SALES

COURSE OUTLINE

I.

Nature and Form of the Contract

A. Definition (Article 1458)

1. Coronel vs CA GR No. 103577, October 7, 1996
2. Toyota Shaw vs CA GR No. 116650 May 23, 1995
3. Alfredo vs Borras 404 SCRA 145 June 17, 2003
4. Roberto vs Papio 515 SCRA 346 February 9, 2007
5. Sanchez vs Mapalad Realty Corp. GR No. 148516 December 27, 2007
6. Del Prado vs SPS. Caballero GR No. 170405 February 2, 2010
B. Subject Matter of Sale (Articles 1459-1465)
7. Heirs of Enrique Zambales vs Court of Appeals GR No. L-54070 February 28, 1983
8. Acap vs CA GR No. 118114 December 7, 1995
9. Melliza vs City of Iloilo GR No. L-24732april 30, 1968
10. Heirs of Arturo Reyes vs Socco Beltran GR No. 176474 November 27, 2008
Articles 1466-1468
11. Quiriga vs Parsons Hardware, Co. GR No. 11491 August 23, 1918
12. Ker and Co., LTD vs Lingad GR No. L-20871 April 30, 1971
13. Inchausti vs Cromwell 20 Phil. 345 October 16, 1911
14. Celestino vs CIR 99 Phil. 841 August 31, 1956
15. Movido vs Pastor GR No. 172279 February 11, 2010
16. De Leon vs Ong GR No. 170405 February 2, 2010
C. Price (Articles 1469-1474)
17. Sps. Bernardo Buenaventora and consolacion Joaquin, et. al vs Court of Appeals, et. al GR
No. 126376 November 20, 2003
18. Toyota Shaw vs CA GR No. 116650 May 23, 1995
19. Mccullough vs Aenille & Co. 13 hil. 285 February 3, 1904
20. Penalosa vs Santos 363 SCRA 545, GR No. 133749 August 23, 2001
21. Mapalo vs Mapalo GR No. 21489 &21623 May 19, 1966
22. Ting Ho vs Teng Gui GR No. 130115 July 16, 2008
D. Perfection of Contract
23. Laforteza vs Machica 333 SCRA 643 June 16, 2000
24. Limketkat vs CA 250 SCRA 523 September 5, 1996
25. EDCA vs Santos GR No. 80298 April 26, 1990
26. Ledesma vs CA GR. No. 86051 September 1, 1992
27. Sanchez vs Rigos GR No. L-25494 June 14, 1972
28. Serra vs CA GR No. 103338 January 4, 1994

