1484.

RECTO LAW
Contract of Sale Payable in INSTALLMENTS for Personal Properties
The ALTERNATIVE Remedies of the vendor or seller in case of failure to pay by the vendor or buyer:
1. Exact fulfillment of the obligation, should the vendee fail to pay
2. Cancel the sale should the vendee’s failure to cover 2 or more installments
3. Foreclosure the chattel mortgage on the thing sold, if one has been constituted, should the vendee’s
failure to cover 2 or more installments. In this case, he shall have no further action against the purchaser
to recover any unpaid balance of the price. Any agreement to the contrary is void.

1469. Price
If the SPECIFIED PERSON is prevented by fault of a party, the aggrieved party may have remedies
against the party at fault
1481. Sale of goods by description and/or sample
Remedies: a) Cancel or rescind the sale, return the goods and collect the account paid.
b) Retain the goods and sue for breach of warranty
1486. Maceda Law (RA 6552)
Section 3: Remedies for the buyer when he has paid at least 2 years of installments in case he defaults in
payment of succeeding installments:
a) To pay without interest within the total grace period – 1 month for every 1 year installment (can only
be availed 1x every 5 years)
b) Cancel the contract, seller give 50% + 5% per year if after 5 years of installments but does not exceed
90% of the total payments (Provided, the actual cancellation of the contract shall take place after thirty
days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by
a notarial act and upon full payment of the cash surrender value to the buyer)
1493 Loss of the Object BEFORE SALE IS PERFECTED
Partially Lost Remedies:

 Withdrawal or rescission

 Specific performance as to the remainder by the payment of proportional price

1520. Creditor’s remedies to reach negotiable documents.
Aid from courts of appropriate jurisdiction by injunction
1522.
Delivery of goods less than quantity contracted. The buyer:
1. Can reject all
 2. But if the buyer accepts (1) he must pay for them at the contract rate if he knew that no more
were to be delivered or (2) the fair value (reasonable value) of the goods.
Delivery of goods more than quantity contracted. The buyer:
1. Can accept the goods included in the contract
Note: He accept the whole of the goods so delivered he must pay for them at the contract
rate.
2. Reject the rest.
Note: General Rule- he can’t reject all
Exception- subject matter is indivisible.
Delivery of goods mixed with others. The buyer:
1. Can accept the goods included in the contract
2. Reject the rest.
Note: General Rule- he can’t reject all
Exception- subject matter is indivisible.

1526. Remedies of the Unpaid Seller:

Possessory lien on the goods or Right to retain
Right of Stoppage in transit
Right of Resale
Right to Rescind sale
1539. Sale of real property by unit of measure or number.
1. Demand the area lacking
2. Rescind- be not less than 1/10
3. Ask for reduction for the price
1545. Effect of non-fulfillment of condition.
Either party:
1. Refuse to (sell) proceed with the contract
2. Proceed with the contract, waiving the performance of the condition.
1556. Alternative rights of vendee in case of partial eviction.
1. Rescission
2. Sue the seller against warranty against eviction
1567. Alternative remedies of the buyer to enforce warranty.
1. To withdraw from the contract
2. demand a proportionate reduction of the price, with a right to damages in either cases.
1580. Alternative remedies of vendee in sale of animals.
~ Redhibitory action
~ action quanti minoris
PERIOD: The action must be brought within 40 days from the date of the delivery of animals to the
vendee.
1590. Vendee can suspend payment of price.
1591. Vendor may rescind sale of immovable property.
3 Remedies of the seller:
1595. Payment of the price
1596. Damages for non-acceptance of the goods.
1597. Rescission of the contract
2 Remedies of the buyer:
1598. Specific performance
1599. Rescission or damages for breach of warranty.
Buyer-Remedies (alternative)
1. Accept and recoupment
2. Accept and damages for the breach of warranty.
3. Refuse to accept and damages
4. Rescind/Recover and damages
PERIODS
1543. Actions arising from articles 1539 and 1542 shall prescribe in six months, counted from the day of
delivery.
1550. Prescription (Statute of Limitation)
1. Acquisitive- 10 years in Good Faith// 30 years in Bad Faith
2. Extinctive- 10, 6, 4, 1
1571. The actions for rescission or reduction the price must be brought within the proper period- SIX (6)
MONTHS from the delivery of the thing sold.
1577. The actions for rescission or reduction the price must be brought within the proper period- within
40 DAYS from the date of the delivery in case of animals.
1578. If the animal should die within THREE DAYS after its purchase, vendor is liable.
1606. Period for exercise of right of redemption.
1. No agreement/granting right- no right of redemption
2. Agreement merely grants rights- four (4) years from the date of the contract.
3. Definite period of redemption agreed upon- within the period fixed provided it does not exceed
ten (10) years.
4. Period of redemption agreed upon not satisfied- 10 years.
5. Period agreed upon exceeds ten years- the vendor a retro has 10 years from the execution of the
contract.
6. Final judgment rendered that contract pacto de retro- the vendor a retro has 30 days within
which to exercise the right to repurchase
1623. Period for exercise of right of pre-emption or redemption.
The period of 30 days is counted from the notice in writing given by the vendor.