!

Law$on$Sales$ 5. Commutative!!the!value!of!the!thing!is!equivalent!to!the!
Ben$Dela$Cruz$2D$SY$201322014$ value!exchanged.!(XPN:!Aleatory!Contracts,!in!some!
Atty.$Irvin$Fabella$ contracts!of!sale,!what!one!receives!may!in!time!be!greater!
$
Contract(of(Sale((is!a!contract!where!one!obligates!himself! or!smaller!than!what!he!has!given.!
(seller/vendor)!to!transfer!ownership!and!to!deliver!a! 6. Nominate!!specific!name!given!by!law.!
determinate!thing!and!the!other!(buyer/vendee)!to!pay! !
therefor!a!sum!certain!in!money!or!its!equivalent.! Chose(in(Action(/(Sale(of(Right((refers!to!rights!or!those!
! things!or!property!which!are!intangible.!
Primary(Purpose((to!transfer!ownership.! !
! Chose(in(Possession(/(Sale(of(Property((refers!to!rights!or!
Essential(Elements:( those!things!or!property!which!are!tangible.!
! !
1. Consent!or!meeting!of!the!minds!of!the!parties.!!!!!!!!!!!!! Aleatory(Contract((contract!where!the!consideration!paid!is!
Vendor!!to!transfer!ownership!of!and!to!deliver!a! not!equivalent!to!the!value!of!the!thing!purchased.!
determinate!thing.!!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! !!! !
Vendee!!to!pay!the!price!certain!in!money!or!its!equivalent.! Characteristics(of(Wholesale:!
2. Subject!matter!that!is!determinate!or!at!least!determinable.! !
3. Price!certain!in!money!or!its!equivalent.! 1. Quantity!is!large.!
! 2. Resold!unaltered!and!for!profit!
Characteristics(of(Sale:((BROPCCN)( 3. Purchaser!has!no!use!of!the!goods!or!its!in!excess!of!his!
( requirement.!
1. Bilateral!&!Reciprocal!!imposes!obligation!on!both!parties.! 4. Seller!must!be!habitually!engaged!in!selling!a!large!number!
(Not!Unilateral)! of!quantities.!
2. Onerous!!contract!where!there!is!a!price/consideration.! (
(Not!Gratuitous)! Barter((it!is!a!contract!of!exchange!wherein!one!party!binds!
3. Principal!!can!stand!on!its!own,!does!not!depend!on! himself!to!give!one!thing!in!consideration!of!the!others!
another!contract!for!it!to!be!valid/exist.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! promise!to!give!another!thing.!
(Not!Accessory)! !
4. Consensual!!perfected!by!mere!consent.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Contract(for(a(Piecework((contractor!binds!himself!to!
(Not!Real)! execute!a!piece!of!work!for!the!employer!in!consideration!of!a!
!
!
certain!price.!And!that!thing!is!upon!the!special!order!of!the! !
said!customer,!which!is!not!made!available!to!the!general! Sale(of(Consignment((where!a!person!or!entity!is!
market.! commissioned!to!sell!a!specific!thing!for!the!seller.!It!is!a!sale!
! thru!an!agent!or!dealer.!
Goods((those!chattels.!Personal!properties! !
! !
Kinds(of(Goods:( SALE(vs.(AGENCY(
( (
1. Future!Goods! Sale:(
2. Existing!Goods! (
! 1. Seller!receives!the!purchase!price!and!directly!receives!the!
Kinds(of(Future(Goods:( payment.!
! 2. Buyer!becomes!the!owner!of!the!object!upon!its!delivery.!
1. Goods!to!be!MANUFACTURED!(ex.!Cars)! 3. If!goods!are!defective,!he!cannot!return!the!item.!(Remedy:!
2. Goods!which!are!to!be!RAISED!(ex.!Animals)! Damages)!
3. Goods!to!be!acquired!by!the!seller!AFTER!the!perfection!of! 4. NOT!unilaterally!revocable.!
the!contract.! !
4. Goods!whose!acquisition!depends!upon!CONTINGECY,! Agency:(
which!may!or!may!not!be!acquired.! (
! 1. The!agent!receives!the!payment!in!trust!for!the!seller!with!
Fungible(Goods((based!on!the!intention!of!the!parties,!that! the!obligation!to!deliver!such!price!to!the!seller.!The!seller!
such!thing!may!be!substituted.! indirectly!receives!such!payment.!
NonIFungible(Goods((CANNOT!be!substituted.! 2. Even!if!there!is!delivery!to!the!agent,!such!agent!does!not!
BASIS:(Intention!of!the!parties.! acquire!ownership!over!the!object.!
! 3. Agent!can!return!the!object/goods!if!defective!
Consummable(Goods((by!the!nature!of!the!object,!it!cannot! 4. ESSENTIALY!revocable.!
be!used!without!being!consumed.! !
NonIConsumable(Goods((can!be!used!without!being! TEST(to(determine(whether(Sale(or(Agency:(
consumed.! 1. Determination!whether!there!is!transfer!of!ownership!
BASIS:(Nature!of!the!thing!itself.! 2. Resulting!relationship!from!contract!or!transaction.!
!
!
! 3. The!price!was!fixed!NOT!in!ACCORDANCE!to!the!
