1.
A contract of sale of a parcel F by a separate consideration is
of land is consensual, formal,
bilateral, onerous, nominate,
principal and commutative
2. Even if time is of essence, a
buyer who already paid 80&
of the price and delayed in
payment only for 1 month,
must be given an additional
period to complete payment
of purchase price in
consideration of equity and
justice.
3. Shocking gross inadequacy of
the price in an execution sale
executed by a court sheriff
may invalidate a sale
4. A vehicle sales proposal
stipulating that the price of a
model 2015 Toyota Vios car
20% of w/c will be paid as a
down payment in 3 days and
the balance in 36 monthly
instalments and w/ a specific
date for pick up is a perfected
contract of sale is signed by
the buyer.
5. A written acknowledgment
showing that a fishing vessel
w/ a price of 900k is now in
the possession &
responsibility of the buyer is a
perfected contract of sale if
there is a firm commitment
that documents pertaining to
the sale & agreement of
payment are to follow
6. A sale is perfected upon
acceptance of a unilateral
promise to sell at a fixed price
even if there is no option
money paid to support the
promise
7. An option contract supported
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a non-binding offer that may
Not formal be withdrawn at any time
before acceptance by the
F buyer
8. A lessee may not ask for the T
Time is of essence. rescission of the sale of the
Refer to 1191. leased property where he is
living, in violation of a
st
stipulated right of 1 priority
to buy, even if the right was
not annotated on the TCT
9. To be binding, the right of F.
F first refusal stipulated in a
lease agreement must also be No need (price/period)
supported by an independent
consideration
st
T 10. In a lease w/ right of 1 T
refusal, the lessor cannot sell
rd
to a 3 party at the price of P
5300/sq m after an offer to
sell at P 6000/ sq m was
declined by the lessee
11. A perfected contract of sale T
cannot be challenged on the
ground of the seller’s non-
ownership of the thing sold at
F the time of the perfection of
the contract
12. X leased to Y a roof deck of its F
bldg. w/ the agreement that
any permanent Sampaguita Pictures v Jalwindor: “The
improvements made on the fact that Capitol failed to pay
property by Y shall belong to Jalwindor the purchase price of the
X. Y installed glass jalousies items levied upon did not prevent the
purchased on credit from Z. transfer of ownership to Capitol and,
Upon Y’s failure to pay the later, to Sampaguita by virtue of the
F outstanding balance of the agreement in their lease contract.
50%, a levy on the glass Therefore, the complaint of
jalousies is proper Sampaguita to nullify the Sheriff's sale
is well founded, and should prosper.”
13. There is symbolic delivery of a F
T parcel of land upon the
1
 execution of a deed of
absolute sale even if the
buyer had not acquired actual
possession thereof because it
rd
is occupied by a 3 party w/
an adverse claim of
ownership
14. A few days before his death,
X sold his land to Y, who in
turn sold it to Z. The heirs of X
sold the same land to W, who
in GF registered the sale. Z,
who took actual possession of
the land a day after the sale
by W, has a better right to the
land
nd
15. In Art 1544, a 2 buyer may
st
still claim in GF even if the 1
buyer was already in
possession of the property at
the time of the sale, if the
nd
seller assured the 2 buyer
that the alleged buyer is
merely a lessee
16. The rules on double sale will
apply when the deed of
absolute sale in installments
with a downpayment of 20%
amounting to 200k was
executed after a contract to
sell in favor of another buyer
who paid 50% (500k) of the
purchase price
17. When the consideration is
partly in money and partly in
kind,the contract is one of
sale if the parties intended it
to be a sale even if the thing
given as part of the
consideration is greater in
value than the money given
18. An accepted bilateral
promise to buy and sell a car
at a price less than 500k but
QUIZ 4 – FINALS
To be equivalent to actual delivery,
thing must be subject to the control
of the vendor. Addison vs Felix- “if the
vendee x enjoy its possession due to 19.
rd
an opposition of a 3 person who is in
actual possession..”
