SALES 4 Contract of Sale. By the contract of sale one of the contracting parties obligates himself to transfer the ownership of and to deliver a determinate thing and the other to pay therefore a price certain in money or its equivalent. Contract of Si ‘Contract to Sell Tila aver the properly passes to the Buyer upon delivery unless there is a contrary | agreement Non-paymant af the purchaea price ie a nagalive res olutary condition, meaning the sala becomes ineffective upan the happening of ‘such condition ‘Ownership is retained by te saller whether or not there is delivery. Ownership passes to the ‘buyer only upon full paymentof the price The payment in ful ® 2 postive suspanshe condition, meaning, if the purchase price is nat paid, the obligation to deliver and to transfar ‘wnership on the part of the seller does not become affective ‘Afler delivery of the objective, the seller loses. ‘wnerchip aver it. Unlass, the contract is sot apide hha canal recaver the object Whether there is delivery or nol, the seller relains the ownarship of tha objct. If the seller, due fo non-payment of the price i ousting the tuyer from the property, ha (seller) is not rescinding tha cantract af sale but is precisely enforcing it Pactum Reservati Domini ‘Contract to Sell Conditional Sale there is aeady a contrac of sale ‘No contract fo sala only, a preparabry contact Thera ie already delivery bul ownership rolain by seller No dalivery yal. No sale yet ‘Spacific Performanca/Rascission No specific eantract yet perfomance/rascission—no Payment completes the transaction Payment wil not complate transaction Phases or Stages of A contract of Sale 1. Preparation, conception ar generation—ihe period of negotiation and bargaining, ending at the mament of agreement of the partias 2, Perfection or Birth of the Contract 3. Consummation or death—which is the fulfiment ar performance of tha terms agreed upon Characteristics or Featuras of Contract of Sale (NBC-COP) 1. Nominale—Ithas a spacific name given by law. 2. Bilateratboth parties are obliged to fulfi reciprocal obligations to one anather. 3. Consansual—itis perfacted by mare consent 4, Commutatira—The thing sold is equivalentof tha price paid 5. Onarous—The thing sald is conveyed in consideration of the purchase price and the purchase price paid in consideration af the conveyance af the thing, 6. Principal—Its existence does notdapend upan the existence and validity af another contract Elements of Contract of Sale 1.Essantial Elemants—naceseary fortha validty af the sala, a. Meeting of the minds of the seller andthe buyer b. Object whichis certain and determinate c. Prica certain 2, Natural Elements—those which are inherent in tha contract and are deamed to exist in the contact of sale in the absenca of clear contrary agreement, ‘a, Warrant againet eviction b. Warranty against hidden defects 3. Accidental Elements—May or may not exist depending on the stipulations of the partes ike conditions, paymentof interest, placa and time of payment.SALES 2 Object Must be Licit or Lawful. There are two kinds of micit things: ‘2. Mic! par se—when by its nature fis heinous, immoral ar wrongful b. ilicit per accidens—when it is prohibited by law When is a thing determinate? a. When i is parfculaly designated or physically segregated from all others of the same class. b. The thing is capable of being made determinate, at te sme the contract is entered into, wo the necessity af a new or further agreement between the patios. Emptio rai speratae—a sale of an expected thing subject to the condition that the thing will come to existence. If the thing did nat coma into axistenes, the contact is nat effactive and the buyer has na obligation to pay the price. Presumption is in favor of this kind of sale, because it is more in keeping with the commutative character af a sale Emptio spei—a sale of a hape or expectancy. The contracting parties inlended that cantract of sale to exist at all avenis, whether or not the expacted thing will come into existence such that the buyer willhave to pay the purchase price, such that the contract bacomes algatory in nature. Ematio rai speratae vs. Emptio spel ‘Emptio rei speratae Emptio spei ‘Sale ofa hing having a potential existence ‘Sale of amare hope or expectane The uncertainty is with regard the quantity and quality but not with regard the existence af the thing, ‘The uncertainty is with regard tha existance of tha thing The conlractdeals with afulure thing The contact deals with a present thing— the hope or expactancy Tha eale @ subject to the condition hat he thing should exist, so that if itdoes not, thera is ‘no contract for lack of an essential requisite “Tha sala produces effects averthough the fing iisolf does nat come into existence, sinca the ‘subject matter is the hape itself Future Goods that may be subject of a contract of sale 1. Goods to ba manufactured yet 2. Goods to be acquired by the sel rafter the perfection af contract of sale 3. Goods that depends upon a contingancy that may ar may nat happen Purchase of an Undivided Share in Specitic Mass of Fungible Goods. Rules: 1. If the aliquot part purchased from the seller is mora than tha whola undatermined mass after it had baen weighad ar measurad, than tha buyer becomes tha owner of the entira mass. 2. i the aliquet part purchased ie lees than the whole undetermined macs, tha purchaser wil become the co-owner of the whale mass in the proportion in which the number, weight or measure of what had been purchased bears to the number, weight ar measure of the mass or stock.SALES Salevs. Agency ‘SALE AGENCY, The buyer pays for the pice of the| The agent dees nol pay for the price, He gnods/properly purchased merely accounts for the proceeds of the sale. Tha buyer becomes the awner of tha | The agant dogs nol become tha owner of he goods/proparly purchasad goods/property delivered to bim for eale. ‘Buyer cannot retum the gaods/property when the sale is detective ‘The agent returns the goods/pronerty if he was not able to sell the sama The seller warrants tha gaoda/praparly 201d “The agent does nat maka any warranty a8 long as he acts within his authority and in tha name cf the principal Tha seler has ful eadom to enter wnlo any terms or conditians on tha contract of sala The agent must follow the instructions of the principal Contract for a Piace of Work—Tha article sold ‘order of the customer. Article is not sold in thi Aggragatas ve. CTA) {is specially manufactured and upan the special 1@ ordinary course of businass. (Sea. Cancrote ‘Contract for a piece of work Contract of Sale Tha fhing transferred is one not in existence and wic never would have existed but for the order of tha party desiring to acquira it The thing Hanstered is one which would have existed and would have baen the subjact of salato some other person, evan if tha order had not bean given The services dominate the corivad eventhough there is a sale af goods involved ‘The primary objective ofthe contract is a sale of the manufacturad tam;itis a sale of goods ‘eventhough tha item is manufactured by labar furnished by the seller and upon previous orde: of the customer Notwiin tha Statute of Frauds ‘Gavarnabla by the Statute of Frauds Rules if Consideration is partly Money and Pat 1. Determina the intention of the partias. tly Goods 2. Hintantion could not be determined, consider the value of the thing given. 4. If value of the thing more than value of the money, itis BARTER bb. If valvacof the thing less than valua af the If both values are tha same, SALE Monay Exchange. Y Iflocal cumency is exchanged for fareig ¥ joeal eurency is exchanged with fareign currency) PRICE + the sum stipulated as the equivalent of the consideration for tha fixing of the price, which wa: ‘money, itis SALE 19 currency—there is purchasa and sale thar denominations of the local curreney alee is barter (Same rule if Foreign Currency exchanged in the Philippines for another thing sold and also every incident taken into 18 agreed upon by both parties. Rules if there is no specific amount stipulated as purchase price 1. [tig stil certain ii is determinable by making referanca 6 another thing which is itself certain 2. lis stil certain if determination is entrusted to the judgment of a specified person or parsons 3. By reference to certain fact or facts (such as in Af. 1472—when the price is fed is that which the thing cold woukd have on adefinita day or a particular exchange)SALES 4 Effect if 3 Person fixed the price General Ruse: Its binding upon the partes Exceptions: 1. When the 3" person acts in bad faith 2. When the 3" nersan disregards the specific instructions or tha procedure marked cut bi the parties, Effect when the price is not fixed by the 3° person designated 1. If tha 3% parson refuses or cannot fx the prica, tha contract shall became ineffective, unless the parties subsaquently agres upon the price 2. If the 3" person is prevented from fixing the price by the fault of the seller or buyer, the party notin fault may obtain redress against the party in fault. Effect of Gross Inadequacy of Price. No effect Exceptions: (meaning, sale is sat asia) 1. Hoonsantis vitiated, such as VIMEU (Viokonoa, Intimidation, Mistake, Fraud, Undue influence) 2. Hthe parkies intendad a donation ar some other act ar contract 3. ithe price is salaw as to be shocking fo the canscienca Effect of Simulated Price. Sala is void, urlass it could be shown that the partiss intended donation or some ather act of liberality. Price Simulated- No price to support a contract af sale, such that neither party had any intention that the amaunt will ba paid—vai Price is False- there is a real price nal declared—contract is valid, but the under ying deed 's Subject to reformation to indicate the real prica upon which the minds of the parties have met. ot be determined, effect: Sala is inefficacious. (1474) tian of tha thing delivered in an inefficacious contact allowed? Yes, buyer must pay 2 reasonable price ta that part delivered, (Reasonable price is generally the market prica at the time and place fixed by tha contract or by law forthe dalivary of the goods) PERFEGTION OF CONTRACT OF SALE. Macting of the minds upon the thing andpprica. Effect: Parties may reciprocally demand performance RULES ON AUCTION SALES 1. Each lot is subject of a separate contract af sale 