FIRST SEMESTER - SCHOOL YEAR 2013-2014

TITLE VI - SALES
CHAPTER 1 - NATURE AND FORM OF THE CONTRACT
ART. 1458 ART. 1459 ART. 1460 ART. 1461 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 Having potential existence Mere hope or expectancy Vain hope or expectancy Emptio Rei Speratae vis--vis Emptio Spei Determinate Determinable The thing must be licit Vendor must have the right to transfer ownership Definition Characteristics Elements Stages Kinds Distinguished from other agreements/contracts

ART. 1463 ART. 1464 Sale of an undivided share of a specific mass involving fungible goods Sale of an undivided interest in a thing

ART. 1465 ART. 1466 ART. 1467 ART. 1468 ART. 1469 ART. 1470 ART. 1471 ART. 1472 ART. 1473 ART. 1474 ART. 1475 When is there a perfected contract of sale face to face; thru correspondence and when subject to a resolutory condition Effect if price can never be determined Reasonable price rule when there is already partial delivery Price can never be left alone to one partys discretion unless agreed upon by the parties Certainty of price relating to securities, grains, liquids and other things Simulated price and its effect Gross inadequacy of price Certainty of the price When no amount is stipulated If one acted in bad faith or by mistake Contract of Sale vis--vis Barter Contract of Sale vis-a-vis Contract for a Piece of Work Contract of Sale vis--vis Contract of Agency to Sell Things subject to a resolutory condition

ART. 1476 ART. 1477 ART. 1478 ART. 1479 ART. 1480 -

Consensual and Bilateral characteristics of a contract of sale Requirements for perfection Formalities for perfection Statute of Frauds

Sale by auction and when perfected

When is ownership transferred Kinds of delivery

Pactum Reservati Dominii

Mutual promise/ bilateral promise via-a-vis accepted unilateral promise Policitacion Option contract/option money

Who bears the risk of loss of the object before perfection, after perfection before delivery and after delivery

ART. 1481 ART. 1482 ART. 1483 ART. 1484 Sale of personal property in instalment (RECTO LAW) Vendors remedies when vendee failed to pay Forms of contract of sale: written, oral, partly in both, inferred from parties conduct Earnest money- its definition and significance Earnest money vis--vis option money Right of first refusal Sale by description Sale by Sample Sale by description and sample

ART. 1485 ART. 1486 ART. 1487 ART. 1488 -

Inapplicability of Art. 1484

Art. 1484 applies to lease of personal property with option to buy

Non-return of paid instalments MACEDA LAW

Execution and registration expenses borne by the vendor

Expropriation for public use by the government Requisites for Expropriation

CHAPTER 2 - CAPACITY TO BUY OR SELL

ART. 1489 ART. 1490 ART.1491 ART. 1492 -Arts. 1490 to 1491 applicable to sales in legal redemption, compromises and renunciations Persons relatively incapacitated to buy Spouses cannot sell property to each other; Exceptions Absolute incapacity vis--vis relative incapacity Purchase by minors

CHAPTER 3- EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS BEEN LOST
ART. 1493 ART. 1494 Loss of specific goods Complete loss vis--vis partial loss When object is lost before sale

CHAPTER 4- OBLIGATIONS OF THE VENDOR

SEC. 1. General Provisions ART. 1495 ART. 1496 Generally, delivery of the thing transfers ownership 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

SEC. 2. Delivery of the Thing Sold ART. 1497 ART. 1498 ART. 1499 ART. 1500 ART. 1501 ART. 1502 ART. 1503 Instances when despite delivery of specific goods ownership is reserved On sale or return transactions vis--vis on approval or on trial or satisfaction transactions Definitions, rules and exceptions Manner of delivery of incorporeal property: constructive tradition and quasi-tradition Traditio Constitutum Possessorium Delivery of movable property: traditio longa manu and traditio brevi manu 2 Kinds of constructive delivery: legal formalities and tradition simbolica Requisites of constructive delivery When ownership is not transferred despite delivery Kinds of delivery: Real/actual, legal/constructive and quasi-tradition

