Professional Documents
Culture Documents
REVIEWLAW
II -
LAW ON
SALES
Atty. Crisostomo Uribe - Course Outline (Dec.
!!"#
Donnell R. A$%ton & Recoletos 'e %nil% - Colle$e
o) L%*
1
Art. 1458 (CC) By the contract of sale, one of
the contracting parties obligates himself to Insur%nce contr%cts.
t r an s f e r o w n er sh i p o f a n d t o d e l i e r a
determinate thing, and the other to pay 9. Nomin%te contr%ct - ,%s % %rticul%r
therefor a price in money or its e!"ialent. n%me to 'istin$uis, it )rom ot,ers.
As to n%ture/
#hen one of the parties deliers a thing and
the other pays a price it constit"te a contract 1. mo+%ble or immo+%ble - 7,is is imort%nt
of sale$ bec%use one must 'etermine t,e obect o) t,e
s%le.
Not necess%rily. Not %ll 'eli+ery o) % t,in$ %n'
t,e concomit%nt %yment o) % rice constitute % St%tute o) :r%u's/
contr%ct o) s%le. It coul' be % contr%ct o) le%se.
W,%t is necess%ry is t,e intent o) t,e %rties to %. mo+%ble
tr%ns)er o*ners,i o+er t,e subect m%tter o) t,e b. immo+%ble
contr%ct o) s%le. %ce'% L%*
Recto L%*
Note/ S%le is % contr%ct %n' t,ere)ore0 t,e
ro+ision on obli$%tions %n' contr%ct un'er t,e . A t,in$ or % ri$,t - imort%nt %s to t,e mo'e o)
ci+il co'e m%y $ener%lly %ly. 'eli+ery.
4
contr%ct o) s%le %n' o) t,e contr%ct o) %$ency to t,e %rties in t,e s%le *%s )or$e'. I) t,e
sell0 t,e essenti%l cl%uses o) t,e *,ole si$n%ture o) t,e seller *%s )or$e'0 t,%t *oul' be
instrument s,%ll be consi'ere'. % )ictitious contr%ct. 7,e %lle$e' seller *ill not
,%+e %rtici%tion in t,e e2ecution o) t,e
I) %ssumin$ t,is is % contr%ct o) %$ency t,e contr%ct.
o*ners,i 'oes not %ss to ;0 t,e o*ner-seller
s,%ll be%r t,e loss %n' notin$ t,%t ; is not %im"lated Contract
ne$li$ent un'er t,e )%cts. I) ,o*e+er it is %
contr%ct o) s%le0 t,en o*ners,i %sses to ;0 >Ere t,e %rties %ctu%lly ,%+e %rtici%tion.
%n' since ,e is t,e o*ner0 ,e be%rs t,e loss. 7,ey (t,e %rties# +olunt%rily si$n t,e 'ee' o)
s%le0 ,o*e+er t,ey 'o not inten' to be boun' by
Since bot, %re c,%r%cteristic o) % contr%ct o) t,e terms o) t,e contr%ct0 or t,ey m%y inten' to
s%le %n' %$ency0 t,e ro+isions o) Art. 1599 be boun' but not un'er % contr%ct o) s%le but on
,o*e+er s,%ll be %lie'. >ere0 t,e essenti%l some ot,er contr%ct.
cl%uses o) t,e *,ole instrument must be
in3uire' into. One o) t,e cl%uses or con'ition Bin's o) simul%te' contr%cts
%$ree' uon by t,e %rties is t,%t @; ,%' to %y
t,e rice *it,in 9! '%ys. As suc,0 t,%t *oul' 1. Absolutely simul%te' Contr%cts - >ere0 t,e
m%8e t,e contr%ct %s one o) s%le %n' not o) %rties 'o not *%nt to be boun' by t,e
%$ency. 7,is is bec%use 9! '%ys )rom 'eli+ery0 contr%ct0 t,e common re%son is to 'e)r%u'
*,et,er or not ; ,%s sol' t,ose e%ns to ot,er cre'itors. :or e2%mle0 t,e 'ebtor *ol' sell
ersons0 ,e is %lre%'y obli$e' to %y t,e rice. ,is rem%inin$ roerties in % simul%te'
;ein$ % contr%ct o) s%le t,ere)or %n' t,ere contr%ct to m%8e it %e%r t,%t ,e ,%s no
,%+in$ % 'eli+ery0 o*ners,i %sses to t,e roerty0 t,%t m%y be re%c,e' by ,is
buyer. >ence0 t,e buyer be%rs t,e loss. cre'itors.
7,ere)ore ,e c%nnot be comelle' to %y t,e
rice o) t,e e%ns. . Rel%ti+ely simul%te' contr%cts - >ere it m%y
%e%r to be in % +%li' 'ee' o) s%le but t,ey
2ssential elements of a contract of sale$ %ctu%lly inten' to enter into %not,er contr%ct
suc, t,%t it is %ctu%lly % 'on%tion or to
1. Consent o) t,e contr%ctin$ %rties circum+ent t,e ro+isions o) t,e le$itime.
. O b e c t o r s u b e c t m % t t e r * , i
c , i s % 'etermin%te t,in$ or 'etermin%te 3f consent is gien, wo"ld it mean that the
subect m%tter (m%y eit,er be % t,in$ or ri$,t#. contract is alid$
Ser+ice c%nnot be % subect m%tter o) % Not necess%rily0 bec%use *,en consent is $i+en
contr%ct o) s%le. by %n inc%%cit%te' erson0 suc, is +oi' or
+oi'%ble %s t,e c%se m%y be. 7,is is bec%use
4. C%use or consi'er%tion t,ere %re seci)ic rules )ollo*e' 'een'in$ on
t,e b%sis o) inc%%city.
As to t,e seller/ t,e rice in money or
its e3ui+%lent. #hat are the inds of incapacity
#hat is the effect of a contract of sale when 1. Absolute inc%%city - A %rty c%nnot +%li'ly
there is no consent gien by one or both of $i+e consent to %ny contr%ct.
the parties$
. Rel%ti+e inc%%city - 7,e %rty is ro,ibite' in
I) consent is not $i+en by one or bot, o) t,e enterin$ into seci)ic contr%cts or seci)ic
%rties0 t,e contr%ct is +oi' bec%use one o) t,e ersons or t,in$s.
essenti%l elements is l%c8in$. Un'er t,e l%*0 it is
consi'ere' %s % )ictitious contr%ct. A )ictitious
contr%ct *oul' norm%lly be t,%t @t,e si$n%ture o)
5
%. S%le bet*een souses - 7,e SC *oul' inclu'es t,e %ct o) %c3uirin$ by %ssi$nment %n'
consistently consi'er t,is contr%ct %s +oi'0 s,%ll %ly to l%*yers0 *it, resect to t,e
e2cet/ roerty %n' ri$,ts *,ic, m%y be t,e
1. uri'ic%l c%%city
. C%%city to %ct
mutes
*rite or*,o 'oessu))erin$
ersons not 8no* ,o*
)rom to re%' %n'
9
ci+il inter'iction. considered oid$ 'ay the seller be held
liable for damages$
> o * e + e r0 i ) s u c , m i n o r % c t
u % l l y misreresente' %s to ,is %$e0 ,e *ill 7,in$s ,%+in$ t,e otenti%l e2istence m%y be
be boun' to suc, contr%ct0 un'er t,e rincile t,e obect o) % +%li' s%le. As lon$ %s t,e t,e 4
o) estoel. essenti%l re3uisites o) % contr%ct o) s%le is
resent0 t,en t,ere is % +%li' contr%ct o) s%le.
Note t,%t *,en s%le o) items *,ic, %re
necess%ry *oul' bin' t,%t minor0 but 7,e seller m%y not be li%ble )or '%m%$es
not %s to t,e %ctu%l contr%ct rice but bec%use t,ere %re e2cuses )or non er)orm%nce
only t,e re%son%b le rice o) t,ose o) obli$%tion bec%use it *%s 'ue to )ortuitous
items. e+ent0 %s suc, it is e2cuse'. I) ,o*e+er0 t,e
)%ilure to ro'uce %l%y is t,rou$, ne$li$ence0
b-ect of %"b-ect matter of a contract of sale ,e is li%ble.
(determinate thing or right)
%ale of a lotto ticet is it a alid sale$
1. 7,in$ - Re3uisites o) s%les %s to t,in$s/
I) be)ore t,e 'r%* suc, is % +%li' s%le o) t,e
%. 7,e t,in$ must be *it,in t,e commerce o) tic8et *,et,er t,e *innin$ numbers %e%re' or
men0 suc, %s s%le o) n%+i$%ble ri+ers0 s%le o) not.
c%'%+ers0 s%le o) intern%l or$%ns.
I) %)ter t,e 'r%*0 *oul' 'een' on *,et,er it is %
. ust be licit (not ro,ibite' by l%*# *innin$ or % losin$ tic8et. S%le o) % +%in ,oe is
4. 7,ey must be 'etermin%te % +oi' s%le %s in t,e l%tter c%se.
<
7,%t *oul' be % +%li' s%le e+en i) t,e currency
%ale of a right is otherwise nown as$ is not ,iliine currency0 %s t,e l%* re3uires
only t,%t it be in money or it m%y e+en be its
Assi$nment o) % ri$,t. e3ui+%lent li8e romissory notes0 or letters o)
cre'it.
3s assignment of a right a sale$
I) t,e contr%ct *oul' be entere' into %)ter RA
Not necess%rily. I) t,e %sssi$nment is *it, % 6" *%s ree%le' by RA 14 in 1""90 t,en t,e
+%lu%ble consi'er%tion0 it is % s%le0 i) $r%tuitous seller c%n be comelle' to %y in % currency
or by '%tion in %yment it is not % s%le %s it is ot,er t,%n ,iliine eso. Ot,er*ise
not )or consi'er%tion. E2%mles %re s%le o) % t,e seller c%nnot comel t,e buyer to % in
cre'it or s%le o) s,%res o) stoc8 %re consi'ere' %%nese currency.
consi'ere' %s ri$,ts.
Can there be a alid payment in 1+,+++ 1
:urt,ermore0 t,e ri$,t must no peso coins$
t b e instr%nsmissible. :or % ri$,t to be t,e
obect o) % contr%c t o) s%le 0 t,e s%me m ust not Fes0 but t,e seller c%nnot be comelle' to
be instr%nsmissible. Un'er t,e l%* t,e only t,ree %ccet bec%use un'er ,iliine l%* 1 eso
$ener%l re%sons *,y % ri$,t m%y not be coins only ,%+e le$%l ten'er o*er u to 6!
tr%nsmissble %re 1# by n%ture0 #by stiul%tion0 esos.
4#l%*.
%ale of shares of stocs al"ed at 5+++ b"t
Ri$,ts *,ic, %re urely erson%l c%nnot be % there was no date as to the al"e of the
subect o) s%le by n%ture %re intr%nsmissible0 shares
ri$,ts *,ere erson%l 3u%li)ic%tions o) % erson
%re consi'ere'. Wit, resect to stiul%tions0 7,e rice must be cert%in %s one o) t,e
t,ey m%y be tr%nsmissible by n%ture but by re3uirement in or'er t,%t t,e s%le s,%ll be +%li'.
s t i u l %t i on t , e y m % y b e c o n s i ' 7,e '%te is +ery m%teri%l bec%use t,e +%lue o)
e r e ' instr%nsmissible. Suble%se o) % roerty t,e s,%res c,%n$es 'een'in$ on t,e '%te.
m%y be tr%nsmistte' to %not,er but by
stiul%tion0 it c%nnot be 'one %n' ,ence E+en i) t,e '%te ,%s been )i2e' but t,e time ,%s
instr%nsmissible. In %rtners,i0 t,e ri$,ts in % not been consi'ere' suc, %s t,e oenin$ %n'
seci)ic roerty0 *,ere t,e l%* re3uires t,%t closin$ *it, resect to suc, e2c,%n$e *oul'
%ssi$nment c%nnot be 'one *it,out t,e consent %))ect t,e +%li'ity o) t,e s%le. ;ec%use i) t,e
o) %ll t,e %rtners0 t,e %ssi$nment o) one c%nnot +%lue uon t,e oenin$ is 6! esos but in t,e
be 'one *it,out t,e consent o) %ll t,e %rtners. closin$ it is only 4" esos0 t,en suc, is not
cert%in *,en t,e time is not consi'ere'.
3s the sale of rights perfected by mere
consent$ #ho can fi the price of the sale$
Fes. ;y mere meetin$ o) t,e min's0 %n' *it,out It is best t,%t t,e %rties s,%ll %$ree %s to t,e
t,e e2ecution o) % seci)ic instrument0 t,e s%le rice o) t,e s%le0 but t,e %rties m%y %$ree %s to
s,%ll be +%li'. >o*e+er0 to bin' t,ir' ersons *,o m%y )i2 t,e rice.
suc, s%le must be recor'e' in t,e re$istry o)
roerty. 'ay the sale be perfected if one of the
parties is designated to fi the price$
3n a deed of sale, where the price stated in
the deed was 1++ lapad (1+,+++ yen) 1 It is +%li' ro+i'e' t,e erson 'esi$n%te' to )i2
million yen, as s"ch the sale not being in t,e rice0 t,e rice )i2e' must be %ccete' by
6hilippine peso, a alid sale$ Can the seller t,e ot,er %rty. As to t,e rice0 i) one o) t,e
compel the b"yer to pay in that c"rrency$ %rties 'esi$n%te' )i2e' it %t 1 million but t,e
ot,er %rty 'i' not %ccet0 t,ere is no er)ecte'
contr%ct o) s%le0 bec%use t,e l%tter 'i' not
%ccet0 t,ere bein$ no meetin$ o) t,e min's. Wit, resect to t,e %uctioneer0 ,e m%y *it,'r%*
%s % rule0 be)ore t,e )%ll o) t,e ,%mmer. Unless
'ay a third person be tased by the srcinal t,e bi''in$ ,%s been %nnounce' to be *it,out
parties to fied the price$ reser+e' %s )%r %s t,e %uctioneer is concerne'.
It is +oi' *,en t,e t,ir' erson 'oes not *%nt to ption contracts
)i2 t,e rice or un%ble to )i2 t,e rice.
In t,e c%se o) S%nc,e? +s. Ri$os0 Ri$os o))ere'
I) suc, t,ir' erson *%s %ble to )i2 t,e rice but to sell % %rcel o) l%n' to S%nc,e? )or % cert%in
it is too ,i$, or it is too lo* %n' t,ere is )r%u' rice0 %n' Ri$os $%+e S%nc,e? ye%rs *it,in
emloye'0 t,e contr%ct is not +oi'0 t,e reme'y *,ic, to 'eci'e *,et,er ,e *ill buy it or not. In
o) suc, %rty is to $o to court to )i2 t,e rice. otions t,e otionee or o))eree ,e is not boun'
to urc,%se0 but ,e ,%s t,e otion. 7,ere)ore
'ay a sale be alid if the price of a car is S%nc,e? ,%s t,e otion on *,et,er to buy t,e
al"ed at 1 peso$ l%n' or not. ;e)ore t,e l%se o) t,e ye%r
erio'0 S%nc,e? tol' Ri$os t,%t ,e is buyin$ t,e
Fes0 bec%use un'er t,e l%* $ross in%'e3u%cy l%n'0 but Ri$os re)use' to sell it %n' s%i' t,%t ,e
%s to t,e rice 'oes not in+%li'%te t,e contr%ct0 *%s not boun' by t,is %$reement bec%use t,ere
e2cet %s ot,er*ise ro+i'e' by l%*. *%s no otion money $i+en by S%nc,e? )or l%c8
o) consi'er%tion.
An e2%mle o) t,is e2cetion is t,%t o) lesion
*,ere suc, *oul' in+%li'%te t,e contr%ct o) s%le ;ut t,e SC s%i' t,%t since S%nc,e? t,e o))eree
un'er Art. 141 *,ere t,e $u%r'i%n sells t,e %ccete' t,e o))er %n' consi'ere' to buy *it,in
roerty o) t,e *%r' %n' t,ere is lesion o) more t,e erio' be)ore t,e o))er *%s *it,'r%*n %
t,%n 6G o) t,e +%lue o) suc, t,in$ suc, er)ecte' contr%ct o) s%le *%s cre%te' e+en
contr%ct is rescissible. I) t,e buyer s,oul' be t,e *it,out t,e otion money $i+en by t,e o))eree.
$u%r'i%n Art. 151 s,oul' %ly %n' t,e contr%ct In t,is c%se t,ere *%s no otion contr%ct0 %n'
s,%ll be +oi'. t,is is merely %n otion %$reement *,ereby
*,%t *%s $i+en is merely %n o))er on t,e %rt o)
I) t,ere is % $ross in%'e3u%cy %n' t,e %rties Ri$os0 t,ere)ore be)ore t,e o
inten' %not,er contr%ct0 t,en suc, *oul' be % t i o n * % s *it,'r%*n re$%r'less *,et,er %n
simul%te' s%le0 %n' %s suc, t,e contr%ct s,%ll otion money is $i+en0 % er)ecte' contr%ct o)
be +oi'0 %s *,en t,e re%l urose o) t,e s%le is s%le *%s cre%te'.
'on%tion.
Assumin$ t,ere *%s otion money0 be)ore t,e
3s there a need for deliery in order that a o))eree 'eci'e to buy t,e o))error *it,'r%* on
contract of sale be perfected$ t,e 9t, mont,0 but on t,e 1!t, mont, t,e o ))eree
'eci'e' t,%t t,e o))eror no* *%nt to buy. C%n
t,e o))e ree com el t,e sell er to sell t,e o))er
As % consensu%l contr%ct t,ere is no nee' )or ,%+in$ been *it,'r%*n be)ore it *%s %ccete'=
'eli+ery in or'er t,%t % contr%ct o) s%le *ill be No. 7,e %ction )or seci)ic er)orm%nce *ill not
er)ecte'. 7,e only 3uestion is ,ere t,e time roser bec%use t,e o))eree *,o 'eci'e' to
*,en t,e contr%ct is er)ecte'. buy0 *,en t,e o))error *it,'r%* t,e s%me0 t,ere
is no more o))er to be consi'ere'.
ption sale
;ut t,e o))eree c%n cl%im )or '%m%$es bec%use
An otion s%le is er)ecte' uon t,e )%ll o) t,e t,e o))error is boun' to $i+e t,e o))eree ye%rs
,%mmer or %ny ot,er custom%ry m%nner by *it,in *,ic, to 'eci'e. >e is li%ble not un'er %
*,ic, t,e s%me m%y be consi'ere' er)ecte'. er)ecte' contr%ct o) s%le but on % er)ecte'
;e)ore t,e )%ll o) t,e ,%mmer0 t,e buyer *,o contr%ct to o))er.
m%'e ,is bi' m%y %ctu%lly *it,'r%* ,is bi'.
"
ption money disting"ished from earnest As % rule0 t,ere is no %ctu%l )orm %s ro+i'e' in
money Art. 154 t,%t % contr%ct o) s%le m%y be in
*ritin$0 or by *or' o) mout,0 or %rtly in *ritin$
Otion money is not consi'ere' %rt o) t,e %n' %rtly by *or' o) mout, 0 or m%y be in)erre'
rice e%rnest money is consi'ere' %s %rt o) )rom t,e con'uct o) t,e %rties )or %s lon$ %s t,e
t,e rice but %lso consi'ere' %s roo) o) % essenti%l re3uisites %re resent. ;ut ,o*e+er0
er)ecte' contr%ct o) s%le. *,en t,e l%* itsel) ro+i'es )or % %rticul%r )orm
t,en t,e s%me must be comlie' *it, in or'er
Note ,o*e+er0 %s 'eci'e' by t,e SC0 *,en t,e )or it to be en)orce%ble0 suc, %s t,e st%tute o)
otion money *ill be tre%te' by t,e %rties %s )r%u's %n' t,e c%ttle re$istr%tion 'ecree.
%rt o) t,e rice0 t,e s%me s,%ll be bin'in$
bet*een t,e %rties. Wit,out stiul%tion0 it is not %tat"te of 7ra"ds
consi'ere' %rt o) t,e rice. Otion money is %
consi'er%tion )or t,e otion. In s%le o) % %rcel o) l%n' *,ic, is not in *ritin$0
is % +%li' contr%ct but unen)orce%ble.
2arnest money
I) t,e obect o) t,e s%le is % mo+%ble0 t,e +%lue
E%rnest money m%y be c%lle' by %ny ot,er o) t,e rice %$ree' uon must be consi'ere'
n%me but i) it is consi'ere' by t,e %rties %s %rt %n' not t,e %ctu%l +%lue o) t,e rice must be
o) t,e rice0 suc, *oul' be consi'ere' %s consi'ere'. I) t,e rice is %t le%st 6!! esos %n'
e%rnest money. t,e s%me is not in *ritin$0 t,e s%me is
unen)orce%ble. E+en i) t,e rice is less t,%n 6!!
