CIVILLAW KK The Bedan Red Book To law, Mocs, goos ious, meusten) a Those eopessh pronto faced vou Dy law (vod) cls carat be raed Neder can the ght to setup the Jansprucence on Obigatinrs and Cantracs, 2010, $92) (2: What Is the etfect of a simulated or fettious contract? A telaive simuabon, pactum commisorium? the credtor cannot appropriate the thuags gven by way of pledge Or mortgage. oF sispase of them. Any sbpulaton Io the contrary i ull and void (rt. 2068, NCO) 496 San Beda Calege af Baw 2013 CENTRALIZED BAR OPERATIONS Pactum de Non, {@: Whats stated n te provision regarding pactum de non alerando? ANS: Pactum de non aienando provides that's tpuabon foriccing tho ownor from alenatng tre mmovabia mortgaged shai be vor! (Art 2130, NCC) trem any share n the profs or osses is vee (At 1789, NCC). \V. EFFECT OF CONTRACTS ‘@: What I the principe of relativity of contracts? ANS: The ‘xcept n cake whore bia nghs ane Wvansmssile. © By provson of aw rot able beyond the value athe property he recewed from the deceit (At 1377, NCC) ‘he follow ave the exceptions thereto Contam some stpulabon m favor of a thed person, he may 6 person who induces anolher to violate fet cantract shall be lable for ‘damages fo he cher conwactng party (At 1314, NCO). SALES | INTRODUCTIONCIVILLAW CRE She Bedan Red Book B. ESSENTIAL REQUISITES OF A CONTRACT OF SALE {Q: What ae the essential requisites of a contract of sale? ANS: The olemenis ae: No’ 109125, December 2, 1984) OBLIGATIONS CREATED {: What are the obligations of the vendor? Teatonable urdar the cecumstances (Art 1523, NCC} 498 San Beds College of Law 2013 CENTRALIZED BAR OPERATIONS 1 Nowy tho buyer regarding necessity to msure goods if itis usual to msure ihem (Ant 1823, NCC}, '@ What are the principal obligations ofthe vendee? ANS: Tha pancpal obigatons ofthe vende are 29, To accept delivery To pay the pros ofthe thing ald 1 egal tender UNLESS arother mode thas been agreed upon (Art 1682. NCC). (; What ate the other obligations ofthe vendee?” NOTE: The buyer in such a case i in the poston of 2 bales who has hod goods trust upon him without his assent. He has the obligation to ake Teasonabe cate ofthe goods but nothing mare can be demanded of him {Be ec, Te Law on Sls Ager ard Crt Tenses, 208 4 NOTE The goods in the buyer's possession are al the seller's nsk (De ‘Loon, Tho Law on Sales, Agoney and Creat Transactons, 2005, p. 165) 1s perfected ty mere consent (Vtonveva, Law on Sales, 2005, 9.514. nse cases, let (empto spe 499 CeeCIVILLAW EQ The Redan Red Book F SALES TTLE AND NOT MODE atte? ANS: Tite only constitutes te egal basis by whic o atfoct dominion or ownership (Sen Lorenzo Dev Corp. v. CA, GR No. 124242, January 21,2005) Gea contract of sale tle or2 made? ‘GR. No. L-10596 March 31, 4965) 6. DISTINGUISH SALE FROM OTHER CONTRACTS: {G: How Is a sale distinguished from other contracts? ANS: The dstinctons a Bayer bossmas owner ofthe hig | Panspalremans th owner sven the object has been delvered the gent Saar warras ‘gant assures no nskhabay as lang 5 tha ie anon gente Net vniateraly evorabe Ty Ba UT en ‘waout aground because Property is aerated © a mare : a re menulacured speci fora customer and upon a special carder and netcr the general market manufacturer engages in actvty Without need to employ CONTRACT OF SALEICONTRACT TO SELL Tasecr need nol be tne annar contract of sale distinguished from a contract to sell? tacos ave Tie passes to buyer upon delivery Faiuo w pay wa rexobty ‘conetton which puts an end tthe ‘wangacter; ‘the oblgation ofthe vendor to convey tite 1 arise 2, Resossion (At. 1191, NCO) ‘ler loses ownorehp upon dalvary | Tie remanent vendo" oven ater delivery sot fedCIVIL LAW LEK The Bedan Red Book II. PARTIES TO A CONTRACT OF SALE A.CAPACITY OF PARTIES 'Q: Who may enter into a contract of sale? ANS: Al persons who are authored inthe cade to cbigate themselves, may enter io 3 crtrac of sale (At 1489, NCC). 1B: ABSOLUTE INCAPACITY : When Is incapacity absolute? ANS: Such incapaciy is absolute incase of persons who cannot ng themsolves, 26 inthe case of mi Dredigals and those urate and say henaees ual, eny von oposetnnes (TT 1007 S08 NCC), bb When there has been a juioal separation or property under Artcle 191 (ar1490, NCO} NOTE: The prohibition piles to commen-aw spouses (Caimim-Carias| Forum, G2 No L 57400 Jano 22, 1084) . SPECIAL DISQUALIFICATIONS {Q: What are the special dlsqualfcations? ANS: The folowing cant arsuire propery by purchase, even ata pubic aucten, tether in person or hrough the medaton of ancther: (GAEPJO) 1. Guarchan, win respect to the property of Fis war NOTE: The sale is only voidebio because only prvale mieests are ‘affected. The detect can bo cured by ratitation Agar, wi respactto the propary whose acmnstraton or sale may have been enttusted to them, UNLESS the consent of the prnapal has been hen, NOTE: The sale is‘only vowwable because only prvate interests are affected: The defect can be cued by raiicaton © Execulr or auminsrator, with respect tothe propery of the esate under aaminstraton; NOTE: The sale 1s ony vordable because only prvate interests xe gh (Naval vs. Ennquez. 