2. Auction sala is perfacted when the auctionaer announces its perfaction by ‘he fall of the hammer or in other customary manner. * Pending announcement ¥ Any bidder may rotract his bid ¥ Auctioneer may withdraw the goods, unless auction is w/o resarve 3. A right to bid may be reserved expressly by or on behalf of the seller, unless otherwise provided by lav or sf pulation 4. Notice is essential for the seller or his representative tabe ablato bid. By-bidders or puffers: persons employed by auctioneer who wil bid wo being bound but whose bids wil have a tendency to induce or pravake highar bids from interested Duyers, thus misleading te lalfer because ofthe inflated bid price. is the secracy of the puffing and rot tre authorized bidding by the seller which makes it fraudutort. OPTION CONTRACT. A Privilege existing in one person, for which ha had paid a consideration, Which gives him the right to buy, certain merchandise or property from another person at any ime Within fhe agreed period at a fixed price, In ease of breach of promise to buy or t sell, injured party can only sack damages, (See Ar. 1478)Test to Determine whether a Gontract is A contract of Sale or An Option. Whether arnot the agreement could be specifically enforced If such stipulation could be indenendenty enforced from the contract, then such stipulation is an option. EARNEST MONEY vs. OPTION MONEY Earnest Money ‘Option Money itis part of the purchase price Wis given as a distinct cansideration for an ‘option contract which gives tha buyara specific period within which fo purchase the thing iven only when there i already a parfectad sala Wis given at a time when the sale had nol yet been perfacted. What had bean perfected anly ie the option contract When itis given, the buyer is bound to pay the balance of he agreed purchasa price Even if option money is paid by tha wouldbe- buyer ha is not bound te buy the thing Wthe sale does not maleriaize, the eameat money paid must be retumed, unless a contrary agreement had baan stipulatad W the buyer decides not to buy the thing be cannot recover the option money he paki as consideration for the contract of aption LOSS, DETERIORATION OF THING. BEFORE PERFECTION. No contractto talk about. Would-be-callar bears the loss. AT THE TIME OF PERFECTION OF CONTRAGT OF SALE—1493 “contract without any effect: itnever came to existence. Tthere could be no contract of sale \Without a thing ta be sold, Would-be-eeller boars the loss. AFTER PERFECTION BEFORE DELIVERY. |. 1480 Applicability, corralate ta: (Fungibles sold independently and for a single price covered by the law) Art. 1189. Every person obliged to give something is also obliged fo take care Of itwith the proper diligence af a good father of afamily, unless the law or the ‘stpultion of the partes zequles another standard afesre Lunt the same as been dalvered fohim. make te delivery. complied with at the expense ofthe debtor. Fenultous event unt ne has efecto the delvery debior, and beibre hesnas incurred in delay. the assumption of 18k. AN. 1164. The crediior has @.ight 10 the fruits of the thing from the tine the obligation 10 dalher itarises However, he shall acquire No seal right over Art. 1165. When whar Isto be dallvered Je 9 dete minate thing, the eredttov, in ‘agdiwon 10 the sight granted him by Aniele 1170, may compel the debior to IV the thing is Indeterminate or ganesic, he may ask Met the obligation bo Mineoblgardeleys, ar has promised to deliv the same thingta Awe ar mare persons whe do nol have tre same interest, he shall be respansibl® for any Art. 1282. An obligation which cansits in the delivary of a-determinate thing Shall be extinguished if! should be lost ar destroyed witvout the fault of the When by law or sopulaiion. te obliga Is lable even for fortutous events, tie loss of tvesthing does nat extinguish tre abigaton, and he shall be respansible for damages. The ssine sule applies when te nature of the obligation requiresSALES 6 I 1504 Applicability. Principle of FRes Perit Damino. Vendor bears risk of loss unfl ownership is transferred by delivery. Exeaptions: a) Where dalivery of goods has been made but ownership is ratained by the seller merely to secure performance of buyer's obligation 1b) Where actual delivery is dalayed through fault of the buyer Sale of Goods By Description- whare a seller sells a thing as being of a certain kind verbally deserting tham and tha buyer simply relies on tha seller's descriptions of the things, nat knowing Whether the callers representations ara true or nat. Sale by Sample- Where the seller warrants thatthe bulk af goods being sold correspond with the sample ar samples exhibited nat only in kind but also in quality and character. Sale by Description and Sample- Where the sear has 1 satisfy the requirements in sale by description and sample. Thera are two-fold warranty hera: (a) tha goads purchased matched with the dese“ipfion and {b) the goods also matched in kind, qualdy and character with that of the sample ar samples exhibited to the buyer or his representative RECTO LAW (ART. 1484) Applicability: Sales of Personal Property in installments and Leases of Personal Property w/ Option to Buy Remedios: (1) Exactfulfilment of the obligation, should the veandee kil to pays (2) Cancel ihe sale, shauid the vendse’s failure fo pay cover two or more instalments: (@) Forociosa tho chattel marigage on the thing sold, if ono has boon constituted, should me vandee's failure to pay caver two or mare instalments. in this case, he shall have no further action agains! the purchaser fo recover any unpaid bafanca af the price. Any agreement to the contrary shall be void. Y The stipvation that the instalments or rents shall not be returned to the vendee or essae shall be valid as lang as itis not unconscionable. (1486) ART. 1488, Two Kinds of Incapacity: 1. Absolute Incapacity. Party cannot bind himeslfin any ease, 2. Relative Incapacity. Certain Persons under ceriain circumstances cannot buy ceriai property. "Minors in contract for necessaries must pay reasonable price. Nacessaries—those things which are naaded for sustenance, dwelling, clothing and medical attendance, in kaeping with the financial capacity of tha famiy of the incapacitated person, ART. 1490. Prohibition against Husband and Wife. Exceptions. Rationale: PID a. To avoid Prejudice ta" Persons b. To prevent one spouse fram unduly influencing the other. ¢. Te avaid by indiraction the violation of the prohibition against donations. Who may assailillegality? a. Creditors prior to the sala b. Maire of aithor spouse. ither spouse may not assai illagality because they are parties thereto,SALES ? *" A spouse designatad as agent af tha other spouse may sell the latter's exclusive property. ART. 1491. Persons Relatively incapacitated to Buy. (PAGEJO) 1. Bublic Officars and employaes—Property Of State 2, Agents—Property of Principal unless with consert. 3. Guardian—Property of Ward. 4. Executors and administrators—Estate 5. Jlustioss, Judges, Prosacuting Attamays, Clerks and employees of court—Property/Righte under litigation 6. Others disqualified by law. (Ex. “aliens who are disqualified to purchase private agricultural lands: *an unpafd salfer having a right of lien er having stopped the goads in transit, who is prohibited from buying the goods either directly or indirectly in the resale of the same at a public or private sale wéc he may make. Art. 1533, par.) Rationale: Fiduciary relationship Status of Sale: Voidable (1-3); Void (4-6) ART. 1492. 1490 and 1491 Applicable to Legal Redemption, Compromisas and Renunciations. ART. 1493. Loss of Object Before Sala. Complete and Partial Loss. Partial Loss Rules: 1. Vendee may withdraw from the contract 2. Demand the remaining part, paying its price in propartion to the total sum agreed upan ART. 1494, Loss/Substantial Deterioration of Specific Goods without si 1. Buyer may avoid the sale or 2. May treateale as valid wi respect to the existing goods knowledge. ART. 1495. Obligations of Vendor. (TOWP) 1. Transfer Ownership (not waivabla) 2. Deliver (not waivable) 3, Warrant Object (waivable and may be madified) 4. Braserva Thing from parfection to delivery (Art 1163) 5. Bay for the execution and registration af the sala unloss there is a contrary agreement "Execution sales do not require the dalivary of ayailablo ta salar, since 2 one year period af rademption is ART. 1496. Delivery Transfers Ownership. ART. 1497. Control and Possession necessary in Delivery. Exception: Art. 1478, Stipulation as to full payment of pric Delivery- a moda of acquiring ownership as a consequence of a contract of sala by virtue af \which actually ar constructively tha object is placad in the control and possassion of the vandaa. KINDS OF DELIVERY 1. Actual or Real. (1497) 2. Legal or Canstrustiva, 4, Legal Formaiiies (1498), execution of public instrument. b. Symbolical Tradition (1498 par 2} keys delivered . Tradio Longa Manu- by mare consent Jagraament. If tha movable coli cannot yat be transferred to tha possession of the buyer atthe time of the sale. (1499)SALES 8 d. Traditio Brevi Manu if the buyer had alraady the possession of tha object even before the purchase. (lessee becomes awner) 8. Traditio constitutum possassorium- possession as owner changed. (Owner becomes lessee! 3. Quasi-Traditon- Delivery of Rights, credits or incorporeal properly made by: ‘a. Execution of public instrument bb. Placing tiles of ownership in the hands of a lawyer Allowing the buyar to make use of the rights (1501) ART. 1498, Gonstructive delivery. Requirements: 1. Seller's Contr 2, Seller's Contral transferred to buyer. 