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PERSON ASSIGNED DOCTRINES

Articles 1458 to 1478


1. Dignos v. CA [158 SCRA 375] De Belen
2. Tan v. Benorilao [G.R. No. 153820, 16 October 2009] Barrios Where the seller promises to execute a deed of absolute sale upon the completion by the buyer of the payment of the price, the contract is only a contract to sell.
3. Artates v. Urbi [G.R. No. L- 29421, 30 January 1971] Jazmin Homestead land within the prohibitory period is an illicit per accidens, therefore cannot be an object of sale even if involuntarily done.
4. Heirs of Enrique Zambales v. CA [120 SCRA 897] Obaob The sale of homestead lot within the 5-year prohibitory period is illegal and void. The law does not distinguish between executory and consummated sales
For the classification of contracts, due regard must be paid to their essential clauses. In the contract in the instant case, what was essential, constituting its cause and subject matter, was that the plaintiff was to
furnish the defendant with the beds which the latter might order, at the stipulated price, and that the defendant was to pay this price in the manner agreed upon. These are precisely the essential features of a
contract of purchase and sale. There was the obligation on the part of the plaintiff to supply the beds, and, on that of the defendant, to pay their price. These features exclude the legal conception of an agency or
older to sell whereby the mandatary or agent receives the thing to sell it, and does not pay its price, but delivers to the principal the price he obtains from the sale of the thing to a third person, and if he does not
5. Quiroga v. Parsons [38 Phil 501] Bulaon succeed in selling it, he returns it.
6. Concrete Aggregates Inc. v. CTA [185 SCRA 461] Derequito
7. People’s Homesite & Housing Corp. v. CA [133 SCRA 777] Carrasco The parties may reciprocally demand performance subject to the law governing the form of contracts from the moment the contract of sale is perfected.
8. Toyota Shaw Inc. v. CA [244 SCRA 320] Bugarin The contract of sale is perfected the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price.
Ownership is not transferred by perfection of the contract but by delivery, either actual or constructive. This is true even if the purchase has been made on credit. Payment of the purchase price is not essential
9. Sampaguita Pictures v. Jalwindor Manufacturers Inc. [93 SCRA 420] Santiago, ANNE to the transfer of ownership as long as the property sold has been delivered.

Articles 1479 to 1483 and 1504


A promise to buy and sell a determinate thing for a price
certain is reciprocally demandable.

An accepted unilateral promise to buy or to sell a


determinate thing for a price certain is binding upon the
promissor if the promise is supported by a consideration
distinct from the price.
Which means that the option can still be withdrawn,
even if accepted, if the same is not supported by a
10. Southern Sugar & Mollases v. Atlantic Gulf [97 Phil 247] Angeles consideration
Art 1324 is modified by Art 1479. The former is the general rule while the latter is an exception. If the option is given without a consideration, it is a mere and valid offer of contract of sale, which is not binding
11. Atkins Kroll and Co., Inc. v. CUA HIAN TEK [102 Phil 948] Andal until accepted, abandoning the rule in Southwestern Sugar and Molasses Co.
12. Natino v. IAC [197 SCRA 323] Paderna
In a unilateral promise to sell, where the debtor fails to withdraw the promise before the acceptance by the creditor, the transaction becomes a bilateral contract to sell and to buy, because upon acceptance by
the creditor of the offer to sell by the debtor, there is already a meeting of the minds of the parties as to the thing which is determinate and the price which is certain. In which case, the parties may then
13. Serra v. CA [229 SCRA 60] Santos, CAMIL reciprocally demand performance.
If no contract of sale was actually executed by the parties the loss of the vessel must be borne by its owner and not by a party who only intended to purchase it and who was unable to do so on account of failure
14. Roman v. Grimalt [1 Phil 96] Alonzo on the part of the owner to show proper title to the vessel and thus enable them to draw up the contract of sale.
15. Equatorial Realty Development, Inc. v. Mayfair Theater, Inc. [264 SCRA 483] Santos, SARAH The right of first refusal an integral part of the contract; The consideration is built upon reciprocal obligations
16. Norkis Distributors Inc. v. CA [193 SCRA 694] Bongabong In all forms of delivery, it is necessary that the act of delivery whether constructive or actual, be coupled with the intention of delivering the thing in order to effect a transfer of ownership.

