sales - j. sanchez - finals reviewer

8/6/2019 Sales - J. Sanchez - Finals Reviewer

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B. OBJECT OF THE CONTRACT

1. REQUISITES

ART. 1459:The thing must be licit and the vendor must have a right to transfer the ownership

thereof at the me it is delivered. (n)

ART. 1347:All things which are not outside the commerce of men, including future things,

may be the object of a contract. All rights which are not intransmissible may also be the

object of contracts.

No contract may be entered into upon future inheritance ecept in cases epressly authori!ed

by law.

All services which are not contrary to law, morals, good customs, public order or public policy

may li"ewise be the object of a contract. (#$%#a)

ART. 1306: The contracng pares may establish such spulaons, clauses, terms and

condions as they may deem convenient, provided they are not contrary to law, morals, good

customs, public order, or public policy. (#$&&a)

'f. ART. 1409:The following contracts are ineistent and void from the beginning

(#) Those whose cause, object or purpose is contrary to law, morals, good customs, public

order or public policy($) Those which are absolutely simulated or *cous

(+) Those whose cause or object did not eist at the me of the transacon

() Those whose object is outside the commerce of men

(&) Those which contemplate an impossible service

(-) Those where the intenon of the pares relave to the principal object of the contract

cannot be ascertained

(%) Those epressly prohibited or declared void by law.

These contracts cannot be ra*ed. Neither can the right to set up the defense of illegality be

waived.

What ma !" th" O!#"$t% &' C&(t)a$t%

1. All things (&t &*t%+," th" $&mm")$" &' ma(

ncluding /'*t*)" th+(-%0 do not belong to the obligor at the me the contract ismade they may be made, raised or ac1uired by the obligor a2er the perfecon of

the contract

o 'ondional 3 subject to the coming into eistence of the thing

o Aleatory 3 one of the pares bears the ris" of the thing never coming into

eistence

O*t%+," th" $&mm")$" &' ma(/ 3 all "inds of things and interests whose

alienaon or free echange is restricted by law or spulaon, which pares cannot

modify at will

o 4ervices which imply an absolute submission by those who render them,

sacri*cing their liberty, independence or own beliefs or disregarding in any

manner the e1uality and dignity of persons e.g. perpetual servitude or slavery

o 5ersonal rights e.g. patria postestas, marital authority, status, capacity of

persons, honorary tles

o 5ublic o6ces, inherent a7ributes of the public authority, polical rights of

individuals e.g. right of su8rage

o 5roperty while they pertain to the public dominion belonging to the 4tate or

its polical subdivisions intended for public use or public service or for the

development of naonal wealth

o 'hurches

o 4acred things e.g. air and sea

o 9:T public property when no longer intended for public use or service form

part of the patrimonial property of the 4tate

. All rights (&t +(t)a(%m+%%+!"

3. All services (&t $&(t)a)to law, morals, good customs, public order or public policy

;.g. of things prohibited by law

o Narcocs or dangerous drugs

o unpowder, dynamite, eplosive or blasng supplies, *rearms or ammunions

ART. 1411:


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b) 5roperes belonging to the 4tate or its polical subdivision which are intended for public

use or public service or for the development of natural wealth are outside the commerce of

man.

c) 'hurches are also outside the commerce of man.

d) 9ut public property when no longer intended for public use or service form part of the

patrimonial property of the 4tate and therefore can be leased or sold.

'f. ART. 40:The following things are property of public dominion

(#) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges

constructed by the 4tate, ban"s, shores, roadsteads, and others of similar character

($) Those which belong to the 4tate, without being for public use, and are intended for some

public service or for the development of the naonal wealth. (++Ha)

ART. 4:5roperty of public dominion, when no longer intended for public use or for public

service, shall form part of the patrimonial property of the 4tate. (+#a)

ART. 44:for public use, in the provinces, cies, and municipalies, consist of the provincial

roads, city streets, municipal streets, the s1uares, fountains, public waters, promenades, and

public wor"s for public service paid for by said provinces, cies, or municipalies.

