‘SALES AND LEASE 4* Semester, AY 2019-2020 Prof. R. R. Dujunco racing system Rectan 40% items 30% Finale 30% Presorbed Text {Law on Sas by Cyrus Vier T. Sualog, 2016 ed ‘Nature and Form of Contract A. Definion =A. 1468 8. Choracterisics Nominate and Principal Consensual At 1475, Btoral and Recprocel - Are, 1169 and 1191 Onerous, (Commutative “At, 1355 and 1470 C. Essontal Requistes 4. Consent 2 Subject Mater 3 Price ‘© Dion. GA.302 SCRA 288 (1900) + Formaran v. Ong, GR No. 185264, 2073 ©. kings . Distinguished fom other contracts 1. Contacto Set ‘+ Luzon Brokerage v Marie Bulng, 43 SCRA 9 (1972) 1 Dignosv. CA, 158 SCRA 375 (1998), Hoi of vont v. Hoes of Spe. Eustai, GR. Ne, 190016, 2013 2, Donation ~ As. 725-726, 745-749 and 1471 3. Dacion en pago~ Ars. 1245 and 1619 4, Barter— Aut, 1468, 1638 to 1661 5. Contact for Pace of Work Arts. 1487, 1713 t0 1715 ‘+ Celestina and Go v. Collector, 82 Phi 841 (1056) ‘+ Commissioner v. Engineering Equbment, 65 SCRA 500 (1975) 6. Agency to Buy or Sell Art 1486, 1868 ‘Quiroga v Parsons, 28 Phi 501 (1918) + G Payat and Sons v. Aco Amusement, 72 Phi 402 194%) Page tot101+ Koran Co. v Lingad, 38 SCRA 824 1971) 7. Dacion en Pago = Art. 1245 ‘ao Heng Bank v.Sps. Lila & Reyna Lalo, 571 SCRA 4343 (2008) 8, Lease — Ate 1484 1485, 1649 ‘+ Bactrach Motor Co. v. Mandozo, GR. No, L-17851 (1022) | Mania Tracing and Supplying Co. v Reyes, 62 Ph 461 (1035) 1. Object ot ne Contract 'A. Rogues ofa Valé Subject Matter ~ Ars, 1459 0 1465, 1. Must be lot — Ars. 1347, 1459, 1575, 1408 "+ Mariner v. CA 58 SCRA 647 (1974) 2. Must be detorinate or determinable Ants. 1349, 1460 "+ Mali v Cly of follo 23 SCRA 477 (1988) ‘Aliana v. Aono 28 SCRA 231 (1968) + Yu Tak. Gonzales, 2 Phi 384 1915) Gate v.Fonacer, 2 SCRA 830 (1961) 3 Musto xs, ry r cong As 147, MB and 12 Empton rt speraie vs. orto spel ~ As. 146%, 462 nd 1947 4 Pihalv. Alonzo 111 SCRA 34 (1081) Undivided nerest= Arts. 1469-1404 (& ‘Subjct to rescutory conden ~ A. 1465, Arsenal IAC, 43 SCRA 40 (1988) 44. Things in tigation An. 1589 and 1385. 4. Quanity of ebject mater nat scent fr patecton ~ At. 1349, “The Price A. Existence of Pie, not simulated ~ As. 1918, 1469 1471, 19594955 ‘Ong. Ong 130 SORA 133 (1985) *Bagras v.CA 176 SCRA 159 (1989) + Sia: Fe Reaty v Sion, GR. No, 195431, 2016 Cerin or ascertainable As. 1460, 1472-1474, 1171 + Tan Tv. Yule, GR. No, 48969 (1899) 4. Bya the porson— Ar. 1469 2. Bythe cous A 1469 3, Byrelerence ~ At. 1472, + Velasoo v CA, 6Y SCRA 4991973) Toyota Shaw v. CA, 244 SCRA 320 1008) 4 By refrence to anther hing certain 5. Neverby one party~ As. 473, 1182 + Rober Dev. Cop v. People's Landiess Assoc, GR. No. 173622, 2013 C. Payable in money ors equivalent ~ Ars. 1245, 1468, 1482 ‘+ Reputie v Phi Resouces Dev, 102 Phi 960 (1958) Pagezet 0. Option money v. Eames money