Regarding Article 1542, in a lump sum contract there shall be no increase or decrease of the

price, although there be a greater or less area or number than that stated in the contract with
regards to conflict between boundaries and area, boundaries will prevail. Also what happens if
the vendor does not deliver what is included in the boundaries? The buyer can either rescind
the contract for the seller’s failure to deliver what has been stipulated or he may pay a reduced
proportional price. And what happens if the land included in the boundaries happens to be less
than what was stipulated? The buyer cannot rescind the contract and he is not entitled to pay a
reduced price for the civil code presumes that purchaser has ascertained its area and quality
before the perfection of the contract. The meaning of more or less can be considered as
covering inconsiderable or small differences one way or the other; the use of such phrases in
designating the quantity covers only a reasonable excess or deficiency.

The actions based on Articles 1539 and 1542 for either rescission of the contract or
proportionate reduction of the price must be brought within six months counted from the day of
delivery.

Provides for the rules of preference in case of double sale. Personal property is the possessor
in good faith. Real Property is the registrant in good faith, possessor in good faith, and persons
with the oldest title in good faith. In all the rules, there must be good faith; otherwise, the order
of preference does not apply. Registration here requires actual recording; If the land is
registered under the Land Registration Act, and it is sold but the subsequent sale is registered
not under the Land Registration Act but under Act 3344, as amended, such sale is not
considered registered. The registration of a forged deed of sale cannot grant the preference
advertised to in this Article in as much as among other things, there was no good faith.
Possession here is either actual or constructive, let’s say symbolic or constructive possession
can be acquired by the execution of a public document. Title in this article means title because
of the sale, and not any other title or mode of acquiring property. This article applies to a double
donation and to sales made by a principal and his agent of the same property but does not
apply when property was first donated, then sold.

The instances when Article 1544 does not apply to subsequent judicial attachments or
executions which should not prevail over prior unregistered sales where possession had already
been conveyed by the execution of a public instrument. However, when the property sold on
execution is registered under the Torrens system, registration is the operative act that gives
validity to the transfer or creates a lien on the land, and a purchaser on execution sale, is not
required to go behind the registry to determine the conditions of the property. Exception to this is
where the purchaser had knowledge, prior to or at the time of the levy, of such previous lien or
encumbrance. Instances where double sale was not made by the same person or his authorized
agent. Where one sale was an absolute one but the other was a pacto de retro transaction
where the period to redeem has not yet expired. Where one of the sales was one subject to
suspensive condition which was not complied with.

Condition and Warranties applies only to conditional sales, the article speaks of presence of
conditions and warranties. The conditions may be waived or may be considered warranties.
Only if condition is not performed, the party may refuse to proceed with the contract or he may
waive performance of the condition.

Any affirmation of fact or any promise by the seller relating to the thing is an express warranty if
the natural tendency of such affirmation or promise is to induce the buyer to purchase the same,
and if the buyer purchases the thing relying thereon. Remember the dealer’s talk or “excellent”
cannot be considered as an express warranty. A little exaggeration is apparently allowed by the
law as a concession to human nature.

In a contract of sale, unless a contrary intention appears, there are what are called implied
warranties against eviction and against hidden defects. In general, the actions based on the
implied warranties prescribed in 10 years since these obligations are imposed by law.