Sales

[Definition – Rights & Obligations of the Vendor1]1A

[Follow the Outline]

Part ONE
Modified True or False. Consider the statement true only when it is absolutely true.
Explain ALL your answers.

Part TWO
Multiple Choice. Choose the best answer.

Part THREE
Give direct and concise but complete answers.
Cite authorities, if any.

1. Merle offered to sell her automobile to Violy for P60,000.00. After inspecting the automobile,
Violy offered to buy it for P50,000.00. This offer was accepted by Merle. The next day, Merle
offered to deliver the automobile, but Violy being short of funds, secured postponement of the
delivery, promising to pay the price “upon arrival of the steamer, Helena”. The steamer however
never arrived because it was wrecked by a typhoon and sank somewhere off the Coast of Samar.

1. Is there a perfected contract in this case? Why?

2. Is the promise to pay made by Violy conditional or with a term? Why?
3. Can Merle compel Violy to pay the purchase price and to accept the automobile? Why?

3. State the basic difference (only in their legal effects) –

(a) Between a contract to sell, on the one hand, and a contract of sale, on the other;
(b) Between a conditional sale, on the one hand, and an absolute sale, on the other hand.

5. Nante, a registered owner of a parcel of land in Quezon City, sold the property to Monica under a
deed of sale which reads as follows:

“That for and in consideration of the sum of P500,000.00, value

to be paid and delivered to me, and receipt of which shall be
acknowledged by me to the full satisfaction of Monica, referred to as
Vendee, I hereby sell, transfer, cede, convey, and assign, as by these
presents, I do have sold, transferred, ceded, conveyed and assigned a
parcel of land covered by TCT No. 2468 in favor of the Vendee.”

After delivery of the initial payment of P100,000.00, Monica immediately took possession of the
property. Five (5) months after, Monica failed to pay the remaining balance of the purchase price.
Nante filed an action for the recovery of possession of the property. Nante alleged that the
agreement was one to sell, which was not consummated as the full contract price was not paid. Is
the contention of Nante tenable? Why?
7. In 1972, Luciano de la Cruz sold to Chua Chung Chun, a Chinese citizen, a parcel of land in
Binondo. Chua died in 1990, leaving behind his wife and three children, one of whom, Julian, is a
naturalized Filipino citizen. Six years after Chua’s death, the heirs executed an extrajudicial
settlement of estate, and the parcel of land was allocated to Julian. In 2007, Luciano filed suit to
recover the land he sold to Chua, alleging that the sale was void because it contravened the
Constitution which prohibits the sale of private lands to aliens. Julian moved to dismiss the suit
on grounds of pari delicto, laches and acquisitive prescription. Decide the case with reasons.

9. “X” came across an advertisement in the “Manila Daily Bulletin” about the rush sale of three
slightly used TOYOTA cars, Model 1989 for only P200.000 each. Finding the price to be very
cheap and in order to be sure that he gets one unit ahead of the others, “X” immediately phoned
the advertises “Y” and place an order for one car. “Y” accepted the order and promised to deliver
the order unit on July 15, 1989. On the said date, however, “Y” did not deliver the unit. “X”
brings an action to compel “Y” to deliver the unit. Will such action prosper? Give your reasons.

11. Rod, the owner of an FX taxi, found in his vehicle an envelope containing TCT No. 65432 over a
lot registered in Cesar’s name. Posing as Cesar, Rod forged Cesar’s signature on a Deed of Sale
in Rod’s favor. Rod registered the said document with the Register of Deeds, and obtained a new
title in his name. After a year, he sold the lot to Don, a buyer in good faith and for value, who
also registered lot in his name.

a. Did Rod acquire title to the land? Explain.

b. Discuss the rights of Don, if any, over the property.

13. Mahinhin lost her diamond ring when the bus she was riding on was held up by a band of
brigands who divested the passengers of all their money and valuables. The ring found its way to
the Pasanglaan pawnshop, where one of the robbers had pawned it. The pawnshop, in due time,
foreclosed the pledge and sold the ring at public auction to Mayaman, the highest bidder.

Three years after the loss, Mahinhin was able to trace the ring to Mayaman and demanded that the
latter give the ring back to her. Mayaman refused, saying that he had acquired the ring in good
faith.

Who was the better right to the ring? Explain.

15. If the same thing should have been sold to different vendees, to whom shall the ownership be
transferred?
17. Knowing that the car had a hidden crack in the engine, X sold it to Y without informing
the latter about it. In any event, the deed of sale expressly stipulated that X was not liable
for hidden defects. Does Y have the right to demand from X a reimbursement of what he
spent to repair the engine plus damages?