29. Pacific Oxygen and Acetylene Co. vs Central Bank GR No. 21881 March 1, 1968
30. Gate vs Fonacier GR No. L-11827 July 31, 1961
31. Seventh Day Adventist Conference Church of southern Phil. Vs Northeastern Mindanao
Mission of Seventh Day Adventist, Inc. et. al GR No. 150416 July 21, 2006
Option to buy or sell (Article 1479)
32. Cavite Development Bank vs Sps. Lim GR No. 131679 February 1, 2000
33. Sanchez vs Rigos GR No. L-25494 June 14, 1972
34. Cronico vs JM Tuason and Co., Inc. GR No. L-3527 August 26, 1977
35. Ascuncion vs CA GR No. 109125 238 SCRA 602 December 2, 1994
36. Enriquez de la Cavada vs Diaz GR No. L-11668 April 1, 1918
37. Soriano vs Bautista 6 SCRA 946 GR No. L-15752 December 29, 1962
38. Limson vs CA 375 SCRA 209 April 20, 2001
39. Adelfa Properties, Inc. vs CA 240 SCRA 565 January 25, 1995
40. Equatorial Realty Dev., Inc. vs Mayfair Theater 264 SCRA 483 March 21, 1996
41. JMA House Inc. Sta Monica Industrial and Development Corp. GR No. 15411 August 31, 206
42. Vasquez vs Ayala Corporation GR No. 149734 November 19, 2004
43. Sps. Garcia vs CA GR No. 172036 april 23, 2010
Article 1482 (Earnest money)
44. Spouses Serrano and Herrera vs Cagulat GR No. 139173 February 28, 2007
45. Chua vs Court of Appeals 401 SCRA 54 April 9, 2003
46. Laforteza vs Machica 333 SCRA 643 June 16, 2000
47. San Miguel Properties Phil. Vs Alfredo huang GR No. 137290 July 31, 2000
48. Topacio vs CA, et. al GR No. 102606 July 3, 1992
49. Adelfa Properties, Inc. vs CA 240 SCRA 565 January 25, 1995
Article 1483
50. Claudel vs CA GR No. 85240 July 12, 1991
51. Sps. Dalion vs CA GR No. 78903 February 28, 1990
52. Ortega vs Leonardo 103 Phil. 870 May 28, 1958
53. Universal Robina Sugar Milling Corp vs Heirs of Angel Teves 389 SCRA 316 September 18,
2002
Article 1484 with Article 1485 and 1486
54. Luneta Motors vs Dimagiba 3 SCRA 884 December 30, 1961
55. Pameca vs Wood Treatment plant 310 SCRA 281 July 14, 1999
56. Pascual vs Universal Corp. 61 SCRA 121 November 20, 1974
57. Southern Motors vs Moscoso 2 SCRA 168 May 30, 1961
58. Zayas vs Luneto Motor Co. GR No. L-30583 October 23, 1982
59. Ridad vs Filipinas Investment and Finance Corporation GR No. 39806 January 27, 1983
60. Levy Hermanos Inc. vs Gervacio 69 Phil 62 October 27, 1939
61. U.S. Commercial Co. vs Halili GR No. L-5535 May 29, 1953
RA No. 6552 (Maceda Law)
62. Pagtulungan vs Vda. De Manzano September 13, 2007

E.

II.
A.

B.

III.

IV.
A.

63. Mclaughlin vs CA GR No. L-57552 October 10, 1986

64. Active Realty and Development Corp vs Necita G. Darayo GR No. 141205 May 9, 2002
65. Jestra Dev. And Mgt. Corp vs Pacifico 513 SCRA 413 January 30, 2007
66. Olympia Housing Inc vs Panasiatic Travel Corp 395 SCRA 298 January 16, 2003
Legality of sale
1. RA 6425 (Narcotics)
2. Act. No. 2590 Sec 7 (wild bird or animal)
3. Act No. 3983 Sec 1 (rare wild plants)
4. RA 1288 (poisonous plants or fruits)
5. Ran 428 Sec 1 (dynamite fish)
6. Act No. 2255 Sec. 1 (gunpower and explosives)
7. PD no. 9 (firearms and ammunitions)
8. RA 4254
9. RA 8550 (fish and fishery species illegally caught)
10. RA 9147 (wildlife)
CAPACITY TO BUY OR SELL (Article 1489-1492)
Article 1490
67. Felipe vs Aldon GR No. L-60174 February 16, 1983
68. Castillo vs Castillo GR No. L-18238 January 22, 1980
69. Uy Sin Pin vs Cantollas 70 Phil. 55 June 20, 1940
70. Cook vs Mcmicking 27 phil 10 March 3, 1914
71. Medina vs CIR 1 SCRA 302 January 28, 1961
72. Manonsong vs Estimo 404 SCRA 683 GR No. 136773 June 25, 2003
Articles 1491 & 1492
73. Godinez vs Fong GR No. L-36731 January 27, 1983
74. Gan Tingco vs Pabinguit GR No. 10439 October 17, 1916
75. Distajo vs CA GR No. 112954 August 25, 2000
76. Federico N. Ramos vs Patricio A. Ngaseo A.C. No. 6210 December 9, 2004
77. Wolfson vs Estate of Martinez 20 Phil. 340 October 13, 1911
78. Olaguer vs Purungganan Jr. 515 SCRA 460 (2007) GR. No. 158907
79. Maharlika Publishing Corp vs Tagle GR No. 65594 July 9, 1986
80. Forniliar et. al. vs Branch 164 RTC of Pasig et. al. GR No. 72306 October 6, 1988
81. Rubias vs Batiller 51 SCRA 120 GR No. L-35702 May 29, 1973
82. Fabillo vs IAC GR No. 68838 March 11, 1991
EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS BEEN LOST (Articles 14931494)
83. Lawyers Cooperative Publishing Co vs Tabora GR No. L-21263 April 30, 1965
OBLIGATIONS OF THE VENDOR (Articles 1495 1581)
Delivery of the thing sold/ Transfer of ownership
84. Tomas K. Chua vs Court of Appeals et. al. GR No. 119255 April 9, 2003
85. Topacio vs CA et. al. GR No. 102606 July 3, 1992 211 SCRA 291

