LAW ON SALES

Course Outline

I. In General

Definition - Art. 1458(1)

Villonco Realty Company v. Bormaheco, Inc., 65 SCRA 352, July 25, 1975

Ang Yu Asuncion v. Court of Appeals, 238 SCRA 602, December 2, 1994

Vda. De Ape v. Court of Appeals, 456 SCRA 193, April 15, 2005

Torcuator v. Bernabe, 459 SCRA 439, June 8, 2005

History

Governing Law – RA No. 386 (August 30, 1950); Arts. 1488, 1637

Commercial & Civil Sales

Characteristics

 Consensual – Art. 1475
 Bilateral - Art. 1458
 Onerous – Art. 1350
 Commutative - Art. 2010
 Principal
 Nominate – Art. 1458

Gaite v. Fonacier, 2 SCRA 830, July 31, 1961

Stages

 Negotiation
 Perfection – Arts. 1315, 1475
 Performance - Arts. 1191, 1403(2)
 Consummation

Ainza v. Padua, 462 SCRA 614, June 30, 2005

Kinds of Sale - Arts. 1458(2), 1488, 1544, 1403,

Maceda Law, Recto Law, 1477, 1501)

477 SCRA 666. Adao. 66 Phil 245. September 26. June 23. 470 SCRA 395. 473 SCRA 372. Court of Appeals. 5 SCRA 781. 2005 Edrada v. 2005 Ursal v. 1922 Dichoso v. Court of Appeals. December 14. Roxas. Ramos. 1954  Agency to Sell – Art. July 31. 43 Phil 823. October 14. Court of Appeals. 2005 Sacobia Hills Dev”t Corp. Berger. 1972 Portic v. v. Ty. 1938 . 1245  Barter or Exchange – Arts. 2005 Distinguished from other transactions  Contract for a Piece of Work (Massachusetts Rule) . Maritime Building. January 21. 2005 Heirs of Jesus M. October 19. 461 SCRA 186. 43 SCRA 93. April 22. 473 SCRA 52. Jr. September 20.. 1467  Contract of Lease with Option to Buy  Dacion en Pago – Art. Buntal Manufacturing Co. v. August 31. Mascunana v. 1458]  contract to sell McCullough v. 1466 Heacock v.As to the nature of the subject matter  Sale of real property  Sale of personal property As to whether the object is tangible or intangible/corporeal or incorporeal  Sale of thing  Sale of right As to validity or defect of the transaction  valid sale  rescissible  voidable  unenforceable  void As to the presence or absence of condition  absolute sale  conditional sale [Art. 2005 Keppel Bank V. 468 SCRA 597. 1468. September 26. 1638. 1962 Luzon Brokerage v. Cristobal. 456 SCRA 577.Art. 2005 Carrascoso.

26 SCRA 234. 1355 Villonco Realty Company v.Arts. 2005 Mapalo v. June 23. supra .Arts.. April 30. 466 SCRA 120. 1973 Miguel v.Arts. XII. 1533(5). May 19. 1987 Constitution Arts. Rodriguez v. Art. Court of Appeals. 51 SCRA 120. Bormaheco. 461 SCRA 139. City of Iloilo. Mapalo. 1308. 1459-1462. April 29. Lingad. 1489. 1347. 38 Phil 501. May 29. v. 1469. Parsons Hardware. Catalino. 1390. 1463-1465  Assignment of Credit and Other Incorporeal Rights. 1490-1492. 124FC. 1934 Rubias v.Elements of a Contract of Sale Essential Elements  Consent of the contracting parties  Parties to the Contract  Capacity of Parties. RA8183. 1971 Del Monte Phils. 234Family Code (FC) as amended by RA 6809 Relative – Art. 1974 Melliza v.Arts. 1311. 1636(goods)  Requisites. 1350.Arts. 17 SCRA 114. 60 Phil 13. 1482  Lesion . 1458(1). 1918 Ker v. Inc. 1476(4). RA 529. Batiller.Art. August 9. November 29.Arts. 1968 Estate of Salvador Serra Serra v. 1968 Cause .Quiroga v. April 30. 1352-1353  Price certain in money. 1347-1349  Rules on the object of a contract of sale. 1624-1635 Martinez v. Mactal. 1470. 2005 II. 1403 Absolute . 7 & 8. Aragones. 1327-1328.Arts. 1471-1474. Heirs of Primitivo Hernaez. 1966 Subject matter (things & rights).Arts. 23 SCRA 477. 38 SCRA 524. PD72  Earnest Money. August 23. April 4.Arts. Secs. 56 SCRA 647.