>o*e+er0 e+en i) t,ere is e%rnest money0 it 'oes esos t,e s%me must be in *ritin$ *,en t,e
not me%n t,%t t,ere is %lre%'y % er)ecte' s%me is not to be er)orme' *it,in 1 ye%r.
contr%ct o) s%le. I) it is merely % roo) o) %
er)ecte' contr%ct o) s%le. E+en i) t,ere is In t,e c%se o) %re'es +s. A3uino0 %re'es ,ere
e%rnest money $i+en0 i) t,e contr%ctin$ %rties *%s % rosecti+e buyer %n' A3uino *%s t,e
,%+e not %$ree' %s to t,e tot%l %mount o) t,e o*ner o) % %rcel o) l%n'. 7,e ne$oti%tion *%s
urc,%se rice0 t,en t,ere *ill ne+er be % m%'e t,rou$, letters %n' tele$r%ms. Ultim%tely
contr%ct o) s%le. t,e o*ner m%'e % letter si$ne' by ,im to
%re'es st%tin$ t,%t ,e %n' ,is *i)e %lre%'y
E+en t,ou$, t,ey ,%+e %$ree' %s to t,e tot%l %$ree' to sell t,e l%n' %t t,e sec i)ic rice.
%mount o) t,e rice %n' %n e%rnest money is >o*e+er0 t,e e2ecution o) t,e s%le s,%ll be
$i+en0 %n' *ere %ble to %$ree %s to t,e tot%l m%'e uon %rri+%l o) %re'es in %l%*%n0 %s
%mount o) t,e rice0 but not %s to t,e obect t,en t,e l%tter is )rom Nort,ern Lu?on. W,en %re'es
t,ere *ill be no er)ecte' contr%ct o) s%le. %rri+e' in %l%*%n0 t,e seller s%i' t,%t ,e *%s
E%rnest money is not t,e only re3uirement in % no lon$er intereste' in sellin$ t,e l%n'. >ence0
er)ecte' contr%ct o) s%le. %re'es )ile' %n %ction to comel A3uino to sell
h e r e i s a p e r f e c t e d s a l e by t h e m e r e t,e l%n'. A3uinoHs 'e)ense on t,e ot,er ,%n'
meeting of the minds, does it mean that it is *%s ,e St%tute o) :r%u's0 since t,ere *%s no
already enforceable$ 'ee' o) s%le0 t,ere *%s no er)ecte' contr%ct o)
s%le. 7,e SC rule' t,%t t,e contr%ct *%s no
Not t,%t uon er)ection t,e %rties to suc, lon$er co+ere' by t,e st%tute o) )r%u's since
contr%ct0 t,e %rties %lre%'y ,%+e t,e ri$,t to t,ere *%s %lre%'y % letter. Un'er t,e l%*0
comel t,e %rties to er)orm t,eir resecti+e seci)ic%lly un'er Art. 15!4 e+en i) t,e contr%ct
obli $%tions. ;ut er) ect io n is su bect to 'oes not comly *it, t,e st%tute o) )r%u's0 t,e
)orm%lities re3uire' by l%* li8e t,e st%tute o) s%me s,%ll be en)orce%ble %n' no lon$er
)r%u's. co+ere' un'er t,e oer%tion o) t,e st%tute o)
)r%u's *,en t,e s%me *%s m%'e t,rou$, some
7,ere m%y be % meetin$ o) t,e min's0 but t,e note or memor%n'um0 be in *ritin$0 %n'
s%me s,%ll be unen)orce%ble. subscribe' by t,e %rty c,%r$e'0 or by ,is
1!
%$ent. >ence0 A3uino c%n be comelle' to on t,eir %$reement bec%use until suc, time
e2ecute % )in%l 'ee' o) s%le. t,ere is no obli$%tion to 'eli+er *,ic, %rise.
3n a deed of sale there can be 1++s ob Secon'ly0 t,e buyer c%nnot comel t,e buyer to
obligations of the endors beca"se of the recei+e t,e )ruits bec%use ,e s,%ll not %c3uire
stip"lation. here are only few obligations re%l ri$,ts o+er suc, )ruits until t,e 'eli+ery o)
imposed by law to the endors, and these t,e t,in$. 7,e buyerHs reme'y is $oin$ %)ter t,e
are9 seller.
A sale of a mango plantation between A and bligation to pay epenses or capital gains
B, A agreed to delier to B the fr"its only ta
after 0 months from the perfection of the
sale. &espite the arrial of the period, the 7,rou$, stiul%tion0 t,e %rties c%n %$ree %s to
seller too him 1 month to delier the fr"its *,o is $oin$ to %y t,e t%2.
to the b"yer. A howeer, sold the fr"its to a
third person : in good faith. Can B recoer 'ay a person sell something which does not
the fr"its from :$ #hat are the remedies of belong to him$ (Bar ;"estion)
the b"yer as against the seller$
Fes. O*ners,i o+er % t,in$ is not % re3uisite in
Un'er t,e l%* un'er Art. 164<0 7,e +en'or is or'er )or % s%le to become +%li'. ;ut i) t,e seller
boun' to 'eli+er t,e t,in$ sol' %n' its 'oes not o*n t,e t,in$ ,e m%y ,%+e % roblem
%ccessions %n' %ccessories in t,e con'ition in i n er )or mi n$ ,i s ob l i$ %t i on t o
*,ic, t,ey *ere uon t,e er)ection o) t,e t r % n s ) e r o*ners,i. 7,e roblem %ctu%lly is
contr%ct. *,et,er or not t,e buyer %c3uire o*ners,i o+er
t,e t,in$ sol' by t,e erson sellin$ *,o 'oes
All t,e )ruits s,%ll ert%in to t,e +en'ee )rom t,e not o*n t,e t,in$. 7,us0 only t,ose ersons
'%y on *,ic, t,e contr%ct *%s er)ecte'. *,o ,%+e t,e ri$,t to sell c%n tr%ns)er
o*ners,i.
Art. 164< ,o*e+er s,oul' be consi'ere' in
rel%tion to Art. 1195 *,ic, ro+i'es t,%t @t,e 7,e o*ner or e+en i) not t,e o*ner % erson ,%s
cre'itor ,%s % ri$,t to t,e )ruits o) t,e t,in$ )rom been $i+en %ut,ority by t,e o*ner0 t,ere)ore ,e
t,e time t,e obli$%tion to 'eli+er it %rises. *ill ,%+e t,e ri$,t to sell0 or t,e l%* %ut,ori?es %
>o*e+er0 ,e s,%ll %c3uire no re%l ri$,t o+er it erson t,e o*er to sell (%rt. 16!6 st%tutory
until t,e s%me ,%s been 'eli+ere' to ,im. o*er to sell# (e.$. t,e not%ry ublic0 t,e
le'$ee un'er le'$e0 un'er t,e mort$%$e l%*
:rom t,e )ore$oin$ t,ere)ore t,e +en'or %ctu%lly t,e li3ui'%tors ,%+e %ut,ority to sell0 t,e
,%s ri$,ts to t,e )ruits but not )rom t,e time o) $u%r'i%n0 recei+ers etc#0 t,ose *,o ,%+e t,e
er)ection. ; is only entitle' to t,e )ruits o) t,e %ut,ority o) t,e court (s,eri)) in %n e2ecution
t,in$ )rom t,e en' o) t,e 9 mont, erio' b%se s%le or )oreclosure s%le#.
11
'ay the b"yer act"ally ac!"ire ownership t,%t by oer%tion o) l%*0 F li8e*ise %c3uire'
oer the thing sold if the seller has no right o*ners,i by estoel by 'ee'.
to sell$
%ale by the nephew of the owner of a parcel
Un'er Art. 16!6 t,e buyer 'oes not %c3uire of land. %ince the nephew co"ld not delier
better title t,%n *,%t t,e seller ,%'. I) t,e seller the land to the b"yer, the b"yer filed a
is neit,er t,e o*ner or 'oes not ,%+e %ut,ority complaint for estafa. 3n this criminal case, for
to sell0 t,e buyer %c3uires no better title t,%n the acc"sed to be ac!"itted, he ased his
*,%t t,e seller ,%'. As %n e2cetion0 t,e buyer "ncle to testify that he act"ally had the
c%n %c3uire better title t,%n *,%t t,e seller ,%'0 a"thority to sell. #hen the "ncle testified in
e+en i) t,e seller is not t,e o*ner or 'oes not co"rt, the nephew was ac!"itted beca"se
,%+e t,e ri$,t to sell0 *,en/ after all, he had the a"thority to sell. After the
a c ! " i t t a l o f t h e n ep h e w a n d t h e b " ye r
%. by estoel in %it - by t,e rincile o) demanded from the "ncle for the deliery,
estoel % erson *ill be reclu'e' )rom the "ncle ref"sed for in reality he said that
'enyin$ t,%t % erson ,%s %ut,ority to sell by he did not a"thori>ed his nephew. %o when a
t,e o*ners %cts or reresent%tions. 7,is ciil case was filed to compel the "ncle to
estoel is ot,er *ise 8no*n %s estoel in delier and transfer ownership oer the
%it (e3uit%ble 8in' o) estoel#. thing, will that action prosper$
%. estoel by 'ee' (tec,nic%l estoel#-Art. Fes0 bec%use t,e o*ner c%nnot be %llo*e' no*
1545. W,en % erson *,o is not t,e o*ner o) t,%t ,is ne,e* *%s not %ut,ori?e' *,en ,e
% t,in$ sells or %lien%tes %n' 'eli+ers it0 %n' testi)ie' in court t,%t ,e $%+e suc, %ut,ority.
l%ter t,e seller or $r%ntor %c3uires title 7,is is consi'ere' %s estoel by recor' %n'
t,ereto0 suc, title %sses by oer%tion o) l%* %lso consi'ere' tec,nic%l estoel.
to t,e buyer or $r%ntee.
&isc"ss ?%ale by an apparent owner@$
%. Estoel by recor' (tec,nic%l estoel#-
As ro+i'e' by )%ctors %ct0 recor'in$ l%*s0 %n'
%. A s%le by %n %%rent o*ner - ot,er l%*s *,ic, en%ble t,e %%rent o*ner o)
$oo's to 'isose o) t,em %s i) ,e *ere t,e re%l
%. urc,%ses )rom % merc,%nt store o*ner.
A and B are co<owners of a parcel of land. A nder the 7actors (an old name for agent)
and B sold it to : erbally. : sold the land for Act, een if the agent has no right to sell a
15+,+++ to =. #o"ld = be considered to hae specific thing a third person may act"ally
ac!"ired ownership oer the parcel of land$ ac!"ire ownership beca"se he can only rely
on the power of attorney as written. 3f for
Un'er Art. 1545 or ot,er*ise 8no*n %s estoel eample an agent thro"gh a special power of
by 'ee' or tec,nic%l estoel. W,en t,e seller attorney was gien the power to p"rchase a
*,o *%s not t,e o*ner %t t,e time o) t,e s%le car, howeer in the erbal instr"ction the
%c3uire' o*ners,i0 %utom%tic%lly o*ners,i agent was a"thori>ed to sell that car only to
%sses to t,e buyer by oer%tion o) l%*. one of the members of a cert
a i n organi>ation. B"t the agent sold the car
>o*e+er0 un'er Art. 1545 'oes not %ly to a person other th an to a member of the
bec%use t,e l%* re3uires t,e 'eli+ery o) t,e organi>ation as directed by the principal.
%rcel o) l%n' to t,e buyer0 %n' un'er t,e #o"ld that b"yer ac!"ire ownership een if
)%cts %rt. 1545 *oul' not %ly bec%use 1. t,ere the agent has no right to sell to that b"yer$
*%s no s,o*in$ t,%t t,ere *%s 'eli+eryJ%yment
%lre%'y 'ue to t,e +erb %l n%ture o) t,e s%le Fes. Un'er Art 1"!! so )%r %s t,ir' ersons %re
,ence unen)orce%ble. >ence it coul' not be s%i' concerne'0 t,ey only ,%+e to rely on t,e SA %s
*ritten e+en i) t,e seller %$ent *%s not
1
%ut,ori?e' %s instructe'0 t,e buyer %c3uire
o*ners,i o+er t,e t,in$ subect o) t,e s%le. 7,e mort$%$ee 'i' not %c3uire o*ners,i by
+irtue o) % 'ee' o) s%le. A )or$e' 'ee' is % +oi'
he elder brother 'ig"el 'apalo donated instrument %n' c%nnot be t,e source o) % +%li'
half of his land to his yo"nger brother title to t,e buyer. 7,is )or$e' 'ee' ,o*e+er0 c%n
beca"se the latter was abo"t to get married. be t,e root o) % +%li' title un'er t,e mirror
3nstead of the yo"nger brother ased his rincile *,en t,e buyer bou$,t it )rom t,e
elder brother to sign a deed of donation, he mort$%$ee in *,ose n%me it *%s re$istere'0
ased the latter to sign a deed of sale not %n' relie' on t,e 7C70 t,en i) ,e %c3uire' t,e
only half of the land b"t the entire parcel of roerty in $oo' )%it,0 t,en ,e ,%' %c3uire'
land. /e was therefore able to register the o*ners,i o+er t,e %rcel o) l%n' un'er Art.
proper ty in his name. After 1+ years, 16!6 in rel%tion to D 16"0 *,en t,e buyer
howeer, he sold this entire parcel of land to bou$,t % %rcel o) l%n' relyin$ on t,e 7C7 %lone
the arcisos. bio"sly, the yo"nger brother %n' buyin$ it in $oo' )%it, t,en ,e *ill ,%+e %
is not a"thori>ed to sell with respect to the better ri$,t t,%n t,e o*ner.
other half, beca"se what was only gien is
only half of the land. B"t the arcisos ;y t,e mere )%ct t,%t t,e buyer 'i' not 8no* t,e
claimed that they bo"ght the land on an e2ecution o) t,e time o) t,e 'ee' necess% rily
apparent owner beca"se the entire property me%n ,e is %lre%'y % buyer in $oo' )%it,= Not
was registered in the ame of the seller. &id necess%rily bec%use t,e l%* re3uires t,%t ,e
the arcisos ac!"ired ownership beca"se ,%' )ully %i' *it,out 8no*le'$e o) 'e)ect in t,e
they bo"ght the entire property from an title o) t,e seller. >e m%y ,%+e %c3uire'
apparent owner$ 8no*le'$e %)ter t,e e2ecution o) t,e 'ee' o)
s%le but be)ore %yment0 ,e c%n no lon$er be
Not necess%rily0 bec%use t,e seller must not consi'ere' % buyer in $oo' )%it,.
only be %n %%rent o*ner but buyer must %lso
be % buyer in $oo' )%it,. 7,e buyers in t,is c%se he owner of a parcel of land entr"sted the
is not in $oo' )%it, bec%use be)ore t,ey bou$,t secretary to tae hold of the C only for
t,e l%n'0 t,ey *ent )irst to t,e ,ouse o) i$uel safeeeping. h"s the secretary forged the
%$%lo to in3uire on *,et,er ,e (youn$er signat"re of his boss in a deed of sale. h"s
brot,er# *oul' %llo* ,is youn$er brot,er to sell he was able to register the property in his
t,%t %rcel o) l%n'. 7,ere)ore t,ey %re in b%' name, and sold this parcel of land to a third
)%it, bec%use t,ey 8ne* %n' bec%use i$uel person, and s"ch person is considered to be
%lso ,%' t,e ri$,t to t,e ,%l) ortion o) t,e l%n' in good faith, then he has ac
*,en t,ey bou$,t t,e entire %rcel o) l%n'. ! " i r e d ownership oer the thing sold een
7,ere)ore t,ey 'i' not %c3uire o*ners,i o+er if the seller had nor right to sell. his is
t,e entire %rcel o) l%n' (%%lo +s. %%lo# beca"se the b"yer bo"ght it from an
apparent owner who disposed of the thing as
he owner of a parcel of land coered by a if it was really owned by him.
C or C, mortgaged a parcel of land to
the creditor and deliered the C or C. nder the ew Ciil Code on negotiable
his mortgagee forged the signat"re of the doc"ments of title, if goods are coered by a
owner in a deed of sale. h"s, he was able to negotiable doc"ment of title and there was a
register the property in his name with that negotiation of this doc"ment
forged deed. hereafter, the mortgagee who a s a conse!"ence of a sale, if the b"yer
was a b"yer in the forged deed, sold that bo"ght the good in good faith and for al"e,
land to a third person who had no nowledge he will be protected "nder the law, and
of the transaction between the mortgagor A ac!"ire ownership oer the goods een if the
a n d m o r t g a g e e B . &i d t h e mo r tg ag e e seller do not hae the right to sell. he seller
ac!"ired ownership$ &id the b"yer ac!"ired may hae ac!"ired oer the doc"ment of title
the property oer the parcel of land$ #hen thro"gh iolence, b"t if it is negotiable
can a b"yer said to be in good faith$ doc"ment of title especially if it is a bearer
14
instr"ment, then the b"yer may ac!"ire Art. 559. The possession of movable property acquired in
ownership oer the goods een if the seller good faith is equivalent to a title. Nevertheless, one who
has lost any movable or has been unlawfully deprived
had no right to sell.
thereof may recover it from the person in possession of the
same.
%"n brothers was the owner
o f t h e refrigerat or (they are engaged in If the possessor of a movable lost or which the owner has
th e b"siness of selling refrigerators) and been unlawfully deprived, has acquired it in good faith at a
public sale, the owner cannot obtain its return without
sold i t to Dope> in an inst allment b asis.
reimbursing the price paid therefor. !"!a#
As stip"lated %"n brothers resered
ownership oer the refrigerator "ntil f"ll ne painting owned by A was stolen from
payment. he b"yer Dope> paid only E++ and
her. Dater on she noticed that the painting
the remaining balance to be paid on a
was in the room of B, and ased how he
monthly basis. /owe er, Dope> sold th e
a c ! " i r e d t h e pa i n t i n g , h e s a i d t ha t h e
refr iger ator to Felasco the ery net day in
ac!"ired the same in a gallery a"ction. Can
his store to Co Cang Chi". %"n brothers after
the owner of the painting from whom the
learning of the s a l e , fi l e d a n a c t i o n
painting was stolen recoer the same from
t o r e c o e r t h e refrigerator. #o"ld the
B$
action prosper$ &id Co Cang Chi" ac!"ired
ownership oer the refrigerator$ Can %"n
A $%llery %uction is not % ublic s%le. Since it is
brothers recoer the refrigerator by
not % ublic s%le0 t,e o*ner c%n reco +er t,e
reimb"rsing the price paid by Co Cang Chi"$
roerty e+en *it,out reimbursement.
As to Vel%sco0 t,e rule un'er Art. 16!6 is t,%t
t,e buyer c%nnot %c3uire better title t,%n *,%t I) it is % ublic
%intin$ s%le0 t,e
ro+i'e' t,e o*ner
o*ner c%n reco+er t,e
reimburses t,e
t,e seller ,%'.
buyer o) t,e rice %i' in t,%t s%le.
As to Co C%n$ C,iu0 ,e %c3uire' o*ners,i
A diamond ring was robbed in a b"s, and
o+er t,e re)ri$er%tor bec%use ,e bou$,t it in %
this same diamond ring has become the
merc,%nt store. Un'er 16!6 l%st %r%$r%,0 i)
ob-ect of a p"blic sale of a pawnshop. Can
t,e o*ner bou$,t t,e t,in$ in $oo' )%it, )rom %
the owner recoer the ring from the b"yer in
merc,%nt store ,e %c3uires o*ners,i o+er t,e
the p"blic sale initiated by the pawnshop$
t,in$. Note0 ,e must ,%+e no 8no*le'$e o) t,e
'e)ect in t,e title o) t,e $oo's.
Fes0 i) t,e buyer is in $oo' )%it,0 %n' so lon$ t,e
o*ner is *illin$ to reimburse t,e buyer o) t,e
As to t,e issue on *,et,er Sun ;rot,ers reco+er
rice %i' in t,%t s%le0 ,e m%y reco+er t,e
t,e re)ri$er%tor )rom Co C%n$ C,iu by
s%me.
reimbursin$ t,e rice %i'. 7,e SC ,el' t,%t
Sun brot,ers c%nnot. 7,is is bec%use un'er Art
Can the owner recoer a thing from the
16!60 t,e o*ners,i o) t,e buyer *,o bou$,t
b"yer who bo"ght in a merchant store$
t,%t t,in$ in t,e merc,%nt store %n' in $oo' )%it,
%n' )or +%lue0 is %bsolute in c,%r%cter.
