Atty. Clark Edward Runes Uytico, R.N.

Primary Materials:
• NEW CIVIL CODE OF THE PHILIPPINES (Republic Act No. 386)
• ARTURO M. TOLENTINO, Commentaries and Jurisprudence on the Civil Code of the Philippines, Vols.
4 and 5 (1992), published by Central Book Supply, Inc.
• ARACELI T. BAVIERA, Sales (2005), published by the U.P. Law Complex
*Unless stated otherwise, all articles cited this syllabus pertain to articles of the Civil Code

PART I
(SALES)

I. INTRODUCTION TO SALES

Definition of Sale (Art. 1458)

Nature of the Obligations in a Contract of Sale

Essential Requisites of a Contract of Sale

1. Consent (Arts. 1319, 1475)
2. Subject matter (Arts. 1349, 1460)
3. Price certain (Art. 1458)
o Dizon v. Court of Appeals (G.R. Nos. 122544 and 124741, 28 January 1999, 302
SCRA 288)
Stages
1. Negotiation
2. Perfection
3. Consummation

Characteristics of a Contract of Sale

1. Nominate and Principal
2. Consensual (Art. 1475)
3. Bilateral and Reciprocal (Arts. 1169, 1191)
4. Onerous
5. Commutative (Arts. 1355, 1470)

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The Sales portion of this syllabus is substantially based on the outline prepared by Prof. Araceli T. Baviera†, one of
the best legal minds produced by – and who taught for 55 years in – the U.P. College of Law.
2 Legislative Lawyer, SENATE OF THE PHILIPPINES;

Juris Doctor, UNIVERSITY OF THE PHILIPPINES - COLLEGE OF LAW (2016);

Bachelor of Science in Nursing, UNIVERSITY OF SANTO TOMAS - COLLEGE OF NURSING (2010);
Bar Review Coach, JURISTS BAR REVIEW CENTER, INC.

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Contract of Sale distinguished from other Contracts
1. Donation (Arts. 725, 1471)
2. Barter (Arts. 1468, 1638 – 1641)
o Fule v. Court of Appeals (G.R. No. 112212, 02 March 1998, 286 SCRA 698)

3. Contract for a Piece of Work (Arts. 1467, 1713 – 1715)

o Celestino v. Collector (G.R. No. L-8506, 31 August 1956, 99 Phil. 841)
o Commissioner v. Engineering Equipment (G.R. No. L-27044, 30 June 1975, 65
SCRA 590)

4. Agency to Buy or Sell (Arts. 1466, 1868)

o Quiroga v. Parsons Hardware Co. (G.R. No. L-11491, 23 August 1918, 38 Phil.
501)
o Gonzalo Puyat & Sons, Inc. v. Arco Amusement Co. (G.R. No. L-47538, 20 June
1941, 72 Phil. 402)
o Albaladejo y Cia v. Philippine Refining Co. (G.R. No. L-20726, 04 March 1916, 45
Phil. 556)

5. Dacion en Pago (Art. 1245)

o Dao Heng Bank v. Sps. Lilia & Reynaldo Laigo (G.R. No. 173856, 20 November
2008, 571 SCRA 434)

6. Lease (Arts. 1484, 1485)

7. Contract to Sell
o Luzon Brokerage v. Maritime Building (G.R. No. L-25885, 31 January 1972, 43
SCRA 93)
o Dignos v. Court of Appeals (G.R. No. L-59266, 29 February 1988, 158 SCRA 375)

II. PARTIES TO A CONTRACT OF SALE

Capacity of Parties (Arts. 1489 – 1492)

Absolute Incapacity (Arts. 1327, 1397, 1399)

Necessaries (Arts. 1489, 290)

Relative Incapacity of Married Persons

1. Contracts with Third Parties (Arts. 73, 96, Family Code of the Philippines)
2. Between Spouses (Arts. 1490, 1492, and Art. 87, Family Code of the Philippines)
o Medina v. Collector (G.R. No. L-15113, 28 January 1961, 1 SCRA 302)

3. Applicability to Common-Law Spouses (Art. 87, Family Code of the Philippines)

o Matabuena v. Cervantes (G.R. No. L-28771, 31 March 1971, 38 Phil. 284)
o Cruz v. Court of Appeals (G.R. No. 120122, 06 November 1997, 281 SCRA 491)

