3. In this part, Atty.

Javier was able to discuss the formalities and formation of a contract of sale
and he also tell the difference between option money and earnest money. In forming a contract of
sale, the general rule- contract is valid in any form that it may entered into, but the requisites for
the validity of contract should be present. Those subject into statue of fraud can be form in oral
or written such as the sale of the real property or the interest of it, sale of personal property and
etc. As to the formation of the contract of sale, there is preparation, perfection, and
consummation. When both parties are in preparation stage, this does not mean that it already
created a contract. Preparation is showing the interest to the other party, this means, and that
there can be a unilateral promise to buy and sell- the other party did not accept the offer.
Perfection, this is where the contract of sale started as there is a meeting of minds and both
parties agreed to enter into a contract. The last part of the formation of contract of sale is the
consummation, this is where the seller delivered the thing and the buyer pays for it. In this video,
the difference between the earnest money and option money is mentioned. An option money is
given to give the seller the option of buying a thing, the amount of money in option money is not
included in the total price. In option, there is no sale nor a perfection happen as the other party
just give an offer. The earnest money is given to the seller as proof of sale, unlike option money,
earnest money is included to the total price of the thing.
4. Atty. Javier talks about the sale by the non-owner having a void and voidable title on this part
of the video. The general rule in selling a thing is- the vendor must have a right to transfer
ownership at the time of delivery, this means that to be able to transfer the title of ownership it
should be owned by the seller first. Thus, acquiring a thing to the vendor who is not the owner
nor there is no consent by the owner, or etcetera means the buyer will not get the title. In this
discussion, atty. also provide the exception to the general rule where the buyer will acquire a
good title and some of it are: the owner is estopped or precluded by his conduct, sale by the
registered or apparent owner which according to the registry laws, sale that is sanction either by
the law or by judicial authority and etc. The sale by the non-owner having a void title resulted for
the buyer having a no better title than what the seller have. In case of the seller having a voidable
title and there is a sale between the seller and buyer, the buyer may acquire a good title. This will
happen if the buyer is in good faith, if he pays for the valuable cause or consideration, and lastly,
if the buyer is not aware about the defect in the title of the seller. At the time of the perfection or
the meeting of minds of the both parties, it is valid if the seller did not own the thing at that time.
At the time of consummation the seller should own the thing because he will deliver it to the
buyer.
5. The video discusses about the first two obligations of the vendor which are “transfer
ownership” and “To deliver the thing and its accessories and accessions”. In transferring
ownership, it is transferred upon delivery whether actual or constructive, but payment doesn’t
affect ownership because it goes in finalizing the sale and failure to pay is a breach.
There are exceptions on transferring ownership upon delivery these are;
 A contractual stipulation reserving ownership
 Contracts to sell
 Sales upon acceptance, trial, approval or satisfaction
 Implied reservation.
The second obligation means that the seller is obligated to deliver the goods with its accessories
and accession except when there is a stipulation that delivery will be by installment, and the
thing with its accessories must be delivered in condition in which the sale is perfected.

These are the requisite for a valid delivery:

 Identity – the object itself is delivered
 Integrity – all of the goods must be condition to allow the buyer to use it on its purposes
 It must be intentional.
These are the forms of delivery:
 Actual/Real – the control is physically given to the buyer.
 Constructive – the delivery is by act or signs indicating delivery and there must intent to
give the possession to the buyer.
And there are forms of constructive delivery which are;
 Execution of public instrument
 Traditio symbolica
 Traditio Longa Manu
 Traditio Brevi Manu
 Tradition Constitutum Possesorium
When in come to right, credit and incorporeal thing delivery is called quasi traditio which can be:
 Execution of a public instrument
 Actual placing of the titles to the buyer
 Engage the seller allows the buyer to make use the rights
6. The video focuses on Double Sales, Double Sales happens when the same thing is sold to two
or more different buyers,
The requisites for the rules on double sales to apply is under 1544 of the civil code are the
following:
 Both transactions must be valid sales
 Each sales pertains to the same object
 Each of the buyer must have bought the object from the same seller.
Under 1544, “incase of movable property that is sold to two or more persons the person that has
the better right is the first to take possession of the thing in good faith” and the these are the rules
incase an immovables or real property is sold to two or more person, the first rule is “The first to
register the sale in good faith has the better right”. The first buyer is always in good faith and the
only way to defeat the first buyer is if the second buyer will register his sale in good faith where
he don’t know or receive no notice that any other person has a right or interest to the property
and he must pay full and fair price of the property at the time of the sale or he has noticed the
others claim over the property, but under 1544 there are scenarios where it will not apply:
 If not all the requisites of applying 1544 are presents
 When two contracts of sale are made by different people and one not being the owner
 Where the first sale is over the land which is not yet registered and the second sale is over
the land which is already registered.
7. The video discusses about the remaining obligation of a vendor, Warranty is a statement or
representation by a seller as part of the contract in which he promised to ensure certain facts are
or shall be as he represents. Buyer may also make warranties an example is a promise to pay.
There different kinds of warranty
 Express warranties
 Implied warranties
Implied warranties do not apply in these cases:
 As is where is sale
 Sale of secondhand goods
 Sale by virtue of an authority in fact or an authority in law.
The next obligation of the seller is the right of the buyer to examine the goods before accepting
them in order to determine if they conform to the contract, except when the parties have
stipulated that there is no need to examine or in case of sale which is COD or collect on delivery,
if the right to examine is denied by the seller the buyer may claim rescission.
The next obligation is to entering a contract with a carrier in case he is shipping the goods to the
buyer, if the seller fails to enter a contract with a carrier then in case of loss or damages to the
goods the buyer may decline to treat delivery to carrier as delivery to buyer and the seller will be
liable for damages
The last obligation of the seller is to give notice to the buyer about the necessity to ensure the
goods if it is usual to ensure the goods and if the seller fails he is on risk to bear loss or damages
except when the buyer had all the information he needs to ensure the goods by himself