Articles 1484 to 1491


17. Southern Motors Inc v. Moscoso [2 SCRA 168] Abletes The foreclosure proceedings under Article 1484(3) refer to those procedure or methods outlined by Section 14 of the Chattel Mortgage Law
There does not seem to be any doubt that art 1484 of the CC may be applied in relation to a chattel mortgage constituted upon personal property on the installment basis as in the present case precluding the
18. Pascual v. Universal Motors Corp. [61 SCRA 121] Santotome mortgagee to maintain any further action against the debtor for the purpose of recovering the balance of the debt secured, and even adding that any agreement to the contrary shall be null and void.
19. Filinvest Credit Corp. v. CA [178 SCRA 188] Villareal “The remedies provided in Article 1484 are alternative and not cumulative, and therefore, the exercise of one bars the exercise of the others.”
In sales on installments, when a party forecloses the chattel mortgage only on the thing sold, the party is precluded from having a recourse against the additional security. There is also no ground why such
20. Ridad v. Filipinas Investments [120 SCRA 246] Lapid vendors should not be likewise precluded from further foreclosing the additional security put up by the vendee.
Under the law, the delivery of possession of the mortgaged property to the mortgagee, the herein appellee, can only operate to extinguish appellant’s liability if the appellee had actually caused the foreclosure
sale of the mortgaged property when it recovered possession thereof. It is worth noting that it is the fact of foreclosure and actual sale of the mortgaged chattel that bar recovery by the vendor of any balance of
the purchaser’s outstanding obligation not satisfied by the sale (New Civil Code, par. 3, Article 1484).
21. Spouses Dela Cruz v. CA [G.R. No. 94828, September 18, 1992] Mateo
In Filipinas Investment & Finance Corporation v. Ridad, the Court recognized an exception to the rule stated under Article 1484(3) upon which petitioner relies. "Recoverable expenses would, in our view,
22. Leovillo C. Agustin v. CA [G.R. No. 107846, April 18, 1997] Honrales include expenses properly incurred in effecting seizure of the chattel and reasonable attorney's fees in prosecuting the action for replevin."
The prohibition mandated by paragraph 2 of Article 1491 in relation to Article 1409 of the Civil Code does not apply in the instant case where the sale of the property in dispute was made under a special power
insterted in or attached to the real estate mortgage. Act No. 3135, creates and is designed to create an exception to the general rule that a mortgagee or trustee in a mortgage which contains a power of sale on
23. Fiestan v. CA [185 SCRA 751] Jorgio default may not become the purchaser, either directly or through the agency of a third person, at a sale which he himself makes under the power.
When the seller assigns his credit to another person, the latter is likewisebound by the same law. Accordingly, when the assignee forecloses on themortgage, there can be no further recovery of the deficiency,
24. Borbon II v. Servicewide Specialist Inc. [258 SCRA 634] Aurea and the seller-mortgagee is deemed to have renounced any right thereto.

