MODULE Flexible Learning A.Y.

2020-2021
LAW ON SALES STUDY GUIDE

1 Course instructor: Atty. Rey-An N. Trinidad, J.D.

Contact details: | Email: r.trinidad@usls.edu.ph| Phone: +63 908 883 4292, (034) 707-3400
Consultation schedule: MWF 5:30 - 6:30 PM
3 hours
NATURE AND FORM OF THE CONTRACT OF SALES

(Articles 1458-1488)

Sale is a contract where one party (seller or vendor) obligates himself to transfer the
ownership of and to deliver a determinate thing, while the other party (buyer or vendee)
obligates himself to pay for said thing a price certain in money or its equivalent (NCC, Art.
1458).

The primary consideration in determining the true nature of a contract is the intention of
the parties. If the words of a contract appear to contravene the evident intention of the parties,
the latter shall prevail. Such intention is determined not only from the express terms of the
agreement, but also from the contemporaneous and subsequent acts of the parties (Heirs of
Dela Rosa v. Tongbacal, et. al., G.R. No. 179205, July 30, 2014).

But before we go any deeper into the technicalities of the law on sales, let us first
discuss and learn the nature and form of the contract of sales in this Module.

Learning Outcomes

At the end of this module, you must:

1. Know what is the contract of sale, its characteristics and essential requisites.
2. Distinguish sale from other contracts.
3. Ascertain the rules governing auction sales.

4. Differentiate earnest and option money.

5. Determine the remedies of vendor in sale of personal property in installments and their nature

Tell me about your most memorable sale transaction/s experience.

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 1. Distinguish earnest money from option money. (10 pts)

2. Seller sold to Buyer certain goods. At the time of sale,

Seller is not the owner of the goods. May there be a valid
sale? Why? (10 pts)

3. Under the Statute of Frauds, what contract of sale must be

in writing to be enforceable by court action? (10 pts)

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 TITLE VI
SALES

CHAPTER 1
Nature and Form of the Contract

Article 1458. By the contract of sale one of the contracting parties

obligates himself to transfer the ownership and to deliver a determinate
thing, and the other to pay therefor a price certain in money or its
equivalent.

A contract of sale may be absolute or conditional. (1445a)

Article 1459. The thing must be licit and the vendor must have a right to
transfer the ownership thereof at the time it is delivered. (n)

Article 1460. A thing is determinate when it is particularly designated or

physical segregated from all others of the same class.
The requisite that a thing be determinate is satisfied if at the time the
contract is entered into, the thing is capable of being made determinate
without the necessity of a new or further agreement between the parties.
(n)

ELEMENTS OF A CONTRACT OF SALE

1. Essential elements – for validity:

a. Consent – meeting of the minds to transfer ownership in exchange for

the price;
b. Determinate subject matter – determinate thing which is the object of
the contract; and

c. Consideration – price certain in money or its equivalent.

2. Natural elements – those which are inherent in the contract, and which in
the absence of any contrary provision, are deemed to exist in the contract.

Examples:

a. Warranty against eviction; and

b. Warranty against hidden defects.

3. Accidental elements – dependent on parties’ stipulations;

Examples:

a. Conditions;
b. Interest;
c. Time & Place of payment; and
d. Penalty.

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Effect of absence of any of the essential elements:

The contract of sale is void.

Absent proof of the concurrence of all the essential elements of a contract of

sale, the giving of earnest money cannot establish the existence of a perfected
contract of sale (Manila Metal Container Corp. v. PNB, G.R. No. 166862,
December 20, 2006).

STAGES OF A CONTRACT OF SALE

1. Negotiation – begins from the time the prospective contracting parties

manifest their interest in the contract and ends at the moment of agreement of
the parties;

2. Perfection or birth – takes place when the parties agree upon the essential
elements of the contract; and

3. Consummation – occurs when the parties fulfill or perform the terms agreed
upon in the contract culminating in the extinguishment thereof (Swedish Match
vs. CA, G.R. No. 128120, October 20, 2004).

CHARACTERISTICS OF A CONTRACT OF SALE

1. Consensual – A sale is perfected by mere consent, manifested by the

meeting of the minds as to the offer and acceptance on the subject matter,
price and terms of payment.

NOTE: Delivery of the thing bought or payment of the price is not necessary for
the protection of the contract; and failure of the vendee to pay the price after
the execution of the contract does not make the sale null and void for lack of
consideration but results at most in default on the part of the vendee, for which
the vendor may exercise his legal remedies.