3 Phi. 669, 1904) Public oftcers and employees. wth respect to government, ts polteal subdivisions, or GOCCe, them: San Bova Collegeof Law 2013 CENTRALIZED BAR OPERATIONS NOTE The sale 1s vod, pubic interests being nvaived there > Judges, yusices,prosecuing attorneys clerks of courts, et, wrth respect to te propery in custoca NOTE: The sale yore, pubic mterests being involved there. {. Any ottor person specalycisquhiec by law (AF 1491, NCC) NOTE: The prohititons in Arts 1490 and 1491 ate applicable lo sales in legal redemption, compromise and enuncations (art 1492, NCC) Nl, SUBJECT MATTER A REQUISITES OF A VALID SUBJECT MATTER NOTE: In case of doubt, ine prosumpton is m favor of empto re Speratae 1s more in keeping wih the commutatve character of the ‘ofa cetermnate thing? 'senfored no, the tng is canable of beng mac hout te necessy of a new oF further agreement between the parses civit LAWVILLA COCK The Bedan Red Book 1. PARTICULAR KINOS (: What are future goods? ANS: Futuro goods are goods 1o be manufactured, rased or acqured by the sel ‘fer the perocton ofthe cortoct (Ar 1482. NC} validity ofa contract the object of which is future goods? id onl a9 an executory contract to bo futile by the acquisition and pods specified (Art 1462, NCC}. Q: Can there bea sale of future goods? ANS: There can be a sale of future propery, but there can generally be 90 donation of future property (Art 751, NCC) AN He. tae mneriane camel be sk (A 1347, NCO) 0: May the sole owner ANS: No, The soo owner of 1463, NCC). ng sol an unlvides interest therein? thing may sell an undwided morest there (At 1: When may a sole owner ofa thing sell an undivided interest? IV, OBLIGATIONS OF THE SELLER TO TRANSFER OWNERSHIP A. SALE BY APERSON NOT THE OWNER AT TIME OF DELIVERY Q: What if the object is not owned by the thereafter acquired by him? ‘equinag the Ue and making the conveyance. oF responding in damages forthe vendee's loss ofhis bargain (Marumv. Reyes. G R No. L-4402 July 28, 1952) Q: What right does a buyer acquire in case of sale made by a non-owner? ANS: In a sale By fe non-ownas ie buyer acquire no belie tile fo the goods than the selerhad (At 1505. NCC) San Beda College of Law 2013 CENTRALIZED BAR OPERATIONS 9, at are the exceptions? 'S 0 the owner sols and delvers a tng, and We therate the tle passes by operation of law to othe sie (Art 1506, NCC), 19. Sale by co-owner of whale property o© a det Fr Spocsl nghis of unpaid setor (Ars. 1526-153: IDABLE TITLE {goods has a voidable title thereto, but his Getect of te (rt 1506, NCCP : What ste datneton between Article 1506 and Article 15057 raters fo sal with VOIDAALE tile while Arce 1505 refors to Q.Is possession equivalent o tte as to movable properties ANS: Possession of movable property acquired In good Tat is equivalent (Ait 958, NCC}, {Q: What are the exceptions? ANS: The exceptions ae when ‘8 Owner fost the movable ~ owner may recover the movable witout remburse 9 Ownor 1s unwiuty dopnved of the movable owner may recovar the ‘movable without remeursemen (At 559, NCC) 1: What Is the exception to the exception? AN: Te esentons i excenn ae n wre possesses the movable propery has acqured the same ata pubic sale (Ar. 559, NCO} o The buyer tought he movable al 8 merchant sore (oy cres-rerenc 10 At 1808 ofthe NCC) V. PRICE AL MEANING OF PRICE (: Whats price? ‘ANS: Pico the sum ctputaed 26 the eau Incident taken into consideratan fr the fing ofthe thng sold and also every pace, putt the debt ofthe 505, NyCIVILLAW EK The Bedan Red Book vendee and agreed to by him (incheusti and Co v Cromwsl, G.R No L-6504 contracting partes, However, f the pice fixed by ore ofthe pares i accepieg by tho otter, the sal is porected (Art. 1473, NCC) May aconrac of sale subsist sie th lack of a? 3n. more property denominated as cause, can take ‘erca by another (Toes v. Court of ‘Appeals, GR. No 134553, December, $999) BB REQUISITES OF A VALID PRICE : What are the requisites ofa valid price? ANS: The requistes ofa vat pice are (Art 1469, NCC: _.Certaniy or ascetainablity af the time of perfecton: © Real and nol simulates © Imsome cases, must noi be grssiy inferior tothe v 4 Paid in meney ort equvaiet (Az. 1468, NCC} tng sold, : When must there bea price? ANS: Its nol necessary thatthe pace be actual or detetmined at he te of the executor ofthe contact Art 1489, NCC) 