Ar, 1462 ‘Fist Ontia Realy. Securtrn Saunt Senco, G.R No, 108648, 2015 Ang Limsan CA 357 SORA 2092007) , etoctttare an. 1474 Parties to» Contract of Sale [A Capacty of Partos— Ans 1489-1492, 44 and 46 8. Absolute apacty — Ars, 1327-1578, 190, 1988 1997, 1399; Fam Cade Ate 198, pus 1) Necossanes — Ar 1489, 20 ‘ Lagebatw Sago, 271 SCRA 360 2001) Relative neapacty 1.” Carracs nih Thed Parties Arts. 79, 96 nd Fay Code 2. Between Spoute = Arte, 15,1400 and 402 5. Apotabilty to ConmoreLan Spouses At 133 4. ‘Minar ~ fs, 1327, 1301480, 260, 369 and 397 Cal Canulas. Forun, 129 SORA 675 (2002) ‘Marika Pu Cop v. Tage, 142 SCRA 5531086) ‘Director of Land v Abate, 88 SCRA 5191979) 1. Spacial Deauaicatone— Ar. 1491 ~1492 1 Guardians, Agents and Admire 2 Lawjore 3. stages *Philpine Tat Co. Rolon 99 Pi 392 (1950) {Rubs Bator s1 SORA 7201879), 1 Maciela Aint 114 SCRA 7 (1982) Formation ofthe Contract of Sale A. Prepertony~ Ae, 1478 1. Ofer =A. 1475 7 Vilonc v. Semanace 85 SCRA 362 (1975) 18 Fos of te Ais. 1919, 326,128 2 "Zaycov Sara $4 Pi 3261923) Forms of acceptance ~ Ars. 1319 Webs vt eareent Ars. 13301384, 1358, 1380 2 Option Contact As. 1479, 134 Dols Cavada Diaz 37 Pit 962 (1936) + Carclary CA 302 SCRA 7181809) 1 Shao nev. Sta. Montes Indust and Devetoment, GR, No. 154156 i2005) A. Meaning of Cnsteratn ft Vemorw.CA202 SCRA 607 (1991) Page 310b Anopton to buyis not a cots f purchase ond solo Wiheut consideration vot ae option but valid 9 fer 4. Proper exercise of orton 2 There must be aceeptan of opton 3. Right Fist Retest ‘+ Equtoral Realy v. Mayfa 264 SCRA 483 (1996) Paranaque Kings v CA 268 SCRA 727 (1887) {+ ng YuAsurcon v. CA 238 SORA 602 (1954), GR. No. 105125 (1994) ‘+ Rosencory Inguing 354 SCRA 119 (2001) 4. Mutua Promise to Buy and Sell—Art. 1479, 8. Perfection of Conract— Arts. 1805, 1476, 1818, 925, 1326 1. tect of partion — As. 1475, 1476, 1483, 1874 ‘+ Ortge v. Leonardo, 108 Phi 870 (1888) 2. Biotral promise to buy and set/opton to buy — As. 1479 and 1324 ‘Dota Covada. Dia, 37 Phi 982 (1976) 3. When devaton stoned Wilco v. Bormaheco 65 SCRA 352 (1975) 4. Place of Parecton — At, 1291 |S. Expenses of Execution and Reglsvaton - At 1487, 1521 6 Speci sk a Sale by auction ~ Art. 1476, 140 1326. 1b Sale by samrle or description ~ Ars. 1481 and 1885 © Usaeos wth epi to buy ~ Are. 1465-1487 & Expropaten™ Ar 1468 (. Fonmattis of he Contract 1, Fermation of he conract— Arte 483, 1856, 1957, 1958, 1874 + Unhersy of te Phippines v’ PHILAB, Git No” 152611, 2004 {Dalon vA, 162 SORA 872 (1960) + Giy Lite. CA 925 SCRA 985 2000) 2 Statue tauds — Ars 1403, 1405, ‘igo Malo, 21 SCRA 246 (1967) 1 Parodesw Esin, 22 SCRA 1000 (1968) 2) Dusit ‘Duran, GR No. 173038, 2071 Expropriation — At 1488 Eleorone Commerce Act RA 8792 See 7, @ ard 11 Riles on Electronic Evidence Rls of Cour ‘Noaril Lan and Rules age ofRisk of Loss [A Ingeneral = Arts 1480, 1969-1165, 1262, 147, 1283, 11 1499, 498 4. Loss by fault ary - Arts. 1480, 1508, 1598, 1636 2. Loss yfrttous events ~ Arts, 480, 1165, 1165, 1504, 1598, 1189, + ChyslerPhigpiresv. CA, GR. No. 55684 (1884) 3. Frits orimprovements— As. 1537 + Nor Disteuor . CA, 198 SCRA 604 (1991) Roman v Gra 6 Pi 96 (1906) ©. Etec fs of bing std — Arts, 1493,1464, 1504 and 1538, ‘+ Sun Bs. Prez, 7 SCRA 977 (1969) Rights and Obligations of the Vendor |A. Transfer oumerstip and tile — As. 1477, 1476, 1486, 1585, an 699 1. Sale by person nthe owner Ar. 1458, 1805, 1462, 1434 "amar Yapdlargco 19 SCRA 486 1965) 2, Sale by ane having voidabl le ~ Art, 1506, 659, '+ De Garcia v. CA, 37 SCRA 120 (1977) $EDCAY. Santos, 184 SCRA 6141990) 1 Sly Gang Bang HSBC, 56 Phi $98 (1932) 8, Estoppel— Ars, 1505, 1494, 1434 2 Homaez .Homaez, 32 Pil 214 (1915) 4. uci sales + Jolbuena v, Lapa, 38 Phi 7 (1916) 15. Salein Merchants Store, Maret or Fai "Sun Bros V.Volasco $4 OG 5143 Aug 1988 {Masia v. Corto GR No 8420, May 21,1956 1. Dotvory a ting sald An. 1165 4. Manner of ranser— Ans, 1477 and 1498 2 Genera oii to deve — Arts. 1496-1457 Kindo tory ~ Ants. 1487-1504 2. Real or chyscal + Boen v. Cadwalader 10 Phi 606 (1908) cee Itomatonal Bank 37 SCRA 631 (1018) b. Constructive Delivery 1. Symbol Devery Ar. 1498 + Auls v Arcoga 44 Phi 924 (1922) {Asst Privatization Trust. Tl Enters 587 SCRA 481 (2009) rages oft5 Taito Longa Mara ~ As. 1498, 1499, 1513, 1514 ‘+ Board of Lider loo, 110 Phil #2 (1860), GR. No, L-15155 1, Tratton Brew Man — Art 499 Iu. Trasto Constutom Possessorum ~ At 1500 ‘+ Bouts Sioson 39 Pt 615 (1979) Delve 19.9 Gammon Canir— As 1823 FoR, IF FAS ‘+ Bohn Meyer. Yangco 38 Phil 6021918) General Food v Nacoco 100 Ph 637 (1956) ict farm ofl of ang ~ Ac 1808 Exceplonsspectal cases 2 Solon ern Art 1602 par 4 Sal on approval— At. 1802 por. 2 © Upon payment of price 4. Reservation of ownership ~ Art 1809, 1478, fe. Exocuory contact of sale Sal by imp sam ‘Arcana v Ingram, 6. No, 186444, 2017 ‘Accessory obligations ~ As, 1597-1549, 1169 and 1407 ©. Doute Sales — Art. 1544 oS r General Rule ~ Prior tempore, iu Cortana y CA 09 SCRA 981976) equates for Doble Salo Chang v. Genta 300 SCRA 722 (1908) {Thala Rodriguez v- Spouses Sidson, GR. No, 199180, 2016 (Whe is purchaser in good fat Agreitual ans Home Extension v. CA 213 SCRA 595 1992) Ponty afreglstaton aver possession Sale of Movabine~ As. 1944, 1497101501 ira Ong 37 Ph 355 (1977) ‘Salo of rmoabes ALT 1544 par 2 + Spouses Tengao v. Spouses Parungso, GR. No. 166049 (2007) Spouses Pusaderav Magaanes, GR No, 170073, 2010 ‘Sala by we of executon and atachment= Ar 1544, + Carumba v CA31 SCRA 558 (970) Meaning of "Beir Right +1 Hanopalv. Paap!” SCRA 452 (1963) Unregistered and - PD 