1.
A contract of sale of a F acceptance of a unilateral
parcel of land is
consensual, formal,
bilateral, onerous,
nominate, principal and
commutative
2. Even if time is of essence,
a buyer who already paid
80& of the price and
delayed in payment only for
1 month, must be given an
adiditional period to
complete payment of
purcahse price in
cosideraiton of equity and
justice.
3. Shocking gross inadequacy
of the price in an execution
sale executed by a court
sheriff may invalidate a
sale
4. A vehicle sales proposal
stipulating that the price of
a model 2015 Toyota Vios
car 20% of w/c will be paid
as a downpayment in 3
days and the balance in 36
monthly installments and
w/ a specific date for pick
up is a perfected contract
of sale is signed by the
buyer.
5. A written acknowledgment
showing that a fishing
vessel w/ a price of 900k is
now in the possession &
responsibility of the buyer
is a perfected contract of
sale if there is a firm
commitment that
documents pertaining to
the sale & agreement of
payment are to follow
6. A sale is perfected upon
QUIZ 4 – FINALS
promise to sell at a fixed
Not formal price even if there is no
option money paid to
support the promise
7. An option contract T
F supported by a separate
consideration is a non-
Time is of essence. binding offer that may be
Refer to 1191. withdrawn at any time
before acceptance by the
buyer
8. A lessee may not ask for T
the rescission of the sale of
the leased property where
he is living, in violation of a
F stipulated right of 1st priority
to buy, even if the right was
not annotated on the TCT
9. To be binding, the right of F.
first refusal stipulated in a
T lease agreement must also No need (price/period)
be supported by an
independent consideration
10. In a lease w/ right of 1st T
refusal, the lessor cannot
sell to a 3rd party at the
price of P 5300/sq m after
an offer to sell at P 6000/
sq m was declined by the
lessee
11. A perfected contract of sale T
F cannot be challenged on
the ground of the seller’s
non-ownership of the thing
sold at the time of the
perfection of the contract
12. X leased to Y a roof deck F
of its bldg. w/ the
agreement that any Sampaguita Pictures v
permanent improvements Jalwindor: “The fact that Capitol
made on the property by Y failed to pay Jalwindor the
shall belong to X. Y purchase price of the items
F installed glass jalousies levied upon did not prevent the
1
 purchased on credit from Z.
Upon Y’s failure to pay the
outstanding balance of the
50%, a levy on the glass
jalousies is proper
13. There is symbolic delivery
of a parcel of land upon the
execution of a deed of
absolute sale even if the
buyer had not acquired
actual possession thereof
because it is occupied by a
3rd party w/ an adverse
claim of ownership
14. A few days before his
death, X sold his land to Y,
who in turn sold it to Z. The
heirs of X sold the same
land to W, who in GF
registered the sale. Z, who
took actual possession of
the land a day after the
sale by W, has a better
right to the land
15. In Art 1544, a 2nd buyer
may still claim in GF even if
the 1st buyer was already in
possession of the property
at the time of the sale, if
the seller assured the 2nd
buyer that the alleged
buyer is merely a lessee
16. The rules on double sale
will apply when the deed of
absolute sale in
installments with a
downpayment of 20%
amounting to 200k was
executed after a contract to
sell in favor of another
buyer who paid 50% (500k)
QUIZ 4 – FINALS
transfer of ownership to Capitol
and, later, to Sampaguita by
virtue of the agreement in their
lease contract. Therefore, the
complaint of Sampaguita to
nullify the Sheriff's sale is well
founded, and should prosper.”
F greater in value than the
To be equivalent to actual
delivery, thing must be subject to
the control of the vendor.
Addison vs Felix- “if the vendee
x enjoy its possession due to an
opposition of a 3rd person who is
in actual possession..”
T 19. A unilateral promise to sell
F condition of destruction
“Art 1544 Par 2: Should there be
no inscription, the ownership
shall pertain to the person who
in GF was first in the
possession..”
F 23. Sale of inheritance before
Rules on double sale do not
apply if the first transaction is a
contract/promise to sell.
of the purchase price
17. When the consideration is T
partly in money and partly
in kind,the contract is one
of sale if the parties
intended it to be a sale
even if the thing given as
part of the consideration is
money given
18. An accepted bilateral F
promise to buy and sell a
car at a price less than
500k but not more than
505k is binding as an
executory agreement of
sale
F
is binding as a contract of
sale if a separate
consideration independent
of the price is given
20. A conditional contract of T
sale may be an executed
contract or an executory
contract
21. Things under resolutory T
may be objects of a valid
sale.