Price((signifies!sum!stipulated!as!the!equivalent!of!the!thing! instructions!and!intentions!of!the!parties.!
sold!and!all!the!considerations!and!incidents!taken!to!fix!the! !
price!or!the!value!of!the!thing!put!to!the!debit!of!the!vendee! Effect(of(Unascertainability((the!contract!of!sale!is!
and!agreed!by!him.! INEFFICACIOUS.!
! !
! Inadequate(Price((insufficient!to!satisfy!the!actual!value!of!
! the!thing.!
! !
PRICE(is(CERTAIN(when:( !
( Kinds(of(Inadequate(Price:(
1. The!parties!specifically!STIPULATED!the!price;! (
2. If!No.!1!is!absent,!it!is!determinable!by!making!reference!to! 1. GROSS!
another!thing!which!is!certain;!or! 2. NEGLIGIBLE!
3. Determination!is!LEFT!to!the!JUDGMENT!off!a!specified! !
person/s;!or! ARTICLE(1470!
4. It!is!certain!with!REFERENCE!to!certain!fact/s.! Gross(inadequacy,(Contract(VALID?(
! (
Requisites(of(a(VALID(Price:( The!GR(is!that!gross!inadequacy!will!NOT!invalidate!the!
! contract!of!sale.!
1. It!is!CERTAIN/ascertainable;! !
2. It!is!REAL!and!NOT!Fictitious;! XPN:!
3. It!is!UNCONSIONABLE!or!NOT!GROSSLY!INFERIOR!to!the! 1. Consent!is!VITIATED!(Contract!is!Voidable)!
value!of!the!thing.! 2. If!it!can!be!inferred!that!the!INTENTION!of!the!parties!
4. FORM!of!money!or!its!equivalent.! is!that!of!DONATION.!(Not!sale!but!donation,!if!it!
! complies!with!the!requisites!of!donation)!
Grounds(to(impugn(a(price(fixed(by(3rd(Person:( 3. When!it!is!SHOCKING!to!the!conscience!of!the!court.!!!
! (In!case!of!Judicial!Sale)!
1. 3rd!person!is!in!BAD!FAITH! 4. When!there!is!LESION.!
2. Determination!is!made!by!MISTAKE! !
!
!
ARTICLE(1471.( If!the!value!of!the!MONEY!is!GREATER!than!one!IN!KIND,!the!
( contract!is!that!of!SALE.!!
If(the(price(is(SIMULATED,(the(sale(is(VOID.( !
( If!the!value!of!the!thing!or!the!one!IN!KIND!is!GREATER!than!
Fictitious(and(NO(Consideration((VOID( the!MONEY!paid,!the!contract!is!BARTER.!
! !
Classifications(of(Simulated(Price:( Contract(of(Sale,(When(is(it(Perfected?(
( It!is!perfected!from!the!moment!of!the!meeting!of!the!minds!
1. Absolutelty(Simulated((parties!DID!NOT!INTEND!to!be! upon!the!thing!that!is!the!object!of!the!contract!and!upon!the!
bound!at!all.!(Remedy:!Reformation)! price.!
2. Relatively(Simulated(!parties!conceal!their!true! !
agreement.!(Remedy:!Declaration!of!Nullity!which!is! !
Imprescriptible)! In(Case(of(Suspensive(condition:(
! Upon!the!fulfillment!of!the!condition,!the!contract!is!deemed!
If(the(PRICE(was(NOT(paid,(the(Contract(is(VALID.( perfected.!
There!is!price,!only!that!it!was!not!paid.! !
! Option(Money(I(consideration!distinct!from!the!price!for!the!
PRICE(CANNOT(be(DETERMINED((Contract(is( seller!to!be!bound!by!the!option!contract.!
INEFFECTIVE( !
( Option(Contract(I!is!a!preparatory!contract!granting!privilege!
Standard(Reasonable(Price((Fair!market!value.! to!buy!or!sell!within!a!specified!period!and!at!a!determined!
Reasonable!sum!which!the!property!would!command!at!a!fair! price.!The!privilege!is!given!to!the!woulddbe!buyer,!upon!a!
sale!by!man!willing!to!sell!but!not!obliged!to!sell!and!by!the! payment!of!a!consideration!separate!and!distinct!from!the!
buyer!willing!to!buy!but!not!obliged!to!buy.! purchase!price.!
! !
Rules(on(Barter:( ARTICLE(1479((Par(2)!!an!accepted!unilateral!promise!to!
( buy!or!to!sell!a!determinate!thing!for!a!price!certain!is!binding!
If!the!intention!of!the!parties!does!not!clearly!appear,!the! upon!the!promissor!if!the!promise!is!supported!by!a!
value!of!the!thing!and!the!money!should!be!considered.! consideration!distinct!from!price.!
! !
!
!
Option(without(Seperated(consideration((VOID( Option(Money:(
(Consideration!!anything!of!value)! (
! 1. Makes!an!option!contract!
Elements(of(a(Valid(Option(Contract:( 2. May!not!be!returned!(They!can!stipulate!to!return.!The!
( seller!may!refuse)!
1. CONSENT! 3. Distinct!from!the!price.!
2. SUBJECT!MATTER!!Possible,!Licit,! !
Determinate/determinable! Earnest(Money:(
3. PRESTATION!!a!consideration!SEPARATE!and!DISTINCE! (
from!the!purchase!price.! 1. Forms!part!of!the!contract!of!sale!
