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Philippine Law on Sales Art 1544-1623
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ARTICLE NO.
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Law on Sales
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ANNOTATION
NOTES
FORM & INTERPRETATION 1544. If the same thing should have been sold to different vendees, the ownership shall be transferred to the *Rule on double/multiple sales. Applies only to purchasers in GF, disqualifies anybody in B person who may have 1 st taken possession thereof in GF, if it should be movable prop. Movable – Movable – 1 st in possession in GF Should it be immovable prop, the ownership shall belong to the person acquiring it who in GF 1 st recorded it in Immovable – – 1 st who registers in GF; if no registration, 1 st in possession in GF; if neithe the Registry of Prop. older title in GF st Should there be no inscription, the ownership shall pertain to the person, who in GF was 1 in the possession; &, in the absence thereof, to the person who presents the oldest title, provided there is GF. - Taking of possession may be symbolic. - Registration – – any entry made in the books of the Registry of Prop w/c records solemn ownership & other real rights. - Requirement of law is 2-fold: acquisition in GF & registration in GF. - What is registered is NOT the land, what is registered is the DEED OF SALE. - If the seller DOES NOT have the capacity to transfer the prop, the buyer cannot be consi
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to any condition w/c is not performed, such party may refuse to proceed w/ the contract or he may waive performance of the condition. If the other party has promised that the condition should happen or be performed, such first mentioned party may also treat the nonperformance of the condition as a breach of warranty.
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obligation (or right) of the contract depends. depends. The obligation does not attach attach until the condition is performed. (1) If the obligation of either party is subject to any condition & such condition is not fulfilled, such party may either: (a) REFUSE to proceed w/ the contract; or (2) PROCEED PROCEED w / the contract, WAIVING the performance of the condition. (2) If the condition is in the nature of a promise that it should happen the nonperformance of such condition may be treated by the other party as a breach of warranty.
purely potestative but rather also subject to the obligation to pay the balance of the purchase pr road right of way. In the event the condition is successful), Rodriguez must pay the balance event the condition is not fulfilled (or the negoti choice either (a) to not proceed w/ the sa downpayment or (b) considering that the co benefit, to waive the condition & still pay the road access. This is the most just interpretation gives effect to all its provisions.
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EFFECT OF NON-FULFILLMENT OF CONDITION 1. The other party may: - Refuse Refuse or Proceed Proceed w/ the contract; OR - Proceed w/ the contract, Waiving Waiving the performance of the condition. 2. If the condition is in the nature of a promise that it should happen, the non-
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If the period when the condition should be fulfille is not stipulated, the party imposing the co rescind the contract. Such party must come to
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1547. In a contract of a sale, unless a contrary intention appears, there is: (1) An IMPLIED WARRANTY on the part of the seller that he has a right to sell the thing at the time when the ownership is to pass, & that the buyer shall from that time have & enjoy the legal & peaceful possession of the thing; (2) An IMPLIED WARRANTY that the thing shall be free from any hidden faults or defects, or any charge or encumbrance not declared or known to the buyer. This article shall not, however, be held to render liable a sheriff, auctioneer, mortgagee, pledge, or other person professing to sell by virtue of authority in fact or law, for the sale of a thing in w/c a third person has a legal or equitable interest.
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IMPLIED WARRANTY: that w/c the law derives from the nature of the transaction or the relative situation or circumstances of the parties, irrespective of any intention of the seller to create it.
(accion quanti minoris ), w/ damages in either c (MOLES vs. IAC) As a general rule there there is no secondhand articles. EXCEPT where the buyer makes known to the seller the particular pur acquired & that the buyer relies on the seller’s implied warranty that the goods shall be reasona
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An implied warranty warranty may be waived or modified by express stipulation stipulation& is deemed incorporated in the contract. KINDS OF IMPLIED WARRANTIES: 1) Warranty that the seller has the right to sell. 2) Warranty against eviction. 3) Warranty against non-apparent non-apparent servitude. 4) Warranty against hidden defects. 5) Warranty against redhibitory defects on animals.