4 Intention ta deliver for awnership, ART. 1499, Traditio Longa and Brevi Manu ART. 1500, Traditio Gonstitutum Possessorium. ART. 1801. Delivery af Incorporea! Property. (Constructive and Quasi-Tradition) ART. 1502, Transaction on Sale or Return. Subject to Resolutary Conditon. Differance with “Delivery with option to purchase”. Ownership is transferred in Sala or Retum Transaction on Approval or Trial/Satisfaction. Subjact to Suspansive Candition Rules: 1. Risk of loss to seller until the sale becomes absolute, (Exceptions: Buyer in default; Buyer agreed to bear the loss) 2. Buyer must give goods a trial except whan itis evident that it eannet parform the wark intended, 3. Period of signifying acceptance commences to run only when all the parts essential for operation has been delivered, 4, A provision that a3" person must satisfy approval is valid but he must be in Good faith 5. Generally the Sala and Delivery to an expert buyer is not a sale on approvalitial, Salaor Return vs. Sale on Approval Basis ‘Sale or Return Sale on Approval Condition Subject to -Resowtory [Subject to. suspansive ‘condition condition Promise it depends upon the wil ofthe | Rt depends upon the suitability, buyer quality or character of the goods Transfer af ownership ‘Onnership __immediaiely [Ownership does __nof passes to the buyer on | immediately pass to he buyer. solvery it passes only upon approval or satisfaction of the buyer duly manifested after trial Revesting of ownership m fe | Ownenhip @ revesked the [There & no revesting of owner ‘solar ifthe buyar so decides | ownershin because it is retained by the seller unt the sale becomes absolute Fisk ofless ar deleroraten | Tha ak vaste on the buyer| The risk remains in tha salar before the revesiment of | whie thegoads are on tril ‘ownershipSALES 9 Art. 1503- RESERVATION OF POSSESSION OR OWNERSHIP BY THE SELLER WHEN ‘SPECIFIC GOODS ARE SHIPPED. 1. When acontrary intention appears by the terms of tha contract 2. When the gaads are shipped, and by the bill of lading(BOL) the goods ara dalivarable ta the ‘seller or his ageri, orto the order of the seller or of his agent, Exception: Form of billot lading nat conclusive if for security purposes only. 3. When tha goods are shipped and by the BOL the goads are deliverable to the onder of the buyer or of his agent, but possession of tha BOL it retained by the seller or his agent. 4. Where bill af lading is sent forward to the buyer with bill of exchange attached and the buyer did not pay tha bill of exchange. EFFECT OF BUYER'S OBTAINING POSSESSION OF BILL OF LADING WITHOUT HONORING THE DRAFT. © ithe BOL provides that the goods ara deliverabla to tha buyer orto the order of the buyar ar is indorsed in blank or is indorsed (o tha buyer by the consignee named therein, a purchaser in GF ‘or value of the BOL or goods from tha buyer will obtain the ownership in the goods although the BOE has not been honored Kinds of Delivery to the Carrier 1. G.LF. (Gast, Insurance, Freight)—signify that the price fixed covers not nly the costs of the goods, but the expense of tha freight ard the insurance to ba paid by the salar 2. F.0.B. (Free on Board}—goods ara to be deliverad free of expense to the buyer to the point where they are F.0.8. The point of F 0.8. (aither at paint of shipment ar the point of destination) datarmines when the awnership passas. ‘CIF and FOB merely make rules of presumption 3. €.0:D. (Collect on Delivery}—the carer acts ‘tor the seller in collecting the purchase prica, which the buyer must pay to obtain possession of tha goads. ART. 1505, SALE BY A PERSON NOT THE OWNERIWITHOUT AUTHORITY OF OWNER. General Rule: Buyar acquires no better tile ta the goods than the seller had. Exceptions: SOLVAM 1. Whore the sale is sanctioned by statutory or judicial authority. (See Art. 559) 2, Where the owner of the goods is by his conduct, prechided from denying the seller's authority to sell 3. Whara the law enables tha owner fo dispose of the gaods as if ha were the true owner thareat. ' Factor's Acts (Agency); Racording Laws (PD 1529, RA 4136-Land Transpodation and Trafic Code, Revised Administrative Code); NIL; Warehouse Raceipts Law 4. Where the eellarhas a voidable tila whieh hae not bean avoided attha time af tha sale. 5. Where seller subsequenily acquires ile 6. Where the sale is sok! at merchant's stores, fairs or markets, ART. 1506. SALE BY ONE HAVING A VOIDABLE TITLE-BUYER ACQUIRES GOOD TITLE. 1. Bought befare the tite of seller has bean avoided. 2. in GF for value 3. without natice af the sel s dofectof tite ART. 1507. DOGUMENTS OF TITLE. Document of Title af Goods—includes any bill of lading, dock wasrant, quedan, of warehouse receipt or order for the defivery af goods. ar any other document used i the ardinary course: of business in the safo or transfer of gaods, of authorizing or purporting to authorize the possessor of the document to Fansfer or receive, either by indorsement or by delivery, goods represented bby such documentSALES 40 Nature and function: 1. Recaipts of, or orders upon, a ballee af goods represented, 2, Evidence of transfer offitle and possession af goods and contract belween the parties, Some Forms of Documents of Tit! 1. Bill of Lading- It is a contract or receipt far tha transport af goods and their delivery ta the parzon named therein, to order or to bearer, It usually invalves three parsons: tha carrier, the shipper and the consignee. 2. Dock Warrant. itis an instrument giren by dock owners o an importer of goods warehoused ‘on the dock as 2 recognition of the importers ttle fo the said goods, upon production af the bill of lading. 3. Quedan- a warehouse receipt for commodities or goods such as sugar, tobacco, rice or hemp 4. Warohouse Receipt—A receipt wherein it is stafod that certain goods were racoived by the bailee to be delivered fo the bearer of to the order of any person named in such roceipl or fo a specified person 5. Letter of Credit—it is nothing more than a commitment by the issuer that the party in whose favor itis issued and who can collect upon it wil have his credit against the applicant of the letter duly paidin the amount therein specified. Classes of Documents of Tile: 1. Nagotiable- those by the terms of which the bailee undertakes to deliver the goods to the bearerand thasa by the terms af which the bailee undertakes ‘a dalivar the gands © the order af a specified perean. 2. Nan Nagotiable- those by the terms of which tha gaode covered are deliverable to a specified person. ART. 1508, NEGOTIATION OF NEGOTIABLE DOCUMENT BY DELIVERY. 1. Where by the tems the carrier, warehouseman or other bailee undertakes to deliver the goods to the beai 2. Where by the terms the camer, warshouseman of other bailee undertakes to deliver the goods to a specifiad parson and such parson or subsequent indorese has indoread it in blank or te bearer. ‘¥ Where negotiable document of ttle the goods ara deliverable to bearer ar where a negotiable document of tls hae been indorsed in blank or to bearer, any holder may indaree the same fo himself or to any specified person, and in such case the document shall thereater bbe negotiated anty by the indorsement of such indorsee. ART. 1509, NEGOTIATION OF NEGOTIABLE DOCUMENT BY INDORSEMENT. Indorsement is made by the person to whose the gaods ara deliverable. It may be in blank, to bearer or to a specified person. ART. 1510, NEGOTIABLE DOCUMENTS OF TITLE MARKED “NON-NEGOTIABLE” -No effact on negotiabilty. Tha obligations af carrer, warehouseman, oF bailee not limited. ART. 1511. TRANSFER OF NON-NEGOTIABLE DOCUMENT. “Though non-negotiable may be transferred but transferee acquires rights under 1514. Even documant indarsed transferee has no additional rights. ART. 1512, PERSONS WHO MAY NEGOTIATE A DOCUMENT. 1. By the owner theraat 2. By any parson to whom possession or custody has bean entrusied by the ovmer, # bailee undertakes ta deliver the goods to the order of the possessor af the document OR documents i such form that it may be negotiated by delivery at the time itis entrusted.SALES “a ART. 1513, RIGHT OF PERSON TO WHOM DOCUMENT HAS BEEN NEGOTIATED. 1. The tite of the person negotiating the dacument aver tha goods caverad by tha document. 2. The fie of the person{depositor or owner) to whose order by the farms of the document the goods were to be dalivared. 3. The direct obligation of the bala (Wwarahouseman or carrier) to hokd possession of the goods for him, as if the Bailes had contacted with him, ART. 1514, RIGHTS OF PERSON TO WHOM DOCUMENT HAS BEEN TRANS FERRED. Applicability: (a) Transfaree af Negotiable document of tite nat duly negotiated (bjtransferee of a non-negotiable dacument Rights acquired: 1. Title to tha goods as against the transferor, 2. The right to natty the baiee of the transfer thera, 3. The right, thereafter ta acquire tha abligation of tha ballaa to hald tha goade for him, Rights not absdlute. They are subject to the terms of any agreement with the transferor. “Before Notfication tha ballea is not bound to tha transferea whose right may be defaated by a levy of an attachment or axacution upen the goads by tha creditor of tha fransferar or by & ification fo such bailee of the subs equentsale of the goods. ART. 1818, TRANSFER OF ORDER DOCUMENT WITHOUT INDORSEMENT. Rights of transferee: 1. The right‘o the goods as against the transferor 2. The right to compel the transfarar ta indarsa the indorsement. ‘Asoertain the intentian if contrary appears as to necessity af negotiation. ART. 1516. WARRANTIES ON SALE OF DOCUMENTS BY THE TRANSFEROR. {indorsement delivery) (GRIT) 1. That the document is Genuine 2. That he has legal Right to negotiate or transfer it 3. The he has no knowledge af fact which wauld Impair tha validity or worth of fhe dacumant. 4. That ha has the right to transfer the Title ta the goods and goods are merchantable or fit for a particular purpose: ART. 1517, INDORSER NOT GUARANTOR. THEREFORE NOT LIABLE FOR BAILEE'S FAILURE OR PREVIOUS INDORSERS. ART. 1513. WHEN NEGOTIATION NOT IMPAIRED BY FRAUD, MISTAKE, DURESS, LOSS, THEFT, OR CONVERSION. OR THERE WAS BREACH OF DUTY OF TRANSFEROR. If he transferee paid value, without notice af such factors, therefore in Good Faith ART. 1519. ATTACHMENT OR LEVY UPON GOODS COVERED BY A NEGOTIABLE DOCUMENT NOT ALLOWED, WHILE IN POSSESSION OF BAILEE UNLESS DOCUMENT BE FIRST SURRENDERED OR ITS NEGOTIATION PROHIBITED BY THE COURT. ART. 1520, CREDITOR'S REMEDIES ON PROHIBITION ON ATTAGHMENTILEVY.- Injunction or TRO. ART. 1521, A. PLACE OF DELIVERY OF GOODS 1. Agreomart. 2, Usage of trade. 3 Seller's place of businessSALES 1 4. Seller's rasidenca. 5. Specific Goods: Place where goods are at the ime of cantract known to parties. B, TIME OF DELIVERY OF GooDs 1. Agreement. 2. No tima fixed, within a reasonable tma. G, DELIVERY OF GOODS AT THE POSSESSION OF THIRD PERSONS, - Seller 3" person acknowledges 'o ba the bailea of the buyer. D. Demand or tender of delivery effective if made at a reasonable hour. E. Seller bears the expenses incidental to putting goods in deliverable state. ART. 1522 A. DELIVERY OF GOODS LESS THAN THE QUANTITY GONTRAGTED. 