DE LA SALLE UNIVERSITY

College of Law
SALES (LAW 304M)

2005

Torcuator v. Bernabe, 459 SCRA 439, June 8, 2005

B.

Course Description
This two-unit course is designed to provide law students with a
thorough understanding of Sale as a contract its definition, elements,
characteristics, kinds and stages. There will be discussions on the rights
and obligations of parties to a contract of sale. Finally,

C.

Midterm Examination (30%)

Final Examination (40%)
D.

Stages
1.
2.
3.
4.

Discussion Guide

Overview of the Course Content and Methodology

Organizational Matters and Course Completion

Class Coordinator/s

Email Group
Session Two

Ainza v. Padua, 462 SCRA 614, June 30, 2005

E.

Kinds of Sale - Arts. 1458(2), 1488, 1544, 1403,

Maceda Law, Recto Law, 1477, 1501)
1.
a.
b.

As to whether the object is tangible or

intangible/corporeal or incorporeal
a.
sale of thing
b.
sale of right

2.

As to validity or defect of the transaction

a.
valid sale
b.
rescissible
c.
voidable
d.
unenforceable
e.
void

Definition - Art. 1458(1)

Villonco Realty Company v. Bormaheco, Inc., 65 SCRA

352, July 25, 1975
Ang Yu Asuncion v. Court of Appeals, 238 SCRA 602,
December 2, 1994

As to the nature of the subject matter

Sale of real property
Sale of personal property

1.

In General
A.

Negotiation
Perfection Arts. 1315, 1475
Performance - Arts. 1191, 1403(2)
Consummation

Session Three

Organizational Meeting

I.

consensual Art. 1475

bilateral - Art. 1458
onerous Art. 1350
commutative - Art. 2010
principal
nominate Art. 1458

Gaite v. Fonacier, 2 SCRA 830, July 31, 1961

Civil Code of the Philippines (R.A. 386) as amended

Sales, by Baviera, Araceli, UP Law Complex
Other pertinent laws
Cases on Sales decided by the Supreme Court

Session One

Characteristics
1.
2.
3.
4.
5.
6.

Active Participation in Class Discussions/ Quizzes (30%)

Basic References

History
Governing Law RA No. 386 (August 30, 1950); Arts.
1488, 1637
Commercial & Civil Sales

Course Requirements

1.
2.
3.

Vda. De Ape v. Court of Appeals, 456 SCRA 193, April 15,

3.

a.

As to the presence or absence of condition

a.
absolute sale
b.
conditional sale [Art. 1458]
c.
contract to sell

McCullough v. Berger, 43 Phil 823, September 26, 1922

Dichoso v. Roxas, 5 SCRA 781, July 31, 1962
Luzon Brokerage v. Maritime Building, 43 SCRA 93,
January 21, 1972
Portic v. Cristobal, 456 SCRA 577, April 22, 2005
Heirs of Jesus M. Mascunana v. Court of Appeals, 461
SCRA 186, June 23, 2005
Ursal v. Court of Appeals, 473 SCRA 52, October 14, 2005
Carrascoso, Jr. v. Court of Appeals, 477 SCRA 666,
December 14, 2005
Sacobia Hills Devt Corp. v. Ty, 470 SCRA 395, September
20, 2005
Keppel Bank V. Adao, 473 SCRA 372, October 19, 2005
Edrada v. Ramos, 468 SCRA 597, August 31, 2005

b.
124FC,

Rodriguez v. Mactal, 60 Phil 13, April 4, 1934

Rubias v. Batiller, 51 SCRA 120, May 29, 1973
Miguel v. Catalino, 26 SCRA 234, November 29, 1968
Estate of Salvador Serra Serra v. Heirs of Primitivo Hernaez, 466
SCRA 120, August 9, 2005
Mapalo v. Mapalo, 17 SCRA 114, May 19, 1966
Session Five
2.

Distinguished from other transactions

1.
Contract for a Piece of Work (Massachusetts
Rule) - Art. 1467
2.
Contract of Lease with Option to Buy
3.
Dacion en Pago Art. 1245
4.
Barter or Exchange Arts. 1468, 1638, 1954
5.
Agency to Sell Art. 1466
Heacock v. Buntal Manufacturing Co., 66 Phil 245,
September 26, 1938
Quiroga v. Parsons Hardware, 38 Phil 501, August 23,
1918
Ker v. Lingad, 38 SCRA 524, April 30, 1971
Del Monte Phils. v. Aragones, 461 SCRA 139, June 23,
2005

II.