Special Disqualifications (Arts. 1491 – 1492)

1. Guardians, Agents, and Administrators
o Philippine Trust Co. v. Roldan (G.R. No. L-8477, 31 May 1956, 99 Phil. 392)
2. Lawyers
o Rubias v. Batiller (G.R. No. L-35702, 29 May 1973, 51 SCRA 120)

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 3. Judges
o Macariola v. Asuncion (A.M. No. 133-J, 31 May 1982, 114 SCRA 77)

III. SUBJECT MATTER

Requisites of a valid Subject Matter (Arts. 1459 – 1465)

1. Must be licit (Arts. 1347, 1459, 1575, 1409)
o Martinez v. Court of Appeals (G.R. No. L-31271, 29 April 1974, 56 SCRA 647)

2. Must be determinate or determinable (Art. 1460)

o Melliza v. City of Iloilo (G.R. No. L-24732 30 April 1968, 23 SCRA 477)
o Atilano v. Atilano (G.R. No. L-22487, 21 May 1969, 28 SCRA 231)

3. Must be existing, future or contingent (Arts. 1347, 1348, 1462)

Emptio rei speratae (Arts. 1461, 1347)
o Pichel v. Alonzo, (G.R. No. L-36902, 30 January 1982, 111 SCRA 34)
Emptio spei (Art. 1461)
Subject to a resolutory condition (Art. 1465)

4. Quantity of subject matter not essential for perfection (Art. 1349)

Particular Kinds
1. Generic things (Arts. 1246, 1409 (6))
o Yu Tek v. Gonzales (G.R. No. L-9935 01 February 1915, 29 Phil. 384)
2. Future goods (Art. 1461)
3. Sale of undivided interest or share (Arts. 1463 – 1464)
4. Sale of things in litigation (Arts. 1381 (4), 1358 (2))

IV. OBLIGATION OF THE SELLER TO TRANSFER OWNERSHIP

Sale by a person not the owner at the time of delivery (Arts. 1462, 1505, 1459)

Exceptions: When ownership transfers by non-owner

1. Estoppel (Art. 1434)
o Hernaez v. Hernaez, (L-10027, 13 November 1915, 32 Phil. 214)
o Siy Cong Bien v. HSBC (G.R. No. L-34655, 05 March 1932, 56 Phil. 598)
o Jalbuena v. Lizarraga, (G.R. No. L-10599, 24 December 1915, 33 Phil. 77)

2. Recording Laws; Torrens System – Presidential Decree No. 1529 (Property Registration
Decree)
3. Statutory Sale - Order of Courts
4. Sale in Merchant’s Store, Market or Fair
o Sun Brothers & Co. v. Velasco, (Court of Appeals Case No. 17085-R, 13 January
1958, 54-18 OG 5143, 11 August 1958)
o Masiclat v. Centeno (G.R. No. L-8420, 31 May 1956, 99 Phil. 1043)

Sale by a person having a voidable title (Arts. 1506, 559)

o Tagatac v. Jimenez (Court of Appeals Case No. 13514-R, 22 February 1957, 53-12
OG 3792, 30 June 1957)

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 o De Garcia v. Court of Appeals, (G.R. No. L-20264, 30 January 1971, 37 SCRA
129)
o EDCA Publishing v. Sps. Santos (G.R. No. 80298, 26 April 1990, 184 SCRA 614)
o Aznar v. Yapdiangco (G.R. No. L-18536, 31 March 1965, 13 SCRA 486)

V. PRICE

Meaning of Price (Arts. 1469 – 1474)

Requisites for a valid price

1. Must be real (Art. 1471)
a. When price simulated
b. Effects when price simulated
c. False consideration (Arts. 1353, 1354, 1355)
o Mapalo v. Mapalo (G.R. No. L-21489 and L-21628, 19 May 1966, 17 SCRA 114)
o Ong v. Ong (G.R. No. L-67888, 08 October 1985, 139 SCRA 133)
o Bagnas v. Court of Appeals (G.R. No. L-38498, 10 August 1989, 176 SCRA 159)
o Morales v. Court of Appeals (G.R. No. L-26572, 28 March 1969, 27 SCRA 484)
d. Non-payment of price