T given
20.
21.
22.
F draw date is necessarily void
“Art 1544 Par 2: Should there be no
inscription, the ownership shall 23.
pertain to the person who in GF was
first in the possession..”
F 24.
Rules on double sale do not apply if
the first transaction is a
contract/promise to sell.
25.
T 26.
27.
F 28.
not more than 505k is binding
as an executory agreement of
sale
A unilateral promise to sell is F
binding as a contract of sale if
a separate consideration
independent of the price is
A conditional contract of sale T
may be an executed contract
or an executory contract
Things under resolutory T
condition of destruction may
be objects of a valid sale.
The sale by Pedro to Juan of a T
losing lotto ticket for a past
because the hope of winning
is vain.
Sale of inheritance before F
partition is void because the
heir could not predetermine Valid even without enumerating the
what he will receive after things.
partiion proceedings.
Subsequent acquisition of a T
title by vendor w/o title
validates the sale even if the
acquisition depends on
contingency
rd
If a 3 party tasked to give F
the price of the sale refuses
to fix the price, the court may
fix the price
If the price is simulated, the F
sale shall be considered a
donation.
Sale may be rescinded if the F
inadequacy of the price
results in lesion by more than
¼ of the valley of the thing
sold by the owner
By agreement, an option T
money may be considered
part of the purchase price
2
 should buyer exercise the
option to buy
29. A verbal sale of parcel of land
by an agent is valid provided
that his authority to sell is in
writing.
30. A contract of sale is
perfected where the
acceptance was made if
different from the place of
offer.
31. A deteriotiration of the thing
sold at the time of perfection
may render the contract
inoperative.
32. If the loss of the thing sold at
the time of perfection was by
the fault of the seller, sale
shall still be valid.
33. If the loss of the thing sold at
the time of perfection was a
fortuitous event, the risk is on
the buyer if the sale is
conditiona.
34. The expenses of execution
and registration of the sale
are borne by the seller.
35. Before the fall of the hammer
in an auction sale, a bidder
may retract his bid but the
auctioneer could not
withdraw the goods from the
sale.
36. A legally separated husband
may sell a car to his wife.
37. Without qualification, a sale
between persons in trust
relations is necessasrily void.
38. Enumerate 3 obligations of
seller
39. Delivery by seller’s retention
of the thing he is possessing
by another right subordinate
QUIZ 4 – FINALS
to the buyer is known as
40. When the seller is not the F
T owner, the buyer who
purchased the property in a Public fairs/markets not affected
fair has no better title than
that of the seller.
F SAMPLEX
Meeting of minds 1. A contract of sale is F.
consensual, bilateral,
onerous, nominate, principal, Not preparatory
T preparatory and
commutative.
2. When the consideration is F
partly in money and partly in It shall be considered a barter if the
F kind, the contract is one of value of the thing given as part of the
sale if the parties intended it consideration exceeds the amount of
Void to be a sale even if the thing money or its equivalent; otherwise, it is
given as part of the a sale.
F consideration is greater in
value than the money given.
Seller 3. A bilateral promise to sell is F.
binding as an executory Only if it is a bilateral promise to buy
agreement of sale. and sell.
T 4. A unilateral promise to sell is F
binding as a contract of sale if An accepted unilateral promise to buy
a separate condition or sell a determinate thing for a price
F independent of the price is certain is binding upon promisor if the
given. promise is supported by a
Both may withdraw consideration distinct from the price.
5. A conditional contract of sale T
may be an executed contract
of an executory contract
T 6. Things under resolutory
condition may be objects of a
T valid sale
7. Sale of a losing ticket for a T
Only if no transfer of ownership past draw date is necessarily
Transfer, deliver, warrant void because of the hope of
winning is vain
Traditio constitutum possessorium 8. Sale of inheritance before F
partition is void because the
heir could not pre-determine One who sells an inheritance w/o
what he will receive after enumerating the things composed,
3
 partition proceeding
9. Subsequent acquisition of title
by a vendor w/o title validates
the sale even if the acquisition
depends on contingency.
rd
10. If a 3 party tasked to give
the price of the sale refuses to
fix the price, court may fix it.