2. Bilateral – The seller will deliver and transfer a determinate thing to the
buyer and the latter will pay an ascertained price (or its equivalent).

3. GR: Commutative – The thing sold is considered the equivalent of the price
paid and the price paid is the equivalent of the thing sold.

XPN: Aleatory – The consideration is not equivalent of what has been

received in the case of purchase of a lotto ticket. If the ticket wins, the prize is
much more than the price of the ticket.

4. Principal – Its existence does not depend upon the existence and validity of
another contract.

5. Onerous – The thing sold is conveyed in consideration of the purchase

price, and vice versa.

6. Nominate – It has a specific name given by law.

NATURE AND FORM OF CONTRACT

The contract of sale is perfected at the moment there is a meeting of minds

upon the thing which is the object of the contract and upon the price.

From that moment, parties may reciprocally demand performance, subject to

the provisions of the law governing the forms of contracts.

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Formal requirement for the validity of a contract of sale

GR: A contract of sale may be made in writing, or by word of mouth, or partly in

writing and partly by word of mouth, or may be inferred from the conduct of the
parties (NCC, Art. 1483). Contracts shall be obligatory, in whatever form they
have been entered into, provided all the essential requisites for their validity are
present.

XPNs:

a) If the law requires a document or other special form, the contracting parties
may compel each other to observe that form.

b) Under Statute of Frauds, the following contracts must be in writing;

otherwise, they shall be unenforceable:

1. Sale of personal property at a price not less than P500;

2. Sale of a real property or an interest therein;
3. Sale of property not to be performed within a year from the date
thereof; or
4. When an applicable statute requires that the contract of sale be in a
certain form [NCC, Art. 1403(2)].

c) Sale of large cattle which requires that the same be recorded with the city/
municipal treasurer and that a certificate of transfer be issued. Otherwise, the
sale is not valid (NCC, Art. 1581).

NOTE: The contract of sale of REAL PROPERTIES even if not complete in

form, so long as the essential requisites of consent of the contracting parties,
object, and cause of the obligation concur and they were clearly established to
be present, is valid and effective between the parties.

Under Art. 1357 of the NCC, its enforceability is recognized as each contracting
party is granted the right to compel the other to execute the proper public
instrument so that the valid contract of sale of registered land can be truly
registered and can bind third persons.

Instances where the Statute of Frauds is not essential for the

enforceability of a contract of sale

1. When there is a note or memorandum in writing and subscribed to by the

party or his agent (contains essential terms of the contract);

2. When there has been partial performance/execution (seller delivers with the
intent to transfer title/receives price);

3. When there has been failure to object to presentation of evidence aliunde as

to the existence of a contract without being in writing and which is covered by
the Statute of Frauds;

4. When sales are effected through electronic commerce (Villanueva, 2014).

NOTE: Rules on forms, and of validity and enforceability of contracts of sale,

are strictly kept within the contractual relationship of the seller and buyer
pursuant to the characteristic of relativity of every contract, and do not
necessarily apply to third parties whose rights may be affected by the terms of

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a sale.

KINDS OF CONTRACT OF SALE

As to:
1. Nature of the subject matter:
a. Sale of real property; and
b. Sale of personal property.

2. Value of the things exchanged:

a. Commutative sale; and
b. Aleatory sale.

3. Tangibility of the object:

a. Sale of property (tangible or corporeal);
NOTE: A tangible object is also called chose in possession

b. Sale of a right (assignment of a right, or a credit or other intangibles such as

copyright, trademark, or good will);
NOTE: An intangible object is a chose in action.

4. Validity or defect of the transaction:

a. Valid;
b. Rescissible;
c. Voidable;
d. Unenforceable; and e. Void.

5. Legality of the object:

a. Licit object; and
b. Illicit object.

6. Presence or absence of conditions:

a. Absolute; and
b. Conditional.

7. Wholesale or retail:
a. Wholesale; or b. Retail.

8. Proximate inducement for the sale:

a. Sale by description;
b. Sale by sample; and
c. Sale by description and sample.

9. When the price is tendered:

a. Cash sale; and
b. Sale on installment plan.

Article 1461. Things having a potential existence may be the object of the
contract of sale.

The efficacy of the sale of a mere hope or expectancy is deemed subject to

the condition that the thing will come into existence.