2. Must be in money or its equivalent (Arts. 1458, 1468)

o Republic v. Phil. Resources (G.R. No. L-10141, 31 January 1958, 102 Phil. 960)

3. Must be certain or ascertainable at time of perfection (Art. 1469)

o Toyota Shaw v. Court of Appeals (G.R. No. L-116650, 23 May 1995, 244 SCRA
320)

How Price is determined

1. By a third person (Art. 1469)
2. By the courts (Art. 1469)
3. By reference to a definite day (Art. 1472)
4. By reference to another thing certain
5. Never by one party (Arts. 1473, 1182)

Inadequacy of Price (Arts. 1355, 1470)

When no Price agreed (Art. 1474)

Manner of Payment must be agreed upon.

o Velasco v. Court of Appeals (G.R. No. L-31018, 29 June 1973, 51 SCRA 439)

Earnest Money v. Option Money (Art. 1482)

o Limson v. Court of Appeals (G.R. No. 135929, 20 April 2001, 357 SCRA 209)
o San Miguel Properties v. Huang (G.R. No. 137290, 31 July 2000, 336 SCRA 737)

VI. FORMATION OF THE CONTRACT OF SALE

PREPARATORY (Art. 1479)

1. Offer (Art. 1475)

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 o Villonco v. Bormaheco (G.R. No. L-26872, 25 July 1975, 65 SCRA 352)

a. Forms of offer (Arts. 1319, 1325, 1326)

o Zayco v. Serra (G.R. No. L-18335, 10 January 1923, 44 Phil. 326)
b. Forms of acceptance (Art. 1319)
c. Vices vitiating consent (Arts. 1330, 1338, 1331)

2. Option Contract (Arts. 1479, 1324)

o De la Cavada v. Diaz (G.R. No. L-11668, 01 April 1918, 37 Phil. 962)
o Carcellar v. Court of Appeals (G.R. No. 124791, 10 February 1999, 302 SCRA 718)

a. Meaning of Consideration:
o Villamor v. Court of Appeals (G.R. No. 97332, 10 October 1991, 202 SCRA 607)
o Soriano v. Bautista (G.R. No. L-15752, 29 December 1962, 6 SCRA 946)

b. An option to buy is not a contract of purchase and sale

o Adelfa Properties v. Court of Appeals (G.R. No. 111238, 25 January 1995, 310
Phil. 623)

c. Without consideration void as option but valid as offer

o Sanchez v. Rigos (G.R. No. L-25494, 14 June 1972, 45 SCRA 368)

d. Proper exercise of option

o Nietes v. Court of Appeals (G.R. No. L-32873, 18 August 1972, 46 SCRA 654)

e. There must be acceptance of option

o Sps. Vasquez v. Court of Appeals (G.R. No. 83759, 12 July 1991, 199 SCRA 102)

3. Right of First Refusal

o Equitorial Realty v. Mayfair (G.R. No. 106063, 21 November 1996, 264 SCRA 483)
o Paranaque Kings v. Court of Appeals (G.R. No. 111538, 26 February 1997, 268
SCRA 727)
o Ang Yu v. Court of Appeals (G.R. No. 109125, 02 December 1994, 238 SCRA
602)
o Rosencor v. Inquing (G.R. No. 140479, 08 March 2001, 354 SCRA 119)

4. Mutual Promise to Buy and Sell (Art. 1479)

o De la Cavada v. Diaz (G.R. No. L-11668, 01 April 1918, 37 Phil. 962)

PERFECTION (Arts. 1475, 1319, 1325, 1326)

1. When deviation allowed
o Villonco v. Bormaheco (G.R. No. L-26872, 25 July 1975, 65 SCRA 352)
2. Sale by Auction (Arts. 1476, 1403 (d), 1326)
3. Perfection (Art. 1475)
o National Grains Authority v. Intermediate Appellate Court (G.R. No. 74470, 08
March 1989, 171 SCRA 131)
o Peoples Homesite and Housing v. Court of Appeals (G.R. No. L-61623, 26
December 1984, 133 SCRA 777)
4. Place of Perfection (Art. 1391)
5. Expenses of Execution and Registration (Arts. 1487, 1521)