All other property possessed by any of them is patrimonial and shall be governed by this

'ode, without prejudice to the provisions of special laws. (+a)

CASE

ARTINES CA: 2a(,% &' *!+$ &m+(+&( +(t"(,", '&) 8*!+$ *%" a)" &*t%+," th"

$&mm")$" &' m"(

Navigable public stream converted into *sh ponds, registered under the Torrens system.

4old successively to di8erent persons

The right of reversion to the 4tate does not prescribe as rivers are outside the commerce of

man.

!. ROHIBITIONS

ART. 1347:All things which are not outside the commerce of men, including future things,

may be the object of a contract. All rights which are not intransmissible may also be the

object of contracts.

No contract may be entered into upon future inheritance ecept in cases epressly authori!ed

by law.

All services which are not contrary to law, morals, good customs, public order or public policy

may li"ewise be the object of a contract. (#$%#a)

ART. 777:The rights to the succession are transmi7ed from the moment of the death of the

decedent. (-&%a)

. ETERINATE

AT. #-@ A thing is determinate when it is

1. a)$*a) ,"%+-(at", or 8h%+$a %"-)"-at", from all others of

the same class

2. At the me of the contract is entered into, the thing is $a8a!" &'

!"+(- ma," ,"t")m+(at"without the necessity of a new or further

agreement between the pares

"t")m+(at" . ,"t")m+(a!" a thing is ,"t")m+(at" if it can be physically segregated,

parcularly designated capable of being made determinate without need of another

agreement. t is ,"t")m+(a!" if it is capable of being determined via another agreement.

CASES

E2IA CIT; OF I2OI2O: "t")m+(at" "t")m+(a!"

The re1uirement of the law that a sale must have for its object a determinate thing, is

ful*lled as long as, at the me the contract is entered into, the object of the sale is capable

of being made determinate without the necessity of a new or further agreement between

the pares

aite was to deliver in good faith to his buyer all of the ore found in the mass,

notwithstanding that the 1uanty delivered is less than the amount esmated by them

Any condion that a buyer would NIT receive the subject ma7er of the contract, is JI=

and will not constute a valid contract of sale, although it may be some other contract.

ATI2ANO ATI2ANO:

?ista"e as to the /name0 of the Eots (A and 9)

The true /contract of sale0 is intangible or properly a legal concept.

The deed of sale is merely an evidence of the contract. And when the deed fails to cover

the real contract or the true meeng of the minds of the pares, then the deed must give

way to the real contract of the pares.

3. NATURE OF OBJECT

a) Eaw prohibits sale of future inheritance. The rights to succession are transmi7ed from the

moment of the death of the decedent so one cannot sell or promise to sell what he epects

to inherit from a living person. 9ut the law allows an heir to sell his interests in an inheritance

b) The object of the contract of sale must be licit, meaning within the commerce of man, and

determinate. =eterminate has been epanded to cover generic things, future things and

things in potenal eistence.

TNA ;B;4 C $@@D#@&+#C 4AE;4 C 4AN'F;G C #&


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c) Things subject to a resolutory condion may be the object of the contract of sale.(Arcle

#-&)

a. FUTURE IN< OTENTIA2

E?ISTENCE

@"8"$t", th+(-

SA2E OF A HOE

@m")" h&8" &' "8"$ta($ h&8" +t%"'

;mpo rei spera ;mpo spei

4ale is subject to the condion that the thing

will eist, if it does not, there is no contract

4ale produces e8ect even if the thing does

not come into eistence, unless it is a vain

hope

:ncertainty is with regard the 1uality and

1uanty of the thing

:ncertainty is with regard the eistence of

the thing

The object is a future thing The object is a present thing

ART. 146:

