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Sales Syllabus

In General
A. Essential Requirements of Contracts
Arts.
1305,
1306,
1318
&
1356.
1. Definition - Art. 1458(1)
Villonco Realty Company v. Bormaheco, Inc., 65 SCRA 352, July 25, 1975
Ang Yu Asuncion v. Court of Appeals, 238 SCRA 602, December 2, 1994
Vda. De Ape v. Court of Appeals, 456 SCRA 193, April 15, 2005
Torcuator v. Bernabe, 459 SCRA 439, June 8, 2005

2. History
Governing Law RA No. 386 (August 30, 1950); Arts. 1488, 1637
Commercial & Civil Sales
3. Characteristics
1. consensual Art. 1475
2. bilateral - Art. 1458
3. onerous Art. 1350
4. commutative - Art. 2010
5. principal
6. nominate Art. 1458
Gaite v. Fonacier, 2 SCRA 830, July 31, 1961
4. Stages
1. Negotiation
2. Perfection Arts. 1315, 1475
3. Performance - Arts. 1191, 1403(2)
4. Consummation
Ainza v. Padua, 462 SCRA 614, June 30, 2005
5. Kinds of Sale - Arts. 1458(2), 1488, 1544, 1403,
Maceda Law, Recto Law, 1477, 1501)
1. As to the nature of the subject matter
1. Sale of real property
2. Sale of personal property
2. As to whether the object is tangible or intangible/corporeal or incorporeal
1. sale of thing
2. sale of right
3. As to validity or defect of the transaction
1. valid sale
2. rescissible
3. voidable
4. unenforceable
5. void
4. As to the presence or absence of condition

1. absolute sale

2. conditional sale [Art. 1458] 1461,1462,1465,1503

3. contract to sell

McCullough v. Berger, 43 Phil 823, September 26, 1922


Dichoso v. Roxas, 5 SCRA 781, July 31, 1962
Luzon Brokerage v. Maritime Building, 43 SCRA 93, January 21, 1972
Portic v. Cristobal, 456 SCRA 577, April 22, 2005
Heirs of Jesus M. Mascunana v. Court of Appeals, 461 SCRA 186, June 23, 2005
Ursal v. Court of Appeals, 473 SCRA 52, October 14, 2005
Carrascoso, Jr. v. Court of Appeals, 477 SCRA 666, December 14, 2005
Sacobia Hills Devt Corp. v. Ty, 470 SCRA 395, September 20, 2005
Keppel Bank V. Adao, 473 SCRA 372, October 19, 2005
Edrada v. Ramos, 468 SCRA 597, August 31, 2005
6. Distinguished from other transactions
1. Contract for a Piece of Work (Massachusetts Rule) - Art. 1467
2. Contract of Lease with Option to Buy
3. Dacion en Pago Art. 1245
4. Barter or Exchange Arts. 1468, 1638, 1954
5. Agency to Sell Art. 1466
Heacock v. Buntal Manufacturing Co., 66 Phil 245, September 26, 1938
Quiroga v. Parsons Hardware, 38 Phil 501, August 23, 1918
Ker v. Lingad, 38 SCRA 524, April 30, 1971
Del Monte Phils. v. Aragones, 461 SCRA 139, June 23, 2005
II.Elements of a Contract of Sale
7. Essential Elements
1. Consent of the contracting parties
Parties to the Contract
Capacity of Parties- Arts. 1489, 1390, 1403
1. absolute - Arts. 1327-1328, Art. 234Family Code (FC) as amended by RA 6809
2. relative Art. XII, Secs. 7 & 8, 1987 Constitution
Arts. 1490-1492, 1533(5), 1476(4), 124FC,
Rodriguez v. Mactal, 60 Phil 13, April 4, 1934 Rubias v. Batiller, 51 SCRA 120, May
29, 1973
Miguel v. Catalino, 26 SCRA 234, November 29, 1968
Estate of Salvador Serra Serra v. Heirs of Primitivo Hernaez, 466 SCRA 120, August
9, 2005 Mapalo v. Mapalo, 17 SCRA 114, May 19, 1966
Medina vs CIR 1 SCRA 302 1961
Calimlim-Canullas v Fortun129 SCRA 675 (1984)

2. Subject matter (things & rights)- Arts. 1347, 1311, 1636(goods)


A. Requisites of
a
Valid Subject
Matter

Arts. 1459,
1347,
1306,
1409,
1411,
1416
1. Must
be
1347, 1348 &

Existing,
1462

a. Emptio
1347

Rei

Speratae/Emptio

Spei

Arts. 1461

Pichel

v.

