Miljane P.

Perdizo
Assignment 4

10 points every number. Explaination must be exhaustive

1. B bought from S a specific tractor for P10,000. B paid P5,000 on the date of sale, and the
balance to be paid at the residence of B (Manila) three days thereafter . While en route to Manila,
the tractor was sold and delivered by S to X for P8,000. Do you think B can recover the tractor from
X? Why?
- No, but B can still recover the price the he has been paid which is 5,000. Article 1599 will govern,
where there is a breach of warranty by the seller, the buyer may, at his election in the paragraph (4)
Rescind the contract of sale and refuse to receive the goods or if the goods have already been
received, return them or offer to return them to the seller and recover the price or any part thereof
which has been paid.

2. Philsuzu Marketing delivered to B an 8-cubic feet refrigerator for P10,000 covered by an

invoice marked “Sale or return, 10 days “. Before the lapse of 10 days from delivery, B sold the
refrigerator to C without notice to Philsuzu.
a. Can the seller (Philsuzu) cancel the sale between B and C on the ground that B is not yet the
owner since the 10-day period has not yet expired? Answer yes or no, and give reasons.
No, for the reason that the ownership is transferred to the buyer at the time of the delivery.
Thus, the buyer now can sell the property to third person. Article 1502. When goods are delivered to
the buyer "on sale or return" to give the buyer an option to return the goods instead of paying the
price, the ownership passes to the buyer on delivery, but he may revest the ownership in the seller
by returning or tendering the goods within the time fixed in the contract, or, if no time has been
fixed, within a reasonable time. (n) Hence, the buyer now is the owner and he shall bear the risk of
the loss.

b. If the refrigerator got lost before the lapse of the 10-day period, will the seller (Philzusu)
bear risk of loss? Answer yes or no, and give reasons.
No, because stated in the Article 1502. When goods are delivered to the buyer "on sale or
return" to give the buyer an option to return the goods instead of paying the price, the ownership
passes to the buyer on delivery, but he may revest the ownership in the seller by returning or
tendering the goods within the time fixed in the contract, or, if no time has been fixed, within a
reasonable time. Wherefore, the buyer shall bear the risk of loss because the ownership transferred
to him.

3. S sold to B a specific refrigerator for P10,000. The parties agreed that delivery to B shall not
vest the latter ownership of the thing sold. Two days after , B sold and delivered the refrigerator to
X, a buyer in good faith.

a. Is the stipulation of the parties valid?

b. Is ownership transferred from B to X?

4. S sold a piece of pasture land to B. On the same day S sold it again to X .both sales were
made in private documents, bearing the same date. Neither of the land because it was already in the
possession of another person under a contract of lease for one year, executed by S a month before ,
also in a private document. Who is the rightful owner of the land, on the supposition that both
purchasers acted in good faith? Why?

5. “X” came across an advertisement in the “Manila Daily Bulletin” about the rush sale of
three slightly used TOYOTA cars, Model 1989 for only P200,000 each. Finding the price to be very
cheap and in order to be sure that he gets one unit ahead of the others, “ X” immediately
phoned the advertiser “Y” and place an order for one car. “Y” accepted the order and promised
to deliver the ordered unit on July 15, 1989. On the said date, however,”Y” did not deliver the unit.
“X” brings an action to compel “Y” to deliver the unit.
Will such action prosper? Give your reasons.

6. A bought a truck from B payable in installment secured a chattel mortgage executed by A on

the truck. As additional security , A’s brother, C, executed a real estate mortgage in favor of B.

A defaulted in the payment of several installments. Consequently, B filed an action for replevin,
repossessed the truck, and foreclosed the chattel mortgage

Can B proceed againts the other properties of A and the real estate mortgage executed by C to
recover the deficiency if any,a fter the chattel mortgage foreclosure sale? Explain
No, because in the Article 1484. In a contract of sale of personal property the price of which
is payable in installments, the vendor may exercise any of the following remedies:
(3) Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the
vendee's failure to pay cover two or more installments. In this case, he shall have no further action
against the purchaser to recover any unpaid balance of the price. Any agreement to the contrary
shall be void. Therefore, B foreclose the chattel mortgage on the sold and he shall have no further
action against the purchaser to recover unpaid balance of the price.

7. S sold B a specific radio for P500 on January 1. Payment and delivery was not agreed upon.
On January 2, can B demand delivery from S, even if no payment has yet been made? Reasons.
Article 1524 will govern that the vendor shall not be bound to deliver the thing sold, if the
vendee has not paid him the price, or if no period for the payment has been fixed in the contract. So
there is no obligation because both parties did not complete the perfection.

8. S sold to B “by sample” twenty (20) bales of pillow cases. At the time of perfections, the
goods were pulled out and found to be alright. Upon delivery, most of the pillow cases are already
worn out. What are the rights of B?
Stated in the Article 1481. In the contract of sale of goods by description or by sample, the
contract may be rescinded if the bulk of the goods delivered do not correspond with the description
or the sample, and if the contract be by sample as well as description, it is not sufficient that the
bulk of goods correspond with the sample if they do not also correspond with the description.
The buyer shall have a reasonable opportunity of comparing the bulk with the description or the
sample. (n) therefore B can still rescind the items to S .

9. S sold to B a ‘ KUBOTA ’ water pump by descriptions. Although the description was

completely correct as described by S, the machine would not work properly for which it had been
bought. Can B refuse to pay the price of the sale? Why?
Art. 1481 will govern, S can rescind the item to B because description is distinct to sample.
10. S sold 100 crates of ripe mangoes to B and shipped them to a common carrier. The price of the
sale is P100 per crate. The term of the sale is COD. When the carrier reached the point of
destination, and goods are about to be released by the Captain (vessel), S demanded payment from
B, but the latter is insolvent. What right or rights can S excercise?

Article 1530. Subject to the provisions of this Title, when the buyer of goods is or becomes
insolvent, the unpaid seller who has parted with the possession of the goods has the right of
stopping them in transitu, that is to say, he may resume possession of the goods at any time while
they are in transit, and he will then become entitled to the same rights in regard to the goods as he
would have had if he had never parted with the possession. (n) Hence, S has the right to stop them
in transitu and he may resume possession of the goods.