Doub|e Sa|e

lL was conLend LhaL when buyers boughL Lhe properLy Lhey knew LhaL Lhe same properLy was prevlously
sold Lo Lhem 1herefore slnce Lhey are buyers ln bad falLh ownershlp of Lhe properLy musL perLaln Lo Lhe
buyers who ln good falLh were flrsL ln possesslon ls Lhe conLenLlon correcL? Why?
ne|d no 1he argumenL ls mlsplaced
eLlLloners lnvoke ArLlcle 1344 of Lhe Clvll Code whlch reads
ArLlcle 1344 lf Lhe same Lhlngs should have been sold Lo dlfferenL vendees Lhe
ownershlp shall be Lransferred Lo Lhe person who may have flrsL Laken possesslon Lhereof ln
good falLh lf lL should be movable properLy
Should lL be lmmovable properLy Lhe ownershlp shall belong Lo Lhe person acqulrlng
lL who ln good falLh recorded lL ln Lhe 8eglsLry of roperLy
Should Lhere be no lnscrlpLlon Lhe ownershlp shall perLaln Lo Lhe person who ln
good falLh was flrsL ln possesslon and ln Lhe absence Lhereof Lo Lhe person who presenLs
Lhe oldesL LlLle provlded Lhere ls good falLh (Lmphasls ours)
1he above provlslon does noL apply Lo Lhe lnsLanL case conslderlng LhaL Lhe LransacLlon beLween
peLlLloners and spouses 8elmes ls a mere conLracL Lo sell noL a conLracL of sale
Along Lhe same veln ln 5ps 5ettooo v coqolot C8 no 139173 lebruary 26 2007 Lhere was a
conLracL where a parLlal paymenL was made 1he balance was Lo be pald on an agreed daLe and afLer
paymenL Lhe owners wlll execuLe Lhe flnal deed of sale
1he SC held lL be a conLracL Lo sell
A conLracL Lo sell ls akln Lo a condlLlonal sale where Lhe efflcacy or obllgaLory force of Lhe
vendor's obllgaLlon Lo Lransfer LlLle ls subordlnaLe Lo Lhe happenlng of a fuLure and uncerLaln evenL so
LhaL lf Lhe suspenslve condlLlon does Lake place Lhe parLles would sLand as lf Lhe condlLlonal obllgaLlon
had never exlsLed 1he suspenslve condlLlon ls commonly Lhe full paymenL of Lhe purchase prlce
(hlllpplne naLlonal 8ank v CourL of Appeals and Lapaz kaw ngo C8 no 119380 SepLember 26 1996
clLlng 8ose acklng Co lnc v CourL of Appeals 167 SC8A 309 318 (1988) and Llm v CourL of Appeals 182
SC8A 364 670 (1990))
1he dlfferences beLween a conLracL Lo sell and a conLracL of sale are wellseLLled ln [urlsprudence
As early as 1931 ln 5loq ee v 5ootos 47 CC 6372 (1931) lL was held
x x x a dlsLlncLlon musL be made beLween a conLracL of sale ln whlch LlLle passes Lo
Lhe buyer upon dellvery of Lhe Lhlng sold and a conLracL Lo sell x x x where by agreemenL Lhe
ownershlp ls reserved ln Lhe seller and ls noL Lo pass unLll Lhe full paymenL of Lhe purchase
prlce ls made ln Lhe flrsL case nonpaymenL of Lhe prlce ls a poslLlve suspenslve condlLlon
8elng conLrarles Lhelr effecL ln law cannoL be ldenLlcal ln Lhe flrsL case Lhe vendor has losL
and cannoL recover Lhe ownershlp of Lhe land sold unLll and unless Lhe conLracL of sale lLself
ls resolved and seL aslde ln Lhe second case however Lhe LlLle remalns ln Lhe vendor lf Lhe
vendee does noL comply wlLh Lhe condlLlon precedenL of maklng paymenL aL Lhe Llme
speclfled ln Lhe conLracL
ln oLher words ln a conLracL Lo sell ownershlp ls reLalned by Lhe seller and ls noL Lo pass Lo Lhe
buyer unLll full paymenL of Lhe prlce(!aclnLo v kaparaz 209 SC8A 246 (1992)
ln Lhls case Lhe 8ecelpL for arLlal aymenL" shows LhaL Lhe Lrue agreemenL beLween Lhe parLles
ls a conLracL Lo sell
llrsL ownershlp over Lhe properLy was reLalned by sellers and was noL Lo pass Lo buyer unLll full
paymenL of Lhe purchase prlce 1hus owners need noL push Lhrough wlLh Lhe sale should buyer fall Lo
remlL Lhe balance of Lhe purchase prlce before Lhe deadllne on March 23 1990 ln effecL peLlLloners have
Lhe rlghL Lo resclnd unllaLerally Lhe conLracL Lhe momenL respondenL falls Lo pay wlLhln Lhe flxed perlod
(Chua v CA C8 no 119233 Aprll 9 2003 401 SC8A 34)
Second Lhe agreemenL beLween Lhe parLles was noL embodled ln a deed of sale 1he absence of a
formal deed of conveyance ls a sLrong lndlcaLlon LhaL Lhe parLles dld noL lnLend lmmedlaLe Lransfer of
ownershlp buL only a Lransfer afLer full paymenL of Lhe purchase prlce
1hlrd seller/owners reLalned possesslon of Lhe cerLlflcaLe of LlLle of Lhe loL 1hls ls an addlLlonal
lndlcaLlon LhaL Lhe agreemenL dld noL Lransfer Lo Lhe buyer elLher by acLual or consLrucLlve dellvery
ownershlp of Lhe properLy
lL ls Lrue LhaL ArLlcle 1482 of Lhe Clvll Code provldes LhaL Whenever earnesL money ls glven ln a
conLracL of sale lL shall be consldered as parL of Lhe prlce and proof of Lhe perfecLlon of Lhe conLracL"
Powever Lhls arLlcle speaks of earnesL money glven ln a conLracL of sale ln Lhls case Lhe earnesL money
was glven ln a conLracL Lo sell 1he earnesL money forms parL of Lhe conslderaLlon only lf Lhe sale ls
consummaLed upon full paymenL of Lhe purchase prlce now slnce Lhe earnesL money was glven ln a
conLracL Lo sell ArLlcle 1482 whlch speaks of a conLracL of sale does noL apply