Session Four

F. 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-
AGDON
Quiroga v. Parsons Hardware, 38 Phil 501, August 23, 1918-TOLENTINO
Ker v. Lingad, 38 SCRA 524, April 30, 1971-ASIDAO
Del Monte Phils. v. Aragones, 461 SCRA 139, June 23, 2005-RAPINAN

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

a. absolute - Arts. 1327-1328, Art. 234Family Code
(FC) as amended by RA 6809
b. relative Art. XII, Secs. 7 & 8, 1987 Constitution
Arts. 1490-1492, 1533(5), 1476(4), 124FC,

Rodriguez v. Mactal, 60 Phil 13, April 4, 1934-CAMBA
Rubias v. Batiller, 51 SCRA 120, May 29, 1973-NERI
Miguel v. Catalino, 26 SCRA 234, November 29, 1968-DE SILVA
Estate of Salvador Serra Serra v. Heirs of Primitivo Hernaez, 466 SCRA
120, August 9, 2005-MAYUGA
Mapalo v. Mapalo, 17 SCRA 114, May 19, 1966-DOLINA


Session Five

2. 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 Rights- Arts. 1624-
1635

Martinez v. Court of Appeals, 56 SCRA 647, April 29, 1974-ARRANCHADO
Melliza v. City of Iloilo, 23 SCRA 477, April 30, 1968-SEBASTIAN

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-BOHOL
Spouses Doromal , Sr. and Salas v. Court of Appeals, 66 SCRA 575,
September 5, 1975-RAMILO
Goldenrod v. Court of Appeals, 299 SCRA 141, November 24, 1998-
CATUBAY
Edrada v. Ramos, 468 SCRA 597, August 31, 2005-MIGUEL
Philippine Free Press, Inc. v. Court of Appeals, 473 SCRA 639, October 24,
2005-DELA PAZ
Cruz v. Fernando, Sr., 477 SCRA 173, December 9, 2005-MAURICIO
Morales Devt Co. v. Court of Appeals, 27 SCRA 484, March 28, 1969-
DOLINA
Laperal v. Rogers, 13 SCRA 26, January 30, 1965-MATEO
De Leon v. Salvador, 36 SCRA 566, December 28, 1970-EMPLEO
Velasco v. Court of Appeals, 51 SCRA 439, June 29, 1973-LORENZO

B. Natural Elements

1. warranties
2. subrogation

C. Accidental Elements


Session Six


III. Perfection of the Contract

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

Cruz v. Fernando, Sr., supra-FRANCISCO

B. Contract of Option- Arts. 1479, 1324

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

C. 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-HICETA
Inigo v. Maloto, 21 SCRA 246, September 28, 1967-GARCIA, PAUL
Cuyugan v. Santos, 34 Phil 100, March 3, 1916-GUEVARRA
Dalion v. Court of Appeals, 182 SCRA 872, February 28, 1990-GONDA
Yuvienco v. Dacuycuy, 104 SCRA 668, May 27, 1981-TOLENTINO
Vda. De Jomoc v. Court of Appeals, 200 SCRA 74, August 2, 1991-AGDON
Santos v. Manalili, 475 SCRA 679, November 22, 2005-SEBASTIAN


Session Seven


IV. Rights and Obligations of the Vendor - Art. 1495

A. To transfer ownership

Who can transfer ownership?

General Rule - Arts. 1505-1506, 1547

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

Exceptions: Art. 1505

1. Estoppel- Arts. 1431, 1433-1434
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-RAPINAN
Salonga v. Concepcion, 470 SCRA 291, September 20, 2005-ASIDDAO
Sigaya v. Mayuga, 467 SCRA 341, August 18, 2005-RAMILO
Premiere Devt Bank v. Court of Appeals, 453 SCRA 630, March 18, 2005-
BOHOL
Siy Cong Bieng and Co. v. HSBC, 56 Phil 598 [1932]-NERI
Masiclat v. Centeno, May 31, 1956-CAMBA


When/How transfer is effected? - Arts. 1477, 1459, 1496, 1547, 1588

General Rule:

Ilao-Quianay v. Mapile, 474 SCRA 246, October 25, 2005-MIGUEL

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)

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





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

Lawyers Cooperative v. Tabora, 13 SCRA 762, April 30, 1965-MAYUGA
De Lizardi v. Yaptico, 30 Phil 211, March 22, 1915-DE SILVA
Sun Bros. Appliances v. Perez, 7 SCRA 977, April 30, 1963-MAURICIO


Double Sales- Art.1544

Rule (Movables/Immovables)

Cuison v. Remoto, supra-DELA PAZ
Ulep v. Court of Appeals, 472 SCRA 274, October 11, 2005-MATEO
Sigaya v. Mayuga, supra-DOLINA
Bautista v. Sioson, 39 Phil 615, February 11, 1919-LORENZO
Lichauco v. Berenguer, 39 Phil 643, February 27, 1919-EMPLEO
Paylago v. Jarabe, 22 SCRA 1247, March 27, 1968-LEE
Quimson v. Rosete, 87 Phil 159, August 9, 1950-FRANCISCO


When not applicable?
1. unregistered lands

Carumba v. Court of Appeals, 31 SCRA 558, February 18, 1970-HICETA
Vda. De Jomoc v. Court of Appeals, supra-GARCIA, CLYDE
Hanopol v. Pilapil, 7 SCRA 452, February 28, 1963-GUEVARRA


Session Nine

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

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

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

1. Actual (Real or Material) - Art. 1497
2. 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-
GARCIA, PAUL
Addison v. Felix, 38 Phil 404, August 3, 1918-GONDA
Daguilan v. IAC, 168 SCRA 22, November 28, 1988-TOLENTINO
Pasagui v. Villablanca, 68 SCRA 18, November 10, 1975-AGDON
Dy, Jr. v. Court of Appeals, 198 SCRA 826, July 8, 1991-SEBASTIAN
Power Commercial and Indl Corp. v. CA, 274 SCRA 597, June 20, 1997-
ARRANCHADO
Florendo v. Foz, 20 Phil 388, October 24, 1911-RAPINAN
Philippine Suburban Devt. Corp. v. The Auditor General, 63 SCRA 397,
April 18, 1975-ASIDDAO
Board of Liquidators v. Floro, 110 Phil 482, December 29, 1960-RAMILO

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-
BOHOL
Santa Ana, Jr. v. Hernandez, 18 SCRA 973, December 17, 1966-NERI
Asiain v. Jalandoni, 45 Phil 296, October 23, 1923-CAMBA
Azarraga v. Gay, 52 Phil 599, December 29, 1928-MIGUEL

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