! 2. Should!be!returned!(Unless!otherwise!provided)!
Note:(Any(of(the(above(elements(is(missing.((VOID( 3. Forms!part!of!the!price.!
! !
! Sale(by(Auction((it!is!perfected!when!the!auctioneer!
Obligations(on(the(part(of(the(OFFEROR:( announces!its!perfection!by!the!fall!of!the!hammer,!or!in!other!
( manner.!!
1. Personal!obligation!not!to!offer!to!any!3rd!person!the!sale! May!withdraw!his!bid!prior!to!the!fall!of!hammer.!
of!the!object!of!the!option.! If!there!is!reservation!on!the!part!of!the!auctioneer,!he!may!
2. Personal!obligation!not!to!withdraw!the!offer!or!option! withdraw!the!thing!even!if!there!is!a!bid,!because!there!is!
during!the!option!period.! merely!an!offer,!which!is!not!yet!accepted.!
3. Obligation!to!hold!the!subject!matter.! !
! ByIBidders/Puffers((are!persons!who!were!induced!or!
Earnest(Money(I(it!is!the!sum!of!money!paid!to!the!vendor!by! employed!by!the!seller!to!bid!in!his!behalf!in!an!auction!sale!or!
the!vendee!to!show!the!latters!willingness!to!consume!the! induced!or!employed!by!the!auctioneer!to!bid!in!behalf!of!the!
contract!of!sale.!When!such!money!is!paid,!it!is!considered! seller.!(Without!such!notice!it!is!Fraudulent)!
part!of!the!purchase!price!and!proof!of!the!perfection!of!the! !
contract.! Primary(Purpose(of(Sale!!transfer!ownership!
! !
OPTION(MONEY(vs.(EARNEST(MONEY( Actual(deliveryI!Physical!
( (
!
!
Constructive(delivery:( 2. Cancel!the!sale,!if!the!vendee!fails!to!pay!2!or!more!
1. Tradicion!Symbolica!!delivery!of!certain!symbols! installments!or!
representing!the!thing!to!be!delivered.! 3. Foreclose!the!chattel!mortgage,!if!one!is!constituted!
2. Tradicion!Instrumental!!delivery!of!the!instrument!of! and!when!the!vendee!fails!to!pay!2!or!more!
conveyance.! installments.!(Upon!the!foreclosure!of!the!Chattel!
3. Tradicion!Longa!Manu!!consist!in!pointing!of!the!thing! Mortgage,!the!vendor!shall!not!recover!any!unpaid!
within!sight! balance!from!the!vendee.!Any!stipulation!to!the!
4. Tradicion!Brevi!Manu!!continuation!of!possession!over! contrary!is!VOID)!
the!thing!delivered.!The!buyer!already!has!the!thing!to!be! !
sold!in!his/her!possession.! MACEDA(LAW(
5. Tradicion!Constitutum!Possessorium!!consists!in!the! The!sale!is!that!of!a!REAL!property!in!installments.!Its!
owners!continuous!possession!of!the!property!he!had!sold! important!features!are!the!following:!
to!another,!and!his!present!possession!is!no!longer!of!an! !
owner!but!under!other!capacity!(lessee)! 1. Where!the!vendee!has!already!paid!installments!for!at!
6. !By!operation!of!law!!inheritance! least!2!years,!he!shall!be!given!a!grace!period,!
7. QuasidTradicion!!delivery!of!the!incorporeal!property.! equivalent!to!1!month!per!year!of!installments,!to!pay!
! the!unpaid!installments.!
Pactum(Resarvati(Dominii((when!the!seller!retains!the! 2. If!the!vendor!wish!to!cancel!the!sale,!and!the!vendee!
ownership!of!the!thing!sold!to!himself,!WON!there!is!delivery! has!already!paid!at!least!5!years!of!installments,!50%!of!
of!the!thing!to!the!buyer.! the!paid!installments!plus!5%!per!year!of!paid!
! installments!after!that,!shall!be!returned!to!the!vendee.!
Res(Perit(Dominu((the!owner!of!the!thing!shall!bear!the!loss.! Provided!it!shall!not!exceed!90%!thereof.!
! 3. If!paid!installments!is!less!than!2!years,!the!vendee!
RECTO(LAW((ARTICLE(1484)( shall!be!given!at!least!60!days!to!pay!the!unpaid!
In!the!sale!of!PERSONAL!property!in!installment,!the!vendor! installments!and!30!days!from!the!receipt!of!the!notice!
has!the!following!ALTERNATIVE!remedies:! of!cancellation!by!the!vendee,!before!cancelation!be!
! made.!
1. Exact!fulfillment!of!the!obligation,!if!the!vendee!fails!to! !
pay;! Action(for(Annulment(
(
!
!
Rescissible!Contracts!!within!4!years! ARTICLE(1497.(
Voidable!Contracts!d!!within!4!years! The(thing(sold(shall(be(understood(as(delivered,(when(it(is(
Void!or!Inexistent!Contracts!!action!or!defense!does!not! placed(in(the(control(and(possession(of(the(VENDEE.(
prescribe! (
! Possession((if!the!thing!is!capable!of!physical!transfer!of!
