doctrines (arts. 1458-1544)

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  • 8/2/2019 Doctrines (Arts. 1458-1544)



    As thus prescribed by law, for a period of five years from the date of the

    government grant, lands acquired by free or homestead patent shall not only

    be incapable of being encumbered or alienated except in favor of the

    government itself or any of its institutions or of duly constituted banking

    corporations, but also, they shall not be liable to the satisfaction of any debt

    contracted within the said period, whether or not the indebtedness shall

    mature during or after the prohibited time. This provision against the

    alienation or encumbrance of public lands granted within five years from the

    issuance of the patent, it has been held, is mandatory; a sale made in

    violation thereof is null and void and produces no effect whatsoever. Though

    it may be a limitation on the right of ownership of the grantee, the salutary

    purpose of the provision cannot be denied. The word "debt" in exemption

    statutes,- in its wider sense, (it) includes all that is due to a man under any

    form or obligation or promise, and covers not only obligations arising under

    contract, but also those imposed by law without contract. Considering the

    protective policy of the law, it becomes apparent that "debt contracted" was

    used in it in the sense of "obligation incurred,"


    Selling or distribution is an essential ingredient of manufacturing. The sale of

    a manufactured product is properly incident to manufacture. The power to

    sell is an indispensable adjunct to a manufacturing business. Petitioner, as a

    manufacturer, not only manufactures the finished articles but also sells or

    distributes them to others. It is still good law that a contract to make is acontract of sale if the article is already substantially in existence at the time

    of the order and merely requires some alteration, modification or adaptation

    to the buyer's wishes or purposes. A contract for the sale of an article which

    the vendor in the ordinary course of his business manufactures or procures

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    for the general market, whether the same is on hand at the time or not is a

    contract for the sale of goods.


    A deed of sale is absolute in nature although denominated as a "Deed of

    Conditional Sale" where nowhere in the contract in question is a proviso or

    stipulation to the effect that title to the property sold is reserved in the

    vendor until full payment of the purchase price, nor is there a stipulation

    giving the vendor the right to unilaterally rescind the contract the moment

    the vendee fails to pay within a fixed period


    The law prohibiting any transfer or alienation of homestead land within five

    years from the issuance of the patent does not distinguish between

    executory and consummated sales; and it would hardly be in keeping with

    the primordial aim of this prohibition to preserve and keep in the family of

    the homesteader the piece of land that the state had gratuitously given to

    them, to hold valid a homestead sale actually perfected during the period of

    prohibition but with the execution of the formal deed of conveyance and the

    delivery of possession of the land sold to the buyer deferred until after the

    expiration of the prohibitory period, purposely to circumvent the very law

    that prohibits and declares invalid such transaction to protect the

    homesteader and his family.

    LIMKETKAI SONS VS. CAThe contract of sale is perfected at the moment there is a meeting of minds

    upon the thing which is the object of the contract and upon the price. From

    that moment, the parties may reciprocally demand performance, subject to

    the provisions of the law governing the form of contracts. Consent is

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    manifested by the meeting of the offer and the acceptance upon the thing

    and the cause which are to constitute the contract. The offer must be certain

    and the acceptance absolute. A qualified acceptance constitutes a counter-

    offer. "An acceptance may be express or implied." It is true that an

    acceptance may contain a request for certain changes in the terms of the

    offer and yet be a binding acceptance. "So long as it is clear that the

    meaning of the acceptance is positively and unequivocally to accept the

    offer, whether such request is granted or not, a contract is formed." the

    vendor's change in a phrase of the offer to purchase, which change does not

    essentially change the terms of the offer, does not amount to a rejection of

    the offer and the tender or a counter-offer.


    "The contract of sale is perfected at the moment there is a meeting of minds

    upon the thing which is the object of the contract and upon the price. From

    that moment, the parties may reciprocally demand performance, subject to

    the law governing the form of contracts." "In conditional obligations, the

    acquisition of rights, as well as the extinguishment or loss of those already

    acquired, shall depend upon the happening of the event which constitutes

    the condition.


    In order to classify a contract, due regard must be given to its essential

    clauses. In the contract in question, what was essential, as constituting its

    cause and subject matter, is that the plaintiff was to furnish the defendantwith the beds which the latter might order, at the price stipulated, and that

    the defendant was to pay the price in the manner stipulated. There was the

    obligation on the part of the plaintiff to supply the beds, and, on the part of

    the defendant, to pay their price. These features exclude the legal

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    conception of an agency or order to sell whereby the mandatory or agent

    received the thing to sell it, and does not pay its price, but delivers to the

    principal the price he obtains from the sale of the thing to a third person,

    and if he does not succeed in selling it, he returns it. By virtue of the

    contract between the plaintiff and the defendant, the latter, on receiving the

    beds, was necessarily obliged to pay their price within the term fixed,

    without any other consideration and regardless as to whether he had or had

    not sold the beds.


    It is not a contract of sale. No obligation on the part of Toyota to transfer

    ownership of a determinate thing to Sosa and no correlative obligation on

    the part of the latter to pay therefor a price certain appears therein. A

    definite agreement on the manner of payment of the price is an essential

    element in the formation of a binding and enforceable contract of sale. This

    is so because the agreement as to the manner of payment goes into the

    price such that a disagreement on the manner of payment is tantamount to

    a failure to agree on the price. Definiteness as to the price is an essential

    element of a binding agreement to sell personal property.


    In general, there are three (3) essential requisites for a valid

    contract:(1) consent of the contracting parties; (2) an object certain which is

    the subject of the contract; and (3) the cause of the obligation which is


    The object of the contract Is still certain despite the parties Failure to

    indicate the specific Portion of the property to be Given as compensation for


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    Article 1349.The object of every contract must be determinate as to its

    kind. The fact that the quantity is not determinate shall not be an

    obstacle to the existence of the contract, provided it is possible to

    determine the same, without the need of a new contract between the


    x x x x

    Article 1460.A thing is determinate when it is particularly designated

    and/or physically segregated from all others of the same class. The

    requisite that a thing be determinate is satisfied if at the time the

    contract is entered into, the thing is capable of being made

    determinate without the necessity of a new or further agreement

    between the parties.

    In this case, the object of the contract is the 5,000-sq-m portion of Lot 261,

    Balanga Cadastre. The failure of the parties to state its exact location in the

    contract is of no moment; this is a mere error occasioned by the parties

    failure to describe with particularity the subject property, which does not

    indicate the absence of the principal object as to render the contract

    void.[52]Since Camacho bound herself to deliver a portion of Lot261 to Atty.

    Banzon, the description of the property subject of the contract is sufficient to

    validate the same.


    In a contract to sell, the payment of the purchase price is a positive

    suspensive condition. The vendor's obligation to convey the title does not
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    become effective in case of failure to pay. On the other hand, the agreement

    between Eliodoro Sr. and respondent is subject to a suspensive condition --

    the procurement