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FORMALITIES OF THE CONTRACT
Form not important (Arts. 1483, 1356, 1357, 1358)
o Dalion v. Court of Appeals (G.R. No. 78903, 28 February 1990, 182 SCRA 872)
o Secuya v. Vda de Selma G.R. No. 136021, 22 February 2000, 326 SCRA 244)

Exceptions: When form important

A. Form important for enforceability
a. Statute of Frauds (Arts. 1403, 1405)
o Paredes v. Espino (G.R. No. L-23351, 13 March 1968, 22 SCRA 1000)
o Baretto v. Manila Railroad Co. (G.R. No. L-21313, 29 March 1924, 46 Phil. 964)
o Inigo v. Estate of Maloto (G.R. No. L-24384, 28 September 1967, 21 SCRA 246)

B. Form important for validity

a. Sale of realty through an agent (Art. 1874)
o City-Lite v. Court of Appeals (G.R. No. 138639, 10 February 2000, 325 SCRA 385)
b. Sale of large cattle (Art. 1581, Sec. 529 of REV. ADM. CODE)
c. Electronic Commerce Act (Secs. 7, 8, 11 of Republic Act No. 8792)

VII. TRANSFER OF OWNERSHIP

Manner of Transfer (Arts. 1477, 1496)

o Kuenzle v. Macke (G.R. No. L-5295, 16 December 1909, 14 Phil. 610)

When delivery does not transfer title

1. Sale on return
2. Sale on approval, trial or satisfaction (Art. 1502)
a. Express Reservation (Art. 1478)
o Luzon Brokerage v. Maritime Bldg. (G.R. No. L-25885, 31 January 1972, 43 SCRA
93)
b. Implied Reservation (Art. 1503)
3. When sale not valid
4. When seller is not the owner

Kinds of Delivery
1. Real delivery (Art. 1497)
o Bean v. Cadwallader (G.R. No. L-4175, 26 March 1908, 10 Phil. 606)
o Ocejo v. International Bank (G.R. No. L-10658, 14 February 1918, 37 SCRA 631)
o Cebu Winland Dev. Corp. v. Ong Siao Hua (G.R. No. 173215, 21 May 2009, 588
SCRA 120)

2. Constructive Delivery
a. Symbolic Delivery (Art. 1498)
o Aviles v. Arcega (G.R. No. 18341, 18 September 1922, 44 Phil. 924)
o Phil. Suburban v. Auditor General (G.R. No. L-19545, 18 April 1975, 63 SCRA
397)
o Sarmiento v. Lesaca (G.R. No. L-15385, 30 June 1960, 108 Phil. 900)
o Florendo v. Foz (G.R. No. L-6565, 24 October 1911, 21 Phil. 388)
o Masallo v. Cesar (G.R. No. L-12449, 13 November 1918, 39 Phil. 134)

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 o Asset Privatization Trust v. T.J. Enterprises (G.R. No. 167195, 08 May 2009, 587
SCRA 481)

b. Traditio Longa Manu (Arts. 1498, 1499, 1513, 1514)

o Board of Liquidator v. Floro (G.R. No. L-15155, 29 December 1960, 110 Phil.
482)

c. Traditio Brevi Manu (Art. 1499)

o Abuan v. Garcia (G.R. No. L-20091, 30 July 1965, 14 SCRA 759)

d. Traditio Constitutum Possessorium (Art. 1500)

o Bautista v. Sioson (G.R. No. L-13125, 11 February 1919, 39 Phil. 615)

e. Delivery to a Common Carrier (Art. 1523)

“FOB Sales”
o Behn Meyer v. Yangco (G.R. No. 13203, 18 September 1918, 38 Phil. 602)
“CIF Sales”
o General Food v. Nacoco (G.R. No. L-8717, 20 November 1956, 100 Phil. 637)
“FAS”

Effect of form of bill of lading (Art. 1503)

Double Sales (Art. 1544)

General Rule: “Prior tempore, prior jure”
o Carbonell v. Court of Appeals (G.R. No. L-29972, 26 January 1976, 69 SCRA 99)

