THE LAW ON SALES

(Ref. Arts. 1458 -1637, Civil Code of the Phil.;

The Law on Sales, Agency and Credit
Transactions by: Hector S. De Leon)

CHAPTER 3
EFFECT OF THE CONTRACT WHEN
THE THING SOLD HAS BEEN LOST

ART. 1493. [sale of specific thing]

 If at the time the contract of sale has been –

i. entirely lost -the contract shall be w/o any

effect; inexistent; void [because there is no
object]

ii. partially lost – the vendee may elect between

a) withdrawing from the contract; and
b) demanding the remaining part,
paying its proportionate part.

ART. 1494. [sale of mass of specific goods]

 If at the time the contract of sale, w/o the
knowledge of the seller, the goods have perished
or materially deteriorated in quality as to be
substantially changed in character, the buyer,
may, at his option treat the sale:

a) avoided; or
b) valid – in all existing /undeteriorated goods,
paying for the goods in w/c the ownership will
pass (if sale is divisible)
(if sale is indivisible – the object thereof
may be considered as a specific thing;
buyer to pay only the proportionate
price)