Slide 1

1590. Should the vendee be disturbed in the possession or ownership

of the thing acquired, or should he have reasonable grounds to fear
such disturbance, by a vindicatory action or a foreclosure of mortgage,
he may suspend the payment of the price until the vendor has caused
the disturbance or danger to cease, unless the latter gives security for
the return of the price in a proper case, or it has been stipulated that,
notwithstanding any such contingency, the vendee shall be bound to
make the payment. A mere act of trespass shall not authorize the
suspension of the payment of the price.

EXPLANATION:
Article 1590 of the Philippine Civil Code deals with the suspension of
payment of the price by the buyer in case of disturbance in the possession
or ownership of the property purchased. If the buyer is disturbed in the
possession or ownership of the property, or has reasonable grounds to fear
such disturbance, the buyer may suspend the payment of the price until the
seller has caused the disturbance or danger to cease.

Slide 2
Vendee may suspend payment in the following cases:
1. If he is disturbed in the possession or ownership of the thing bought; or
2. If he has a well-grounded fear that his possession or ownership would be
disturbed by vindicatory action/mortgage foreclosure.

Vendee cannot exercise right:

1. Vendor gives SECURITY for the return of the price
2. If it has been STIPULATED that vendee must make payment
notwithstanding any contingency
3. Vendor has caused the disturbance or danger to CEASE
4. Disturbance is a mere act of TRESPASS
5. Vendee has FULLY paid the price

EXAMPLE OF ART 1590

For example, let's say Jun purchases a house from Kim. After Jun has
already paid the purchase price, a Miss Gem claims ownership of the
property and files a lawsuit against Jun. In such a case, Jun can suspend
the payment of the price until the issue of ownership is resolved. If Kim fails
to resolve the issue of ownership, Jun may even be entitled to rescind the
contract of sale and demand a refund of the purchase price.

It is important to note, however, that a mere act of trespass, such as a

neighbor walking across the property, is not sufficient to authorize the
suspension of payment of the price. The disturbance must be substantial
enough to threaten the buyer's ownership or possession of the property.

Slide 3
1591. Should the vendor have reasonable grounds to fear the loss of
immovable property sold & its price, he may immediately sue for the
rescission of the sale. Should such ground not exist, the provisions of
Article 1191 shall be observed.
Article 1191 tells us that when there is just cause, instead of decreeing
rescission, the court may extend the period for payment. However, 1592
specifically provides that the court may no longer grant a new term when a
judicial/notarized demand has been made.

EXPLANATION
Article 1591 of the Civil Code of the Philippines states that if the vendor
(seller) of an immovable property (such as land or a building) has reasonable
grounds to fear that he may lose both the property and the price (payment)
for it, he may file a lawsuit to rescind (cancel) the sale.

EXAMPLE
For example, if a Gem sells a piece of land to Kim and later finds out that
there are pending legal claims against the property that could result in the
property being taken away from Kim and Gem losing the payment for it, Gem
may file a lawsuit for rescission of the sale to protect herself from such loss.

However, if there are no reasonable grounds for such fear, the provisions of
Article 1191 of the Civil Code will be observed. Article 1191 provides for the
rescission of a contract in case of a breach by one of the parties. Therefore,
if there is no valid reason for Gem to fear losing the property and the price,
but Kim breaches any of the terms and conditions of the sale, Gem may file
a lawsuit to rescind the sale based on Article 1191.
Slide 4
1592. In the sale of immovable property, even though it may have been
stipulated that upon failure to pay the price at the time agreed upon the
rescission of the contract shall of right take place, the vendee may pay,
even after the expiration of the period, as long as no demand for
rescission of the contract has been made upon him either judicially or
by a notarial act. After the demand, the court may not grant him a new
term.

EXPLANATION
Article 1592 of the Civil Code of the Philippines states that in the sale of
immovable property, even if the contract stipulates that the failure to pay the
price at the agreed-upon time will result in the automatic rescission of the
contract, the buyer (vendee) may still pay the price even after the period has
elapsed, as long as no demand for rescission has been made upon him,
either judicially or by a notarial act.

This means that if the buyer fails to pay the price on the agreed-upon time,
the seller (vendor) can demand rescission of the contract. However, if the
seller has not yet made such demand, the buyer can still pay the price and
fulfill his obligations under the contract. But once the demand for rescission
is made, the buyer cannot be granted a new term to pay the price.

Slide 5
Article 1592 does not apply if:
1. Sale on installment of real estate – but Article 6552 applies
2. Contracts to sell or conditional sale of real estate – since payment is the
suspensive condition that will give rise to vendor’s obligation to convey title,
non-payment will not justify rescission, it merely suspends vendor’s
obligation.

EXAMPLE
For example, Kim sells a piece of land to Jun, with the agreement that Jun
will pay the purchase price within six months. After six months, Jun still has
not paid the price, and Kim demands rescission of the contract. However,
before the court grants the rescission, Jun pays the purchase price. In this
case, Jun can still fulfill his obligations under the contract by paying the price
even after the agreed-upon time has elapsed, as long as no demand for
rescission has been made. But if Kim had already made the demand for
rescission, the court cannot grant Jun a new term to pay the price.

1593. With respect to movable property, the rescission of the sale shall
of right take place in the interest of the vendor, if the vendee, upon the
expiration of the period fixed for the delivery of the thing, should not
have appeared to receive it, or, having appeared, he should not have
tendered the price at the same time, unless a longer period has been
stipulated for its payment.

EXPLANATION
Article 1593 of the Civil Code of the Philippines pertains to the rescission of
a sale of movable property. According to the said article, if the vendee fails
to appear to receive the movable property upon the expiration of the period
agreed upon for its delivery, or if the vendee appears but fails to tender the
price at the same time, then the vendor has the right to rescind the sale.

When the object of the sale is MOVABLE, rescission of the vendor

takes place:
1. Vendee without valid cause does not accept delivery.
2. Vendee without valid cause does not pay the price UNLESS credit period
has been given to him.

Similar to the requirement of demand in 1592, the vendor should take some
affirmative action indicating intention to rescind.

EXAMPLE
For instance, suppose that Jun agreed to sell a car to Gem for Php 500,000,
payable within 30 days. The parties agreed that the delivery of the car would
take place on the 15th day after the execution of the contract. On the 15th
day, Gem did not appear to receive the car. Jun sent a notice to Gem
informing her of the delivery and requesting payment, but Gem did not
respond. In this case, Jun may exercise his right to rescind the sale and
recover the car, as Gem did not appear to receive the car upon the expiration
of the agreed period, and did not tender payment at the same time.