FINALS(Coverage( actual!delivery.!
( Control((if!the!thing!is!incapable!or!impossible!to!be!
ARTICLE(1495.!Obligations!of!the!VENDOR! physically!transferred!or!delivered.!
! !
The!VENDOR!is!bound:! Kinds(of(Delivery:(
1. To!TRANSFER!ownership;! (
2. To!DELIVER!the!thing;! 1. Actual!
3. To!PRESERVE!the!thing!from!the!perfection!until!its! 2. Constructive!
delivery;! 3. Quasi!
4. To!WARRANT!the!thing!sold!against!eviction!and!hidden! !
defects;!(In!an!obligation!to!deliver!a!determinate!thing)! QuasiITradicion((delivery!of!rights,!credits,!and!other!
5. To!DELIVER!the!FRUITS!and!ACCESSORIES.! incorporeal!rights.!
! !
! Contract(OF(Sale((the!title!of!the!property!passes!to!the!
! vendee!upon!the!delivery!of!the!thing!sold!and!the!vendor!
! loses!ownership!over!the!property!and!cannot!recover!it!until!
! and!unless!the!contract!is!rescinded.!
Time(of(Delivery( !
( Contract(TO(Sell((ownership,!by!agreement,!is!reserved!in!
GR:!at!the!time!stipulated! the!vendor!and!is!not!to!pass!to!the!vendee!until!full!payment!
If!NO!stipulation! of!the!purchase!price!and!the!title!is!retained!by!the!vendor!
1. The!nature!of!the!contract!will!be!determined,!such!that!if! until!full!payment!of!the!price.!
time!is!of!the!essence!or! !
2. Within!reasonable!time.! Requisites(of(Actual/Real(Delivery:(
( (
!
!
1. Seller!has!control!over!the!thing! Sale(on(Approval/Trial/Satisfaction((the!rule!is!that!when!
2. Such!control!is!placed/transferred!with!the!buyer! goods!are!delivered!to!the!buyer,!the!ownership!does!not!
3. For!the!purpose!of!transferring!ownership! automatically!passes!to!the!buyer.!
! !
Note:!There!can!be!delivery!even!without!transferring! However!if!the!buyer:!
ownership!where!ownership!is!reserved!to!the!seller!until!the! 1. Signifies!his!approval/acceptance!to!the!seller,!or!
payment!of!the!full!purchase!price.! 2. If!he!does!not!signify!his!approval!to!the!seller,!BUT!retains!
! the!goods!without!giving!notice!of!rejection,!or!
Return(Contract(of(Sale((the!buyer!has!the!option!of! 3. Then!if!a!time!has!been!fixed,!on!the!expiration!of!such!
returning!the!goods!instead!of!paying!the!price.! time,!or!
! 4. If!no!time!is!fixed!return!within!reasonable!time.!
Upon!delivery!there!is!already!a!transfer!of!ownership! !
Seller!d>!Buyer! Who(BEARS(the(LOSS((Sale(on(Approval)(
Therefore!the!buyer!acquires!ownership.! !
However,!he!has!the!option!to!revest!the!ownership!if!he!does! GR:!The!seller!because!he!still!owns!the!goods!even!if!there!is!
not!want!to!acquire!ownership.! delivery.!Res!Perit!Dominu!
Buyer!d>!Seller! !
! XPN:!(Buyer!bears!the!loss)!
2(Rights(under(Return(Contract(of(Sale:( 1. If!there!is!a!stipulation!that!the!buyer!shall!bear!the!loss!
( 2. Buyer!is!at!fault!
1. Acquisition!of!ownership!by!the!buyer! !
2. Revest!the!ownership!after!the!period!(Back!to!the!seller)! General(Rule((Risk(to(ownership)(
! Risk!is!with!the!seller!until!ownership!is!transferred.!
! !
! (
Period(to(Return(the(thing/object:( (
( Buyer((Liable(for(the(loss(even(if(ownership(is(with(the(
1. Within!the!period!stipulated!in!the!contract!or! seller(
2. Within!reasonable!period!of!time! (
! 1. If!the!cause!of!delay!of!the!delivery!is!the!buyer!
!
!
2. If!the!retention!of!ownership!is!for!the!purpose!of!securing! ARTICLE(1522(
the!performance!of!the!buyer.! (
( Seller!delivers!to!the!buyer!a!quantity!of!goods!less!than!what!
FAS(Sales((the!seller!pays!all!the!charges!and!is!subject!to! he!contracted!to!sell.!
risk!until!the!goods!are!placed!along!side!the!vessel.! 1. The!buyer!may!REJECT!them.!
! 2. If!he!accepts,!he!must!pay!at!the!contract!rate.!If!the!buyer!
FOB(Sales(((Free!on!Board),!the!seller!shall!bear!all!expenses! has!used/disposed!of!the!goods!delivered!before!he!knows!
until!the!goods!are!delivered,!depending!on!whether!the! that!the!seller!is!not!going!to!perform!his!contract,!the!
goods!are!to!be!delivered!FOB!at!the!point!of!shipment!or!at! buyer!shall!be!liable!for!the!fair!value!of!the!goods!he!
the!point!of!destination.! received.!
! !