11. If the price is simulated, the
sale shall be considered a
donation.
12. Sale may be rescinded if the
inadequacy of price results in
lesion by more than ¼ of the
value of the thing sold by the
owner.
13. By agreement, an option
money may be considered a
part of the purchase price
should buyer exercise the
option to buy.
14. A verbal sale of a parcel of
land by an agent is valid
provided that his authority to
sell is in writing.
15. A contract of sale is perfected
where the acceptance was
made if different from the
place of offer
16. A detoriation of the thing sold
at the time of perfection may
render the contract
inoperative.
17. If the loss of the thing sold at
the time of perfecting was by
the fault of the seller, sale
shall still be valid.
18. If the loss of the thing sold at
the time of perfection was by
QUIZ 4 – FINALS
shall be answerable as an heir. a fortuitous event, the risk is
T on the buyer if the sale is
conditional.
Alternative: F, no need to validate. 19. Expenses of execution and
registration of the sale are
F borne by the seller.
20. Before the fall of the hammer
rd
Courts can fix if the 3 party acted in BF in an auction sale, a bidder
or by mistake may retract his bid but the
F. auctioneer could not
withdraw the goods from the
Sale is void, but the act may be shown sale.
to be a donation. 21. In a sale of car, the vendor
T can cancel the sale if the
st
vendee fails to pay the 1
Alternative: F, gross inadequacy of instalment.
price does not affect a contract of sale, 22. A legally separated husband
except as it may indicate a defect in the may sell a car to his wife.
consent or the parties intended a 23. A sale between persons in
donation or some other act. trust relations is necessarily
T void.
Alternative: F, element of a valid option
contract is a prestation, a consideration
separate and distcint from the
purchase price for the option given.
T 24. x
25. x
26. x
F 27. Delivery by seller’s retention
of the thing he is possessing
Contract of sale is consensual. by another right subordinate
to the buyer is known as
T 28. When the seller is not the
owner, the buyer who
purchased the property in a
fair has no better title than
F. that of the seller.
29. x
The contract is inexistent and void 30. x
because there is no object.
F.
31. A negotiable document itlte
The risk is borne by the seller.
T
F.
A bidder may withdraw the goods
unless auction has been announced to
be w/o reserve.
F.
2 or more.
T
F. Only property involved in the trust
relations.
Alternative: T. Void if there is no
complete transfer of ownership but
intention was merely to make grantee
a depository of the thing subject of
contract.
Obligations of a vendor:
1. Transfer ownership
2. Deliver the thing
3. Make warranties
Traditio constitutum possessorium
F.
Purchases made in fairs shall not be
affected
2 ways to negotiate a negotiable
document of title to goods
1. Indorsement and delivery
2. Delivery
F.
4
 of goods indorsed in blank
may be subsequently
indorsed to a specified person
but could not be indorsed in
balnk.
32. Where a negotiable document
of title was transferred for
value by mere delivery
instead of the required
endorsement, transferee may
compel transferor to indorse
the document
33. The validity of negotiation is
not affected by the fact that
the owner of the document
was deprived by theft even if
the holder had notice, prior to
negotiation, of the unlawful
deprivation.
34. Transferee of a non-nego
document of title to goods
may hold the bailee liable for
the possession of the goods
provided that he notifies the
bailee before latter was
notified by transferor of a
subsequent sale of goods.
35. In the absence of stipulation,
the goods sold must be
delivered at any time.
36. If by agreement, seller is
required to deliver the goods
to the buyer, delivery to the
carrier is deemed delivery to
the buyer if by the BOL, the
goods are deliverable to the
order of the buyer whether or
not seller retains possession
of BOL.
