FIRST SEMESTER - SCHOOL YEAR 2013-2014

TITLE VI - SALES
CHAPTER 1 - NATURE AND FORM OF THE CONTRACT
ART. 1458

- Definition
- Characteristics
- Elements
- Stages
- Kinds
- Distinguished from other agreements/contracts

ART. 1459

- The thing must be licit

- Vendor must have the right to transfer ownership

ART. 1460

- Determinate
- Determinable

ART. 1461

- Having potential existence

- Mere hope or expectancy
- Vain hope or expectancy
- Emptio Rei Speratae vis-à-vis Emptio Spei

ART. 1462

- Existing goods owned or possessed by Seller

- Goods to be manufactured, raised or acquired by Seller after perfection of contract
- Goods whose acquisition by the Seller depends upon a contingency which may or may not
happen

ART. 1463

- Sale of an undivided interest in a thing

ART. 1464

- Sale of an undivided share of a specific mass involving fungible goods

ART. 1465

- Things subject to a resolutory condition

ART. 1466

- Contract of Sale vis-à-vis Contract of Agency to Sell

ART. 1467

- Contract of Sale vis-a-vis Contract for a Piece of Work

ART. 1468

- Contract of Sale vis-à-vis Barter

ART. 1469

- Certainty of the price

- When no amount is stipulated
- If one acted in bad faith or by mistake

ART. 1470

- Gross inadequacy of price

ART. 1471

- Simulated price and its effect

ART. 1472

- Certainty of price relating to securities, grains, liquids and other things

ART. 1473

- Price can never be left alone to one party’s discretion unless agreed upon by the parties

ART. 1474

- Effect if price can never be determined

- Reasonable price rule – when there is already partial delivery

ART. 1475

- When is there a perfected contract of sale – face to face; thru correspondence and when
subject to a resolutory condition
 - Consensual and Bilateral characteristics of a contract of sale
- Requirements for perfection
- Formalities for perfection – Statute of Frauds

ART. 1476

- Sale by auction and when perfected

ART. 1477

- When is ownership transferred

- Kinds of delivery

ART. 1478

- Pactum Reservati Dominii

ART. 1479

- Mutual promise/ bilateral promise via-a-vis accepted unilateral promise

- Policitacion
- Option contract/option money

ART. 1480

- Who bears the risk of loss of the object – before perfection, after perfection before delivery
and after delivery

ART. 1481

- Sale by description
- Sale by Sample
- Sale by description and sample

ART. 1482

- Earnest money- its definition and significance

- Earnest money vis-à-vis option money
- Right of first refusal

ART. 1483

- Forms of contract of sale: written, oral, partly in both, inferred from parties’ conduct

ART. 1484

- Sale of personal property in instalment (RECTO LAW)

- Vendor’s remedies when vendee failed to pay
 - Inapplicability of Art. 1484

ART. 1485

- Art. 1484 applies to lease of personal property with option to buy

ART. 1486

- Non-return of paid instalments

- MACEDA LAW

ART. 1487

- Execution and registration expenses borne by the vendor

ART. 1488

- Expropriation for public use by the government

- Requisites for Expropriation

CHAPTER 2 - CAPACITY TO BUY OR SELL

ART. 1489

- Absolute incapacity vis-à-vis relative incapacity

- Purchase by minors

ART. 1490

- Spouses cannot sell property to each other; Exceptions

ART.1491

- Persons relatively incapacitated to buy

ART. 1492

-Arts. 1490 to 1491 applicable to sales in legal redemption, compromises and renunciations

CHAPTER 3- EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS BEEN LOST
ART. 1493

- Complete loss vis-à-vis partial loss

- When object is lost before sale

ART. 1494

- Loss of specific goods

CHAPTER 4- OBLIGATIONS OF THE VENDOR
SEC. 1. General Provisions

ART. 1495

- Obligations of vendor: to transfer ownership, to deliver object, to warrant the object and to
preserve it from perfection to delivery
- Effect of non-delivery of object

ART. 1496

- Generally, delivery of the thing transfers ownership

SEC. 2. Delivery of the Thing Sold

ART. 1497

- When ownership is not transferred despite delivery

- Kinds of delivery: Real/actual, legal/constructive and quasi-tradition

ART. 1498

- 2 Kinds of constructive delivery: legal formalities and tradition simbolica

- Requisites of constructive delivery

ART. 1499

- Delivery of movable property: traditio longa manu and traditio brevi manu

ART. 1500

- Traditio Constitutum Possessorium

ART. 1501

- Manner of delivery of incorporeal property: constructive tradition and quasi-tradition

