Tradition is a mode of acquiring ownership as a consequence of certain contracts such as sale, by virtue of which, actually or constructively, the object

t is placed in the control and possession of the vendee. Types of delivery: 1. Actual or physical delivery 2. Constructive delivery In Froilan vs. Pan Oriental Shipping Co., the SC held that in the absence of any stipulation to the contrary, ownership of the thing sold passes to the buyer upon the actual or constructive delivery thereof. I. Actual or Physical delivery - Article 1497 provides that the thing sold shall be understood delivered when it is placed in the control and possession of the vendee. Case: Smith, Bell and Co. v Gimenez II. Constructive Delivery - Article 1496 provides that aside from delivery, ownership over the thing subject of the sale is transferred in any manner signifying an agreement that the possession is transferred from the vendor to the vendee. Essence of constructive delivery is the existence of an agreement

between the seller and buyer, and the latter is understood to have control of the subject matter of the sale.

Kinds of Constructive Delivery 1. Constructive delivey by legal formalities ( 1st par. Art. 1498) Rules on constructive delivery: General Rule: Execution of public instrument (i.e. deed of sale) is equivalent to delivery. However in the case of Addison vs Felix, the SC held that for symbolic delivery to have the same effect of tradition, it is necessary that the vendor shall have such CONTROL over the thing sold at the moment of the sale. a. When execution of instrument is sufficient. public

- When there is no impediment whatsoever to prevent thing sold from passing into the tenancy of the purchaser by the sole will of vendor, symbolic delivery through the execution of public instrument is sufficient. b. When not sufficient - notwithstanding the execution, the purchaser cannot have the enjoyment and tenancy of the thing

and make use of it himself or through another in his name because such tenancy and enjoyment are opposed by the interposition of another will --- then there is no delivery. Exception: - if sale had been made under the express agreement of imposing upon the purchaser the obligation to take necessary steps to obtain the material possession of the thing sold, and it were proven that she knew that the thing was in possession of a third person claiming to have property rights therein, such agreement would perfectly valid and it is understood that there is full compliance by the seller of his obligations under the sale by mere execution of public instrument. In the case of Pasagui vs. Villablanca (68 SCRA 18), an additional element can be inferred. Not only must the seller have actual control of the object of the sale at the execution but that such control or ability to transfer physical possession and enjoyment must subsist for a reasonable length of time after the instruments execution. Note: Execution of public instrument gives rise only to a prima facie presumption of delivery which can be rebutted by clear and convincing evidence.

Constructive delivery requires three things before ownership maybe transferred: 1. The seller must have control over the thing. 2. Buyer must be put under control. 3. There must be intention to deliver the thing for purposes of ownership. 2. Symbolic delivery - as to movables, constructive delivery may also be made by the delivery of the keys of the place or depository where the movable is stored or kept. In the case of Lorenzo Dev. Corp vs. CA, the SC held that issuance of acknowledgment receipt of partial payment for the property bought cannot be taken to mean a transfer of ownership. Case: North Negros Sugar Co. v Co. General de Tabacos

3. Transfer Longa Manu Article 1499 provides the delivery of movable property may be made by the mere consent or agreement of the contracting parties, if the thing sold cannot be transferred to the possession of the buyer at the time of sale. Ex. When the seller points the property subject matter of the sale by way of delivery without need of

actually delivering possession.

physical

7. Delivery through carrier - covers sales of goods General rule: - in the absence of stipulation or circumstances to the contrary, delivery to carrier is deemed delivery to the buyer, the premise being that the carrier acts as an agent of the buyer. Free alongside - the seller pays all charges and is subject to risk until the goods are placed alongside the vessel. Delivery of goods alongside the vessel completes the effect of tradition. Free on board - only when the vessel has arrived at the point of destination would there be delivery to the buyer and prior to that point in time, the risk of loss over the subject matter of the sale will be borne by the seller. CIF sales ( costs, insurance and freight) - under the arraignment, amount quoted by the seller, agreed to by the buyer, cover only the cost of insurance freight. the and not and

4. Tradition Brevi Manu - where before the sale, the wouldbe-buyer was already in possession of the would-be-subject matter of the sale, say as lessee and pursuant to sale, he would now hold possession in the concept of an owner. 5. Constitutum Possessorium - takes effect when at the time of the perfection of the sale, the seller held possession of the subject matter in the concept of owner, and pursuant to the contract, the seller continues to hold physical possession no longer in the concept of an owner, but as lessee or any other form of possession other than in the concept of owner. 6. Delivery of Incorporeal Property How delivered? 1. By delivery under first paragraph of Article 1498; 2. By placing of titles of ownership in the possession of buyer; 3. The use and enjoyment by the buyer of the rights pertaining to the incorporeal property with sellers consent.