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C.

DOUBLE SALE

possesses in any case contrary to the foregoing.

Article 1544. (P1) If the same thing should have


been sold to different vendees, the ownership
shall be transferred to the person who may have
first taken possession thereof in good faith, if it
should be movable property.

Mistake upon a doubtful or difficult question of law


may be the basis of good faith. (433a)

Article 526. He is deemed a possessor in good


faith who is not aware that there exists in his title
or mode of acquisition any flaw which invalidates
it.

Article 528. Possession acquired in good faith


does not lose this character except in the case
and from the moment facts exist which show that
the possessor is not unaware that he possesses
the thing improperly or wrongfully. (435a)

He is deemed a possessor in bad faith who


possesses in any case contrary to the foregoing.
Mistake upon a doubtful or difficult question of law
may be the basis of good faith. (433a)
Article 527. Good faith is always presumed, and
upon him who alleges bad faith on the part of a
possessor rests the burden of proof. (434)
1. General Rule prior tempore, prior jure
2. Requisites
3. Purchaser in Good Faith
Article 526. He is deemed a possessor in good
faith who is not aware that there exists in his title
or mode of acquisition any flaw which invalidates
it.
He is deemed a possessor in bad faith who

Article 527. Good faith is always presumed, and


upon him who alleges bad faith on the part of a
possessor rests the burden of proof. (434)

4. Sale of Movables
Article 1544. If the same thing should have been
sold to different vendees, the ownership shall be
transferred to the person who may have first
taken possession thereof in good faith, if it should
be movable property.
Should it be immovable property, the ownership
shall belong to the person acquiring it who in good
faith first recorded it in the Registry of Property.
Should there be no inscription, the ownership shall
pertain to the person who in good faith was first in
the possession; and, in the absence thereof, to
the person who presents the oldest title, provided
there is good faith. (1473)
Article 1497. The thing sold shall be understood
as delivered, when it is placed in the control and
possession of the vendee. (1462a)

Article 1498. When the sale is made through a


public instrument, the execution thereof shall be
equivalent to the delivery of the thing which is the
object of the contract, if from the deed the
contrary does not appear or cannot clearly be
inferred.
With regard to movable property, its delivery may
also be made by the delivery of the keys of the
place or depository where it is stored or kept.
(1463a)
Article 1499. The delivery of movable property
may likewise be made by the mere consent or
agreement of the contracting parties, if the thing
sold cannot be transferred to the possession of
the vendee at the time of the sale, or if the latter
already had it in his possession for any other
reason. (1463a)
Article 1500. There may also
constitutum possessorium. (n)

be

tradition

Article 1501. With respect to incorporeal


property, the provisions of the first paragraph of
article 1498 shall govern. In any other case
wherein said provisions are not applicable, the
placing of the titles of ownership in the possession
of the vendee or the use by the vendee of his
rights, with the vendor's consent, shall be
understood as a delivery. (1464)
5. Sale of Immovables
Article 1501. (P2) Should it be immovable

property, the ownership shall belong to the person


acquiring it who in good faith first recorded it in
the Registry of Property.
6. Sale by Virtue of Execution or Judgment
7. Unregistered Land
Section 113. Recording of instruments relating
to unregistered lands. No deed, conveyance,
mortgage, lease, or other voluntary instrument
affecting land not registered under the Torrens
system shall be valid, except as between the
parties thereto, unless such instrument shall have
been recorded in the manner herein prescribed in
the office of the Register of Deeds for the province
or city where the land lies.
(a) The Register of Deeds for each province or city
shall keep a Primary Entry Book and a Registration
Book. The Primary Entry Book shall contain,
among other particulars, the entry number, the
names of the parties, the nature of the document,
the date, hour and minute it was presented and
received. The recording of the deed and other
instruments relating to unregistered lands shall be
effected by any of annotation on the space
provided therefor in the Registration Book, after
the same shall have been entered in the Primary
Entry Book.
(b) If, on the face of the instrument, it appears
that it is sufficient in law, the Register of Deeds

shall forthwith record the instrument in the


manner provided herein. In case the Register of
Deeds refuses its administration to record, said
official shall advise the party in interest in writing
of the ground or grounds for his refusal, and the
latter may appeal the matter to the Commissioner
of Land Registration in accordance with the
provisions of Section 117 of this Decree. It shall be
understood that any recording made under this
section shall be without prejudice to a third party
with a better right.
(c) After recording on the Record Book, the
Register of Deeds shall endorse among other
things, upon the original of the recorded
instruments, the file number and the date as well
as the hour and minute when the document was
received for recording as shown in the Primary
Entry Book, returning to the registrant or person
in interest the duplicate of the instrument, with
appropriate annotation, certifying that he has
recorded the instrument after reserving one copy
thereof to be furnished the provincial or city
assessor as required by existing law.
(d) Tax sale, attachment and levy, notice of lis
pendens, adverse claim and other instruments in
the nature of involuntary dealings with respect to
unregistered lands, if made in the form sufficient
in law, shall likewise be admissible to record under
this section.
(e) For the services to be rendered by the Register
of Deeds under this section, he shall collect the
same amount of fees prescribed for similar

services for the registration of deeds


instruments concerning registered lands.