1: How is manner of payment determined? ‘ANS: Manner of payrnent must be agreed upon (Ait 1479, NCC) C. HOW IS PRICE DETERMINED 'G: Whon is price certaln? ANS: Price s considered as ceitain when its exptessed and agieed in tems of ec ponos anc carts (ilacara, Law on Sls 2008, p12) ‘When's price considerad as ascertainable? ANS: Price a ascertainable whan ie" ‘2. Fed by spectog this person NOTE: fhe Gur person f unabie or unig tof the pice, the contract istinoficacious, UNLESS tha partes subsequenty agree upon the price (et 1489, NCC) NOTE: fhe thr person ¢prevanted fron fxing the price by fault o ether the solr or the buyer, Up party rot in laut may have Suen remedies against the party faut (Ar. 1462, NCC} NOTE: The designation of tre using set conatona (Viarveva, Low 9 Saks 200, 11) 506 San Bena College of Law 2013 CENTRALIZED BAR OPERATIONS ‘another tang certo (Art 1489, NCC) D. INADEQUACY OF PRICE - ARTS. 1355, 1470 1G, When is there gross inadequacy of price? ANS! There gs # 2 reasonable man wit rot agree to roperty at that amount (Aguiar v Rubafo, GR No (-14823, Yoluntary Sales {@: What ls tne effect of inadequacy ofa price in a contract of sale? inadequacy of poe dooe not fot vality ofthe ale if (xad m good Wwihout laud (HUStv PR Bulders inc. GF No 186964. September 3, ie pales not niente be Bound at al, the contract ws vod and stent ‘he sale of eal property 2: When does inadequacy of price afect ANS: The adequacy of pace ects he val a, Where the pooe is 69 low as Io 72 property wil be set ide (PNB v, Gonzales, ‘better pace can be obtaned (Wemer, Dames & Co, Ud. ¥. Sontes, GR. Ne. L-4932, Noverbor 16,1909). NNoie The valicty of the sale 's not necessary affected were the law "ght to rodeem, upon the theory thal the lesser the forthe owner to effect redempton, Q: ts inadequacy of price is a ground for rescission of sale? [ANS Inacequacy of pie 6 a ground fo: rescission of conventoral salem case of resesstle covered wher 2 Those enlared ino by quatciars whenever the ward whom they represent suller lesion Dy mete than Y fhe valuo ol the objet of te sale, and 507 endsean Beds Collegeof Raw CIVILLAW KKK The Bedan Red Book 2013 CENTRALIZED BAR OPERATIONS » Those agreed upon in cepresartaton of abseriaes, i the late shoud ster lesion by more than Yo the valu of the obec ofthe sale (Art 1381, NCC) IV. FORMATION OF CONTRACT OF SALE A.PREPARATORY - ART. 1479 I E. WHEN NO PRICE AGREED — ART. 1474 | 'Q: What is the affect if there is no price agreed upon? | ANS: Where the contacts exeoutor the contacts inelfcaccus (At 1474. NCC) {perfected) Unt the contact is perf ‘obigaion, serve a8 a binding urcical elaon (Vilarueve, Law on Sales. 2009. 9 135) ral promise to buy or sel, Ths produces fo puideal effect and creates no legal Bond Thee ws 2 mere ole, and hae not ye! Deen converted ine a contrac (ilanvevs, Law on Sales, 2008, p 436) aly the market pice a the ime and place fixes by the contractor by kw forthe delve af he goods, F_ MANNER OF PAYMENT MUST BE AGREED UPON mise to buy of to sell a determinate thing for a pie certain binding upon the promisor? cepted unlaieral promise to buy Tundng. won the ro to sol determinate thing ora pice t ' G. EARNEST MONEY V. OPTION MONEY ~ AR { {2 What are the distinctions between eamest money and option money? ANS: Tho datincons ae ing 2 prvlege in ane person, for which he has cas @ ‘ght to buy certain merchandia at anytime within the ‘tee pertad a xe price (Vilonuev, Law an Soles, 2003, 138). “ile passes fo the buyer upon | Onnersho is reservedto te seller delivery ofthe thing 8018 ands not to pass un ful payment ‘@: What doos the option retor to? fans: Tecan tte cor fw el Te opens ya we a, ett In case of non-payment, hare can Le the offer accepted be acton for speciic performance partes re then feipracally ound to comaly with {ng Yu asuneren v CA, GR. No. 109125 December 2, 1994) the period {8 not itself founded upon or supported by ion? Communcsing that wihdranal 10 the offees (Art 1324, NCC, Atkns. Krol and a. lnc. v Cua, GR Mo L-9871 January 31.1958) | 4; How mast the ght to wihdraw be exrcued? raw, howovel, must not be exercised vin or 508 509 PeedCIVILLAW EK The Bedan Red Book Im the perfomance of hss duties, act with ustos, ge eveyone his due, and bserve nanesty and good ‘ath” (Ang Yu Asuncion v CA, GR. No. 109126, December 2, 1996) ‘Right of Fret Refusal ‘Mutual Promise to Buy and Salt : What isthe effect ofa mutual promise to buy and sell? ANS: promise to buy ata specified pnce is bing as an execstor agreement (At 1479, NCC). v Alantte Gull, GF No. (7382, June 29, 510 San Bera College of Law 2013 CENTRALIZED BAR OPERATIONS: e whee the vality ofthe contract a sales dtermnes, ‘me moment when the parles come to agree on the