The sale of a vain hope or expectancy is void. (n)

Example:

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 1. S binds himself to sell for a specified price to B a parcel of land if he
wins a case for recovery of said land pending in the Supreme Court.

Here, the obligation of S to sell will arise, if the “expected thing”, the land,
will come into existence, i.e., if he wins the case.

Before a decision is rendered, there is only “the mere hope or expectancy”

that the thing will come into existence.

2. B buys a sweepstakes ticket in the hope of winning a prize. Here, the

object of the contract is the hope itself. The sale is valid even if B does not win a
prize because it is not subject to the condition that the hope will be fulfilled.

Article 1462. The goods which form the subject of a contract of sale may
be either existing goods, owned or possessed by the seller, or goods to be
manufactured, raised, or acquired by the seller after the perfection of the
contract of sale, in this Title called "future goods."

There may be a contract of sale of goods, whose acquisition by the seller

depends upon a contingency which may or may not happen. (n)

Goods which may be the object of sale.

1. Existing goods or goods owned or possessed by the seller; or

2. Future goods, or goods to be manufactured (like the sale of milk bottles to be

manufactured with the name of the buyer pressed in the glass), raised (like the
sale of the future harvest of palay from a ricefield), or acquired (like the sale of
a definite parcel of land the seller expects to buy).

SALE OF FUTURE GOODS

A sale of future goods even though the contract is in the form of a present sale, is
valid only as an executory contract to be fulfilled by the acquisition and delivery
of the goods specified.

In other words, "Property or goods which, at the time of the sale, are not owned
by the seller, but which are thereafter to be acquired by him, cannot be the
subject of an executed sale, but may be the subject of a contract for the future
sale and delivery thereof, and it has been held that even though the contract is in
the form of a present sale it will not pass the title, after the goods have been
acquired, until the seller has done some act appropriating them to the contract.
Such a contract for the future sale and delivery of goods, which the seller has not
in possession but which he intends to acquire by producing, manufacturing, or
purchasing before the day of delivery, is valid as an executory contract to be
fulfilled by acquiring and delivering the goods specified in the contract, even
though the acquisition of the goods by the seller depends upon a contingency
which may or may not happen.”

Article 1463. The sole owner of a thing may sell an undivided interest
therein. (n)

Article 1464. In the case of fungible goods, there may be a sale of an

undivided share of a specific mass, though the seller purports to sell and
the buyer to buy a definite number, weight or measure of the goods in the
mass, and though the number, weight or measure of the goods in the

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mass, and though the number, weight or measure of the goods in the mass
is undetermined. By such a sale the buyer becomes owner in common of
such a share of the mass as the number, weight or measure bought bears
to the number, weight or measure of the mass. If the mass contains less
than the number, weight or measure bought, the buyer becomes the owner
of the whole mass and the seller is bound to make good the deficiency from
goods of the same kind and quality, unless a contrary intent appears. (n)

Sale of an undivided share of a specific mass.

Fungible goods - goods of which unit is, from its nature or by mercantile
usage, treated as the equivalent of any other unit. (i.e. grain, oil, wine,
gasoline, etc.)

Example:

S owns 1,000 cavans of palay stored in his warehouse. If S sells to B

250 cavans of such palay which cavans are not segregated from the whole
mass, B becomes a co-owner of the said mass to the extent of1/4 thereof
while S, to the extent of 3/4. If the warehouse happens to contain only 200
cavans, S must deliver the whole 200 cavans and supply the deficiency of
50 cavans of palay of the same kind and quality in favor of B.

In the same example, the number of cavans in the warehouse may

be unknown or undetermined and S may sell only 1/4 share of the
contents. The legal effect of such a sale is to make B a co-owner in that
proportion. It is obvious that in such case, the obligation of the seller “to
make good the deficiency” will not arise.

Article 1465. Things subject to a resolutory condition may be the object of

the contract of sale. (n)

Resolutory condition - is an uncertain event upon the happening of

which, the obligation (right) subject to it is extinguished. Hence, the right
acquired in virtue of the obligation is also extinguished.

