Arellano Law Foundation

ARELLANO UNIVERSITY SCHOOL OF LAW

SALES
A.Y. 2020 – 2021, Second Semester
Atty. Mark Erwin C. Castillo, LLM

COURSE SYLLABUS*

I. Nature of Sale
A. Definition of Sale
i. nature of obligations created in a sale
ii. subject matter of sale
iii. elements of the contract of sale
a. Uy vs. Heirs of Julita Uy-Renales, G.R. No. 227460, December 5, 2019
iv. stages in the life of sale
a. Desiderio Dalisay Investments, Inc. vs. Social Security System, G.R. No. 231053,
April 4, 2018
B. Essential Characteristics of Sale
i. nominate and principal
ii. consensual
a. Selerio vs. Bancasa, G.R. No. 222442, June 23, 2020
iii. bilateral and reciprocal
iv. onerous
v. commutative
a. Spouses Paguyo vs. Astorga, G.R. No. 130982, September 16, 2005
vi. sale is a form of “title” and not a “mode”
C. Sale Distinguished from Other Similar Contracts
i. from donation
ii. from barter
iii. from dacion en pago
a. Spouses Pen vs. Spouses Julian, G.R. No. 160408, January 11, 2016
iv. from contract for a piece of work
a. Engineering & Machinery Corporation vs. Court of Appeals, G.R. No. 52267,
January 24, 1996
b. Commissioner of Internal Revenue vs. Court of Appeals, G.R. No. 115349, April
18, 1997
v. from agency to sell or to buy
vi. from lease

II. Parties to the Contract of Sale

A. General Principles on Capacity of the Parties

* While the syllabus was patterned to [Villanueva and Villanueva-Tiansay (2016), The Law on Sales], students are
free to use any available reference.
 B. Minors, Insane or Demented Persons, and Deaf-Mutes
i. necessaries
ii. senility and serious illness
a. Almeda vs. Heirs of Ponciano Almeda, G.R. No. 194189, September 14, 2017
b. Domingo vs. Court of Appeals, G.R. No. 127540, October 17, 2001
C. Sale By and Between Spouses
i. sales with third persons
ii. sales between spouses
iii. applicability of incapacity to common law spouses
a. Ching vs. Goyanko, G.R. No. 165879, November 10, 2006
b. Cruz vs. Court of Appeals, G.R. No. 120122, November 6, 1997
c. Calimlim-Canulas vs. Fortun, G.R. No. 57499, June 22, 1984
D. Specific Incapacity Mandated by Law
i. legal status of contracts entered into in violation of Articles 1491 and 1492
ii. agents
iii. guardians, administrators and executors
a. Philippine Trust Company vs. Roldan, G.R. No. L-8477, May 31, 1956
iv. judges, justices and those involved in the administration of justice
a. Sabidong vs. Solas, A.M. No. P-01-1448, June 25, 2013
b. Macariola vs. Asuncion, Adm. Case No. 133-J, May 31, 1982
v. attorneys
a. The Conjugal Partnership of Spouses Cadevedo vs. Lacaya, G.R. No. 173188,
January 15, 2014

III. Subject Matter

A. Requisites of Valid Subject Matter
i. subject matter must be a “possible thing”
ii. subject matter must be licit
a. The Heirs of Peter Donton vs. Stier, G.R. No. 216491, August 23, 2017
b. Frenzel vs. Catito, G.R. No. 143958, July 11, 2003
iii. subject matter must be determinate or “at least determinable”
a. Naranja vs. Court of Appeals, G.R. No. 160132, April 17, 2009
b. Johannes Schuback & Sons vs. Court of Appeals, G.R. No. 105387, November 11,
1993
c. Atilano vs. Atilano, G.R. No. L-22487, May 21, 1969
d. Melliza vs. City of Iloilo, G.R. No. L-24732, April 30, 1968
iv. seller’s ability to transfer ownership required at the time of delivery, not perfection
a. Mananzala vs. Court of Appeals, G.R. No. 115101, March 2, 1998

IV. Price and Other Consideration

A. Meaning of Price
B. Requisites for Valid Price
i. price must be real
 a. Spouses Viovicente vs. Spouses Viovicente, G.R. No. 219074, July 28, 2020
b. Peñalosa vs. Santos, G.R. No. 133749, August 23, 2001
ii. price must be in money or its equivalent: valuable consideration
a. Doles vs. Angeles, G.R. No. 149353, June 26, 2006
b. Bagnas vs. Court of Appeals, G.R. No. L-38498, August 10, 1989
iii. price must be certain or ascertainable at perfection
iv. manner of payment of price must be agreed upon
a. Bortikey vs. AFP Retirement and Separation Benefits System, G.R. No. 146708,
December 13, 2005
b. San Miguel Properties Philippines, Inc. vs. Spouses Huang, G.R. No. 137290, July
31, 2000
v. instances when there is sale even when no price has been agreed upon
a. Hyatt Elevators and Escalators Corporation vs. Cathedral Heights Building
Complex Association, Inc., G.R. No. 173881, December 1, 2010
C. Inadequacy of Price
a. Sta. Fe Realty, Inc. vs. Fabregas, G.R. No. 199431, August 31, 2016
D. When Motive Nullifies Sale
a. Heirs of the late Spouses Balite vs. Lim, G.R. No. 152168, December 10, 2004

V. Stages in Life of Sale