86. Santos vs Santos 366 SCRA 395 GR No. 133895 October 2, 2001
87. Ocejo Perez and Co. vs International Bank 37 Phil. 631 April 30, 1968
88. Soler vs Chesley 43 Phil 529 GR No. L-17150 June 20, 1922
89. Gonzales vs Calimbas 61 Phil 355 GR no. L-27878 December 31, 1927
Kinds of Delivery (Article 1496)
90. Alfredo vs Borras 404 SCRA 145 GR No. 144225 June 17, 2003
a. Real Delivery (Article 1497)
91. People vs Tan 338 SCRA 330 GR No. 120672 August 17, 2000
b. Constructive Delivery
1. Symbolic Delivery (Article 1498)
92. Zenaida Santos vs Calixto Santos, et. al GR No. 133895 October 2, 2001
93. Addison vs Felix 38 Phil 404 GR No. L-12342 August 3, 1918
94. Power Commercial Corp vs CA 274 SCRA 597 June 20, 1997
95. Lorenzo Dev. Corp vs CA 449 SCRA 99 Janaury 21, 2005
96. De Leon vs Ong GR No. 170405 February 11, 2010
2. Tradition Longa Manu (Article 1499)
97. Board of Liquidators vs Floro GR No. L-15155 December 29, 1960
3. Tradition bervi manu (Article 1499)
98. Abuan vs Garcia GR No. L-20091 July 30, 1965
99. Heirs of Pedro Escanlar vs CA 281 SCRA 176 October 23, 1997
4. Tradition contitutum possessoruim (Article 1500)
100. Amigo vs Tevez GR No. L-6389 November 29, 1954
B. When delivery does not transfer title
1. Delivery on sale on return, sale on approval, trial or satisfaction (Article 1502)
101. Industrial Textile Manufacturing vs LPJ enterprises GR No. 66140 January 21, 1993
2. In case of express/ implied reservation (Article 1503 and 1478)
102. Chrysler Phil. Corp. vs Court of Appals GR No. L-55684 December 19, 1984

C. Risk of Loss (Article 1504)

103. Lawyers Cooperative vs Tabora GR No. L-21263 April 30, 1965
D. Effect of the Sale where the vendor is not the owner at the time of the delivery
104. Almendra vs Intermediate Appelate Court GR No. 75111 November 21, 1991
105. Imperial vs CA GR No. 102037 July 17, 1996

1. Estoppels (Articles 1431, 1434, 1911)

106. Bucton vs Gabar GR No. L-36359 January 31, 1974
107. Jalbuena vs Lizarraga GR No. 10599 December 24, 1915
108. Gutierrez Hermanos vs Orense 28 Phil 571 GR No. L-9188 December 4, 1914
2. Exceptions (Article 1505)
109. Bucton vs Gabar GR No. L-36359 January 31, 1974
110. Dizon vs Suntay GR No. L-30817 September 29, 1972
111. Ledesma vs Court of Appeals GR No. 86051 September 1, 1992
3. Statutory power when ordered by courts
112. Manila Remnant Co., Inc vs Court of Appeals GR No. 107282 March 16, 1994
4. Sale in merchants stores, fairs or markets (Code of Commerce Article 85 & 86)
113. Development Bank of the Phil. Vs Court of appeals GR No. 110053 October 16, 1995
E. Sale by one having a voidable title (Article 1506)
114. EDCA Publishing & Distributing Corp vs Santos GR No. 80298 April 26, 1990
115. Aznar vs Yapdiangco 13 SCRA 486 GR No. L-18536 March 31, 1965
116. Arenas vs Raymundo 19 Phil 47 GR No. L-5741 March 13, 1911
117. Clemente vs Razo 452 SCRA 769 GR No. 151245 March 4, 2005
F.