No. 7,e o*ner c%nnot reco+er t,e t,in$ )rom t,e
buyer e+en i) t,e s%me *%s lost or t,e o*ner
Art. 66" 'oes not %ly to t,is scrn%rio bec%use
*%s unl%*)ully 'eri+e' t,ereo)0 %n' e+en i) t,e
Sun ;ros. *%s not unl%*)ully 'eri+e' nor is t,e
o*ner *is,es to reimburse t,e buyer )or t,e
t,in$ lost. I) t,e t,in$ *%s lost or t,e o*ner is
rice %i'. As % m%tter o) ri$,t0 t,e buyer in
unl%*)ully 'eri+e'0 suc, o*ner c%n reco+er t,e
$oo' )%it, %c3uires %bsolute title o+er t,e t,in$.
s%me e+en i) it *%s sol t,rou$, % ublic s%le or
in % merc,%nt store but suc, o*ner must
/ow is transfer of ownership oer a thing
reimburse t,e erson *,o bou$,t in in $oo'
effected$
)%it, %n' )or +%lue. (Sun brot,ers %n' com%ny
+s. ose Vel%sco %n' Co C%n$ C,u#
It is e))ecte' by 'eli+ery0 %ctu%l or constructi+e.
15
2 e r y ti me th e re i s d e l i e ry , th e b " y e r A c%r *%s sol' %t 16!0!!!0 <60!!! *%s %i' %t
ac!"ires ownership "pon deliery$ t,e e2ecution o) t,e 'ee' o) s%le0 t,e b%l%nce
%y%ble on % mont,ly b%sis. 7,e c%r *%s
Not necess%rily. 7,is is not %n %bsolute t,%t 'eli+ere' to t,e buyer. >o*e+er0 be)ore ,e coul'
uon 'eli+ery %s % conse3uence o) s%le0 t,ere is %y t,e b%l%nce0 t,e c%r *%s 'estroye'0 c%n t,e
tr%ns)er o) o*ners,i. 7,ere %re 8in's o) s%le buyer still be comelle' to %y t,e b%l%nce=
t,%t 'esite 'eli+ery0 t,e buyer 'oes not %c3uire
o*ners,i. E2%mles o) *,ic, %re/ >e c%n still be comelle' to %y t,e b%l%nce.
7,is is bec%use uon 'eli+ery o) t,e c%r to t,e
%. Con'ition%l s%le - >ere o*ners,i is reser+e' buyer0 t,ere bein$ no retention or reser+%tion o)
by t,e seller0 suc, t,%t 'esite 'eli+ery o*ners,i by t,e seller0 o*ners,i %sses to t,e
o*ners,i 'oes not %ss to t,e buyer. 7,e buyer. Un'er Art 16!50 res erit 'omino rule0 t,e
buyer 'oes not %c3uire o*ners,i uon o*ner be%rs t,e loss.
'eli+ery but r%t,er uon t,e ,%enin$ o) t,e
con'ition (usu%lly uon )ull %yment o) t,e 3n sale on approal, who bears the loss$
rice#.
7,e seller %n' not t,e buyer e+en i) t,ere is no
%. A s%le on 7ri%l0 s%le on s%tis)%ction or s%le on 'eli+ery0 bec%use t,e o*ner is still t,e seller.
%ro+%l - Uon 'eli+ery0 e+en i) t,ere is no Un'er t,e res erit 'omino rule0 t,e o*ner be%rs
%ctu%l 'eli+ery0 t,ere is no tr%ns)er o) t,e loss.
o*ners,i %t t,e time o) 'eli+ery. 7,e buyer
*ill %c3uire o*ners,i o+er t,e t,in$ sol' A set of A'G was sold to abora on
*,en t,e buyer si$ni)ies ,is %ccet%nce or installment basis. n the day these boos
%ro+%l o+er t,e t,in$ sol'. E+en I) ,e 'oes were deliered to the office of Atty. abora,
not si$ni)y ,is %ro+%l o*ners,i m%y still the entire bloc where the office of the latter
%ss to ,im i)/ 1# t,ere is % erio' %$ree' is located was b"rned together with the
uon by t,e %rties *it, *,ic, to 'eci'e %n' A'G. Atty abora ref"sed to pay the
uon l%se o) t,e erio' ,e ,%' imlie'ly balance despite demand by lawyer s co.
%ccete' or # e+en be)ore t,e l%se o) % Dawyer s co therefore filed a case. wo
erio'0 ,e m%y be consi'ere' %s to ,%+e defenses were raised 1) res perit domino r"le
imlie'ly %ccete' i) ,e 'i' %n %ct *,erein ,e beca"se there is a stip"lation in the contract
*oul' be consi'ere' to ,%+e %'ote' t,e that the seller shall retain ownership oer the
t r% ns %c ti on t ,e n o *n er s, i * boos "ntil f"ll payment, and if lawyers co
o u l ' b e consi'ere' to ,%+e %ss on t,e was the owner then it sho"ld bear the loss.
buyer (e.$. e+en i) ,e ,%s 1! '%ys *it,in 3s the arg"ment correct$
*,ic, to 'eci'e0 %)ter t*o '%ys ,o*e+er )rom
'eli+ery0 ,e sol' t,e c%r to %not,er# 4# t,ere No. I) t,ere *%s % stiul%tion in t,e contr%ct t,%t
m%y be no erio' t,e buyer is 'eeme' to o*ners,i s,%ll be ret%ine' by l%*yers co until
,%+e %ccete' %)ter t,e l%se o) % )ull %yment *%s m%'e0 t,ere *%s %lso %
re%son%ble time. W,%t is r e % s o n % b l e stiul%tion t,%t t,e ris8 o) loss s,%ll ert%in to
t i m e * i l l ' e e n ' o n t , e t,e buyer %t t,e time t,e boo8s *ere 'eli+ere'
circumst%nces surroun'in$ t,e s%le0 t,e *,%te+er t,e c%use o) t,e loss. 7,is is %n
urose o) t,e s%le0 or t,e n%ture o) t,e t,in$ e2cetion to t,e res erit 'omino rule.
sol'.
Ass"ming there was no stip"lation that the
3n %ale or et"rn, ownership passes to the ris of loss shall pertain to the b"yer "pon
b"yer "pon deliery$ deliery, may the b"yer still be held to
answer for the loss$
In t,is 8in' o) s%le o*ners,i %sses to t,e
buyer uon 'eli+ery. >o*e+er in t,is 8in' o) Un'er Art. 16!50 *,en t,e o*ner reser+e' t,e
s%le0 t,e buyer is $i+en t,e ri$,t to reimburse title to t,e roerty only to secure t,e %yment
t,e title b%c8 to t,e seller.
16
o) t,e rice o) t,e buyer0 t,en by l%*0 ris8 o) loss
s,%ll only ert%in to t,e buyer. 7,is is 8no*n %s I) t,e t,in$ sol' is % mo+%ble0 t,e )irst erson
% security title. 7,ere)ore0 e+en i) t,e buyer 'i' *,o too8 ossession o+er t,e t,in$ s,%ll ,%+e %
not %c3uire title uon 'eli+ery0 ,e be%rs t,e loss. better ri$,t.
#heneer there is delay in the deliery of the I) t,e t,in$ sol' is %n immo+%ble0 t,e buyer *,o
thing sold, who bears the loss$ )irst re$ister in $oo' )%it, *ill ,%+e t,e better
ri$,t0 i) t,ere *%s no re$istr%tion0 t,en t,e
It 'een's *,o m%y be %t )%ult )or t,e 'el%y in erson *,o )irst too8 ossession0 i) no one is in
t,e 'eli+ery. It m%y be t,e seller or t,e buyer. ossession t,en it *ill be t,e buyer *it, t,e
3f for eample, there is a stip"lation that the ol'est title in $oo' )%it,. Koo' )%it, ,ere 'oes
b" ye r m " s t r et r i e e t he g ood s on t he not ert%in to 8no*le'$e o) % 'e)ect o) title o)
wareho"se of the seller on a specific date. t,e secon' buyer since ,e is t,e )irst buyer0
n tha t da t e agr ee d "pon, the sel l e r $oo' )%it, ,ere me%ns ,e ,%s no 8no*le'$e o)
demanded the b"yer to get the goods at the t,e 'e)ect on t,e title o) t,e seller.
wareho"se. &espite s"ch, the b"yer failed to
obtain the goods. he net d 3f a thing is sold to two or more persons,
a y, t h e wareho"se was b"rned. #ho then what will be the effect of9 1) the first b"yer
shall bear the loss$ was the first to register with nowledge of
the second saleH *) the second b"yer was the
>ere t,e seller *%s still t,e o*ner0 ,o*e+er0 t,e first to register with nowledge of the first
buyer *%s %lre%'y in 'el%y in retrie+in$ t,e sale. #ho will hae a better right in these to
$oo's0 ,ence0 un'er Art. 16!50 t,e buyer be%rs scenarios$
t,e loss0 %s %n e2cetion to t,e res erit 'omino
rule. 1. In t,e )irst scen%rio0 ,is 8no*le'$e o) t,e
secon' s%le 'oes not m%8e ,im % re$istr%nt in
3f the seller is the one at fa"lt, who bears the b%' )%it,. Bno*le'$e s,oul' ert%in to one
loss$ *,ic, is rior s%le in or'er to m%8e one %
re$istr%nt in b%' )%it,. >ence0 ,ere ,e ,%s %
7,e remise ,ere0 t,e o*ners,i s,oul' ,%+e better ri$,t.
been %sse' to t,e buyer but t,e $oo's %re still
*it, t,e seller (t,is coul' ,%en by constructi+e . As to t,e secon' scen%rio0 ,e is consi'ere' %
'eli+ery but ,ysic%l ossession is still *it, t,e re$istr%nt in b%' )%it, bec%use o) ,is rior
seller#0 e+en so0 t,e seller s,%ll be%r t,e loss 8no*le'$e o) % )ormer s%le. >ence0 ,e *ill
bec%use ,e *%s t,e one %t )%ult )or t,e 'el%y in not ,%+e % better ri$,t.
t,e 'eli+ery o) t,e t,in$ sol' 'esite 'em%n' by
t,e buyer. 3 f a p er so n b o"gh t t he t hi n g w i t ho "t
nowledge of the prior sale and registered
An owner of a registered land sold the land the same, wo"ld that mean he is a registrant
to B. B did not register the sale. A few days in good faith$
thereafter, A sold again the same parcel of
land to C, who this time registered the sale. Not necess%rily. 7,is is bec%use ,e m%y ,%+e
#ho between B and C hae a better right to %c3uire' 8no*le'$e rior to t,e re$istr%tion. but
this parcel of land$ %)ter buyin$. W,%t is re3uire' by l%* is not %
buyer in $oo' )%it,0 but % re$istr%nt in $oo' )%it,.
It 'een's on *,et,er or not C re$ister t,e s%le
in $oo' )%it,. ;%utist% +s. Sioson
Note/ In Art. 1655 ert%inin$ to 'ouble s%les0 %s he owner sold a registered parcel of land to
to *,ic, rule to %ly *oul' 'een' on t,e B who did not register, neither did he too
n%ture o) t,e t,in$ sol' *,et,er it is immo+%ble physical possession. After the sale they
or % % mo+%ble. I) it is % s%le o) % mo+%ble. eec"ted a lease agreement in which the
19
b"yer is now the lessor and that the seller 7,ere)ore0 i) ARt. 1655 *oul' not %ly0 ; *oul'
b e c a m e t h e l e s s e e . / e n c e , th e s e l l e r ,%+e % better ri$,t bec%use t,ere *%s %ctu%l
contin"ed to be in possession of the land 'eli+ery to ,im. 7,er)ore0 un'er t,e $ener%l rule0
not as a concept of an owner b"t of a lessee. uon 'eli+ery0 o*ners,i %sses to t,e buyer.
After the sale and the contract of lease, A W,en o*ners,i ,%' %sse' to t,e buyer *,en
sold this parcel of land to C, who also did t,e roerty *%s sol' in t,e e2ecution s%le0 t,e
not register the same, and this time C too buyer *oul' not $et %nyt,in$ )rom t,e e2ecution
physical possession. #ho between B and C s%le bec%use ,e merely stes into t,e s,oes o)
had a better right$ t,e u'$ment 'ebtor. Since t,e u'$ment 'ebtor
,%' no o*ners,i o+er t,e l%n' %t t,e time o)
; *oul' ,%+e % better ri$,t bec%use *,en ; s%le0 t,e ,e 'i' not %c3uire o*ners,i by +irtue
e2ecute' % le%se contr%ct *it, A0 ; is in o) t,%t s%le.
conteml%tion o) l%* in ossession o) t,e
roerty0 *,ic, is le$%l ossession0 ,e ob+iously Note/ 7o 'etermine t,%t t,e l%n' is un'er t,e
is t,ere)ore % ossessor in $oo' )%it,0 t,e )irst torrens system0 t,e o*ners,i is ro+en by
*,o too8 ossession in $oo' )%it,. 7,ou$, C 7C7Hs or OC7Hs0 ot,er*ise i) roo) o) o*ners,i
,%' ,ysic%l ossession o+er t,e roerty0 ,e is %re mere t%2 'ecl%r%tions0 it *ill not be
consi'ere' to be t,e one secon' in ossession. consi'ere' %s re$istere' l%n'.
; t,ere)ore *%s consi'ere' to ,%+e % better Obli$%tion to 'eli+er to obect o) t,e s%le
ri$,t.
In t,is obli$%tion one must 'istin$uis, )irst t,e
Note/ Le$%l ossession is su))icient to 'etermine subect m%tter o) t,e s%le *,et,er it is % t,in$ or
%s to *,o ,%+e % better ri$,t bet*een t*o % ri$,t.
ersons.
wnership passe s "pon meeti ng of the
C%rumb% +s. CA minds as a conse!"ence of sale$
%. contr%ry
;y t,e e2ecution
intention o)'oes
% ublic
not instrument
%e%r on (i)t,e
t,e
'ocument# by t,e mere e2ecution o) t,e
1<
ublic instrument0 t,%t is %lre%'y e3ui+%lent to
'eli+ery. >ence0 o*ners,i %sses to t,e In or'er )or t,e o*ners,i to %ss0 it ,%' to be in
buyer. % ublic instrument (constructi+e 'eli+ery#.
%. Deli+ery o) Beys (7r%'icion Symbolic%# 3f for eample the seller and the b"yer
p"rs"ant to their agreement deliered the
%. ;y mere consent or %$reement o) t,e %rties goods to a common carrier, "pon deliery of
ro+i'e' %t t,e time o) t,e s%le ossession o) the goods to a common carrier, wo"ld that
t,e $oo's c%nnot be tr%ns)erre' to t,e buyer res"lt in transfer of ownership immediately$
(e.$. *,en t,e t,in$ *%s t,e subect m%tter o)
t,e le%se0 bec%use be)ore e2ir% tion o) t,e I) 'eli+ery to t,e common c%rrier is 'eli+ery to
le%se t,e t,in$ c%nnot be tr%ns)erre' to t,e t,e buyer0 t,en o*ners,i %sses to t,e buyer
buyer#. uon 'eli+ery to t,e common c%rrier. Suc, is %
$ener%l rule0 t,e e2cetions %re/
%. 7r%'icion ;re+i %nu - >ere0 t,e buyer *%s
%lre%'y in ossession t,e roerty0 but t,ere 1. i) t,ere *%s stiul%tion t,%t o*ners,i *ill not
is % c,%n$e %s to t,e st%tus o) ossession %ss to t,e buyer until )ull %yment.
suc, %s t,%t o) % lessee0 'eosit%ry or %$ent
to ossession in t,e concet o) %n o*ner. . E+en i) t,e 'ee' o) s%le 'oes not ro+i'e )or
suc, stiul%tion0 t,e seller m%y ,%+e obt%ine'
%. 7r%'icion Constitutum ossesorium - >ere % bill o) l%'in$ *,ic, ro+i'es t,%t t,e $oo's
t,e seller *oul' still continue to be in %re 'eli +er%ble to t,e selle r ,imsel) or ,is
ossession o) t,e t,in$ %)ter t,e s%le but no %$ent. 7,us 'esite 'eli+ery o) t,e $oo's to
lon$er in t,e concet o) %n o*ner but in t,e s,i 0 t,ere is no tr%ns)er o) o*ners,i
%not,er c%%city. bec%use it *oul' still be t,e seller *,o *oul'
,%+e t,e ri$,t to obt%in t,e $oo's )rom t,e
he srcin al owner here, : I = whose common c%rrier.
properties are fit"res in a salon, while J I
& was a -"dgment creditor of : I =. Beca"se
of -"dgment rendered by a co"rt in faor of Bin' s o ) Deli+er y o ) Incorore% l roertie s
J, the sheriff leied "pon the properties of : (u%si 7 r%'icion#
and = which was still in the latters physical
p os se ss io n. hi s e ec "t io n s #hat are the three modes of delieries as to
a l e w a s !"estioned by A I B on the rights$
premise that these goods were already sold
to them prior to the ley. /ence, if these 1. E2ecution o) % ublic instrument ()rom t,e
goods were sold to the m prior to the ley, 'eli+ery o) certi)ic%tes0 o*ners,i %sses#
ownership already passed to A I B, and
as s"ch there is nothing more to be . Use by t,e +en'ee o) ,is ri$,ts *it, t,e
leied "pon. B"t the d e b t o r w a s e r +en'ors consent (e.$. in s%les o) s,%res o)
y m " c h i n p h y s i c a l possession. stoc80 t,e +en'ee m%y not %l*%ys necess%rily
'ay A I B be considered as owners of ,%+e t,e ri$,t to e2ercise t,e stoc8,ol'ers
the land despite them not being in act"al ri$,ts o+er t,e s,%re0 t,e buyer c%n only
physical possession of the good sold, and e2ercise suc, ri$,t *it, t,e consent o) t,e
mae them to hae a better right oer the +en'or#.
-"dgment creditors oer an eec"tion sale$
3n a sale of 1+++ pairs of shoes, as agreed
E+en i) t,ere *%s no ,ysic%l ossession %n' "pon by the parties. he seller deliered
t,ere *%s no %ctu%l 'eli+ery0 t,ere m%y be % 1*++ pairs of shoes instead of only 1+++.
constructi+e 'eli+ery by t,e e2ecution o) % ublic 'ay the b"yer ref"sed to accept eerything$
instrument. Un)ortun%tely in t,is c%se0 t,e 'ee'
o) s%le *%s merely in % ri+%te instrument.
1
Un'er t,e l%*0 ,e *oul' only ,%+e t,e ri$,t to c%n only be comelle' t,e %rt *,ic, is
reect t,e e2cess0 but ,e c%n be comelle' to mil%$ros%0 %n' reect t,e combo'i%n rice.
%ccet t,e 1!!!.
%ale of a parcel of land and the price agreed
Ass"ming if what was agreed "pon was "pon is 1 million at 1++ s!. m., the act"al
1+++, and the seller deliered only 8++, can area deli ered was only K5 s!"are meters,
b"yer be compelled to receie the 8++$ what are the remedies of the b"yer$
No0 bec%use un'er t,e l%*0 %rti%l er)orm%nce 1. Seci)ic er)orm%nce i) it is ossible )or t,e
is non er)orm%nce. As % rule0 % cre'itor c%nnot seller to 'eli+er t,e b%l%nce suc, *,en t,e
%ccet %rti%l er)orm%nce o) t,e obli$%tion0 %'%cent l%n' is still o*ne' by t,e seller or
e2cet *,en t,ere is % stiul%tion t,%t %rti%l
'eli+eries is %llo*e'0 or *,en t,e obli$%tion . roortion%l re'uction o) t,e rice is *it, %
ert%ins to one *,ic, is %rtly li3ui'%te' %n' seci)ic %mount $i+en to % seci)ic me%sure.