Under(FOB(Shipping(point(I!delivery!of!the!goods!to!the! Seller!delivers!to!the!buyer!a!quantity!of!goods!larger!than!
carrier!is!equivalent!to!delivery!to!the!buyer!at!that!point,!the! what!he!contracted!to!sell,!the!buyer!may:!
buyer!bears!the!risk!of!loss.! 1. He!may!accept!the!goods!covered!in!the!contract!and!reject!
! the!rest.!
Under(FOB(Destination(point((only!when!the!vessel!has! 2. Accepts!the!whole,!must!pay!at!the!contract!rate.!
arrived!at!the!point!of!destination!would!there!be!delivery!to! 3. If!it!is!indivisible,!the!buyer!may!reject!the!whole.!
the!buyer.!(Prior!to!that)!the!seller!bears!the!risk!during! !
travel.! Seller!delivers!to!the!buyer!the!goods!contracted!but!mixed!
! with!goods!of!a!different!description,!the!buyer!may:!
Best(Evidence((Delivery!Receipt! 1. Accept!the!contracted!goods!and!reject!the!rest.!
! 2. If!it!is!indivisible,!he!may!reject!the!goods!entirely.!
( !
( Goods(held(by(3rd(party((goods!at!the!time!of!sale!are!in!the!
( possession!of!a!3rd!person,!the!seller!has!not!fulfilled!his!
( obligation!to!the!buyer!unless!such!3rd!person!acknowledges!
( to!the!buyer!that!he!holds!the!goods!on!the!buyers!behalf.!
( !
Rules(on(Effects(of(Delivery(for(MOVABLES((Personal)( !
( !
!
!
Rules(on(Delivery(of(IMMOVABLES:((Real)( (
( (
ARTICLE(1539( NonIpayment(of(price(by(the(BUYER:(
( (
If!there!is!a!greater!area!in!the!immovable!than!that!stated!in! 1. Ownership!is!transferred.!Seller!may!maintain!an!action!
the!contract,!the!buyer!may:! for!specific!performance!
1. Accept!the!area!covered!by!the!contract!and!reject!the!rest.! 2. Ownership!not!yet!transferred.!May!notify!the!buyer!that!
2. If!he!accepts!the!whole,!he!must!pay!for!the!same!at!the! the!goods!are!held!by!the!seller!as!bailee!for!the!buyer.!
contract!rate.! !
! When!the!buyer!wrongfully!neglects/refuses!to!accept!goods,!
Note:!It!also!applies!in!cases!of!judicial!sale.! the!seller!may!maintain!an!action!for!damages!for!nond
! acceptance.!
Where(Immovables(sold(for(LUMP(SUM(I(there!shall!be!no! Damages!!estimated!loss!directly!and!naturally!resulting!in!
increase!or!decrease!of!the!price,!although!there!be!a!greater! the!ordinary!course!of!events.!
or!lesser!area!or!number!than!that!stated!in!the!contract.! !
XPN:!If!the!excess/deficiency!is!NOT!reasonable.! Grounds(for(Special(Right(to(RESELL:(
XPN(to(the(XPN:!When!the!buyer!assumes!the!risk.! (
! The!seller!when!unpaid!may!resell!the!thing:!
Reservation(of(Ownership:( !
( 1. When!the!goods!are!perishable!by!nature.!
Despite!delivery,!ownership!will!not!be!transferred!to!the! 2. Seller!expressly!reserves!his!right!to!resell!in!case!of!
buyer!in!case!of!express!reservation.!Parties!stipulate!that! default.!
ownership!will!not!be!transferred!until!the!purchase!price!is! 3. Buyer!has!been!default!for!unreasonable!period!of!time.!
fully!paid.! !
! Goods(in(TransitI(when!it!is!no!longer!in!the!possession!of!
ARTICLE(1503.(Implied(Reservation.( the!seller!and!it!is!already!delivered!by!carrier.!
( !
( It(is(Exercised(by:(
( (
( 1. By!actually!obtaining!the!goods!while!in!transit!
!
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2. Mere!Notice!!must!be!timely!given! !
! GR:(A!possessor!has!lesser!rights!over!a!person!who!has!
! recorded/registered!title.!
! XPN:!In!case!of!acquisitive!prescription,!possession!ripens!
Rules(on(DOUBLE(SALES( into!ownership.!
( Ordinary!!10yrs!GF,!Extraordinary!!30yrs!BF/GF!
ARTICLE(1544.(The!ownership!shall!be!given:! Registration((entry!of!the!deeds/instruments!of!conveyance!
1.!When!subject!matter!is!movable,!to!the!buyer:! involving!lands!to!Registry!of!Deeds.!
Who!may!have!first!taken!possession!thereof!in!GF! !
2.!Immovable,!to!the!buyer:! Effect(of(BF(in(Registration((as!if!you!have!not!registered,!
First!recorded!the!sale!in!the!Registry!of!Property,!GF! possession!in!GF!will!be!given!preference.!
First!possessor!in!GF! !
The!person!who!presents!the!oldest!title,!GF! Remedies(of(Buyer(in(GF(who(is(not(preferred:(
! (
Elements(of(Double(Sale:( He!is!entitled!to!reimbursement!of!the!purchase!price!+!
( interest!and!damages.!
1. 2!or!more!sale!transactions!must!constitute!valid!sale.! If!in!BF,!no!damages,!only!purchase!price!+!interest.!