22. The sale by Pedro to Juan T
of a losing lotto ticket for a
past draw date is
necessarily void because
the hope of winning is vain.
F
partition is void because
the heir could not Valid even without enumerating
predetermine what he will the things.
receive after partiion
proceedings.
24. Subsequent acquisition of T
a title by vendor w/o title
validates the sale even if
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 the acquisition depends on
contingency
25. If a 3rd party tasked to give
the price of the sale
refuses to fix the price, the
court may fix the price
26. If the price is simulated, the
sale shall be considered a
donation.
27. Sale may be rescinded if
the inadequacy of the price
results in lesion by more
than ¼ of the valley of the
thing sold by the owner
28. By agreement, an option
money may be considered
part of the purchase price
should buyer execersie the
option to buy
29. A verbal sale of parcel of
land by an agent is valid
provided that his authority
to sell is in writing.
30. A contract of sale is
perfected where the
acceptance was made if
different from the place of
offer.
31. A deteriotiration of the thing
sold at the time of
perfection may render the
contract inoperative.
32. If the loss of the thing sold
at the time of perfection
was by the fault of the
seller, sale shall still be
valid.
33. If the loss of the thing sold
at the time of perfection
was a fortuitous event, the
risk is on the buyer if the
sale is conditiona.
34. The expenses of execution
and registration of the sale
QUIZ 4 – FINALS
are borne by the seller.
35. Before the fall of the F
F hammer in an auction sale,
a bidder may retract his bid Both may withdraw
but the auctioneer could
not withdraw the goods
F from the sale.
36. A legally separated T
husband may sell a car to
F his wife.
37. Without qualification, a sale T
between persons in trust
relations is necessasrily Only if no transfer of ownership
void.
T 38. Enumerate 3 obligations of Transfer, deliver, warrant
seller
39. Delivery by seller’s Traditio constitutum
retention of the thing he is possessorium
possessing by another right
T subordinate to the buyer is
known as
40. When the seller is not the F
owner, the buyer who
F purchased the property in a Public fairs/markets not affected
fair has no better title than s
Meeting of minds that of the seller.
T SAMPLEX
1. A contract of sale is F.
consensual, bilateral,
F onerous, nominate, Not preparatory
principal, preparatory and
Void commutative.
2. When the consideration is F
partly in money and partly It shall be considered a barter if
F in kind, the contract is one the value of the thing given as part
of sale if the parties of the consideration exceeds the
Seller intended it to be a sale amount of money or its
even if the thing given as equivalent; otherwise, it is a sale.
part of the consideration is
T greater in value than the
money given.
3
 3. A bilateral promise to sell is
binding as an executory
agreement of sale.
4. A unilateral promise to sell
is binding as a contract of
sale if a separate condition
independent of the price is
given.
5. A conditional contract of
sale may be an executed
contract of an executory
contract
6. Things under resolutory
condition may be objects
ofa vlaid sale
7. Sale of a losing ticket for a
past draw date is
necessarily void because of
the hope of winning is vain
8. Sale of inheritance before
partition is void because the
heir could not pre-
determine what he will
receive after partition
proceeding
9. Subsequent acquisition of
title by a vendor w/o title
validates the sale even if
the acquisition depends on
contingency.
10. If a 3rd party tasked to give
the price of the sale refuses
to fix the price, court may
fix it.
11. If the price is simulated, the
sale shall be considered a
donation.
12. Sale may be rescinded if
the inadequacy of price
results in lesion by more
QUIZ 4 – FINALS
F. than ¼ of the value of the of price does not affect a contract
Only if it is a bilateral promise to thing sold by the owner. of sale, except as it may indicate a
buy and sell. defect in the consent or the
F parties intended a donation or
some other act.
An accepted unilateral promise to 13. By agreement, an option T
buy or sell a determinate thing for money may be considered
ap rice certain is binding upon a part of the purchase price Alternative: F, element of a valid
promisor if the promise is should buyer exercise the option contract is a prestation, a
supported by a consideration option to buy. consideration separate and
distinct from the price. distcint from the purchase price
T for the option given.
14. A verbal sale of a parcel of T
land by an agent is valid
provided that his authority
to sell is in writing.
15. A contract of sale is F
perfected where the
T acceptance was made if Contract of sale is consensual.
different from the place of
offer
16. A detoriation of the thing T
F sold at the time of
perfection may render the
One who sells an inheritance w/o contract inoperative.
enumerating the things 17. If the loss of the thing sold F.
composed, shall be answerable as at the time of perfecting
an heir. was by the fault of the The contract is inexistent and void
T seller, sale shall still be because there is no object.
valid.