%rtly unli3ui'%te'0 obli$%tion to 'i))erent term I) t,e s%le is % lum sum s%le0 t,en %ny
%n' con'itions. 'e)iciency in t,e %re%0 t,ere is no ri$,t to
roortion%l re'uction o) t,e rice. :urt,er0
he b"yer accepted only 8++ at 1+++ per pair e+en i) t,ere is %n incre%se in t,e %re%
of shoes, it so happened the seller can no 'eli+ere'0 t,ere *ill %lso be no %''ition%l
longer delier the balance of *++, since what incre%se in t,e rice.
was preio"sly stip"lated was 1+++ pair of
shoes. /ow m"ch can the b"y 4. Rescission - As % rule it *ill not be % reme'y
e r b e compelled to pay$ b%se on t,e )%cts. ;ec%use rescission *ill
only be % reme'y i) t,e %re% l%c8in$ is more
It 'een's on *,et,er t,e buyer *%s %*%re t,%t t,%n 1!G o) t,e %re% %$ree' uon. ;ut e+en
t,e seller coul' no lon$er t,e b%l%nce or *,en i) t,e %re% l%c8in$ is not more t,%n 1!G0
,e %ccete' ,e *%s not %*%re t,%t t,e seller rescission *ill be % reme'y i) t,e buyer c%n
coul' no lon$er 'eli+er t,e b%l%nce. ro+e t,%t ,e *oul' not ,%+e bou$,t t,e l%n'
I) ,e *%s %*%re t,%t t,e seller c%n no lon$er ,%' ,e 8no*n t,%t it *%s less t,%n 1!! s3. m.
'eli+er t,e b%l%nce0 t,en ,e c%n be comelle' to
%y %t t,e contr%ct r%te. In t,is c%se0 !!0!!!. Note/ Rescission %n' roortion%l re'uction i)
t,e roerty 'eli+ere' is o) in)erior 3u%lity. I) by
I) ,e ,%' no 8no*le'$e or %*%reness t,%t t,e %$reement t,e %rties inten' to sell % rice )iel'0
seller c%n no lon$er 'eli+er t,e b%l%nce *,en ,e but it turne' out t,%t !G o) t,e l%n' is not
%ccete'0 t,en un'er t,e l%* t,e buyer c%n only %ctu%lly % rice )iel' %n' c%nnot be l%nte' by
be comelle' to %y t,e )%ir +%lue o) t,is t,in$. %l%y. 7,e reme'y o) t,e buyer is to m%8e %
roortion%l re'uction o) t,e rice i) ,e still
An obligation to delier 1+++ caans of a *oul' *%nt t,e l%n' or rescission *oul' be %
specific rice (milagrosa). /oweer, the seller reme'y i) t,e %re% *,ic, is in)erior is more t,%n
deliered 1*++ caans of both milagrosa and 1!G o) t,e tot%l %re% o) t,e l%n'.
combodian rice. 'ay the b"yer hae the right
to re-ect eerything$ l%ce o) Deli+ery
1"
l%ce %$ree' uon *%s not t,e l%ce o) business o) t,e
buyer0 o) course ,e *oul' ,%+e t,e ri$,t to re)use' to 3s it possible in a C37 arrangement or in an 7B
%ccet t,e 'eli+ery o) t,e $oo's in ,is l%ce o) business. arrangement, the place of deliery shall be the port of
destination$
In ot,er *or's0 *it, resect to t,e l%ce o) 'eli+ery t,e )irst
t,in$ t,%t s,oul' be consi'ere' is t,e/ 7,ese 'eli+ery %rr%n$ements only m%8e rules o)
resumtion. It must $i+e *%y to t,e re%l intention o) t,e
1. stiul%tion %rties %s to t,e l%ce o) 'eli+ery0 *it,out e2ressly
. l%ce )i2e' by us%$e or tr%'e stiul%tin$ %s to t,e l%ce o) 'eli+ery. 7,e intention o) t,e
4. l%ce o) business o) t,e seller %rties %s to t,e l%ce o) 'eli+ery s,%ll be 'etermine' by
5. sellerHs l%ce o) resi'ence t,e l%ce %n' m%nner o) t,e %yment o) t,e rice. W,ere
6. I) t,e t,in$ is not in t,e l%ce o) business seller nor t,e rice is %i'0 t,%t is 'etermin%ti+e o) t,e l%ce o)
buyer0 8no*n bot, to t,e %rties0 but in some ot,er 'eli+ery.
l%ce. 7,e l%ce o) 'eli+ery s,%ll be *,ere t,e t,in$ is
loc%te' %t t,e time o) er)ection o) t,e contr%ct. Un'er Art. 160 %s to t,e l%ce o) %yment0 i) t,ere is no
l%ce %$ree' uon *,ere %yment s,oul' be m%'e0 t,e
l%ces )i2e' by us%$e or tr%'e l%ce o) %yment s,oul' be m%'e to t,e l%ce o) 'eli+ery.
I) t,ere is no stiul%tion %s to t,e l%ce o) 'eli+ery0 t,e l%* In one c%se0 it *%s stiul%te' in t,e contr%ct t,%t t,e seller
ro+i'es t,%t0 it *ill be t,e l%ce )i2e' by t,e us%$e or c%n 'em%n' t,e %yment o) t,e rice0 uon t,e %rri+%l o)
tr%'e. t,e $oo's %t t,e ort o) 'estin%tion in % CI: %rr%n$ement.
7,e SC rule' t,%t t,e l%ce o) 'eli+ery is t,e ort o)
S,iin$ Arr%n$ements l%ce o) 'eli+ery 'estin%tion bec%use it is only %t t,%t ort t,%t t,e seller c%n
'em%n' on t,e %yment o) t,e rice. 7,ey ,%+e %$ree' on
1. :.O.;. (:ree On ;o%r'# Arr%n$ement (oint o) % CI: %rr%n$ement (ort o) 'estin%tion# )or t,e urose o)
Destin%tion# )i2in$ o) t,e rice0 bec%use $ener%lly0 CI: me%ns ort o)
ori$in0 ,o*e+er out o) t,e rice0 it *ill be t,e ort o)
I) t,ere is no l%ce stiul%te' %s to t,e l%ce o) 'eli+ery %n' 'estin%tion0 %n' %yment s,%ll inclu'e t,e cost0 t,e
t,e $oo's %re to be s,ie' on %n :O; b%sis0 t,e l%ce o) insur%nce %n' t,e )rei$,t. 7,e l%ce o) 'eli+ery bein$ t,e
'eli+ery s,%ll be t,e l%ce o*ners,i is 'eeme' to %ss. In ort o) 'estin%tion0 o*ners,i %sses in t,e ort o)
%n :O; %rr%n$ement0 t,e %rties s,oul' ,%+e %$ree' to % 'estin%tion. E))ecti+ely t,e )rei$,t s,%ll be s,oul'ere' by
seci)ic ort *,et,er it is t,e ort o) ori$in or it coul' be t,e t,e buyer0 but t,%t %mount *ill be t%8en to t,e rice )i2e'
ort o) 'estin%tion. by t,e seller.
In %n :O; ort o) ori$in0 t,e l%ce o) 'eli+ery s,%ll be In %not,er c%se0 t,e %rties %$ree' in %n :O;
consi'ere' to be t,e ort o) ori$in. It *oul' be t,e ort o) %rr%n$ement0 but it *%s stiul%te' in t,e contr%ct t,%t t,e
ori$in bec%use :O; me%n :ree On ;o%r'0 %n' :ree On seller c%n 'em%n' t,e %yment o) t,e rice by resentin$
;o%r' me%ns t,%t t,e moment t,e $oo's %rri+e' %t t,e ort t,e bill o) l%'in$ to t,e buyer. 7,e bill o) l%'in$ c%n be
o) ori$in0 t,e seller *ill be )ree )rom %ny e2ense on resente' %t t,e ort o) ori$in to t,e buyer bec%use % bill o)
tr%nsort%tion o) t,e $oo's to t,e buyer. :rom t,e ort o) l%'in$ c%n be t%8en )rom t,e common c%rrier %t t,e ort o)
ori$in0 it *ill be t,e buyer *,o *ill s,oul'er t,e e2enses ori$in. Desite o) %n :O; %rr%n$e0 t,e l%ce o) 'eli+ery is
)or t,e tr%nsort%tion. It *oul' %e%r since t,e buyer *,o t,e ort o) ori$in. :O; ort o) 'estin%tion is %rr%n$e' in t,is
s,oul'er t,e e2enses0 it is t,e buyer *,o is t,e o*ner o) c%se bec%use t,e buyer *oul' *%nt to ,%+e t,e seller to
t,e
t,e $oo's %s it re%c,e'
o*ner un'er t,e%rr%n$ement
t,is :O; ort o) ori$in. I) ,e is %lre%'y
t,ere)ore0 t,e l%ce s,oul'er
$oo's u%ll
to t,e
t,e e2enses )or t,e tr%nsort%tion o) t,e
ort o) 'estin%tion.
o) 'eli+ery s,%ll be t,e ort o) %nil%.
Obli$%tions o) t,e Seller W%rr%nty
In :O; ort o) 'estin%tion %rr%n$ement0 t,e seller *oul'
,%+e to s,oul'er t,e e2enses )or t,e tr%nsort%tion o) t,e &oes 6hilippine law adopt the common law principle of
$oo's0 uto %n' until t,e %rri+%l o) t,e $oo's %t t,e ort o) caeat emptor (b"yer beware)$
'estin%tion. >ence0 'eli+ery %sses %t t,e ort o)
'estin%tion. As % rule0 ,iliine L%* 'oes not %'ot t,e common l%*
. C.I.:. (costs0 insur%nce0)rei$,t# Arr%n$ement (oint o) rincile o) buyer be*%re bec%use o) t,e imlie'
Ori$in# *%rr%nties. E+en in t,e %bsence o) stiul%tion0 t,is
*%rr%nties %re 'eeme' %tt%c,e' to t,e contr%ct0 %n' t,e
buyer m%y ,ol' t,e seller li%ble )or bre%c, o) *%rr%nty.
In % CI: %rr%n$ement0 t,e l%ce o) 'eli+ery is consi'ere' to
be t,e ort o) ori$in bec%use0 t,e rice %i' by t,e buyer
>o*e+er0 it is only % $ener%l rule. 7,ere %re inst%nces
*oul' %lre%'y inclu'e t,e costs0 insur%nce0 %n' )rei$,t.
*,ere t,ere c%n be no imlie' *%rr%nty. E2%mles0 *,ere
7,e buyer %ys )or t,e )rei$,t0 it %e%rs t,ere)ore t,%t
t,ere is no imlie' *%rr%nties %re/
o*ners,i
m%'e %t t,e%sses
ort o)%t t,e ort o) ori$in0 ,ence0 'eli+ery is
ori$in.
!
1. In s%le o) %nim%ls in )%ir (no *%rr%nty %$%inst ,i''en 1++,+++ down payment shall be ret"rned by the endor
'e)ects# (but *it, *%rr%nty %$%inst e+iction or title# to the endee. %alador filed e-ectment s"its against
the s!"atters b"t despite of the decision of the Co"rt
. ublic %uctions (no *%rr%nty %$%inst ,i''en 'e)ects# (but in his faor, the s!"atters wo"ld still wo"ld not leae.
*it, *%rr%nty %$%inst e+iction or title# 3n A"g"st 1K80, %alador offered to ret"rn the 1++,+++
down to the endee on the gro"nd that he was "nable
4. %s is *,ere is s%les (no *%rr%nty %s to t,e )itness o) t,e to remoe the s!"atters to the property. %%C ref"sed
t,in$0 but t,ere is still *%rr%nty %$%inst e+iction# to accept the money and demanded that %alador
eec"te a deed of absol"te sale of its property in its
5. s%le o) secon' ,%n' items faor, in which time it will pay the balance of its price.
he al"e of the land had do"bled at that time,
#hen wo"ld and affirmation of fact or promise of a %alador consigned the 1++ in co"rt and filed an
endor be the basis in holding the seller liable for action for rescission of the deed of conditional sale,
breach of an epress warranty$ pl"s damages. #ill the action prosper$
7,e l%* re3uires t,%t %n %))irm%tion o) )%ct or romise o) Un'er t,e )%cts0 S%l+%'or is not %n %$$rie+e' %rty0 ,ence
t,e seller must rel%te to t,e t,in$ itsel). In ot,er *or's0 it ,e *ill not ,%+e %ny reme'y un'er t,e l%*. In )%ct0 ,e *%s
must rel%te to t,e c,%r%cter o) t,e t,in$0 or to t,e 3u%lity o) t,e one *,o )%ile' to e+ict t,e s3u%tters.
t,e t,in$0 or its title.
7,e %yment o) t,e b%l%nce %s %$ree' uon is m%'e to
Secon'ly0 it is re3uire' t,%t suc, %))irm%tion o) )%ct must 'een' uon t,e remo+%l o) t,e s3u%tters *it,in 9 mos.
,%+e t,e n%tur%l ten'ency to in'uce % erson to urc,%se Cle%rly0 i) not0 imlie'ly )rom t,e )%cts0 t,%t is %n obli$%tion
t,e t,in$ o) t,e seller0 %n' suc, is t,e con'ition )or t,e %yment.
Since suc, con'ition 'i' not ,%en0 *,erein t,e s3u%tters
7,ir'ly0 t,e buyer urc,%se t,e t,in$ relyin$ on t,e )%ile' to )lee0 *oul' suc, con'ition )or t,e %yment o) t,e
%))irm%tion o) )%ct or romise m%'e by t,e seller. b%l%nce *oul' not %rise.
3f the seller told the b"yer that this is the best fertili>er Un'er Art. 16560 it is t,e buyer *,o is $i+en otions un'er
in this world, wo"ld that be the basis in holding the t,e l%*0 'ue to t,e non ,%enin$ o) t,e con'itions 'ue to
seller liable if it wo"ld came o"t that there are other t,e )%ult o) t,e seller. 7,e otions o) t,e seller %re/ 1# Not to
brands of fertili>er that are m"ch better than what was rocee' *it, t,e s%le bec%use t,e con'ition 'i' not
sold to this b"yer$ ,%en # W%i+e t,e ,%enin$ o) t,e con'ition %n'
rocee' *it, t,e s%le. In t,is c%se t,e secon' otion *%s
7,%t c%nnot be t,e b%sis in ,ol'in$ t,e seller li%ble c,osen by t,e buyer. 4# 7re%t t,e non ,%enin$ o) t,e
bec%use0 t,%t *ill be tre%te' merely %s %n oinion. con'ition %s % bre%c, o) *%rr%nty0 *,ic, c%n be t,e b%sis
Unless suc, oinion is m%'e by %n e2ert0 suc, st%tement o) ,ol'in$ t,e seller li%ble )or '%m%$es.
c%nnot be t,e b%sis in ,ol'in$ t,e seller li%ble un'er t,is
e2ress *%rr%nty. Imlie' W%rr%nties
3n a sale of a car, the seller told the b"yer that een 1. W%rr%nty %$%inst e+iction
only with one liter of gasoline, yo" can drie this car . W%rr%nty %$%inst ,i''en 'e)ects
for 5+ m. 3s this an epress warranty$ 4. W%rr%nty o) 3u%lity (W%rr%nty o) )itness )or % %rticul%r
urose#
7,is is %n
t,e c%r e2%mle o)
to consume %n%te2ress
$%s *%rr%nty0
18mJ6!8m %n't,e
m%y ,ol' )%ilure o)
seller 3s warranty against hidden defects incl"de warranty of
li%ble )or bre%c, o) ,is e2ress *%rr%nty. fitness for a partic"lar p"rpose$
&oes it mean that the word g"arantee is "sed, means No bec%use0 in %n imlie' *%rr%nty o) )itness )or %
there is an epress warranty$ %rticul%r urose0 t,e t,in$ m%y not ,%+e %ny ,i''en
'e)ect. As to 1 million buyers t,ey *ill be )ine0 but0 %s to 1
No. Suc, *or' i) it 'oes not $o into t,e c,%r%cter o) t,e erson %s to ,im0 it m%y not be )it )or ,is urose.
t,in$0 t,e 3u%lity o) t,e t,in$ or its title0 suc, *oul' not
ert%in to %n e2ress *%rr%nty. 1. W%rr%nty %$%inst e+iction
3n &ecember 1K85, %alador and the %tar %emi #hat is incl"ded in warranty against eiction$
Cond"ctor Company, eec"ted a deed of conditional
sale wherein the former agreed to sell his *+++ s!. m. 1. 7,%t t,e seller ,%s t,e ri$,t to sell %t t,e time o*ners,i
lot in Cainta, i>al to the latter for the price of 1million, is to %ss %n'
payable 1++,+++ down. he balance 0+ days after the
s!"atters in the property hae been remoed. 3f the . t,%t t,e buyer *ill ,%+e %n' enoy t,e le$%l %n' e%ce)ul
s!"atters hae not been remoed after 0 mos., the ossession.
1
In 'ouble s%les *,ere t,e )irst buyer *%s 'eri+e' o) t,e
'ay the b"yer hold the seller liable for breach of t,in$ bec%use o) % ri$,t o) % secon' buyer *,ic, is
warranty against eiction if the b"yer was depried of imut%ble to t,e +en'or0 suc, *,en t,e buyer *%s
en-oyment and peacef"l possession, een if he was 'eri+e' i) suc, t,in$ bec%use o) %n e2ecution s%le 'ue to
not depried of ownership$ )%ilure o) t,e seller to %y re%l roerty t%2 i) t,e t%2
%ccrue' be)ore t,e s%le.
Fes. ;ec%use t,ere c%n be % u'$ment in )%+or o) % t,ir'
erson *,o *oul' ,%+e t,e ri$,t to t,e ossession o) t,e 3f the b"yer was depried of the thing based on the
t,in$ but ,e is not t,e o*ner. One suc, erson is % lessee. -"dgment of the co"rt that a third person ac!"ired the
Once t,e court consi'er % le%se contr%ct %s % +%li' %n' property by ac!"isitie prescription, can the seller be
bin'in$ le%se0 e+en %s %$%inst t,e buyer0 t,e buyer c%n be held liable for breach of w arranty against eiction$
'eri+e' o) t,e ossession but ,e is not 'eri+e' o)
o*ners,i. 7,us0 t,is coul' be % bre%c, o) *%rr%nty It 'een's on *,et,er t,e rescribe erio' ,%' %lre%'y
%$%inst e+iction bec%use t,en0 ,e *oul' *%rr%nt t,%t t,e been comlete' %t t,e time o) t,e s%le or not. :or e2%mle0
buyer *oul' ,%+e % le$%l %n' e%ce)ul ossession o) t,e i) t,is is b%se' on t,e 1! ye%r %c3uisiti+e rescrition *it,
t,in$. color o) title0 i) t,e occu%nt in *,ose )%+or t,e court
'eci'e' *,o %c3uire' t,e roerty resultin$ in t,e
#hat re!"isites proided by law in order to hold the 'eri+%tion o) t,e buyer o) suc, roerty *%s %lre%'y in
seller liable for breach of w arranty against eiction by ossession )or < ye%rs %t t,e time o) t,e s%le0 but t,e buyer
the b"yer$ ne+er e+en bot,ere' to e2%mine t,e %rcel o) l%n'. W,en
,e %rri+e' %)ter 1 ye%rs t,ere is % u'$ment in )%+or o) t,e
1. 7,ere must be % )in%l u'$ment 'eri+in$ t,e buyer o) occu%nt bec%use t,e occu%nt *%s %ble to comlete t,e
t,e t,in$ in *,ole or in %rt 1! ye%r erio' rescribe by l%* *it,out interrution. >ere0
t,e buyer c%nnot ,ol' t,e seller li%ble. 7,is is no lon$er t,e
. 7,e seller must be noti)ie' (or summone' or consi'ere' )%ult o) t,e seller *,en t,e occu%nt *%s %ble to comlete
%s %rty 'e)en'%nt# t,e erio'. I) t,e buyer only *rote % letter 'em%n'in$ t,e
occu%nt to +%c%te t,e remises t,%t *oul' ,%+e
4. 7,e re%son *,y t,e buyer *%s 'eri+e' o) t,e t,in$ interrute' t,e runnin$ o) t,e rescriti+e erio'. It is t,e
must be b%se' on % ri$,t o) % t,ir' erson e2istin$ e+en )%ult o) t,e buyer *,y ,e is 'eri+e' o) t,is l%n'.
rior to t,e s%le or e+en i) suc, ri$,t o) t,e t,ir' erson
%)ter suc, s%le t,%t must be b%e' on %ct imut%ble to 3f the seller w o"ld be liable "nder this warranty against
t,e +en'or. eiction, what are the possible liabilities of the seller$
#ill a mere letter of a third person claiming a right oer Un'er t,e l%*0 +%lue o) t,e t,in$ %t t,e time o) e+iction not
a property, which letter was receied by the b"yer, can t,e rice0 inclu'in$ t,e )ruits0 costs0 income %n' e2enses
the b"yer hold the seller liable$ %n' '%m%$es %n' interest.