Article 1466. In construing a contract containing provisions characteristic

of both the contract of sale and of the contract of agency to sell, the
essential clauses of the whole instrument shall be considered. (n)

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Article 1467. A contract for the delivery at a certain price of an article which
the vendor in the ordinary course of his business manufactures or procures
for the general market, whether the same is on hand at the time or not, is a
contract of sale, but if the goods are to be manufactured specially for the
customer and upon his special order, and not for the general market, it is a
contract for a piece of work. (n)

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Article 1468. If the consideration of the contract consists partly in money,
and partly in another thing, the transaction shall be characterized by the
manifest intention of the parties. If such intention does not clearly appear, it
shall be considered a barter if the value of the thing given as a part of the
consideration exceeds the amount of the money or its equivalent;
otherwise, it is a sale. (1446a)

Article 1469. In order that the price may be considered certain, it shall be
sufficient that it be so with reference to another thing certain, or that the
determination thereof be left to the judgment of a special person or
persons.

Should such person or persons be unable or unwilling to fix it, the contract
shall be inefficacious, unless the parties subsequently agree upon the
price.

If the third person or persons acted in bad faith or by mistake, the courts
may fix the price.

Where such third person or persons are prevented from fixing the price or
terms by fault of the seller or the buyer, the party not in fault may have such
remedies against the party in fault as are allowed the seller or the buyer, as
the case may be. (1447a)

Article 1470. Gross inadequacy of price does not affect a contract of sale,
except as it may indicate a defect in the consent, or that the parties really
intended a donation or some other act or contract. (n)

Article 1471. If the price is simulated, the sale is void, but the act may be
shown to have been in reality a donation, or some other act or contract. (n)

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Article 1472. The price of securities, grain, liquids, and other things shall
also be considered certain, when the price fixed is that which the thing sold
would have on a definite day, or in a particular exchange or market, or
when an amount is fixed above or below the price on such day, or in such
exchange or market, provided said amount be certain. (1448)

Article 1473. The fixing of the price can never be left to the discretion of
one of the contracting parties. However, if the price fixed by one of the
parties is accepted by the other, the sale is perfected. (1449a)

Article 1474. Where the price cannot be determined in accordance with the
preceding articles, or in any other manner, the contract is inefficacious.
However, if the thing or any part thereof has been delivered to and
appropriated by the buyer he must pay a reasonable price therefor. What is
a reasonable price is a question of fact dependent on the circumstances of
each particular case. (n)

Article 1475. The contract of sale is perfected at the moment there is a

meeting of minds upon the thing which is the object of the contract and
upon the price.

From that moment, the parties may reciprocally demand performance,

subject to the provisions of the law governing the form of contracts. (1450a)

Article 1476. In the case of a sale by auction:

(1) Where goods are put up for sale by auction in lots, each lot is the
subject of a separate contract of sale.

(2) A sale by auction is perfected when the auctioneer announces its

perfection by the fall of the hammer, or in other customary manner. Until
such announcement is made, any bidder may retract his bid; and the
auctioneer may withdraw the goods from the sale unless the auction has
been announced to be without reserve.

(3) A right to bid may be reserved expressly by or on behalf of the seller,

unless otherwise provided by law or by stipulation.

(4) Where notice has not been given that a sale by auction is subject to a
right to bid on behalf of the seller, it shall not be lawful for the seller to bid
himself or to employ or induce any person to bid at such sale on his behalf
or for the auctioneer, to employ or induce any person to bid at such sale on
behalf of the seller or knowingly to take any bid from the seller or any
person employed by him. Any sale contravening this rule may be treated as
fraudulent by the buyer. (n)

Article 1477. The ownership of the thing sold shall be transferred to the
vendee upon the actual or constructive delivery thereof. (n)

Article 1478. The parties may stipulate that ownership in the thing shall not
pass to the purchaser until he has fully paid the price. (n)

Article 1479. A promise to buy and sell a determinate thing for a price
certain is reciprocally demandable.

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An accepted unilateral promise to buy or to sell a determinate thing for a
price certain is binding upon the promisor if the promise is supported by a
consideration distinct from the price. (1451a)

POLICITACION - A unilateral promise of offer to sell or to buy a thing w/c is not

accepted creates no juridical effect or legal bond.

Option – a contractual privilege existing in one person for w/c he has paid a
consideration w/c gives him the right to buy/sell from/to another person, if he
chooses, at any time w/in the agreed period at a fixed price, or under, or in
compliance w/ certain terms & conditions.