ART. 1504 ART. 1505 ART. 1506 ART. 1507 ART. 1508 ART. 1509 ART. 1510 ART. 1511 ART. 1512 ART. 1513 ART. 1514 ART. 1515 Rights of a mere transferee Who can defeat transferees rights Rights of a person to whom NDT is negotiated Persons who may negotiate a NDT Effect of delivery when DT cannot be negotiated by mere delivery Effect of negotiation and indorsement of a non-negotiable instrument Effect of placing non-negotiable in a DT Effects of a NDT when negotiated by indorsement and delivery Negotiable Document of Title (NDT) negotiated by delivery When a Document of Title (DT) is negotiable Effect if Seller has a voidable title to the thing Buyer acquires the Sellers rights; Exceptions Risk of loss of specific goods

ART. 1516 ART. 1517 ART. 1518 -

Rule when indorsement is needed for negotiation

Warranties in negotiation

Non-liability of Indorser for failure of Bailee to comply

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 ART. 1520 ART. 1521 ART. 1522 ART. 1523 ART. 1524 ART. 1525 ART. 1526 Unpaid Seller When vendor is not bound to deliver When delivery to carrier is delivery to buyer Kinds of delivery to carrier 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 Place, time and manner of delivery Right of a creditor against his debtor who is the owner of a NDT Protection against non-attachment or non-levy Instances when Bailee can be compelled to surrender goods

ART. 1527 ART. 1528 ART. 1529 ART. 1530 ART. 1531 ART. 1532 ART. 1533 ART. 1534 ART. 1535 ART. 1536 ART. 1537 -

Rights of an Unpaid Seller

When Seller has possessory lien

Possessory lien after partial delivery

When possessory lien is lost

Right of Stoppage in Transitu

Goods: When in transit and when not

Manner of exercising the right of stoppage in transit Effects when it is exercised To whom notice is given

Right of resale: perishable goods and when there is deficiency or excess in the price

Right to rescind the transfer of title Effect of a replevin suit

Effect if Buyer has already sold the goods

When Seller is not bound to deliver because Buyer has lost benefit of the term in Art. 1198

Sellers duty to preserve the thing and its accessions and accessories Right to the fruits

ART. 1538 ART. 1539 ART. 1540 ART. 1541 Arts. 1539 to 1540 applicable to judicial sales ART. 1542 ART. 1543 Actions arising from Arts. 1539-1542 must be brought within six months from date of delivery Sale for a lump sum; A cuerpo cierto Necessity of delivering all the lands included in the boundaries When actual area or number is greater Sale of Real Estate by the Unit Unit price contract Effect of loss, deterioration or improvement before delivery

ART. 1544 Double sale Rules of preference

SEC. 3. Conditions and warranties ARTS. 1545 and 1546 ART. 1547 Implied warranties against eviction and against hidden defects When warranty exists

SUB-SEC. 1. Warranty in case of Eviction ART. 1548 Eviction through Sellers fault; Sellers responsibility

ART. 1549 ART. 1550 ART. 1551 ART. 1552 ART. 1553 ART. 1554 ART. 1555 ART. 1556 ART. 1557 ART. 1558 ART. 1559 ART. 1560 -

Elements of eviction

Vendee need not appeal

Effect of adverse possession that started before the sale When prescriptive period completed after transfer

Effect of non-payment of taxes

Eviction in case of judicial sales

Effect of Sellers waiver of liability for eviction

Effect of Buyers waiver of Sellers liability for eviction

Vendees rights to: value, income, cost, expenses and damages

Partial eviction and Vendees remedies

Necessity of a final judgement

Necessity of summoning the Seller in suit for the eviction of the Buyer

Necessity of making the Seller co-defendant of Buyer

Rule in case of non-apparent servitude

SUB-SEC. 2. Warranty against Hidden Defects of or Encumbrances upon the Thing Sold ART. 1561 ART. 1562 Art. 1563 ART. 1564 ART. 1565 ART. 1566 ART. 1567 ART. 1568 ART. 1569 ART. 1570 ART. 1571 ART. 1572 6-month prescriptive period from date of delivery Applicability to judicial sales Effect if cause of the loss was a fortuitous event Effects of the loss of thing due to hidden defects Vendees remedies in cases under Arts. 1561 to 1566 Sellers responsibility for hidden defects even if he is in good faith Sale by sample Usage of trade Sale under patent name or trade name Merchantable quality Requisite/s to recover due to hidden defects: unfit for use intended

