Chrysodale H.

Morales September 23, 2023

2019350032 REM123

Sale

- By the contract of sale on of the contracting parties’ obligations himself to transfer ownership
and to deliver a determinate thing, and other to pay therefor a price certain in money or its
equivalent. (Article 1458, Civil Code)
- A contract of sale may be absolute or conditional. (Paragraph 2, Artice 1458, Ibid.)

 Absolute Contracts: The Civil Code recognizes the validity and enforceability of absolute contracts.
These are contracts where the parties are immediately bound to perform their respective
obligations without any conditions or contingencies. Once an absolute contract is formed, the
parties have an immediate obligation to fulfill their promises.

Sale of Goods: In a typical sale of goods contract, the seller is obligated to deliver the goods, and
the buyer is obligated to pay the purchase price. These obligations are not contingent on any future
events but are immediately enforceable once the contract is formed.

Lease Agreements: In a lease or rental agreement, both the landlord and tenant have immediate
and unconditional obligations. The landlord must provide the property for use, and the tenant must pay
the rent as agreed upon in the lease.

Simple Loan Contracts: In a simple loan agreement, the lender is obligated to provide the loan
amount, and the borrower is obligated to repay the loan according to the agreed-upon terms. These
obligations are not subject to conditions or contingencies.

 Conditional Contracts: These are contracts where the parties' obligations are contingent upon the
occurrence of specific events or the fulfillment of certain conditions. Until the specified condition
or event occurs, the parties may not be required to perform their contractual obligations.

1.) Republic Act No. 6552 (Maceda Law): This important piece of legislation is designed to provide
protection to buyers of real estate who make installment payments. The law outlines specific
rights and obligations for both buyers and sellers engaged in installment sales. It sets guidelines
on the minimum grace period for payment and stipulates that the buyer has the option to
continue payments or receive a refund in certain cases
2.) While primarily concerned with the governance structure of local government units (LGUs), this
comprehensive law also significantly affects real estate transactions. It addresses property tax,
including real property tax, imposed by LGUs. It also covers zoning regulations, land use
planning, and ordinances related to property within the jurisdiction of LGUs. This code provides
 a framework for local government ordinances and regulations that can impact real estate
matters. Republic Act No. 7160
3.) Particularly relevant to buyers of subdivisions and condominium units. It lays down requirements
for developers and sellers, including the obligation to provide potential buyers with vital
information about the property, such as its technical description, location, and available utilities.
By ensuring transparency and consumer protection, the decree helps maintain the integrity of
real estate transactions. Presidential Decree No. 957 (Subdivision and Condominium Buyers'
Protective Decree)
4.) Presidential Decree No. 1529 (Property Registration Decree): This comprehensive decree
governs the registration of land titles and property rights. It establishes the legal processes for
transferring property ownership through sale, ensuring the validity and legality of such
transactions. The decree covers the creation, registration, and annotation of deeds,
encumbrances, and other instruments related to real property.
5.) Presidential Decree No. 1529 (Property Registration Decree): This comprehensive decree
governs the registration of land titles and property rights. It establishes the legal processes for
transferring property ownership through sale, ensuring the validity and legality of such
transactions. The decree covers the creation, registration, and annotation of deeds,
encumbrances, and other instruments related to real property.

Lease

Article 1646. The persons disqualified to buy referred to in articles 1490 and 1491, are also disqualified
to become lessees of the things mentioned therein. (n)

Article 1647. If a lease is to be recorded in the Registry of Property, the following persons cannot
constitute the same without proper authority: the husband with respect to the wife’s paraphernal real
estate, the father or guardian as to the property of the minor or ward, and the manager without special
power. (1548a)

Article 1648. Every lease of real estate may be recorded in the Registry of Property. Unless a lease is
recorded, it shall not be binding upon third persons. (1549a)

Article 1649. The lessee cannot assign the lease without the consent of the lessor, unless there is a
stipulation to the contrary. (n)

Article 1650. When in the contract of lease of things there is no express prohibition, the lessee may
sublet the thing leased, in whole or in part, without prejudice to his responsibility for the performance of
the contract toward the lessor. (1550)

Article 1651. Without prejudice to his obligation toward the sublessor, the sublessee is bound to the
lessor for all acts which refer to the use and preservation of the thing leased in the manner stipulated
between the lessor and the lessee. (1551)
 Article 1652. The sublessee is subsidiarily liable to the lessor for any rent due from the lessee. However,
the sublessee shall not be responsible beyond the amount of rent due from him, in accordance with the
terms of the sublease, at the time of the extra-judicial demand by the lessor. Payments of rent in
advance by the sublessee shall be deemed not to have been made, so far as the lessor’s claim is
concerned, unless said payments were effected in virtue of the custom of the place. (1552a)

Article 1653. The provisions governing warranty, contained in the Title on Sales, shall be applicable to
the contract of lease. In the cases where the return of the price is required, reduction shall be made in
proportion to the time during which the lessee enjoyed the thing. (1553).

