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SALES (OUTLINE 2)
Prof. M.I.P. Romero/ 2020
1. SUBJECT MATTER OF SALE -- Art. 1347 (things and rights)
Arts.1461 – 1465
- must be licit (1459)
- illicit per se v. illicit per accidens
- within the commerce of man (1347)
- not impossible (1348)
- future inheritance vs. interest in an inheritance (1347)
- determinate OR determinable things (1458, 1460; 1349)
- generic things
- fungible goods (1464)
- thing having a potential existence (1461)
- emptio rei speratae v. emptio spei
- goods whose acquisition by seller depends upon contingency
(1462)
- things subject to a resolutory condition (1465)
- acquired under legal or conventional redemption (1608)
- property subject to reserva troncal (study concept)
- future goods (1347; 1462)
- undivided interest in a thing (1463)
- “nemo dat quod non habet”---Rt to transfer ownership at time of
delivery (1459 , 2085 par.2); Exceptions – (1434, 1505, 1506);
Relate to Art. 559
Yu Tek & Co. v, Gonzales Feb.1, 1915
Compana de Tabacos v. CA 185 SCRA 284 (1990)
Heirs of San Andres v. Rodriguez 337 SCRA 769 (2000)
Pichel v. Alonzo Jan. 30, 1982
EDCA Publishing v. Santos 184 SCRA 614 (1990)
Tagatac v. Jimenez (cited in EDCA case)
Quijada v. CA 299 SCRA 695 (1998)
Sumaya, et al. v. IAC Sept. 2, 1991
Pajunar v. CA July 18, 1989
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2. PRICE – Arts. 1469 – 1474; Arts. 1355, 1381 (1) (2), 1386
R.A. 8183 w/ c repealed R.A. 529
- price certain or capable of being ascertained in money or its
equivalent
- includes manner of payment
- determination / fixing of price
Tan Tiah v. Yu 67 Phil. 739
Toyota Shaw Inc. v. CA 244 SCRA 320 (1995)
Navarra v. Planters Bank GR 172674; July 12, 2007
- inadequacy of price in voluntary sales (gen rule and excptn)
Ong v. Ong 139 SCRA 133 (1985)
Aguilar v. Rubiato 40 Phil. 570 (1919)
- inadequacy of price in involuntary sales (gen rule and excptn)
PNB v. Gonzales 45 Phil. 693
De Leon v. Salvador GR 31603 Dec. 28, 1970
Cometa v. CA Feb. 6, 2001
- absolute and relative simulation of contract (1345)
- false price -- contract valid but subject to reformation (Art 1359)
- simulated price -- void contract (1471 and 1353)
Heirs of Ureta v. Heirs of Ureta Sept. 14, 2011
Phil. Banking Corp. v. Dy Nov. 14, 2012
3. PARTIES TO A SALE
a) Consent - meeting of the minds upon the thing and the price
- consent that affects perfection of the contract
- when nonfulfillment of condition prevents perfection of the
contract
- when nonfulfillment of condition affects performance of the
obligation
Review: People’s Homesite v. CA
Romero v. CA
Add: Lim v. CA October 24, 1996
Recio v. Heirs of Altamirano July 24, 2013
b) Capacity to Give Consent
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- General Rule - Art. 1489, par.1

- Absolute incapacity - Art. 1327, 1390
Relate to Art. 1489, par. 2
- Relative incapacity - Art. 1490 (See Arts. 87, 96, 124, 194 Family
Code)
Arts. 1491, 1492
NOTE: Know the RATIONALE for the prohibitions and the
EFFECTS on the legality of the contract
CASES:
Guiang v. CA 291 SCRA 372 (1998)
Medina v. Coll. Of Int. Rev. GR 15113 (Jan. 28,1961)
Ching v. Goyanko, Jr. 506 SCRA 735 (2006)
Cruz v. CA 289 SCRA 491 (1997)
Cook v. McMicking 27 Phil. 10 (1914)
Matabuena v. Cervantes 38 SCRA 284 (1971)
Rubias v. Batiller 51 SCRA 120 (1973)
Fornilda v. Br. 164 Pasig RTC 166 SCRA 281 (1988)
Lao v. Genato 137 SCRA 77 (1985)
Maharlika Broadcasting v. Tagle 142 SCRA 553 (1986)
Paragas v. Heirs of Balacano 468 SCRA 717 (2005)
Mercado v. Espiritu 37 Phil. 265
Fabillo v. IAC March 11, 1991
Ravina v. Villa Abrille Oct. 16, 2009
Jader-Manalo v. Camaisa Jan. 23, 2002
Abalos v. Macatangay, Jr. Sept. 30, 2004
Sumbad v. CA July 21, 1999
Iglesia Filipina v. Heirs of Taeza Feb. 3, 2014
Bautista v. Jalandoni