or

8. First Possessor in Good Faith


9. Oldest Title
Article 1544. (P3) If the same thing should have
been sold to differenShould there be no
inscription, the ownership shall pertain to the
person who in good faith was first in the
possession; and, in the absence thereof, to the
person who presents the oldest title, provided
there is good faith. (1473)

D. RISK OF LOSS
1. General Rule
Article 1263. In an obligation to deliver a generic
thing, the loss or destruction of anything of the
same kind does not extinguish the obligation. (n)
2. Loss Before Perfection
3. Loss at the Time of Perfection
Article 1493. If at the time the contract of sale is
perfected, the thing which is the object of the
contract has been entirely lost, the contract shall
be without any effect.
But if the thing should have been lost in part only,
the vendee may choose between withdrawing
from the contract and demanding the remaining
part, paying its price in proportion to the total sum
agreed upon. (1460a)
Article 1494. Where the parties purport a sale of
specific goods, and the goods without the
knowledge of the seller have perished in part or
have wholly or in a material part so deteriorated
in quality as to be substantially changed in
character, the buyer may at his option treat the
sale:
(1) As avoided; or
(2) As valid in all of the existing goods or in so
much thereof as have not deteriorated, and as

binding the buyer to pay the agreed price for the


goods in which the ownership will pass, if the sale
was divisible. (n)
4. Loss After Perfection but Before Delivery
Article 1480. Any injury to or benefit from the
thing sold, after the contract has been perfected,
from the moment of the perfection of the contract
to the time of delivery, shall be governed by
articles 1163 to 1165, and 1262.
This rule shall apply to the sale of fungible things,
made independently and for a single price, or
without consideration of their weight, number, or
measure.
Should fungible things be sold for a price fixed
according to weight, number, or measure, the risk
shall not be imputed to the vendee until they have
been weighed, counted, or measured and
delivered, unless the latter has incurred in delay.
(1452a)
Article 1163. Every person obliged to give
something is also obliged to take care of it with
the proper diligence of a good father of a family,
unless the law or the stipulation of the parties
requires another standard of care. (1094a)
Article 1164. The creditor has a right to the fruits
of the thing from the time the obligation to deliver
it arises. However, he shall acquire no real right
over it until the same has been delivered to him.
(1095)
Article 1165. When what is to be delivered is a

determinate thing, the creditor, in addition to the


right granted him by article 1170, may compel the
debtor to make the delivery.
If the thing is indeterminate or generic, he may
ask that the obligation be complied with at the
expense of the debtor.
If the obligor delays, or has promised to deliver
the same thing to two or more persons who do not
have the same interest, he shall be responsible for
any fortuitous event until he has effected the
delivery. (1096)
Article 1189. When the conditions have been
imposed with the intention of suspending the
efficacy of an obligation to give, the following
rules shall be observed in case of the
improvement, loss or deterioration of the thing
during the pendency of the condition:
(1) If the thing is lost without the fault of the
debtor, the obligation shall be extinguished;
(2) If the thing is lost through the fault of the
debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it perishes,
or goes out of commerce, or disappears in such a
way that its existence is unknown or it cannot be
recovered;
(3) When the thing deteriorates without the fault
of the debtor, the impairment is to be borne by
the creditor;
(4) If it deteriorates through the fault of the
debtor, the creditor may choose between the

rescission of the obligation and its fulfillment, with


indemnity for damages in either case;
(5) If the thing is improved by its nature, or by
time, the improvement shall inure to the benefit of
the creditor;
(6) If it is improved at the expense of the debtor,
he shall have no other right than that granted to
the usufructuary. (1122)
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.
When by law or stipulation, the obligor is liable
even for fortuitous events, the loss of the thing
does not extinguish the obligation, and he shall be
responsible for damages. The same rule applies
when the nature of the obligation requires the
assumption of risk. (1182a)
5. After Delivery
Article 1504. Unless otherwise agreed, the goods
remain at the seller's risk until the ownership
therein is transferred to the buyer, but when the
ownership therein is transferred to the buyer the
goods are at the buyer's risk whether actual
delivery has been made or not, except that:
(1) Where delivery of the goods has been made to
the buyer or to a bailee for the buyer, in
pursuance of the contract and the ownership in

the goods has been retained by the seller merely


to secure performance by the buyer of his
obligations under the contract, the goods are at
the buyer's risk from the time of such delivery;

(2) Where actual delivery has been delayed


through the fault of either the buyer or seller the
goods are at the risk of the party in fault. (n)

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