O) course not. 7,e l%* re3uires t,%t t,ere must be )in%l A erson c%n only be ,el' li%ble )or '%m%$es i) ,e is in b%'
u'$ment 'eri+in$ t,e buyer o) t,e t,in$ in *,ole or in )%it,. A seller m%y be ,el' li%ble )or '%m%$es in rel%tion to
%rt. t,is *%rr%nty %$%inst e+iction i) ,e *%s in b%' )%it,.
3n case there is a -"dgment, and s"ch -"dgment was in #hen wo"ld the seller be considered to be in bad
faor of a third person against the b"yer, is it re!"ired faith$ 3f the seller new of the defect of his title at the
3f the b"yer eec"ted a waier, and the seller acted in
good faith, may the seller be held liable$ D%m%$es *ill only be $r%nte' i) t,e seller is in b%'
)%it,. >e is in b%' )%it, *,en t,e seller 'i' not in)orm
Fes0 t,e seller m%y be ,el' li%ble *,en t,e *%i+er is 8no*n t,e buyer o) t,e 'e)ect.
%s *%i+er consciente. It is % *%i+er consciente *,en t,e
buyer e2ecute' % *%i+er not 8no*in$ t,e 'e)ect o) t,e title . I) t,e t,in$ *%s lost 'ue to t,e 'e)ect itsel)
o) t,e seller0 %t t,e s%me time t,e seller 'oes not li8e*ise
8ne* o) suc, 'e)ect. 7,e seller is li%ble )or only t,e +%lue 7,e li%bility *ill be $re%ter i) t,e c%use o) t,e loss *%s
o) t,e t,in$ %t t,e time o) e+iction0 e2clu'in$ t,e ot,er 'ue to t,e 'e)ect itsel)0 t,%n *,en t,e c%use o) t,e
li%bilities. loss *%s 'ue to t,e )%ult o) t,e buyer or to % )ortuitous
e+ent.
I) t,e *%i+er is %n intencion%'% *%i+er0 *it, )ull 8no*le'$e
o) t,e ossibility o) e+iction. In ot,er *or's0 ,e 8no*s t,e In c%se o) 'e)ect t,e seller ,%s to return t,e rice in
'e)ect in t,e title o) t,e seller *,en ,e bou$,t %n' *,en ,e $oo' )%it, or in b%' )%it,.
e2ecute' t,e *%i+er. O) course t,e buyer c%n no lon$er
,ol' t,e seller li%ble )or bre%c, o) *%rr%nty %$%inst e+iction. D%m%$es *ill only be $r%nte' i) t,e seller is in b%'
)%it,. >e is in b%' )%it, *,en t,e seller 'i' not in)orm
3f there is no waier, and the b"yer was depried, will t,e buyer o) t,e 'e)ect.
the seller be held liable$
Note/ D%m%$es %n' interest c%nnot concur in c%se o) loss
O)0 course0 t,e only 'i))erence is t,e e2tent o) t,e li%bility o) 'ue to t,e 'e)ect. W,en t,e seller is in b%' )%it, (+en'or
t,e seller *,et,er ,e is in $oo' )%it, or b%' )%it,. I) seller is *%s %*%re o) t,e 'e)ect# '%m%$es is $r%nte'0 i) in $oo'
in b%' )%it,0 ,e *ill be e+en li%ble )or '%m%$es in c%se o) )%it, (+en'or *%s not %*%re o) t,e 'e)ect# interest s,%ll be
e+iction. $r%nte'.
W%rr%nty %$%inst ,i''en )%ults or 'e)ects In *%rr%nty %$%inst e+iction0 interest %n' '%m%$es concur.
#hat are the re!"irements in order for the seller to be 3f the thing was lost or destroyed d"e to a fort"ito"s
held liable for breach of w arranty against hidden eent, fa"lt of the endee, or d"e to the defect itself,
defects$ how can the b"yer proe that the thing had hidden
defects, when the thing was lost$
1. 7,e 'e)ect must be ,i''en %n' not %tent.
It is % m%tter o) roo). 7,e buyer mi$,t ,%+e %llo*e' %n
. 7,e 'e)ect must ,%+e %lre%'y e2iste' %t t,e time o) t,e e2ert to e2%mine t,e t,in$ be)ore t,e loss o) t,e t,in$. >e
s%le. ,%s % roo) o) t,e 'e)ect o) t,e t,in$ be)ore its loss.
3f the b"yer discoered the defect on the thing bo"ght 2en if the thing with hidden defects was lost or
1+ days after the sale, the seller will be liable for destroyed, is it possible that the seller will not be liable
breach of warranty against hidden defects$ for a single centao, een witho"t a waier$
Not necess%rily bec%use t,e 'e)ect m%y be %tent0 ,ence W,en t,e loss *%s 'ue to % )ortuitous e+ent or )%ult o) t,e
t,e seller c%nnot be ,el' li%ble. Secon'ly0 t,e 'e)ect m%y +en'ee0 %n' t,e +en'or *%s not %*%re o) t,e 'e)ect. In t,is
e2ist %t t,e time %)ter t,e s%le0 t,ere)ore t,e seller c%nnot scen%rio t,e li%bility o) t,e seller is only to return t,e rice
1. I) t,e t,in$ *%s lost or 'estroye' 'ue to % )ortuitous Inclu'e' in t,is *%rr%nt %$%inst ,i''en 'e)ects0 *oul'
e+ent or it *%s lost or 'estroye' 'ue to t,e )%ult o) t,e ert%in to %ny c,%r$e or non-%%rent encumbr%nce not
buyer0 m%y t,e seller still be ,el' li%ble= 'ecl%re' or 8no*n to t,e buyer.
Fes t,e seller *ill still be ,el' li%ble bec%use t,e t,in$ 1. In rel%tion to % s%le o) % %rcel o) l%n'0 %n' suc, is
,%' ,i''en 'e)ects. subect to % ri$,t o) *%y0 *ill t,e seller be li%ble in
rel%tion to bre%c, o) *%rr%nty=
I) t,e c%use o) t,e loss *%s 'ue to t,e )%ult o) t,e
buyer or to % )ortuitous e+ent0 t,e li%bility o) t,e seller Not necess%rily. %ybe it *%s 8no*n to t,e buyer or it
is to return t,e rice less +%lue %t t,e time o) t,e loss *%s 'ecl%re' to t,e buyer. E+en i) it is not 'ecl%re'
*,et,er t,e seller is on $oo' )%it, or b%' )%it,. %n' not 8no*n to t,e buyer but t,e encumbr%nce is
4
%%rent0 ,ence t,e seller c%nnot be ,el' li%ble )or Are there no implied warranties in -"dicial sales$
bre%c, o) *%rr%nty. E+en i) not 8no*n or *%s 'ecl%re'
to t,e buyer or t,e encumbr%nce is non %%rent0 t,e :%lse. 7,ere c%n be imlie' *%rr%nties in u'ici%l s%les.
seller m%y be li%ble *,en t,e encumbr%nce is
re$istere'. 1. 7,ere seems to be % ro+ision *,ere cert%in ersons
suc, %s mort$%$ees0 le'$ees0 %uctioneers0 %n'
he sale of a parcel of land was entered into Gan"ary *, s,eri))s0 c%nnot be ,el' li%ble )or bre%c, o) *%rr%nty.
*++K. he b"yer filed an action for breach of warranty Since % s,eri)) is t,e seller in % u'ici%l s%le0 %n' un'er
against hidden defects pertaining to any charge or non t,e l%* ,e c%nnot be ,el' li%ble0 it is conclu'e' t,%t
apparent enc"mbrance "nnown to the b"yer, beca"se t,ere %re no imlie' *%rr%nties in u'ici%l s%le. Suc,
of a right of way only last friday, will the action +ie* is incorrect0 it 'oes not )ollo* t,%t t,e s,eri)) c%nnot
prosper$ be ,el' li%ble. It 'oes not me%n t,%t *,en t,e s,eri))
c%nnot be ,el' li%ble0 it 'oes not )ollo* t,%t no one c%n
It 'een's on *,%t 8in' o) %ction. I) t,e %ction is %n %ction be ,el' li%ble. 7,e u'$ment 'ebtor c%n be ,el' li%ble0
)or rescission0 it *ill not roser bec%use t,e l%* re3uires unless t,e contr%ry *%s 'ecree' in t,e u'$ment.
t,%t t,e %ction )or rescission s,oul' be )ile' *it,in 1 ye%r
)rom t,e '%te o) t,e contr%ct. It is more t,%n 1 ye%r. . In u'ici%l s%le0 norm%lly t,ese %re secon' ,%n' items0
,ence0 t,ere is no *%rr%nty %s to ,i''en 'e)ects= :%lse0
I) t,is is %n %ction )or '%m%$es0 it AF roser 'een'in$ bec%use t,e s,eri)) c%n le+y br%n' ne* roerties0 suc,
on *,en t,e buyer 'isco+ere' t,e encumbr%nce. 7,e l%* *,en t,e seller *%s in t,e business o) sellin$ br%n' ne*
re3uires t,%t %n %ction )or '%m%$es m%y be )ile' *it,in 1 items. In t,is l%tter c%se0 t,e u'$ment 'ebtor m%y be
ye%r )rom 'isco+ery o) t,e encumbr%nce. W,en it is *it,in ,el' li%ble )or bre%c, o) *%rr%nty %$%inst ,i''en 'e)ects.
suc, erio'0 t,en t,e %ction *ill roser.
Un'er Art. 16<!0 t,e l%* ro+i'es %s to t,e rules
S%le o) Anim%ls *it, 'e)ects or 'ise%ses (re',ibitory in+ol+in$ *%rr%nty %$%inst ,i''en 'e)ects t,ey *ere
'e)ects# m%'e e2ressly %lic%ble to u'ici%l s%les.
A re',ibitory 'e)ect c%nnot be 'isco+ere' 'esite %n Ri$,ts %n' obli$%tions o) t,e +en'ee
e2%min%tion by %n e2ert.
#hat are the rights of the endee$
3f a b"yer bo"ght L dogs and one of them t"rned o"t to
hae a redhibitory defect, will an action for redhibition 1. Ri$,t to t,e :ruits
be a remedy not only as to the animal with the defect
b"t also as to the other animals$ By means of a p"blic instr"ment, 'r. agbibili sold his
mango plantation to Abentorero effectie immediately.
As % rule0 no. Re',ibition *oul' only ert%in to 'e)ecti+e he parties agreed that the deliery will be effected 0
%nim%ls0 unless t,e buyer c%n ro+e t,%t ,e *oul' not mos. from eec"tion of the deed of sale. #hen the said
,%+e bou$,t t,e ot,ers ,%' ,e 8no*n o) t,e 'e)ect o) one. period arried Abent"rero demanded the thing, b"t
agbibili dili dallied. 3t was only a month afterwards
7,e bur'en o) roo) in ro+in$ t,%t t,e buyer *oul' not when agbibili finally deliered the land to Abent"rero.
,%+e bou$,t t,e 'o$s ,%' ,e 8no*n o) t,e 'e)ect o) one is 3n the three wees before deliery, agbibili sold and
t,e buyer0 but un'er cert%in circumst%nces t,e l%* *oul' delier the entire prod"ce of the 'ango plantation to
resume t,%t t,e buyer *oul' not ,%+e bou$,t t,e ot,ers 'r. Commerciante. 'r. Commerciante nown nothing
,%'
*,en,e,e8no*n o) t,e
bou$,t t,e %nim%ls
'e)ect o)inone. 7,is
%irs0 %s *oul'
% te%m,%en
or %s % of the contract
Abent"rero nowbetween
sees toagbibili
recoer and
fromAbent"rero.
Commerciante
$rou. either the f"ll al"e of the mangoes or a similar amo"nt
and !"ality of the mangoes sold. &oes abent"rero
3f the animal bo"ght died 5 days after the sale, can the hae the right to the fr"its against Commerciante$
b"yer still demand for the ret"rn of the price$
Un'er t,e l%* %rticul%rly Art. 169<0 t,e buyer s,%ll ,%+e
7,e seller c%n no lon$er be ,el' li%ble )or bre%c, o) t,e ri$,t to t,e )ruits o) t,e t,in$ )rom t,e time o) t,e
*%rr%nty bec%use t,e l%* re3uires t,%t t,e %nim%l s,oul' er)ection o) t,e s%le. In rel%tion to Art. 11950 t,e cre'itor
'ie *it,in 4 '%ys. 7,e 'ise%se must be e2istin$ %t t,e time s,%ll be entitle' to t,e )ruits o) t,e t,in$ )rom t,e time t,e
o) s%le. obli$%tion to 'eli+er it %rises.
7,e seller c%n ,o*e+er0 be obli$e' to return i) t,e 'e%t, In t,eir %$reement t,e obli$%tion to 'eli+er *ill %rise only
%lt,ou$, it ,%ene' more t,%n 4 '%ys %)ter t,e s%le0 *%s %)ter 9 mos. t,ere)ore t,e buyer *ill not be entitle' to t,e
c%use' by % cont%$ious 'ise%se. Un'er t,e l%*0 t,is )ruits 'urin$ t,e 9 mo. erio'. 7,ou$, un'er t,e )%cts0
contr%ct is +oi'0 ,ence t,e seller c%n be comelle' to Abenturero %lre%'y ,%' t,e ri$,t to t,e )ruits0 Abenturero
return t,e rice %i' by t,e buyer. 'oes not ,%+e t,e ri$,t to reco+er %$%inst Commerci%nte
bec%use un'er Art. 11950 ,e *ill not ,%+e %ny re%l ri$,t
5
o+er t,e t,in$ until t,e %ctu%l 'eli+ery o) t,e t,in$ to ,im.
sometimes the employees of the seller will leae the
7,e only reme'y o) Abenturero is only %$%inst N%$bibiliplace immediately. After 1 ho"r the b"yer called the
since0 Commerci%nte ,%' no 8no*le'$e o) suc, s%le seller informing him that he is re-ecting the goods,
bet*een N%$bibili %n' Abenturero. and told the seller to obtain the goods in the place of
the b"yer. B"t before the seller co"ld obtain the goods
#hat if d"ring the 0 month period, agbibili harested from the b"yers place, all the goods were destroyed.
the fr"its and sold it to Commerciante, can Abent"ero Can the b"yer be held liable for the price of these
recoer these fr"its or the al"e thereof$ goods$
Abenturero 'oes not ,%+e t,e ri$,t to t,e )ruits bec%use It 'een's on t,e re%son )or t,e re)us%l to %ccet. I) t,ere
Abenturero s,%ll only ,%+e t,e ri$,t to t,e )ruits o) t,e t,in$ is no ust c%use )or t,e re)us%l0 un'er t,e l%* o*ners,i is
)rom t,e time t,e obli$%tion to 'eli+er it %rises. Un'er t,e 'eeme' to %ss to t,e buyer0 ,ence0 t,e o*ner be%rs t,e
)%cts0 it *%s ,%r+este' be)ore t,e 9 mont, erio' %n' loss. As suc,0 ,e c%n be comelle' to %y t,e rice.
'urin$ suc, time N%$bibili is un'er no obli$%tion to 'eli+er
t,e )ruits. I) t,ere is % $oo' %n' +%li' re%son0 rob%bly t,e $oo's
*ere 'e)ecti+e0 suc, t,%t ,e ,%' to reect t,e $oo's0 t,e
l%* e2ressly ro+i'es t,%t o*ners,i *ill not %ss to ,im
%n' ,e c%nnot be comelle' to %y t,e rice.
. Ri$,t o) e2%min%tion
6"rs"ant to a sale, the seller deliered the rice field *
3f the goods were deliered by the seller to the place of years ago, b"t the payment was only made today. Can
b"siness of the b"yer, and the goods were receied by the seller demand to pay interest on the price$
the b"yer, does it mean that ownership already passed
"pon receipt of the goods$ Or'in%rily0 t,e buyer c%nnot be ,el' li%ble )or t,e interest
on t,e rice. Unless t,ere is %n e2ress stiul%tion to t,e
Not necess%rily. Recei+in$ is 'i))erent )rom %ccetin$. In contr%ry0 interest c%nnot be 'em%n'e'. As %n e2cetion0
or'er t,%t o*ners,i is to %ss0 t,e l%* re3uires t,%t t,e t,e seller c%n +%li'ly 'em%n' interest only i) t,ere *%s
buyer must ,%+e %ccete' t,e $oo's. Recei+in$ is only suc, % stiul%tion to %y interest.
relimin%ry to %ccetin$0 in )%ct recei+in$ is necess%ry )or
,im to e2ercise % ri$,t *,ic, is t,e ri$,t o) e2%min%tion or E+en i) t,ere is no suc, stiul%tion to %y interest0 t,e
insection be)ore ,e %ccets. As to *,en ,e *ill be buyer m%y be ,el' li%ble to %y interest i) t,e t,in$ is )ruit
'eeme' to ,%+e %ccete'0 *,en ,e intim%tes ,is be%rin$. Un'er t,e )%cts0 t,e l%n' sol' is % rice )iel'0
%ccet%nce to t,e seller or *,en ,e 'i' %n %ct inconsistent ,ence0 it is )ruit be%rin$. An' %s suc,0 t,e buyer c%n be
*it, t,e o*ners,i o) t,e seller0 %)ter t,e l%se o) % comelle' to %y interest on t,e rice.
re%son%ble time.
E+en i) t,ere is no stiul%tion %n' e+en i) t,e t,in$ is not
3s it possible that the endee "pon receiing, he )ruit be%rin$0 ,e m%y be ,el' li%ble )or interest in t,e rice
already accepted$ bec%use t,e buyer is %lre%'y in 'el%y %)ter u'ici%l or
e2tr%u'ici%l 'em%n' is m%'e by t,e seller.
Fes0 *,en t,e +en'ee ,%' *%i+e' t,e ri$,t o) e2%min%tion
by e2ress stiul%tion0 or by cert%in %rr%n$ements t,%t m%y It must be noted, under $$"!, there is no need for
be %$ree' uon by t,e %rties *,erein t,ere *ill be no ri$,t demand, when one of the parties had complied with his
o) e2%min%tion relimin%ry to %ccet%nce. obligation, delay by the other begins. %nder this scenario
E.$. In s%le o) co%l )rom t,e loc%tion o) t,e site o) t,e this
and presupposes
the period hadthat thereprescribed,
already is a period within
and inwhich to pay
such case
minin$ com%ny0 it *ill be 'eli+ere' to C%l%c% l%nt in there has to be a &udicial or e'tra&udicial demand.
;%t%n$%s0 *,en t,e co%l *%s recei+e' by N%ocor0 it is
'eeme' %ccete'. 7,ere *ill be no e2%min%tion
relimin%ry to %ccet%nce. >o*e+er0 t,ere *ill be %n 4. %ce'% L%* RA 966 - Ri$,t o) t,e +en'ee
e2%min%tion %)ter recei+in$ not )or t,e urose o)
'eterminin$ *,et,er it *ill be %ccete' or not0 but t,e 7,e Re%lty Inst%llment ;uyer Act - 7,is l%* is inten'e' to
urose *ill only be )or t,e )i2in$ o) t,e rice0 %n' %scert%in rotect or'in%ry buyers.
t,e 3u%lity o) t,e co%l.
7,is l%* c%n only be in+o8e' *,en t,e obect o) t,e s%le is
Are C& sales hae right of eamination$ % re%lty. Cle%rly0 t,is c%nnot be in+o8e' i) t,e obect o) t,e
s%le is % erson%l roerty or % mo+%ble roerty.
None bec%use uon 'eli+ery0 t,e buyer %ys0 %n' t,e
buyer is 'eeme' to ,%+e %ccete'. 3f it is an immoable property, is it coered by the
'aceda Daw$
3f the goods were deliered to the place of b"siness of
the b"yer which goods were receied by the b"yer b"t
6
Not necess%rily. W,%t is co+ere' by t,e %ce'% L%* %re
re%lties. Not e+ery immo+%ble is co+ere' by t,e %ce'% 6riscilla p"rchased a condomini"m "nit in 'aati City
L%*. from the Cityland Corporation for a price of 1+ million
payable E million down and the balance thereon shall
3f it is a realty is it coered by the 'aceda Daw$ be paid in 0+ e!"al monthly installments. hey
eec"ted a deed of conditional sale in which it is
Not necess%rily. It must be % resi'enti%l re%lty0 %n' not stip"lated that sho"ld the endee fail to pay E
commerci%l or in'ustri%l re%lty. s"ccessie monthly installments, the sale shall be
deemed a"tomatically rescinded witho"t the necessity
A sale on installment is a sale on credit$ 3f a sale on of -"dicial action and the act"al payments made by the
installment is a sale on credit, a sale on credit is endee shall be forfeited in faor of the endor by way
coered by the 'aceda Daw$ of rental for the "se and occ"pancy of the "nit and
li!"idated damages. 7or 40 months 6riscilla paid
A s%le on inst%llment is % s%le on cre'it0 but % s%le on cre'it monthly installments religio"sly, b"t on the 4Lth and
nee' not necess%rily me%n it is co+ere' by t,e %ce'% 48th month she failed to pay. n the 4Kth month she
L%*0 bec%use % s%le on cre'it nee' not be on inst%llment tried to pay the installment d"e, b"t the endor ref"sed
b%sis. to receie the payments tendered by her. he following
month the endor sent her a notice that he was
A s%le o) % con'ominium unit *,ere 1J4 o) t,e rice *ill be rescinding the deed of conditional sale p"rs"ant to the
%i' uon si$nin$ o) t,e contr%ct0 but t,e b%l%nce *ill be stip"lation of a"tomatic rescission and demanded that
%i' *it,in % ye%r. Suc, is not co+ere' by t,e %ce'% L%* she acate the premises. %he replied that the contract
bec%use t,%t is not % s%le on inst%llment b%sis. 7,is is % cannot be rescinded witho"t -"dicial demand or
s%le on cre'it on % str%i$,t term b%sis. notarial act p"rs"ant to Art. 15K* of the Ciil Code.