2. 2!or!more!sale!transactions!must!pertain!to!exact!subject! !
matter.! Obligations(of(the(Buyer:(
3. 2!or!more!buyers!at!odds!over!the!rightful!ownership! (
(conflicting!interest).! 1. To!pay!the!price!at!the!time!and!place!stipulated.!
4. 2!or!more!buyers!at!odds!must!have!bought!from!the!very! 2. To!accept!the!delivery!of!the!thing!bought.!
same!seller.! !
! Negotiable(Document(
Purchaser(in(Good(Faith((one!who!buys!the!property!of! (
another!without!notice!that!some!other!person/s!has!a!right! Who(can(Negotiate?(
to!or!interest!over!such!property!and!pays!a!full!and!fair!price! !
for!the!same!at!the!time!of!such!purchase!or!before!he!has! 1. The!owner!
notice!of!the!claim!or!interest!of!some!other!person!in!the! 2. Any!person!to!whom!the!possession!or!custody!of!the!
property.! document!has!been!entrusted!by!the!owner.!
!
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! !
How?( Rights(of(an(UNPAID(SELLER:(
! (
1. By!Delivery!alone! Note:(Hierarchical!application!
2. By!endorsement!and!Delivery.! 1. Possessory!lien;!
! 2. Stoppage!in!transit;!
! 3. Special!right!of!resale;!and!
! 4. Special!right!to!rescind.!
Warranties(on(Negotiation:( !
( !
A!person!who!negotiates!the!document!warrants!that:! I.(Right(of(Possessory(Lien((
1. The!document!is!genuine.! (
2. He!has!legal!right!to!negotiate!or!transfer!it.! Exercisable!only!in:!
3. He!has!no!knowledge!of!any!fact!that!would!impair!the! 1. Where!the!goods!have!been!sold!without!any!stipulation!as!
validity!of!the!document.! to!credit.!
4. He!has!a!right!to!transfer!the!title!to!the!goods!and! 2. Where!the!goods!have!been!sold!on!credit,!but!the!term!of!
5. The!goods!are!merchantable!or!fit!for!a!particular!purpose.! credit!has!expired.!
! 3. Where!the!buyer!becomes!insolvent.!
Sale(by(CoIowner(of(the(whole(property(the!sale!by!a!cod !
owner!of!the!entire!property!without!the!consent!of!the!other! II.(Right(of(Stoppage(in(Transitu(
codowners!cannot!be!considered!as!null!and!void.!It!was!held! (
that!the!sale!is!valid!as!to!his!ideal!share!only.! Exercisable!either!by:!
! 1. Obtaining!actual!possession!of!the!goods!OR!
Remedies(of(Parties:( 2. Giving!notice!of!his!claim!to!the!carrier!or!other!bailee!in!
( whose!possession!the!goods!are.!
ARTICLE(1525.(Unpaid(Seller( !
1. When!the!whole!of!the!price!has!not!been!paid!or!tendered! III.(Special(Right(of(Resale(
or! !
2. When!a!BoE!or!other!Negotiable!instrument!has!been!
received!and!it!was!dishonored.!
!
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Can!be!made!only!when!the!unpaid!seller!has!previously! Express(Warranty((any!affirmation!of!fact!or!any!promise!by!
exercised!either!his!right!of!possessory!lien!or!stoppage!in! the!seller!relating!to!the!thing,!which!has!the!natural!tendency!
transitu!and!under!any!of!the!following!conditions:! to!induce!the!buyer!to!purchase!the!same.!
1. Goods!are!of!perishable!nature.! !
2. Where!the!seller!has!been!expressly!reserved!in!case!the! It!must!be!written/!included!in!the!contract.!The!buyer!can!
buyer!is!in!default.! invoke!such!warranties.!
3. Buyer!is!in!default!for!an!unreasonable!time.! !
! Requisites(for(Express(Warranty:(
IV.(Special(Right(to(Rescind( (
! 1. It!must!be!an!affirmation!of!fact!by!the!seller!relating!to!the!
1. The!seller!has!expressly!reserved!the!right!to!do!so!in! subject!matter.!
case!the!buyer!should!make!default!OR! 2. The!natural!tendency!of!such!affirmation!is!to!induce!the!
2. The!buyer!has!been!in!default!in!the!payment!for!an! buyer!to!purchase!the!thing.!
unreasonable!time.! 3. The!buyer!purchases!the!thing!relying!on!such!affirmation!
Notice!to!Rescind!to!the!buyer!!Not!Necessary! or!promise!thereon.!
! !
Remedies(of(Buyer:( !
( Can(the(buyers(express(warranty(be(enforced(against(
Failure!of!seller!to!deliver!the!buyer!may!seek!an!action!for! somebody(who(is(not(a(privy(to(the(contract?(
specific!performance.! (
! GR:(No.!A!party!not!privy!to!the!contract!is!not!bound!to!the!
Conditions(and(Warranties( contract.!
ARTICLE(1545.(2!alternative!remedies!in!case!of!nond XPN:(!
performance:! 1. If!the!original!seller!warrants!the!goods!to!subsequent!
! buyers.!