ART. 1502

- On sale or return transactions vis-à-vis on approval or on trial or satisfaction transactions

- Definitions, rules and exceptions

ART. 1503

- Instances when despite delivery of specific goods ownership is reserved

ART. 1504

- Risk of loss of specific goods

ART. 1505

- Buyer acquires the Seller’s rights; Exceptions

ART. 1506

- Effect if Seller has a voidable title to the thing

ART. 1507

- When a Document of Title (DT) is negotiable

ART. 1508

- Negotiable Document of Title (NDT) negotiated by delivery

ART. 1509

- Effects of a NDT when negotiated by indorsement and delivery

ART. 1510

- Effect of placing ‘non-negotiable’ in a DT

ART. 1511

- Effect of delivery when DT cannot be negotiated by mere delivery

- Effect of negotiation and indorsement of a non-negotiable instrument

ART. 1512

- Persons who may negotiate a NDT

ART. 1513

- Rights of a person to whom NDT is negotiated

ART. 1514

- Rights of a mere transferee

- Who can defeat transferee’s rights

ART. 1515
 - Rule when indorsement is needed for negotiation

ART. 1516

- Warranties in negotiation

ART. 1517

- Non-liability of Indorser for failure of Bailee to comply

ART. 1518

- Non-impairment of the validity of a negotiated NDT whose owner was deprived of it by loss,
theft, fraud, accident, mistake, duress or conversion

ART. 1519

- Protection against non-attachment or non-levy

- Instances when Bailee can be compelled to surrender goods

ART. 1520

- Right of a creditor against his debtor who is the owner of a NDT

ART. 1521

- Place, time and manner of delivery

ART. 1522

- Remedies: when quantity is less than that agreed upon; when quantity is more than that
agreed upon; and when quantity is different
- When is there implied acceptance

ART. 1523

- When delivery to carrier is delivery to buyer

- Kinds of delivery to carrier

ART. 1524

- When vendor is not bound to deliver

ART. 1525

- Unpaid Seller

ART. 1526
 - Rights of an Unpaid Seller

ART. 1527

- When Seller has possessory lien

ART. 1528

- Possessory lien after partial delivery

ART. 1529

- When possessory lien is lost

ART. 1530

- Right of Stoppage in Transitu

ART. 1531

- Goods: When in transit and when not

ART. 1532

- Manner of exercising the right of stoppage in transit

- Effects when it is exercised
- To whom notice is given

ART. 1533

- Right of resale: perishable goods and when there is deficiency or excess in the price

ART. 1534

- Right to rescind the transfer of title

- Effect of a replevin suit

ART. 1535

- Effect if Buyer has already sold the goods

ART. 1536

- When Seller is not bound to deliver because Buyer has lost benefit of the term in Art. 1198

ART. 1537

- Seller’s duty to preserve the thing and its accessions and accessories
- Right to the fruits
ART. 1538

- Effect of loss, deterioration or improvement before delivery

ART. 1539

- Sale of Real Estate by the Unit

- Unit price contract

ART. 1540

- When actual area or number is greater

ART. 1541

Arts. 1539 to 1540 applicable to judicial sales

ART. 1542

- Sale for a lump sum; A cuerpo cierto

- Necessity of delivering all the lands included in the boundaries

ART. 1543

- Actions arising from Arts. 1539-1542 must be brought within six months from date of
delivery

ART. 1544

- Double sale
- Rules of preference

SEC. 3. Conditions and warranties

ARTS. 1545 and 1546

- When warranty exists

ART. 1547

- Implied warranties against eviction and against hidden defects

SUB-SEC. 1. Warranty in case of Eviction

ART. 1548

- Eviction through Seller’s fault; Seller’s responsibility

 - Elements of eviction

ART. 1549

- Vendee need not appeal

ART. 1550

- Effect of adverse possession that started before the sale

- When prescriptive period completed after transfer

ART. 1551

- Effect of non-payment of taxes

ART. 1552

- Eviction in case of judicial sales

ART. 1553

- Effect of Seller’s waiver of liability for eviction

ART. 1554

- Effect of Buyer’s waiver of Seller’s liability for eviction

ART. 1555

- Vendee’s rights to: value, income, cost, expenses and damages

ART. 1556

- Partial eviction and Vendee’s remedies

ART. 1557

- Necessity of a final judgement

ART. 1558

- Necessity of summoning the Seller in suit for the eviction of the Buyer

ART. 1559

- Necessity of making the Seller co-defendant of Buyer

ART. 1560

- Rule in case of non-apparent servitude

SUB-SEC. 2. Warranty against Hidden Defects of or Encumbrances upon the Thing Sold