terms of the contract Wileoveva, Law 0a Sales, 2009, p 135) ,dvorisements for bldcers? ANS: Advertsemens for biddets ate simply mutations to make proposals, and ‘averse srt bound to accep the highest of lowest biscer, unless the contrary ‘opears (Ar. 1926, NCC), a contract of sale perfected even If at the time of the perfection, the notte owner of the thing sold a long as long asthe sellers the owner af Di delivery Othenwise he may be held lable for breach of waranty against (coe Arita 1434, NEC) the exception? the sale 3 subject 0 @ susperswe condiion by wrtue of law or artes (At 1483, NOC} ions must be in writing in order to be enforceable? a yeartrom the cate therest, Corkrat of sale be in 2 cetam CyCIVILLAW EKCKEE VII. TRANSFER OF OWNERSHIP [AMANNER OF TRANSFER - ARTS. 1477, 1496-1501 GR No (£3059, October 17, 1979) 8: WHEN DELIVERY DOES NOT TRANSFER TLE, The Bedan Red Boot 512 San Beds College of Law 2013 CENTRALIZED BAR OPERATIONS 18g the goods are of sller or agent ~ the goods axe KINDS OF DELIVERY Wns are te Rn of devery? lhe mere consent or agreement of bw convacing paris, the ting said cannot be transferred fo the possession ef the vandee atthe time ofthe sola (0 by mere porting. At 1499, NCC) w. Trasio Brow Many ~ The delvery of movable property may ikewse be made by the mere consent or agreement ofthe contracting partes, the vv, Quastvadibon = delvery of nah, by 1 Execute ot 2 Pachg es of ownershp the hands of buyer oF 513 edCIVIL LAW HERO The Bedan Red Boot ‘San Beda College of tows 2013 CENTRALIZED BAR OPERATIONS 3 Allowing buyer to make use of aghts (De Leon, The Law on Sales, ‘Agency and Creat Transactons, 2005.67) . DOUBLE SALES (ART. 1544) {G: What are the requisites for double sales? mgood fat sta m Goce fait) (Marinez v CA, GR No 123547, of such purchase or some otner person inthe propery before he has notice ofthe claim or ntrest of some other person tn the propedy (Agrculurel and Hore Exienson Dovelopment Group v. CAGR No. 92310, GAL NO Septomber 3, 1992) E PROPERTY REGISTRATION DECREE uisites for registration of deed of sale in good faith? © Full pay 1 Payment of capital gams and documentary laves 514 VIII. RISK OF LOSS ‘A. GENERAL RULE (ARTS. 1263, 1189), struction ofa gener thing? n chigaon to dever 2 generc ing, the loss or destucton of anything sme Kind coos cl extinguish the ctlgabon (At 1263, NCC). The exceptions are 2 In caso cf salo of lunge thnge, made ndeperdenty ar witout consideration ingle price, or ‘wegh, number, or measure (Art 1480 par 2, fungble thngs be sold fora pace xed sccordng to weight, cumber, oF measure, when they have been weighed, counted, or measured and delivered al the vendee's ask and the obigaton is deemed extogusined 'B. WHEN LOSS OCCURED BEFORE PERFE 1: Who beare the rek of loss when loss ANS: Res pent domno apples “The sel delvery or transfer of onmersh yal, hence, eller boars the nk of loss (Vllanueva, Law an Sales. 2008, . 347) . WHEN LOSS OCCURRED AT PERFECTION: ARTS.1493 AND 1494 it Demanding the remaining Bat, paying ts ptopertonate pice (Art 1493, NCC) 1. WHEN LOSS OCCURRED AFTER PERFECTION BUT BEFORE DELIVERY boss G' Wn bears the risk of loss when It occurs after perfection but before \Vitug, Pacila, and De Lace Ras gent domino or SELLER bears the nek of loss (secerdng to Tolentino, uredo, Bavera, and Vi 515 CNereNdCIVILLAW SKK The Bedan Red Book sk oss (Vilaruova, Law on Sales, 200, p. 356) IX, DOCUMENTS OF TITLE A.Definition G: What is a document of tte? ANS: A document of tiles a document. used a proo! of he possession or convo! “a Gocumant fe wach is esved by a warenoueeman C-NEGOTIABLE DOCUMENT OF TLE i stated Int re goods referred to berein the ofGer of any person named such ©: How Is # document of tile negotlated”? ANS: A dcumont of te maybe nepotate by By Gabvery- TLMnare by the tems of the document, the one wsuing the sane Undertake t,delver the goods tothe order of a specited person, and such parson of 3 suboquent endorsee has indorsed itn blank or 19 the besrar (Art. 1509, NCC} b Bylondorsament and daar (At, 1509, NCC) 516 oan Beda College of Law 2013 CENTRALIZED BAR OPERATIONS {@: How is endorsement made? rk, to beater oF lo a species person i 36 again negotaod by the endorsement of ‘Such persan i Blark,t bearer or 1oangther specied person (Art 1509, NCC) ; Who can negotiate a document of ttle? ANS: The folowing may segotate a document of ele ‘The owner a he cocurnost Any persom to whom tho possession or custody of he document has been feo tho order ot ‘he person fo wnom the possession or custody ofthe document has mn eirstes, or ‘document is Such form thal vl may be negotated by delvery (At r2.NCC) D.NON-NEGOTIABLE DOCUMENTS OF 'Q: What is a non-negotiable document ANS: A totvnegotable