Elements of a Contract of Sale

A.

Essential Elements
1.

Consent of the contracting parties

Parties to the Contract
Capacity of Parties- Arts. 1489, 1390, 1403

Subject matter (things & rights)- Arts. 1347, 1311,

1636(goods)
Requisites- Arts. 1458(1), 1459-1462, 1347-1349
Rules on the object of a contract of sale- Arts.
1463-1465
Assignment of Credit and Other Incorporeal RightsArts. 1624-1635

Session Four
F.

absolute - Arts. 1327-1328, Art.

234Family Code (FC) as amended
by RA 6809
relative Art. XII, Secs. 7 & 8, 1987
Constitution
Arts. 1490-1492, 1533(5), 1476(4),

Martinez v. Court of Appeals, 56 SCRA 647, April 29, 1974

Melliza v. City of Iloilo, 23 SCRA 477, April 30, 1968
3.

Cause - Arts. 1350, 1352-1353

Price certain in money- Arts. 1469, 1471-1474, 1308; RA

529, RA8183, PD72
Earnest Money- Art. 1482
Lesion - Arts. 1470, 1355
Villonco Realty Company v. Bormaheco, Inc., supra
Spouses Doromal , Sr. and Salas v. Court of Appeals, 66 SCRA
575, September 5, 1975
Goldenrod v. Court of Appeals, 299 SCRA 141, November 24,
1998
Edrada v. Ramos, 468 SCRA 597, August 31, 2005
Philippine Free Press, Inc. v. Court of Appeals, 473 SCRA 639,
October 24, 2005
Cruz v. Fernando, Sr., 477 SCRA 173, December 9, 2005
Morales Devt Co. v. Court of Appeals, 27 SCRA 484,
March 28, 1969
Laperal v. Rogers, 13 SCRA 26, January 30, 1965
De Leon v. Salvador, 36 SCRA 566, December 28, 1970
Velasco v. Court of Appeals, 51 SCRA 439, June 29, 1973

B.

Natural Elements
1.
2.

C.

2.
Sale by an apparent owner
3.
Purchase at Merchants Store, Market or
Fair Art. 559
Sun Bros. v. Velasco, 54 O.G. 5143, August 11, 1958
Salonga v. Concepcion, 470 SCRA 291, September 20,
2005
Sigaya v. Mayuga, 467 SCRA 341, August 18, 2005
Premiere Devt Bank v. Court of Appeals, 453 SCRA 630,
March 18, 2005
Siy Cong Bieng and Co. v. HSBC, 56 Phil 598 [1932]
Masiclat v. Centeno, May 31, 1956

warranties
subrogation

Accidental Elements

Session Six
III.

Perfection of the Contract

A.

When perfected- Arts. 1475-1476, 1479(1)

When/How transfer is effected? - Arts. 1477, 1459, 1496,

1547, 1588

Cruz v. Fernando, Sr., supra

B.

General Rule:
Ilao-Quianay v. Mapile, 474 SCRA 246, October 25, 2005

Contract of Option- Arts. 1479, 1324

Sanchez v. Rigos, 145 SCRA 368, June 14, 1972
Equatorial Realty Devt, Inc. v. Mayfair Theater, Inc., 264 SCRA
483, November 21, 1996

C.

Exceptions:
1.
sale or return - Art. 1502(1)
2.
sale on approval or trial Art. 1502(2)
3.
conditional sales - Arts. 1478, 1503(1),
1458(2)

Formalities of Contract of Sale (Statutes of Fraud) - Arts.

1483, 1403, 1625, 1356-1358, 1874; Sec. 22 Act 1147
(Cattle Registration Act)
Paredes v. Espino, 22 SCRA 1000, March 13, 1968
Inigo v. Maloto, 21 SCRA 246, September 28, 1967
Cuyugan v. Santos, 34 Phil 100, March 3, 1916
Dalion v. Court of Appeals, 182 SCRA 872, February 28,
1990
Yuvienco v. Dacuycuy, 104 SCRA 668, May 27, 1981
Vda. De Jomoc v. Court of Appeals, 200 SCRA 74, August
2, 1991
Santos v. Manalili, 475 SCRA 679, November 22, 2005

Vallarta v. Court of Appeals, 150 SCRA 336, May 29, 1987

Session Eight
Risk of Loss or Deterioration (Total/Partial)- Arts. 1504,
1480, 1493-1494, 1538(1189), 1163, 1174
General Rule: Res perit domino
Exceptions:
1.
Stipulation
2.
Security Title
3.
Delay

Session Seven
IV.