1. Buyer may reject, 2. Buyer may accept by paying: 2. price at the contract ral if he knew that no more were fo be delivered fair value (reasonable market value) of tha goads if he did notknow that the seller is going to be quilly of breaeh af contract, B. DELIVERY OF GOODS MORE THAN QUANTITY CONTRACTED 1. Acoopt and rejact axcass. 2. Accept al- Liable for all of them, ©. DELIVERY OF GOODS MIXED WITH OTHERS 1. Accept in accordance with tha contract and reject the rest, 2. Accept all © H goods are indivisible tha buyer may rejact tha whole of the gaads. Rules may be contrclled by usage ar agreement, ART. 1523. DELIVERY OF GOODS TO THE CARRIER is DELIVERY TO THE BUYER- Exesp tions: 1503 (1) (2) (3) and when Cantrary intention appears. Seller's duty after delivery to carrier. 1. To enter-on bahatf af buyer inta such contract masanable undar the circumstances. ({f seller ‘omits this buyer may decine to treat delivery lo carrer, delivery to him, if goods were lostidamaged) 2. To give notice to buyer regarding necessity to insure gacds wha in transit if under circumstances it i usual toineure. (rek during transit ic bome by him i he falls) ART. 1524. NO DUTY TO DELIVER IF VENDEE HAS NOT PAID OR NO PERIOD FOR PAYMENT FIXED IN THE CONTRACT. ART. 1525, UNPAID SELLER. 1. When the whole of tha price has notbean paid or tandarad. 2. When a BOE of other Nagotiabla Instrument has been racsived as conditional payment but was dishonored or the buyer bacame insalvent “Salar includas agent of tha seller to wham tha BOL has been indorsed; or a consignar er agent who has himself paid ors directly respansible for the priceSALES 3 ART. 1526. REMEDIES OF AN UNPAID SELLER. [LS RRW] 1. A lien on the goods or right to retain them for the price while he is in possession of them; 2. Right of stopping the goods in transitu after ha has parted with fhe possession of them, 3. Right of Resale 4, Right ta Rescind 5. Right of withholding the delivery when ownership has not yet passed to buyer. ART. 1527. WHEN UNPAID SELLER'S POSSESSORY LIEN MAY BE EXERCISED. [SEI] 1. Sales withoutstipulation as to credit. 2. Expiration of term of credit, 3. Insolvency of the buyer. ART. 1526. LIEN ON THE REMAINDER WHEN THERE'S PART DELIVERY, UNLESS INTENT TO WAIVE THE LIEN OR RIGHT OF RETENTION. ART. 1528, WHEN UNPAID SELLER LOSES POSSESSORY LIEN. [DPW] 1. Delivery to agantor bailaaof buyer 2. Bossassion by buyer arhis agent, 3. Waiver of fen. ‘“* When unpaid sallar becomes judgment creditar ha does nat lose his lian ART. 150. REQUISITES FOR THE EXERCISE OF RIGHT OF STOPPAGE IN TRANSITU 1. The sallar must ba unpaid (1525) 2. The buyer must be insalvent 43. The goods must be in transit (1531) 4. The seller must either actually take possession of the goods sald or give notice af his claim to the carrier. (1532.1) 5. Tha seller must sumender the negotiable document of title, if any, issued by the cartier or bale. (1532.2) 6. The seller must bear the expenses of delivery of the gaads after the exercise of the right, ART. 1531. When Goods are in transit 1. after tha delivery to a cartier or other balee and before the buyer or his agent takes delivery af them 2. if the goods are rejected by the buyer, and the cawierar other bailae continues in possession af them Whan Goods No longer in Transit (after delivery to buyer/agent) 1. if the buyer or his agent obtains possession of the goods al a point before tha destination originally fixed. 2. ifthe eariar or bales acknowledges fo hold the goads on behalfof the buyer 3. if the carrier or bailee wrongfully refuses ta deliver the goods ta the buyer, * Goods dalivared ta a ship, freight, train, truck or airplane chartered by the buyer— circumstantial whether they are in possession af tha carrier or as agent of the buyer. * Part of Delivery made to buyer or agent—remaindar may be stopped in transitu, unless there ‘ showing an agreamant with buyer to give up patsassion ofthe whole of goods. ART. 1532. WAYS OF EXERCISING THE RIGHT TO STOP. 1. Taking actual possession of thagaads 2. giving natice of his claim ta the carmar or bailee,SALES 44 --Notice fo be effectual must be given in such time and circumstance thal the principal by the exercise of reasonable diigence may prevent a delivery to the buyer. --Redolivery necessary according to directions of seller. -i goods are covered by nagetiabla document of tite carrier or bailee has no obligation to dativer to seller uriess documentis cancelled ART. 1533, WHEN RESALE IS ALLOWABLE Where seller has either a right of ben or a right of stoppage in transitu and under the following casas: PRD 1. Whore the goods are perishable in nature 2. Whera the right fo cesellis expressly reserved in case the buyar should make a default 3. Where the buyer delays in the payment of tha price for an unreasonable tir ART. 1534, WHEN THE SELLER MAY RESCIND 1. Where the right io rescind is expressly reserved in case the buyer shoukd make a default 2. Where the buyer delays in the paymentof the prica for an unreasanabia time. ART. 1535. EFFECT OF SALE OF GOODS SUBJECT TO LIEN OR STOPPAGE IN TRANSITU. 1, Where Goods not covered by negotiable document of tite, —Seller can give na larger right than hehas. Also with a buyer who soki goods to another. 2. Where Goods coverod by negotiable document of tite—Sellar’s fan cannat pravall against the fights of a purchaser for value in GF to whom the document is indarsed. Article 1536—Right to Wihhold delivery of thing sald by the vendorin case the vende lose the ‘ight ta make use of the tarm, a3 pravided in Art. 1198: (IFIWA) 1. Whan after the obligation has been cantractad vendee becomes insalvent, unless he gives a quaranty or security for the price 2. When he does not fumish ta the vendor the guaranties or securi promised 3. When by his wn acts he has impaired said guaranties or securitiss after their establishment, and when through fertuitous event they disappear, unless he immediaiely gives new ones equally satisfactory 4. When the vendee violates any undertaking, in consideration of which the vendor agreed tothe period 5. When tha vendee altampts to abscond 1s which he has Article 1537—Vendar is bound to deliver tha thing sold andils accessions and acces sarias in the condition in which they were upon tha perfection of the contract. All fruits pertain to vendee from the day on which the contract was perfected Article 1538—Loss, Deterioration or Improvement of Object before its delivery governed by Article 1789. 1. If the thing is lost wa the fault of the sallar, he obligation shall ba extinguished 2. Ifthe thing is lost through the faull of the seller, ha shall be obliged to pay damages; i is understood that the thing is last whan itperishes, ar goes out of cammerca, or disappears in such ‘away that its @xistonoa is unknowner itcannat be recavered. 3. When tha thing deteriorates wo tha fault ofthe seller, tha impairment is to be borne by the buyer 4. If it deteriorates through the fault of the seller, the buyer may chaase biw rescission or fulfimentwith indemnity in either ease 5. If tha thing is improved by is nature, or by time, the improvament shall inure to the benefit af the buyerSALES 6 6. IV its improved at the expense of the seller, he shall hava na other right than that granted to the usufructuary Article 1539—What delivery includes? It includes the placing in the coriol of the vendee all that 's Stated in the contract in conformity with the fallowing rules: a. Sale OF REAL ESTATE by unit of measure or number: The vendor must deliver al that may have been stated in the contract. If it is nat possible to delivar all, the vendee may choose between: LACKINGISMALLER AREA OR NUMBER 1. Propartianal reduction of the price or 2. Rescission of the contract provided the lack in areaiis at feast 1/10 of tha area stated in the contract ® The above rules are applicable also in case there is no lack in area but the quality is not the same as spacified in the contract, Rescission shall taka placa enly if interior value of the thing cold exesads 1/10 of the prica, ® Butif the vendee would not have bought the immovable had ha knawn of its smater area or inferior quality he may rascind the ale. GREATER AREAOR NUMBER (1540) © Verdes may accept the area stated in the centractand reject tha exeass OR % Verdes may accept the whole but must pay for the same at the contract rate © No Right of Reecicsion sinea the vandee is not prajudiced at all «The Above Rulas (Art, 1539 and 1540 shall be applicable to judicial sales) b. Sale of REAL ESTATE by lump sum (1542): There should be no increase or decrease af the price, although there be a greater or lesser area or number than thatstated in the contract. ‘Rule applicabla to Sale of two or mora immovables far a singla pice. © Whatif ne area or number of the immovable is stated together with its boundaries? ‘Then the vendor is bound to deliver all that ic includad wiin the BOUNDARIES, although the same exceeds the area or mumber specified in the contract. The BOUNDARIES prevail because it contains the real and true area of the land, © What if the vandar cannot deliver all that i included win the designated boundaries? Vendea has the option to: ‘a. Reduce the price in proportion to the deficiency in the area OR b. Rascind the contract far breach af stipulations. PRESCRIPTION OF ACTIONS far rescission or exaction af proportionate reduction of the purchase price against tha vendor under Art. 1539 and 1542: Six Manths from the day of delivery. [1543] DOUBLE SALE (1544) General Rule: FIRST IN TIME, PRIORITY IN RIGHT Applicability of General Rule: Griy whan the requisites in Article 1544 are nat present Requisites for DOUBLE SALE to EXIST (VOCS) 1. Twoor more sales transactions must constitute valid sales 2. Twoor more sales transactions must pertain ta the same gbject or subject matter 3. Twe or more buyere at odde over the rightful ownership of tha subject matter must each represent conflicting interests 4. Twoor more buyers must each have brought from the very sama sellerSALES 16 Rules of Preference of Ownership Movable or Personal Property: Quneris the ona wha is in fist possession in good faith Immovable 1. First fo reqister in good faith 2. Nainsciption, first to passass in gaod faith 3. Na inscription and no posses ion in good faith—Pereon wha presents akies| tila in gaod faith What is REGISTRATION? It is any entry made in the books af the Registry, including both registration in its ordinary and strict sense, and cancellation, annotafon, and even the marginal notes. It is the entry which records sclemnly and permanently the right-of ownership and other eal rights. CASES WHERE ARTICLE 1544 CANNOT BE INVOKED 1. When tha earlier transaction is a pacto de retra sale af an unregistered land and the subsequent conveyance is a donation of the land in favor of another by the vandar a ratro. The vendes a ratro has he better right over the donee. The donor had nathing mare to donate because of failura to repurchase tha property. 