document of tlle cannot be negotiated and the ‘endorsement of such a dcumant gies the Vanslaree no sedinal ight (Art 1511, Le 1 non-negotiable document of tite by transfered? mS a e arte by temo by den preter one (an 15 G: How is « non negotiable document ofthe dletinguiched from 2 negotiable document of tite? ANS: The dstinctong are: ESS ee! Cee ce Governed by the Negaable Instumenis Law A beater nstaments aways beaver ntrurent even a special ‘eorsements made enCIVILLAW EEK The Bedan Red Book E. WARRANTIES OF SELLER OF DOCUMENTS OF TITLE the warranties of a salar of documents of title? es are a That te documents genuine, sods and thatthe goods are whenever such waranbes would have been ince ie contac fhe pares has een vente ocument of tle, the goods represented thereby (Ar. 1516, F. RULES ON LEVYIGARNISHMENT OF GOODS {Q: What are the rules on levy/garnishment of goods when covered by a negotiable document of tle? ‘ANS: Goods CANNOT be attached by gamishment or kvad, UNLESS, 8. The document fret surandered: 'b The nagotabon ofthe document is enyines), or © The documents impound by the cout (Art 7540), NOTE. A credtor whose deblors the owner of @ negohable document of te {@: What are the rules on levylgarnishment of goods when covered by a non- iment of tile? 1814, NCC) X, REMEDIES OF AN UNPAID SELLER ‘A.DEFINITION OF AN UNPAID SELLER ‘a0 agent ofthe sale’ to whom the bil of acing orsed, oF a.consignor (Ateios 1525 0 1535, NCC) 518 Son Bens College of Lato 2013 CENTRALIZED BAR OPERATIONS 'B REMEDIES OF AN UNPAID SELLER as to crt of eredtnas expired shu and under any of te fovowing eandiions are 38 resorved in case the buyer should make 3 default © The buyer delays inthe payment of the prce for an unreasonable ime (Art 1889, NCO) ead 4 Whore ihe aghto resend an default has been expressly reserved Where the buyer has Seen ndefaut for an unreasonable time (At 1534, NCC). : May a buyor exercise the aforesaid remedies granted to an. unpaid seller? ‘he soley, but subject toa lento secure payment of any portion of ho bce which has been pad, and with the remedies forthe enforcement of such en ‘ouod to an unpad selor by Article 1526 X, PERFORMANCE OF CONTRACT ‘A DELIVERY OF THE THING SOLD Sale of Movabies ‘Gin what condition is the vendor bound to deliver the thing sold? 519CIVILLAW KC The Bedan Red Book ANS: The vendor 1s bound to dalver the thing sold and ts accessions and ‘hat peran to the vendos from the day on whioh the contract was (Ar. 1537, NCO) {Q: What ara tho remedies of a buyar i the seller detvers to hm a quantity of ‘goods lees than he contracted to sell: ANS: The buyer may 2. Reject her ‘ifthe buyer accests or retains the goods £0 ‘tle ot going to perform the convact the CONTRACT RATE. cll rowever, the buyer has used or disposed of the goods delvered BEFORE he knows thatthe seller is not gong top nol be table for moce than the far value to Fim ofthe to him a quantity ty of goods LARGER than he ct and rejet the rast 1 Pe must pay for them at the whole of the goods ‘ANS: Ifthe sale of rea estaie should be made wh a statement of area athe yf aunitol measure 0° turbo: obliged 1 deliver to the vendee. fhe iter sbould demand provided tat, ho lack n (ONE-TENTH OF THAT STATED 19. NCC) 520 san Bens College of Raw 2013 CENTRALIZED BAR OPERATIONS thag s0ld exceeds ONE-TENTH OF THE PRICE AGREED UPON (An 1529 ‘noo DELWERY (rt 1549, NOC) Inspection and Aceptance When isthe Buyer Goomad to have accepted the goods? ams, o ought 1 know of such breach the sel 1886, NCC) 1; In case goods are delivered to the buyer, which he has not ‘Steulaton othe contrary (47 1584, NCC). : Is the seller Bound to afford the buyer a reasonable opportunity of 18, PAYMENT OF PRICE - See above aiscussion on pace 521 TegCIVILLAW KEKE She Bedan Red Book X11. WARRANTIES, ‘A. EXPRESS WARRANTIES. ‘an atfration of factor any promise by the seer resting to the ‘subject matter of the sale: », The natura! tendency of such atfrmation or promo Iso induce the buyer to purchase te thing: and The bayer puree te thing relying on such efron or promes (At 1546, NCC) IMPLIED WARRANTIES {: What is an impli warranty? (EFFECTS OF WARRANTIES Warranty that salir nasa ight to se! {What does the warranty ofthe seller “that he has aright tos not to any represeniaton as to ownership and the capacity to Vansfr the pont of prfecton (Vilanveva, Law an Sales, 2009, p. 496). fof warranty by ihe vendee (De Leon, Partnersine, Agency ant (Grud Transactions, 2005p 129) Warranty against hidden delvets ‘Gr What are the requis for warranty against non-apparent burden or servitudes ANS: The requisites ae: ‘a. mmovablo ols fs encumbered wih non-aoparen buen or serve not rmatoned tb agreererisand bcNatur of ton-opparent seriude