Alternative: F, no need to validate. 18. If the loss of the thing sold F.
at the time of perfection
was by a fortuitous event, The risk is borne by the seller.
F the risk is on the buyer if
the sale is conditional.
Courts can fix if the 3rd party acted 19. Expenses of execution and T
in BF or by mistake registration of the sale are
F. borne by the seller.
20. Before the fall of the F.
Sale is void, but the act may be hammer in an auction sale,
shown to be a donation. a bidder may retract his bid A bidder may withdraw the goods
T but the auctioneer could not unless auction has been
withdraw the goods from announced to be w/o reserve.
Alternative: F, gross inadequacy the sale.
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 21. In a sale of car, the vendor
can cancel the sale if the
vendee fails to pay the 1st
instalment.
22. A legally separated
husband may sell a car to
his wife.
23. A sale between persons in
trust relations is necessarily
void.
24. x
25. x
26. x
27. Delivery by seller’s
retention of the thing he is
possessing by another right
subordinate to the buyer is
known as
28. When the seller is not the
owner, the buyer who
purchased the property in a
fair has no better title than
that of the seller.
29. x
30. x
31. A negotiable document itlte
of goods indorsed in blank
may be subsequently
indorsed to a specified
person but could not be
indorsed in balnk.
32. Where a negotiable
document of title was
transferred for value by
mere delivery instead of the
required indorsement,
QUIZ 4 – FINALS
F.
2 or more.
T not affected by the fact that
F. Only property involved in the
trust relations.
Alternative: T. Void if there is no
complete transfer of ownership
but intention was merely to make
grantee a depository of the thing
subject of contract.
Obligations of a vendor:
1. Transfer ownership
2. Deliver the thing
3. Make warranties
Traditio constitutum
possessorium
F.
Purchases made in fairs shall not
be affected
2 ways to negotiate a negotiable
document of title to goods
1. Indorsement and delivery
2. Delivery
F.
It may be negotiated in blank, to
bearer or specified person.
T 38.
transferee mau compel
transferor to indorse the
document
33. The validy of negotiation is F.
the owner of the document Transferee must be in GF and
was deprived by theft even without notice of theft by the time
if the holder had notice, of negotiation.
prior to negotiation, of the
unlawful deprivation.
34. Transferee of a non-nego T
document of title to goods
may hold the bailee liable
for the possession of the
goods provided that he
notifies the bailee before
latter was notified by
transferor of a subsequent
sale of goods.
35. In the absence of F
stipulation, the goods sold
must be delivered at any Seller is bound to send then within
time. reasonable time.
36. If by agreement, seller is T
required to deliver the
goods to the buyer, delivery
to the carrier is deemed
delivery to the buyer if by
the BOL, the goods are
deliverable to the order of
the buyer whether or not
seller retains possession of
BOL.
37. A seller who was T
conditionally paid with the
buyer’s personal check can
habe the rights of an unpaid
seller of goods if chek is
dishonoured.
An unpaid sller of goods F
has the right to retain goods
even if the same were
already delivered to the
carrier.
5
 39. An unpaid seller has a lien
on the goods when the
buyer becomes insolvent,
provided that the seller is
still in possession of the
goods.
40. Exceptionally, seller may
exercise the right of
stoppage in transit even if
buyer already accepted
delivery.
41. If carrier wrongfully
withholds possession from
the buyer, seller can
exercise the right of
stoppage.
42. Right of stoppage in transit
may be exercised by
obtaining actual possession
of the goods from the
carrier.
43. Unpaid seller may resell
goods without notice to
buyer if the latter has been
in default of the payment of
price for unreasonable time.
44. Unpaid seller may rescund
the sale where buyer fails
to pay the price after a year
from the delivery.
45. Unpaid seller’s right of
stoppage in transit is not
affected by a subsequent
disposition of goods by the
original buyer except where
disposition was with
consent of the seller.
46. Buyer was in need of 1,000
sqm of land required by the
franchsior required for the
opening of a business. He
purchased from the seller at
a price of 100,000 per sqm.
He discovered that the total
QUIZ 4 – FINALS
F area delivered to him was
only 975. Buyer can opt to
rescind hte sale.
47. If on the other hand (46) the F
land has an area of 1,100,
the buyer has no other He may also accept and pay for
F option but to return the the same.
excess area.
No longer in transit. 48. If If a parcel of land F
beleived to be 1,000 sqm
was sold at a lump sum of 1 No increase or decrese of price.
