SALES (OUTLINE 2) - simulated price -- void contract (1471 and 1353)

Prof. M.I.P. Romero/ 2018 Heirs of Ureta v. Heirs of Ureta Sept. 14, 2011
Phil. Banking Corp. v. Dy GR 183774; Nov.
14, 2012

1. SUBJECT MATTER OF SALE -- Art. 1347 (things and

rights) 3. PARTIES TO A SALE

a) Consent - meeting of the minds upon the thing and the price
Arts.1461 – 1465
- consent that affects perfection of the contract
- when nonfulfillment of condition prevents perfection of the
contract
DEFINE and give EXAMPLES of the following: - when nonfulfillment of condition affects performance of the
- must be licit (1459) obligation
Review: People’s Homesite v. CA
- illicit per se v. illicit per accidens Romero v. CA
- within the commerce of man (1347) Add: Lim v. CA October 24, 1996
- not impossible (1348) Recio v. Heirs of Spouses Altamirano
- future inheritance vs. interest in an inheritance (1347) (GR 182349; July 24, 2013)
- determinate OR determinable things (1458, 1460; 1349)
- generic things
- fungible goods (1464) b) Capacity to Give Consent
- thing having a potential existence (1461) - General Rule - Art. 1489, par.1
- emptio rei speratae v. emptio spei
- goods whose acquisition by seller depends upon contingency - Absolute incapacity - Art. 1327, 1390
(1462) Relate to Art. 1489, par. 2
- things subject to a resolutory condition (1465)
- acquired under legal or conventional redemption - Relative incapacity - Art. 1490 (See Arts. 87, 96, 124, 194
- property subject to Reserva Troncal (study concept) Family Code)
- future goods (1347; 1462) Arts. 1491, 1492
- undivided interest in a thing (1463)
- “nemo dat quod non habet” – (1459 and 1434) ---Rt to transfer NOTE: Know the RATIONALE for the prohibitions and the
ownership at time of delivery; Exceptions – ( 1505, 1506); Relate to Art. EFFECTS on the legality of the contract
559
CASES:
Yu Tek & Co. v, Gonzales GR L-9935 Feb.1, Guiang v. CA 291 SCRA 372 (1998)
1915 Medina v. Coll. Of Int. Rev. GR 15113 (Jan. 28,1961)
Compana Gen. de Tabacos v. CA 185 SCRA 284
(1990) Ching v. Goyanko, Jr. 506 SCRA 735 (2006)
Heirs of San Andres v. Rodriguez 337 SCRA 769 Cruz v. CA 289 SCRA 491 (1997)
(2000) Cook v. McMicking 27 Phil. 10 (1914)
Pichel v. Alonzo GR L-36902 Jan. 30, Matabuena v. Cervantes 38 SCRA 284 (1971)
1982 Rubias v. Batiller 51 SCRA 120 (1973)
EDCA Publishing v. Santos 184 SCRA 614 Fornilda v. Br. 164 Pasig RTC 166 SCRA 281 (1988)
(1990) Lao v. Genato 137 SCRA 77 (1985)
Tagatac v. Jimenez (cited in EDCA case) Maharlika Broadcasting v. Tagle 142 SCRA 553 (1986)
Quijada v. CA 299 SCRA 695 (1998) Paragas v. Heirs of Balacano 468 SCRA 717 (2005)
Sumaya, et al. v. IAC Sept. 2, 1991 Mercado v. Espiritu 37 Phil. 265
Fabillo v. IAC March 11, 1991
2. PRICE – Arts. 1469 – 1474; Arts. 1355, 1381 (1) (2), 1386
R.A. 8183 w/ c repealed R.A. 529
- price certain or capable of being ascertained in money or its
equivalent
- includes manner of payment
- determination / fixing of price
Tan Tiah v. Yu 67 Phil. 739
Toyota Shaw Inc. v. CA 244 SCRA 320 (1995)
Navarra v. Planters Bank GR 172674; July 12,
2007

- inadequacy of price in voluntary sales (gen rule and excptn)

Ong v. Ong 139 SCRA 133 (1985)
Aguilar v. Rubiato 40 Phil. 570 (1919)

- inadequacy of price in involuntary sales (gen rule and

excptn)
PNB v. Gonzales 45 Phil. 693
De Leon v. Salvador GR 31603 Dec. 28,
1970

- absolute and relative simulation of contract (1345)

- false price -- contract valid but subject to reformation (Art
1359)