LAW ON SALES

Course Syllabus
Academic Year 2021-22, 1st Sem.
Atty. Glenn M. Mangaoil
Professor
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GENERAL PRINCIPLES
(Articles 1458 – 1488)

I. A. Definition of Sale
B. Characteristics of Sale
C. Sale Distinguished from other Contracts
D. Contract of Sale versus Contract to Sell

NEGOTIATION TO PERFECTION STAGE OF A CONTRACT OF SALE

(Articles 1489 – 1492)

I. A. General Rule on Capacity of Parties to buy and sell

B. Minors, Insane, or Demented Persons, Deaf-Mutes
C. Sales by and between Spouses
D. Specific Incapacity Mandated by Law

d.1. Legal Status of Contracts entered into in Violation of article 1491

d.2. Agents
d.3. Guardians, Administrators and Executors
d.4. Judges, Justices and those involved in Administration of Justice
d.5. Attorneys

II. A. Requisites of a Valid Subject Matter (1493- 1494)

a.1. Lack of Any Requisite Results in Non-existent Sale
a.2 Exception where Seller must be Owner the Time of Sale
a.3. Subsequent Acquisition of Title by Seller

B. Legality of Sale

III. A. Price is One Form of Consideration

B. Meaning of Price
C. Requisites for Valid Price
D. Manner of Payment of Price must be Agreed Upon
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IV. A. Stages in Life of Sale

B. Preparatory Stage

b.1. Offers
b.2. Option Contracts
b.3. Right of First Refusal
b.4. Proper Doctrine on Option Contracts vis-à-vis
b.5. Mutual Promises to Buy and Sell

PERFECTION TO DELIVERY STAGE: Offer and Acceptance

I. Form of Sales

d.1. Form not Important for Validity of Sale

d.2. Statute of Frauds: When Form is Important for Enforceability
d.3. Sales Effected as Electronic Commerce
d.4. Sales Effected as Electronic Commerce
d.5. Form of Equitable Mortgage Claims
d.6. Form in “ Sales on Return or Approval”

II. A. Obligations of a Seller (1495 – 1544)

B. Tradition as a Consequence of a Valid Sale
C. Completeness of Delivery
D. Double Sales

III . Obligations of Buyer (1582 – 1593)

IV. Conditions & Warranties

(1545 – 1581)

A. Conditions
B. Express Warranties
C. Implied Warranties
D. Implied Warranties in Sale of Goods
E. Additional Terms of Warranties for Consumer Goods
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V. Documents of Title

A. Definition
B. Rationale for the Documents of Title
C. Types of Documents of Title
D. Negotiation of Documents of Title
E. Assignment of Non-negotiable Documents of Title
F. Warranties on Negotiation or Assignment
G. Rules of Levy/ Garnishment of Goods Covered by Documents of Title

VI. A. When Seller is not Owner at Perfection

B. When Seller is not Owner at Consummation
C. Exceptions to Rules on Legal Effects of Sale by Non- Owner
D. Sale by a Seller who has Voidable Title on the Subject Matter Sold
E. “Title” as to Movable Properties

VII. When object is lost

A. Before Perfection
B. At Time of Perfection
C. After Perfection but Before Delivery
D. After Delivery
E. Structuring the Proper Doctrine on loss, Deterioration, Fruits and
Improvements

VIII. Remedies in cases of breach of Contract of Sale

(1594 – 1599)

A. Remedies in Case of Movables

-Ordinary Remedies of Seller
-Special Remedies of “Unpaid Seller” of Goods

i. Remedies of Buyer
ii. Recto Law: Sales of Movables on Installments
iii. Contracts to Sell Movables
iv. Lease with Option to Purchase
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B. Remedies in Case of Immovables

i. Remedies of Seller
ii. Remedies of Buyer
iii. Maceda Law: Sales of Real Estate on Installments

C. Cancellation of Judicial Sale

D. Remedy of Rescission

EXTINGUISHMENT OF SALE

A. In General
B. Conventional Redemption (1600 – 1618)
C. Legal Redemption (1619 – 1623)

ASSIGNMENT OF CREDITS (1624 – 1635)

A. Nature of Assignment in the Scheme of Things

B. Assignment of Credit in Litigation

BULK SALES LAW

RETAIL TRADE NATIONALIZATION LAW

CASES FOR DISCUSSION

Nool vs CA 276 SCRA 149 (Essence of Sale

Dignos vs CA 158 SCRA 375 (Kinds of Sale) (Absolute)
Peoples Homesite vs CA 133 SCRA 777 (Conditional)
Heirs of Juan Andres vs Rodriguez 332 SCRA 769 (Conditional)
Galang vs CA 225 SCRA 37 (Conditional)
Filoil Mktg vs IAC 169 SCRA 293 (Conditional)
Service Specialist vs IAC 174 SCRA 80 (Illicit Things)
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Traders Royal bank vs CA 269 SCRA 15 (Right to transfer ownership)