Alonzo,

SCRA

34

(1982)

b. Subject

to

Resolutory

Condition

Arts. 1465,

Arsenal

v.

IAC,

143

Licit

Arts. 1347,

1459,

v.

CA,

56

647

2. Must

be

Martinez

3. Must

be
Determinate
1349
v.

City

Atilano

v.

Atilano,

B. Particular

Kinds
Things

111

of

or

SCRA

40

SCRA
or

Melliza

1. Generic

Future

23
SCRA

Arts.

&

1608

(1986)
1575
(1974)

Determinable

Iloilo,
28

Contingent

SCRA
231

Art.

1460,

477

(1968)

(1969)

Yu

Tek

&

2. Future Goods
3. Undivided
Yturalde
Gaite v.

4. Things

13,

Atkins
(1924)
Laroza

Arsenal

v.

Gonzales,

29

Art.

1461 &

1462

Interest/Share

v.
CA,
Fonacier,

SCRA
SCRA

43
2

v.

Domingo,

46

Phil.

G.R.

No.

L-45252,

January

31,

(Arts.

1465,

1608)

Guia,

Subject

to

v.

supra

IAC,

Real

1. Adequacy

of

Price

v.
CA,
Gordon

Consideration
Ong,
v.
CA,

be
in
1468

Republic

4. Must be
Perfection
Velasco
Toyota

(1972)
(1961)

Co.

&

be

3. Must

313
831

493

Kroll

Conditions

Price or
1350-1355

Ong
v.
Ladanga

Arts. 1463-1464,

(1915)

1385 (2);

A. Must

2. False

384

Arts. 1381 (4),


&
Rules
of
Court

V.
1474;

Bagnas
Vda. de

Phil.

in
Litigation
Section
14,

v.

5. Things

Co.

v.

Art.

Consideration

Arts. 1355 &


SCRA
CA, 109

Arts. 1353-1354,

139
131

SCRA
SCRA
or

360
1985

Arts. 1469-

1471

176
v.

Money

Rule

159 (1989)
SCRA
88

133
361
its

Phil. Resources,

(1981)

1471
(1985)
(1984)

Equivalent

Arts. 1458 &

102

Phil.

960

(1958)

at

the

Time of

Certain

Art.

or
Ascertainable
1469

v.
CA,
Shaw

51
v.

SCRA
CA, 244

1470

43
(1973)
SCRA
320

(1995)

Requisites- Arts. 1458(1), 1459-1462, 1347-1349


Rules on the object of a contract of sale- Arts. 1463-1465
Assignment of Credit and Other Incorporeal Rights- Arts. 1624-1635
Martinez v. Court of Appeals, 56 SCRA 647, April 29, 1974 Melliza v. City of Iloilo, 23
SCRA 477, April 30, 1968
3. Cause - Arts. 1350, 1352-1353
Price certain in money- Arts. 1469, 1471-1474, 1308; RA 529, RA8183, PD72
Earnest Money- Art. 1482
Lesion - Arts. 1470, 1355
Villonco Realty Company v. Bormaheco, Inc., supra
Spouses Doromal , Sr. and Salas v. Court of Appeals, 66 SCRA 575, September 5,
1975
Goldenrod v. Court of Appeals, 299 SCRA 141, November 24, 1998
Edrada v. Ramos, 468 SCRA 597, August 31, 2005
Philippine Free Press, Inc. v. Court of Appeals, 473 SCRA 639, October 24, 2005
Cruz v. Fernando, Sr., 477 SCRA 173, December 9, 2005
Morales Devt Co. v. Court of Appeals, 27 SCRA 484, March 28, 1969
Laperal v. Rogers, 13 SCRA 26, January 30, 1965
De Leon v. Salvador, 36 SCRA 566, December 28, 1970 Velasco v. Court of Appeals,
51 SCRA 439, June 29, 1973

Formation
1475-1488

of

A. Preparatory
1. Offer

Villonco
(1975)
Forms of
Zayco

Art.
v.

the

Forms of
Vices of

Acceptance
Consent

Asiain

v.

of

Art. 1479 (cf.


Art.
1475,
1319
Bormaheco,
65

Offer
v.

Contract

Arts. 1319,

Serra,

44

Art. 1319
Arts. 1330,

Jalandoni, 45

Phil.

Phil.

Sale
1324)
SCRA

352

1325,

1326

326

1338,
296

8. Natural Elements
1. warranties
2. subrogation
9. Accidental Elements
III.Perfection of the Contract
10. When perfected- Arts. 1475-1476, 1479(1)
Cruz v. Fernando, Sr., supra

Arts.