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sales, unless it is o/w decreed in the judgment.
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subject to attachment, he will be liable for the eviction of one who bought the property in a judicial sale. EXCEPTION: unless the court decreed o/w REMEDY OF PERSON EVICTED: Recover the price paid w/ interest.
the judgment creditor acquired no better right th purchaser for value & in good faith was evic payments he made cannot be retained by the right). Kailangan ibalik ni judgment creditot yun there is no bad faith on the part of the credito damages in favor of the purchaser.
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1553. Any stipulation exempting the vendor from the obligation to answer for eviction shall be void, if he acted in bad faith.
Inapplicability of Rescission: Rescission: Rescission contemplates that the one demanding it is able to return whatever he has received under the contract. Since the vendee can no longer return the subject-matter, rescission cannot be carried out. How to determine if the vendor acted in bad faith: If the vendor had knowledge knowledge before before the sale that that fact that would give rise to eviction. How to determine if the vendee acted in bad faith: If he knew of the defect of title title before the sale or had knowledge of
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REMEDY OF PERSON EVICTED: Return of pa
REMEDY JUDGMENT CREDITOR: File a c NotOFuseful REMEDY AGAINST VENDOR IN BAD FAITH plus damages.
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1557. The warranty cannot be enforced until a final judgment has been rendered, whereby the vendee loses the thing acquired or a part thereof. 1558. The vendor shall not be obliged to make good the proper warranty, UNLESS he is summoned in the suit for eviction at the instance of the vendee. 1559. The defendant vendee shall ask, within the time fixed by the Rules of Court answering the complaint that the vendor be made a codefendant.
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2) When two or more things are jointly sold whether for a lump sum or for a separate price for each, & the vendee would have not p Ex. Collector si John ng Power Rangers. Bumili ka nung isang set ng Power Rangers action figure. Pero si Pink Ranger sira. It’s either i-demanda i -demanda mo dahil na-deprive ka ng paglaro kay pink ranger. O kaya, ibalik mo na lang yung apat. ELEMENTS FOR THE ENFORCEMENT OF WARRANTY IN CASE OF EVICTION: 1) Deprivation of the whole or part of the thing sold; & 2) Existence of a final judgment.
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Indispensible, it is, that the court that eviction is declared by a court.
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Look at this 3 provisions as a whole. The court has the authority to declare that there is eviction. Obviously, to enforce your righ against eviction, you need to file a case in court ( Art. ( Art. 1557). Siyempre, you’ll you’ll be enforcing a right. Sino ba nagbigay ng warranty must implead the vendor in order to enforce that right. Pag hindi, eh di wapakels siya kung na-evict ka (Art. 1558). Sa Art. 1559 sa’yo ang nagdemanda. Tanga ka kung aakuin mo yung kaso mag -isa. Maghanap ng kadamay. File ka ng motion to include the v mag-file ka ng third party complaint.
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b. Defect is Hidden - it was not known & could not have known c. Defect Exists at the time of the sale d. Buyer gives Notice Notice of the defect to the seller within reasonable time e. Action for rescission or reduction of the pric e is brought within the proper period i. 6 months – months – f rom delivery of the thing sold ii. Within 40 days – days – from the delivery in case of animals f. There must be No waiver of warranty warrantyo n the part of the buyer.
Q: Is there a waiver of warranty against hidd inspected the premises & pushed thru w/ the
A: Yes. Under Arts. 1561 & 1653 of the Civil C for warranty against hidden defects, but he Sign up to vote onorthis defects those,title w/c are visible. When plaintiff a
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WHERE DEFECT PATENT or MADE KNOWN 1) A warranty does not cover defects w/c the buyer must have observed 2) Same rule is applicable if the seller tells the buyer. But if the seller successfully uses art to conceal the defects, the seller is liable. 3) GEN RULE: RULE: There is NO implied warranty against hidden defects in
that he inspected the premises three or four ti
contract. his inspection, he noticed the r NotDuring useful w/c in his opinion was caused by leaking water o
go thru w/ the lease agreement. Hence, respond the alleged warranty against hidden defects.