Articles 1493 to 1506 and Maceda Law R.A. 6552


The controlling provision is Article 559 of the Civil Code. It reads thus: 'The possession of movable property acquired in good faith is equivalent to a title. Nevertheless, one who has lost any movable or has been
unlawfully deprived thereof may recover it from the person in possession of the same. If the possessor of a movable lost of which the owner has been unlawfully deprived, has acquired it in good faith at a public
sale, the owner cannot obtain its return without reimbursing the price paid therefor.' Respondent Angelina D. Guevara, having been unlawfully deprived of the diamond ring in question, was entitled to recover
it from petitioner Consuelo S. de Garcia who was found in possession of the same. The only exception the law allows is when there is acquisition in good faith of the possessor at a public sale, in which case the
25. Dizon v. Suntay [47 SCRA 160] Lising owner cannot obtain its return without reimbursing the price.
Ownership in the thing sold shall not pass to the buyer until full payment of the purchase only if there is a stipulation to that effect. Otherwise, the rule is that such ownership shall pass from the vendor to the
26. EDCA Publishing and Distributing Corp. v. Santos [184 SCRA 614] Ydulzura vendee upon the actual or constructive delivery of the thing sold even if the purchase price has not yet been paid.
The failure to make payment in the grace period provided for in the Maceda Law (equivalent to one month for every year of installment paid, for parties who have paid for a minimum of two years of installment) only leaves
the right to a refund of the cash surrender value of the payments on the property equivalent to fifty percent of the total payments made. Such refund will be the operative act to make effective the cancellation of the contract, and
27. Layug v. IAC [167 SCRA 627] Gaerlan the additional formality of a demand by notarial act, would appear to be merely circuitous and consequently superfluous.
Delivery remains an indispensable requisite as our law does not admit transfer of property by mere consent. In order that symbolic delivery may produce the effect of tradition, it is necessary that the vendor
28. Power Commercial & Industrial Corp. v. CA [274 SCRA 597] Lim shall have control over the thing.
29. Addison v. Felix and Tioco [38 Phil 404] Verdan Symbolic delivery by execution of a public instrument is equivalent to actual delivery only when the thing sold is subject to the control of the vendor
The presumption in Article 1498 (mere execution of the deed of sale in a public document is equivalent to the delivery) is destroyed when the delivery is not effected because of a legal impediment; the execution
30. Ten Forty Realty & Development Corp. v. Cruz [G.R. No. 515212] Planillo of a deed of sale is not a conclusive presumption of delivery of the object of the sale.

Articles 1536 to 1544


31. Carbonell vs. Court of Appeals [69 SCRA 99] Santiago, PRINCESS
Where one of two conflicting sales of a piece of land was executed before the land was registered, while the other was an execution sale in favor of the judgment creditor of the owner made after the same
property had been registered,what should determine the issue are the provisions of the last paragraph of Section 35, Rule 39 of the Rules of Court to the effect that, upon the execution and delivery of the final
certificate of sale in favor of the purchaser of land sold in an execution sale, such purchaser “shall be substituted to and acquire all the rights, title, interest and claim of the judgment debtor to the property as
32. Dagupan Trading vs. Macam [14 SCRA 179] Mallorca of the time of the levy
33. David vs. Bandin [149 SCRA 140] Sese The requirement of good faith is relevant only where the subject of the sale is a registered land, and the purchase was made from the registered owner, whose title to land is clean.
34. Olivares vs. Gonzales [159 SCRA 33] Sanchez Equities of the case goes to the buyers of the second sale who registered the sale that the first sale with pacto de recto which was unregistered.
One who purchases a real estate with knowledge of a defect or lack of title in his vendor can not claim that he has acquired title thereto in good faith, as against the true owner of the land or of an interest
therein, and the same rule must be applied to one who has knowledge of facts which should have put him upon such inquiry and invetigation as might be necesarry to acquaint him with the defects in the title of
35. Caram vs Laureta [103 SCRA 7] Rosario his vendor.
36. Cruz vs. Cabana [129 SCRA 656] De Belen
When petitioners annotated their adverse claim in the Register of Deeds of Quezon City they thereby established a superior right to the property in question as against respondent Viernes. Effectively, the
37. Valdez vs. Court of Appeals [194 SCRA 360] Barrios annotation of adverse claim was notice to the whole world including herein respondents.
The general rule is that if the property sold is registered land, the purchaser in good faith has a right to rely on the certificate of title and is under no duty to go behind it to look for flaws. This notwithstanding,
38. Nuguid vs. Court of Appeals [171 SCRA 213] Jazmin the petitioners in this case did not rely solely upon the certificate of title. They personally inspected the subject property.
Article 1544 does not apply to land registered under Act 496 (Land Registration Act). The purchaser of unregistered land at a sheriff’s execution sale only steps into the shoes of the judgment debtor and merely
39. Radiowealth Finance vs. Palileo [197 SCRA 245] Obaob acquires the latter’s interest in the property sold as of the time the property was levied upon.
Pursuant to Article 1347 of the Civil Code, "(n)o contract may be entered into upon a future inheritance except in cases expressly authorized by law." Consequently, said contract made in 1962 conveying one
40. Tanedo vs. Court of Appeals [G.R. No. 104482, January 22, 1996] Bulaon hectare of his future inheritance is not valid and cannot be the source of any right nor the creator of any obligation between the parties.
41. Spouses Occena vs Esponilla [G.R. No. 156973, June 4, 2004] Derequito

