Sales C9:

General Provisions

ARTICLE 1636:
In the preceding articles in this Title governing the sale
of goods, unless the context or subject matter otherwise
requires:
(1) "Document of title to goods" includes any bill of
lading, dock warrant, "quedan," or warehouse receipt
or order for the delivery of goods, or any other
document used in the ordinary course of business in the
sale or transfer of goods, as proof of the possession or
control of the goods, or authorizing or purporting to
authorize the possessor of the document to transfer or
receive, either by endorsement or by delivery, goods
represented by such document.

"Goods" includes all chattels personal but not things in

action or money of legal tender in the Philippines. The
term includes growing fruits or crops.

"Order" relating to documents of title means an order

by endorsement on the documents.

"Quality of goods" includes their state or condition.

"Specific goods" means goods identified and agreed

upon at the time a contract of sale is made.

An antecedent or pre-existing claim, whether for money

or not, constitutes "value" where goods or documents of
title are taken either in satisfaction thereof or as
security therefor.

(2) A person is insolvent within the meaning of this Title

who either has ceased to pay his debts in the ordinary
course of business or cannot pay his debts as they
become due, whether insolvency proceedings have been
commenced or not.

(3) Goods are in a "deliverable state" within the

meaning of this Title when they are in such a state that
the buyer would, under the contract, be bound to take
delivery of them. (n)

ARTICLE 1637:
The provisions of this Title are subject to the rules laid
down by the Mortgage Law and the Land Registration
Law with regard to immovable property. (1537a)