or butden © such that & must be "resumed thet te buyer wpuld not have acquired i had he been aware There ©: What ae the requisites for waranty against hidden defects? ANS: The raquistes ar: ‘Defects serious a important such that 1) te hidden defect should render the subject mater unt forthe use fr whic ti intonded, of 2) the rudéen 522 Collegeof Bato ED BAR OPERATIONS 4 Vendoe must give robes of the cefoct ne, NOTE! Romodies must be brought the vancor within @ raasonatie tha penod of 6 months. tom ‘alvery in cage of animals warranty against hidden defects of animals? ‘ro watrant agansl biden defects of anmas cold ot fous or at 3 pubic auetons. fof We stock so condarmned (A 1574, NCC) : When is the contract of sale of animals vol? aN ios taal ‘of warranty In lof goods to apply? unreasonably urea, «The defect exeted when the product fh tbe hands of tho se Feecs Corp. CA, GR No 152219, tater 28,2008) ‘which they ate found and om the place where toy ae located. b Sale of second:nand aries € Sate by wrtue of puthonty 19 fact © kaw (Art 68, Consumer Act of the Phupoines[R A 7304), D.EFFECT OF WAIVERS 'G: What are the kinds of waivers? ANS: The knds of wawers 3 ‘a Conscente = volutarly made by the vendoe without tne knowledge and ‘assumption ofthe sks of evievon. Vendor shall pay ony the valve whch the bung sod had atthe bine of ect. ». Intanconada - made by the vendee wth knowledge ofthe ks of ewcton fare assurnpbon of is consequences, in which case vendor rot liable Drowded ha dd ot actin ad fh, 523 edCIVILLAW CCK The Bedan Red Book E. BUYER'S OPTIONS IN CASE OF BREACH OF WARRANTY (ART. 1599) 1: What are the buyer's options in case of Breach of warranty by the seller? and racover the pce any pa thereat whch has been pa. NOTE: When the buyer has elsimed and been granted a remedy in anyone to.an unpaid sel by Article 1526 NOTE: Where the buyers ene to rescind th sale and elects to do 50, ne'ghal cease fo be lable for tie pnce upon weurning or offering to return ‘ofthe goods, oF immeciately after an afer ‘epeyment ofthe pce NOTE: Were the buyers ented to rescind the sale ad eles todo sof the sole rluses to accept an offer ofthe buyer © relum the goods, the ‘buyer shal thertafer be deemed fo Hot re gaocs as baie forthe seer, 524 oan Bebo Galege of Law 2013 CENTRALIZED BAR OPERATIONS ny potion ofthe price which but eubect 10a Hen t0 secure payme ‘he enforcement of such ben ‘has been paid, and with he remedi allowed to an unpaid salerby Anite NOTE: Buti detroraton or im ofthe gocds is due othe breach o sen detencraion or wry shall Act prevent the buyer from retaning {erreur the goods tothe seller and reseriang tne sale (Ar. 1899, NCC}. Xill, BREACH OF CONTRACT AREMEDIES OF THE SELLER Action for prise {@: When may an action for the price be exercised? ANS: Itmoy be exerosed wen, 3. Where the ownership has passed to he buyer AND he wrongfully negects lorrefusas to pay forthe pre ere prce is payable on a day certain AND he wrongfully neglects 1p pay forthe pce, wrespective ofthe delivery o transfer of tle « Where the goods cannot aacily be reso: for 9 reasonable pice AND the ‘accept them even before the ownershyp of the 1595, NCC) & When may an ston for damages be exercised? ANS! hnay be exer wher 2 ineace of wongltnoglcto etsa! by the buyer lo acceptor pay forthe ting sold ar 1800 per. 1.NCO} binge exaery contac wre the ounerstip in thégoods has ot fasted, end the seer cannot mania an acon to recover the pace (At 4595 Ne etre. gocus are not yet Kenbod at the’ Une of Me contact or subsequently ‘Technica! Resession 1G; When may the slr fotaly rescind the contact of sale? 'ANS: He may do 80 by gvng notes of his secon todo sata the buyer Where the quads have NOT been delivered to he buyer, AND. 1. The buyer has repuated ine contract sae, OR ©. The buyer has’ marvested bis nablty to perfomn. hws oblgatons 6 thereunder, OR ‘The buyer has committe a breach theo (Art 1597, NCC} 525, endCIVILLAW KCK The Bedan Red Book Sale of Movables 1D Having appeared, should nol have tendered the once ai the same Ue (Art 1892, NCC). B.RECTO LAW 'Q: Whatis the Recto Law? of ho pnee. Any agreament tothe contrary shal be vis (Art 1484, NCC). NOTE The remedies under Art 1484 nave been recognized as allernatwe, nat cumulative, thatthe exerse of one would bar exercise ofthe others (Defa ‘Motor Sales Corporation v Niu Kir Duan, GR No. 61043, September 2, 1902) ©. SALE OF IMMOVABLES GQ; When ie there artcipatory breach ANS: Sele may sue for RESCISSION ifthe folowing concur 2 Trereis de enovatle oroaerty 5 Vendee has not yet pai he ance © Vendor has reasenable ground fo fea loss of property and oss of pce NOTE: Wren there is such reasonable ground, At 1191 shad be ‘Observed (when the vende does nat comply