Documents of Titile (Article 1507-1520)

118. American foreign Banking Corp vs Herridge GR No. 21005 December 20, 1924
1. Definition (Article 1636)
2. Negotiable Documents:
a. How negotiated (Article 1508-1509)
119. Philippine Trust Co vs Philippine Nat. Bank GR No. 16483 December 7, 1921
120. Great Eastern Life Insurance Co vs Hong Kong and Shanghai Banking corp 43 Phil 678
GR No. L-18657 August 23, 1922
b. Effect of placing the word non-negotiable (Article 1510)
c. Effect of delivery when document cannot be negotiated by mere delivery & effect of
negotiation and endorsement of non-negotiable instrument
d. Who can negotiate (Article 1512)
121. Siy Cong Bieng & Co vs Hongkong & Shanghai Banking corp GR No 34655 March 5, 1932
e. Effects of negotiation (Article 1513)
3.

Non-negotiable Documents:
How transferred and its effects (Article 1514)

122. De la Riva vs Lizarraga Hermanos, et. al January 28, 1907

4. When indorsement is need for negotiation (Article 1515)
5. Warranties of seller of Documents (Article 1516)
6. Non-liability of Indorser for failure of bailee to comply (Article 1517)
7. Unauthorized Negotiation (Article 1518)
8. Rules on levy/garnishment of goods covered by documents of title (Article 1514, 1519,
1520)
9. Specifications for delivery (Article 1521)
10. In case of Movables (Article 1522, 1537)
a. When quantity less than that agreed upon
123. Chrysler Phil. Corp vs Court of Appeals GR No. L-55684 December 19, 1984
b. When quantity more than that agreed upon
124. Quiroga vs Persons GR No. L-11491 August 23, 1918
125. Matute vs Cheong Boo GR No. L-11109 January 7, 1918
c. When quantity different
11. Delivery to a Common Carrier (Article 1523, 1732)
126. Delsan Transport Lines, inc vs American Home Assurance Corp GR No. 149019 August
15, 2006
127. Bhen Meyer and Co vs Yangco 38 Phil 602 GR No. 13203 September 18, 1918
Rule on CIF or FOB Sales
128.

General Foods vs Naroco GR No. L-8717 November 20, 1956

G. Remedies of Unpaid Seller (Article 1524-1535)

129. Katigbak vs court of Appeals GR No. L-16480 January 31, 1962
1. When vendor is not bound to deliver (Article 1524)
130. Florendo vs Foz GR no. 6565 October 24, 1911
2. Definition of Unpaid Seller (Article 1525)
131. US vs Bedoya GR No. 5100 November 3, 1909
3. Rights of unpaid seller
a. Possessory lien (Articles 1526-1529, 1503, 1535)
b. Stoppage in transit (Articles 1530-1532, 1535, 1536)
c. Right of Resale (Article 1533)
d. Right to rescind (Article 1534)

H. Performance of the Contract (Article 1536-1544)

1. Rule in judicial Sales (Articles 1540-1541)
132. Garcia vs Velasco GR No. 47519 June 10, 1941
133. Asian vs Jalandoni GR No. 20435 October 23, 1923
2. Rules on double sales (Article 1544)
134. Dagupan Trading Company vs Macam GR No. L-18497 May 31, 1965
135. Curz vs Cabana GR No. L-56232 June 22, 1984
136. Navera vs CA GR no. L-56838 April 26, 1990
137. Naawan Community Rural Bank vs CA 395 SCRA 43 January 13, 2003
138. Espiritu vs Valerio GR No. L-18018 December 26, 1963
139. De Leon vs Ong GR No. 170405 February 11, 2010
140. Ordua vs Fuentebella GR No. 176841 June 29, 2010
141. Martinez vs Garcia GR No. 166536 February 4, 2010
I.