and Salas v. v. 1975 Goldenrod v. 1996 Formalities of Contract of Sale (Statutes of Fraud) . Court of Appeals. 1973 Natural Elements  warranties  subrogation Accidental Elements III. Ramos. 1483. 1916 Dalion v. Sr. March 28. February 28. v. Fernando. May 27. Sr. August 31. 1970 Velasco v. 468 SCRA 597. September 5. 21 SCRA 246. 1990 Yuvienco v. Sec. 1403. 1479(1) Cruz v. June 29. 145 SCRA 368. Court of Appeals. January 30. 1972 Equatorial Realty Dev’t.. 22 SCRA 1000. 182 SCRA 872. 1324 Sanchez v. June 14. Court of Appeals. 1981 . Santos. December 28. 51 SCRA 439. Rigos. March 13. Sr. 1967 Cuyugan v. December 9. 477 SCRA 173. 1998 Edrada v. Inc. 66 SCRA 575. March 3.Spouses Doromal . 2005 Philippine Free Press. Dacuycuy. 299 SCRA 141. 22 Act 1147 (Cattle Registration Act) Paredes v. October 24. 1965 De Leon v. 1475-1476. v.Arts. 34 Phil 100. Inc. 1625.Arts.Arts. November 21. Salvador. 1968 Inigo v. Rogers. supra Contract of Option. 36 SCRA 566. Fernando. 2005 Cruz v. Espino. 27 SCRA 484. 13 SCRA 26. 104 SCRA 668. 473 SCRA 639. Court of Appeals.. 1356-1358. Court of Appeals.Perfection of the Contract When perfected. 1874. September 28. Court of Appeals.. 1969 Laperal v. Inc. 1479. November 24. 2005 Morales Dev’t Co. Maloto. 264 SCRA 483. Mayfair Theater.

1915 . October 11. March 22. v. 2005 IV. 1480. 150 SCRA 336. Tabora. 1505  Estoppel. 1433-1434  Sale by an apparent owner  Purchase at Merchant’s Store. August 2. 467 SCRA 341. 1538(1189). 472 SCRA 274. 1504. 1459. 56 Phil 598 [1932] Masiclat v. 200 SCRA 74. 2005 Siy Cong Bieng and Co. 2005 Sigaya v. Court of Appeals. Centeno. August 18. 1991 Santos v. 30 Phil 211. 1496.Vda. 1503(1). Velasco. 470 SCRA 291.Art. 1493-1494.Art.Arts. 453 SCRA 630. Court of Appeals. August 11. 1956 When/How transfer is effected? .Rights and Obligations of the Vendor . 1502(2)  conditional sales . Market or Fair – Art. v. October 25.G. 2005 Exceptions:  sale or return . 5143. May 29. 1987 Risk of Loss or Deterioration (Total/Partial). 475 SCRA 679.Arts. 1588 General Rule: Ilao-Quianay v. 1547 Cuison v.Arts. Mapile. 474 SCRA 246. 1477.Arts. April 30. Remoto. 2005 Premiere Dev’t Bank v. November 22. 1174 General Rule: Res perit domino Exceptions:  Stipulation  Security Title  Delay Lawyer’s Cooperative v. 1495 To transfer ownership  Who can transfer ownership? General Rule . 1547. May 31. HSBC. 1958 Salonga v. Manalili. 1502(1)  sale on approval or trial Art. 1505-1506. March 18. De Jomoc v. Concepcion. 13 SCRA 762. Mayuga. Court of Appeals. September 20. 2005 Exceptions: Art. 1478. 1458(2)  Vallarta v. 1965 De Lizardi v. 54 O.Arts. 1431. 559 Sun Bros. Yaptico. 1163.