1529 ec. 113 Dagupan v Macam 14 SCRA 179 (1965) Wen one sales focory + "Expr v. Vato 9 SCRA 761 (1963) Festin possession n good fin Quins v. Rosete 87 Pi 159 (1080) vest tte AR 1544 par 3 1. Conditions and warrants ‘+ linst Cred Co v. CA, 178 SCRA 188 (1088) Page bof1. Exgrass— Ars. 1545-1546 Carascoco ev. CA, GR. No.123672 (2008) 2. Distinguish fom conden ~ Arts. 1545, B Dstnguis fem eprion, dealers ak Ar. 1546, 1340, 1341 ‘+ Songeov. Sener 37 Ph 254 (1937) «Distinguish tom fale representation ~ Art 1942 = PMC. Gaueo 48 Pm 621 (10265) 2. Implnd~ Arts, 1647 and 1858 2 Sailor hae right fo 1 Warany agarst elton - Arts 1548 ~ 1560, 1590 4" Bignay Em Pippin v Union Bank, GR No. 171880, 2014 « Waray ogonstnon-pparent serviudes~ At. 1880 4. Waren ages hidden encumance a cect ~ As 1547, 1900-150, 155- ier 2 Adtcna! warantes for consume: products — RA 7398, An. 68 1 Waranty in sae of anmals~ Ar 1568, 1572-1581 6. knpled Warranty of Quay ~ At 15621), 1554, 1565 Fi Sale sample or deenpion ~ Art. 7574, 1562 (2), 1865, 1481 ‘3 Buyers options incase of reach of waranty ~ Art 1899 Vl, Documents oftile— arts, 1636, 1507-1522, and 1503, 1 Siy Cong Bing . HSBC 56 Phi £08 (1932) |. Compared wth Negotisle nsuments Law 8. How nagotstd~ Ans. 1500, 1508 . Wino many nogctite— A. 1512-1513 ©. Rights acquired by negation =A. 1505 Rights acqured by vanstr F imped waranton~ A. 1516-1520 . Negation not impaired by reud H. Creditors rights over goode covered by nogetabie document 1 Non-negotiale documents fle Ar. 1807, 1514 1X Remedies of unpald seller ~ Arts, 15251836, 1514, 1519, 1520 Lon art 1535, 1526-1820, 1503 Sloppage a wants Ars, 1530-535, 1532(2) Renal At. 1533 Rescssion ~ At. 1534, 1285, 1596, ital dalvery ‘+ Ketigbak v CA, 4 SCRA 249 (1982), X. _Rights and Obligations of the Vende oP gzerage Gay, 52 Ph 690 (1928) A. Accept devery — As, 1582-1889 and 1481 {Right examnainspecton ~ As. 1888-1569 2 Farms of aczeptance 3 Remedies Page of 10x a ‘Sta Ana . Hernandez, 18 SCRA 972 1968) 1 Batanottov Ca, 249 SCRA 325 (1995) 8. Pay preavemedies 4. ablty orinoret— As. 1882 2. ‘Stepensian of payenents ~ Arts. 1589-1500, 1560, 1664 Delia Crucw Legaspi 98 Phi 43 (1955) 3, ‘Bole at real property Ars. 1502, 1880 2 "bla. Angales Hut, GR. No. 155504 (2004) 4, "Etteetef nonpayment = Ar. 1197 ‘+ Laloteza Machuca $33 SCRA 643 (1992) 1 Linen Btokarage v. Marimo dg 43 SCRA 83 (1972) 5. ‘Maceda Law Sales o Resta! Realy on instalment (RA 6552) «Danan w Spouses Sorano ond Reyes, GR. No. 198072, 2016 1 Seouses Co Chin y, Sta Luca Realy, GR Ne. 162090, 2007 1 Moox Roatyv Ssbern, GR No. 176288, 20136. Actions for Breach of ContactRemedies A, Sale of Goods — Aa. 1504 1. Remedi ofthe Sater 2 Aston for pice =, 1595 Baton fr damages A. 1595 ©. Resceson ars 597, 1834 and 1581-1689 2. Remedies ofthe Buyer 2. Specfe