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Article 1569. 1569. If the thing sold had any hidden fault at the time of the sale, & should thereafter be lost by a fortuitous event or thru the fault of the vendee, the latter may demand of the vendor the price w/c he paid, less the value w/c the thing had when it was lost.
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If the vendor acted in bad faith, he shall pay damages to the vendee.
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B: If there was waiver of warranty warranty 1. when the seller is aware of the hidden defects – defects – W aiver is in BAD FAITH: seller is still liable 2. When the seller is not aware of the hidden defects: seller is NOT liable
C: If the defective thing is lost thru fortuitous event or fault of buyer 1. Buyer may demand of the seller the price paid less the value of the thing at the time of the loss The difference b/w the price price paid & the value of the thing at the time of loss represents represents the damage damage suffered by the buyer enriched himself at the buyer’s expense The thing sold must be defective at the time of sale. REMEDY OF BUYER Q: What are the remedies of the buyer in cas 1. Accion Redhibitoria ( withdrawing from the contract), OR defects? A: The vendee may elect b/w: 2. Accion Quanti Minoris ( proportionate reduction of price) 1. Withdrawing from the contract, or 2. Demanding a proportionate reduction of th
Article 1567. 1567. In the cases of articles 1561, 1562, 1564, 1565 & 1566, the vendee may elect b/w withdrawing from the contract & demanding a proportionate reduction of the price, w/ damages in either case.
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Article 1579. 1579. If the sale be rescinded, the animal shall be returned in the condition in w/c it was sold & delivered, the vendee being answerable for any injury due to his negligence, & not arising from the redhibitory fault or defect Article 1580. 1580. In the sale of animals w/ redhibitory defects, the vendee shall also enjoy the right mentioned in article 1567; but he must make use thereof within the same period w/c has been fixed for the exercise of the redhibitory action.
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Article 1581. 1581. The form of sale of large cattle shall be governed by special laws. 1582. The vendee is bound to accept delivery & to pay the price of the thing sold at the time & place stipulated in the contract. If the time & place should not have been stipulated, the payment must be made at the time & place of the delivery of the thing sold.
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buyer may elect b/w withdrawing from sale & demanding proportiona te redu either case REMEDY OF BUYER 1. Accion Redhibitoria ( withdrawing from the contract), OR 2. Accion Quanti Minoris ( proportionate reduction of price)
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OBLIGATIONS of the VENDEE Principal Obligations of the vendee: 1. ACCEPT delivery of the thing sold 2. PAY the price of the thing sold at the time & place stipulated 3. bear the EXPENSES of the contract & putting the goods in a DELIVERABLE state* *No.3 applies only if the parties stipulated such. Absent such stipulation, such obli belongs to the vendor
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-Vendor is not bound to deliver until full payment of the purchase price & the vendee is not bound to pay until delivery. Meaning, th
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Law on Sales
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be liable as such. 1588. If there is no stipulation as specified in the first paragraph of article 1523, when the buyer's refusal to accept the goods is w/o just cause, the title thereto passes to him from the moment they are placed at his disposal. 1589. The vendee shall owe interest for the period b/w the delivery of the -Generally, interest rate will accrue from date of delivery until payment. thing & the payment of the price, in the ff three cases: Exceptions: when date from w/c interest rate is to run is stipulated & no. 3 (1) Should it have been so stipulated; -If it was stipulated that an interest will accrue, but there is no rate stipulated, (2) Should the thing sold & delivered produce fruits or income; legal rate. (3) Should he be in default, from the time of judicial or extrajudicial demand for -For no. 2, there must be 2 conditions: a) thing has been delivered; 2) it must the payment of the price. produce fruits/income
*Therefore, risks shall be borne by him.
1169. Those obliged to deliver or to do somethin the obligee judicially or extrajudicially demands f obli. However, demand by the creditor shall not be may exist: 1. When the obli or the law expressly so declares 2. When from the nature & the circumstances designation of the time when the thing is to be d rendered was a controlling motive for the establis 3. When demand would be useless, as when beyond his power to perform.
