REMEDIES UNDER SALES

ARTICLE REMEDIES
1469. Effect where price not fixed by If the SPECIFIED PERSON is
third person designated. prevented by fault of a party, the
aggrieved party may have remedies
against the party at fault
a choice between rescission or
fulfillment, with damages in either
case.
~If the innocent party chooses
fulfillment, the court shall fix the price.

1481. Sale of good by description a) Cancel or rescind the sale, return the
and/or sample goods and collect the account paid.
b) Retain the goods and sue for breach
of warranty

1484. RECTO LAW The ALTERNATIVE Remedies of

the vendor or seller in case of failure to
Contract of Sale Payable in pay by the vendor or buyer:
INSTALLMENTS for Personal 1. Exact fulfillment of the obligation,
Properties should the vendee fail to pay
2. Cancel the sale should the vendee’s
failure to cover 2 or more installments
3. Foreclosure the chattel mortgage on
the thing sold, if one has been
constituted, should the vendee’s failure
to cover 2 or more installments. In this
case, he shall have no further action
against the purchaser to recover any
unpaid balance of the price. Any
agreement to the contrary is void.
1486. Maceda Law (RA 6552) Section 3: Remedies for the buyer
when he has paid at least 2 years of
installments in case he defaults in
payment of succeeding installments:
a) To pay without interest within the
total grace period – 1 month for every
1 year installment (can only be availed
1x every 5 years)
b) Cancel the contract, seller give 50%
+ 5% per year if after 5 years of
installments but does not exceed 90%
of the total payments (Provided, the
actual cancellation of the contract shall
take place after thirty days from receipt
by the buyer of the notice of
cancellation or the demand for
rescission of the contract by a notarial
act and upon full payment of the cash
surrender value to the buyer)

1493 Loss of the Object BEFORE Partially Lost Remedies:

SALE IS PERFECTED  Withdrawal or rescission
 Specific performance as to the
remainder by the payment of
proportional price

1494. Loss in case of specific goods

~Avoidance
~Specific performance of the
remainder (DIVISIBLE)
1520. Creditor’s remedies to reach Aid from courts of appropriate
negotiable documents. jurisdiction by injunction
1522.
Delivery of goods less than quantity 1. Can reject all
contracted. The buyer: 2. But if the buyer accepts (1) he must
pay for them at the contract rate if he
knew that no more were to be delivered
or (2) the fair value (reasonable value)
of the goods.

Delivery of goods more than quantity 1. Can accept the goods included in the
contracted. The buyer: contract
Note: He accept the whole of the goods
so delivered he must pay for them at
the contract rate.
2. Reject the rest.
Note: General Rule- he can’t reject all
Exception- subject matter is indivisible.

Delivery of goods mixed with others. 1. Can accept the goods included in the
The buyer: contract
2. Reject the rest.
Note: General Rule- he can’t reject all
Exception- subject matter is indivisible.

1526. Remedies of the Unpaid Seller: Possessory lien on the goods or Right
to retain
Right of Stoppage in transit
Right of Resale
Right to Rescind sale

1539. Sale of real property by unit of 1. Demand the area lacking

measure or number. 2. Rescind- be not less than 1/10
 3. Ask for reduction for the price

1542. Sale of real estate made for a General Rule: No remedies

lump sum. Exception:
1. Two or more immovable
2. Sold for single price.
3. Boundaries
4. Area

1545. Effect of non-fulfillment of Either party:

condition. 1. Refuse to (sell) proceed with the
contract
2. Proceed with the contract, waiving
the performance of the condition.

1556. Alternative rights of vendee in 1. Rescission

case of partial eviction. 2. Sue the seller against warranty
against eviction

1567. Alternative remedies of the 1. To withdraw from the contract

buyer to enforce warranty. 2. demand a proportionate reduction of
the price, with a right to damages in
either cases.

1580. Alternative remedies of vendee ~ Redhibitory action

in sale of animals. ~ action quanti minoris

1590. Vendee can suspend payment of price.

1591. Vendor may rescind sale of immovable

property.

3 Remedies of the seller: Actions

available
1595. Payment of the price
1596. Damages for non-acceptance of the goods.
1597. Rescission of the contract

2 Remedies of the buyer:

1598. Specific performance
1599. Rescission or damages for breach of
warranty.

~Buyer-Remedies (alternative)
1. Accept and recoupment
2. Accept and damages for the
breach of warranty.
3. Refuse to accept and damages
4. Rescind/Recover and damages

1605. Vendor may ask for reformation (Cases

referred to in articles 1602 and 1604)

PERIODS UNDER SALES

ARTICLE PERIOD
1485. Maceda Law 1. At least 2 years
a. pay without interest
b. cash surrender value—50% after 5
years—after 5 years plus 5%
2. Less than 2 years
-grace period of at least 60 days, the
buyer shall have additional 1 month
grace period for every year of
installment payment after the first two
years installments.

1543. Actions arising from articles 1539 and

 1542 shall prescribe in six months,
counted from the day of delivery.

1550. Prescription (Statute of 1. Acquisitive- 10 years in Good Faith//

Limitation) 30 years in Bad Faith
2. Extinctive- 10, 6, 4, 1

1560. When action must be brought. The action of rescission or damages

must be brought within one year from
the execution of the deed of sale.
If the period has already elapsed, the
vendee may only bring an action for
damages within one year from the date
of the discovery of the non-apparent
burden or servitude.

1571. The actions for rescission or SIX (6) MONTHS from the delivery of
reduction the price must be brought the thing sold.
within the proper period

1577. The actions for rescission or within 40 DAYS from the date of the
reduction the price must be brought delivery in case of animals.
within the proper period

1578. If the animal should die within THREE (3) DAYS after its
purchase, vendor is liable.

1580. Alternative remedies of vendee The action must be brought within 40

in sale of animals. days from the date of the delivery of
animals to the vendee.

1606. Period for exercise of right of 1. No agreement/granting right- no

redemption. right of redemption
2. Agreement merely grants rights-
four (4) years from the date of the
 contract.
3. Definite period of redemption agreed
upon- within the period fixed provided
it does not exceed ten (10) years.
4. Period of redemption agreed upon
not satisfied- 10 years.
5. Period agreed upon exceeds ten
years- the vendor a retro has 10 years
from the execution of the contract.
6. Final judgment rendered that
contract pacto de retro- the vendor a
retro has 30 days within which to
exercise the right to repurchase

1623. Period for exercise of right of The period of 30 days is counted from
pre-emption or redemption the notice in writing given by the
vendor.

1629. Duration of assignor’s liability 1. If there is a stipulation, then for the

where debtor’s solvency guaranteed. term or period fixed
2. If there is no stipulation:
a. For one (1) year from the
assignment of the credit when the
period for payment of the credit has
expired.
b. For one (1) year after its maturity,
when such period for payment has not
yet expired.

1634. The debtor may exercise his Within thirty (30) days from the date
right the assignee demands payment from
him.