(1923)

(1923)
1331

11. Contract of Option- Arts. 1479, 1324


Sanchez v. Rigos, 145 SCRA 368, June 14, 1972
Equatorial Realty Devt, Inc. v. Mayfair Theater, Inc., 264 SCRA 483, November 21,
1996
De
la
Cavada
v.
Diaz, 37
Phil. 962 (1918)
Soriano
v.
Bautista,
6
SCRA
946 (1962)
Nietes v.
CA,
46
SCRA
654 (1972)
Cronico
v.
J.M. Tuason,
G.R. No.
L-35272,
August
26,
1977
Carceller
v.
CA,
302 SCRA
718 (1999)
Meaning
Sanchez
Villamor

2. Right

of
v.
v.

Consideration
Rigos,
45
SCRA
CA, 202 SCRA
607

of

First

Refusal

Ang Yu
Asuncion v.
CA, 238
Equatorial
Realty
Devt.
SCRA
483 (1996)
Paranaque
Kings
v.
CA,
Rosencor
Tanay
(2005)
Mutual

SCRA
602
v.
Mayfair

(1994)
Theater,

268

727

SCRA

v.
Inquing,
Recreation

354
v.

SCRA
Fausto,

119
455

(2001)
SCRA

Promise

Buy

and

Art.

to

B. Perfection
1330,

Arts. 1475,
1338,
1476,

1. When

deviation

Villonco

368 (1972)
(1991)

v.

Sell

1319,
1479

(1997)
436

1479

1325,

1326,

1403 (d),

1326

allowed

Bormaheco,

supra

2. Sale by

Auction

Arts. 1476,

3. Earnest

Money

vs.

Option

Money

Art.

Cifra
v.
Laforteza v.
Limson
v.
San Miguel
(2000)

CA, 198 SCRA


91
(1991)
Machuca, 333 SCRA
643 (2000)
CA, 357 SCRA
209 (2001)
Properties
v.
Huang,
336 SCRA

Place

Perfection

of

264

Art.

1319

1482

737

12. Formalities of Contract of Sale (Statutes of Fraud) - Arts. 1483, 1403,


1625, 1356-1358, 1874; Sec. 22 Act 1147 (Cattle Registration Act)
Paredes v. Espino, 22 SCRA 1000, March 13, 1968
Inigo v. Maloto, 21 SCRA 246, September 28, 1967
Cuyugan v. Santos, 34 Phil 100, March 3, 1916
Dalion v. Court of Appeals, 182 SCRA 872, February 28, 1990
Yuvienco v. Dacuycuy, 104 SCRA 668, May 27, 1981
Vda. De Jomoc v. Court of Appeals, 200 SCRA 74, August 2, 1991
Santos v. Manalili, 475 SCRA 679, November 22, 2005
IV.Rights and Obligations of the Vendor - Art. 1495
1. General
Rule: Form Not
Important

Arts. 1483,
1358
Dalion
Secuya

2. Exception:

v.
v.

CA, 182
vda. De

SCRA
Selma,

872
326

When

Form Important

a. Form

Important

for

1. Statute

of

Frauds

Ortega
Paredes
Claudel

v.
v.
v.

Leonardo, 103 Phil. 870


Espino,
22
SCRA
CA, 199 SCRA
113

b. Form

Important

for

Realty

through

1. Sale

of

City-Lite
Realty
(2000)

2. Sale

Arts. 1403 &

(2000)

1405

(1958)
1000 (1968)
(1991)

Validity
an

Corporation

Act

244

Enforceability

of
Large
Cattle
Revised
Administrative

Electronic
Commerce
8792

(1990)
SCRA

Agent
v.

CA,

Art.
Code

1581,

Sections

7,

13. To transfer ownership


Who can transfer ownership?
General Rule - Arts. 1505-1506, 1547
Cuison v. Remoto, 472 SCRA 274, October 11, 2005
Exceptions: Art. 1505
1. Estoppel- Arts. 1431, 1433-1434
2. Sale by an apparent owner
3. Purchase at Merchants Store, Market or Fair Art. 559

Art.

325

SCRA

385

Section

529,

&

R.A.

