BASADRE, Jessa G.
October 13, 2020
BSA Regulatory Framework for
Business Transactions
ASSIGNMENT No. 2
1. Sam is the owner of a parcel of unregistered land in Alfonso, Cavite. Sam executed a
notarized deed of sale over the land in favor of Abet. The deed of sale was not registered nor
did Abet occupy the land. Subsequently Sam sold the same parcel of land in favor of Bobot.
The deed of sale in favor of Bobot was registered with the register of deeds. Bobot occupied
the land after the execution of the sale. When Abet learned of the sale in favor of Bobot, Abet
filed an action for annulment of the sale against Bobot. Will Abet’s action prosper? (20 points) j
Abet’s action for annulment would not be in effect for reason that Bobot acquires now
the ownership of the land and actual possession of the said property. Citing Article 1544
which states, “..should it be immovable property, the ownership shall belong to the person
acquiring it who in good faith recorded it in the Registry of Property”. Therefore, Abet has
no right over the land, he failed to register the deed of sale nor occupy the land, while
Bobot on the other hand, who in good faith, registered the deed of sale first, so he must
acquire ownership over the land.
2. M bought from S a specific parcel of land for Php1,000,000.00. Three months after, M sold
the same land to her daughter for Php50,000.00. Is the sale to M's daughter valid? (10 points)
s
The Civil Code enumerates those who cannot participate in a sale. These are: (1)
Guardians, who cannot acquire property under his guardianship; (2) Agents, who cannot
acquire property whose administration or sale may have been entrusted to him, unless
the principal consents to the sale; (3) Executors and administrators, who cannot acquire
property of the estate under their administration; (4) Public officers and employees, who
cannot acquire property of the estate entrusted to them; and (5) Justices, judges,
prosecuting attorneys, clerks of courts, and other employees connected with the
administration of justice, who cannot acquire property and rights in litigation levied upon
an execution before the court in their respective jurisdiction; and (6) others, who are
specifically prohibited by law (Article 149). As long as the vendee is not one of those
enumerated above, he/she can buy the property of your parents, assuming that there is
the meeting of the binds of the both parties and other essential requisites for the
perfection of the contract.
3. S on March 1, 2019 sold for 1M to B a house and lot. It was agreed that the delivery of the
house and lot and payment would be made on April 1, 2020. Unfortunately, X, a stranger
negligently set the house on fire on March 2, 2019 which completely destroyed it. On April 1,
2020, does S still have to deliver anything, and does B have to pay for anything? (20 points) s
One of the essential requisites of a contract of sale is the object or subject matter
which refers to a determinate thing. In the previous lesson on Obligation and Contracts,
stated in Article 1262, “An obligation which consists in the delivery of a determinate thing
shall be extinguished if it should be lost or destroyed without the fault of the debtor, and
before he has incurred in delay”. With that said, the obligation of S to deliver the thing or
anything is extinguished. In addition, as a general rule, the debtor or in this case the
vendor, is not liable if his failure to preserve the thing is not due to his fault or negligence
but to fortuitious event or force majeure (Art. 1174). For the second question, if B does still
have to pay for anything, as per res perit domino, when a thing is lost or destroyed, it is
lost to the person who was the owner of it at the time. It is only after the delivery, actual or
constructive, that a vendee acquires a real right or ownership over it (Art, 1164). After
delivery, the risk of loss of the thing sold is then borne by the vendee, but S is yet to
deliver the thing or house on April 1, 2020. So as of March 2, 2019, S still has ownership
on the house. Therefore, no payment shall be made against B.
4. B bought from S (a minor), a ferrari - flaming red, B sold the same car to X, a buyer in good
faith, Is X the owner of the car? (10 points) s
In case of double sale, where the same property (movable) is sold by the vendor to
different vendee, the ownership shall be acquired by the vendee who first takes the
possession in good faith. S being a minor is still considered as a vendee given that the
thing sold is a necessary needed for transportation as well as those needed for
sustenance, dwelling, clothing and medical attendance, assuming that S or his family has
the financial capacity (Art. 194, Family Code). Considering S first took possession in good
faith of the ferrari, therefore the ownership is acquired by him.
5. B, in good faith, bought a diamond ring from S. Two years after, X identified the ring as one
she lost about a year ago. There is no question as to the veracity of X's claim. Can X get the
ring from B without reimbursing B the value of the ring even if B is a buyer in good faith? (10
points) s
Applying Article 559 of the Civil Code which states, “The possession of movable
property acquired in good faith is equivalent to title. Nevertheless, one who lost any
movable or has been unlawfully deprived thereof, may recover it from the person in
possession of the same.
If the possessor of a movable lost or of which the owner has been unlawfully deprived,
has acquired it in good faith at a public sale, the owner cannot obtain its return without
reimbursing the price paid therefor.” Therefore, X is allowed to recover the thing lost
subject to reimbursement on the price paid by S.
