FIRST SEMESTER - SCHOOL YEAR 2013-2014
TITLE VI - SALES
CHAPTER 1 - NATURE AND FORM OF THE CONTRACT
ART. 1458
- Definition
- Characteristics
- Elements
- Stages
- Kinds
- Distinguished from other agreements/contracts
ART. 1459
- The thing must be licit
- Vendor must have the right to transfer ownership
ART. 1460
- Determinate
- Determinable
ART. 1461
- Having potential existence
- Mere hope or expectancy
- Vain hope or expectancy
- Emptio Rei Speratae vis-à-vis Emptio Spei
ART. 1462
- Existing goods owned or possessed by Seller
- Goods to be manufactured, raised or acquired by Seller after perfection of contract
- Goods whose acquisition by the Seller depends upon a contingency which may or may not
happen
ART. 1463
- Sale of an undivided interest in a thing
ART. 1464
- Sale of an undivided share of a specific mass involving fungible goods
ART. 1465
- Things subject to a resolutory condition
ART. 1466
- Contract of Sale vis-à-vis Contract of Agency to Sell
ART. 1467
- Contract of Sale vis-a-vis Contract for a Piece of Work
ART. 1468
- Contract of Sale vis-à-vis Barter
ART. 1469
- Certainty of the price
- When no amount is stipulated
- If one acted in bad faith or by mistake
ART. 1470
- Gross inadequacy of price
ART. 1471
- Simulated price and its effect
ART. 1472
- Certainty of price relating to securities, grains, liquids and other things
ART. 1473
- Price can never be left alone to one party’s discretion unless agreed upon by the parties
ART. 1474
- Effect if price can never be determined
- Reasonable price rule – when there is already partial delivery
ART. 1475
- When is there a perfected contract of sale – face to face; thru correspondence and when
subject to a resolutory condition
- Consensual and Bilateral characteristics of a contract of sale
- Requirements for perfection
- Formalities for perfection – Statute of Frauds
ART. 1476
- Sale by auction and when perfected
ART. 1477
- When is ownership transferred
- Kinds of delivery
ART. 1478
- Pactum Reservati Dominii
ART. 1479
- Mutual promise/ bilateral promise via-a-vis accepted unilateral promise
- Policitacion
- Option contract/option money
ART. 1480
- Who bears the risk of loss of the object – before perfection, after perfection before delivery
and after delivery
ART. 1481
- Sale by description
- Sale by Sample
- Sale by description and sample
ART. 1482
- Earnest money- its definition and significance
- Earnest money vis-à-vis option money
- Right of first refusal
ART. 1483
- Forms of contract of sale: written, oral, partly in both, inferred from parties’ conduct
ART. 1484
- Sale of personal property in instalment (RECTO LAW)
- Vendor’s remedies when vendee failed to pay
- Inapplicability of Art. 1484
ART. 1485
- Art. 1484 applies to lease of personal property with option to buy
ART. 1486
- Non-return of paid instalments
- MACEDA LAW
ART. 1487
- Execution and registration expenses borne by the vendor
ART. 1488
- Expropriation for public use by the government
- Requisites for Expropriation
CHAPTER 2 - CAPACITY TO BUY OR SELL
ART. 1489
- Absolute incapacity vis-à-vis relative incapacity
- Purchase by minors
ART. 1490
- Spouses cannot sell property to each other; Exceptions
ART.1491
- Persons relatively incapacitated to buy
ART. 1492
-Arts. 1490 to 1491 applicable to sales in legal redemption, compromises and renunciations
CHAPTER 3- EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS BEEN LOST
ART. 1493
- Complete loss vis-à-vis partial loss
- When object is lost before sale
ART. 1494
- Loss of specific goods
CHAPTER 4- OBLIGATIONS OF THE VENDOR
SEC. 1. General Provisions
ART. 1495
- Obligations of vendor: to transfer ownership, to deliver object, to warrant the object and to
preserve it from perfection to delivery
- Effect of non-delivery of object
ART. 1496
- Generally, delivery of the thing transfers ownership
SEC. 2. Delivery of the Thing Sold
ART. 1497
- When ownership is not transferred despite delivery
- Kinds of delivery: Real/actual, legal/constructive and quasi-tradition
ART. 1498
- 2 Kinds of constructive delivery: legal formalities and tradition simbolica
- Requisites of constructive delivery
ART. 1499
- Delivery of movable property: traditio longa manu and traditio brevi manu
ART. 1500
- Traditio Constitutum Possessorium