1874

11,

Sun Bros. v. Velasco, 54 O.G. 5143, August 11, 1958


Salonga v. Concepcion, 470 SCRA 291, September 20, 2005
Sigaya v. Mayuga, 467 SCRA 341, August 18, 2005
Premiere Devt Bank v. Court of Appeals, 453 SCRA 630, March 18, 2005
Siy Cong Bieng and Co. v. HSBC, 56 Phil 598 [1932]
Masiclat v. Centeno, May 31, 1956
When/How transfer is effected? - Arts. 1477, 1459, 1496, 1547, 1588
General Rule:
Ilao-Quianay v. Mapile, 474 SCRA 246, October 25, 2005
Exceptions:
1. sale or return - Art. 1502(1)
2. sale on approval or trial Art. 1502(2)
3. conditional sales - Arts. 1478, 1503(1), 1458(2)
Vallarta v. Court of Appeals, 150 SCRA 336, May 29, 1987
Risk of Loss or Deterioration (Total/Partial)- Arts. 1504, 1480, 1493-1494,
1538(1189), 1163, 1174
General Rule: Res perit domino
Exceptions:
1. Stipulation
2. Security Title
3. Delay
Lawyers Cooperative v. Tabora, 13 SCRA 762, April 30, 1965
De Lizardi v. Yaptico, 30 Phil 211, March 22, 1915
Sun Bros. Appliances v. Perez, 7 SCRA 977, April 30, 1963
. Risk

1. General
2. Loss

of

Loss

Rule

Before

at

the

v.
Time of

Norkis

4. Loss

v.

After Perfection
relation
to

a. General

1263

Perfection

Roman

3. Loss

Art.

Rule

Grimalt,

Phil.

96

Perfection

Art.

1493,

CA,

SCRA

193

694

(1906)
1494
(1991)

but
Before
Delivery

Arts. 1480 in
Arts. 1163-1165;
Arts. 1189 and 1262
res

perit domino

b. Loss

by
fault
1538,

c. Loss
1165,

by
fortuitous
events

1504,
1538,
1189

Arts. 1480,

d. Fruits

or

1537

of
a
1636

Improvements

party

Art.

Arts. 1480,

1504,
1163,

5. After

Delivery

Art.

1504

Sun
Bros.
v.
Perez,
7
(1963)
Lawyers
Coop.
v.
Tabora,
(1965)
Song Fo
v.
Oria,
33
Phil.
Double Sales- Art.1544
Express Credit
(2005)

v.

1. General
Rule
prior
jure

Velasco,

473

prior

SCRA

977

13

SCRA

(1915)

SCRA

762

590

tempore,

Carbonell
Tanglao

v.
v.

CA, 69
SCRA
99
Parungao, 535 SCRA

(1976)
123 (2007)

Cheng

v.

Genato,

300

722

Faith

Arts. 526,

Jarabe,

22

2. Requisites

3. Purchaser

in

Good

Paylago

v.

of

Movables
Rivera

5. Sale

6. Sale

of

by

527,

&
Home
(1992)

Extension

v.

Arts. 1544,

1497-1501

v.

Ong,

37

Phil.

355

Art.

1544 (2)

Consolidated

v.

CA,

448

SCRA
Attachment

Carumba
Dagupan

7. Unregistered Land

528
1247 (1968)

Immovables

Virtue

(1998)

SCRA

Agricultural
SCRA
536

4. Sale

SCRA

Execution

or

v.
v.

CA, 31
Macam,

SCRA
558
14
SCRA

PD

1529,

Section

113

213

(1917)

347

of

CA,

(2005)

(1970)
179 (1965)

Hanopol

8. First

Possession

in

Sanchez
Quimson
Beatingo
February
Oldest Title

Art.

v.

Pilapil,

Good

SCRA

40
87
G.R.

Phil.
Phil.
No.

452

(1963)

Faith

v.
Ramos,
v.
Rosete,
v.
Gasis,
2011

614 (1919)
159 (1950)
179641,
9

1544 (3)

Rule (Movables/Immovables)
Cuison v. Remoto, supra
Ulep v. Court of Appeals, 472 SCRA 274, October 11, 2005
Sigaya v. Mayuga, supra
Bautista v. Sioson, 39 Phil 615, February 11, 1919
Lichauco v. Berenguer, 39 Phil 643, February 27, 1919
Paylago v. Jarabe, 22 SCRA 1247, March 27, 1968
Quimson v. Rosete, 87 Phil 159, August 9, 1950
When not applicable?
1. unregistered lands
Carumba v. Court of Appeals, 31 SCRA 558, February 18, 1970
Vda. De Jomoc v. Court of Appeals, supra
Hanopol v. Pilapil, 7 SCRA 452, February 28, 1963
Obligations
Arts.

1495-1506,

A. Transfer
Arts.
also

of the

Vendor
1536-1543

Ownership

to

1459,
1477,
Art. 1164

1. General

Rule

Kuenzle
v.
Ocejo Perez
631 (1918)
Obana
v.
(1985)

the

Vendee

1478,

1487,

1496-1501,

Arts. 1477,

1496,

1497

see

Macke,
&
Co.