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Seller: 1. Payment of the price 2. Damages for non-acceptance 3. Rescission for breach of contract Buyer: 1. Specific performance 2. Rescission/damages for breach of warranty 1595. Where, under a contract of sale, the ownership of the goods has passed to the buyer & he wrongfully neglects or refuses to pay for the goods according to the terms of the contract of sale, the seller may maintain an action against him for the price of the goods. Where, under a contract of sale, the price is payable on a certain day, irrespective of delivery or of transfer of title & the buyer wrongfully neglects or refuses to pay such price, the seller may maintain an action for the price although the ownership in the goods has not passed. But it shall be a defense to such an action that the seller at any time before the judgment in such action has manifested an inability to perform the contract of sale on his part or an intention not to perform it. Although the ownership ownership in the the goods has not passed, if they cannot cannot readily be resold for a reasonable reasonable price, & if the provisions provisions of article article 1596, fourth paragraph,
particularly by the provisions of this Chapter, & as to matters not specifically provided for herein, by other applicable provisions of this Title.
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When available:
1. Ownership of goods has passed to buye useful Not pay
2. Price is payable on certain day + buyer pay 3. Goods cannot readi ly be resold for wrongfully refuses the accept + 1596,
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immediately after an offer to return the goods in exchange for repayment of the price. Where the buyer is entitled to rescind the sale & elects to do so, if the seller refuses to accept an offer of the buyer to return the goods, the buyer shall thereafter be deemed to hold the goods as bailee for the seller, but subject to a lien to secure payment of any portion of the price w/c has been paid, & w/ the remedies for the enforcement of such lien allowed to an unpaid seller by Article 1526. (5) In the case of breach of warranty of quality, such loss, in the absence of special circumstances showing proximate damage of a greater amount, is the difference b/w the value of the goods at the time of delivery to the buyer & the value they would have had if they had answered to the warranty.
1. Buyer accepts + knows breach + no prot 2. Buyer does not notify seller w/in reasona 3. Fails to return or offer to return the g condition as they were HOWEVER if was caused by the very breach itself,
Sign up to vote on= this title *1586 acceptance of the buyer will not discha
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breach of warranties
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1. Buyer ceases to be liable for the price goods 2. Recover whatever he has paid 3. Right to hold the goods as bailee if seller
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Right to redeem
*Inadequacy – – mere disproportion cannot alone justify the conclusion that the transaction is a pure & simple loan. It must be gross or purely shocking to the conscience or is such that the mind revolts at it & such that a reasonable man would neither directly or indirectly be likely to consent to it *Vendor remains in possession – – m ere tolerated possession of vendor by the vendee not enough to prove equitable mortgage
such inadequacy shocks one’s conscience as to such does not follow when the law gives the o when a sale is made at public auction, upon t price the easier it is for the owner to effect the re to redeem, inadequacy of price should not b debtor may reacquire the prop or also sell his ri the loss he claims to have suffered by reason auction sale.”
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sold is transferred to the vendee upon execution to the resolutory condition that the vendor exerci the period agreed upon.’”