ART. 1501
- Manner of delivery of incorporeal property: constructive tradition and quasi-tradition
ART. 1502
- On sale or return transactions vis-à-vis on approval or on trial or satisfaction transactions
- Definitions, rules and exceptions
ART. 1503
- Instances when despite delivery of specific goods ownership is reserved
ART. 1504
- Risk of loss of specific goods
ART. 1505
- Buyer acquires the Seller’s rights; Exceptions
ART. 1506
- Effect if Seller has a voidable title to the thing
ART. 1507
- When a Document of Title (DT) is negotiable
ART. 1508
- Negotiable Document of Title (NDT) negotiated by delivery
ART. 1509
- Effects of a NDT when negotiated by indorsement and delivery
ART. 1510
- Effect of placing ‘non-negotiable’ in a DT
ART. 1511
- Effect of delivery when DT cannot be negotiated by mere delivery
- Effect of negotiation and indorsement of a non-negotiable instrument
ART. 1512
- Persons who may negotiate a NDT
ART. 1513
- Rights of a person to whom NDT is negotiated
ART. 1514
- Rights of a mere transferee
- Who can defeat transferee’s rights
ART. 1515
- Rule when indorsement is needed for negotiation
ART. 1516
- Warranties in negotiation
ART. 1517
- Non-liability of Indorser for failure of Bailee to comply
ART. 1518
- Non-impairment of the validity of a negotiated NDT whose owner was deprived of it by loss,
theft, fraud, accident, mistake, duress or conversion
ART. 1519
- Protection against non-attachment or non-levy
- Instances when Bailee can be compelled to surrender goods
ART. 1520
- Right of a creditor against his debtor who is the owner of a NDT
ART. 1521
- Place, time and manner of delivery
ART. 1522
- Remedies: when quantity is less than that agreed upon; when quantity is more than that
agreed upon; and when quantity is different
- When is there implied acceptance
ART. 1523
- When delivery to carrier is delivery to buyer
- Kinds of delivery to carrier
ART. 1524
- When vendor is not bound to deliver
ART. 1525
- Unpaid Seller
ART. 1526
- Rights of an Unpaid Seller
ART. 1527
- When Seller has possessory lien
ART. 1528
- Possessory lien after partial delivery
ART. 1529
- When possessory lien is lost
ART. 1530
- Right of Stoppage in Transitu
ART. 1531
- Goods: When in transit and when not
ART. 1532
- Manner of exercising the right of stoppage in transit
- Effects when it is exercised
- To whom notice is given
ART. 1533
- Right of resale: perishable goods and when there is deficiency or excess in the price
ART. 1534
- Right to rescind the transfer of title
- Effect of a replevin suit
ART. 1535
- Effect if Buyer has already sold the goods
ART. 1536
- When Seller is not bound to deliver because Buyer has lost benefit of the term in Art. 1198
ART. 1537
- Seller’s duty to preserve the thing and its accessions and accessories
- Right to the fruits
ART. 1538
- Effect of loss, deterioration or improvement before delivery
ART. 1539
- Sale of Real Estate by the Unit
- Unit price contract
ART. 1540
- When actual area or number is greater
ART. 1541
Arts. 1539 to 1540 applicable to judicial sales
ART. 1542
- Sale for a lump sum; A cuerpo cierto
- Necessity of delivering all the lands included in the boundaries
ART. 1543
- Actions arising from Arts. 1539-1542 must be brought within six months from date of
delivery
ART. 1544
- Double sale
- Rules of preference
SEC. 3. Conditions and warranties
ARTS. 1545 and 1546
- When warranty exists
ART. 1547
- Implied warranties against eviction and against hidden defects
SUB-SEC. 1. Warranty in case of Eviction
ART. 1548
- Eviction through Seller’s fault; Seller’s responsibility
- Elements of eviction
ART. 1549
- Vendee need not appeal
ART. 1550
- Effect of adverse possession that started before the sale
- When prescriptive period completed after transfer
ART. 1551
- Effect of non-payment of taxes
ART. 1552
- Eviction in case of judicial sales
ART. 1553
- Effect of Seller’s waiver of liability for eviction
ART. 1554
- Effect of Buyer’s waiver of Seller’s liability for eviction
ART. 1555
- Vendee’s rights to: value, income, cost, expenses and damages
ART. 1556
- Partial eviction and Vendee’s remedies
ART. 1557
- Necessity of a final judgement
ART. 1558
- Necessity of summoning the Seller in suit for the eviction of the Buyer
ART. 1559