37. A seller who was conditionally
paid with the buyer’s personal
check can have the rights of
an unpaid seller of goods if
QUIZ 4 – FINALS
It may be negotiated in blank, to bearer check is dishonoured.
or specified person. 38. An unpaid seller of goods has F
the right to retain goods even
if the same were already
delivered to the carrier.
T 39. An unpaid seller has a lien on F
the goods when the buyer
becomes insolvent, provided
that the seller is still in
possession of the goods.
40. Exceptionally, seller may F
exercise the right of stoppage
F. in transit even if buyer already No longer in transit.
accepted delivery.
Transferee must be in GF and without 41. If carrier wrongfully withholds F.
notice of theft by the time of possession from the buyer, Wrongful refusal by carrier to deliver
negotiation. seller can exercise the right of will terminate the right of stoppage.
stoppage.
42. Right of stoppage in transit T
T may be exercised by obtaining
actual possession of the
goods from the carrier.
43. Unpaid seller may resell goods F.
without notice to buyer if the Only if the goods are perishable or
latter has been in default of based on an agreement.
the payment of price for
unreasonable time. Alternatieve: T
F 44. Unpaid seller may rescund the F
sale where buyer fails to pay
Seller is bound to send then within the price after a year from the
reasonable time. delivery.
T 45. Unpaid seller’s right of T
stoppage in transit is not
affected by a subsequent
disposition of goods by the
original buyer except where
disposition was with consent
of the seller.
46. Buyer was in need of 1,000 T
sqm of land required by the
T franchisor required for the
opening of a business. He
purchased from the seller at a
price of 100,000 per sqm. He
5
 discovered that the total area
delivered to him was only
975. Buyer can opt to rescind
the sale.
47. If on the other hand (46) the
land has an area of 1,100, the
buyer has no other option but
to return the excess area.
48. If a parcel of land believed to
be 1,000 sqm was sold at a
lump sum of 1 million, buyer
should pay more if the land
turns out to be 1,025 to avoid
just enrichment.
49. As a rule, the buyer of goods
is not bound to accept
delivery by instalment
50. In a cash sale, seller is excused
from making delivery if no
payment is tendered by the
buyer unless a period for
payment is fixed.
51. Rules on double sale will
apply to a sale made by the
principal and another sale by
the agent to different buyers
52. A previous buyer who was
informed of a subequent sale
in favor of another buyer
rushed to the register of
deeds to register the sale in
his name. Who has a better
right to the land if subsequent
buyer was in possession of
the same
53. Warranty against eviction may
be validly waived by the buyer
with knowledge of risk.
54. In case of breach of warranty
against eviction, buyer may
also demand ornamental
expsnses even if the sale was
made in GF.
55. X 2 remedies of buyer in case of breach
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56. X of warranty against hidden
encumbrances
1. Rescission
F 2. Indemnity
57. x Requisites of warranty against
He may also accept and pay for the 58. x redhibitory vices.
same. 59. x
F 60. x 1. Serious or important defect
61. x 2. Hidden
No increase or decrease of price. 62. x 3. Exist at time of sale
63. x 4. Notice to the defect was given within
reasonable time
5. Action for rescission or reduciton of
T price must be broguth within proper
period - 6 mos or 40 days from delivery
6. No waiver of warranty
T 7. Buyer would not have bought it has
he known of the voice
64. If an animal sold was classified F
as condemned, there is no No warranty against hidden defects of
warranty against hidden vices animals sold at fairs or public auctions,
T provided that the animal was or if livestock sold as condemned.
examined by an expert.
65. Disease is presumed covered 3 days
by warranty if it casuses death
First buyer 7 days from purchase.