Can the endor rescind the contract$
3n a sale on installment payable in *+ years or E+ years, No0 bec%use t,e obect o) s%le is % resi'enti%l unit %n'
a b"yer was able to religio"sly pay his monthly un'er t,e %ce'% L%*0 t,ere %re t*o stiul%tions t,%t %re
ammorti>ation for 1+ years, what if on the 11th year the 'ecl%re' +oi' by t,is l%*. One o) t,e stiul%tion is t,e
b"yer for one reason or another, he was no longer able stiul%tion ro+i'in$ )or t,e %utom%tic rescission o) t,e
to pay. #hat will be the effect$ contr%ct. Anot,er +oi' stiul%tion un'er t,e %ce'% L%* is
8no*n %s t,e )or)eiture cl%use. In ot,er *or's0 t,e buyer is
3s the maceda law be inoed if the b"yer was able to entitle' to t,e C%s, Surren'er V%lue e+en i) t,ere is %
pay installments for at least two years$ )or)eiture cl%use. Suc, cl%use is % +oi' cl%use un'er t,e
%ce'% L%*.
:%lse. E+en i) t,e buyer *%s not %ble to %y inst%llments
)or % )ull t*o ye%rs0 t,e buyer c%n ,%+e ri$,ts un'er t,e 7,e +en'or c%nnot rescin' bec%use un'er t,is %ce'%
l%*. I) ,e %lre%'y %i' )or t*o ye%rs0 ,e *oul' ,%+e better L%*0 t,e buyer ,%' %lre%'y %i' )or %t le%st t*o ye%rs. 7,e
ri$,ts. buyer is entitle' to % $r%ce erio' *,ic, is 1 mont, )or
e+ery ye%r. Un'er t,e )%cts riscill% ,%' %lre%'y %i' )or 59
#hat are the rights of the b"yer if he only paid for less mont,s0 %n' t,us ,%+in$ comlete' %yin$ 4 ye%rs s,e is
than * years$ entitle' to % 4 mont,s $r%ce erio' e3ui+%lent to "! '%ys.
On t,e 5"t, inst%llment o))ere' to %y0 s,e '%)%ulte' on t,e
>e is $i+en % minimum o) 9! '%y $r%ce erio' *,ic, c%n 5<t, %n' 5t, mont, ,ence0 t,ere is 9! '%ys *it,in *,ic,
be incre%se' %t t,e otion o) t,e seller but no less t,%n 9!. s,e 'i' >%'
erio'. not %y
s,e*,ic, *%s *ell
not o))ere' *it,in
to %y t,e "!
on t,e '%y
5"t, $r%ce
mont,0
In t,is $r%ce erio'0 t,e ri$,ts o) t,e buyer %re/ 1# >e c%n rescission m%y be % reme'y on t,e %rt o) t,e seller.
u'%te ,is %ccounts # %y t,e %rre%rs *it,out bein$ ,el' >ence0 rescission c%nnot be % reme'y on t,e %rt o) t,e
li%ble )or en%lties0 surc,%r$es0 interests0 ,e c%n %y t,e seller.
entire b%l%nce 'urin$ t,is $r%ce erio'. 4# Sell ,is interest
un'er t,is contr%ct 5#Assi$n ,is interest or ri$,ts un'er t,is I) rescission is % reme'y0 t,e seller is obli$e' to return t,e
contr%ct. c%s, surren'er +%lue to t,e buyer. 7,ere c%n be no +%li'
rescission *it,out t,e return o) t,is c%s, surren'er +%lue.
3f the b"yer was able to pay installments for at least
two years, what are the rights of the b"yer$ 3f the price is to be paid in 15 years and b"yer failed to
pay on the 5th month of the first year, how long is the
7,e buyer *ill be entitle' to % ortion o) t,e %mounts %i'0 grace period$ /e has a grace period of 0+ days.
8no*n %s t,e C%s, Surren'er V%lue in % minimum o) 6!G hereafter he was able to pay the 5th, 0th, Lth, and in
)or ye%rs o) %ll %yments m%'e. A)ter %not,er 6 ye%rs or i) fact he was able to pay installments "p to the 5th yea r.
,e %i' )or % tot%l o) < ye%rs0 entitle' to %not,er 6G *,ic, n the 5th month of the 5th year, he defa"lted again.
me%ns 66G0 %n' e+ery ye%r t,ere%)ter0 %''ition%l 6G0 but /ow long is the grace period$
not to e2cee' "!G.
9
None. Un'er t,is l%*0 t,e buyer c%n only %+%il o) t,e $r%ce t,e seller must still ,%+e ossessory lien or ,e must ,%+e
erio' once in e+ery 6 ye%rs o) inst%llments. e2ercise' t,e ri$,t o) sto%$e in tr%nsitu.
#hat are the remedies of the "npaid seller$ 7,is ossessory Lien is t,e ri$,t to *it,,ol' 'eli+ery or t,e
ri$,t to ret%in. No*,ere in t,e Co'e *ill one )in'
1. ossessory Lien ossessory lien. ;ut t,e oul%r n%me is ossessory lien0
. Ri$,t o) Sto%$e in 7r%nsitu to 'istin$uis, t,is lien o) t,e seller )rom %not,er lien o) t,e
4. Ri$,t to Rescin' seller in % scen%rio *,ere t,e $oo's ,%+e %lre%'y been
5. Ri$,t o) Res%le 'eli+ere' to t,e buyer. Un'er t,e rules on re)erence on
6. D%m%$es t,e concurrence %n' re)erence o) cre'its0 %s to % t,in$
9. Seci)ic er)orm%nce *,ic, *%s t,e obect o) % s%le0 *,ic, *%s %lre%'y
<. Recto L%* 'eli+ere' to % buyer *,o t,ere%)ter bec%me insol+ent0 t,e
seller ,%s re)erence %s to t,e un%i' rice o+er t,e t,in$.
3f the b"yer paid K+ of the price can the seller still
inoe these remedies$ 3s insolency re!"ired in order for this right to
withhold can be eercised$
Fes0 %s lon$ %s t,e rice ,%s not be )ully %i'0 t,e seller is
still %n un%i' seller. No. It is not necess%ry or re3uire'0 but it is one o) t,e
$roun's )or t,e seller to *it,,ol' t,e 'eli+ery o) t,e $oo's.
E+en i) t,e buyer %i' % c,ec8 )or t,e )ull %mount0 t,e seller E+en i) t,e buyer is not insol+ent but t,ere is no stiul%tion
m%y still ,%+e t,e ri$,t to in+o8e t,ese reme'ies i) t,e %s to cre'it0 t,e buyer still 'i' not %y0 t,e seller ,%s t,e
c,ec8 *%s 'is,onore'0 not 'ue to t,e )%ult o) t,e seller. ri$,t to ret%in t,e $oo's.
'ay a person who is not a party to the sale be able to E+en i) t,ere *%s stiul%tion %s to cre'it suc, t,%t t,e
inoe any of these remedies$ buyer *%s $i+en % erio'0 but 'esite t,e l%se o) t,e
erio' t,e buyer still 'i' not %y0 t,e seller c%n still ret%in
Fes bec%use t,e l%* ro+i'es t,%t t,e *or' seller *oul' t,e $oo's.
inclu'e cert%in t,ir' ersons0 suc, %s %ssi$nees or ,eirs o)
t,e seller0 or %n %$ent to *,om % bill o) l%'in$ *%s 3f the goods were deliered by the seller to a common
en'orse'. carrier, p"rs"ant to their stip"lation in the contract for
'ay these remedies be inoed if theses remedies "ltimate deliery to the b"yer, does it mean that the
already passed to the b"yer$ seller has lost its lien oer the goods$
Fes0 by e2ress ro+ision o) t,e l%*. As % rule0 'eli+ery to % common c%rrier is 'eli+ery to t,e
buyer. ;ut e+en i) t,e $oo's *ere 'eli+ere' to t,e common
/ow can the seller hae the right to retain or c%rrier0 t,e seller m%y not ,%+e lost ,is lien. 7,ere)ore ,is
possessory lien if ownership already passed$ reme'y is ossessory lien %n' not sto%$e in tr%nsitu.
7,is *oul' ,%en i) ,e reser+e' o*ners,i o+er t,e t,in$.
ossession by t,e seller m%y be ret%ine' bec%use o) W,%t is ro+i'e' un'er t,e l%* *ill inclu'e reser+%tion o)
constructi+e 'eli+ery. Wit, constructi+e 'eli+ery0 o*ners,i o*ners,i. 7,ere is somet,in$ *ron$ *it, t,e +ie* t,%t
m%y %lre%'y be *it, t,e buyer0 but ossession m%y still ossessory lien m%y be in+o8e' *,en t,e seller reser+e'
be *it, t,e seller0 or t,e seller *%s merely constitute' %s % o*ners,i0 bec%use or
reser+e' o*ners,i it 'oes
not innot m%tterto*,et,er
rel%tion t,e seller
ossessory lien.
'eosit%ry. O*ners,i %lre%'y %sse' but t,e seller still
,%s t,e ri$,t to *it,,ol' t,e 'eli+ery o) t,e $oo's. E+en i) o*ners,i ,%' %lre%'y %sse' ,e m%y still ,%+e t,e
ri$,t to ret%in t,e $oo's.
Are these remedies alternatie or can be inoe all at
the same time$ I) t,ere is % reser+%tion o) ossession0 t,ere *ill be no
roblem since t,e seller *oul' ,%+e t,e ri$,t to obt%in t,e
As to t*o reme'ies0 t,ey c%nnot e2ist %t t,e s%me time0 $oo's )rom t,e common c%rrier0 ,e 'i' not lose ,is
%n' t,ese %re ossessory lien %n' sto%$e in tr%nsitu ossessory.
bec%use % re3uirement )or t,e ri$,t o) sto%$e in tr%nsitu
to %rise is t,%t t,e seller must ,%+e %lre%'y %rte' Sto%$e in 7r%nsitu
ossession0 %n' ossession is % re3uirement in
ossessory lien. ;ut i) t,e seller roerly e2ercise' t,e As to sto%$e in tr%nsitu0 once t,e seller ,%' %lre%'y
ri$,t o) sto%$e in tr%nsitu0t,e imlic%tion is t,%t t,e seller %rte' ossession %n' t,e $oo's %re %lre%'y in tr%nsit %n'
*ill be re+erte' b%c8 to its ossessory lien. t,e %s %not,er re3uisite t,e buyer is %lre%'y insol+ent.
7%8e note t,%t t,e insol+ency o) t,e buyer nee' not ,%en
>o*e+er0 %s to t,e t*o ot,er reme'ies o) ri$,t o) res%le %t t,e time o) t,e er)ection o) t,e contr%ct. E+en i) t,e
%n' ri$,t o) rescission0 t,e l%* e+en e2ressly re3uires t,%t
<
insol+ency occurre' *,ile t,e $oo's *ere %lre%'y in
tr%nsit. t,%t c%n be t,e b%sis o) t,e e2ercise o) t,is ri$,t. It is re3uire' t,%t t,e seller must still ,%+e ossessory lien
)or t,e seller to e2ercise t,e ri$,t o) res%le.
7,ere is no 3uestion %s to t%8in$ %ctu%l ossession o+er
t,e $oo's. ;ut t,e ot,er m%nner o) e2ercisin$ t,e ri$,t is 3s insolency re!"ired$
by $i+in$ notice to t,e common c%rrier %s to t,e e2ercise o)
t,e ri$,t. 7,e roblem ,ere *oul' be in t,e scen%rio *,ere No0 but it m%y be one o) t,e scen%rios *,ere t,e seller *ill
e+en *it, notice $i+en by t,e seller %s to ,is e2ercise o) t,e ,%+e t,e ri$,t to resell. One o) t,e $roun's )or t,e e2ercise
ri$,t. >o*e+er0 t,e common c%rrier re)use' to 'eli+er t,e o) t,e ri$,t is bec%use t,e buyer ,%s been in 'e)%ult )or %n
$oo's b%c8 to t,e seller or to t,e l%ce o) t,e l%ce unre%son%ble len$t, o) time. Anot,er $roun'0 is t,%t t,is
seci)ie' by t,e seller0 it 'oes not necess%rily me%n t,%t ri$,t is e2ressly reser+e' to t,e seller0 %n' %not,er $roun'
t,e common c%rrier *oul' be li%ble bec%use %not,er is t,%t t,e $oo's %re eris,%ble.
re3uirement in or'er )or t,e common c%rrier to be obli$e'
to return t,e $oo's b%c8 to t,e seller un'er % cert%in In rel%tion to t,is reme'y0 t,e l%* *oul' mention t*o
situ%tion is t,%t t,e 'ocument o) title *,ic, co+ers t,e notices comin$ )rom t,e +en'or to t,e +en'ee. 7,e )irst
$oo's must be surren'ere' )irst to t,e common c%rrier. notice is t,e intention o) t,e +en'or to resell. 7,e secon'
7,is is % rotection to common c%rriers bec%use i) $oo's notice is %s to t,e '%te0 t,e time %n' to t,e l%ce o) t,e
%re co+ere' by ne$oti%ble 'ocument o) title % t,ir' erson res%le.
*,o is not t,e seller m%y ,%+e % better ri$,t o+er t,e
$oo's. 7,is is in rel%tion to t,e %lien%tion m%'e by t,e Are the notices necessary for the alidity of the resale$
buyer to % t,ir' erson.
7,ese notices %re not necess%ry )or t,e +%li'ity o) t,e
3n a scenario where the seller has possessory lien or res%le. Its rele+%nce0 %s to t,e )irst notice ert%inin$ to t,e
he -"st eercised his right to stoppage in transit", what intention to resell *ill only be rele+%nt i) t,e $roun' )or t,e
if the b"yer sold the goods to a third person, can that res%le is bec%use t,e buyer ,%' been in 'e)%ult )or %n
third person compel the seller to delier the goods to unre%son%ble len$t, o) time. I) t,ere is suc, notice
the b"yer$ #ill the alienation of the goods to a third eseci%lly i) t,e notice *%s sent by % l%*yer0 it *ill be seen
person, will the seller lose his lien$ *,en t,e notice *%s sent0 *,en it %s recei+e' by t,e
buyer0 t,ere)ore0 it *oul' tell t,%t t,e buyer ,%' been in
As % rule0 t,e seller *ill not lose ,is ossessory lien. As %n 'e)%ult )or %n unre%son%ble len$t, o) time. As to t,e t*o
e2cetion0 t,e seller *ill lose ,is lien *,en t,e seller ot,er $roun's o) e2ress reser+%tion %n' $oo's %re
%ssente' to t,is %lien%tion. Secon'ly0 *,en t,e $oo's %re eris,%ble0 %s to t,e )irst notice *ill )in' not rele+%nce.
co+ere' by % ne$oti%ble 'ocument o) title li8e % ne$oti%ble
bill o) l%'in$ %n' t,e buyer sol' t,is $oo's to % t,ir' erson As to t,e secon' notice o) t,e '%te0 time %n' l%ce o)
in $oo' )%it, %n' )or +%lue0 *,ic, me%ns ,e ,%' no res%le. 7,is ,%s somet,in$ to 'o *,en t,e res%le *%s
8no*le'$e o) t,e 'e)ect on t,e title o) ,is seller. 7,ir'ly0 t,is 'one in $oo' )%it, or not. So *,%t i) t,e s%le is in $oo' )%it,
ne$oti%ble 'ocument o) title must ,%+e been ne$oti%te' to or in b%' )%it,= W,en *oul' it be consi'ere' on $oo' )%it,
t,is t,ir' erson. Wit, t,ese0 t,e seller *oul' lose ,is lien. or in b%' )%it,= 7,e e))ect o) t,is0 ,%s somet,in$ to 'o
7,e t,ir' erson *ill ,%+e % better ri$,t o+er t,e $oo's. A *it, t,e ri$,t to reco+er t,e 'e)iciency %)ter t,e res%le. :or
ne$oti%ble instrument bein$ % be%rer instrument 0 ,e c%n e2%mle0 t,e un%i' %mount or t,e tot%l cont%ct rice o)
e%sily ne$oti%te by 'eli+ery. E+en i) it is %n or'er 1!!80 but t,e net rocee's o) t,e res%le is 9!80 ,ence t,e
instrument0 %n' it is 'eli+er%ble to t,e or'er o) t,e buyer0 'e)iciency o) 5!8. C%n t,e seller reco+er t,is 'e)iciency
,e c%n en'orse suc, 'ocument to %not,er buyer. A$%in0 )rom t,e buyer= Fes0 i) t,e s%le is % $oo's )%it, s%le. Suc,
t,e
%re un%i'
resent.seller *ill lose t,is lien *,en %ll t,ese re3uisites
notice is imort%nt
%t t,e '%te0 time %n'bec%use
l%ce o)i) res%le0
t,e buyer *%s $i+en
,e *oul' ,%+enotice
been
resent or ,e coul' ,%+e %tten'e' t,e res%le0 %n' ,e
3f an action for specific performance was filed instead *oul' ,%+e 8no*n i) in'ee' t,e ,i$,est bi' *%s only 9!8.
of inoing the other remedies or together with the W,ere%s i) t,ere is no notice0 t,ere is % $oo' ossibility
other remedies, in the -"dgment of the co"rt, the t,%t t,e seller m%y ,%+e e+en sol' t,e s%me roerty to
-"dgment was in faor of the seller, and if the -"dgment ,imsel). Un'er t,e l%* ,e coul' not sell t,e roerty to
becomes final and eec"tory ordering the b"yer to pay ,imsel) 'irectly or in'irectly. >ence ,e coul' not conni+e to
the price, may the seller now lose his lien, and % t,ir' erson to buy t,e $oo's )or % less +%lue so ,e c%n
therefore the b"yer can demand for the deliery of the reco+er t,e 'e)iciency )rom t,e buyer. Suc, *oul' be % b%'
goods to him so that he will thereafter pay the price$ )%it, s%le0 %n' t,e seller coul' no lon$er ,%+e t,e ri$,t to
reco+er t,e 'e)iciency. ;ut i) in'ee' t,ere *%s % $oo' )%it,
No. E+en i) t,ere is suc, % u'$ment in )%+or o) t,e seller0 s%le0 %n' t,ere *%s %ctu%l bi''in$ %n' t,ere %re erson
,e *ill not lose ,is lien. ust bec%use t,ere is % u'$ment in *,o bi'0 but t,e ,i$,est bi''er is 9!0 t,e buyer c%n be
)%+or o) t,e seller0 t,ere is no $u%r%ntee %t %ll t,%t t,e comelle' to %y t,e 'e)iciency.
buyer *ill be %ble to %y or t,e buyer *ill in )%ct %y.
#hen the net proceeds is greater than the payable
Ri$,t o) Res%le amo"nt, who is entitled to the ecess amo"nt$
7,e Recto l%* is consi'ere' %s % rotection to buyers
Un'er t,e l%* it is t,e seller. 7,e seller s,%ll not be 'esite t,e )%ct t,%t t,e l%* $i+es t,e seller reme'ies0 %n'
resonsible )or t,e buyer )or *,%te+er ro)it ,e m%y obt%in not to buyers. In t,e sense t,%t t,ese reme'ies %re
out o) t,e res%le. %ltern%ti+e in c,%r%cter0 it is me%nt to rotect buyers
bec%use once t,e seller in+o8e %ny o) t,ese reme'ies0 ,e
3f the b"yer partially paid, b"t the seller resold it at a c%n no lon$er in+o8e t,e ot,er reme'ies.
price higher than the amo"nt payable, can the b"yer
demand for the amo"nt paid$ %ale of a specific car worth 5 million, payable in 1+
e!"al ann"al payments. he b"yer failed to pay the
No. 7,e l%* is cle%r t,%t t,e seller s,%ll not be resonsible third installment. Can the seller inoe any of the three
)or %ny ro)it ,e m%y obt%in out o) t,e res%le. remedies$
3f ownership had already passed to the b"yer, in the No0 bec%use only one inst%llment *%s un%i'. :or t,e t*o
eercise of the right of resale, sho"ld the seller rescind ot,er reme'ies to be %+%il%ble to t,e seller0 t,e buyer must
the first contract, or the title of the first b"yer for him ,%+e )%ile' to %y t*o or more inst%llments. I) t,ere is only
to be able to resell$ one inst%llment le)t un%i'0 t,e only reme'y by t,e seller is
e2%ct )ul)illment.