The goods which form the subject of a contract of sale may be either

1. ;isng goods owned or possessed by the seller

2. >oods to be manufactured, raised, or ac1uired by the

seller aD") th" 8")'"$&( &' th" $&(t)a$t &' %a" K

/Luture goods0

There may be a contract of sale of goods, whose ac1uision by the seller depends upon a

$&((-"($which ma &) ma (&t ha88"(. K /aleatory0

FUTURE


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2) Fowever, rescission cannot ta"e place when the things are legally in the possession of + rd

persons who did not act in bad faith ( without "nowledge of defect)

3) n an acon a8ecng the tle or the right of possession of real property, the plain8 may

record in the o6ce of the egistrar of =eeds of the 5rovince which the property is

situated, a noce of the pendency of the acon.

4) Lrom the moment of the *ling of such noce, + rdpersons are charged with noce of the

ligaon ta"e the property subject to the outcome of the ligaon. (Baviera and De

Leon)

CASEATINS RO22 CO. OIN


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$. 4imulated 5rice 3 There was no price paid. The pares merely said there was a price and

/created0 their own price (no consideraon but stated)

CASES

AA2O AA2O: +th&*t Ca*%" &) C&(%+,")a&( K >OI

A contract of purchase and sale is null and void and produces no e8ect whatsoever where

the same is without cause or consideraon

That the purchase price which appears thereon as paid has in fact never been paid by the

purchaser to the vendor

ORA2ES E>. CO. CA: NO CONSIERATION FA2SE CONSIERATION

Aside from the false consideraon of 5&@@, there was NI ;AE 'IN4=;ATIN.

Therefore, the contract is one with NI 'IN4=;ATIN and not merely one that states a

false consideraon

t is JI= and its ineistence is permanent and incurable and cannot be the subject of

prescripon.

AN


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a. 'ontract of sale constutes a >FT to TAN4L; or A'W:4TIN of

IATIATION TRUST TJ ENTERRISES:

HI2. SUBURBAN E>. COR. AUITOR A22ARTA CA:

I:

RUO2F 2IET= INC. CA:

3. ANNER OF TRANSFER

ART. 1477 The &(")%h+8 &' th" th+(- sold shall be t)a(%'"))",to the vendee upon the

a$t*a &) $&(%t)*$" ,"+")thereof.

ART. 1496:The ownership of the thing sold is ac1uired by the vendee from the moment it is

delivered to him in any of the ways speci*ed in Arcles #H% to #&@#, or in any other manner

signifying an agreement that the possession is transferred from the vendor to the vendee. (n)

TNA ;B;4 C $@@D#@&+#C 4AE;4 C 4AN'F;G C $@


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ART. 1497 The thing sold shall be *(,")%t&&, a% ,"+")",, when it is placed in the $&(t)&

a(, 8&%%"%%+&(of the vendee.

CASES

OBANA CA:

UENIE STREIFF ACE CHAN2ER:

The ownership of personal property cannot be transferred to the prejudice of third persons

ecept by delivery of the property itself And that a sale without delivery gives the wouldDbe purchaser no rights in said property

ecept those of a creditor

OCEJO ERE CO. INTERNATIONA2 BAN:

=elivery produces its natural e8ects in law, the principal and most important of which

being the conveyance of ownership, without prejudice to the right of the seller to claim the

payment of the price.

4. INS OF E2I>ER;

ART. 1496 The ownership of the thing sold is ac1uired by the vendee from the moment it is

delivered to him in any of the ways speci*ed in Arcles #H% to #&@#, or in any other manner

signifying an agreement that the possession is transferred from the vendor to the vendee. (n)

a. REA2 OR ACTUA2 E2I>ER;

ART. 1497:The thing sold shall be *(,")%t&&, a% ,"+")",, when it is placed in the $&(t)&

a(, 8&%%"%%+&(of the vendee.