Nature of Option Contract:

1.Preparatory contract separate & distinct from the main/principal contract.
2.Gives one party to the right to decide whether or not to enter into principal
contract, while it binds the other: a) not to enter into the principal contract w/
any other person during the agreed time; & b) to enter into the principal
contract w/ the party to whom the option was granted if the latter should
decide to use the option w/in the agreed period.
3.It imposes no binding obligation on the person holding the option aside from
the consideration for the offer.
4.Must be supported by a consideration distinct from the price (in order to bind
the promissor the obligations stated in No.2), else it is void.
(read: Atkins v Cua Hian Tek, Sanchez v Rigos, Sps. Trinidad v IAC)
5.Consideration need not be money or actual cash. It must be something of
value though. (read: Serra v CA & RCBC)

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Article 1480. Any injury to or benefit from the thing sold, after the contract
has been perfected, from the moment of the perfection of the contract to
the time of delivery, shall be governed by articles 1163 to 1165, and 1262.
This rule shall apply to the sale of fungible things, made independently and
for a single price, or without consideration of their weight, number, or
measure.

Should fungible things be sold for a price fixed according to weight,

number, or measure, the risk shall not be imputed to the vendee until they
have been weighed, counted, or measured and delivered, unless the latter
has incurred in delay. (1452a)

RISK OF LOSS OR DETERIORATION

Four (4) rules may be given regarding risk of loss or deterioration:

1.) If the thing is lost before perfection, the seller bears the loss. (ˆRes perit
domino”)

2.) If the thing is lost at the time of perfection, the contract is void or inexistent.
The legal effect is the same as when the object is lost before the perfection of the
contract of sale.

3.) If the thing is lost after the perfection but before its delivery, that is, even
before the ownership is transferred to the buyer, the risk of loss is shifted to the
buyer as an exception to the rule of res perit domino.

4.) If the thing is lost after delivery, the buyer bears the risk of loss following the
principle of res perit domino.

Article 1481. In the contract of sale of goods by description or by sample,

the contract may be rescinded if the bulk of the goods delivered do not
correspond with the description or the sample, and if the contract be by
sample as well as description, it is not sufficient that the bulk of goods
correspond with the sample if they do not also correspond with the
description.

The buyer shall have a reasonable opportunity of comparing the bulk with
the description or the sample. (n)

Sale by description – occurs where a seller sells things as being of a particular

kind, the buyer not knowing whether the seller’s representations are true or false,
but relying on them as true

Sale by sample – to constitute a sale by sample, it must appear that the parties
contracted solely w/ reference to the sample, w/ the understanding that the bulk
was like it. ‘Bulk of goods’ in this art = goods to be actually sold

Article 1482. Whenever earnest money is given in a contract of sale, it

shall be considered as part of the price and as proof of the perfection of the
contract. (1454a)

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Earnest money – something of value given by the buyer to the seller to show
that the buyer is really in earnest, & to bind the bargain.

Earnest money forms part of the consideration ONLY IF the sale is PERFECTED
& the sale is CONSUMMATED upon full payment of the purchase price. Earnest
money constitutes an advance or down payment & must therefore be deducted
from the total price.

NOTE: Option money may become earnest money if the parties so agree. Or it
may actually be in the nature of earnest money when considered w/ the rest of
the contract.

Article 1483. Subject to the provisions of the Statute of Frauds and of any
other applicable statute, a contract of sale may be made in writing, or by
word of mouth, or partly in writing and partly by word of mouth, or may be
inferred from the conduct of the parties. (n)

General rule: a contract of sale is binding regardless of its form.

Exception: when the law requires a certain form for its validity or enforceability
such as those falling under the Statute of Frauds. (Read 1356-58 & 1403) In
case the contract of sale is covered by the SoF, it should be in writing otherwise
they shall be unenforceable. (Remember, unenforceable ≠ void)

Registration of a public instrument in the registry of deeds is not indispensible as

regards the contracting parties. However, doing so would bind 3rd parties to the
contract & protect the buyer against claims of 3rd persons arising from
subsequent alienations by the vendor.