2. Where one af the deeds of saleis afargary. 3. Where ane sale is absolute and the other is a pacts do ratro whera the period to redeam has Hot yet expired, 4. Where one of the salas is subjectto a suspensive condition which condition was not complied with and the other is an absolute sala, Even if the conditianal sala was mada prior to the absolute sala. 5. Where one transaction is a sale and the other a mortgage 6. Where one claim is based on prescription and the ather is on sale 7. Where the subject land is not registered under PD 1529 &. Ina contract to sell, there being no previous sale af tha property. ‘Article 1844 applicable to Double Donations at provided by Art. 744. CONDITIONS AND WARRANTIES Article 1545, What are the options of @ party to a contract of sala subject lo a condition, whan such condition was nat fulflad by the athar party? a, Refuse ta proceed with the caniract OR b. Waiva performanoe of the candition and proceed with tha contract What the condition agreed upon is in the nature of a promise that it should happen? Then the non-fulfilment of such candifion is cansidared a braach af warranty. Article 1548. WARRANTY. --ltis a callateral undertaking in a sale of either real or parsonal properly, express o that if the property sold does notpossess certain incidents or qualities, the purchaser may either considar tha sala void or claim damages for breach of warranty. Express Warranty—any affirmation of fact or any promise by the seller relating ta the thing it the natural tandoncy of such affinaton or promise is fo induce the buyer to purchase whe samo land if he buyer purchases the thing relying thereon.SALES 1” ‘Affirmation of the value of the thing or statement of the seller's opinion is nat warranty, unless tha seller made such affirmation or statamant as an expert and itwas relied upon by the buyer, Implied Warranty—it is inhorent in a cantract of safe and prasumed to exist although nothing has been mentioned about i Implied Warranties in Contracts of Sale (1547) 1. Implied warranty as to tha right of the seller to sell at the ma when ownership has to pass. (Warranty against eviction) 2. Implied warranty against hidden defects or faults ar charge or encumbrances unknown fo the buyer 3. implied warranty as fo finass and merchantability 4. Warranty against encumbrancas or nan-apperent servitudes (1560) Cases whare implied warranty is not applicable 1, Sale made by a sharif, auctioneer, mortgagee, pledge or other person professing to sell by virtue of authority in factor law (1547) (The judament debtor is responsibia here for eviction) 2. Sale under “as is and where is"—this cames na waranty as to the quality or workable condition af the goods and the buyer takes them as they are. However, such condition does not include those that could not ba discovered by a ptysical examination of the goods said 3. Sale of cacond hand artides does not cary any warranty as to tha condition, adaptation, fitness or suitability for purposes for which they hava been purchased, 4. Sale af property sold at public auction for tax delinquency. There is no warranty on the part of the Stata as to the tile of the owner WARRANTY AGAINST EVICTION—Tha seller guarantess that ha hat the right to sall the thing sold and to transfer ownership fo the buyer who shall not be disturbed in his legal and peaceful possession theract Eviction—A judicial process by vidtue of which the vendee is deprived of the ownership of the whole or part of te thing he purchased by final judgment or by an act imputabie fo the vendor. Elements (OVJ-SW) 1. Vendaaiis deprived in whole arin part of the thing purchased 2. The deprivation is by virtua of a final judgment (1557) 3. The judgment is based on aprior right to the sala or an act imputable to tha vendor 4. The vendor was summoned in the suit for eviction at the instance ofthe vendee (1558) 5. No waiver of warranty by he vendee ¥ Failure af tha vendee to appeal does not relieve vendor fram responsibly [1548] Effect of Preseription/Adversa Possession (1550) 1. Prescription consummated before sale—Vendee can claim warranty against eviction (deprivation is based an right prior to sale) 2. Prascription concummated after s.ale—Vardee cannot daim warranty against eviction ¥ If Propemty is sold for non-payment of taxes due and not made known to the vendee before the sale, vendor is liabla for eviction (1861) ¥ Judgment debtor is respansible for eviction in judicial sales unless otherwise decreed in judgment (1852) Y Any stipulation exempting vendar from responsibilty for eviction is void if he acted in bad faith (1553)SALES 48 Kinds of Waiver in eviction (1554) ~Applicable to total eviction only. 1. Consciento—tha waiver is voluntary made by Se vendee w/o the knawledge and assumpson of the sisks of eviction. (Vendor shall only be lable lo pay the value w/e the thing sold had at the time of the evietion) 2. Intencionada—the waiver is made by the vendee w/ knowssdge of the sisk of eviction and assumption of its consequences. (Vendor here shall not be Jable} Rights of Vendae in case of eviction (1555) + To demand to the vendor the following (VICED) 1. Value which the thing soki had at tha time of eviction, be itgrester or less than the price af the sala 2. Jecome or fruits, against him 3. Casts of the suit which caused the eviction, and these suit brought against the wandor for warranty 4, Expanses of the contract, if the vendse paid them 5. Damages and interests and omamental expenses, if ha sale was mad if vendae was ordered to deliver them to the party who won the suit bad fait * Rescission is not a remedy in case of Total eviction because rescission contemplates that the one damanding itis able ta return whatever he has received under the contract. Sinca the vendee can na fonger rastora tha subject-matter of the sale to the vandar, rescission cannat be carried aut. Rights of Action of Venee in case of Partial Eviction (1556) 1. Enforea the vardor's liability for warranty against eviction OR 2. Damand tha rescission af the contract of sale wr abligation fo return the thing w/a other encumbrances than thasa wi thad when acquired Applicability: A part of the thing sold of such importance was lost because of eviction, that tha vende wauld not hava baught i wa said part. ¥ Same rules apply to a casa where two or more things ara jointy cold for a lump sum or for separala price for each, when the vendea woul! not have baught one wo the other, Warranty against encumbrances or non-apparant servitudes (1560) Requisites: 1. Immovable sald is encumbered with nomapparent burden ar servitude not mentioned in the agreement 2. Nature of non-apparent servitude or burden is such that it must be prasumed that the buyer would nat have acquired it had ha been aware thereat. Remedies of the vendes 1. Rescission ofthe cartract OR 2. Indemnity ¥ Warranty is not applicable if nomapnarent servitude is recorded in the Registry of Property, unless thera is an express warranty ‘hat the thing is frea from all burdens and encumbrances. Prescription of actions for rescission of damages: Wiin 1 yaar from the executan of contract HHwhat was chosen was rescission but was not fied win 1 year, vandea may stil sue for damages win ona year fram tha discovery of burden or sarvitude.SALES 49 WARRANTY AGAINST HIDDEN DEFECTS. Requisites: (HIPANN) 1. Defact must ba hidden. —it cannot ba discovered by an ordinary inspaction or ‘examination. 2. Defect must be important or grave. -a} defect renders the thing sold unfit for the use for ‘we it is intendad; b) diminishes its fitness for the usa intended, to such an extent that the vandee would nat have sequited if he had bean aware thareaf dr would have given a lower rica for it 3. Defect must be prasent at the time of the execution of the sala 4. Action for rescission or reduction of price must be filad wiin the prescriptive period 5. No waiver of the warranty against hidden defects. ‘6. Notice by the vendee ta the vandor within a reasanatia time. REDHIBITORY DEFECTS—an imperfection or dafect of such natura as to engender a ‘certain degree of importance REDHIBITION—claim against tha caller of a produet in which the buyar demands a full refund or a reduction af the purchase price due ta a hidden defect that prevents the product fram performing the task for which it was purchased ‘Art. 1582—impliad Warranty ar Condition as to quality or fines s of goods Anpiicability: Goods—all chattel personal but not things in action ar money of legal ‘tender, this includes grawing fruits or crops. 