UNIT III

CHAPTER III

EFFECTS OF THE CONTRACT WHEN THE THING

SOLD HAS BEEN LOST

ENTER
 OUTLINE
DURATION
This Chapter is good for three (3) hours.
01 INTRODUCTION
There are significant issues when thing sold has been lost.
02 This chapter will discuss nature, effect, consequences, rights, liabilities involved when the
thing sold has been lost.
Relevant cases are also included in the chapter as well as cross references and illustrations
03 to emphasize the significance of every provision,

04 OBJECTIVES
15. The student will be able to learn that the object of the contract has been entirely lost; the
contract shall be without any effect.
16.The learner will be able to determine the nature of fungible goods and generic things,
17. The student will be able to correlate other provisions of the law to the topics and sub-
topics.
01

02
EFFECTS OF THE CONTRACT
03

04
WHEN THE THING SOLD HAS
BEEN LOST
 Article 1493
01
If at the time the contract of sale is perfected, the
02 thing which is the object of the contract has been
entirely lost, the contract shall be without any effect.
03
But if the thing should have been lost in part only, the
04 vendee may choose between withdrawing from the
contract and demanding the remaining part, paying
its price in proportion to the total sum agreed upon.
(1460a) (Civil Code of the Philippines)
 Article 1494
01
Where the parties purport a sale of specific goods, and the goods
02 without the knowledge of the seller have perished in part or have
wholly or in a material part so deteriorated in quality as to be
03 substantially changed in character, the buyer may at his option
treat the sale:
04
As avoided; or (2) As valid in all of the existing goods or insomuch
thereof as have not deteriorated, and as binding the buyer to pay
the agreed price for the goods in which the ownership will pass, if
the sale was divisible. (Civil Code of the Philippines)