perfomance At. 15981509 Bren of waranty Ar. 1107-1792, 1545, 1898 © Resceson = Be 1599 ‘Song Fo and Co. v. Hawatan Phi. Co, 47 Ph 825 (1925) 2 DetRosarov. CA 267 SCRA 158 , Sale of morales on instalments - Recto Law, ANS. 1484-1486, + "Gna. Pipes Investment 29 SCRA 791 (1968) {tod ipinas Imesimont 129 SCRA 246 (1983) C. Sale ot immavatle cn instalments — As, 1385, 159-1502, Maced Law 1. Subaislon and Condominium Buyer's Protective Decree PD. 957 2. Realy Property Buyer rotesien Ae R.A 6552 + Coes Filpinav Ofice othe Presdort 241 SCRA 165 1005) 1 AetveReokyv. Darya, 82 SCRA 152 (2002) Barter ~ As, 1698-1841 Extingushment of the Salo A. Causes Ars, 1600, 1231 1B Conventional Recempsion ~ A. 1601-1818, 144, 1677+ Matoro v Cebu State Coleg, GR No. 152199 (2005) 1 Gaus . Traders Royal Bank. GR. No, 151098 2006) 4. Equitable Mortgage — As. 1602-1604, 2088 + Lusign vA, G.R No 111924, 1907 1 Repuoi . Esa of Spouses Larawan, GR. No. 219638, 2016 Distinguish rom Opton to Buy — Art. 1602 ‘Adare v. Tumanong 88 Phi 333 (1951) 3, Period of Redemption ‘2 Whan no period gree upon - At. 1606 1. Wnen pores agreed upon When heres a period of non-redemetion 4. Exercise of the ght redacm— Art 1616 ‘2. Bywhom evarises~ Ars. 1610-1613, From whom t rodoem A. 1618, © Efecto redemption = As. 1617, 1618 4. fect of nomredemplon = At. 1807 . Legal Rdemplon - Ar. 18194623, 1088 1. Perot r0doum ~ At, 1625, 2 Butte Mano! Uy = 4 SCRA 526 (1962) + Doromal vA 68 SCRA 575 (1975) 2, tnstanes of egal redemption ‘Coroners At 1620 Cones Aa 1088 ‘Agonig landowners of ral land— At 1621 ‘Adee landowners of urean land — Aa, 1622 ‘Under Pbte Lane Aet~CA Tat gee. 118 Unier Extrajuicl Foreclosure ~ Act 3175 se. 8 ‘Under Agrenan Land Reform Code ~RA 6380 soc. 11-12 Forecoeur and executon sales Act No, 3135, ule 68 ROC, GBL Sec. 47 ‘Spouses Lane and Edgalalv. CA, GR. No.1330179 (2008) ‘Spouses Roeolesv. Spouses Allens, G.R. No, 137792 2003) Motobankv. Spouses Ten, GR. No 17849 (2008) ‘Banca Flpino Savings v. CA, GR No. 143896 (2008) 2X, Loates— Arts. 1642-786 Estate of Lanado v. Uenado, GR. No. 145796, 2008 Land Bank v AMS Farming Corporatio, GR. No. 174971, 2008 ‘Sime Oarty Piphas v. Goodyear Philpines, 6. No, 182148, 2011 Yul v. Wetington Co, GR. No. 178527, 2008 ‘Spouses Casto. Palnzvela, C.F. No, 184696, 2013 Blosv. CA GR. No. 82813, 1989XOV, Bulk Sales Law A Scope People Wong CA 0.6, 4867 (1954) Coverage of Buk Sale ©. Comptonce requirements under the iw D, Eels of noncompliance Sec. 47.11 ‘+ People. Mopey 73 Phi 678 (1942) XV, Retall Trade Liberalization Act of 2000 ‘A. Constiutonlty ‘ rehong . Hemanses 101 Phi 155 (1957) 1B. Scape and defiton king. Hemandos 4 SCRA 792 (1962) ©, Elements ‘Application of Grandater Rue on 100% Flipna ownership f corporate ety A umy fet ~CANo, 108 a8 amended by PO 715