Article 1484. In a contract of sale of personal property the price of which is

payable in installments, the vendor may exercise any of the following
remedies:

(1) Exact fulfillment of the obligation, should the vendee fail to pay;

(2) Cancel the sale, should the vendee's failure to pay cover two or more
installments;

(3) Foreclose the chattel mortgage on the thing sold, if one has been
constituted, should the vendee's failure to pay cover two or more
installments. In this case, he shall have no further action against the
purchaser to recover any unpaid balance of the price. Any agreement to the
contrary shall be void. (1454-A-a)

Article 1485. The preceding article shall be applied to contracts purporting

to be leases of personal property with option to buy, when the lessor has
deprived the lessee of the possession or enjoyment of the thing. (1454-A-a)

Article 1486. In the case referred to in the two preceding articles, a

stipulation that the installments or rents paid shall not be returned to the
vendee or lessee shall be valid insofar as the same may not be
unconscionable under the circumstances. (n)

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***Remedies are alternative; election of one is a waiver of the right to resort
to the others. Only the exercise of one of these remedies will serve as a bar
to the others.***

If seller chooses option 2, the buyer may demand the return of the
installments unless there is a stipulation effecting forfeiture (read 1486).

The RULES APPLY to:

1. The SALE of PERSONAL PROP, w/c is PAYABLE IN INSTALLMENTS

2. The LEASE of PERSONAL PROP, w/ OPTION TO BUY, &
3. The LESSOR has DEPRIVED THE LESSEE of the POSSESSION/
ENJOYMENT of the thing.

RA 6552 governs sales of REAL ESTATE on installments.

Where the buyer has paid at least 2 years of installments, the buyer is
entitled to the ff rights in case he defaults in the payment of succeeding
installments:

Grace Period – to pay, w/o additional interest, the unpaid installments due
w/in the total grace period earned by him w/c is hereby fixed at the rate of
one month grace period for every year of installment payments made;
Provided, that this right shall be exercised by the buyer only once in every
5 years of the life of the contract & its extensions, if any;

Refund of Cash Surrender Value – if the contract is cancelled, the seller

shall refund to the buyer the cash surrender value of the payments on the
prop equivalent to 50% of the total payments made, &, after 5 years of
installments, an additional 5% every year but not to exceed 90% of the total
payments made; Provided, that the actual cancellation of the contract shall
take 30 days from receipt by the buyer of the notice of cancellation or the
demand for rescission of the contract by a notarial act & upon full payment
of the cash surrender value to the buyer.

Article 1487. The expenses for the execution and registration of the sale
shall be borne by the vendor, unless there is a stipulation to the contrary.
(1455a)

Article 1488. The expropriation of property for public use is governed by

special laws. (1456)

A contract of sale may be absolute or conditional:

Absolute Sale

A sale is absolute when no condition is imposed and ownership passes to the

vendee upon delivery of the thing subject of the sale (NCC, Art. 1497).

A contract of sale is absolute when the title to the property passes to the
vendee upon delivery of the thing sold (Rabuya, 2017).

Instance when a deed of sale considered absolute in nature

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A deed of sale is considered absolute in nature where there is neither a
stipulation in the deed that title to the property sold is reserved in the seller until
the full payment of the price, nor one giving the vendor the right to unilaterally
resolve the contract the moment the buyer fails to pay within a fixed period.

Conditional Sale

It is conditional where the sale contemplates a contingency, and in general,

where the contract is subject to certain conditions, usually in the case of the
vendee, the full payment of the agreed purchase price and in the case of the
vendor, the fulfillment of certain warranties (De Leon, 2013).

BASIS CONDITIONAL SALE ABSOLUTE SALE

The seller is granted the right
to unilaterally rescind the
contract predicated on the
Definition
fulfillment or non- fulfillment,
as the case may be, of the
prescribed condition.
The title to the property is
not reserved to the seller
or if the seller is not
granted the right to rescind
the contract based on the
fulfillment or non-
fulfillment, as the case
may be, of the prescribed
condition.

Effect of the non-performance of the condition or if the condition did not

take place

Where the obligation of either party to a contract of sale is subject to any

condition which is not performed, such party may:

1. Refuse to proceed with the contract; or

2. Waive performance of the condition.

Unlike in a non-fulfillment of a warranty which would constitute a breach of the

contract, the non- happening of the condition, although it may extinguish the
obligation upon which it is based, generally does not amount to a breach of a
contract of sale.

Instance when a conditional sale considered an absolute sale

A deed of sale is absolute in nature although denominated a “conditional sale”

absent such stipulations reserving title to the vendor until full payment of the
purchase price, nor any stipulation giving them the right to unilaterally rescind
the contract in case of non-payment.

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 References

De leon, et. al (2013) Law on Obligations and Contracts, Quezon City, PH: Rex Printing
Company, Inc.

E. Paras (2013) Civil Code Volume V (Special Contracts), Quezon City, PH: Rex Printing
Company, Inc.

Supreme Court Reports Annotated

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