F. million, buyer should pay
Wrongul refusal by carrier to more if the land turns out to
deliver will terminate the right of be 1,025 to avoid just
stoppage. enrichment.
49. As a rule, the buyer of T
T goods is not bound to
accept delivery by
instalment
50. In a cash sale, seller is T
excused from making
F. delivery if no payment is
Only if the goods are perishable or tendered by the buyer
based on an agreement. unless a period for payment
is fixed.
Alternatieve: T 51. Rules on double sale will T
F apply to a sale made by the
principal and another sale
by the agent to different
buyers
T 52. A previous buyer who was Frist buyer
informed of a subequent
sale in favor of another
buyer rushed to the register
of deeds to register hte sale
in his name. Who has a
better rgith to the land if
T subsequent buyer was ain
possesion of hte same
53. Warranty against eviction T
may be validly waived by
the buyer with knowledge of
risk.
54. In case of breach of F
6
 warranty against eviction, 73. x 1. Payment or performance
buyer may also demand Sale must be done in BF. 74. x 2. Loss
ornamental expsnses even 75. x 3. Condonation
if the sale was made in GF. 4. Merger or consolidation
55. X 2 remedies of buyer in case of 5. Compensaiton
56. X breach of warranty against hidden 6. Novation
encumbrances 76. x What is conventional redemption
1. Rescission 77. x 1. Vendor reserves right to
2. Indemnity repurchase the thing sold.
57. x Requisites of warranty against 2. Obligation to comply with 1616
58. x redhibitory vices. 78. x Nature of conventional redemption
59. x 1. Serious or important defect 79. x 1. Contractual
60. x 2. Hidden 80. x 2. Accidental
61. x 3. Exist at time of sale 81. x 3. Potestative
62. x 4. Notice to the defect was given 4. Real right
63. x within reasonable time 82. x Equitable mortgage
5. Action for rescission or 83. x 1. Unusually inadequate price of
reduciton of price must be 84. x sale with right to repurchase
broguth within proper period - 6 85. x 2. Vendor remains in possession
mos or 40 days from delivery as lessee
6. No waiver of warranty 3. Buyer retains a part of the
7. Buyer would not have bought it purchase price
has he known of the voice 4. Vendor binds himself to pay
64. If an animal sold was F taxes
classified as condemned, No warranty against hidden 5. Other case - real intent is to
there is no warranty against defects of animals sold at fairs or secure payment of a
hidden vices provided that public auctions, or if livestock debt/performance of obligation
the animal was examined sold as condemned. 86. x Exercise right of redemption
by an expert. 87. x 1. Co-owners
65. Disease is presumed 3 days 88. x 2. Co-heirs
covered by warranty if it 3. Judgment debtors
casuses death 7 days from 89. A vendee a retro has a right T
purchase. to be subrogated to the
66. x When may buyer suspend vendor's rights and action.
67. x payment after delivery 90. x Legal redemption by a co-owner
1. Disturbance 91. x 1. Co-ownership
2. Fear 92. x 2. Alienation of shares.
68. x Legal guarantees of seller for 93. x 3. Sale to a 3rd person or stranger
69. x payment of price of buyer 4. Sale before partition
70. x 1. Possesorry lien 94. A valid assignment of credit T
71. x 2. Right of stoppage in transit transfers title to the
3. Right to resale assigned credit to the
4. Right to rescind assignee, even if debtor is
72. x Extinguishment of sale unaware thereof.

QUIZ 4 – FINALS 7
 95. Assignor in GF answers for
solvency of the debtor,
unless insolvency of debtor
was prior to the sale and of
common knwoedlge.
96. x
97. x
98. x
99. x
100. x
101. A contract of lease is
consensual, nominate,
bialteral, onerous, and
commutative, although
exceptionally it could be
gratitutoous.
F.
No wararnty for solvency of
debtor, unless stipulator or
insolvency was prior to the sale
and of common knowledge.
Legal redemption instances
1. Sale of coo to a stranger
2. Credit/incorporeal right in
litigation is sold
3. Sale of an heir of his hereditary
rights to a stranger.
4. Sale of adjacent rural lands not
exceeding 1 hectare.
5. Sale of adjacent urban lunds
bought merley for spectulation
F.
It cannot be gratuitous.

Enumeration
• Requisites on warranty vs eviction
• Kinds of implied warrantieas
• Exceptions to warranty vs animal vices
◦ Knowdledge of B
◦ Expert B
◦ Stipulations
◦ Fairs and public auctions
◦ Livestock sold as condemed
• Persons disqualifed to buy
• Exceptions to right to suspend payment

QUIZ 4 – FINALS 8