ART. 1573 ART. 1574 ART. 1575 ART. 1576 ART. 1577 ART. 1578 ART. 1579 ART. 1580 ART. 1581 -

Sale of 2 or more animals together

Applicability to other things

Absence of warranty against hidden defects

When sale of animals is void

Redhibitory defects

40-day prescriptive period from date of delivery

If animal dies within 3 days

If sale of animal is rescinded

Buyers remedies when animal has redhibitory defects

Sale of large cattle governed by special laws

CHAPTER 5- OBLIGATIONS OF VENDEE

ART. 1582 ART. 1583 ART. 1584 Delivery by instalments Buyers principal obligations

ART. 1585 ART. 1586 ART. 1587 ART. 1588 ART. 1589 ART. 1590 ART. 1591 ART. 1592 ART. 1593 -

Buyers right to examine deliveries; Exceptions

Acceptance of goods

Necessity for Vendee to notify Vendor of the breach of promise or warranty

Effect if Buyer justifiably refuses to accept delivery

Unjustifiable refusal by the Buyer

When Buyer has to pay interest for the price

When Buyer may suspend payment for the price

When Seller may sue for the rescission of the sale

Rescission of sale involving real property

Rescission of sale involving personal property

CHAPTER 6- ACTIONS FOR BREACH OF CONTRACT OF SALE OF GOODS

ART. 1594 ART. 1595 ART. 1596 If Buyer refuses to pay Governs breach of contract involving goods

ART. 1597 ART. 1598 ART. 1599

Remedy of Seller if Buyer refuses to accept and pay

When Seller may totally rescind the contract

When Seller breached a contract to deliver specific or ascertained goods

-Remedies if Seller commits breach of warranty

CHAPTER 7- EXTINGUISHMENT OF SALE

ART. 1600 How sales are extinguished

SEC. 1. Conventional Redemption ART. 1601 ART. 1602 Pacto de retro sale when considered an equitable mortgage When conventional redemption or pacto de retro takes place

ARTS. 1603 and 1604 ART. 1605 ART. 1606 ART. 1607 Necessity of a judicial order before registration of the consolidation of ownership Period within which to redeem Remedy of reformation of instrument When in doubt, an equitable mortgage is presumed

ART. 1608

ART. 1609 ART. 1610 ART. 1611 -

Right of Seller a retro to redeem property from third person

Buyer subrogated to Sellers rights and actions

When Sellers creditor can use Sellers right of redemption

When Seller may be required to redeem the whole property although he sold only a part thereof

ART. 1612 ART. 1613 ART. 1614 ART. 1615 ART. 1616 ART. 1617 ART. 1618 Right of Vendor a retro to recover thing sold free from all charges and mortgages Rule with respect to fruits What Seller must give Buyer when redemption is made Rule if Buyer a retro died and left several heirs A co-owner may sell his share separately Buyer cannot be compelled to consent to a partial redemption When property owned in common is sold jointly and in the same contract by the co-owners

SEC. 2. Legal Redemption ART. 1619 Definition Distinguished from pre-emption

ART. 1620 ART. 1621 ART. 1622 ART. 1623 Period within which to exercise right of legal redemption When land involved is urban An adjacent owner of rural property may exercise right of legal redemption A co-owner may exercise right of legal redemption