No nee' )or rescission bec%use t,e e))ect o) t,e res%le
*oul' termin%te t,e o*ners,i o) t,e )irst buyer by &espite demand, the b"yer failed to pay the third
oer%tion o) l%*. Suc, o*ners,i c%n be +este' uon t,e installment, within a month the seller filed an action to
secon' buyer uon t,e 'eli+ery o) t,e $oo's to t,e secon' recoer a s"m of money. 3n this action how m"ch will
buyer. be recoered by the seller$
. 7,e ri$,t is e2ressly reser+e' to t,e seller 3s it possible for the seller to recoer the entire
balance$
Recto L%*
Fes0 i) t,ere is % cl%use in t,e contr%ct o) s%le 8no*n %s %n
I) t,e buyer )%ils to %y or more inst%llments reme'ies %re %cceler%tion cl%use st%tin$ t,%t e+en i) t,e buyer only )%ile'
ro+i'e' to t,e seller. In t,e )irst l%ce0 t,e Recto L%* is to %y only one inst%llment0 t,e entire b%l%nce *ill become
consi'ere' rel%te' to t,e %ce'% L%*0 t,%tHs *,y t,e 'ue %n' 'em%n'%ble.
e2%miner mi$,t re3uire you to 'istin$uis, one )rom t,e
ot,er0 ,ence/ Assumin$ t,e buyer )%ile' to %y t,e t,ir' inst%llment %n'
t,e <t, inst%llment0 m%y t,e seller in+o8e %ny o) t,e t,ree
reme'ies=
' a c e d aD a w e c t oD a w
"
Since t,is is % )orm o) rescission0 t,e e))ect *oul' be rocee's *ill be %lie' to t,e in'ebte'ness *,ic, is
mutu%l restitution. 7,e buyer *ill ,%+e to return t,e c%r to ro,ibite' un'er t,e Recto L%*.
t,e seller0 %n' *it, mutu%l restitution t,e seller *oul'
norm%lly return %ll t,e %mounts %i'0 but un'er t,is l%*0 t,e o'es o) E2tin$uis,ment o) S%le
seller is not re3uire' to return %ll t,e %mounts %i'. 7,e l%*
%llo*s t,e seller to ret%in % re%son%ble %mount *,ic, *ill 1. C%ncell%tion o) S%le o) erson%l roerty %y%ble in
be consi'ere' %s comens%tion )or t,e use o) t,e t,in$. inst%llment (Art. 155#.
'ay the seller retain all the amo"nts paid by the . Return o) $oo's by t,e buyer to t,e seller in S%le or
b"yer$ Return or S%le on 7ri%l (Art. 16!#.
Fes0 i) t,ere is % )or)eiture cl%use. 7,is is one bi$ 'i))erence 4. Seller stoin$ t,e $oo's in tr%nsit (Art. 164#.
in t,e %ce'% L%*. In t,e %ce'% L%*0 )or)eiture cl%use is
+oi'. 5. Un%i' seller resellin$ t,e $oo's (Art. 1644#.
2en if there is a forfeit"re cla"se, is it possible that 6. Un%i' seller rescin'in$ t,e contr%ct o) s%le (Art. 1645#
the seller, may not hae the right to retain all the
amo"nts paid$ 9. Rescission o) s%le *,en t,e t,in$ 'eli+ere' *%s l%c8in$
in %re% or o) in)erior 3u%lity.
Fes0 i) to 'o so *oul' be consi'ere' %s unconscion%ble.
7o 'etermine i) it is unconscion%ble *oul' 'een' on t,e <. Rescission o) s%le *,en t,ere is % bre%c, o) *%rr%nty
circumst%nces o) t,e c%se or o) t,e s%le %n' t,e %mount
in+ol+e %n' t,e %rties. . Rescission o) t,e s%le o) %nim%ls *it, re',ibitory 'e)ect
A bo"ght a tr"c from B payable in installment sec"red 1. Con+ention%l - 7,ere is ri$,t to reurc,%se e2ressly
by a chattel mortgage eec"ted by A on the tr"c. As reser+e' in t,e contr%ct %n' t,is ri$,t m%y only %rise in 1
additional sec"rity As brother C, eec"ted a real estate 8in' o) contr%ct. 7,is is % s%le *it, % ri$,t to reurc,%se
mortgage in faor of B. A defa"lted in the payment of or %cto 'e retro s%le.
seeral installments.
for replein, Conse!"ently
repossessed the tr"c andB filed an actionthe
foreclosed . Le$%l - 7,ose *,ic, m%y be e2ercise' by co-o*ners or
chattel mortgage. Can B proceed the other properties by o*ners o) %'%cent lots.
of A and the real estate mortgage eec"ted by C, to
recoer the deficiency if any after the chattel mortgage Con+ention%l
foreclos"re sale$
I) t,ere *%s no stiul%tion %s to t,e ri$,t o) re'emtion t,en
No. ; c%nnot rocce' %$%inst t,e ot,er roerties bec%use no ri$,t o) re'emtion.
un'er t,e Recto L%*0 since un'er t,e )%cts t,e s%le is 3n the eercise of this right, how m"ch wo"ld hae to
co+ere' bein$ % s%le o) % mo+%ble on inst%llment0 *oul' be offered by the seller a retro in order to redeem the
not %llo* t,e reco+ery o) t,e 'e)iciencies o) )oreclosure. property$ #o"ld the price paid by the b"yer be
Koin$ %)ter t,e ot,er roerties is % )orm o) reco+ery o) s"fficient in order to rep"rchase the same$
'e)iciency.
Not necess%rily. Un'er t,e l%*0 t,e %mount *,ic, ,%s to be
In t,e s%me m%nner0 t,e )oreclosure o) t,e re%l est%te o))ere' by t,e seller % retro (+en'or# in t,e e2ercise o) t,e
mort$%$e is %lso % )orm o) reco+ery o) t,e 'e)iciency0 ri$,t o) re'emtion %re/ 1# rice %i' # t,e e2enses
bec%use t,e re%l est%te roerty *ill be sol' %n' t,e net incurre' by t,e +en'ee (buyer % retro# )or t,e e2ecution o)
4!
t,e contr%ct 4# necess%ry %n' use)ul e2enses incurre' by
t,e buyer (buyer % retro#. %. 7,e erio' is 5 ye%rs. Un'er t,e l%*0 i) t,ere is % ri$,t o)
re'emtion but t,e %rties )%ile' to ro+i'e )or suc, %
:ruits %t t,e time o) s%le erio'0 t,e l%* itsel) s%ys t,%t t,e ri$,t m%y be e2ercise'
only *it,in 5 ye%rs. >o*e+er0 i) t,e %rties stiul%te' %s
3n a mango plantation, there may be fr"its at the time to t,e erio' *it,in *,ic, t,e ri$,t m%y be e2ercise'0 t,e
of redemption.he al"e of the fr"its is 1++. Can the l%* ro+i'es t,%t suc, c%nnot e2cee' 1! ye%rs0 %n' i) it
seller (b"yer a retro) be compelled to pay for the al"e e2cee's 1! ye%rs0 t,e s%me *ill be re'uce'.
of the fr"its$
b. 7o )ile %n %ction )or t,e consoli'%tion o) title.
It *ill 'een' on *,et,er t,ere %re )ruits %t t,e time o) t,e
s%le. I) t,ere *ere )ruits %t t,e time o) t,e s%le0 t,e seller 3n a sale with right to rep"rchase, ownership passes
(seller % retro# *ill only be obli$e' to %y t,e )ruits %t t,e "pon the epiration of the right to rep"rchase$
time o) re'emtion i) %t t,e time o) t,e s%le0 t,e buyer
(buyer % retro# %i' )or t,e rice o) t,e +%lue o) t,e )ruits. No0 o*ners,i %sses to t,e buyer uon 'eli+ery. 7,e
imlic%tion ,o*e+er o) t,e e2ir%tion to t,e ri$,t to
;ut i) %t t,e time o) t,e s%le0 t,ere *ere )ruits but t,e buyer reurc,%se0 is t,%t o*ners,i by t,e buyer becomes
(buyer % retro# 'i' not %y )or t,e +%lue o) t,e )ruits0 t,en %bsolute.
t,e seller s,oul' not li8e*ise be comelle' to %y )or t,e
+%lue o) t,e )ruits %t t,e time o) re'emtion. #hat will be the effect of the epiration of the period to
rep"rchase witho"t the seller eercising s"ch right$ r
No )ruits %t t,e time o) s%le0 but t,ere %re )ruits %t t,e time een if he did eercise, it was not a alid eercise of a
o) re'emtion right$ 3n the aboe scenarios, what is the effect on the
ownership of the b"yer$
3f a C% was entered into in Gan"ary *++1 and there
were no fr"its at the time of the sale. /oweer, at the ;uyers ri$,t o) o*ners,i o+er t,e t,in$ becomes %bsolute.
time of redemption in April 1, *++5 there were fr"its. Durin$ t,e erio' ,e ,%s o*ners,i0 but t,is o*ners,i is
he al"e of which is 1++. /ow m"ch can the seller be subect to % resolutory con'ition *,ic, is t,e +%li' e2ercise
compelled to pay fro these fr"its$ o) t,e ri$,t to reurc,%se. An' uon reurc,%se0 o*ners,i
by t,e buyer (buyer % retro# s,%ll be termin%te'.
Un'er t,e l%* t,e seller (seller % retro# c%n be comelle' to
%y )or t,e +%lue o) t,e )ruits $i+in$ t,e buyer (buyer % pon the lapse of t he period witho"t the seller haing
retro# t,e %rt correson'in$ to t,e time ,e ossesse' t,e eercised his right to rep"rchase the ownership of the
l%n' in t,e l%st ye%r0 counte' )rom t,e %nni+ers%ry o) t,e b"yer becomes absol"te regardless of whether the
'%te o) t,e s%le. s"b-ect of the sale is an immoable or a moable
property$
Un'er t,e )%cts0 t,e %nni+ers%ry '%te is e+ery %nu%ry 1st.
7,e %nni+ers%ry '%te (t,e l%st ye%r# is %nu%ry 10 !!6. Fes0 o*ners,i becomes %bsolute0 %n' it 'oes not m%tter
:rom %nu%ry 10 !!6 to Aril 10 !!60 t,e buyer *%s *,et,er t,e obect o) s%le is %n immo+%ble or % erson%l
%lre%'y in ossession )or 4 mont,s out o) 1 mos. o) t,e roerty.
entire ye%r0 me%nin$ it is 1J5 o) t,e entire ye%r. 7,ere)ore
t,e buyer % retro (seller# is comelle' to %y 1J5 o) t,e o) 3s an action for consolidation of title re!"ired in order
t,e 1!!8 +%lue o) t,e )ruits *,ic, is 60!!!. that the b"yer ac!"ire ownership oer the ob-ect of the
41
Consi'er t,e ossibility t,%t t,e client m%y reco+er. As8
t,e client o) t,e circumst%nces surroun'in$ t,e Are these pres"mptions concl"sie$
e2ecution o) t,%t 'ocument. As8 ,im @W,y 'i' you
e2ecute t,is DOS= I) t,e %ns*er is @8%si o %tty. n%$8% No0 t,is is merely % 'isut%ble resumtion. In )%ct0 t,e
ut%n$ %8o s% 8%ny% 16!8 t%os s%bi ny% inste%' o) SC *oul' sust%in t,e +%li'ity o) % s%le *it, % ri$,t to
e2ecutin$ % mort$%$e %$reement0 DOS *it, % ri$,t to reurc,%se 'esite t,e $ross in%'e3u%cy o) rice
reurc,%se. Any*%y0 )rom t,e DOS *it, % ri$,t to bec%use some,o* it *oul' be %'+%nt%$eous to t,e
reurc,%se0 ,e m%y %e%r to be rotecte'. B%si i) ,e seller % retro. In t,e e2ercise o) t,e ri$,t to reurc,%se0
o*es t,%t erson 1 %n' i) ,e is $i+en in t,e 'ebt % it is more %'+%nt%$eous i) t,e rice is sm%ll bec%use ,e
erio' o) 1 ye%r *it,in *,ic, to %y in t,e DOS *it, % c%n e%sily come u *it, t,%t %mount %n' reurc,%se
ri$,t to reurc,%se0 ,e *oul' %lso ,%+e 1 ye%r *it,in
*,ic, to reurc,%se. Dib% %r%n$ %re,o l%n$= ;ut t,e t,in$.
inste%' o) mort$%$e ,e *%s %s8e' to si$n % DOS. I) t,%t #hat if there was a stip"lation in the C% that the
is t,e c%se0 cle%rly you c%n conclu'e t,%t t,is is not %n seller will sho"lder the capital gains ta$ #o"ld the
,onest to $oo'ness s%le *it, % ri$,t to reurc,%se. Fou pres"mption that this is an e!"itable mortgage will
c%n tre%t this transaction merely as an equitable arise$
mortgage. >ence0 ,e m%y still be %ble to reco+er *,%t
*%s t,e subect m%tter o) t,%t tr%ns%ction. No0 t,e resumtion *ill only %rise i) t,e seller boun'
,imsel) to %y t,e t%2 on t,e t,in$ not t,e c%it%l $%ins
#hy wo"ld the creditor (b"yer) as his debtor t%2. 7,%t *oul' be t,e re%l roerty t%2.
(seller) to sign a &% with a right to rep"rchase
instead of a mortgage to sec"re the f"lfillment of his ote9 resumtions un'er 19! *oul' %rise re$%r'less
obligation$ o) *,et,er t,e s%le is 'enomin%te' %s % s%le *it, % ri$,t
to reurc,%se or % DOS. It 'oesnHt m%tter. E+en i) it is %
7o ensure t,%t t,e roerty *ill be o*ne' by ,im DOS i) t,er e is 'ou bt %s to *,e t,er or not it is %n
%utom%tic%lly uon t,e e2ir%tion o) t,e erio' *it,in e3uit%ble mort$%$e. It ,%s to be resol+e' %s %n
*,ic, to reurc,%se %n' t,e seller % retro )%ile' to e3uit%ble mort$%$e.
e2ercise t,e ri$,t to reurc,%se *,ic, *ill not ,%en in
% mort$%$e. 7,ere is % rincile in mort$%$e 8no*n %s #hat is the remedy of the seller a retro$
%ctum commissorium. Uon t,e 'e)%ult o) t,e 'ebtor
t,e mort$%$ee0 c%nnot +%li'ly %rori%te t,e t,in$ )or Re)orm%tion bec%use t,e contr%ct %s *ritten 'i' not
,imsel). O*ners,i *ill not %utom%tic%lly %ss by mere re)lect t,e re%l intention o) t,e %rties. 7,e re%l intention
'e)%ult o) t,e rinci%l 'ebtor bec%use %ctum is to secure t,e )ul)illment o) t,e obli$%tion o) t,e +en'or
commissorium is +oi' bec%use t,e reme'y o) t,e % retro ('ebtor#.
cre'itor is to ,%+e t,e roerty sol' in % )oreclosure s%le
not to %rori%te t,e t,in$. So to %+oi' t,ose B. Degal edemption
re3uirements s% mort$%$e0 %n$ $%$%*in n$ sellerJ
cre'itor is to ,%+e t,e 'ebtor si$n % DOS *it, % ri$,t to #ho has the right to redeem$
reurc,%se bec%use t,e moment t,e 'ebtor )%ile' to
reurc,%se *it,in t,e erio'0 %bsolute o*ners,i $oes A/ $rous
to t,e cre'itor *,o is in t,%t s%le t,e buyer (cre'itor# %
retro. W%l% n% sy%n$ 8%il%n$%n $%*in. 1. Co-o*ners
I) t,e instrument is % DOS *it, % ri$,t to reurc,%se it . O*ners o) %'%cent lots (obect is lot#
m%y %ctu%lly be consi'ere' %s %n e3uit%ble mort$%$e - consi'er i) rur%l or urb%n l%n'
by ust e2%minin$ t,e terms %n' con'itions o) t,%t
contr%ct. 7,ere %re cert%in inst%nces *,en t,e l%* itsel) Co-o*ners
ro+i'es )or % resumtion t,%t t,is is %n e3uit%ble
mort$%$e un'er 19!. Co<owners of what t hing, moable or immoable$
#hat are those instances where a &% may act"ally It 'oes not m%tter.
be disp"tably pres"med to be as an e!"itable
mortgage$ A, B, C, & co<owners of land. & donated his interest
in the land to :. wo"ld A, B, C, hae the right to
1. 7,e rice is $rossly in%'e3u%te. redeem$
. I) t,e +en'or % retro *oul' continue to be in t,e
ossession o) t,e t,in$ %)ter t,e s%le0 *,ic, is No0 in le$%l re'emtion0 the alienation by a co-
unusu%l bec%use i) in'ee' t,is is % s%le t,en
owner must be by onerous title (s%le0 '%cion en
t,e +en'ee s,oul' be in ossession %)ter t,e
%$o0 b%rter#. 7,is %ct ('on%tion# is $r%tuitous %ct.
s%le. >ence0 no
ri$,t o) re'emtion.
4
cannot agree on the portion of the share of B which
#hat if B sold his interest in the land to &. wo"ld A will be redeemed by both of them < what wo"ld be
and C hae the right to redeem$ the final sharing$
No0 bec%use )or A %n' C to ,%+e t,e ri$,t to re''em0 C *ill ,%+e J40 A *ill ,%+e 1J4 bec%use t,ey *ill ,%+e
the alienation should be in favor of a 3rd person. t,e ri$,t to re'eem in roortion to t,eir s,%re in t,%t
roerty. Note/ t,ey m%y stiul%te %s to t,e s,%rin$.
#hat if B sold his interest in the land to :. A, &, C,
wanted to redeem. 'ay they be able to eercise the #hat if in the &% eec"ted between B and :, the
right of redemption$ All of them$ price stated in &% was E'. /ence, A and C can be
compelled to redeem by paying E'$
Fes. All o)
t,em. Not necess%rily0 un'er t,e l%*0 i) t,e rice st%te' in t,is
s%le is unconscion%ble0 t,e re'emtioners c%n only be
3s this the same r"le in ad-acent lots$ comelle' to %y t,e re%son%ble +%lue. An$ osiblen$
+%lue coul' only be 1 ero %n$ n%8%l%$%y s% DOS
No0 in %'%cent lots0 t,ere c%n be so m%ny o*ners 4. Is it possible that X did not pay 3M? Fes. hy
'een'in$ on ,o* it is bi$. The owner with the would they do that? 7,e re%son )or t,%t is to re-emt
smallest land area would have the right to redeem. A %n' C )rom e2ercisin$ t,e ri$,t o) re'emtion. 7o
'iscour%$e t,em )rom re'eemin$ t,e roerty 8%si 8un$
#hat if the owners of ad-acent lots wo"ld hae mur% y%n t,ey c%n e%sily e2ercise t,e ri$,t o)
e!"al area$ re'emtion.
7,e )irst one *,o m%ni)este' ,is 'esire to re'eem. 7,e l%* rotects t,e re'em tioners - i) t,e rice is
unconscion%ble - t,ey m%y %y re%son%ble +%lue.