4. IMPLIED WARRANTY OF FITNESS. General Rule: thera is no implied warranty of fitness Exeaptione: a) Buyer exprassly makes known tha particular purpose or by implication; 1b) Buyer relies upon the seller's skil ar judament 2. IMPLIED WARRANTY OF MERCHANTABILITY. Applies when goods are baught b daseription. * Merchantability—qualily and condilian of goods that a reasonable man would after a full examination acoept the same under the circumstances of the case, in the performance ‘ofhis offer to buy, whether forhis awn use ar for rasale -fitnass for tha general purpose for which they are sold ¥ There is no warranty as to fitness for particular purpose in a contact of sale of a specified article under its patent or other trade name unless thera is a contrary stipulation. (1563) ‘A warranty as ta quality or fiiness for a particular purpose may be atlached toa contract by usage or trade in place af execution. (1564) ‘Marchantability of goads in sale by eample is implied. Defect should not be apparent on reasonable examination of the sample tor the vendor fo be fable (1565) Vendor is liable eventhough rot aware of hidden defects, unless them is a contrary stipulation and heis in goad faith (1566) Cavoat Venditor— ‘Let the Sees Bewara" Vendor is liable eventhough nat aware of hiddan defects Caveat Emptor—'Let the Buyer Beware" Requires the purchaser to ba aware of the Supposed tite of the vendor and one wha buys without checking the vendor's file takes ail the fiske and losses consequent 6 such failure,SALES 20 Remedies of Buyer (1567) 1. Accian Redhibitoria—action seeking withdrawal fram tha contract 2. Accian quanti minares or estimatoria—action for proportionate reduction in the price Nature of Remedies Alternative; both with damages Loss of Thing Sold due to Hidden Detects (1568) Vendorin Bad Faith Vendor in Good Faith ‘Bears the ss Doas not bear tha loss ‘ust retum the price ‘Must reluen the price with inlerest ‘Must refund expenses of the contract, ‘Must refund expensas of the contract Pay damages Not cbliged to pay damages: Loss of Thing Sold w/ Hidden defects thraugh fortuitous avant or vendee's fault (1569) * Vendee may demand price paid less value of the thing al the time of loss plus damages if vendor acted in bad faith ¥ Warrantios against hidden defects, merchantability and filness are applicable to judicial sales but judgment debior is not table for damages, because the lattar is only forced to ell and therafara did nat take part in the conduct of tha sale and datammination af prica which prechides possibilly of bad faith (1570) ¥ Prescription of Actions: 6 Months from dalivary of thing (1571) Joint Sale of two or more animals (1572) '@ Where ona suffers rechititory defect this shal not affect others Exception: If tha buyer would not have purchased the sound animals wa the detective ‘ones. In such case, sale may be rescinded '@ Presumption of Exception: Ifa team, yoke or pairor set is bought even i a separate price has been fixed for each '@ The following rules shall be applicable tojoint cale of two or mara things (1573) * There is no warranty against hidden defects of animals sold at fairs or al public auctions or of livestock sold as condemned (1874) Rationale: Animals are no! bought because of their quailty or capacily for work: and in such circumstance defects are clearly known fo buyer. When is Sale of Animals Void? (1575) 1. When suffering fram contagious diseases 2. Husa or servies for which they are aequirad has been stated in the contract and they ara found tobe unfit Remedy: Declaration of Nulity of Contract Redhibitory defect of Animals—such defect that even in case of professianal inepection itis af such nature thateven expert knamladge is not sufficient to discover it(1576) Prescription of Radhibitary Actions in defective animals—40 days from delivery( 1577) ¥ Vendor is Fable if animal should cie w/in 3 days after ils purchase, if cause of death existed at ima of contract (1578) Animal should be ratumed in the condition in which it was sald and delivered if sale was rascinded, Vendaa is answerable far any injury due ta his negliganca and not arising from redhibitery dateet (1579)SALES a Remedies of Buyer in Sale of Animals w/ Redhibitory defect (1580) 1. Accian Redhibitoria—action seeking withdrawal fram tha contract, 2. Aceian quanti minores or astimatoria—actian for proportionate reduction in the prica ¥ Form of sale of large cattla shall be governed by special laws. (1581) Article 1582 Primary Obligations af the Vendee: ‘a. To accept the delivery of the thing 'b. To pay the purchase price simullaneausly upon the delivery of tha thing unlass a periad or term has been agreed upon. EXCEPTION TO SIMULTANEITY OF ACTS: if parties agread, such as in sale by instalments, Payment shall be made at the stipulated lime and place of delivery. If thera is na stipulation at the time and place of delivery of the thing "The failure of the verdes to pay the price after delivery if ownership had been transferred, does nat cause tha ownership to revert back to the seller untiland unless the bilateral contract af sale is first rescinded. [Chua Mai ve. Kapunan] Article 1583, Rules in case of Gontract of Sale of goods to be delivered in stated instalments. ‘Twa instaneas contemplated a. Soller makes defective deliveries in one or more instalmants—Buyer may reject the defectiva portion and accent the gaad anes b. Buyer refuses wio just cause ta take delivery or pay one or mare instaiments—determine Whether breach is material fo warrant refusal to proceed with tha entire contract of sala. Whan the breach is severable the injured party can seek damages or compensation but not lo rescind the whole contract. Article 1584, Buyer's Right to examine goods. a. Delivery w/a previous examination: The buyer is nat deemed have accapted the same unless he had a reasonable opportunity af examining them for he pumase of finding out whather they conform with tha specifications agraad upon. b, Tender of Delivary by the seller I seller tenders delivery, he should give the buyer if the latier requested, the raascnable opportunity of examining tha goods todatermine whether they conform \With the contract, Whan right of examination not allowed? ‘a. I there is an express stipulation to the contrary b. When the goods ara dativeres “collect on delivery’, the buyer cannot examine the goods unless he pays fist the price. Exception: He naad not pay the price if there is a contary agreamant er tha examination i permitted by usage of trade at tha place of delivery, Article 1585. Signs or Evidence of Acceptance by the buyer of Goods delivered to him. (CPR) a. When he communicates with the seller expressly manifesting his acceptance thereat. b. When he performs an act in relation to the goods inconsistent with the ownership of the collar. Examples: (a) continuaus possession and use of gaads (b) reselling the goods (c} mortgaging the goods cc. When affer the lapse of a reasonable time following the delivery, he retains tha goods wio complaining to the seller or w/o intimating that he has rejected themSALES as Article 1586, Accaptance af Goods. ‘Mere Acceptance does not nacessarly discharge the seller from liability for tha breach of any promise or warranty. However to maka the seller lable the buyer must natify the sallar wiin a reasonable time about the breach of promise or warranty. Purpose of Notico: To inculate the sallar from balated claims of defacts and ta alaw him to make urgent investigation on tha validity af elaims. Article 1587. Effacts of Justifiable refusal to accept delivery by the buyer 1. Buyer hae ne duty to return the goods ta the eallar but must notify the seller of his refusal to accept the goods. (Risk of Lass here is on the seller) 2. Buyer may voluntarily constitute himself as depositary of the goods, but he wil be lable for damagas if he does not fulfl the dutes of a depositary as required by law. (Risk of loss is on the buyer) Article 1588. Effact of Unjustifiabla Refusal to accept goods by the buyer: Tite or ownership passes te him from tha time goods were placed at his disposal Exceptions: a, Ifthere is contrary agreement b. If tha seller reserves ownership as security for payment of the pica [1503 & 1823] Article 1589. When vendee is bound to pay interest (period biw date of delivery and data af payment) after deliver if the parties stipulated b. if the thing sold and delivered produces fruits or income . if the vendee is in defaut, from tha ime demand is made upon him elther juiicialy or extra-judicial. Article 1590. When can the vandee suspend payment of the price (total or remaining)? 1. If he is disturbed in his possession or awnership of the thing brought 2. ithe has a well-grounded faar that his passassion or ownership Would be disturbed by & vindicalory action ar foreclosure of mortgage. Length of suspension: Whila tha danger or disturbance exists. Situations where vendee cannot suspend payment despite presence of disturbance (888-1P) 1. When the vendor has given security for the retum of the price When the parties have stipulated When the vandor has succeeded in eliminating the danger or disturbanos H disturbanes is mere act of trespass H vandee has fully paid the price 2 4a 4. 5, “Oar causes far suspention: non-compliance by vendor of certain conditians; waranty af eviction Article 1591. Immediate rescission in sale of immovables, if the vendor has reasonable ground to fear the loss of the immavable '* Vendor however has the alternative of compelling specific performance if tha ground to fear loss does nat exist. Article 1592. Exception to the general rule on rescission in case of sale of immovables.SALES a3 General Rule on Rescission: Tha court may fic the period of payment when there is just causa, Exception: Court is not alowed to grant a new periad. Once there is a judicial demand by notarial act received by the vendee, the court may not grant him a new term. The reason is that the vandae already enjoyed the advantage of paying beyond the tima originally fixed in the contact, during the time when no damand for rescission siher judicially or extra-judicially has taken placa. "pet, 1592 Nat applicable in: 1. Sales by instalments where parties have laid down the procedure to be folowed in the event the vendee failed to fulfil his obligation 2. Amere promise ta sell whare the tile ramaing with the vendor until full payment of the price. Article 1893, Automatic Rascission of sale of movables. Conditions for applicability: 1. if the vendee upon the expiration of the period fixed for the delivery of the thing purchased, refused to receive it wio justifiable cause 2. if he failed to pay the price unless granted a longer period wrin wc to pay. Reason why judicial or notarial act not required: Personal things do nat generally keep a stable price in the market, any delay in their dispasal may prejudice the vendor. Actions for breach of contract of sale af goods Article 1594, Actions available to vendor when thera i broach of cantract of sala on the part af the vandee: (PDR) 1. Action far payment of the price of tha gaods [1585] 2. Action for damages due ta wrangiul neglect and refusal to accept and pay far the goods [1806] 3. Aetion for rescission i buyer has repudiated the contract or has manifested his inability to perform his abigation [1587] Actions available to tha vandee, in case af braach by the vendor (SDR) 1. Action for specific performance in case of failure of the vendor to deliver the goods [1598] 2. Action for damages for breach of warranty but aocepting tha goods (1593) 3. Action for rescission for breach of warranty whera the vendee may validy refuse acoaptanca af the goods ar even i the goods had already been reveived, ha may return them [1599 par. 4] Articls 1595, Action for collection of price, available in tha following cases :(OPR) 1, When the ownership of the goods has passed to the buyer and he wronglully neglects or refuses to pay for the price according to the terms of the contract 2. Whan tha price is payable imespactiva of dalivery or transfer of tila, on a certain day and the buyer wrongfully neglects or refuses to pay such price Defense of Buyer: He may astablish the fact thal the seller has at anytime before judgment, ‘manifested his inabilty not to comply with tha contract 3. When the goods cannot readily be resold for a reasonable price and the buyer refuses te receive the goods when offered for delivery except when 1596 par. 4is applicable (there is notice of stopping the contract), with notification that the seller is holding them as bailee for the buyer Article 1596, Damages for non-acceptance of goods. Measure of damages. 