/=elivered0 3 when placed in the control and possession of the vendee conveyance of

ownership without prejudice to the right of vendor to claim payment of the price

CASES

BEAN CAWA22ER:

Actual manual delivery of an arcle sold is not essenal to the passing of the tle thereto

(art #&@, 'ivil 'ode) unless made so by the terms of the contract or by an understanding

of the pares. The pares to the contract may agree when and on what condions the property in the

subject of the contract was passed to the prospecve owner

A2FREO BORRAS: ")'"$t", a(, C&(%*mmat", C&(t)a$t &' Sa"

Alfredomortgaged to =95 (%Y) 9orras paid loan and balance to Alfredos (#&Y)

=95 gave 9orras copy of I 'T 'armen Alfredo issued a receipt for the received balance (Y)

A reDsold property on the basis of a copy of the tle obtained judicially claims sale with 9

not valid under the 4tatutes of Lraud because it was oral

'ontract of 4ale

#. 5erfected

a. consent

b. object 3 land

c. price 3 #&Y

$. 'onsummated

D 5hysical delivery of subject land 3 transfer of ownership

;ven if orally entered into eceipt Q noteOmemo of the sale

:nder 4IL, only voidable and may be ra*ed when >odofredo A introduced 9 to

tenants of land

edounded on the conjugal partnership (Art. #-#)

!. CONSTRUCTI>E E2I>ER;+. S;BO2IC E2I>ER;E2I>ER; B; UB2IC

INSTRUENT

ART. 149G E E2I>ER; BEFORE OWNERSHI A; BE TRANSITTE

4eller must have control over the thing, otherwise how can he put another in control.

Licon yields to reality, he cannot transfer construcve possession if there is legalimpediment to actual possession.

9uyer must be put under control.

ntenon to deliver the thing for purposes of ownership.

CASES

F2ORENO FO:

t is the mat")+a ,"+") &' th" 8)&8")t %&, h+$h th" ,"'"(,a(t m*%t maM" +(

$&m8+a($" +th th" $&(t)a$t, inasmuch as the formal delivery de jure was made,

according to the provisions of arcle #-$, $nd paragraph, of the same code

o


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the object of the contract if in said instrument the contrary does not

appear or may be clearly inferred.

As the contrary does not appear nor is to be inferred from the public instrument eecuted

by the defendant, its eecuon was really a formal or symbolical delivery of the property

sold and authori!ed the plain8 to use the le of ownership as proof that he was

thenceforth the owner of the property

ASA22O CESAR:

As ?atea 'rispino admits, however, that she did not have possession of the land when she

eecuted and delivered her deed to plain8, the mere eecuon and delivery of the deeddid not constute a delivery of possession

A>I2ES ARCETA:

ASSET RI>ITIATION TRUST TJ ENTERRISES:

;= JR. CA

9rother bought from brother a tractor which was the subject of a mortgage and at the

me of the eecuon of the deed of absolute sale, the tractor was in the possession of the

mortgagee.

Zudgment for the brotherDbuyer.

The mortgagor who gave the property as security under a cha7el mortgage did not part

with the ownership over the same. Fe had a right to sell it although he was under the

obligaon to secure the wri7en consent of the mortgagor.

AISON FE2I?

t is the duty of the seller to deliver the thing sold, and that symbolic delivery by the

eecuon of a public instrument is e1uivalent to actual delivery only when the thing sold is

subject to the control of the seller, so that /at the moment of sale, its material delivery

could have been made.0 The /moment of sale Q consummaon

CHUA CA

++. TRAITIO 2ON


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ART. 1500 There may also be tradion constutum possessorium. (n)

n tradio constutum possessorium, the vendor remains in possession of the

property sold, by virtue of a lease agreement with the vendee.

Jendee became as lessor, the legal possessor while the vendor is in material

possession of the property in the name and representaon of the vendee.

