Abalos, Brigid Marfe C.

10/26/2022

FINAL EXAM IN SALES

I.

1.
Under the law on sales, the various modes of extinguishment of sale are classified
to the following:
a. Common modes which have the same causes as to the extinguishment of an
obligation, and includes the following causes:
1. Payment or performance of an obligation which does not only require the
delivery of the money but also the fulfillment of and obligation;
2. Loss of the thing due which consists of things which already perished and
goes out from the commerce of men;
3. Condonation or the remission of debt where the creditor, by his act of
liberality will extinguish the obligation even without the payment of debt;
4. Confusion or the merger of rights of the debtor and creditor into the same
person;
5. Compensation where a concurrent obligation of two persons, who are
creditor and debtor of each other is extinguished;
6. Novation where the obligation in the contract has been substituted
resulting to a change in the tenor of the contract.
b. Special modes which are expressly provided under the law on sales, to wit:
1.Breach of warranty;
2. Seller’s right to stoppage of goods in transit;
3. Right to lump sum;
4. Right to cancel or rescind the contract
c. Extra-special modes which involve redemption as a remedy to extinguish sale
and classified into two forms, namely:
1. Conventional redemption where the vendor has reserved his right to redeem
the property previously sold to the buyer provided that the buyer shall pay the full
amount of price or expenses paid;
2. Legal redemption is whereby one has the right to be substituted based on
the terms and conditions stipulated in the contract, in place of another who has
acquired the thing sold by dation in payment or purchase.
 2.
Under the law on sales, the various modes of constructive delivery include
the following:
a. Delivery by executing a public instrument where a prima facie delivery of the
thing sold is necessary otherwise, it can lead to the invalidity of the ownership
or title thereof;
b. Traditio longa manu where the vendor would point out to the vendee, the
thing sold, within the latter’s sight but without an actual delivery;
c. Traditio brevi manu or the short-hand delivery where the potential buyer is
already in actual possession of the would-be object of the contract of sale;\
d. Traditio symbolica is where the use of symbol is necessary for the delivery of
the thing sold is deemed effected;
e. Traditio constitutom possessorium is the opposite of tradition brevi manu and
is considered to be a mixed actual and legal delivery;
f. Quasi-traditio which is the delivery of the rights, credits and incorporeal
property.

3.
a.
Under the law on sales, the following are the forms of document of title:
a. Bill of lading is a document or instrument of two-fold character that serves as
an evidence of recipt of goods for shipment issued by a common carrier;
b. Dock warrant is a warrant given by dock owners to the merchandise owners of
imported and warehoused goods on the dock upon the faith of the bills of
lading as a recognition of his title to the goods;
c. Quedan is a warehouse receipt that covers sugar, tobacco, rice or hemp;
d. Warehouse receipt is a document of title issued by a warehouse man where it
is stated therein that certain goods were received by the bailee to be delivered
to the bearer or to the order of any person named in the receipt or to a specific
person.

4.
Under the law on sales, implied warranties are distinguished on the
following:
a. Warranty against eviction is a warranty where the seller guarantees that he has the
right to sell the property to the buyer and has acquired a legal and peaceful
ownership thereof;

b. Warranty against hidden defects where a seller has the obligation to guarantee that
the goods or things he sell to the buyer are free from encumbrances and defects
and from where he is required to disclose to the buyer.
 II.

a.
Under the law on sales, caveat venditor refers to the legal principle stating
that, “seller beware”, where a seller has the obligation to guarantee that the property or
thing he sold to the buyer is with a clean and legal title or documents proving ownership
while caveat emptor is a legal principle stating that , “buyer beware” which gives buyer
the right to take precaution and necessary actions to determine if the property that he sold
has been acquired through a clean and legal title or documents proving ownership.
On the other hand, mirror principle is a legal principle stating that both buyer and
seller have their own duties to be accountable and take necessary precautionary measures
in checking whether the title of the thing or property they sold is free from any
encumbrances.

b.
Under the law on sales, redemption refers to the right of the seller to redeem or re-
acquire back the thing that he has previously sold to the buyer and where the buyer is required to
pay the full amount for the price and expenses previously made while pre-emption is also called
as the right of first refusal where one party who owns a specific real property shall reserve the
first offer to his other contracting party before he offers the same to a third party.

c.
Under the law on sales, condition and warranty can be distinguished on the
following aspects:
1. Condition is considered to be the cause of the existence of an obligation while a
warranty is the cause of the performance of the obligation;
2. Condition is stipulated by the parties while a warranty cannot be stipulated by the
parties but rather imposed by the law;
3. If a condition is not fulfilled, it would extinguish the obligation but will not result
to the breach of contract, while if a warranty is not fulfilled, it can result to a
breach of contract.

d.
Under the law on sales, document of title is a document used in the ordinary
course of business in the sale or transfer of goods, while a negotiable instrument is a
document or title in which it is stated that the goods referred to will be delivered to the
bearer or to the order of any person named in such document.
 III.