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1610. The creditors of the vendor cannot make use of the right of redemption against the vendee, until after they have exhausted the property of the vendor. 1611. In a sale w/ a right to repurchase, the vendee of a part of an undivided immovable who acquires the whole thereof in the case of article 498, may compel the vendor to redeem the whole property, if the latter wishes to make use of the right of redemption. 1612. If several persons, jointly & in the same contract, should sell an undivided immovable w/ a right of repurchase, none of them may exercise this right for more than his respective share. The same rule shall apply if the person who sold an immovable alone has left several heirs, in w/c case each of the latter may only redeem the part w/c he
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condition lang naman ang title niya. So he can do whatever the fuck he wants to the property. In any case, 1608 gives the vend person the vendee has disposed the prop to. Exception to this is where the prop was sold under an already existing mortgage or antichresis (pledge). (pledge). The mortgagee or pled not exhaust the prop of the vendor. A, B, C co-owns undivided parcel of land. A sold his share to X w/ right of 498. Whenever the thing is essentially indivis repurchase. During the interim (period b/w sale & expiration of right of agree that it be allotted to one of them who sha redemption), X was able to acquire the whole prop after indemnifying B & C. be sold & its proceeds distributed. If A wants to exercise his right of repurchase, X may CHOOSE to either sell the original share or compel A to buy the whole prop. A, B, C co-owns undivided undivided parcel of land. They JOINTLY sell such land and to X w/ right of repurchase repurchase in the SAME contract. contract. Suppo A chooses to exercise exercise his right of redemption, redemption, A, B & C can only redeem 1/3 of the prop prop individually. individually. BUT! X can require re all of th that they agree to its redemption by any one of them. (If one of them redeems whole prop, redemptioner does not acquire who revived & he has the right to be reimbursed)
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visible or growing fruits, there shall be no reimbursement for or prorating of those existing at the time of redemption, if no indemnity was paid by the purchaser when the sale was executed. Should there have been no fruits at the time of the sale & some exist at the time of redemption, they shall be prorated b/w the redemptioner & the vendee, giving the latter the part corresponding to the time he possessed the land in the last year, counted from the anniversary of the date of the sale. 1618. The vendor who recovers the thing sold shall receive it free from all charges or mortgages constituted by the vendee, but he shall respect the leases w/c the latter may have executed in good faith, & in accordance w/ the custom of the place where the land is situated.
*Fruits referred to are natural & industrial. Civil fruits belong to vendee.
1619. Legal redemption is the right to be subrogated, upon the same terms & conditions stipulated in the contract, in the place of one who acquires a thing
*Serves as definition for legal redemption
If vendee paid for the fruits at the time of the sale, vendor must reimburse such payment payment at time of redemption. If there were no of redemption redemption,, malamang walang irereimburse. BUT! If there were no fruits at time of sale, & some existed at time of redemption, then it will be apportion apportioned ed proportionately b/w re The vendee’s share is in proportion to the time he possessed the prop during the last year counted fr om the anniversary of the da
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1609 gives the vendee a retro the right to perform acts of ownership over the prop, but as his ownership is revocable, such acts 1618 provides an exception, i.e., leases the vendee executed in GF & in accordance w/ the custom of the place where land is situ
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Section 2 – Legal Redemption
Subrogation – transfer of right of another to the p Subrogation – Dacion en pago happens when debtor offers
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When two or more owners of adjoining lands wish to exercise the right of preemption or redemption, the owner whose intended use of the land in question appears best justified shall be preferred.
1623. The right of legal pre-emption or redemption shall not be exercised except within thirty days from the notice in writing by the prospective vendor, or by the vendor, as the case may be. The deed of sale shall not be recorded in the Registry of Property, unless accompanied by an affidavit of the vendor that he has given written notice thereof to all possible redemptioners. The right of redemption of co-owners excludes that of adjoining owners.
Law on Sales
Assignment of Credits and
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3. The piece of land sold must be so small & so situated that a major portion thereof cannot be used for any practical speculat 4. Such land was brought by its owner merely for speculation 5. It is about to be resold or that its resale has been perfected.
To speculate – speculate – t o enter into a business transaction or venture from w/c the profits or return are conjectural b/c the undertaking is o business ALONZO v IAC, this is a case wherein the cou 30-day period peremptory & non-exten non-extendible. dible. It is not a prescriptive period but more a requisite or condition. Meaning, Meaning, mas ran from date of actual notice even in the absen strict. court said “we ourselves are not abandoning doctrines. What we are doing simply is ADOPT When does the period start to run? gen’l rule, in view of the peculiar circumstances o PLUS! - From date notice in writing is given by the prospective vendor/vendor to the “possible” redemptioners. E.g. X sells land to Y. The notice In the case of PRIMARY STRUCTURES CO upheld the requirement of written notice for the must come from X.
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