CASES

BAUTISTA SIOSON

;ven if the vendor sells the property again to another, the second purchaser cannotac1uire ownership as he bought the property from a mere tenant.

n a case which fre1uently occurs, where the vendor, on the same date on which the deed

of sale is eecuted, by means of a constutum possessorium agreement converts himself

into a tenant or lessee of the property that he sold, and connues in possession thereof as

such tenant, the purchaser who ac1uired the property through delivery or symbolic

tradion, with all the conse1uent e8ects of a deed of conveyance, is deemed to be in

possession thereof by the epress will of the contracng pares, and therefore, it must be

recogni!ed that, through such constutum possessorium agreement, the purchaser, who

by that covenant becomes the lessor, is in lawful possession of the leased property, and

that the vendor, by the same covenant, converted himself into the lessee and is in material

possession of the leased property in the name and representaon of the purchaser, its

lawful owner.

AIES

A provision in the deed of sale granng the seller a right to lease the subject ma7er of the

sale is JAE=.

'ommon in contracts of sale of land with pacto de retro may be considered as a means of

delivery or tradion by constutum possessorium.

$. E2I>ER; TO A COON CARRIER

ART. 153


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These terms may be used only in connecon with *ing the price and will not be

construed as *ing the place of delivery to the buyer

9est indicaon of the intenon of pares as to the place of delivery is the manner

and place of payment agreed upon by the pares

o


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o good faith is always presumed burden of proof is on person

alleging bad faith

o good faith of second buyer must connue unl his contract

ripens into ownership by tradion or recording

o as to Torrens tle it is enough that purchaser eamines the

latest cer*cate of tle issued in the name of his vendor and he need not trace

its origin to prior cer*cates of tle

CASES

2EUN< ;EE F2 STRON< ACHINER; INC.

CARUBA CA

=isnguished the applicability of Art. #& depending on whether the land is registered

under the Torrens system or is unregistered land.

egistraon under the Torrens system was previously governed by Act. No. H-, but now

governed by 5= #&$H.

In the other hand, annotaon of transacons a8ecng unregistered land was governed by

Act. No. ++, but now also governed by 5= #&$H.

#& granng priority to the buyer who registers in good faith over the other who ta"es

possession in good faith is NA55E'A9E; to :N;>4T;;= EAN= because the purchase of

the unregistered land at a sheri8Ss eecuon sale only steps in the shoes of the judgmentDdebtor, and merely ac1uires the la7erSs interest in the property sold as of the me the

property was levied upon.

REA2ANTE TIBE

ATHA; CA

QUIJAA CA

IAUARTE ON<

O 2A CA

REUB2IC E . COR. CRU

Iwnership is transferred not by contract but by tradion or delivery. Nowhere in the 'ivil

'ode is it provided that the eecuon of a =eed of 4ale is a conclusivepresumpon of

delivery of possession of a piece of real estate.

The eecuon of a public instrument gives rise &( t& a 8)+ma 'a$+" 8)"%*m8&( of

delivery.

4uch presumpon is destroyed when the delivery is not e8ected because of a legal

impediment. 4uch construcve or symbolic delivery, being merely presumpve, was

deemed ("-at", ! th" 'a+*)" &' th" "(,"" t& taM" a$t*a 8&%%"%%+&( &' th" a(, %&, .

RURA2 BAN OF STA. I


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Sale by itself does not transfer or aect ownership the most that sale does is to $)"at"

th" &!+-a&( t& t)a(%'") &(")%h+8. t is tradionor delivery, as a consequence of sale,

that actually transfers ownership.

CHEN<


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The funcons of documents of tle are (#) ;vidence of the possession or control of the goods

described therein ($) ?edium of transferring tle and possession over the goods described

therein without having to e8ect actual delivery thereof (Villanueva)

ART. 1507 N"-&a!" ,&$*m"(t &' t"3 a document of tle in which it is stated that the

goods referred to therein will be delivered to the bearer, or to the order of any person named

in such document.