ART. 1561

- Requisite/s to recover due to hidden defects: unfit for use intended

ART. 1562

- Merchantable quality

Art. 1563

- Sale under patent name or trade name

ART. 1564

- Usage of trade

ART. 1565

- Sale by sample

ART. 1566

- Seller’s responsibility for hidden defects even if he is in good faith

ART. 1567

- Vendee’s remedies in cases under Arts. 1561 to 1566

ART. 1568

- Effects of the loss of thing due to hidden defects

ART. 1569

- Effect if cause of the loss was a fortuitous event

ART. 1570

- Applicability to judicial sales

ART. 1571

- 6-month prescriptive period from date of delivery

ART. 1572
 - Sale of 2 or more animals together

ART. 1573

- Applicability to other things

ART. 1574

- Absence of warranty against hidden defects

ART. 1575

- When sale of animals is void

ART. 1576

- Redhibitory defects

ART. 1577

- 40-day prescriptive period from date of delivery

ART. 1578

- If animal dies within 3 days

ART. 1579

- If sale of animal is rescinded

ART. 1580

- Buyer’s remedies when animal has redhibitory defects

ART. 1581

- Sale of large cattle governed by special laws

CHAPTER 5- OBLIGATIONS OF VENDEE

ART. 1582

- Buyer’s principal obligations

ART. 1583

- Delivery by instalments

ART. 1584
 - Buyer’s right to examine deliveries; Exceptions

ART. 1585

- Acceptance of goods

ART. 1586

- Necessity for Vendee to notify Vendor of the breach of promise or warranty

ART. 1587

- Effect if Buyer justifiably refuses to accept delivery

ART. 1588

- Unjustifiable refusal by the Buyer

ART. 1589

- When Buyer has to pay interest for the price

ART. 1590

- When Buyer may suspend payment for the price

ART. 1591

- When Seller may sue for the rescission of the sale

ART. 1592

- Rescission of sale involving real property

ART. 1593

- Rescission of sale involving personal property

CHAPTER 6- ACTIONS FOR BREACH OF CONTRACT OF SALE OF GOODS

ART. 1594

- Governs breach of contract involving goods

ART. 1595

- If Buyer refuses to pay

ART. 1596
 - Remedy of Seller if Buyer refuses to accept and pay

ART. 1597

- When Seller may totally rescind the contract

ART. 1598

- When Seller breached a contract to deliver specific or ascertained goods

ART. 1599

-Remedies if Seller commits breach of warranty

CHAPTER 7- EXTINGUISHMENT OF SALE

ART. 1600

- How sales are extinguished

SEC. 1. Conventional Redemption

ART. 1601

- When conventional redemption or pacto de retro takes place

ART. 1602

- Pacto de retro sale when considered an equitable mortgage

ARTS. 1603 and 1604

- When in doubt, an equitable mortgage is presumed

ART. 1605

- Remedy of reformation of instrument

ART. 1606

- Period within which to redeem

ART. 1607

- Necessity of a judicial order before registration of the consolidation of ownership

ART. 1608
 - Right of Seller a retro to redeem property from third person

ART. 1609

- Buyer subrogated to Seller’s rights and actions

ART. 1610

- When Seller’s creditor can use Seller’s right of redemption

ART. 1611

- When Seller may be required to redeem the whole property although he sold only a part
thereof

ART. 1612

- When property owned in common is sold jointly and in the same contract by the co-owners

ART. 1613

- Buyer cannot be compelled to consent to a partial redemption

ART. 1614

- A co-owner may sell his share separately

ART. 1615

- Rule if Buyer a retro died and left several heirs

ART. 1616

- What Seller must give Buyer when redemption is made

ART. 1617

- Rule with respect to fruits

ART. 1618

- Right of Vendor a retro to recover thing sold free from all charges and mortgages

