Syllabus for Law on Sales

By: Atty. AAS

Source Law: Civil Code of the Philippines

I. NATURE, FORMS, and REQUISITES

a. Definition – (Art. 1458)
b. Stages of Contract of Sale
i. San Miguel Properties v. Spouses Huang, GR No. 137290, 31 July
2000
c. Essential Characteristic of Sale
i. Consensual
ii. Nominate
iii. Principal
iv. Bilateral
v. Onerous
vi. Commutative
d. Requisites
i. Consent – (Art. 1475)
1. Auction Sale - (Art. 1476)
2. Reciprocal Obligation - (Art. 1479)
3. Option Money v. Earnest Money - (Art. 1479 and 1482)
a. Rizalino v. Paraiso Development Corporation, GR No.
157493, 05 February 2007
b. Elements of Option Contract
i. Philippine National Oil Company v. Keppel
Philippines, GR No. 202050, 25 July 2016
4. Sale by Sample v. Sale by Description - (Art. 1481)
5. Who are capacitated to buy and sell? (Art. 1489)
6. Sale by minor and incapacitated persons – (Art. 1327)
a. Labagala v. Santiago, 371 SCRA 360 2001
7. Sale between spouses – (Art. 1490)
a. As distinguished from a sale made by a spouse to
third persons
8. Persons prohibited to contract a sale by reason of their
profession/function - (Art. 1491)
ii. Object – (Arts. 1459 – 1465)
1. Emptio Rei Speratae – (Art. 1461)
2. Emptio Spei – (Art. 1461)
3. Test of Determinability of Object
a. Atilano v. Atilano, 28 SCRA 231 1969
4. Sale of Undivided Interest – (Art. 1463)
5. Sale of Undivided Share in Mass
a. Gaite v. Fonacier, 2 SCRA 831 1961
 6. Effect when the object of sale is lost - (Art. 1493)
7. Effect when the object of sale is deteriorated - (Art. 1494)
iii. Consideration – (Art. 1469 - 1474)
1. Requisites for Valid Price
2. Manner of Payment
a. Velasco v. CA, 51 SCRA 439 (1973)
3. Contract of Piece of Work – (Art. 1467)
a. Dino v. CA, 359 SCRA 156, 165 (1996)
4. Barter – (Art. 1468)
iv. Delivery – (Art. 1477)
1. Seller’s ability to transfer ownership, when required?
a. Quijada v. Court of Appeals, 299 SCRA 695, 696
(1998)
2. Types of Delivery
a. Actual
b. Constructive
i. Execution of Public Instrument – (Art. 1498)
ii. Symbolic Delivery – (Art. 1498)
iii. Constitutum Possessorium – (Art. 1500)
iv. Traditio Brevi Manu – (Art. 1499)
v. Tradition Longa Manu – (Art. 1499)
3. Contract to sell – (Art. 1478 and 1524)
4. Place and Time of Delivery – (Art. 1521)
5. Partial delivery
e. Forms of Contract of Sale – (Art. 1483)

II. OBLIGATIONS OF THE VENDOR

a. When is the thing considered delivered? - (Arts. 1495-1497)
b. Delivery of personal and real properties – (Art. 1498)
c. Delivery when there is “Sale on Approval” – (Art. 1502)
d. Delivery when there is “Sale or Return” – (Art. 1502)
e. Delivery of specific goods – (Art. 1503)
f. Delivery by bill of lading/agent – (Art. 1503)
g. Delivery with payment of bill of exchange – (Art. 1503)
h. Delivery of accessions and accessories – (Art. 1537)
i. Loss, deterioration, or improvement before delivery – (Art. 1538)
j. Delivery and acceptance of object as stipulated in the contract – (Art. 1539)
k. Delivery and acceptance of immovable objects – (Art. 1540-1542)
l. Rules on Double Sale – (Art. 1544)

III. OBLIGATIONS OF THE VENDEE

a. Acceptance of the thing sold – (Arts. 1582-1588)
b. Payment of interest – (Art. 1589)
 c. Suspension of Payment of the Price – (Art. 1590)

IV. RIGHTS OF VENDOR

a. Unpaid seller – (Art. 1525)
i. Rights of unpaid seller – (Art. 1524)
ii. Remedies of unpaid seller – (Art. 1526)
1. Lien - (Art. 1527)
2. Stoppage in transit – (Arts. 1530-1532)
3. Resale – (Art. 1533)
4. Rescission – (Art. 1534)

V. CONDITIONS AND WARRANTIES

a. Condition – (Art. 1545)
b. Warranty – (Art. 1546-1547)
i. Implied Warranty (under RA 7394 - Consumer Act of the
Philippines)
1. Implied Warranty of Merchantability (Art. 68 of RA 7394)
a. Duration
b. Breach of Warranties
2. Warranties in Supply of Services (Art. 69 of RA 7394)
ii. Warranty Against Eviction (Arts. 1548 – 1560)
iii. Warranty Against Hidden Defects (Arts. 1561-1581)

VI. INSTALLMENT SALES

a. Recto Law – Act. No. 4122
i. Spouses Alfredo v. PCI Leasing, GR No. 139233, 11 November 2005
b. Maceda Law – R.A. No. 6552
i. Covered Properties – (Sec. 2)
ii. Rights of buyer in case of default in payments – (Sec. 3)
iii. Grace period – (Sec. 4)
iv. Right to assign and sell the buyer’s interest – (Sec. 5)
v. Advance Payment – (Sec. 6)
vi. Void stipulations – (Sec. 7)
c. Condominium Law – P.D. 957
i. Requirements for Registration – (Sec. 4)
ii. License to sell and performance bond – (Sec. 5-6)
1. Exempt transactions – (Sec. 7)
2. Suspension – (Sec. 8)
3. Revocation of License – (Sec. 9)
iii. Registration of brokers, dealers, and salesman – (Sec. 11)
iv. Alteration of Plans – (Sec. 22)
v. Non-Forfeiture of Payments –(Sec. 23)
vi. Failure to pay installments – (Sec. 24)
 vii. Issuance of Title – (Sec. 25)

VII. EXTINGUISHMENT OF CONTRACT OF SALE – (Art. 1600)

VIII. REDEMPTION
a. Conventional (Art. 1601)
i. Equitable Mortgage – (Art. 1602)
1. Repula v. Estate of Spouses Otillo , GR No. 219638, 07
December 2016
ii. Period of validity – (Art. 1606)
b. Legal Redemption (Art. 1619)
i. Instances of Legal Redemption – (Art. 1620 – 1622)
ii. Period – (Art. 1623)
c. Extrajudicial and Judicial Redemption
i. Extrajudicial – (Act. No. 3135)
1. GE Money v. Spouses Victorino, GR No. 184301, 23 March
2015
ii. Judicial
1. Spouses Rosales v. Spouses Alfonso, GR No. 137792, 12
August 2003