ART. 150G A negoable document of tle may be negoated by delivery(#) oods are deliverable to the order of a speci*ed person 9y indorsement of such person

ART. 1516 A person who for value negoates or transfers a document of tle by

endorsement or delivery, including one who assigns for value a claim secured by a documentof tle unless a contrary intenon appears, warrants

(#) That the document is genuine

($) That he has a legal right to negoate or transfer it

(+) That he has "nowledge of no fact which would impair the validity or worth of the

document and

() That he has a right to transfer the tle to the goods and that the goods are merchantable

or *t for a parcular purpose, whenever such warranes would have been implied if the

contract of the pares had been to transfer without a document of tle the goods

represented thereby. (n)

ART. 1517 The endorsement of a document of tle shall not ma"e the endorser liable for any

failure on the part of the bailee who issued the document or previous endorsers thereof to

ful*ll their respecve obligaons. (n)

A 8")%&( h& ("-&at"% a ,&$*m"(t &' t" a))a(t%:

#. the genuineness and validity of the document

$. his right to negoate it and,

+. all the warranes of a vendor of goods.

B*t h" ,&"% (&t a))a(t that:

#. the common carrier will ful*ll its obligaon to the deliver the goods or

$. the previous indorsers will ful*ll their obligaon.

ART. 1519 f goods are delivered to a bailee by the owner or by a person whose act in

conveying the tle to them to a purchaser in good faith for value would bind the owner and a

negoable document of tle is issued for them they cannot therea2er, while in possession of

such bailee, be a7ached by garnishment or otherwise or be levied under an eecuon unless

the document be *rst surrendered to the bailee or its negoaon enjoined. The bailee shall

in no case be compelled to deliver up the actual possession of the goods unl the document

is surrendered to him or impounded by the court. (n)

ART. 150 A creditor whose debtor is the owner of a negoable document of tle shall be

entled to such aid from courts of appropriate jurisdicon by injuncon and otherwise in

a7aching such document or in sasfying the claim by means thereof as is allowed at law or in

e1uity in regard to property which cannot readily be a7ached or levied upon by ordinary legal

process. (n)


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of such bailee to hold possession of the goods for him according to the terms of the

document.

5rior to the no*caon to such bailee by the transferor or transferee of a nonDnegoable

document of tle, the tle of the transferee to the goods and the right to ac1uire the

obligaon of such bailee may be defeated by the levy of an a7achment of eecuon upon the

goods by a creditor of the transferor, or by a no*caon to such bailee by the transferor or a

subse1uent purchaser from the transfer of a subse1uent sale of the goods by the transferor.

(n)

ART. 1515


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ART. 159 The unpaid seller of goods loses his lien thereon

(#) oods are no longer in transit within the meaning of the preceding arcle

(#) f the buyer, or his agent in that behalf, obtains delivery of the goods before their arrival at

the appointed desnaon

($) f, a2er the arrival of the goods at the appointed desnaon, the carrier or other bailee

ac"nowledges to the buyer or his agent that he holds the goods on his behalf and connues

in possession of them as bailee for the buyer or his agent and it is immaterial that further

desnaon for the goods may have been indicated by the buyer

(+) f the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his

agent in that behalf.

f the goods are delivered to a ship, freight train, truc", or airplane chartered by the buyer, it

is a 1ueson depending on the circumstances of the parcular case, whether they are in the

possession of the carrier as such or as agent of the buyer.

f part delivery of the goods has been made to the buyer, or his agent in that behalf, the

remainder of the goods may be stopped in transitu, unless such part delivery has been under

such circumstances as to show an agreement with the buyer to give up possession of the

whole of the goods. (n)

ART. 153 The unpaid seller may eercise his right of stoppage in transitu either by obtaining

actual possession of the goods or by giving noce of his claim to the carrier or other bailee in

whose possession the goods are. 4uch noce may be given either to the person in actual

possession of the goods or to his principal. n the la7er case the noce, to be e8ectual, must

be given at such me and under such circumstances that the principal, by the eercise of

reasonable diligence, may prevent a delivery to the buyer.