66. x When may buyer suspend payment
67. x after delivery
1. Disturbance
2. Fear
68. x Legal guarantees of seller for payment
69. x of price of buyer
70. x
T 71. x 1. Possessory lien
2. Right of stoppage in transit
3. Right to resale
F 4. Right to rescind
72. x Extinguishment of sale
Sale must be done in BF. 73. x
74. x 1. Payment or performance
75. x 2. Loss
3. Condonation
6
 4. Merger or consolidation 95. Assignor in GF answers for F.
5. Compensaiton solvency of the debtor, unless
6. Novation insolvency of debtor was prior No warranty for solvency of debtor,
76. x What is conventional redemption to the sale and of common unless stipulator or insolvency was
77. x knwoedlge. prior to the sale and of common
1. Vendor reserves right to repurchase knowledge.
the thing sold. 96. x Instances of Legal redemption
2. Obligation to comply with 1616 97. x
78. x Nature of conventional redemption 98. x 1. Sale of co-owner to a stranger
79. x 99. x 2. Credit/incorporeal right in litigation
80. x 1. Contractual 100. x is sold
81. x 2. Accidental 3. Sale of an heir of his hereditary rights
3. Potestative to a stranger.
4. Real right 4. Sale of adjacent rural lands not
82. x Equitable mortgage exceeding 1 hectare.
83. x 5. Equity of Redemption in case of
84. x 1. Unusually inadequate price of sale Judicial Foreclosure
85. x with right to repurchase 101. A contract of lease is F.
2. Vendor remains in possession as consensual, nominate,
lessee bialteral, onerous, and It cannot be gratuitous.
3. Buyer retains a part of the purchase commutative, although
price exceptionally it could be
4. Vendor binds himself to pay taxes gratitutoous.
5. Other case - real intent is to secure
payment of a debt/performance of Enumeration
obligation
86. x Exercise right of redemption Requisites of Warranties against eviction:
87. x  Vendee is deprived of the thing purchased
88. x 1. Co-owners  Deprivation was by final judgment
2. Co-heirs  Judgment is based on a right prior to the sale or act imputable to the vendor
3. Judgment debtors
 Vendor was summoned in suit for eviction at the instance of the vendee
89. A vendee a retro has a right to T
 No waiver of the warranty by the vendee
be subrogated to the vendor's
rights and action.
90. x Legal redemption by a co-owner Kinds of Implied warranties
91. x  Warranty that the seller has a right to sell
92. x 1. Co-ownership  Warranty against eviction
93. x 2. Alienation of shares.  Warranty against non apparent burdens
rd
3. Sale to a 3 person or stranger  Warranty against redhibitory defects on animals
4. Sale before partition  Warranties as to fitness or merchantability
94. A valid assignment of credit T  Warranties for consumer goods
transfers title to the assigned
credit to the assignee, even if Exceptions to Warranty against Animal Vices
debtor is unaware thereof.

QUIZ 4 – FINALS 7
  Knowledge of the Buyer
 Buyer is an Expert
 Stipulations
 Fairs and public auctions
 Livestock sold as condemned

Persons Disqualified to Buy

 Husband and Wife, among each other
 Judges, justices, prosecuting attorneys, clerk of courts, etc., regarding property in
custodia legis
 Guardians, with respect to the property of their ward
 Agents, with respect to the property of their principal, unless there was consent
 Executor or Administrator, with respect to the property of the estate under
administration
 Public officers and employees, with respect to the property of the government, its
political subdivision or GOCCs that are entrusted to them
 Any others specifically disqualified by law
o Aliens who purchase private agricultural land
o Unpaid seller having a right of lien of stopped the goods in transitu, who is
prohibited from buying the goods either directly or indirectly in the resale of
the same
o Officers conducting the execution sale or his deputies

Exceptions to right to suspend payment

 Vendor gives security for the return of the price
 Stipulation that the vendee must make payment regardless
 Cessation of disturbance or danger
 Disturbance is a mere act of trespass
 vendee has paid the price in full

Requisites of Goods in transit

 Seller must be unpaid
 Buyer must be insolvent
 Goods must be in Transit
 Seller or his agent must either:
o Take actual possession of the goods sold, or
o Give notice of his claim to the carrier or other possessor
 Carrier must redeliver the goods to, or according to the directions of the seller

QUIZ 4 – FINALS 8