CHAPTER 8- ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS

ART. 1624 ART. 1625 ART. 1626 ART. 1627 ART. 1628 ART. 1629 ART. 1630 Warranty of a person who sells an inheritance without an enumeration of the things included therein Duration of warranty involving Debtors solvency Warranties in the assignment of rights Rights included in the assignment of rights When Debtor pays Creditor before former knows of the assignment Requisites for the assignment to bind third persons When is there a perfected assignment

ART. 1631

ART. 1632 ART. 1633 ART. 1634 ART. 1635 -

Sale for a lump sum of whole of certain rights, rents or products

Duty of Vendor involving sale of inheritance

Duty of Buyer

Claim in litigation

When legal redemption not allowed

CHAPTER 9- GENERAL PROVISIONS

ART. 1636 ART. 1637 Mortgage law and land registration law involving sale of real property Definition of terms

TITLE VII - BARTER OR EXCHANGE

ART. 1638 ART. 1639 ART. 1640 ART. 1641 Applicability of the Sales provisions When there is eviction When giver is not the owner of the thing given Definition

TITLE VIII - LEASE

CHAPTER 1 - GENERAL PROVISIONS
ART. 1642 ART. 1643 Art. 1644 ART. 1645 Rule involving lease of consumable goods Lease of work/service (LWS) LWS vis--vis contract for a piece of work Lease of things Characteristics Distinguished from other agreements/contracts Definition Kinds

CHAPTER 2- LEASE OF URBAN AND RURAL LANDS

SEC. 1. General Provisions
ART. 1646 ART. 1647 ART. 1648 ART. 1649 Assignment of lease Recording of lease involving real property Consequences if not recorded Necessity to secure proper authority when lease is to be recorded Definitions Persons disqualified to be lessees

ART. 1650 ART. 1651 ART. 1652 ART. 1653 Applicability of warranties on Sales Sub-lessees liability for rent Accion directa by lessor Sub-lessees liability towards lessor Accion directa by lessor Lessees right to sub-lease vis--vis assignment

SEC. 2. Rights and Obligations of Lessor and Lessee ART. 1654 ART. 1655 ART. 1656 ART. 1657 ART. 1658 ART. 1659 ART. 1660 When place is dangerous to life or health Alternative remedies of aggrieved party in case of non-fulfillment of duties When lessee may suspend payment of rent Lessees obligations Lessors right to start and continue engaging in lessees same business or industry Effect when the thing leased is totally or partially lost Duties of Lessor

ART. 1661 ART. 1662 ART. 1663 Lessees duties regarding usurpation and repairs : if lessor fails to comply or if lessor fails to make urgent repairs Rule in case of urgent repair Alteration of the form of the lease by the lessor

ART. 1664 ART. 1665 ART. 1666 ART. 1667 ART. 1668 ART. 1669 ART. 1670 ART. 1671 ART. 1672 If lessor objects to lessees continued possession Implied new lease Tacita Reconduccion and its effects Lease made for a determinate time to end on the day fixed without need of demand Lessee responsible for his own acts, members of his household, his guests and visitors Lessee responsible for deterioration and loss Lessee is presumed to have received the thing leased in good condition Lessees duty to return the thing leased just as he received it 2 kinds of trespass involving the leased property

ART. 1673 ART. 1674 ART. 1675 ART. 1676 ART. 1677 ART. 1678 ART. 1679 -

Effect of implied new leased on sureties and guarantors

Causes for judicial ejectment of lessee

Writ of Preliminary Mandatory Injunction in ejectment cases When may lessor avail of it

Exception to Art. 1673

When leased land is sold

Buyer a retro cannot eject lessee until the end of the redemption period

Lessees right to useful improvements and ornamental expenses

Place and time of payment for rent

SEC. 3. Special Provisions for Leases of Rural Lands ART. 1680 ART. 1681 ART. 1682 ART. 1683 Use of premises for preparatory labor Duration of rural lease Loss of fruits after separation from stalk, root or trunk Effect of lands sterility in case of rural lease Effect of loss due to a fortuitous event

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 ART. 1687 ART. 1688 Duration of leased furniture for the same period as duration of the leased premises When duration of lease not fixed When urban lessor is liable for repairs