Obligations of the Vendor: To deliver the thing sold including the ACCESSIONS and ACCESSORIES in the condition which they were upon the perfection of the contract.
If silent, FOB shipping point. Buyer is liable after shipping.
Contract of Sale Piece of Work Contract of Sale Contract to Sell
Sale of 500 OR MORE is covered by SOF Rule on Double Sale for Sales ONLY
Emptio Rei Speretae Emptio Spei Arras/Earnest money Option Money
Sale – Future Thing Sale – Hope Part of PP/Perfection Not Part of PP After perfection, before delivery “res perit domino” – seller will suffer the risk of loss
Rights of an Unpaid Seller:
Right of stoppage in transit, right of resale, right to rescind the sale
Traditio (Types of Possession)
Legal Formalities – public instrument Brevi Manu – Vendee is already in possession. Finance Symbolica – giving the keys Lease with Bargain Purchase Option (Movables Only) Longa Manu – delivery of the thing by Constitutum Possessorium – Vendor still in possession. mere consent movable Sale and Leaseback (Movable and Immovable). Recto Law - Personal Maceda Law - Residential Selection of one, invalidates the other options: Covers contract to sell and conditional sales. One month failure – 1 remedy Installment Sales of Residential Property. o Exact fulfillment with recovery of deficiency (writ of attachment) Minimum Grace Cash Surrender 2 or more failure – 3 remedies: Period Value o Exact fulfillment, Less than 60 days None o Cancel the sale and return the proceeds 2 years less reasonable rent, 2-5 years 60 days + 30 50% o Foreclose the chattel mortgage (no right days per 1 year of recovery w/ or w/o stipulation) More than 60 days + 30 50% + 5% per 5 years days per 1 year year up to 90% Foreclosure of another thing other than the one sold (general rule will apply: deficiency can be recovered) Minimum Grace Period availed once in every 5 years only.
Down payment not included in counting
Installment payment, but CSV will include it Sale On Trial/Approval VS. Sale or Return Sale of Real Estate at CPU or Lump Sum Sale on trial or approval – buyer will own it if: Excess/Inadequate (prescription of 6 months) buyer signifies his approval, Certain Price per Unit: buyer does an act adopting the Quanti Minoris (Reduction) transaction, Redhibitoria (Rescind) only if: buyer does not signify his approval Poor quality 10% must be poor quality within a reasonable time fixed in the Lacking Area 1/10 of area contract Lumpsum price – Pay stipulated price even if Sale or return – buyer owns it upon delivery. area is lacking/more than in the contract. Redhibitoria only if unconscionable. If vendor does not deliver the area within the contract, you can rescind or reduction
Rules on Eviction – Seller’s Liabilites
No Waiver Waiver Consciente Waiver Intencionada Bad Faith – VICED Liable for value of the thing at NO LIABILITY Good Faith – VICE the time of eviction Value of The Thing @ Eviction, Income/Fruits, Cost of Suit, Expenses, Damages (VICED) Double Sale Rules on Transactions do not apply to unregistered titles. waiver is a donation of rights. If silent, less gratuitous transfer so Consciente Encumbrance or easement – encumbrance imposed upon an IMMOVABLE property for the benefit of another immovable belongings. 1 year of prescription for cancellation. After that, damages only. non-apparent, not mentioned in agreement, vendee would not have acquired the immovable had he been aware thereof.
Remedies of Vendee in case of Breach of Warranties in case of HIDDEN DEFECTS.
prescriptive period of 6 months from delivery of the thing sold withdrawal from contract or rescission – accion redhibitoria demanding a proportionate in the price – accion quanti minoris Seller will be liable for thing with hidden defect regardless of the reason of the loss. THE REASON FOR THE LIABILITY IS THE HIDDEN DEFECT whether aware or not (basta walang waiver). if good faith, price + expense + interest bad faith, price + expense + damages
Redhibitory Effect on Animals Seller Liable in case the Animal Dies of
(even a professional can’t check it) Disease (Different from Redhibitory) 40 days prescription disease exist at the same of the sale and is for animals sold in pairs – redhibitory only the cause of death for separate – AR or AQM animal dies within 3 days (need to autopsy) no warranty if sold at fairs, public auctions or condemned livestock Installment Delivery – seller makes a defective delivery/buyer neglects or refuses w/o just cause refuse to proceed with the contract and sue for damages for breach of entire contract or claim compensation for damages if the breach is severable
Immovable Property Sold Movable Property Sold
Remedy of Seller in case of Fear of Loss Rescission of Seller Property AND price – immediate rescission Time of delivery, vendee does not appear Property or Price – fulfillment or rescission Time of delivery, vendee does not pay the WITH damages price unless a longer period is stipulated
Conventional Redemption Legal Redemption
Pacto de Retro Sale or Right of Repurchase The right of a 3rd person to repurchase a land if it cannot be identified if pacto de retro or in exceptional cases equitable mortgage, usually equitable repurchase by a co-owner mortgage adjoining rural lot owner – the one with the if proven na pacto de retro, buyer may smallest land will one. If same size, the first exercise the right within 30 days from the one. rendition of judgment adjoining urban lot owner (right of preemption if no period, 4 years. Maximum of 10 years and legal redemption) – best justified use will win o right to purchase within 30 days of notice