To transfer ownership

Lawyers Cooperative v. Tabora, 13 SCRA 762, April 30,

1965
De Lizardi v. Yaptico, 30 Phil 211, March 22, 1915
Sun Bros. Appliances v. Perez, 7 SCRA 977, April 30, 1963

Who can transfer ownership?

Double Sales- Art.1544

Rights and Obligations of the Vendor - Art. 1495

A.

General Rule - Arts. 1505-1506, 1547

Rule (Movables/Immovables)

Cuison v. Remoto, 472 SCRA 274, October 11, 2005

Exceptions: Art. 1505
1.
Estoppel- Arts. 1431, 1433-1434

Cuison v. Remoto, supra

Ulep v. Court of Appeals, 472 SCRA 274, October 11,
2005

Sigaya v. Mayuga, supra

Bautista v. Sioson, 39 Phil 615, February 11, 1919

Lichauco v. Berenguer, 39 Phil 643, February 27, 1919
Paylago v. Jarabe, 22 SCRA 1247, March 27, 1968
Quimson v. Rosete, 87 Phil 159, August 9, 1950
When not applicable?
1.
unregistered lands
Carumba v. Court of Appeals, 31 SCRA 558, February 18,
1970
Vda. De Jomoc v. Court of Appeals, supra
Hanopol v. Pilapil, 7 SCRA 452, February 28, 1963

Board of Liquidators v. Floro, 110 Phil 482, December 29,

1960
Session Ten
Quality/Quantity)- Arts. 1481, 1522, 1539-1543,
1630, 1632-1633
Rudolf Lietz, Inc. v. Court of Appeals, 478 SCRA 451,
December 19, 2005
Santa Ana, Jr. v. Hernandez, 18 SCRA 973, December 17,
1966
Asiain v. Jalandoni, 45 Phil 296, October 23, 1923
Azarraga v. Gay, 52 Phil 599, December 29, 1928

Session Nine
B.

Not bound to deliver when? - Arts. 1524, 1536(1198)

To deliver the object and its accessions - Art.
1537(1164)

Visayan Distributors, Inc. v. Flores, 92 Phil 145, October

15, 1952

Kinds of Delivery of Incorporeal Property (Quasi-tradition) Arts. 1501, 2095

Place of Delivery - f.o.b., c.i.f., f.a.s. )- Arts. 1521(1),

1251, 1582

Kinds of Delivery of Corporeal Property (Tradition) Art. 1477

Behn, Meyer & Co. v. Yangco, 38 Phil 606, September 18,

1918
Bislig Bay Lumber Co. v. CIR, 1 SCRA 156, January 28,
1961
Time of Delivery - Art. 1521(2)

1.
2.

Actual (Real or Material) - Art. 1497

Constructive (Symbolic or Formal)
a.
delivery by the execution of a public
instrument- Art. 498(1)
b.
tradition longa manu- Arts. 1498(2),
1499
c.
tradition brevi manu- Art. 1499
d.
tradition constitutum possessorium- Art.
1500
e.
delivery to a common carrier- Arts.
1503, 1523, 1582
f.
when goods are in the possession of a third
person- Art. 521(3)

Kuenzle & Streiff v. Macke & Chandler, 14 Phil 610,

December 16, 1909
Addison v. Felix, 38 Phil 404, August 3, 1918
Daguilan v. IAC, 168 SCRA 22, November 28, 1988
Pasagui v. Villablanca, 68 SCRA 18, November 10, 1975
Dy, Jr. v. Court of Appeals, 198 SCRA 826, July 8, 1991
Power Commercial and Indl Corp. v. CA, 274 SCRA 597,
June 20, 1997
Florendo v. Foz, 20 Phil 388, October 24, 1911
Philippine Suburban Devt. Corp. v. The Auditor General, 63
SCRA 397, April 18, 1975

Republic v. Litton & Co., 94 Phil 52, November 28, 1953

Prescription- Art. 1543
C.

Warranties - Arts. 1495, 1567, 1571, 1628, 1629,

1631
1.

Express- Art. 1546

Carrascoso, Jr. v. Court of Appeals, supra

Philippine Manufacturing Co. v. Go Joco, 48 Phil 621,
January 21, 1926
Distinguished from:
i)
condition)- Art. 1545
ii)
dealers talk
iii)
false representation
2.