wih wha ncumben! ypen tum) (Ar, 1591, NCO) @: What isthe effect of failure on the part of buy [ANS: AUTOMATIC RESCISSION ef sale of i 1592, NCC). pay the price? Property is siuiated (Art post May instaliment payments made by the buyer in a subdivision or ‘condor 2 subdsion or condominium forfeted in favor af the owner er payaren do To the Lotte ofthe ance or evel ‘condominm project acoordg to the approve sh iving wth he same (Sections 23 and 24. PD Sales of mmovabies {: Whats purpose of the Maced Law? A: RA 6582, eniiod the Realy tstalient Buyers Protechon Act”. prowdes for Cerlan protec to particular buyers of roal estate payable on mnetaimonis The 526 payments agamst oneraus and oppressive cad (©: What are the rules under the Maceda Law? 'ANS The aca Law. wh goers teste of moves ov rtm ND the comeulaton of he {ott number f instalment payments mace. : What are the requisite for the NOTE The enumeration cot excusne (Vidonuove, Law on Sales 2008 415) 527CIVILLAW EK Bu 2013 CENT! . REMEDIES OF THE BUYER {Q; What isthe remedy of the buyer in case of breach of seller's warranty? ANS: The buyer may a his ection, ava ofthe fewng remedies. (or any part of & coneurendy wiht NOTE: These sre ALTERNATIVE remedies, without 2 af Ark 1101 ‘which provides oosing spect performance ihe resciasion by the buyer not allowed? ‘lowed in he flowing instences ‘buyer accepted the goods knowing the broach of warranty without sambaaceest ghiown ‘2. Where tho'vondeo {s:dieturbod in possession or ownership of the tng ougitoor 528 breach applicable? Simi ant ‘loro Dovoepment Cop 239 SORA 126. 1980) n te 529 TUNCIVILLAW KEK The Bedan Red Book XIV, EXTINGUISHMENT OF THE SALE ‘A. CAUSES OF EXTINGUISHMENT 8 forthe extinguishment of the contract of sale? ©. Condonation oF remscion of debt Confusion or merger of aghts X Fulftimest ofa resolutory codon 1 Presenption (Ar. 1281, NCC). contrary tole (Matanguihanv, Court of Appaal. GR No, @; When is a contract deemed as an equitable mortgage? ANS: The conbadt stale presumed fo be an equitable morgage, many of he following cases 2, When the pice of sae wih ngrt te repurchase s unusual inadequate: When the vendo« remains in possession as lessee or lerwise. ‘extencing he period of racampton Tor himself a pat ofthe purchase price: ther obligation (47 1602, NCC) NOTE in case of doubt, 2 contract purpertng to be a sale wth nght to repurchase shall be construed 2s an equtabla menage (4/t 1603, NCC) 530 ou Beds College of Late 2013 CENTRALIZED BAR OPERATIONS NOTE: The provisions of Arle 1602 shal also apply Yom contrat purporting i be an absolute sale. DoistngusHED FROM OPTION TO BUY (ART. 162, NCC) ight to redeem distinguished from option to purchase? 2 Trodemelow a. CS Cerny Cy Not separate contract but merely part ol aman contacto sale |s a period agreed upon? 16, NGC) It oxcoeds 10 years, of redemption 6 agraed upon by the gates ina sale a ret, ‘atnough the stpulaion as to period may be unclear or vid, iis the 10-year period and atthe 4year pero that shall aoply(Taya0 v Dulay, 13:SCRA 759, 1965) ©. What isthe effect when the period of redemption has expired? ANS: Inte graft of 30-day redemption nght in case of lingaten, when the period of previous suit on te nature ofthe contact, Feputchase wb 30 days fom the time fral jdgment was rendered ln a cil faction on the Basis that the contact was 2 tue sala wih right tb repurcnase (Art 1606, NCC} may sil exeresa the ict 10 NOTE Ths 16 not applcable to absolute sale This s applicable only where the ature or character ofthe tansacton, 26 to whether itis @ pacto de ceto sale or ‘equitable mortgage, was putimissue Defoe the court, 53 endCIVIL LAW "KC F EXERCISE OF THE RIGHT TO REDEEM ‘nd any ober legtmai payments rage by 'b Theecessary and useful expensas made onthe thing sls (Art, 1616. NCC) G._LEGAL REDEMPTION {Q: What is the right of logal redemption? ANS: The ight to bo subrogatag, upon tems and conditans sipulstod in be conc te place fone ho eaures a hea, 2 Purchase: ransaction whereby ounershp is transferred by onerous te (Art 169, NCC), tha rules on iogal redemption? ies are the following 2 A nang CO-MERS, shoud nya th here sl heed itso ight of adem, ‘hey may ony do som proportion to te sha 5 fespectvely have Inthe thng owned in commen (4. 