Article 1503 is exception to article 1523

3 parties (vendor, vendee, common carrier)

GR: Delivery to the carrier is delivery to the buyer

EXN:

1. When there is contrary stipulation (intention by the terms of the contract)

EX: stipulation, delivery to the common carrier is NOT delivery to the buyer

2. The seller reserves the right of possession or ownership until certain terms or conditions have been
fulfilled.

EX: Full payment of the purchase price

3. When goods are shipped by the bill of lading are deliverable to the seller or his agent, or to the order
of the seller, the seller reserves the ownership of the goods.

EX: Inorder sa Germany yung goods, tapos yung seller and buyer nasa PH, kay seller pa rin yung
ownership. (Distributor)

4. Goods are shipped and by the bill of lading goods are deliverable to order of the buyer or of his agent,
possession of bill of lading is retained by the seller or his agent, seller reserves a right.

EX: Pag wala kay buyer yung bill of lading, wala sa kanya ang possession ng goods.

5. May bill of exchange (negotiable instrument, represents the goods lang) and bill of lading issued by
the carrier. Kapag di niya tinanggap yung BOE, he cannot acquire additional right. Dapat total package
yung dalawa.

Buyer in GOOD FAITH, for value.

1504.

Res Perit Domino pa rin

Before perfection: Seller (If goods are lost, seller)

After delivery: Buyer (If goods are lost, buyer)

After perfection but before delivery: 2 schools of thought

- BUYER (Manresa and others) Exception daw sa res perit domino

- SELLER (Tolentino, et. al)

Delay in delivery: Party who is at fault are at risk when goods are lost
Article 1505

Doctrine of Maxim Nemo clat quad non habet - "You cannot give what you do not have"

EXN:

1. provision of any factor's acts

EX: I am the owner of the property pero gusto ko itago. Pinangalan ko sa kamag-anak ko. Tapos
walang entrustment for me. Pag binenta ng kamag-anak sa ibang tao, sale is valid. Kahit ako owner pero
siya nakapangalan valid iyon. REMEMBER: Mirror Doctrine (kung buyer ka, just look on the titulo)

2. Validity of any contract under statutory (Auction sales, foreclosure sale)

3. Merchant's store

EX: Cellphone na ninakaw tapos ibinenta sa Isetann, valid yung sale pag binenta sa ibang tao.

4. Voidable title (Article 1506)

EX: Nagbenta ka ng bike ka kay minor tapos binenta ni minor sa iba, sale is valid. Voidable
contracts are valid until annuled. Provided in GOOD FAITH, FOR VALUE, WITHOUT NOTICE OF THE
SELLER'S DEFECT OF TITLE.

NEGOTIABLE DOCUMENT OF TITLE

Article 1507

Document title (Negotiable)

- deliverable to the buyer or bearer

- to the order of buyer or bearer

Document title (Non negotiable)

- deliverable to specific person

- deliverable to buyer

- deliverable to s/agent

Negotiable document of title - subject matter is goods

Negotiable instruments - comply with the reqs under the sec 1 of nego law (5 reqs convey an
unconditional promise subject matter is money: absent sa nego docu of title)

Article 1508
A nego docu of title may be negotiated by delivery:

1. it is a bearer instrument - deliverable to bearer (negotiated by MERE Delivery)

Once a bearer instrument, always a bearer instrument

2. subsequently indorsed in a blank

EX: Nag-issue si A (debtor) ng promi note kay B (creditor). Di na nahintay ni B, ni-negotiate niya
kay C, then D, to E, to Holder. Si Holder pwede nang magpunta kay A (maker).

Pag special indorsement dapat i-indorse sa specific person.

Pag blank indorsement, walang indorsement only by MERE DELIVERY.

Check mo muna yung last indorsement!!!

1. Special indorsement - indorsement + delivery

2. Blank indorsement - delivery

1509

A negotiable document in title may be in:

- blank (by mere delivery)

- to bearer or to a specified person

1510

Kunware nakalagay sa indorsement ni C kay B or bearer, to the order of B eme, pero may nakalagay non
negotiable and the like, it is negotiable.

EX: paid/deliverable to Pedro (bearer), bearer (NON NEGOTIABLE)

deliverable to Pedro or bearer (NEGO)

1511

Anong legal effect if negotiable or non nego? BASAHIN MO.

Better rights if negotiable :)

1512wqas