- Necessity of making the Seller co-defendant of Buyer
ART. 1560
- Rule in case of non-apparent servitude
SUB-SEC. 2. Warranty against Hidden Defects of or Encumbrances upon the Thing Sold
ART. 1561
- Requisite/s to recover due to hidden defects: unfit for use intended
ART. 1562
- Merchantable quality
Art. 1563
- Sale under patent name or trade name
ART. 1564
- Usage of trade
ART. 1565
- Sale by sample
ART. 1566
- Seller’s responsibility for hidden defects even if he is in good faith
ART. 1567
- Vendee’s remedies in cases under Arts. 1561 to 1566
ART. 1568
- Effects of the loss of thing due to hidden defects
ART. 1569
- Effect if cause of the loss was a fortuitous event
ART. 1570
- Applicability to judicial sales
ART. 1571
- 6-month prescriptive period from date of delivery
ART. 1572
- Sale of 2 or more animals together
ART. 1573
- Applicability to other things
ART. 1574
- Absence of warranty against hidden defects
ART. 1575
- When sale of animals is void
ART. 1576
- Redhibitory defects
ART. 1577
- 40-day prescriptive period from date of delivery
ART. 1578
- If animal dies within 3 days
ART. 1579
- If sale of animal is rescinded
ART. 1580
- Buyer’s remedies when animal has redhibitory defects
ART. 1581
- Sale of large cattle governed by special laws
CHAPTER 5- OBLIGATIONS OF VENDEE
ART. 1582
- Buyer’s principal obligations
ART. 1583
- Delivery by instalments
ART. 1584
- Buyer’s right to examine deliveries; Exceptions
ART. 1585
- Acceptance of goods
ART. 1586
- Necessity for Vendee to notify Vendor of the breach of promise or warranty
ART. 1587
- Effect if Buyer justifiably refuses to accept delivery
ART. 1588
- Unjustifiable refusal by the Buyer
ART. 1589
- When Buyer has to pay interest for the price
ART. 1590
- When Buyer may suspend payment for the price
ART. 1591
- When Seller may sue for the rescission of the sale
ART. 1592
- Rescission of sale involving real property
ART. 1593
- Rescission of sale involving personal property
CHAPTER 6- ACTIONS FOR BREACH OF CONTRACT OF SALE OF GOODS
ART. 1594
- Governs breach of contract involving goods
ART. 1595
- If Buyer refuses to pay
ART. 1596
- Remedy of Seller if Buyer refuses to accept and pay
ART. 1597
- When Seller may totally rescind the contract
ART. 1598
- When Seller breached a contract to deliver specific or ascertained goods
ART. 1599
-Remedies if Seller commits breach of warranty
CHAPTER 7- EXTINGUISHMENT OF SALE
ART. 1600
- How sales are extinguished
SEC. 1. Conventional Redemption
ART. 1601
- When conventional redemption or pacto de retro takes place
ART. 1602
- Pacto de retro sale when considered an equitable mortgage
ARTS. 1603 and 1604
- When in doubt, an equitable mortgage is presumed
ART. 1605
- Remedy of reformation of instrument
ART. 1606
- Period within which to redeem
ART. 1607
- Necessity of a judicial order before registration of the consolidation of ownership
ART. 1608
- Right of Seller a retro to redeem property from third person
ART. 1609
- Buyer subrogated to Seller’s rights and actions
ART. 1610
- When Seller’s creditor can use Seller’s right of redemption
ART. 1611
- When Seller may be required to redeem the whole property although he sold only a part
thereof
ART. 1612
- When property owned in common is sold jointly and in the same contract by the co-owners
ART. 1613
- Buyer cannot be compelled to consent to a partial redemption
ART. 1614
- A co-owner may sell his share separately
ART. 1615
- Rule if Buyer a retro died and left several heirs
ART. 1616
- What Seller must give Buyer when redemption is made
ART. 1617
- Rule with respect to fruits
ART. 1618
- Right of Vendor a retro to recover thing sold free from all charges and mortgages
SEC. 2. Legal Redemption
ART. 1619
- Definition
- Distinguished from pre-emption
ART. 1620
- A co-owner may exercise right of legal redemption
ART. 1621
- An adjacent owner of rural property may exercise right of legal redemption
ART. 1622
- When land involved is urban
ART. 1623
- Period within which to exercise right of legal redemption
CHAPTER 8- ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS
ART. 1624
- When is there a perfected assignment
ART. 1625
- Requisites for the assignment to bind third persons
ART. 1626
- When Debtor pays Creditor before former knows of the assignment