Requisites for Double Sale

o Cheng v. Genato (G.R. No. 129760, 29 December 1998, 300 SCRA 722)

Who is a purchaser in good faith?

o Agricultural and Home Extension v. Court of Appeals (G.R. No. 92310, 03
September 1992, 213 SCRA 536)

Priority of registration over possession

Sale of Movables (Arts. 1544, 1497 – 1501)
o Rivera v. Ong (G.R. No. 11176, 21 December 1917, 37 Phil. 355)

Sale of Immovables (Art. 1544 (2))

o Carbonell v. Court of Appeals (G.R. No. L-29972, 26 January 1976, 69 SCRA 99)

Sale by virtue of execution and attachment (Art. 1544)

o Carumba v. Court of Appeals (G.R. No. L-27587, 18 February 1970, 31 SCRA
558)

Meaning of “Better Right”

o Hanopol v. Pilapil (G.R. No. L-19248, 28 February 1963, 7 SCRA 452)

Unregistered land (P.D. 1529, Sec. 113)

o Dagupan v. Macam (G.R. No. L-18497, 31 May 1965, 14 SCRA 179)

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When one sale is a forgery
o Espiritu v. Valerio (G.R. No. L-18018, 26 December 1963, 9 SCRA 761)

First in possession in good faith

o Quimson v. Rosete (G.R. No. L-2397, 9 August 1950, 87 Phil. 159)
o Sanchez v. Ramos (G.R. No. L-13442, 20 December 1919, 40 Phil. 614)

Oldest title (Art. 1544 (3))

VIII. RISK OF LOSS

General Rule (Arts. 1263, 1189)

When loss occurred before perfection

o Roman v. Grimalt (G.R. No. L-2412, 11 April 1906, 6 Phil. 96)

When loss occurred at the time of perfection (Arts. 1493, 1494)

o Norkis v. Court of Appeals (G.R. No. 91029, 07 February 1991, 193 SCRA 694)

When loss occurred after perfection but before delivery (Arts. 1164, 1262)

General Rule: Res perit domino

Loss by fault of a party (Arts. 1480, 1504. 1538, 1636)
Loss by fortuitous events (Arts. 1480, 1163, 1165, 1504, 1538, 1189)
Fruits or improvements (Art. 1537)

When ownership is transferred (Art. 1504)

o Sun Brothers & Co. v. Velasco, (Court of Appeals Case No. 17085-R, 13 January
1958, 54-18 OG 5143, 11 August 1958)
o Lawyer’s Coop v. Tabora (G.R. No. L-21263, 30 April 1965, 13 SCRA 762)
o Song Fo v. Oria (G.R. No. L-10056, 24 December 1915, 33 Phil. 3)

IX. REMEDIES OF AN UNPAID SELLER

Definition of an unpaid seller (Art. 1525)

Remedies of an unpaid seller

1. Possessory Lien (Arts. 1526 – 1529, 1503, 1535)
a. Partial delivery
b. Loss of lien
c. Revival of lien

2. Stoppage in transitu (Arts. 1530 – 1535, 1632 (2))

a. Requisites
b. When considered in transit
c. Sale of goods in transit

3. Right of Resale (Art. 1533)

a. Time to resell

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 b. Right to sue buyer for damages

4. Right to Rescind (Art. 1534)

X. PERFORMANCE OF CONTRACT

Delivery of the thing sold

1. Place, time, and manner of delivery (Arts. 1521, 1169, 1524)
o Smith Bell v. Matti (G.R. No. L-16570, 09 March 1922, 44 Phil. 874)

2. When time is of essence

o Soler v. Chesky (G.R. No. L-17150, 20 June 1922, 43 Phil. 52)
o Republic v. Litton (G.R. No. L-5018, 28 November 1953, 94 Phil. 52)

3. Effects of delivery (Arts. 1477, 1478)

4. When not bound to deliver (Arts. 1524, 1536, 1198)

5. Sale of Movables (Arts. 1522, 1537, 1480)

a. Delivery by installment (Art. 1583)
b. Delivery of wrong quantity (Art. 1522)