SEC. 2. Legal Redemption

ART. 1619

- Definition
- Distinguished from pre-emption
ART. 1620

- A co-owner may exercise right of legal redemption

ART. 1621

- An adjacent owner of rural property may exercise right of legal redemption

ART. 1622

- When land involved is urban

ART. 1623

- Period within which to exercise right of legal redemption

CHAPTER 8- ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS

ART. 1624

- When is there a perfected assignment

ART. 1625

- Requisites for the assignment to bind third persons

ART. 1626

- When Debtor pays Creditor before former knows of the assignment

ART. 1627

- Rights included in the assignment of rights

ART. 1628

- Warranties in the assignment of rights

ART. 1629

- Duration of warranty involving Debtor’s solvency

ART. 1630

- Warranty of a person who sells an inheritance without an enumeration of the things

included therein

ART. 1631
 - Sale for a lump sum of whole of certain rights, rents or products

ART. 1632

- Duty of Vendor involving sale of inheritance

ART. 1633

- Duty of Buyer

ART. 1634

- Claim in litigation

ART. 1635

- When legal redemption not allowed

CHAPTER 9- GENERAL PROVISIONS

ART. 1636

- Definition of terms

ART. 1637

- Mortgage law and land registration law involving sale of real property

TITLE VII - BARTER OR EXCHANGE

ART. 1638

- Definition

ART. 1639

- When giver is not the owner of the thing given

ART. 1640

- When there is eviction

ART. 1641

- Applicability of the Sales provisions

 TITLE VIII - LEASE
CHAPTER 1 - GENERAL PROVISIONS
ART. 1642

- Definition
- Kinds

ART. 1643

- Lease of things
- Characteristics
- Distinguished from other agreements/contracts

Art. 1644

- Lease of work/service (LWS)

- LWS vis-à-vis contract for a piece of work

ART. 1645

Rule involving lease of consumable goods

CHAPTER 2- LEASE OF URBAN AND RURAL LANDS

SEC. 1. General Provisions

ART. 1646

- Definitions
- Persons disqualified to be lessees

ART. 1647

- Necessity to secure proper authority when lease is to be recorded

ART. 1648

- Recording of lease involving real property

- Consequences if not recorded

ART. 1649

- Assignment of lease
ART. 1650

- Lessee’s right to sub-lease vis-à-vis assignment

ART. 1651

- Sub-lessee’s liability towards lessor

- Accion directa by lessor

ART. 1652

- Sub-lessee’s liability for rent

- Accion directa by lessor

ART. 1653

- Applicability of warranties on Sales

SEC. 2. Rights and Obligations of Lessor and Lessee

ART. 1654

- Duties of Lessor

ART. 1655

- Effect when the thing leased is totally or partially lost

ART. 1656

- Lessor’s right to start and continue engaging in lessee’s same business or industry

ART. 1657

- Lessee’s obligations

ART. 1658

- When lessee may suspend payment of rent

ART. 1659

- Alternative remedies of aggrieved party in case of non-fulfillment of duties

ART. 1660

- When place is dangerous to life or health

ART. 1661

- Alteration of the form of the lease by the lessor

ART. 1662

- Rule in case of urgent repair

ART. 1663

- Lessee’s duties regarding usurpation and repairs : if lessor fails to comply or if lessor fails to
make urgent repairs

ART. 1664

- 2 kinds of trespass involving the leased property

ART. 1665

- Lessee’s duty to return the thing leased just as he received it

ART. 1666

- Lessee is presumed to have received the thing leased in good condition

ART. 1667

- Lessee responsible for deterioration and loss

ART. 1668

- Lessee responsible for his own acts, members of his household, his guests and visitors

ART. 1669

- Lease made for a determinate time to end on the day fixed without need of demand

ART. 1670

- Implied new lease

- Tacita Reconduccion and its effects

ART. 1671

- If lessor objects to lessee’s continued possession

ART. 1672
 - Effect of implied new leased on sureties and guarantors

ART. 1673

- Causes for judicial ejectment of lessee

ART. 1674

- Writ of Preliminary Mandatory Injunction in ejectment cases

- When may lessor avail of it

ART. 1675

- Exception to Art. 1673

ART. 1676

- When leased land is sold

ART. 1677

- Buyer a retro cannot eject lessee until the end of the redemption period

ART. 1678

- Lessee’s right to useful improvements and ornamental expenses

ART. 1679

- Place and time of payment for rent

SEC. 3. Special Provisions for Leases of Rural Lands

ART. 1680

- Effect of land’s sterility in case of rural lease

- Effect of loss due to a fortuitous event

ART. 1681

- Loss of fruits after separation from stalk, root or trunk

ART. 1682

- Duration of rural lease

ART. 1683

- Use of premises for preparatory labor

ART. 1684

- Land tenancy on shares governed by special laws, laws on partnership, stipulation of parties
and customs of the place

ART. 1685

- Ejectment of tenants

SEC. 4. Lease of Urban Lands

ART. 1686

- When urban lessor is liable for repairs

ART. 1687

- When duration of lease not fixed

ART. 1688

- Duration of leased furniture for the same period as duration of the leased premises