14
v.

Phil. 610 (1909)


International
Bank,

37

Court

of

Appeals,

557

135

SCRA

2. Exceptions
a. Sale

or

Return

Transactions

b. Sale

on

Approval,

Trial

or

Satisfaction

Art.

1502

Phil.

Vallarta
(1987)

v.

Court

c. Executory

Sales

1. Express

Reservation

Luzon Brokerage v.
(1972)

2. Implied

Reservation

3. Sale
by
Delivery

of

Appeals,

Art.

Maritime

Person
Not
Arts. 1462,

SCRA

336

43

SCRA

93

1478

Bldg.,
Art.

150

1503 (1)

the
Owner
at
1459,
1505

the

Time of

Aznar v.
Yapdiangco,
13
SCRA
486 (1965)
Noel v.
CA, G.R. No.
59550,
January
11,
1995
Asset Privatization
Trust
v.
T.J.
Enterprises,
G.R.
167195,
8
May 2009

No.

Exceptions:

a. Estoppel

1437, 1439 and

Arts. 1431,
1911

1434;

see

also,

Phil. 214
HSBC,

(1915)
56
Phil.

598

(1932)

Phil. 77
SCRA

(1915)
499 (1974)

Hernaez
v.
Siy
Cong

Hernaez,
Bieng

Jalbuena
Bucton

v.
v.

Lizarraga, 33
Gabar,
55

Act,

Recording

Laws,

Torrens

System

the
to

under

Statutory

Power

b. Factors

c. Validity
of
Court Order
d. Sale
in
1505 (3)

Merchants

Sale
Sell

32
v.

1433,

Store,

Market

or
5143,
8420,

Sun
Bros.
1958 Masiclat

v.
v.

Velasco,
Centeno,

54
G.R.

4. Sale
by
Arts. 1506,

a
559

Person

Having

Tagatac
v.
Jimenez,
De
Garcia
v.
CA,
EDCA Publishing
v.

OG
No.

Fair

or

Arts. 559,

January
May 31,
Voidable

53
OG
3792 No.
12,
June
37
SCRA
129 (1971)
Santos,
184 SCRA
614

Title

13,
1956

1957
(1990)

14. To deliver the object and its accessions - Art. 1537(1164)


Kinds of Delivery of Incorporeal Property (Quasi-tradition) - Arts. 1501, 2095
Kinds of Delivery of Corporeal Property (Tradition) - Art. 1477
1. Actual (Real or Material) - Art. 1497
2. Constructive (Symbolic or Formal)
1. delivery by the execution of a public instrument- Art. 498(1)
2. tradition longa manu- Arts. 1498(2), 1499
3. tradition brevi manu- Art. 1499
4. tradition constitutum possessorium- Art. 1500
5. delivery to a common carrier- Arts. 1503, 1523, 1582
6. when goods are in the possession of a third person- Art. 521(3)
Kuenzle & Streiff v. Macke & Chandler, 14 Phil 610, December 16, 1909
Addison v. Felix, 38 Phil 404, August 3, 1918
Daguilan v. IAC, 168 SCRA 22, November 28, 1988
Pasagui v. Villablanca, 68 SCRA 18, November 10, 1975
Dy, Jr. v. Court of Appeals, 198 SCRA 826, July 8, 1991
Power Commercial and Indl Corp. v. CA, 274 SCRA 597, June 20, 1997
Florendo v. Foz, 20 Phil 388, October 24, 1911
Philippine Suburban Devt. Corp. v. The Auditor General, 63 SCRA 397, April 18,
1975
Board of Liquidators v. Floro, 110 Phil 482, December 29, 1960
Quality/Quantity)- Arts. 1481, 1522, 1539-1543, 1630, 1632-1633
Rudolf Lietz, Inc. v. Court of Appeals, 478 SCRA 451, December 19, 2005
Santa Ana, Jr. v. Hernandez, 18 SCRA 973, December 17, 1966
Asiain v. Jalandoni, 45 Phil 296, October 23, 1923
Azarraga v. Gay, 52 Phil 599, December 29, 1928
Not bound to deliver when? - Arts. 1524, 1536(1198)
Visayan Distributors, Inc. v. Flores, 92 Phil 145, October 15, 1952
Place of Delivery - f.o.b., c.i.f., f.a.s. )- Arts. 1521(1), 1251, 1582
Behn, Meyer & Co. v. Yangco, 38 Phil 606, September 18, 1918
Bislig Bay Lumber Co. v. CIR, 1 SCRA 156, January 28, 1961
Time of Delivery - Art. 1521(2)
Republic v. Litton & Co., 94 Phil 52, November 28, 1953
Prescription- Art. 1543
Delivery
Arts.

of

the

Thing

1537,
1163,
Art. 1521

with
1164,

Fruits

and

1477 and

1495,

1. Place,
time
1169,

and Manner
of
1521,
1523 (2)

Delivery

(3),
1537,

a.
Reasonable
Smith Bell v.