6. Sale of Immovables (Arts. 1539, 1540)

o Azarraga v. Gay (G.R. No. L-29449, 29 December 1928, 52 Phil. 599)
a. Where price is at certain rate per unit – Art. 1539, 1540
o Cebu Winland Dev. Corp. v. Ong Siao Hua (G.R. No. 173215, 21 May 2009, 588
SCRA 120)
b. Sale for a lump sum (Art. 1542)

7. Inspections and Acceptance

a. Right of inspection (Art. 1584)
b. Manifestation of acceptance (Art. 1585)
c. Breach of warranty (Art. 1586)
d. Refusal to accept (Arts. 1587 – 1589)
o La Fuerza v. Court of Appeals (G.R. No. L-24069, 28 June 1968, 23 SCRA 1217)

Payment of Price
1. Liability for interest (Arts. 1582)
2. Suspension of payments (Arts. 1590, 1560, 1664)
o De la Cruz v. Legaspi (G.R. No. L-8024, 29 November 1955, 98 Phil. 43)
o Bareng v. Court of Appeals (G.R. No. L-12973, 25 April 1960, 107 Phil. 641)

3. Sale of real property (Arts. 1592, 1560)

a. Effect of non-payment (Art. 1191)
o Laforteza v. Machuca (G.R. No. 137552, 16 June 2000, 333 SCRA 643)
o Luzon Brokerage v. Maritime Bldg. (G.R. No. L-25885, 31 January 1972, 43 SCRA
93)
b. Maceda Law: Sales of Residential Realty on Installment (Republic Act No. 6552)
o Valarao v. Court of Appeals (G.R. No. 130347, 03 March 1999, 394 SCRA 155)
o Active Realty v. Daroya (G.R. No. 141205, 09 May 2002, 382 SCRA 152)

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 XI. WARRANTIES

Express Warranties
1. Distinguish from condition (Art. 1545)
2. Distinguish from opinion, dealer’s talk (Art. 1546, 1340, 1341)
o Songco v. Sellner (G.R. No. L-11513, 04 December 1917, 37 Phil. 254)

3. Distinguish from false representation (Art. 1342)

o Gochangco v. Dean (G.R. No. L-23109, 20 March 1925, 47 Phil. 687)
o Philippine Manufacturing Co. v. Gojuco (G.R. No. L-24256, 21 January 1926, 48
Phil. 621)

Implied Warranties (Art. 1547)

1. Seller has right to sell
2. Warranty against eviction (Arts. 1548 – 1560)
3. Warranty against non-apparent servitudes (Art. 1560)
4. Warranty against hidden encumbrance or defects (Arts. 1561 – 1580)
5. Additional warranties for consumer products (Art. 68 of Republic Act No. 7394, Consumer
Act of the Philippines)
6. Warranty in sale of animals (Arts. 1568)
7. Implied Warranty of Quality (Arts. 1562 (1), 1564)
8. Sale by sample or description (Arts. 1574, 1562 (2), 1481)

Effects of Warranties
Effects of Waivers
Buyer’s options in case of breach of warranty (Art. 1599)
o Ong v. Court of Appeals (G.R. No. 173333, 13 August 2008, 567 SCRA 53)

XII. BREACH OF CONTRACT

Remedies of the Seller (Arts. 1636, 1594 – 1599)

Sale of Movables
1. Action for the price (Art. 1595)
2. Action for damages (Art. 1596)
3. Rescission (Art. 1597, 1534, 1593)

Recto Law: Sale of Movables on Installment (Arts. 1484 – 1486)

1. Meaning of “Installment Sale”

o Levy Hermanos v. Gervacio (G.R. No. L-46306, 27 October 1939, 69 Phil. 52)

2. Remedies available to the unpaid seller

o Delta Motor Sales v. Niu Kim Duan (G.R. No. 61043, 02 September 1992, 213
SCRA 259)

3. Remedy of specific performance

o Tajanlangit v. Southern Motors (G.R. No. L-10789, 28 May 1957, 101 Phil. 606)

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 4. Nature of the remedy of rescission
o Nonato v. Intermediate Appellate Court (G.R. No. L-67181, 22 November 1985,
140 SCRA 255)

