Dedicatoria, Gail S.

BSA II-C

PRESCRIPTIVE PERIOD
The actions based on Articles 1539 and 1542 for either rescission of the contract
or proportionate reduction of the price must be brought within six months counted from
the day of delivery.
Circumstances wherein vendee may choose between a proportional reduction of
the price and the rescission of the contract:

 Where entire area could not be delivered.

If all that is included within the stipulated boundaries is not delivered, then the
object of the contract, its cause as far as the vendee is concerned, is not delivered.
Hence, he is entitled to rescind it. He may, however enforce the contract with the
corresponding decrease in price.

Example:
A bought 1,000 square meters of land at 1,200 per square meter from B on
Jan.1, 2020. However, due to whatever reason, B was unable to deliver the entire area
as stated in their agreement. Here, A is entitled to rescind the contract or demand for a
proportionate reduction of the price from the date of delivery which is Jan.1, 2019 to
June 30, 2020. Failure to do so would mean that A’s right has prescribed.

 If the lack in area is at least 1/10th than that stated or stipulated.

The 1/10th mentioned must be based on the area stipulated in the contract, and not
on the real area which the thing may actually have.

 If the deficiency in the quality specified in the contract exceeds 1/10th of

the price agreed upon.

 If the vendee would not have brought the immovable had he known of its
smaller area or inferior quality irrespective of the extent of the lack in area
or quality.

Example:
D bought from Z 2,000 square meters of agricultural land for 1,500 per square
meter. D decided to see the land one month after the sale on Feb.1, 2020, D had
learned that the land cannot grow crops for it was contaminated with chemicals from the
nearby plant. D would not have bought the land knowing its present condition. D can
rescind the contract or ask for proportionate reduction in the price if he wishes to
continue with it. He must demand on or before June 30, 2020 for his rights will prescribe
on July 1, 2020.
  Where area or number stated together with boundaries.
If the vendor cannot deliver to the vendee all that is included within the
boundaries mentioned in the contract, the latter has the option to reduce the price in
proportion to the deficiency or to set aside the contract.

Example:
V sold 900 square meters of land to L amounting to 500,000 lump sum on June
30,2020. Subsequently, it had been ascertained that there is actually 1,200 square
meters of land. In this case, V is bound to deliver all 1,200 square meters but if V refuse
to so, L can ask for proportionate reduction of price of 3/4 of the original price of
375,000. L must demand for this on or before Dec.31, 2020 for him to reinforce his
rights.

 The area of land sold for a lump sum is less than that stated in the contract.

Example:
X sold to Y lot no.35, Kangleon Street, Maasin City for the sum of P30,000. The
document states that there is 500 square meters of land. On Sept.01,2019, the date
assigned for the execution of the final deed of sale, Y refused to pay the agreed price
claiming that the land was actually less in area than that stated in the contract. Y must
claim a proportional reduction of the price or end the contract on or before Feb.01,2020,
in a six months’ prescriptive period from the deed of sale.

 In a sale of land for a lump sum, the deficiency in the stated area to which
the parties paid particular attention when they entered into that contract
was almost 1/3.

Example:
M sold to R, a farm which, according to M, contained an area of 15 hectares
more or less, the remaining crops is said to yield not less than 1,000 corns. During the
negotiations, R always doubted the correctness of the area and the amount of crop
given by M who always assured R that they were correct. In short, the parties made the
sale on Mar.1,2019 with particular attention to the area. It turned out that the land
contained only 8 hectares and the crop yielded only 400 corns. R can choose of ending
the contract or proportionate reduction of price within a six-month prescription period
which is on or before Aug,1,2019.