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f, however, a negoable document of tle has been issued for goods, no seller[s lien or right

of stoppage in transitu shall defeat the right of any purchaser for value in good faith to whom

such document has been negoated, whether such negoaon be prior or subse1uent to the

no*caon to the carrier, or other bailee who issued such document, of the seller[s claim to a

lien or right of stoppage in transitu. (n)

a. Ild common law remedy which is an etension of the lien for the price

and entles the unpaid seller to resume possession of the goods while

they are in transit before the goods come in possession of the vendee ifthe later is or becomes insolvent.

!. >oods are considered to be in transit from the me they are delivered to

a carrier or other bailee by the seller for the purpose of transmission to

the buyer, unl the buyer or his agent ta"es delivery of them from the

carrier. To terminate the transit by delivery to a middleman, it must be

delivery to 'eepnot to transport.

$. >oods are sll considered to be in transit even if they reached their

ulmate desnaon when the buyer rejects them and they remain in the

possession of the carrier.

,. >oods are no longer in transit if the buyer or his agent obtained delivery

of the goods even before they reached their ulmate desnaon, or

when the goods arrived at the ulmate desnaon but the carrier or

other bailee wrongfully refuses to deliver the goods to the buyer or his

agent, or when the carrier, upon arrival of the goods at the ulmate

desnaon, enters into a new contract with the buyer or his agent.

". f there was paral delivery of the goods to the buyer, the remainder of

the goods may be stopped in transitu, unless such part delivery has been

made under such circumstances as to show an agreement with the buyer

to give up possession of the whole.


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b) The resale may be in a public or private sale, but the seller cannot buy them

directly or indirectly. The seller is entled to any pro*t he may ma"e out of the

resale.

c) n case he sells them at a loss, he is entled to recover the di8erence from the

original buyer. t is not essenal to the validity of a resale that previous noce of an

intenon to resell or noce of the me and place or resale be given to the original

buyer.

d) Da*ages recoverable$


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+. refuse to accept goods and maintain acon for damages

. rescind _ refuse to accept goods or return (or o8er to return) goods _ recover price

paid

ART. 1545: EST CREIT COR. CA

A provision in a contract of lease with opon to purchase (which is treated as a sale of

movable on installments) that the buyerDlessee /absolutely releases the lessor from any

liability whatsoever as to any and all ma7ers in relaon to warranty in accordance with the

provisions hereina2er spulated,0 was an ;X5;44


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A)t. 1549.The vendee need not appeal from the decision in order that the vendor may

become liable for evicon. (n)

A)t. 1550.


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(#)


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A)t. 15G1. The form of sale of large ca7le shall be governed by special laws. (n)

CONSUER ACT: RA 7394

A)t. 6G.Addional 5rovisions on


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pares when the contract or the sale was made were in some other place, then that place is

the place of delivery.


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+. a2er the lapse of a reasonable me, he retains the goods without inmang to the

seller that he has rejected them.

;ercise of acts of ownership over the goods is a manifestaon of acceptance, such as ma"ing

use of them as owner, ma"ing alteraons in the goods or subjecng it to the process of

manufacture. ;X';5TIN 9uyerSs right to ma"e a test of goods, !*t &( +' ("$"%%a)= to

enable him to determine whether to accept or reject the goods.

BREACH OF WARRANT;

ART. 15G6:a) The purpose of the noce of breach of warranty is to 5IT;'T the seller against

belated damage claims which would prevent the seller from ma"ing an ade1uate

and proper invesgaon of his alleged liability.

b) Acceptance of delivery means an A44;NT to become I


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ART. 1593 ESTENT

4eller precluded from further etrajudicially foreclosing the addional security put up by

the buyer himself.

NORTHERN OTORS SAINOSO


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ART. 159G.


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warrant each of the various parts of which it may be composed, ecept in the case of evicon

from the whole or the part of greater value. (#&+$a)

ART. 163. 4hould the vendor have pro*ted by some of the fruits or received anything from

the inheritance sold, he shall pay the vendee thereof, if the contrary has not been spulated.