1.
Under the law on sales, implied acceptance is effected by an operation of
the law where the acceptance of the thing sold is deemed made by some acts or
signs indicative of such acceptance but not made in an expressed form.

2.
Under the law on sales, a negotiable document of title can be negotiated
by means of delivery to the bearer or other persons indicated therein.

3.
Under the law on sales, the rights of the following redemptioners are as
follows:
a.
Co-owners can exercise their right of redemption but only to the extent of
the portion of property to which they owned or is entitled to.

b.
Adjacent owners of rural lands may exercise their right of redemption by
means of a judicial foreclosure to which the said owners who have mortgaged the
said property are given a period of not less than 90 days but not more than 120
days to exercise their redemption before the judicial confirmation of sale.

c.
Adjacent owners of urban lands may exercise their right of redemption by
means of a judicial foreclosure to which the said owners who have mortgaged the
said property are given a period of not less than 90 days but not more than 120
days to exercise their redemption before the judicial confirmation of sale.
4.
Under the law on sales, the “As is where is sale” is one of the modes
considered to be an exception where warranty cannot be applied.
It is where the vendor makes no warranty as to the quality or workable
condition of the goods and the vendee takes them in conditions in which they are
found.
 IV.

1.

a.

Atty. C has the better right in the given facts. Considering that Atty. C is a
purchaser in good faith and he has already obtained and registered a title over the
property in his own name.

Under the principle in law on sales, the first registrant has the better right over the
property if it is in good faith.

Hence, Atty. C has a better right over the subject land.

b.
No, Atty. C can no longer be considered of having a better right over Atty. B with
the subject parcel of land, if Atty. C is aware that the said parcel of land was sold first to
Atty. B.
Under the law on double sales, if the object is an immovable property, a vendee in
order to acquire a better right over a property requires that he must first registered the
same in the Registry of Deeds or has acquired the first possession over the said property,
provided that he is in good faith at that time.
At the case at bar, in case that Atty C has already a knowledge that the land was
sold first to Atty. B but still insist to register the same over his name, then he is no longer
considered to be a possessor-in-good faith.
Hence, Atty. C can no longer be considered of having a better right over Atty. B
with the subject parcel of land, if Atty. C is aware that the said parcel of land was sold
first to Atty. B.
 2.

No, the contention of Emma is not correct.

Under the law on sales, the right of redemption granted to a person who intend to
redeem his property can be exercised through a judicial foreclosure where a mortgagee
has been given to exercise his right of redemption within the period of not less than 90
days but not more than 120 days after the entry of judgment of foreclosure sale or before
judicial confirmation of sale.
At the case at bar, the period of redemption exercised by Betty has complied with
the prescribed period of redemption.
Hence, the contention of Emma is not correct.
 3.

DEED OF ABSOLUTE SALE

KNOW ALL MEN BY THESE PRESENTS:

This DEED OF ABSOLUTE SALE is made, executed and entered into by:
Sarah Duterte, of legal age, Filipino, single and a resident of Davao City, Philippines,
hereinafter referred to as the SELLER.
-AND-
Liza Soriano, of legal age, Filipino, single, the incumbent governor in Pangasinan and a
resident of Pangasinan, Philippines, hereinafter referred to as the BUYER.

WITNESSETH
WHEREAS, the SELLER is the registered owner of a parcel of land with improvements
located in Davao City, Philippines and covered by Transfer Certificate of Title No. 1234,
containing a total area of one-thousand square meter (1,000) square meters, more or less and
more particularly described as follows:

TRANSFER CERTIFICATE OF TITLE NO. 1234

WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the
above-mentioned property for the amount of One Million Pesos (Php 1,000,000.00).
NOW THEREFORE, for and in consideration of the sum of One Million pesos (Php
1,000,000.00) in Philippine currency, hand paid by the vendee to the vendor, the SELLER DO
HEREBY SELL, TRANSFER, and CONVEY by way of an Absolute Sale unto the said
BUYER, his heirs and assigns, the certain parcel of land together with all the improvements
found thereon, free from all liens and encumbrances of whatever nature including real estate
taxes as of the date of this sale.

Sarah Duterte Liza Soriano

Seller Buyer

Signed in the presence of these witnesses:

_____________ ___________
Witness Witness
 4.

Hello Atty. Primer! This will be the last subject that I can have you as my
professor.

Thank you for all the wisdom that you imparted us. Thank you also for all the
words of encouragement that you have shared to us. It has been a great motivation
for us in pursuing law.