CHAPTER 6.

PERFORMANCE OR CONSUMMATION OF SALE

1. Recap, what are the obligations of the seller?
a. To preserve the subject matter – every person obliged to give a determinate thing
is also obliged to take care of it with the proper diligence of a good father of a family,
unless the law or the stipulation of the parties require another standard of care. (Art.
1163, CC)

b. To deliver the subject matter – the seller is bound to transfer ownership of, and to
deliver the thing, which is the object of the sale to the buyer (Art. 1495); to transfer
the ownership and to deliver a determinate thing (Art. 1458).

c. To deliver the fruits and accessories –

d. To warrant the subject matter

2. Is acceptance necessary for the delivery of the seller to achieve its legal effects?

Acceptance, although an obligation on the part of the buyer, is not essential for delivery by
the seller to achieve its legal effects (Principle on Tradition)

3. What are the types of delivery?

a. Actual or physical delivery – when the thing sold is placed in the control and possession
of the buyer.

b. Constructive delivery – the existence of an agreement between the seller and the buyer,
and that the latter is understood to have control of the subject matter of sale.
1. Execution of public instrument
2. Symbolic delivery
3. Constitutum Possessorium
4. Traditio Brevi Manu
5. Tradition Longa Manu
6. Delivery of incorporeal property
7. Delivery by negotiable document of title
8. Delivery through carrier
i. FAS Sales – the seller pays all charges and is subject to risk until the
goods are placed alongside the vessel.

ii. FOB (Free on Board) Sales – under such arrangement the seller shall bear
all expenses until the goods are delivered, depending on whether the
goods are to be delivered “fob” at the point of shipment or at the point of
destination.

iii. CIF (Cost, insurance, and freight) Sales – under the arrangement, the
amount quoted by the seller and agreed to by the buyer, covers not only
the cost of the merchandise (i.e., the price) but also the cost of insurance
and freight.

4. Can the parties agree that the delivery of the object does not transfer ownership?

5.     What is the effect of the execution of a public instrument?

6.     Can a special power of attorney to sell land be interpreted as delivery?
7.     What are the conditions or situations where execution of public instruments does not
produce effects of delivery?
8.     What is the legal import of Addison v. Felix?
9.     What is a symbolic delivery? Give examples
10.  What is constitutum possessorium
11.  What is tradition brevi manu?
12.  What is tradition longa manu
13.  How do you deliver a trademark?
14.  Is the delivery of the seller to a carrier deemed delivery to the buyer?
15.  What is FAS Sale?
16.  What is FOB Sale?
17.  What is CIF Sale? What are the two school of thoughts? Our jurisdiction adheres to what?
18.  What are the two elements needed for tradition to produce its twin legal consequences?
19.  To whom delivery must be made?
20.  What if the buyer would refuse acceptance, would that halt the legal effect produced by the
delivery?
21.  If the sale of goods is by description or sample, what is the remedy of the buyer if the goods
delivered do not correspond with the description or sample?
22.  What is “on sale or return,” “sale on approval,” “trial, satisfaction, or acceptance”
23.  Can sale on return be proved by oral evidence? 
24.  When immovables are sold per unit or number, in what cases can a buyer rescind?
25.  What is the legal import of Santa Ana v. Hernandez
26.  Is the payment of the capital gains tax a pre-requisite to the transfer of ownership to the
buyer? 
27.  Does the rules on double sales under the Civil Code overcome the rules provided in the
Property Registration Decree?
28.  Legal import of Naawan Community Rural Bank Inc v. CA in relation to question no 27
29.  What kind of registration is meant in Article 1544?
30.  What are the essential elements for applicability of Article 1544