As to Co - o*ners
#hat if the al"e is E' b"t &% stated 1' b"t :
Dand owned by spo"ses was sold by them to their act"ally paid E' (1' was stated to red"ce ta
three sons in E different deeds of sale. 3n each &% liability). /ow m"ch can A and C be compelled to
the specific area was already described. After the pay$
eec"tion of the &%, these children wo"ld act"ally
harest only their respectie area. hey wanted to (oromal vs )A
hae their respectie share registered in their own
name. hey filed a petition for the cancellation of >el'/ 7,e co-o*ners c%n only be comelle' to %y t,e
the title of their parents for that property to be rice st%te' in t,e 'ee' o) s%le. 7,e tri%l court sust%ine'
diided, they s"bmitted their indiid"al &%. B"t t,e cl%im o) t,e buyer t,%t t,ey be reimburse' t,e
the petition was denied by the register of &eeds %ctu%l %mount %i' bec%use %ccor'in$ to t,e tri%l court
beca"se they failed to s"bmit a s"bdiision plan. t,%t *oul' be immor%l to %y only t,e %mount st%te' in
he & cancelled the C in the name of the t,e contr%ct. SC s%i' it *%s more immor%l *,en t,e
parents iss"ed another C in the name of the E %rties %y only % sm%ll %mount *,ere in )%ct t,e re%l
children in one C. ne of the children sold the %mount %i' is % muc, ,i$,er %mount. ;ec%use t,e
land to a Erd person. Can the * other brothers only urose o) t,is is to 'e)r%u' t,e $o+ernment.
redeem as co<owners$
wners of Ad-acent Dots
No0 bec%use un'er t,e )%cts0 t,ey %re no lon$er co- %8e % 'istinction bet*een % s%le o) %n urb%n l%n' %n'
o*ners bec%use be)ore ,%n' t,eir %rents sol' to t,em s%le o) rur%l l%n'.
t,e roerty in t,ree se%r%te 'ee's o) s%le. Alt,ou$, %
sin$le 7C7 *%s issue' to t,em0 is not conclusi+e %s to S%le o) Urb%n l%n'
t,e ri$,ts o) t,e %rties to % cert%in roerty suc, %s in
t,e c%se %s co-o*ners. At its )%ce t,ey %re co-o*ners Re3uisites/
but in re%lity t,ere ,%s %lre%'y been % %rtition o) t,e
roerty. In )%ct0 % roerty m%y be re$istere' in % 1. 7,e l%n' is so sm%ll %n' urc,%se' only )or
erson *,o is not t,e o*ner bec%use somebo'y )or$e' secul%tion
t,e si$n%ture o) t,e re%l o*ner. 7,us0 t,e re3uirement o)
t,e l%* t,%t t,e co-o*ner *oul' ,%+e t,e ri$,t to I) t,%t is t,e c%se0 t,en t,e %'% cent lot o*ne rs
re'eem is not resent t,ere)ore0 t,ere *oul' be no ri$,t *oul' ,%+e t,e ri$,t not only o) t,e ri$,t o) re'emtion
o) re'emtion. but %lso o) ri$,t o) re-emtion. (Article 19#
A, B, C co<owners. As share M. Bs share M. Cs In rur%l t,ere is no ri$,t o) re-emtion me%nin$
share N. B sold his interest in the land to :. e+en be)ore t,e er)ection o) t,e s%le0 t,e %'%cent lot
/oweer, A and C both wanted to redeem. (As co< o*ners *oul' %lre%'y ,%+e t,e ri$,t to re'eem by *%y
owners they may hae the right to redeem). 3f they
44
o) re-emtion0 4! '%ys )rom notice o) suc, intention to buyer. >o* *oul' ,e 8no* t,e terms %n' con'itions o)
sell. t,e s%le i) ,e is not $i+en % coy o) t,e DOS. So ,e
must ,%+e % coy.
;ut in rur%l l%n's %n' %lien%tion is by onerous title. Double S%les
Anot,er re3uisite/ t,e l%n' *,ic, *%s t,e obect t,e
s%le must not be $re%ter t,%n 1 ,ect%re. 3f the same thing sho"ld hae been sold to different
endees, to whom shall ownership be transferred$ 3s it
Also0 )or t,e o*ners to ,%+e t,e ri$,t o) re'emtion0 possible that ownership hae been transferred to both
t,e buyer )rom *,om t,e roerty *ill be re'eeme' b"yers$
must ,%+e %not,er rur%l l%n'.
It is ossible t,%t bot, buyers m%y ,%+e %c3uire'
Anot,er re3uisite - t,e l%n' sol' %n' t,e l%n' o) o*ners,i but only one o) t,em *oul' ,%+e % better ri$,t.
re'emtioner must not be se%r%te' by broo8s0 ri+ers in 7,e re%l 3uestion in 'ouble s%les is *,o ,%s t,e better
or'er t,%t t,ese lot o*ners *oul ' ,%+e t,e ri$,t to ri$,t.
re'eem.
#hat is the r"le when there is a sale of a moable
!"# $isters % and ! co-owners of land. ! sold her property to two or more persons, who has a better
interest in the land to X a 3 rd person. X sent a notice right$
to the sister of the seller& the other co-owner
7,e )irst erson *,o too8 ossession in $oo' )%it,. I) no
informing her of such sale and giving her copy of one too8 ossession o) t,e mo+%ble0 it is t,e buyer *,o
the '($. 'espite notice& % did nothing. %fter that& X ,%s t,e ol'est title0 %n' in $oo' )%it,.
requested for the annotation of the sale in the title
of that property in the )'. )' sent another notice to #hat is the r"le when there is a sale of an immoable
to two or more persons, who has a better right$
%. % did not do anything. %fter so many months& X
wanted the property to be partitioned. % then give 1. 7,e )irst *,o re$istere' t,e 'ee' o) s%le in $oo' )%it,
notice to X that she is e*ercising the right to . 7,e )irst *,o too8 ossession in $oo' )%it,
redeem. 'oes % have the right to redeem? )ight of 4. 7,e buyer *,o ,%s t,e ol'est title in $oo' )%it,.
redemption must be e*ercise within 3+ days from
what? GF, owner of a parcel of land sold it to 66. B"t the land
A/ 7,e co-o*ner still ,%s t,e ri$,t to re'eem. Un'er was not registered, one year later, GF sold the same
1940 t,e 4!-'%y erio' *oul' st%rt to run only )rom t,e parcel of land to , who s"cceeded to register the
deed and to obtain a C oer the property in his own
time t,e co-o*ner recei+e' )rom t,e +en' or. $ino
name. #ho has the better right oer the parcel of land$
nagbigay ng notice from the facts? Un%0 yun$
+en'ee %n$%l%*% yun$ RD. so ,in'i yun$ +en'or %m' RR m%y ,%+e % better ri$,t0 *,en RR re$istere' t,e s%le in
n%$bi$%y. So 4!-'%y erio ' ,%s not st%rte' to run. $oo' )%it,. Un'er t,e )%cts0 RR *%s %ble to re$ister t,e
>ence0 ,e still ,%s t,e ri$,t to re'eem. 'ee' in ,is o*n n%me0 t,ere *%s no mention t,%t ,e ,%'
no 8no*le'$e o) t,e rior s%le %t t,e time o) re$istr%tion.
Atty. ribe9 Un'er t,e )%cts0 s,e recei+e' notices0 not
only *ritten notices but %lso coies o) t,e DOS. Un'er /ow to determine good faith between f irst and second
t,e rincile o) estoel0 s,e c%nnot cl%im t,%t s,e still b"yer$
,%s 4! '%ys. In )%ct0 in % 'ecision o) SC in+ol+in$ % s%le
o) % co-o*ner s,%re *,ic, s%le *%s )%cilit%te' by t,e As to t,e )irst buyer0 it is t,e )%ct t,%t ,e ,%s no 8no*le'$e
ot,er co-o*ner. ;ut t,e l%tter cl%ime' ,e c%n still o) t,e 'e)ect on t,e title o) t,e seller.
re'eem bec%use ,e 'i' not recei+e notice. SC s%i' sy%
%n$ n%$-)%cilit%te n$ s%le so *,y ,e coul' not be $i+en As to t,e secon' buyer0 it is t,e )%ct t,%t ,e ,%s no
notice0 ,ence ,e ,%' 8no*le'$e o) t,e s%le. 7,is is still 8no*le'$e o) t,e title o) t,e )irst buyer.
consistent in t,e c%se o) Dorom%l. I) you consi'er t,e
ro+ision liter%lly it s%ys @4! '%ys )rom t,e time o) notice G"ne 15, 1KK5, Ges"s sold a parcel of land to Gaime. n
in *ritin$ is $i+en by t,e +en'or to t,e co-o*ner. An$ G"ne E+ 1KK5, he sold the same land to Gose. #ho has
n%8% l%$%y s% b%t %s0 noti ce in *ritin$ . ,ence& the better right if the first sale is registered ahead of
apparently even a letter written by the vendor would the second sale, with nowledge of the latter and the
suffice and hence the 3+ day period would start to second sale was registered ahead of the first sale with
run? SC s%i'/ No0 t,e co-o*ner s,oul' be $i+en % coy nowledge of the latter$
o) t,e DOS %n' it is only )rom t,%t moment t,%t t,e 4!-
'%y erio' *ill st%rt to run. 7,is is % $oo' rulin$ - not As to t,e )irst s%le0 )irst s%le *%s re$istere' %,e%' o) t,e
%ny or'in%ry notice but % coy o) t,e DOS bec%use in secon' e+en *it, 8no*le'$e o) t,e secon' s%le0 t,e
re$istr%tion is +%li'. E+en t,ou$, t,e )irst buyer %c3uire'
re'emtion0 t,e t,e
subro$%te' un'er re'emtioner
s%me terms is
%n'suose'
con'itionsto%s be
t,e 8no*le'$e o) t,e secon' s%le0 ,e m%y re$ister t,e 'ee' o)
45
s%le %)ter t,e secon' s%le. Since ,e *%s t,e )irst buyer re$istere' un'er t,e 7orrens System c%n be co+ere' by t,e
*,o re$istere' t,e s%le0 8no*in$ t,e secon' s%le 'oes not ro+isions o) Art. 1655.
m%8e t,e )irst buyer % buyer in b%' )%it,.
It coul' be notice' t,%t C ,%' re$istere' t,e l%n'0 but t,e
As to t,e secon' s%le0 t,ou$, t,e 'ee' o) s%le *%s s%me is not co+ere' un'er t,e torrens system bec%use0
re$istere' )irst0 but *it, 8no*le'$e o) t,e )irst s%le0 t,en t,ere is %not,er system o) re$istr%tion o) unre$istere'
t,e re$istr%tion *%s in b%' )%it,. l%n's. 7,ere is % 'i))erent boo8 co+ere' by t,is 8in' o)
3f the second b"yer had no nowledge of the prior sale re$istr%tion0 ,ence0 Art 1655 *oul' not %ly.
when he signed the deed of sale, b"t when he is abo"t
to register the deed of sale, he ac!"ired nowledge of 7,ere)ore0 i) ARt. 1655 *oul' not %ly0 ; *oul' ,%+e %
the first sale, wo"ld that mae him a b"yer in bad better ri$,t bec%use t,ere *%s %ctu%l 'eli+ery to ,im.
faith$ 7,er)ore0 un'er t,e $ener%l rule0 uon 'eli+ery0 o*ners,i
%sses to t,e buyer. W,en o*ners,i ,%' %sse' to t,e
W,%t is re3uire' un'er Art. 1655 is re$istr%tion in $oo' buyer *,en t,e roerty *%s sol' in t,e e2ecution s%le0 t,e
)%it,. At t,e time o) er)ection0 si$nin$ or %yment0 ,e m%y buyer *oul' not $et %nyt,in$ )rom t,e e2ecution s%le
still ,%+e no 8no*le'$e o) t,e rior s%le but %t t,e time o) bec%use ,e merely stes into t,e s,oes o) t,e u'$ment
re$istr%tion ,e m%y %lre%'y ,%+e 8no*le'$e0 ,ence0 ,e 'ebtor. Since t,e u'$ment 'ebtor ,%' no o*ners,i o+er
c%nnot be consi'ere' % re$istr%nt in $oo' )%it,. >e m%y not t,e l%n' %t t,e time o) s%le0 t,e ,e 'i' not %c3uire
,%+e % better ri$,t o+er t,e )irst buyer. o*ners,i by +irtue o) t,%t s%le.
;%utist% +s. Sioson Note/ 7o 'etermine t,%t t,e l%n' is un'er t,e torrens
system0 t,e o*ners,i is ro+en by 7C7Hs or OC7Hs0
he owner sold a registered parcel of land to B who ot,er*ise i) roo) o) o*ners,i %re mere t%2 'ecl%r%tions0 it
d i d n o t r e g i s t er , n e i t he r d i d h e t o o p hy s i c al *ill not be consi'ere' %s re$istere' l%n'.
possession. After the sale they eec"ted a lease
agreement in which the b"yer is now the lessor and
that the seller became the lessee. /ence, the seller Loss o) t,e t,in$ *,ic, is t,e subect o) % contr%ct o) S%le
contin"ed to be in possession of the land not as a
concept of an owner b"t of a lessee. After the sale and 3f the thing sold or the ob-ect of the sale is lost or
the contract of lease, A sold this parcel of land to C, destroyed, who will bear the loss, or who may be held
who also did not register the same, and this time C liable for the loss$ Can the b"yer still be compelled to
too physical possession. #ho between B and C had a pay the price despite the loss of the thing which was
better right$ the ob-ect of the sale$
; *oul' ,%+e % better ri$,t bec%use *,en ; e2ecute' % 7,e )irst t,in$ t,%t must be consi'ere' is t,e c%use o) t,e
le%se contr%ct *it, A0 ; is in conteml%tion o) l%* in loss bec%use e+en i) t,e seller or t,e buyer is still t,e
ossession o) t,e roerty0 *,ic, is le$%l ossession0 ,e o*ner0 i) t,e loss *%s 'ue to t,e )%ult o) one o) t,e %rties0
ob+iously is t,ere)ore % ossessor in $oo' )%it,0 t,e )irst ,e *oul' eit,er be t,e one to be%r t,e loss or ,e c%n be
*,o too8 ossession in $oo' )%it,. 7,ou$, C ,%' ,ysic%l ,el' li%ble )or t,e loss.
ossession o+er t,e roerty0 ,e is consi'ere' to be t,e
one secon' in ossession. ; t,ere)ore *%s consi'ere' to :or e2%mle i) t,e seller *%s %t )%ult resultin$ in t,e loss o)
,%+e % better ri$,t. t,e t,in$ %n' ,e *%s still t,e o*ner0 ,e *ill be%r t,e loss.
;ut i) %t t,e time o) t,e loss0 t,e buyer *%s t,e o*ner0 %n'
Note/
,%+e %Le$%l
betterossession is su))icient
ri$,t bet*een to 'etermine %s to *,o
t*o ersons. t,e
t,e seller *%s %t )%ult0
t,in$ bec%use t,e seller
,e *%s *ill be li%ble )or t,e loss o)
%t )%ult.
%ale of a parcel of land to B who too possession of he common scenario in the bar eams is that the
the land. /oweer, this seller a -"dgment debtor to one thing is lost d"e to a fort"ito"s eent, witho"t the fa"lt
of his creditor. Beca"se of a -"dgment in faor of a of the b"yer or the seller, who bears the loss or who
creditor C, the parcel of land had become the s"b-ect can be held liable for the loss$
of an eec"tion sale. hen the b"yer became C who
registered the sale. #ho will hae a better right Another scenario which m"st be considered is when
between B and C and C had no nowledge of the first did the loss happen$ his !"estion will be releant if
sale$ the loss happen after the perfection. Beca"se if the
loss of the thing happened before t he perfection, if the
; *oul' ,%+e % better ri$,t bec%use t,is %rcel o) l%n' *%s loss was d"e to a fort"ito"s eent$ 3t will be the seller
re$istere' un'er t,e 7orrens System. Art.1655 'oes not who shall bear the loss, if the seller is the owner. 3n
%ly to unre$istere' l%n's. Only t,ose l%n's *,ic, %re s"ch case, there will be no perfected contract of sale at
46
all beca"se there was no ob-ect to tal abo"t. After the 'eli+ery o) t,e c%r to . 7,e o*ner ; t,ere)ore ,%' to be%r
perfection of the sale, who bears the loss$ t,e loss.
As % rule0 t,e o*ner be%rs t,e loss. 7,is is not %lic%ble nder what circ"mstance wo"ld a party to a contract
in s%le o) )un$ible $oo's0 bec%use in suc, s%le0 un'er Art. of sale who was not the owner at the time of the loss
15!0 i) t,ese $oo's %re sol' %t t,e rice )i2e' %ccor'in$ to be the one to bear the loss$
*ei$,t0 number or me%sure %n' t,ese $oo's ,%' %lre%'y
been *ei$,e'0 counte' or me%sure'0 t,e ris8 o) loss *ill 1. I) t,ere is % stiul%tion (t%8e note o) 7%bor% C%se#.
%lre%'y be *it, t,e +en'ee e+en be)ore t,ere is tr%ns)er o)
o*ners,i. Suc, is not correct0 bec%use suc, l%* is relie' . W,en o*ners,i is ret%ine' by t,e seller in or'er to
uon t,e ol' ci+il co'e. 7,e Ne* Ci+il Co'e un'er Art. secure %yment o) t,e rice )or t,e $oo's sol' (Art.
15! l%st %r%$r%, is %n %men'e' +ersion o) Art 156 o) 16!5#.
t,e Ol' Ci+il Co'e. In t,e %men'e' +ersion it *%s ro+i'e'
t,%t S,oul' )un$ible t,in$s be sol' )or % rice )i2e' 4. W,en t,e seller is in ossession but t,e buyer is %t )%ult
%ccor'in$ to *ei$,t0 number or me%sure0 t,e ris8 s,%ll not bec%use o) t,e 'el%y in retrie+in$ t,e $oo's.
be imute' to t,e +en'ee until t,ey ,%+e been *ei$,e'0
counte' or me%sure'0 %n' 'eli+ere'0 unless t,e l%tter ,%s 5. W,en t,e seller is in osession0 but o*ners,i ,%'
incurre' in 'el%y. Wit, 'eli+ery0 o*ners,i %sses to t,e %lre%'y %sse' to t,e buyer by constructi+e 'eli+ery0 but
buyer %n' t,ere)ore0 it is t,e +en'ee *,o s,%ll be%r t,e ris8 t,e seller *ill be%r t,e loss 'ue to t,e seller Hs )%ult.
o) loss. 7,ere)ore0 t,ere is seem to be no e2cetion0 %s )%r
%s )un$ible $oo's %re concerne'. A set of A'G was sold to abora on installment
basis. n the day these boos were deliered to the
& sold a second hand car to 2 for E5+, the agreement office of Atty. abora, the entire bloc where the office
between & and 2 was that half of the p"rchase price of the latter is located was b"rned together with the
shall be paid "pon deliery of the car to 2 and the A'G. Atty abora ref"sed to pay the balance despite
balance of 1L5 shall be paid in 5 e!"al monthly demand by lawyers co. Dawyers co therefore filed a
installments of 15 each. he car was deliered to 2 case. wo defenses were raised 1) res perit domino
and & paid the amo"nt of 1L5 to 2. Dess than one r"le beca"se there is a stip"lation in the contract that
month thereafter, the car was stolen from 2s garage the seller shall retain ownership oer the boos "ntil
with no fa"lt on 2s part and was neer recoered. 3s & f"ll payment, and if lawyers co was the owner then it
legally bo"nd to pay the balance of 1L5$ sho"ld bear the loss. 3s the arg"ment correct$
W,et,er or not E *oul' be le$%lly boun' to %y *ill 'een' No. I) t,ere *%s % stiul%tion in t,e contr%ct t,%t o*ners,i
on *,o *ill be%r t,e loss. Since t,e c%r *%s stolen0 *oul' s,%ll be ret%ine' by l%*yers co until )ull %yment *%s
t,e buyer be%r t,e loss= Or *oul' t,e seller be t,e one to m%'e0 t,ere *%s %lso % stiul%tion t,%t t,e ris8 o) loss s,%ll
be%r t,e loss= I) E *oul' ,%+e to be%r t,e loss0 ,e *oul' ert%in to t,e buyer %t t,e time t,e boo8s *ere 'eli+ere'
still be comelle' to %y t,e b%l%nce. *,%te+er t,e c%use o) t,e loss. 7,is is %n e2cetion to t,e
res erit 'omino rule.
:rom t,e )%cts0 t,ere *%s %lre%'y 'eli+ery0 t,ere is not,in$
un'er t,e )%cts t,%t *ill s,o* o*ners,i *%s reser+e'. Ass"ming there was no stip"lation that the ris of loss
7,ere)ore uon 'eli+ery0 o*ners,i %sses to E t,e buyer. shall pertain to the b"yer "pon deliery, may the b"yer
Un'er t,e )%cts0 t,ere *%s no )%ult on t,e %rt o) t,e seller. still be held to answer for the loss$
>ence0 t,e buyer be%rs t,e loss. 7,ere)ore0 E c%n be
49
from the sellers place. oday all these goods were lost
or destroyed d"e to a fort"ito"s eent. #ho will bear
the loss$
4<