Time
Matti,

874

b.
Soler

When
v.

44

Phil.

Time is

of

the

Essence

Chesley,

43

Phil.

529

(1922)

(1922)

Accessions
see

also

Arts. 1524,
1164,
443

Republic

v.

Litton,

94

Phil.

52

(1953)

c.
When Vendor
Not
1524, 1536,
1198

Bound

to

Deliver

d.

to

Delivery

La

Acceptance
Fuerza

Condition

v.

CA,

23

SCRA

Arts. 1522,

2.

Sale

a.

Delivery

of

Wrong

b.

Delivery

by

Installments

3.

Sale

of

Immovables

v.

Gay, 52

Azarraga

of

Not

Goods

a.

Where Price is
at

Arts. 1539,

b.

Sale

Sta.
Ana
Esguerra

for

v.
v.

Hernandez, 18
Trinidad,
518

2. Kinds

of

Delivery

a. Real

or

Actual

Lump

1537,

Art.

Art.

1583

Arts. 1471,

599

(1928)

Sum

Delivery

Alfredo
(2003)

Certain
1540

1480
1522

1543

Rate Per

Unit

Art.

1542,

973
186

(1966)
(2007)

SCRA
SCRA

Arts.

1217 (1968)

Quantity

Phil.

Art.

of

Measure
1471 (1)

1497

v.

Borras,

404

SCRA

by

Public

Instrument

145

b. Constructive Delivery
1. Symbolic

Delivery/Delivery

Sarmiento
Santos
v.

Art.

Philippine Suburban v.
Auditor
General,
SCRA
397 (1975)
v.
Lesaca,
108 Phil. 900 (1960)
Santos,
366 SCRA
395 (2001)

2. Traditio
Longa
1513, 1514

Manu
Board
482

Arts. 1498,

of
Liquidator v.
(1960)

1498
63

1499,
Floro,

110

Phil.

3. Traditio
1499
Abuan

v.

Garcia,
14
Heirs
of
SCRA

4. Traditio
Art.
Amigo

v.

5. Delivery

to

Brevi

Art.

SCRA
759 (1965)
Pedro
Escanlar
v.
176 (1997)

Constitutum
1500

Teves,
Common

Manu

96

Phil.

Carrier

281

Possessorium

252

CA,

(1954)

Art.

1523,

1503

15. Warranties - Arts. 1495, 1567, 1571, 1628, 1629, 1631


1. Express- Art. 1546
Carrascoso, Jr. v. Court of Appeals, supra
Philippine Manufacturing Co. v. Go Joco, 48 Phil 621, January 21, 1926
Distinguished from:
i. condition)- Art. 1545
ii. dealers talk
iii. false representation
2. Implied warranties
i. warranty against eviction (warranty of title) )- Arts. 1548-1559
ii. warranty against hidden encumbrances or defects)- Arts. 1560, 1561, 1567-1581,
613, 615
iii. warranty of quality)- Arts. 1562-1565, 1586, 1599(5)
Guinhawa v. People, 468 SCRA 278, August 25, 2005
Power Commercial and Indl Corp. v. CA, supra
Bautista v. Lasam, 72 Phil 506, June 27, 1941
Mendoza v. Caparros, 94 Phil 317, January 30, 1954

1. Express

Warranties
Filinvest
Credit
Corp.
Appeals,
178 SCRA
188
Harrison
Motor
Co. v.
202 (2000)
Guinhawa
v.
People,
468

a. Distinguished

from Condition

b. Distinguished
1341

from Opinion,

Dealers

Songco

v.

Sellner,

v.
Court
(1989)
Navarro,
331

SCRA

SCRA

(2005)

278

Arts. 1545,

37

of

1599

Talk

Art.

1546,

Phil.

254

(1917)

c. Distinguished

2. Implied

from False Representation


Gochangco

v.

Dean,

47

Phil.

687

(1925)

PMC

Go

Jucco,

48

Phil.

621

(1926)

G.R.

No.

177874,

v.

Warranties
Ang
29

a. Implied

v.
Court
of
September 2008

Warranty

1. Eviction
by
1551,
Power

of

Judgment
1555,

Commercial

2. Waiver

Art.

3. Effects

of

Eviction

b. Implied

Art.