Guzman vs Bonnevie 206 SCRA 668
Polytechnic vs CA 369 SCRA 691
Rosencor devt vs Inquing 354 SCRA 119
State Investment vs CA 254 SCRA 368
David vs Tiongson 313 SCRA 63 (Art. 1460)
Villanueva vs CA 267 SCRA 89 (Art 1469)
De Leon vs Salvador 36 SCRA 507 (Art. 1470)
Alsua-Bett vs CA 92 SCRA 332
Tongoy vs CA 123 SCRA 99 (Art. 1471)
Lebagela vs Santiago 371 SCRA 360
Maharlika Publishing vs Farrales 105 SCRA 359 (Art. 1475)
Buenaventtura vs CA 416 SCRA 263
Swedish match vs CA 441 SCRA 1
Montecillo vs Reyes 385 SCRA 244
Lagrimas Boy vs CA 427 SCRA 196
Sampaguita Pictures vs Jalwindor 93 SCRA 420
Union Motors vs CA 361 SCRA 506
Adelfa Properties vs CA 240 SCRA 565
Litonjua vs L & R 328 SCRA 796
Asuncion vs CA 238 SCRA 602
San Miguel vs Huang 336 SCRA 737
Atkins vs Cua 102 Phils 948
Limson vs CA 357 SCRA 209
Manzano vs Perez 362 SCRA 430
Tan vs Mandap 429 SCRA 711
Tigno vs Aquino 444 SCRA 61
Vda de Espiritu vs CFI 47 SCRA 354
Levi Hermanos vs Gervasio 69 Phil 52
Nonato vs IAC 140 SCRA 255
Zayas vs Luneta Motor 117 SCRA 726
Heirs of Seraspi vs CA (1495) 331 SCRA 293
Devt. Bank. Vs CA 249 SCRA 331

Norkis Distributors vs CA (1496) 195 SCRA 694

Alliance Tobacco vs PVTA (1497) 179 SCRA 336
Ong Ching Po vs CA (1498) 239 SCRA 341
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Sabio vs Intl Corp bank. 364 SCRA 385

Montenegro vs Roxas 58 Phils 723
Phil Suburban vs Auditor 63 DCRA 397
Fortune Tobacco Corp vs NLRC 200 SCRA 766
Addison vs Felix 38 Phil 404
Vallarta vs CA 150 SCRA 336
Industrial Textile Mfg. Co. vs LPJ Enterprises 217 SCRA 322
Traders Royak bank vs CA 269 SCRA 15
Noel vs CA 240 SCRA 789

DOUBLE SALE (1544)

Bautista vs CA 230 SCRA 446
Occena vs Esponilla 431 SCRA 116
Olivarez vs Gonzales 159 SCRA 33
Astorga vs CA 133 SCRA 748
Quimson v Rosete 89 Phil 159
Caram vs Laureta 102 SCRA 7
Revilla vs Galindez 107 Phil 480
Navarro vs 2nd Laguna Devt Bank 398 SCRA 227
Tsai vs CA 366 SCRA 324
Cruz vs Cabana 129 SCRA 656
Conde vs CA 119 SCRA 245
Remalante vs Tibe 158 SCRA 138
Consolidated Rural Bank vs CA 449 SCRA 347
Espiritu vs Valerio 9 SCRA 761
Tenio vs CA 230 SCRA 550
Cheng vs Donato 300 SCRA 722
Carbonell vs CA 69 SCRA 99
Adalin vs CA 280 SCRA 536
Dischoso vs Roxas 5 SCRA 781
Cruzado vs Bustos. 34 Phil 16

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Ang vs CA 170 SCRA 286
Toyota Shaw vs CA 244 SCRA 320
Quijada vs CA 299 SCRA 695
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Heirs of Romana vs Casals 363 SCRA 435

Heirs of San Miguel vs CA 364 SCRA 523
Sun Bros Appliance vs Perez 7 Perez 977
Luzon Brokerage vs Maritime Bldg. 43 SCRA 93
Enriquez vs Diaz 37 Phil 982
Direct Funder Holding vs Lavina 373 SCRA 645
Co vs CA 312 SCRA 528
Adelfa Properties vs CA 240 SCRA 565
Abalos vs Macatangay 439 SCRA 649
Villegas vs CA 499 SCRA 276
Song Fo & Co vs Oria 33 Phil 3
De Leon vs Soriano 87 Phil 193
Bunge Corp vs Camenforte 91 Phil 861
Pacific Comm’l Co vs Ermita Market 56 Phil 617
San Miguel vs Huang GR # 137290 July 31, 2000
Manila Metal Container vs PNB 511 SCRA 444
Soriano vs Latono 87 Phil 575
Martines vs CA 358 SCRA 38
Vde de Espiritu vs CFI 47 SCRA 354
Lim vs Lim 10 Phil 635
Dela Lana vs Briones 508 SCRA 62
Pacific Commercial Co vs. Dela Rama 72 Phil 380
Dela Cruz vs Asian Consumer 214 SCRA 103
Manila Motors Co vs Fernandez 99 Phil 782
Levy Hermanos vs Pacific Commercial 711 Phil 587
Northern Motors vs Sapmoso 33 SCRA 356
Industrial Finance vs Ramirez 77 SCRA 152
Filinvest vs CA 178 SCRA 188
Elisco Tool vs Mfg. Corp. 307 SCRA 731
Manila Gas vs Calupitan 66 Phil 747
US Commercial vs Halili 93 Phil 271

END