1. Refuse!to!proceed!with!the!contract!OR! 2. If!the!buyers!seller!assigns!his!right!to!enforce!the!
2. Waive!the!performance!of!the!condition.! warranty!against!the!original!seller.!
( !

!
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Implied(Warranties((those!which!by!law!constitute!part!of! !
every!contract!of!sale,!whether!or!not!the!parties!were!aware! What(are(the(kinds(of(deprivation(of(Property?(
of!them,!and!whether!or!not!the!parties!intended!them.! 1. Deprivation!in!FACT!
! 2. Deprivation!in!LAW!
I.(Warranty(of(Title( !
! In!the!2nd,!it!is!of!warranty!against!eviction!because!eviction!
Composed!of!3!Assurance:! takes!place!by!virtue!of!final!judgment.!
1. Seller!is!the!owner!of!the!property.! Warranty!against!eviction!may!be!waived,!only!in!cases!when!
2. Seller!has!the!right!to!sell!the!thing.! it!is!formally!expressed!in!writing!in!the!contract.!
3. The!buyer!will!be!provided!with!the!right!to!enjoy!quiet! !
possession!of!the!goods.! 2(Kinds(of(Waiver:(
! 1. Waiver!WITHOUT!the!knowledge!of!the!risk!of!eviction;!
II.(Warranty(Against(Eviction( and!
( 2. Waiver!WITH!the!knowledge!of!eviction!
Eviction((judicial!process!by!virtue!of!which!ownership!is! !
removed!or!a!person!is!deprived!of!ownership.! ARTICLE(1555.(When!warranty!has!been!agreed!upon:!
! 1. demand!the!return!of!the!value!of!the!thing!
ARTICLE(1548.(Eviction!shall!take!place!whenever!by!a!final! 2. deliver!the!income!or!fruits!
judgment!based!on!a!right!prior!to!the!sale!or!an!act!imputable! 3. expenses!of!the!contract,!if!the!buyer!has!paid!them!
to!the!vendor,!the!vendee!is!deprived!of!the!whole!or!of!a!part! 4. costs!of!the!suit!which!caused!the!eviction!
of!the!thing!purchased.! 5. if!the!sale!was!made!in!BF,!damages,!interests!and!
Sellers(Implied(warranty(against(eviction(ONLY(applies( ornamental!expenses.!
when:( (
1. Eviction!is!by!a!FINAL!JUDGMENT.! III.(Warranty(against(NonIapparent(Servitude(
2. The!buyer!is!deprived!of,!or!evicted!from,!the!WHOLE! !
or!PART!of!the!thing!sold.! ARTICLE(1560.(The!warranty!shall!apply!when:!
3. Basis!thereof!is!by!virtue!of!a!right!prior!to!the!sale! 1. The!immovable!sold!is!encumbered!with!any!nond
made!by!the!seller;!and! apparent!burden!or!servitude,!not!mentioned!in!the!
4. Vendor!must!be!notified!of!the!case!in!the!form!of! agreement;!
SUMMONS.!
!
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2. The!nature!of!such!nondapparent!burden!or!servitude!is! 2. Defect!must!EXIST!at!the!TIME!the!sale!was!made;!
such!that!it!must!be!presumed!that!the!buyer!would!not! 3. Defect!must!be!IMPORTANT!or!GRAVE;!
have!acquired!it.! 4. That!NO!WAIVER!of!the!warranty!was!executed;!
( 5. Action!MUST!BE!INSTITUTED!within!the!statute!of!
When(warranty(NOT(applicable:( limitations.!
1. If!the!servitude!is!mentioned!in!the!agreement.! !
2. If!the!nondapparent!burden!is!recorded!in!the!Registry! If(the(thing(sold(should(be(lost(as(a(consequence(of(the(
of!Deeds.! hidden(faults:(
Remedies(and(Prescriptive(Period( Seller!d!Aware!
Buyer!may!either!bring:! !He!should!bear!the!loss,!and!shall!be!obliged!to!return!the!
1. Action!for!Recission! price!and!refund!the!expenses!of!the!contract!plus!damages.!
2. Action!for!Damages! Seller!!NOT!Aware!
Within!1!year,!if!after!1!year!only!Action!for!damages!may!be! He!shall!be!obliged!to!return!the!price!and!interest,!and!
filed.! reimburse!the!expenses,!but!NOT!for!damages.!
! !
ARTICLE(1561.(The!seller!shall!be!responsible!for!warranty! If(the(thing(is(lost(through(a(fortuitous(event(or(through(
against!hidden!defect!only!when:! the(fault(of(the(buyer,(then(
1. The!nature!of!the!hidden!defect!is!such!that!it!should! Seller!!BF!
render!the!subject!matter!unfit!for!the!use!for!which!it! The!buyer!may!demand!from!the!seller!the!price!+!damages.!
is!intended;!or! Seller!!NOT!Aware!of!the!HD!
2. Should!diminish!its!fitness!for!such!use!to!such!an! The!buyer!may!demand!from!the!seller!the!price,!less!the!
extent!that,!had!the!buyer!been!aware!thereof,!he! value!which!the!thing!had!when!it!was!lost.!
would!not!have!acquired!it!or!would!have!given!a!lower! !
price!for!it.! !