(#&++)

ART. 1633. The vendee shall, on his part, reimburse the vendor for all that the la7er may have

paid for the debts of and charges on the estate and sasfy the credits he may have against

the same, unless there is an agreement to the contrary. (#&+)

CASES

SON< FO CO. HAWAIIAN HI2 CO.

2UNETA OTOR CO. SA2>AOR

IFC RAIRE

UC ; HIAN

FI2IN>EST CREIT COR. CA

SUERCARS ANA. COR. F2ORES

>I. E?TINENTIONA2 REETION

ART. 1601. 'onvenonal redempon shall ta"e place when the vendor reserves the right to

repurchase the thing sold, with the obligaon to comply with the provisions of Arcle #-#-

and other spulaons which may have been agreed upon. (#&@%)

C&("(&(a )","m8&( the vendor reserves the right to repurchase the thing sold,

with the obligaon of returning the price of the sale the epenses of the contract, the

necessary and useful epenses made on the thing, and other payments made by reason

of the sale.

E*+ta!" m&)t-a-"3 one which, although lac"ing in some formality or other re1uisites

demanded by a statute, nevertheless reveals the intenon of the pares to charge real

property as a security for debt, and contains nothing impossible or contrary to law

Ba,-"% &' a( "*+ta!" m&)t-a-"

ART. 160. The contract shall be presumed to be an e1uitable mortgage, in any of the

following cases

(#)


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Need not have separate consideraon in

order to be valid and e8ecve

?ust have a consideraon separate and

disnct from purchase price

?ay not be beyond the #@ year period ?ay be beyond the #@ year period

e1uires tender of payment of amount

re1uired by law, including consignment

thereof if tender cannot be made e8ecvely

?ay be eercised by noce

A)t. 1603. n case of doubt, a contract purporng to be a sale with right to repurchase shall

be construed as an e1uitable mortgage. (n)

A)t. 1604. The provisions of Arcle #-@$ shall also apply to a contract purporng to be an

absolute sale. (n)

A)t. 1605. n the cases referred to in Arcles #-@$ and #-@, the apparent vendor may as" for

the reformaon of the instrument. (n)

ERIO OF REETION

A)t. 1606. The right referred to in Arcle #-@#, in the absence of an epress agreement, shall

last four years from the date of the contract.

4hould there be an agreement, the period cannot eceed ten years.

Fowever, the vendor may sll eercise the right to repurchase within thirty days from the

me *nal judgment was rendered in a civil acon on the basis that the contract was a true

sale with right to repurchase. (#&@a)


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b) The creditors of the vendor cannot ma"e use of the right of redempon against the

vendee, unl a2er they have ehausted the property of the vendor.

c) f several persons, jointly and in the same contract, should sell an undivided

immovable with a right of repurchase, none of them may eercise this right for more

than his respecve share. The same rule shall apply if the person who sold an

immovable alone has le2 several heirs.

d)


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ART. 161. The owners of adjoining lands shall also have the right of redempon when a

piece of rural land, the area of which does not eceed one hectare, is alienated, unless the

grantee does not own any rural land.

This right is not applicable to adjacent lands which are separated by broo"s, drains, ravines,

roads and other apparent servitudes for the bene*t of other estates.

f two or more adjoining owners desire to eercise the right of redempon at the same me,

the owner of the adjoining land of smaller area shall be preferred and should both lands

have the same area, the one who *rst re1uested the redempon. (#&$+a)

a)


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OROA2 CA

Although wri7en noce is given to the coDowner, the +@Dday redempon period does not

begin to run from the receipt of such noce, because the transacon covered in the noce

did not pertain to a perfected contract of sale, and must be accompanied by the actual

eecuon and delivery of the deed of sale.

SANTOS CA

URACA CA

ROBERTS AIO

ISTERIO CEBU STATE CO22E


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N;CO SA2ES COR. BA FINANCE

2ICAROS . COR.

TNA ;B;4 C $@@D#@&+#C 4AE;4 C 4AN'F;G C -

sales - j. sanchez - finals reviewer

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