1620) ‘The right of redemption of co-owners excludes tha of adjcining owners (art 1829 pan.2) NOTE: however, # co-owner may axerase the night of redemption only ‘when part of the community property participants aot added to the co-owner 143858, November 14, 2002) ‘© As among ADJOINING OWNERS of RURAL LAND, The onners of cent ands whch ae separated by ravnes, roais and olPer apparent serviudes foro beneld san Beds College of Laws 2013 CENTRALIZED BAR OPERATIONS {As among ADJOINING OWNERS of URBAN LAND, whenever a piece of £0 smal and so sivated that a’ major parton tereot ‘cent be used for any practical purpose within a eas been bought me, nag ‘owner of lation. is about fo be resol pre-emption al areascaabe r 35 boon perfected, the owner of the acomnng land shell have aright ofredemption, aso at a reasonable pace H. MORTGAGE REDEMPTION 1G: When must the equity of redemption be exercised in case of Judicial foreclosure? ANS: The nght must be exercised wihin 90 DAYS from finaly of judgment unit confirmation of sale (Soe, 47. RA 6791) : When must the right of redemption be exercised in case of foreclosure? 217 SCRA 554 XVL THE SUBDIVISION AND CONDOMINIUM BUYER'S PROTECTIVE DEGREE (P0357) (0: Whats the purpose of P.0, 9572 quires regstered owner of a parcel of lang who wenes to convert the. same Subiviston project shal sum fs subsist san tothe HOUSING AND LAND USE REGULATORY BOARD, which shall act upon and approve the same, pen a tiég thatthe plan complies wth the Subdiwson Standards’ and Regulations lenforceabe ath une the plan 1 submited 533 eACIVILLAW KKK The Bedan Red Book. ANS: Such owner or caair to whom has boen issues a reistalon cerficte shal nol, Fawover, be auherze sal any sb nse 19 sll tha project shin two wots tam th egtuan of such rope (Soe) Promencs Sond must be fied as a precondilion tothe issuance of sod icense (Sac. 6) : What are exempt transactions? ‘mortgagee in the ordinary course ofbusiness when necessary fide ett (Sec. 1) «a. nsoivency, oF Has woiated any of the provisions of this Decree or any applicable rule oF Fequaton of te Authosy, or any underakrg of sits performance bond «¢ Hos beon ors engaged ors about engage i a 4 Hos made any misropresentaion in any prospects cher Hteratwre about the subdwson project or eandomnium projet that has been disinutad to prospecive Buyers. or @ Isorbad business repute, or Does not conduct fis business im aocordance with law or sound business pimcipies (See 9). XV THE CONDOMINIUM ACT (R.A. 4726), common areas of the buldng (Sos. 2). (What Is condominium corporation? isa corporation which olds tie ts the common reas, melasing the land, ‘or the appurtenant interests n such areas, in wrach th holes of separate interest ‘automaticaly be members or shareholders, to the exclusion of others, [Proportion to the appurtenant Inert of their respective uns inthe common areas (S20, 2) 534 san Beds Cottege of Law 2013 CENTRALIZED BAR OPERATIONS: (©: What is a common area? ANS: IK means the entre prot excepting al unts separately granted or held or reserved (See. 3(g), documents necessary in order for the application of the ‘rovisions of he condominium act? 2e¢ ~ which shall contan, among othere: ‘uidieg or buldings. and any ben or encumbrance on the property, thal they consent to the reglstvaton of the dees, ion not contrary to law, morals or publ: pobey ‘any eondominum owner to alienate or dispose ot ‘fire applicable (Sec 4) 28, The boundary ofthe une granted are the intenor surfaces ofthe penmeter walls, foots, colings, viezows arc coors hateot oNCIVILLAW EK KE The Bedan Red Book «© Each condominium owner shal wo the exclusive nght to pat, repaint, propery be fst ofleed {6 tie condominium owners within a feasonable period o ume before the sare s offered to cute pares (Sac 6. ‘Grounds for partion of common area, or dezoluton ofthe condominium {@: What sre the grounds for partion of common areas or dissolution of the restrictions duly registered have been met (Sec 8), SUCCESSION |. GENERAL PROVISIONS (Arts. 774-780) ‘A.DEFINITIONAWHAT IS TRANSMITTED (Arts. 774,776, 781) general term acped to the person whose property is succession, whatner or not De if & wil Ihe lat & wl. Ne lor (Art 773) 536 San Beds College of Low 2013 CENTRALIZED BAR OPERATIONS hertance include We property, rights and obligations ANS: False Inhertance includes all the prope, nghs and obligations al ¢ person gushed by hs ceath (Art 776) Thus, those exingushed by ns death are no includes nghs, parental authonty, he natin, (Hu Niu ¥ Collector of Customs, inhentance relers to af the property and transmssible ughts ond of te decedent which are not extinguished by his death succession is ‘mode by which such propery rgh's and obigations re transmited 's merely the chyecive element of succession (Jurado, Civ Law Remewer. 2009.0 490) ‘fects of the acceptanc ‘momento the dea of the decent (A 1 Q; Does “death Include presumptive death? if yes, what aro the rules on Presumptive death? age Of seventy-five yeas, an ateence of fue years shall De sufficient mcrder hat he succession mey be opened Moreover, under Artie 381, the folowing shall be pretumad dead fora purposes. Inctuing tne dsion of the estate among the heirs 937 end