1. As a nile: estimated loss directly and naturally resulting in the ordinary course of events from the buyer's breach (no available markel)SALES a4 2. When there is availabla market: “differance” between coniract price and markat or current price at the time when the goads ought ta have baen accepted or if not time has been fixed at the time af refusal (if there ara special croumstances establishing proximate damages of a different amount than the “difrence" desenbed then liabilly is based on the proximate damages) Proximate Damagas: refer to damages other than unrealized profits * Repudiation of the contract ar notice of stopping the contract, such as in the case of a sale where goods are to be manufactured. Buyer here shall be lable for the cost of: 1. labor performed 2. expantes for matarials used before receiving the notice of repudiation for stoppaga 3. unrealized profits Article 1597. When seller may rescind contract in case thera is no delivery yet 1. When buyer repudiated the cantact 2. When the buyer hat manifestad his inability to perform tis obligations 3. When the buyer hat committeda breach af the contract * Notice must be given to the buyer to totally rescind the contract. Articls 1598. Remady of buyer in Contract to deliver spacifie goods: Spaciic Performance wo giving the seller option to ratain the goods on paymant of damages. Articla 1599, Remedies of buyer when seller commits breach of warranty. 1, Recoupment—wheraby the buyer accents the goods but he sets up against the seller the reduction or extinction of tha purchase price, 2. Action for damages—wheraby tha buyar may (a) accept the gaads but w/ damages or (b) refuse to accept the goods for the broach of warranty but alse with damages, 3. Rescission—whereby tha buyer seeks th cancellation of the sale and as a consequence thera will be restoration on both sides. “Situations when buyer cannot chaose or elect rescission (KNR) 1. ihe gnows of the breach of warranty when he accepied the gaods w/a protest 2. Ife fails to notify the seller win a reasonable time of the elactian to rescind 2. If he fas ta retum or offerte return the goods to the seller in substantial the sama condition as they were al the fime the ownership was transferred to him, Art. 1600 Causes for Extinguishing Sales 1. Ordinary Causes—causes Which extinguish ordinary contracts euch as: Payment bb. Loss ofthe things . Navatian d. Merger of rights of craditor and deblor fe. Rescission {. Fulfllmentof rsalutory condition g. Proseription 2. Special Causas—refer to conventional sdemption and legal redemption CONVENTIONAL REDEMPTION. Art. 1601. Requisites REV-CR a. The vendor reserves the right ta repurchase tha thing soldSALES 35 b. He shall shoulder the expanses of the contract and other legitimate payments made by the buyer. ¢. Ha shall pay tha value of the necessary and useful expanses made on the thing incurred by the buyer d. Ha shall comply with other stipulations agreed upon, @. Ha shall return tha price of the sale Characteristics of Gonventional Redemption [EAR RPR] a. It begins to exist at the time of the perfection of the contract, (It bacames a mare promise to sell stipulated upon after the sala had bean consummated) b. Itis an accidental stipulation because itis a right created by the parties . itis reciprocal when the right to redeem is: exercised. (both vendar and vendee has obligations with each athar . It gives rise to a real right when propedy registered because it atfacts third persons. «@. Its potestative as its exercisa depands upon the sole willof the vendor. {tis resolutory condition bacause when it is fulfilled, the ownership of the vendea over the thing is extinguished PACTO DE RETRO SALE vs. MORTGAGE PACTO DERETRO SALE MORTGAGE ‘Ownership is consoidaled in the vardee i | Falure of morigagor to pay his obligations on vardor daes not repurchase win tima agreed | ima does not depriva him of his interast in the upon property No obligation on the part of the vendee ta | Marigagee must foreclose if ha wants ta secure foreciosa a pertect tite Vendor has no more right to redeem after | Mortgagor may redeem before foreclosure and ‘expiration of period to redeem even after, win ana year from registration of tha sale in extrajudicial foraciasure. In judicial foreclosure radamption may be mada bafore confirmation of the sala by the court ‘Vendee may abenate property ‘Morigages cannol alienala property Vendee bacomes aulamatically the owner i | Marigagee doet not aulamaticaly become casa of vendor's failure fo redeem, owner, here must ba foreclosure sala first Vendee is onlited 10 raimbursemant for | Morigages is not entitled 10 reimbursement far nacassary and usefulexpanses improverants he made Art. 1602—Presumption of Equitable Mortgage. (IPERTOD) 1. When the price of sala with right ta repurchase is unusually inadequate 2. When tha vendor remains in possession as lassee ar ofherwise 3. When upon or after the expiration of the ght to repurchase another instrument extending the period of redemption or granting a new period is executed. 4. When tha purchaser ratains for himselfa part of the purchase price 5. When tha vendor binds himsalf to pay tha taxes on tha thing sold. 6. Inany gther casa where it may be faify inferred that the real intanfion of tha parties is that the transaction shall secure the payment of a debt ar the perfarmance af any other obligation, 7. When there is doubt as to whether contract is Pacto de rea of an equitable morgage Equitable Mortyage—one which lacks the proper formalities, form of words or other requisites prescribed by law for a mortgage, but haweves shows the intenfon of the contracting partias fo ‘make the property subject of the contract as seeurily for a debt and contains nothing impossible ‘orconteary fo law. Consequences of Declaration of Pacto de Retro Sale as an Equitable Mortgage (PTFR} 1. The repurchase prica paid by tha vandoris considered the principal of the lean.SALES a 2. Tila remains in the vendor ari the file has already been transferred to the vendea, tha same ‘mustbe revested into the vareor by a dead of raconveyance. 3. Any manay fruits or other banafits recsived thereafter by the vendes are considered interaste onthe loan, 4. Ifthe vendor daes not redaem on tima the remedy of the vandes is to fareciose the mortgage. Art. 1603—In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as an equitable mortgage. Rationale: Least tansmission of nights. “Athough in conflict with Art 1378, where it pravides that if fhe contract is anerous, the doubt shall be settled in favor of the greats! reciprocity of interests, A. 1603 is the exception. This is jusstiad by te condemnation of pactum cammissoriuin (which is @ stipulation that creditor automaticaly Bocomes owner of a property upan non-payment by the debisr) Art. 1604—Art, 1602 aso applicable to contract purparting ia be an absoluie sale Art. 1605—Vandor may ask for reform ation of instrument in cases refered to in 1602 & 1604 Art. 1606—Tima to redeam in conventional redemption 1. If thera i¢ a period agreed upon then this shall be observed, but this should nat exesed 1Oyears 2. If there is no period agreed upon, the redemption shall be exercised within 4 years from the date of cantract, 3. If an action was brought by the seller claiming that the contract was an equitable mortgage but later on pravan that it was Pacto de retra Sale, he is given 30 days from tha time final judgment was rendarad ‘o repurchase. Art. 1607—Judicial Order is required for the registration af the consaiidation of ownership of a ‘eal property in the verdes by failure of tha vendar to redeem. Rationale: To accord the vendor tha maximum safequars for the protection of his legal ‘fights under the thre agement af the partes. Art. 1608—The vendor may exercise his right of redemption against every possessor Whose right is darived from the vende, aven if the second contmaet doae not mantion af tha right of redemption, Art. 1609—Vendee is subrogated to the vendor's rights and actions As owner, vendee may: a. transfer his rights toa 3" persan b. mortgage the property enjoy the fruits thareet d. recover the property agains! every possessor @. perfarm other acts of ownership Art. 1610—Craditors of the vendor must exhaust first all the other properties of vendor hefore they could exercise the right of redemption against the vendee. ‘Art. 1611—Applicability, 1. The vendee enterad a Pacto de Retro Sale of a part of an undivided immovable. 2. The vendes later acquired the whale of the property. 