22 SCRA 1247. 1963 To deliver the object and its accessions . Rosete. 472 SCRA 274. Court of Appeals. Perez. Berenguer. Mayuga. 1477  Actual (Real or Material) .Art.Art. 1501. supra Bautista v. Court of Appeals. August 9. 1968 Quimson v. 2005 Sigaya v. February 27.Arts. 521(3) Kuenzle & Streiff v. 1918 Daguilan v. 1537(1164) Kinds of Delivery of Incorporeal Property (Quasi-tradition) . supra Hanopol v. 1503. 498(1)  tradition longa manu. February 11. February 18. Sioson. De Jomoc v. 1909 Addison v. April 30. Macke & Chandler.Art. 1498(2). Appliances v.Arts. IAC.Arts. 2095 Kinds of Delivery of Corporeal Property (Tradition) . December 16.Art. 1988 . November 28. 39 Phil 643. 1497  Constructive (Symbolic or Formal)  delivery by the execution of a public instrument. October 11. Pilapil. 14 Phil 610. 168 SCRA 22. 87 Phil 159. 7 SCRA 452. March 27.Art. 7 SCRA 977. 1919 Paylago v. February 28. 1963 Double Sales. 1919 Lichauco v.Art. 1970 Vda. 1499  tradition constitutum possessorium. Jarabe. Remoto. Court of Appeals. August 3. 39 Phil 615.Art. 31 SCRA 558. 1499  tradition brevi manu. 1950 When not applicable?  unregistered lands Carumba v. 1500  delivery to a common carrier. 38 Phil 404. 1523.Art.Sun Bros. Felix. supra Ulep v. 1582  when goods are in the possession of a third person.1544 Rule (Movables/Immovables) Cuison v.

1926 . October 23. September 18. ). 1953 Prescription. f.Arts. 2005 Santa Ana. Meyer & Co. Corp. Go Joco. July 8. 1918 Bislig Bay Lumber Co. v. 1975 Board of Liquidators v.o. Villablanca. 1546 Carrascoso.f.f. 1960 Quality/Quantity. 1629. Court of Appeals. November 10. 1567. v. October 24. 1543 Warranties . v. December 17.i. 1522. December 29.Arts. 45 Phil 296. 1997 Florendo v. 1632-1633 Rudolf Lietz. Litton & Co. January 28. 1495. 198 SCRA 826. supra Philippine Manufacturing Co.s. 1952 Place of Delivery . 1911 Philippine Suburban Dev’t. 1571.Arts. 1966 Asiain v. Jr.. 38 Phil 606. Flores. April 18. Jr. Foz. v. 1630. The Auditor General. Inc. 18 SCRA 973. v. Jr. 1975 Dy. 478 SCRA 451. v.Art. June 20. January 21. 1521(1). 1521(2) Republic v. 92 Phil 145. v. Floro. Court of Appeals. c. 94 Phil 52. November 28. 1961 Time of Delivery . 1536(1198) Visayan Distributors. October 15. 1928 Not bound to deliver when? . CA. 110 Phil 482. December 19. 1524.a.Art. 1923 Azarraga v.. 68 SCRA 18. 1582 Behn. Jalandoni. 1628. 1631 Express.. Inc.Arts.Pasagui v. CIR. Gay.b. 1481. v. December 29. v. 1539-1543. Court of Appeals.Art. 52 Phil 599. v. 274 SCRA 597. 1251. 48 Phil 621. 1 SCRA 156. 20 Phil 388. Hernandez. Yangco. 63 SCRA 397. 1991 Power Commercial and Ind’l Corp.

