v. CA, 43 SCRA 315, February 28, 1972
Marquez v. Valencia, 77 Phil 782, December 22, 1946
Quinga v. Court of Appeals, 3SCRA 66, September 19, 1961
Gloria-Diaz v. Court of Appeals, 84 SCRA, July 31, 1978
Heirs of Francisco Parco v. Haw Pia, 45 SCRA 164, May 30, 1972
Legal- Arts. 1619-1623
Spouses Doromal , Sr. and Salas v. Court of Appeals, supra
Almendrada v. Ngo, 471 SCRA 311, September 30, 2005
Aguilar v. Aguilar, 478 SCRA 187, December 16, 2005
Villasor v. Medel, 81 Phil 546, September 29, 1948
Ortega v. Orcine, 38 SCRA 276, March 31, 1971