Articles 1545 to 1581


It is generally held that in the sale of a designated and specific article sold as secondhand, there is no implied warranty as to its quality or fitness for the purpose intended, at least where it is subject to
inspection at the time of the sale. On the other hand, there is also authority to the effect that in a sale of a secondhand articles there may be, under some circumstances, an implied warranty of fitness for the
42. Moles vs. IAC [169 SCRA 777] Carrasco ordinary purpose of the article sold or for the particular purpose of the buyer.
The remedy against violations of the warranty against hidden defects is either to withdraw from the contract (redhibitory action) or to demand a proportionate reduction of the price (accion quanti minoris),
43. Engineering and Machinery Corp. vs. Court of Appeals [G.R. No. 52267] Bugarin with damages in either case.
The Supreme Court has distinguished between a condition imposed on the perfection of a contract and a condition imposed merely on the performance of an obligation. While failure to comply with the first
condition results in the failure of a contract, failure to comply with the second merely gives the other party the option to either refuse to proceed with the sale or to waive the condition. This principle is evident
44. Catungal, et. al. vs. Rodriguez [G.R. No. 146839, March 23, 2011] Santiago, ANNE in Article 1545 of the Civil Code on sales,
Dacion en pago as a special mode of payment, the debtor offers another thing to the creditor who accepts it as equivalent of payment of an outstanding debt.

The undertaking really partakes in one sense of the nature of sale – the creditor is really buying the thing or property of the debtor, payment for which is to be charged against the debtor’s debt.

The assignment of credit, which is in the nature of a sale of personal property, produced the effects of a dation in payment, which may extinguish the obligation. However, as in any other contract of sale, the
vendor or assignor is bound by certain warranties.

Paragraph 1 of Article 1628 of the Civil Code provides: The vendor in good faith shall be responsible for the existence and legality of the credit at the time of the sale, unless it should have been sold as doubtful;
45. Sonny Lo vs. Court of Appeals [G.R. No. 149420, October 8, 2003] Angeles but not for the solvency of the debtor, unless it has been so expressly stipulated or unless the insolvency was prior to the sale and of common knowledge.

Articles 1600 to 1618


The true intention of the parties being that the transaction shall secure the payment of the debt, it shall be presumed to be an equitable mortgage; existence of one circumstance in Art 1602 is enough to create
the presumption.
46. Ramos vs. Court of Appeals [180 SCRA 635] Andal
47. De Leon vs. Salvador [36 SCRA 567] Paderna
In a sale with a right of redemption the ownership over the thing sold is transferred to the vendee upon execution of the contract subject only to the resolutory condition that the venor may exercise his right of
48. Flores vs. So [162 SCRA 117] Santos, CAMIL repurchase within the agreed period. In the case, the trial court erred in allowing So to redeem the land because Gallano was no longer in possession of the same.
As a general rule, written notice of sale is mandatory; without it, the period of 30 days within which the right of legal redemption may be exercised, does not start. However, as an exception, the written notice
49. Alonzo vs. IAC [150 SCRA 259] Alonzo may be dispensed with when the other co-owners have actual knowledge of the sale, given that the redemptioners and the purchaser lived on the same lot.
Existence of one of the circumstances under Article 1602 is enough to purport a pacto de retro sale to be one of equitable mortgage. In the case at bar, the vendor remained in possession of the property as a
beneicial owner before, during and after the alleged sale;there was extension of the period of redemption (in fact, this was done twice) and that the vendors were in dire need of money which led them to
50. Lao vs. Court of Appeals [275 SCRA 237] Santos, SARAH mortgage their property. Given such circumstances, the contract held to be one equitable mortgage.
A stipulation odious pactum commissorium which enables the mortgagee to acquire ownership of the mortgaged properties without need of foreclosure, is a nullity, being contrary to the provisions of article
51. Lanuza vs. De Leon [20 SCRA 269] Bongabong 2088 of the Civil Code.
In practically all of the so-called contracts of sale with right of repurchase, the real intention of the parties is that the pretended purchase price is money loaned and in order to secure the payment of the loan, a
52. Capulong vs. Court of Appeals [130 SCRA 245] Abletes contract purporting to be a sale with pacto de retro is drawn up.
In a contract of sale with pacto de retro, the vendee has a right to the immediate possession of the property sold, unless otherwise agreed upon. It is basic that in a pacto de retro sale, the title and ownership of
53. Solid Homes, Inc. vs. Court of Appeals [G.R. No. 117501, July 8, 1997] Santotome the property sold are immediately vested in the vendee a retro, subject only to the resolutory condition of repurchase by the vendor a retro within the stipulated period
Article 1621 of the Civil Code expresses that the right of redemption it grants to an adjoining owner of the property conveyed may be defeated if it can be shown that the buyer or grantee does not own any other
54. Primary Structures Corp. vs. Valencia [G.R. No. 150060, August 19, 2003] Villareal rural land.
Article 1623 does not prescribe a particular form of notice, nor any distinctive method for notifying the redemptioner thus, as long as the redemptioner was notified in writing of the sale and the particulars
55. Ectuban vs. Court of Appeals [148 SCRA 507] Lapid thereof, the redemption period starts to run.