1. Hidden

Warranty
1567

Art.
1557
&

Against

1590
1547,

Industrial
274 SCRA

1548,
Corp.
597

1550,

v.
(1997)

CA,

or

Art.

1555,

548,

1556,

1559

Encumbrances

or

Defects

Defects

Art.

1561-1580

Engineering
Machinery
Corp.
v.
CA,
252 SCRA
156 (1996)
Feeds
Corp.
v.
CA
441 SCRA
357
(2004)
De
Guzman
v.
Toyota
Cubao,
Inc., G.R.
No.
141480,
29
November 2006

2. Warranties
in
Sales
Arts. 1574-1580

c. Implied

1554

Encumbrances

Nutrimix

3. Sale

Title

Appeals,

of

Animals/Redhibitory

by
Sample
or
Description/Merchantable
Arts. 1574,
1481,
1562
(2),
1565
Warranty

1. Fitness
for
1564, 1563

of

Defects

Quality

Quality

Particular

Purpose

Arts. 1562 (1),

Rodriguez
Consumer

v.

Act,

RA

Findlay,
7394,

14

Phil.

294

Section

(1909)

68

(4)

16. Others)- Arts. 1480, 1163, 1538, 1537, 1164, 1487, 1521 last par.
V.Rights and Obligations of the Vendee
17. Payment of Price) - Arts. 1582, 1590, 1593
Time and Place
Liability for interest)- Art. 1589
18. Right of Inspection/Examination)- Arts. 1584, 1481
3. Inspection
and Acceptance

a. Right

of

Inspection

b. Manifestation

of

Art.

1584 (2)

Acceptance

Art.

(3)
1585

c. Breach

of

Warranty

Art.

Refusal

to

Accept

Arts. 1587-1589

Obligations

of
the
Vendee

A. Obligation
1169,
1584-1588

to
Accept
Delivery

1521,
1536,
1198,

B. Obligation

to

Pay

Torcuator

v.

Bernabe,

1. Liability

for

Interests

Bareng

2. Suspension

of

v.

Payments

Breach

of

the

Arts. 1524,
1522,

Price
459

SCRA

439

(2005)

Arts. 1582,

CA,

107

Arts. 1590,

1560,

1664

v.
June

Diego

Inc., G.R.

Spouses
Mahusay
No.
179675,
8

VIII.

1586

Contract

Phil.

1589
641

B.E. San
2011

(1960)

A. Remedies
1533-1534

of

Unpaid

1. Possessory

Lien

2. Stoppage

in

Transitu

3. Resale

Art.

Katigbak

4. Rescission

B. Sale

Movables

of

1. Action for

Art.

Vendor

Art.

Arts. 1527-1529

Arts. 1531-1535,

v.

CA,

SCRA

Art.

1595 (1)

Art.

1595 (2)

Art.

243

Price
passed

b. When ownership

has

not

passed

for

Non-Acceptance

2. Action for

Damages

3. Rescission

4. Sale
of
1484-1486

Movables

Arts. 1597,
on

1596

1593
Installment (Recto

Borbon
v.
Servicewide,
258
(1996)
Nonato
v.
IAC, 140 SCRA
Delta Motor
Sales
v.
Niu
SCRA
259 (1992)
Elisco Tool Manufacturing
Corp.
SCRA 731 (1999)
PCI
Leasing
and Finance,
Inc.
Creative
Imaging,
Inc., 527 SCRA

Law)

Arts.

SCRA

634

255
Kim

(1985)
Duan,

v.

CA,

v.

Giraffe-X
405 (2007)

241

SCRA

213

307

Imomvables

1. Anticipatory

Breach

2. PD

Sections

23-24,

957,

(1962)

1534

has

of

1532 (2)

1533

a. When ownership

C. Sale

1525-1526,

Art.

1591
17-18

Casa Filipina
Realty
v.
OP,
(1995)
Manila
Banking
Corp.
v.
G.R. No.
145941,
16
December

165

Spouses
Rabina,
2008 Luzon

Development
168646,
12

3. Maceda
Installment

Law

(RA

Bank
January

6552):

Rillo
v.
Court
(1997)
Valarao
v.
CA,
Active
Realty
(2002)
Fabrigas
v.
San
SCRA 247 (2005)
Jestra Devt
&
Pacifico,
513 SCRA

v.
Enriquez,
2011

G.R.

Sale

of

of

Appeals,

274

SCRA

46

394
v.

SCRA
Daroya,

155
382

(1999)
SCRA

152

Francisco

Immovables

No.

del

on

Monte,

Management
Corp.
413 (2007)

475
v.