5. Meaning of “action”
o Cruz v. Filipinas Investment and Finance Corp. (G.R. No. L-24772, 27 May 1968,
23 SCRA 791)

6. What constitutes “foreclosure”

Third party mortgage

o Ridad v. Filipinas Investment (G.R. No. L-39806, 27 January 1983, 120 SCRA 246)

The “barring” effect of foreclosure

o Northern Motors v. Sapinoso (G.R. No. L-28074, 29 May 1970, 33 SCRA 356)

Sale of Immovables
1. Anticipatory Breach – Art. 1591
o Legarda v. Saldana (G.R. No. L-26578 , 28 January 1974, 55 SCRA 324)

2. Presidential Decree No. 957 (Subdivision and Condominium Buyers’ Protective Decree), Secs. 23,
24
o Casa Filipina v. Office of the President (G.R. No. 99346, 07 February 1995, 241
SCRA 165)
o Relucio v. Brillante Garfin (G.R. No. 76518, 13 July 1990, 187 SCRA 405)

3. Maceda Law: Republic Act No. 6552 - Sale of Immovables on Installment

o Mclaughlin v. Court of Appeals (G.R. No. L-57552, 10 October 1986, 144 SCRA
693)
o Luzon Brokerage v. Maritime (G.R. No. L-25885, 31 January 1972, 86 SCRA 305)

Remedies of the Buyer

1. In case of movables (Arts. 1598 – 1599)
2. In case of immovables (Art. 1911, Secs. 23, 24 of P.D. No. 957)
3. Suspension of Payment (Art. 1590)

XIII. EXTINGUISHMENT OF THE SALE

Causes (Arts. 1600, 1231)

Conventional Redemption (Art. 1601)
o Villarica v. Court of Appeals (G.R. No. L-19196, 29 November 1968, 26 SCRA
189)
o Bautista v. Unangst (G.R. No. 173002, 04 July 2008, 557 SCRA)

Equitable Mortgage (Arts. 1602 – 1604)

1. Definition of Equitable Mortgage
o Tan v. Valdehueza (G.R. No. L-38745, 06 August 1975, 66 SCRA 61)

2. Rationale of Equitable Mortgage

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 3. Badges of Equitable Mortgage
4. Pactum Commissorium (Art. 2088)

Distinguished from Option to Buy (Art. 1602)

o Adiarte v. Tumaneng (G.R. No. L-3031, 15 March 1951, 88 Phil. 333)

Period of Redemption
1. When no period agreed upon (Art. 1606)
2. When period agreed upon
o Anchuel v. Intermediate Appellate Court (G.R. No. 71391, 29 January 1987, 147
SCRA 4343)
3. When there is a period of non-redemption
o Tayao v. Dulay (G.R. No. L-21160, 30 April 1965, 13 SCRA 758)

Exercise of the Right to Redeem (Art. 1616)

o Gargollo v. Duero (G.R. No. L-15973, 29 April 1961, 1 SCRA 1311)

1. By whom exercised (Arts. 1610 – 1613)

2. From whom to redeem (Art. 1615)
3. Effect of redemption (Arts. 1617, 1618)
4. Effect of non-redemption (Art. 1607)

Legal Redemption (Art. 1619)

1. Period to redeem (Art. 1623)
o Conejero v. Court of Appeals (G.R. No. L-21812, 29 April 1966, 16 SCRA 775)
o Butte v. Manuel Uy (G.R. No. L-15499, 28 February 1962, 4 SCRA 526)
o Castillo v. Samonte (G.R. No. L-13146, January 30, 1960, 106 Phil. 1023)
o Doromal v. Court of Appeals (G.R. No. L-36083, 05 September 1975, 66 SCRA
575)

2. Instances of legal redemption

a. Co-owners (Art. 1620)
b. Co-heirs (Art. 1088)
c. Adjoining landowners of rural land (Art. 1621)
d. Adjoining landowners of urban land (Art. 1622)
o Ortega v. Orcine (G.R. No. L-28317, 31 March 1971, 38 Phil. 276)

3. Under Public Land Act (Sec. 118 of Commonwealth Act No. 141,
Public Land Act)

4. Under Extrajudicial Foreclosure (Sec. 6 of Act No. 3135)

5. Under Agrarian Land Reform Code (Sec. 12 of Republic Act No. 6389, Agrarian Reform
Code)

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