Article 1654. The lessor is obliged:

(1) To deliver the thing which is the object of the contract in such a condition as to render it fit for the
use intended;
(2) To make on the same during the lease all the necessary repairs in order to keep it suitable for the use
to which it has been devoted, unless there is a stipulation to the contrary;
(3) To maintain the lessee in the peaceful and adequate enjoyment of the lease for the entire duration of
the contract. (1554a)

Article 1655. If the thing leased is totally destroyed by a fortuitous event, the lease is extinguished. If the
destruction is partial, the lessee may choose between a proportional reduction of the rent and a
rescission of the lease. (n)

Article 1656. The lessor of a business or industrial establishment may continue engaging in the same
business or industry to which the lessee devotes the thing leased, unless there is a stipulation to the
contrary. (n)

Article 1657. The lessee is obliged:

(1) To pay the price of the lease according to the terms stipulated;
(2) To use the thing leased as a diligent father of a family, devoting it to the use stipulated; and in the
absence of stipulation, to that which may be inferred from the nature of the thing leased, according to
the custom of the place;
(3) To pay expenses for the deed of lease. (1555)

Article 1658. The lessee may suspend the payment of the rent in case the lessor fails to make the
necessary repairs or to maintain the lessee in peaceful and adequate enjoyment of the property leased.
(n)

Article 1659. If the lessor or the lessee should not comply with the obligations set forth in articles 1654
and 1657, the aggrieved party may ask for the rescission of the contract and indemnification for
damages, or only the latter, allowing the contract to remain in force. (1556)

Article 1660. If a dwelling place or any other building intended for human habitation is in such a
condition that its use brings imminent and serious danger to life or health, the lessee may terminate the
lease at once by notifying the lessor, even if at the time the contract was perfected the former knew of
the dangerous condition or waived the right to rescind the lease on account of this condition. (n)

Article 1661. The lessor cannot alter the form of the thing leased in such a way as to impair the use to
which the thing is devoted under the terms of the lease. (1557a)

Article 1662. If during the lease it should become necessary to make some urgent repairs upon the thing
leased, which cannot be deferred until the termination of the lease, the lessee is obliged to tolerate the
work, although it may be very annoying to him, and although during the same, he may be deprived of a
part of the premises. If the repairs last more than forty days the rent shall be reduced in proportion to
the time – including the first forty days – and the part of the property of which the lessee has been
deprived. When the work is of such a nature that the portion which the lessee and his family need for
their dwelling becomes uninhabitable, he may rescind the contract if the main purpose of the lease is to
provide a dwelling place for the lessee. (1558a)

Article 1663. The lessee is obliged to bring to the knowledge of the proprietor, within the shortest
possible time, every usurpation or untoward act which any third person may have committed or may be
openly preparing to carry out upon the thing leased. He is also obliged to advise the owner, with the
same urgency, of the need of all repairs included in No. 2 of article 1654. In both cases the lessee shall be
liable for the damages which, through his negligence, may be suffered by the proprietor. If the lessor fails
to make urgent repairs, the lessee, in order to avoid an imminent danger, may order the repairs at the
lessor’s cost. (1559a)

Article 1664. The lessor is not obliged to answer for a mere act of trespass which a third person may
cause on the use of the thing leased; but the lessee shall have a direct action against the intruder. There
is a mere act of trespass when the third person claims no right whatever. (1560a)

Article 1665. The lessee shall return the thing leased, upon the termination of the lease, as he received
it, save what has been lost or impaired by the lapse of time, or by ordinary wear and tear, or from an
inevitable cause. (1561a)

Article 1666. In the absence of a statement concerning the condition of the thing at the time the lease
was constituted, the law presumes that the lessee received it in good condition, unless there is proof to
the contrary. (1562)

Article 1667. The lessee is responsible for the deterioration or loss of the thing leased, unless he proves
that it took place without his fault. This burden of proof on the lessee does not apply when the
destruction is due to earthquake, flood, storm or another natural calamity. (1563a)

Article 1668. The lessee is liable for any deterioration caused by members of his household and by guests
and visitors. (1564a) Article 1669. If the lease was made for a determinate time, it ceases upon the day
fixed, without the need of a demand. (1565)

Article 1670. If at the end of the contract the lessee should continue enjoying the thing leased for fifteen
days with the acquiescence of the lessor, and unless a notice to the contrary by either party has
previously been given, it is understood that there is an implied new lease, not for the period of the
original contract, but for the time established in articles 1682 and 1687. The other terms of the original
contract shall be revived. (1566a)

Article 1671. If the lessee continues enjoying the thing after the expiration of the contract, over the
lessor’s objection, the former shall be subject to the responsibilities of a possessor in bad faith. (n)
Article 1672. In case of an implied new lease, the obligations contracted by a third person for the
security of the principal contract shall cease with respect to the new lease. (1567)

Article 1673. The lessor may judicially eject the lessee for any of the following causes:
(1) When the period agreed upon, or that which is fixed for the duration of leases under articles 1682
and 1687, has expired;
(2) Lack of payment of the price stipulated;
(3) Violation of any of the conditions agreed upon in the contract;
(4) When the lessee devotes the thing leased to any use or service not stipulated which causes the
deterioration thereof; or if he does not observe the requirement in No. 2 of article 1657, as regards the
use thereof. The ejectment of tenants of agricultural lands is governed by special laws. (1569a)