ART. 1627
- Rights included in the assignment of rights
ART. 1628
- Warranties in the assignment of rights
ART. 1629
- Duration of warranty involving Debtor’s solvency
ART. 1630
- Warranty of a person who sells an inheritance without an enumeration of the things
included therein
ART. 1631
- Sale for a lump sum of whole of certain rights, rents or products
ART. 1632
- Duty of Vendor involving sale of inheritance
ART. 1633
- Duty of Buyer
ART. 1634
- Claim in litigation
ART. 1635
- When legal redemption not allowed
CHAPTER 9- GENERAL PROVISIONS
ART. 1636
- Definition of terms
ART. 1637
- Mortgage law and land registration law involving sale of real property
TITLE VII - BARTER OR EXCHANGE
ART. 1638
- Definition
ART. 1639
- When giver is not the owner of the thing given
ART. 1640
- When there is eviction
ART. 1641
- Applicability of the Sales provisions
TITLE VIII - LEASE
CHAPTER 1 - GENERAL PROVISIONS
ART. 1642
- Definition
- Kinds
ART. 1643
- Lease of things
- Characteristics
- Distinguished from other agreements/contracts
Art. 1644
- Lease of work/service (LWS)
- LWS vis-à-vis contract for a piece of work
ART. 1645
Rule involving lease of consumable goods
CHAPTER 2- LEASE OF URBAN AND RURAL LANDS
SEC. 1. General Provisions
ART. 1646
- Definitions
- Persons disqualified to be lessees
ART. 1647
- Necessity to secure proper authority when lease is to be recorded
ART. 1648
- Recording of lease involving real property
- Consequences if not recorded
ART. 1649
- Assignment of lease
ART. 1650
- Lessee’s right to sub-lease vis-à-vis assignment
ART. 1651
- Sub-lessee’s liability towards lessor
- Accion directa by lessor
ART. 1652
- Sub-lessee’s liability for rent
- Accion directa by lessor
ART. 1653
- Applicability of warranties on Sales
SEC. 2. Rights and Obligations of Lessor and Lessee
ART. 1654
- Duties of Lessor
ART. 1655
- Effect when the thing leased is totally or partially lost
ART. 1656
- Lessor’s right to start and continue engaging in lessee’s same business or industry
ART. 1657
- Lessee’s obligations
ART. 1658
- When lessee may suspend payment of rent
ART. 1659
- Alternative remedies of aggrieved party in case of non-fulfillment of duties
ART. 1660
- When place is dangerous to life or health
ART. 1661
- Alteration of the form of the lease by the lessor
ART. 1662
- Rule in case of urgent repair
ART. 1663
- Lessee’s duties regarding usurpation and repairs : if lessor fails to comply or if lessor fails to
make urgent repairs
ART. 1664
- 2 kinds of trespass involving the leased property
ART. 1665
- Lessee’s duty to return the thing leased just as he received it
ART. 1666
- Lessee is presumed to have received the thing leased in good condition
ART. 1667
- Lessee responsible for deterioration and loss
ART. 1668
- Lessee responsible for his own acts, members of his household, his guests and visitors
ART. 1669
- Lease made for a determinate time to end on the day fixed without need of demand
ART. 1670
- Implied new lease
- Tacita Reconduccion and its effects
ART. 1671
- If lessor objects to lessee’s continued possession
ART. 1672
- Effect of implied new leased on sureties and guarantors
ART. 1673
- Causes for judicial ejectment of lessee
ART. 1674
- Writ of Preliminary Mandatory Injunction in ejectment cases
- When may lessor avail of it
ART. 1675
- Exception to Art. 1673
ART. 1676
- When leased land is sold
ART. 1677
- Buyer a retro cannot eject lessee until the end of the redemption period
ART. 1678
- Lessee’s right to useful improvements and ornamental expenses
ART. 1679
- Place and time of payment for rent
SEC. 3. Special Provisions for Leases of Rural Lands
ART. 1680
- Effect of land’s sterility in case of rural lease
- Effect of loss due to a fortuitous event
ART. 1681
- Loss of fruits after separation from stalk, root or trunk
ART. 1682
- Duration of rural lease
ART. 1683
- Use of premises for preparatory labor
ART. 1684
- Land tenancy on shares governed by special laws, laws on partnership, stipulation of parties
and customs of the place
ART. 1685
- Ejectment of tenants
SEC. 4. Lease of Urban Lands
ART. 1686
- When urban lessor is liable for repairs
ART. 1687
- When duration of lease not fixed
ART. 1688
- Duration of leased furniture for the same period as duration of the leased premises