Note:!The!seller!is!responsible!to!the!buyer!for!any!hidden! !
defects!in!the!thing!sold,!even!though!he!was!not!aware! !
thereof.! Waiver(of(Warranty(
! (
Requisites(of(Breach(of(Warranty:( If!there!is!a!waiver:!
1. Defect!must!be!HIDDEN;!
!
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1. If!the!seller!was!not!aware!of!the!HD,!the!loss!of!the! When!no!period!!4!years!
thing!by!virtue!of!such!defect!will!not!make!the!seller! Period!cannot!exceed!10!years!
liable!at!all!the!buyer;!or! !
2. If!the!seller!was!fully!aware!of!such!defect,!such!waiver! Pacto(de(Retro!!the!title!and!ownership!of!the!property!sold!
is!in!BF,!the!seller!would!still!be!liable!for!the!warranty.! is!immediately!vested!in!the!vendee!subject!to!the!restrictive!
Prescriptive!period!!6!months! condition!of!repurchase!by!the!seller!during!the!redemption!
! period.!
Animal!Defects!!Redhibitory!Defects! !
Prescriptive!period!!40!days!from!the!date!of!delivery.! Note:!Non!payment!of!price!does!not!affect!running!of!
! redemption!period!
Extinguishment(of(Sale:( !
1. Payment!of!the!price/performance! 30!day!redemption!period(right)!in!case!of!litigation.!
2. Loss!of!the!subject!matter! !
3. Condonation/Remission! Equitable(MortgageI(one!which!although!lacking!in!some!
4. Confusion/Merger! formality,!nevertheless!reveals!the!intention!of!the!parties!to!
5. Compensation! charge!real!property!as!security!for!a!debt.!
6. Novation! !
7. Annulment! Requisites:!
8. Recission! 1. That!the!parties!entered!into!a!contract!denominated!as!
9. Fulfillment!of!a!Resolutory!Condition! a!contract!of!sale,!and!
10. Prescription! 2. That!the!intention!was!to!secure!existing!debt!by!way!
( of!a!mortgage.!
Conventional(Redemption((shall!take!place!when!the!seller! (
reserved!for!himself!the!right!to!repurchase!the!thing!sold! Pactum(Commissorium((is!a!stipulation!for!automatic!
with!the!obligation!to:! vesting!of!title!over!the!security!in!the!creditor!in!case!of!the!
1. Return!the!price!of!the!sale! debtors!fault.!
2. The!expenses!of!the!contract! !
3. Any!other!legitimate!payments! When(presumed(equitable(mortgage(
4. Necessary!and!useful!expenses! ARTICLE(1602.(!
Period(of(Redemption(
!
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1. When!the!price!of!under!as!sale!a!retro!is!unusually! Sale!of!homestead!within!5!year!prohibition!period!is!void!
inadqueate.! even!the!sale!!son/daughter!
2. When!the!seller!remains!in!possession!as!lessee!or! Redemption(in(Tax(Sales((1!year!
otherwise.! Redemption(in(Extrajudicial(foreclosure((1!year!
3. When!the!period!of!redemption!is!extended!or!renewed! Redemption(by(Judgment(Debtor((1!year!
under!a!separate!instrument.! Redemption(in(Judicial(Foreclosure((90!Days!
4. When!the!buyer!retains!part!of!the!purchase!price.! Foreclosure(by(Banking(institutions((1!year(
5. When!the!seller!binds!himself!or!continues!to!pay!the! Rural(Bank(Foreclosure((2!years,!5!yearsdheirs!
taxes.! Legal(Right(to(Redeem(under(Agrarian(Reform((180!days!
! !
Legal(Redemption((right!to!be!subrogated!upon!the!same! Assignment(of(Credit((it!is!an!agreement!whereby!credits,!
terms!and!conditions!stipulated!in!the!contract!in!the!place!of! incorporeal!rights!pertaining!to!the!assignor!are!transferred!
one!who!acquires!a!thing!by!purchase!or!dation!in!payment! by!him!to!another!(assignee)!either!onerously!or!gratuitously.!
! !
CONVENTIONAL(vs.(LEGAL( What(are(the(rights(assigned?(
( 1. Right!to!collect!the!full!credit!of!the!obligation.!
Conventional:( 2. Accessory!Rights!
1. Express!reservation! 3. The!debtor!retains!all!his!rights!available!against!the!
2. Right!a!retro!is!in!favor!of!the!seller! original!creditor!
! Assignment!is!only!binding!to!the!debtor!from!knowledge!of!
Legal:( the!assignment.!
1. Right!granted!by!law! !
2. Legal!right!of!redemption!is!given!to!3rd!party!of!the! General(warranty!!the!assignor!warranty!the!existence!of!
sale.! the!credit!and!that!the!credit!is!valid.!
When!legal!redemption!period!begins!to!run.!It!shall!not!be! !
exercised!except!within!30!days!from!the!notice!in!writing!by! Technical(Rescission!d!is!a!stipulation!whereby!the!seller!is!
the!seller.! given!the!right!to!rescind!the!sale!after!giving!judicial!or!
! notarial!notice!to!the!buyer.!
Redemption(of(Homesteads!!5!years!from!the!date!of! !
conveyance.! Requisites:(
!
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1. Unequivocal!breach!
2. Failure!of!the!buyer!to!pay!the!purchase!price!
3. Buyer!in!default!for!an!unreasonable!time.!