Implied warranties

i)
ii)

iii)

warranty against eviction

(warranty of title) )- Arts.
1548-1559
warranty against hidden
encumbrances or defects)Arts. 1560, 1561, 15671581, 613, 615
warranty of quality)- Arts.
1562-1565, 1586, 1599(5)

6.

Katigbak v. Court of Appeals, 4 SCRA 242, January 31,

1962
Song Fo & Co. v. Hawaiian-Phil. Co., 47 Phil 821,
September 16, 1925
Weyerhauser Timber Co. v. First Natl Bank of Portland,
38 P2d 48
B.

Remedies of the Buyer- Arts. 1539, 1542-1543, 1567,

1571, 1599
1.
specific performance- Arts. 1598
2.
damages
3.
rescission- Arts. 1481

Guinhawa v. People, 468 SCRA 278, August 25, 2005

Power Commercial and Indl Corp. v. CA, supra
Bautista v. Lasam, 72 Phil 506, June 27, 1941
Mendoza v. Caparros, 94 Phil 317, January 30, 1954
D.
Session Eleven
V.

Others)- Arts. 1480, 1163, 1538, 1537, 1164, 1487,

1521 last par.

Recto Law Sale of Movables on Installment- Arts. 14841486

Luneta Motor C. v. Salvador, 108 Phil 1037, July 26, 1960
Industrial Finance Corp. v. Ramirez, 77 SCRA 152, May

Rights and Obligations of the Vendee

A.

Payment of Price) - Arts. 1582, 1590, 1593

Time and Place
Liability for interest)- Art. 1589

B.

Right of Inspection/Examination)- Arts. 1584, 1481

C.

Right to the fruits- Arts. 1537, 1164

D.

Acceptance- Arts. 1582-1583, 1585-1588, 1593

The Maceda Law (RA 6552) Sale of Immovables on

Installment
Ramos v. Heruela, 473 SCRA 79, October 14, 2005
Fabrigas v. San Francisco del Monte, Inc. 476 SCRA 247,
November 25, 2005
VI.

Remedies for Breach of Contract

A.

Remedies of an Unpaid Seller- Arts. 1525-1526

1.
withhold delivery (possessory lien) - Arts.15271529, 1535, 2241(3)
2.
stoppage in transitu )- Art. 1530-1532, 1535,
1636(2)
3.
resell the goods- Art. 1533
4.
rescission- Arts. 1534, 1597, 1591-1593, 1191, 1556,
1484, 1532, 1567, 1580
5.
action for the price specific performance- Art.
1595

action for damages- Art. 1596

26, 1977

Northern Motors, Inc. v. Sapinoso, 33 SCRA 1970, May 29,

1970

UMC v. Dy Hian Tat, 28 SCRA 161, May 16, 1969

Cruz v. Filipinas Investment & Finance Corp., 23 SCRA
791, May 27, 1968
Session Twelve
VII.

Extinguishment of Sale
A.

Causes- Arts. 1600, 1231, 1626, 1634-1635

B.

Redemption
1.

Conventional - Art. 1601

Pacto de Retro Sale- Arts. 1607, 1609, 16111518, 1676-1677
Equitable Mortgage- Arts. 1602-1605
Period to Redeem- Art. 1606
Who may exercise the right to redeem? - Arts. 1608,
1610, 1612, 1614-15

Cadungog v. Yap, 469 SCRA 561, September 12, 2005

Salonga v. Concepcion, supra
Go v. Bacaron, 472 SCRA 339, October 11, 2005
Gerardino, Sr. v. CFI Capiz Br. III, 80 SCRA 646, December
29, 1977
Yturralde v. CA, 43 SCRA 315, February 28, 1972
Marquez v. Valencia, 77 Phil 782, December 22, 1946

Quinga v. Court of Appeals, 3SCRA 66, September 19,

1961
Gloria-Diaz v. Court of Appeals, 84 SCRA, July 31, 1978
Heirs of Francisco Parco v. Haw Pia, 45 SCRA 164, May
30, 1972
Session Thirteen
1.

Legal- Arts. 1619-1623

Spouses Doromal , Sr. and Salas v. Court of Appeals, supra

Almendrada v. Ngo, 471 SCRA 311, September 30, 2005
Aguilar v. Aguilar, 478 SCRA 187, December 16, 2005
Villasor v. Medel, 81 Phil 546, September 29, 1948
Ortega v. Orcine, 38 SCRA 276, March 31, 1971
Session Fourteen
FINAL EXAMINATIONS (by agreement of the class)
RMP/ Thanks to Prof. CAUribe