3. Tha vendar in the “Pacto da Retro Sala of a parf wishes fo exarciga his right af radamption over the pad, Ifthe abovementioned are present the vendee may campel the vendor in the Pacto de Reto Sale of part to redeam tha whole property. Rationale: Co-ownership is nol favored, because the co-owners are reluctant make improvements on the praperty due to the state of instability in dts ownership.SALES a7 Art. 1612—Joint Pacto de Retro Sala by Co-Owners or Co-Heirs of an Undivided Immovable. & Each Go-Owner/Go-Hair can exercise right of redemption with respect to their share Art. 1613_In the case refered to in Art. 1612, vende may demand that all the vendors or co-heirs come to an agreement upon the repurchase of the whole thing, if they failed to do so vende cannot be compelled to accept partial redemption. Art. 1614—Separate Sales of Shares of Co-owners of an undivided immovable. @ Each vendor may exercise their right of rademption indepandently and tha vendee eannot compal any af them ta redsem tha whole proparty Art. 1615—f the vendea dies and property is left to several heirs, the action for redemption can only ba brought to each of tham independently with respect ta thair share, whether ar not the property is stil undivided or already partitioned. Art. 1616—Obligations of tha Vendora Retro if ha desiras to redeem 1. Retum to tha vendaa the price of the sale b. He shall shoulder the expenses of the contract and other legitimate paymants made by the buyer. cc. Ma shall pay the value of tha necessary and useful expanses made on tha thing incurred by the buyer Art. 1617—Rule incase there is no agreement on the sharing of the fruits of the property. 1. If thare are fruits at the tima of the sala and tha vendee paid them, he shall be reimbursed by the vendor. 2. Where there are na fruits at the time of the sale but there are existing at the time of redemption, tha vendea shail be entitled to the fruits gathered for one yaar reckoned from thalast arniversary of the date of the effectivity ofthe contract of sale. Art. 1618—The vendor who recavers the thing shall receive it tree from all charges or mortgages constituted by the vandee, but shall respect the laaea contaet constituted an the property in good faith and in accordance with the customs of the place, LEGAL REDEMPTION (1619) is the night to ba subrogated upon the sama terms and conditions stipulated in the contract, in the place of one who aoquires a thing by purchase or dation in payment, or by any cther transaction whareby ownership is anemitted by onerous fle Art. 1620—A co-owner of athing may exercise the right of redemption when the shares of all the other co-owners or any of tham are sold to a 3 parson. If the price of absnation is grossly excessive, redemptioner shall pay only areasonable price. If two ormore co-owners dasire 1 exercise ight of redemption they may only do-soin propartion to their share, Art. 1621—Redemption by adjacent owner of rural lands. Requisites: (RATSO) 1. The adjacant lands irwalved must be rural land 2. The rurallland alienated and to ba redeemed must not exceed ona hectara in area 3. The alienation must be mada in favor of a thied person, not in favor af another adjacent owner 4. The two lands involved must nat be separated by brooks, drains, ravines, wads and other sarvitudss for the banaft ofother estates. 5. The vendee of grantee must already be an owner of a rural land. If he does not own any, redemption is not allowedSALES as IFtwo or more adjaining owners desire ta exercise the right of redamption at the same time, the one with a smaller area shall ba preferred. if both have same area, the ane who first requested. Art. 1822—Agplicabilty: Piece of Urban Land which is so small ard so situated that a major portion camot be used for any practical pupase win a reasonable time, having bought meraly for spaculation and ic about to rasakd Speculation—means buying or selling wilh expectation of profiting by a rise and fallin price. Rights racagnized by Article 1622. 1. Right of Pre-emption—the right of an adjacent owner ta purchase the property before is said to a third person or before the projected sale to a 3" parson is consummated 2. Right of Redamption—the right of an adjacent awner to redeem the property after the sale had been perfected and consummated, Preemption ‘Rademption ‘Arges before sale ‘Ariens after sale No Rescission because no sale as yeleisis | There can be rescission ofthe ofginal sale Tha action i diracted against the prospectiva | Actionis directed against tha buyer seller * Preference when two or moe awners of adjoining lands wish to exercise the right of redemption or pre-emption: Ta the awner whose intended use is best justified. Art. 1623—Pariod of Legal Pre-emption or Redemption. ® Must be exercised within 30 days from the notice in writing by the prospective vendor. % The dead of sale executed by the vendor is not registered it not accomparied by an affidavit that ha has given the required writen notice & The right af cadamption of co-owners is superier tothe right of adjoining owners. Instances of Legal Radamption undar the Clvil Cade (CHURC) 1. Sale of a co-owner ofhis shara ta a stranger (1620) 2 Sala of anheirof his heraditary rights to a stranger (1088) 43. Sala of adjacent small urban lands bought maraly for speculation (1622) 4, Sala of adjacent rural land notexcesding one hectare (1621) 5. When a gredit or other incorporeal right in tigation is sold (1634) Instances of Legal Radamption under special laws (THEJA) 4. Redemption in tax sales 2. Redemption of homesteads 3. A rightof radamption in eaees of gxtra jucicial foreclosures 4. An equity of rademption in cases of judicial foreclosures 5. Redemption by an agricultural tanant of land sold by the landowner ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS Assignment of Credit—an agreement whereby credits, rights or actions pertaining to a person (called assigner) are transfered by him to another (called assignes) elher onerously or gratuitously who acquites the power to enforce the same againstthe debtors. Nature of Assignment of Crodits and other incorperest rights: Has all he elaments of a contract of sale: (1) consent (2) Object which is the credit, ght , action assigned and (3) considerationSALES 29 which is the price paid for the assignment, or fberafily of the assignar if the assignment is gratuitous. Distinction between Contract of Sale and Assignment of Credits Basis ‘Contract of Sale ‘Assignment of Gredite ‘Object Property Credit, incomporeal nights or rights of action Manner ofDelvery of Object | Ineed not be through public [It must be through @ puble instrument instrument (1625) ‘Subject obligated Thawhdle word ‘A definite third person ‘Ownership when transfered | Transfer of ownership need | Ownership is transferred upon rot be upon delivery of the | delivery of the documents ‘hing. Tha parties may agree | evidencing the credit or ‘hat ownership be transferred | incomoreal rights ‘only aftar full payment (1478) Consideration Wis always a requisite Wis not always a requisite Acton may be maintained by the assignae based on hie tite even f the is no consideration, Distinction between Dation in Paymentand Assignment of Credits Basis ‘Dation in Payment ‘Assignment of Gradite Nature lis an alienation of property of | The alienation of eredis or a debtor in satisfection of a |rights, need not be in ‘debt in monay ‘satisfaction of debtor's debt Object Daterminale propery Credits, incarporeal nights or rights of action Effect ‘Obligation is extinguished ‘Obligation is not extinguished Consent of debtor ic nat necassary for the assignment, He is therefora released fram tha obligation if he pays the creditor before having knowledge of the assignment (1626) ‘Scopa of Assignment: All accessory rights, such as guaranty, morgage, pledge or preference (1627) ‘Art. 1628 What the Assignor of the Credit Warrants? (ELS) 1. The existance of tha credit at the time of tha assignment 2. The Lagality of the credit unless he sold the thing as “doubtful’, meaning, he is not sure of the validity of his acquisition af tha thing sold which fact he has disclosad to the assignae 3. The golvancy of the debtor, if expressly s pulatad arf the insolvency of the dabtor was prior to the salaand of comman knowledge ‘Scope of Liability in case of breach of warranty 1. In good faith: Assignor shall pay (a) consideration of prica which he receivad from the assignea; (b) expenses of the contact (c) other legitimate expenses occasioned by the assignment 2. In bad faith: Same kabilites as in abava but with damages Art. 1829 Duration of the Liability of the Assignor in Good Faith (in case there is no agreement) 1. One year from the date of the assignmantof the cradit tha period of paymantof the credit has already expiredSALES go 2. One year after maturity ofthe credit if the period of payment has not yat expired Art. 1630 Sala of Inheritance (Haraditary Rights) without spacification of things. Seller shall only be answerable for his character as an heir. He warrants the fact of his heirship in the estate ofthe dacedent. If tums out that heis nat an heir, then ha is liable for he braach af warranty. Sale of Hereditary Rights—presumes the existence of a contract ar deed of sale between the partes Waiver of Hereditary Rights—a mode of extinetion of ownership, where thera is intentional relinguishment of a known right with knowladge of its existence and intention to relinquish it in favor af other persons who are co-heirs in the succession Lump-Sum Purchase of the whole of certain rights, rents or products (1631) @ Vendor warrants the lagitimacy of the whale of the sights, rents or products but not the various parts of which the whola is composed of, @ Exception: If the vendea is avictad from the whale or the part of the greater value (more than half) of the credits in which case warranty stays, Art. 1832—If vendor profited from the fruits or received anything from the inheritance sold he ‘mustrestore it by paying the vendee, unless there is a contrary stipulation Art. 1633_Charges and debts on the estate paid by tha vendor must bs reimbursad by the verdes, unless there is a contrary stipulation Assignment of Credit or right in Litigation. (1634) ¥_debloris given the right fo extinguish the abligation by reimbursing the assignee: (PI) fa. The price paid for the credit or right bb Interest on the said pries fram the tima tha day i was paid . Judicial costs incurrad by the assignee When is credit or right in ligation? Fram tha time the complaint concerning the same is answered, ¥ Praseriptive Paried: 30 days from the date the assignee demande payment from dabtar Excaptions to the Right of Extinguishmant by the debtor (1635) ‘¥ Assignments or sales mada to: (CP) a. A co-heir or co-owner of the right assigned 1b. A.creditor in payment of his credit ¢. The possessor of tenement or piece of land which is subject to the aight in litigation assigned.