DEMOTSTHENES R. ARBILON vs.

SOFRONIO MANLANGIT
G.R. NO. 197920 JANUARY 22, 2018

TIJAM, J. (Division)

NATURE OF THE ACTION: Complaint for recovery of Personal Property

FACTS: Respondent Sofronio Manlangit filed for a Complaint for recovery of personal
properties with writ of replevin alleging that he purchased on credit 1 compressor, 1
stainless Pump from Davao Diamond Industrial Supply. The compressor had been in
the possession of petitioner Arbilon from November 1997 up to the filing of the
complaint and despite demand, petitioner failed to return it. In his Answer, petitioner
argued that respondent is not the owner of the compressor for failure to pay the
purchase price of 200, 000. Petitioner alleged that he voluntarily assumed the obligation
to pay the compressor to Dao Diamond. RTC ruled in favor of the petitioner and found
that respondent wrote Davao Diamond a letter voluntarily surrendering the compressor
and the pump because he could not pay for it. On appeal, Court of Appeals reversed
RTC’s decision and held that the transaction between respondent and Davao Diamond
was a contract to sell since the stipulation in the Sales Invoice shows that the goods
listed shall remain the property of the seller until fully paid by the buyer. The court
further held that the payment made by Leanillo, fiancier of the mining operations taken
over by the respondent, of the compressor was to be considered as payment by third
person without the knowledge of the respondent. Hence ownership of the personal
properties was transferred to the respondent.

ISSUES:
1. Whether or not the contract between the seller and the respondent is a Contract
to sell
2. Whether or not the respondent has complied with his obligation to fully pay the
purchase price

HELD: YES. The sales invoice contains the earmarks of a contract to sell since the
seller reserved the ownership of the thing sold until the buyer fully paid the purchase
price. Since it is a contract to sell, the mere delivery of the compressor to respondent
does not make him the owner of the same.

While the sales invoice is not a formal contract to sell, the sales invoice is nevertheless
the best evidence of the transaction between the respondent and Davao Diamond.
Hence the moment respondent affixed his signature thereon, he is bound by all the
terms stipulated therein.