BEFORE

PERFECTION

AT PERFECTION a. If the thing which is the object of the contract has been entirely lost, the contract shall be without any
effect. (Art. 1493 par. 1) ;

b. if the thing should have been lost in part only, the vendee may choose between :
1. withdrawing from the contract and
2. demanding the remaining part, paying its price in proportion to the total sum agreed upon.
(Art. 1493 par. 2)
AFTER 1.) THINGS:
PERFECTION BUT
a. In case of loss, deterioration or improvement of the thing before its delivery, the rules in
BEFORE DELIVERY
Article 1189 shall be observed, the vendor being considered the debtor. (Art 1538)
Hence :
(1) If the thing is lost without the fault of the debtor, the obligation shall be
extinguished;
(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay
damages;
(3) When the thing deteriorates without the fault of the debtor, the impairment is to
be borne by the creditor;
(4) If it deteriorates through the fault of the debtor, the creditor may choose between
the rescission of the obligation and its fulfillment, with indemnity for damages in
either case.

b. PARAS VIEW: (Art 1480)

2.) GOODS:
Unless otherwise agreed, the goods remain at the seller's risk until the ownership therein is
transferred to the buyer (Art. 1504); the seller bears risk of loss under res perit domino rule
(Union Motor vs CA)
AFTER DELIVERY As a rule, when ownership over goods has been transferred to buyer, goods are at buyer’s risk, whether
actual delivery has been made or not, except that:
(1) Where delivery of the goods has been made to the buyer or to a bailee for the buyer, in
pursuance of the contract and the ownership in the goods has been retained by the seller
merely to secure performance by the buyer of his obligations under the contract, the goods are
at the buyer's risk from the time of such delivery;
(2) Where actual delivery has been delayed through the fault of either the buyer or seller the
goods are at the risk of the party in fault. (Art. 1504)