FOUNDATION UNIVERSITY

COLLEGE OF LAW & JURISPRUDENCE

SYLLABUS LAW 114 SALES

I. GENERAL PROVISIONS
1. Definition
2. Elements: a) Essential b) Natural c) Accidental
3. Characteristics
4. Two Major Type of Contract of Sale:
a) Absolute Sale
b) Conditional Sale
Cases: (Demafelis vs. CA GR 152164 Nov. 23, 2007)
(Sps. Orden vs. Sps. Aurea et al GR 172733 August 20, 2008)
(Onaphil Phil. Commodities vs CA GR 90707 February 1, 1993)
5. Distinguish between Contract of Sale and Contract to Sell
Distinguish between Conditional Sale and Contract to Sell
Distinguish between Emptio sei speratae and Emptio Spei
6. Distinguish between Sale and Dation in payment

II. PRICE
1. Manner of payment
(Sps. Navarra and RRRC Development Corp. vs.Planters Development Bank
and Roberto Gatchalian Realty, Inc GR 172674 July12, 2007)

2. Requisites of Price
3. Gross Inadequacy of Price
(Hulst v. PR Builders GR 156364 September 3, 2007)

III. FORMATION OF CONTRACT OF SALE

1. Preparatory
Policitacion
Option Contract
(JMA House Inc vs Sta Monica Industrial GR 154156 August 31 2006)
Right of First Refusal
(Paranaque Kings vs CA GR 111538 February 26, 1997)
2. Perfection
Auction Sale
(Dizon vs Dizon GR 56 539 Sep 5, 2007)
Earnest Money and Option Money Distinguished
3. Consummation
IV. FORMALITIES OF CONTRACT OF SALE
1. General Rule
2. Statute of Frauds

V. CAPACITY TO BUY OR SELL

1. General Rule
2. Exceptions
3. Sale by Non-owner

VI. NEGOTIABLE DOCUMENT OF TITLE

1. Conditions for Negotiability

2. Persons who may negotiate
3. Rights of Transferee
4. Warranties

VII. OBLIGATIONS OF THE VENDOR

1. Transfer of Ownership
2. Delivery - Kinds of Delivery
Double Sale
3. Conditions and Warranties
Warranty & Condition Distinguished
Warranty against Eviction
Warranty against Hidden Defects
Mirror Doctrine
(Palanca vs. Director of Lands GR 15950 March 9, 1922
(Moles vs. IAC GR73913 January 31, 1981)
(Yap Kim Chuan vs Tiaoqui GR1006 September 18, 1915)
4. Accord Buyer to Examine the Goods

VIII. OBLIGATIONS OF THE VENDEE

1. Acceptance
2. Payment
3. Other Obligations
(Bricktown vs. Amor Tierra GR 112182 December 12, 1994)

IX. Remedies for Breach of contract

1. Remedies of the Seller

(Ocampo vs. CA GR 97442 June 30, 1994)
(Iringan vs. CA GR 129107 September 26, 2001)
2. Enforcement of Remedies of Unpaid Seller
Possessory Lien
Stoppage in-transitu
Right of Resale
 Rescission
Action for the Price and for Damages
Recto Law/Maceda Law
(Olympia Housing vs. Panasiatic GR 140468 January 16, 2003)
2. Remedies of the Buyer

X. Risk Of Loss And Deterioration

1. General Rule
2. Exceptions

XI. Extinguishment
1. Causes of Extinguishment (same as in all other obligations)
2. Conventional Redemption
3. Legal Redemption
4. Remedy of Reformation

OTHER TOPICS
1. Assignment of Credit
2 Barter
3. Bulk Sales Law Act No. 3952
4. Retail Trade Liberalization Act (RA 8762)

Prepared: 06 July 2020