2005 VI. 1521 last par.Arts. 1585-1588. 1164  Acceptance. 1590. Caparros. Lasam.1527-1529. 1525-1526  withhold delivery (possessory lien) . 1164.Arts. October 14.Art. 1545  dealer’s talk  false representation Implied warranties  warranty against eviction (warranty of title) ). Inc. 1567- 1581. Heruela. 1941 Mendoza v. San Francisco del Monte.Arts. June 27.Arts. 1533 . 1584. 1582.Arts. 1480. 1537. People. 1593  Time and Place  Liability for interest. 2005 Power Commercial and Ind’l Corp. 1561. 473 SCRA 79. 1530-1532. 1487. 1560. v. 1562-1565. 1535. 94 Phil 317. 1548-1559  warranty against hidden encumbrances or defects).Arts. January 30. V. 1537.Arts. 1535. August 25. 615  warranty of quality).Remedies for Breach of Contract  Remedies of an Unpaid Seller. 1593  The Maceda Law (RA 6552)– Sale of Immovables on Installment Ramos v. 1538. 1589  Right of Inspection/Examination).Arts.Distinguished from:  condition. 2241(3)  stoppage in transitu ).Art. 468 SCRA 278. 1599(5) Guinhawa v. CA.Arts. 1586.Art. 1636(2)  resell the goods. 476 SCRA 247.Arts. 2005 Fabrigas v.Art. 72 Phil 506. November 25.Rights and Obligations of the Vendee  Payment of Price . 1163. 1582-1583. supra Bautista v. 1954 Others). 613. 1481  Right to the fruits.

Arts. 77 Phil 782. Hawaiian-Phil. 1231. Sapinoso. 472 SCRA 339. 1571. 1191. 1542-1543. February 28. 108 Phil 1037. 1598  damages  rescission. May 29. 23 SCRA 791. 1481 Recto Law – Sale of Movables on Installment. 1612. 1611-1518. Co. Yap. 1969 Cruz v. December 22. 1676-1677  Equitable Mortgage. CFI Capiz Br. 1580  action for the price – specific performance. Court of Appeals.Arts. Inc. 1567. 1606  Who may exercise the right to redeem? . 77 SCRA 152. 1591-1593. 1972 Marquez v.Arts. 1960 Industrial Finance Corp. v. 1970 UMC v. Salvador. CA. 1539. May 27. v. Filipinas Investment & Finance Corp. Bacaron. Ramirez. 1602-1605  Period to Redeem.Arts. January 31. 1607. 1601  Pacto de Retro Sale. 1610.Arts. v. supra Go v. December 29. September 16. 1599  specific performance.Arts. 28 SCRA 161. 1484. 1626. v. 1608. First Nat’l Bank of Portland.Extinguishment of Sale  Causes. September 12. 38 P2d 48 Remedies of the Buyer.Arts. 1484-1486 Luneta Motor C. v.Art. 33 SCRA 1970.Arts. 1614-15 Cadungog v. May 26. 1534. July 26. 1597. 1962 Song Fo & Co. 1925 Weyerhauser Timber Co. 1977 Yturralde v. 1556. 2005 Gerardino. Dy Hian Tat. 1609. 1596 Katigbak v. 4 SCRA 242.Art. 1595  action for damages. 1567. Sr.Art.Art. 1977 Northern Motors. 1946 . 80 SCRA 646. 1600.Arts. 1634-1635  Redemption  Conventional . 2005 Salonga v. v. 1532. 47 Phil 821. 469 SCRA 561. May 16. Concepcion.. Valencia. 43 SCRA 315. III.  rescission. October 11.. 1968 VII.

81 Phil 546. 1971 . 84 SCRA. September 29. Haw Pia. 1948 Ortega v. 1972 Legal Arts. Ngo. March 31. Sr. Orcine. May 30. supra Almendrada v. Court of Appeals. 45 SCRA 164. Court of Appeals. Medel. Aguilar. September 19. 2005 Villasor v. 1978 Heirs of Francisco Parco v. September 30. 2005 Aguilar v. July 31.Quinga v. 478 SCRA 187. December 16. and Salas v. 471 SCRA 311. 1961 Gloria-Diaz v. 1619-1623 Spouses Doromal . Court of Appeals. 38 SCRA 276. 3SCRA 66.