Additional Cases for Lease


The Court agrees with the respondent court that it was not necessary to secure the approval by the probate court of the Contract of Lease because it did not involve an alienation of real property of the estate
nor did the term of the lease exceed one year so as to make it fall under Article 1878(8) of the Civil Code. Only if Paragraph 20 of the Contract of Lease was activated and the said property was intended to be
sold would it be required of the administratrix to secure the approval of the probate court pursuant to Rule 89 of the Rules of Court.
56. Guzman, Bocaling and Co. vs. Bonnevie [206 SCRA 668]
57. Yek Seng Co vs. Court of Appeals [205 SCRA 305]
The Court ruled that the acceptance by private respondents (lessor) of the petitioners-lessees' back rentals did not constitute a waiver or abandonment of their cause of action for ejectment against the latter. As
provided in BP 25, arrears in payment of rent for three (3) months at any one time, constitutes a valid ground for judicial ejectement.
58. Clutrario vs. Court of Appeals [216 SCRA 341]
59. Yap vs. Cruz [208 SCRA 692]
Since the lease agreement in question is for a definite period it follows that petitioner has a right to judicially eject private respondent from the premises as an exception to the general rule provided for in
Section 4 of P.D. No. 20 which provides as follows: "Except when the lease is for a definite period, the provisions of paragraph (1) of Article 1673 of the Civil Code of the Philippines insofar as they refer to
dwelling unit or land on which another's dwelling is located shall be suspended until otherwise provided; but other provisions of the Civil Code and the Rules of Court of the Philippines on lease contracts
insofar as they are not in conflict with the provisions of this Act, shall apply."
60. United Realty Corporation vs. Court of Appeals [183 SCRA 725]
The issue is whether the lessee of a residential property covered by the Rent Control Law can be ejected on the basis alone of the expiration of the verbal lease contract under which rentals are paid monthly. We
resolved this issue in the affirmative in the case of Acab vs. Court of Appeals, G.R. No. 112285, February 21, 1995. Section 6 of Batas Pambansa Blg. 877, which is exactly the same as Section 6 of Batas
Pambansa Blg. 25 does not suspend the effects of Article 1687 of the New Civil Code. Thus, lease agreements with no specified period, but in which rentals are paid monthly, are considered to be on a month-to-
month basis. . .. They are for a definite period and expire after the last day of any given thirty-day period, upon proper demand and notice by the lessor to vacate. . .. Where the verbal lease agreement entered
into has been validly terminated, there is sufficient cause for ejectment under Section 5(f) of Batas Pambansa Blg. 877.|||
61. Legar MGNT and Realty Corp. vs. Court of Appeals [G.R. No 117423, January 24, 1996]
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