19. Right to the fruits- Arts. 1537, 1164


20. Acceptance- Arts. 1582-1583, 1585-1588, 1593
The Maceda Law (RA 6552) Sale of Immovables on Installment
Ramos v. Heruela, 473 SCRA 79, October 14, 2005
Fabrigas v. San Francisco del Monte, Inc. 476 SCRA 247, November 25, 2005
VI.Remedies for Breach of Contract
21. Remedies of an Unpaid Seller- Arts. 1525-1526
1. withhold delivery (possessory lien) - Arts.1527-1529, 1535, 2241(3)
2. stoppage in transitu )- Art. 1530-1532, 1535, 1636(2)
3. resell the goods- Art. 1533
4. rescission- Arts. 1534, 1597, 1591-1593, 1191, 1556, 1484, 1532, 1567, 1580
5. action for the price specific performance- Art. 1595
6. action for damages- Art. 1596
Katigbak v. Court of Appeals, 4 SCRA 242, January 31, 1962
Song Fo & Co. v. Hawaiian-Phil. Co., 47 Phil 821, September 16, 1925
Weyerhauser Timber Co. v. First Natl Bank of Portland, 38 P2d 48
22. Remedies of the Buyer- Arts. 1539, 1542-1543, 1567, 1571, 1599
1. specific performance- Arts. 1598
2. damages
3. rescission- Arts. 1481
Recto Law Sale of Movables on Installment- Arts. 1484-1486
Luneta Motor C. v. Salvador, 108 Phil 1037, July 26, 1960
Industrial Finance Corp. v. Ramirez, 77 SCRA 152, May 26, 1977
Northern Motors, Inc. v. Sapinoso, 33 SCRA 1970, May 29, 1970
UMC v. Dy Hian Tat, 28 SCRA 161, May 16, 1969
Cruz v. Filipinas Investment & Finance Corp., 23 SCRA 791, May 27, 1968
VII.Extinguishment of Sale
23. Causes- Arts. 1600, 1231, 1626, 1634-1635
24. Redemption
1. Conventional - Art. 1601
Villarica v.
CA, 26
SCRA
189 (1968)
Torres
v.
CA, 216 SCRA
287 (1992)

Pacto de Retro Sale- Arts. 1607, 1609, 1611-1518, 1676-1677


Equitable Mortgage- Arts. 1602-1605
Period to Redeem- Art. 1606
Heirs of
Arches
v.
Diaz,
50
(1973)

SCRA

440

Who may exercise the right to redeem? - Arts. 1608, 1610, 1612, 1614-15
Cadungog v. Yap, 469 SCRA 561, September 12, 2005
Salonga v. Concepcion, supra
Go v. Bacaron, 472 SCRA 339, October 11, 2005
Gerardino, Sr. v. CFI Capiz Br. III, 80 SCRA 646, December 29, 1977
Yturralde v. CA, 43 SCRA 315, February 28, 1972
Marquez v. Valencia, 77 Phil 782, December 22, 1946
Quinga v. Court of Appeals, 3SCRA 66, September 19, 1961
Gloria-Diaz v. Court of Appeals, 84 SCRA, July 31, 1978
Heirs of Francisco Parco v. Haw Pia, 45 SCRA 164, May 30, 1972
Gargollo
v.
Duero,
1
SCRA
1311 (1961)

1. Distinguished
2088

from Equitable

Tan

Adiarte

Arts. 1602-1604,

Valdehueza,

66

SCRA

61

(1976)

Arrofo

v.

Quino,

449

SCRA

285

(2005)

Roberts

v.

Papio,

515

SCRA

346

(2007)

2. Distinguished
v.

v.

Mortgage

from Option

to

Buy

Art.

1602

Tumaneng,

88

Phil.

333

(1951)

2. Legal- Arts. 1619-1623


Spouses Doromal , Sr. and Salas v. Court of Appeals, supra
Almendrada v. Ngo, 471 SCRA 311, September 30, 2005
Aguilar v. Aguilar, 478 SCRA 187, December 16, 2005
Villasor v. Medel, 81 Phil 546, September 29, 1948
Ortega v. Orcine, 38 SCRA 276, March 31, 1971

a. Co-owners

Art.

1620

b. Co-heirs

Art.

1088

c. Adjoining

Landowners

of

Rural Land

d. Adjoining

Landowners

of

Urban

Ortega

v.

Orcine,

38

Art.

1621

Land

Art.

Phil.

(1971)

276

1622

e. Under the

Public

f. Under Extrajudicial
Under Agrarian
12

Land Act

CA

141,

Foreclosure

Act

3175,

Land Reform

Code

RA

Sections

118-119

Section
6389,

Section