Conditions and Warranties (Article 1545)

1. Conditions (Article 1545)
142. Sandejas vs Lina GR No. 141634 February 5, 2001
143. Romero vs Court of Appeals GR No. 107207 November 23, 1995
144. Heirs of Pedro Escamlar vs CA 281 SCRA 176 October 23, 1997
2. Express Warranties (Article 1546)
145. Azarraga vs Gay 52 Phil 599 December 29, 1928
3. Implied Warranties (Article 1547)
146. Schmid and Oberly inc vs RJL Martinez GR No. 75198 October 18, 1988
147. Ang vs Court of Appeals GR. No 177874 September 29, 2008
4. Warranty in case of Eviction (Articles 1548-1560)
a. Warranty in case of eviction (article 1548)
148. Sps. Uy vs Ariza, et. al. GR No. L-18497 May 31, 1965
149. Canizares vs Torrejon 21 Phil 127 December 28, 1911
b. What seller must give in case of eviction (Article 1555)
c. Article 1558 & Article 1559 in relation to Article 1548
150. Jovellano vs Lualhati 47 Phil 371 February 2, 1925
- Rule 6, Sec. 12, Revised Rules of Court
5. Warranty against Hidden Defects of or Encumbrances upon the thing sold (Articles
1561-1581)
a. Article 1561 with Articles 1562 &1567
151. Nutrimix Feeds Corp vs court of appeals et. al GR No. 152219 October 25, 2004
152. Filinvest Credit Corp vs court of appeals GR No. 82508 September 29, 1989

153.

Chong yong Tek vs Santos 13 Phil 52 February 24, 1909

b. Article 1566
154. Supercars Management & Development Corp vs Flores GR No. 148173 December 10,
2004
155. Bryan vs Hankins 44 Phil 87 GR no. L-18999 November 24, 1922
c. Article 1571 in relation with Article 1715 &1144 (Prescription of action of warranty)
156. Engineering & Machinery vs court of appeals GR No. 52267 January 24, 1996

V.

OBLIGATIONS OF THE VENDEE (Articles 1582-1593)

157. Antipolo Realty Corp vs NHA GR No. L-50444 August 31, 1987
158. Ocampo vs Court of Appeals GR No. 97442 June 30, 1994
A. Articles 1584 and 1585
159. Grajeda vs Intermediate Appellate Court GR No. L-67929 October 27, 1987
160. Ker & Co vs De la Rama GR No. 4480 October 16. 1908
B. Article 1590
161. Adelfa Properties Inc vs Court of Appeals GR No. 111238 January 25, 1995
C.
162.
163.
164.
165.
166.

Article 1592 (Rescission of Sale of Real Property)

Platinum Plans Phil Inc vs Cucuenco GR No. 147405 April 25, 2006
Chua vs CA GR No. 119255 April 9, 2003
Legarda Hermanos vs Saldoma 55 SCRA 324 January 28, 1974
Luzon Brokerage vs Maritime BLDG 43 SCRA 93 January 31, 1972
Roque vs Lapuz 96 SCRA 741 GR No. L-32811 March 31, 1980

D. Article 1593 (Articles 1191, 1597)

167. Ramirez vs Court of Appeals and Muller Nease GR No. L-6536 January 25, 1956
168. Guevarra vs Pascual 12 Phil 311 GR No. L-4679 December 22, 1908

VI.

BREACH OF CONTRACT OF SALE (Articles 1594-1599)

169. Supercars Mgnt & Development Corp vs Filemon Flores GR No. 148173 December 10,
2004
170. Harrison Motors Corp vs Navarro GR No. 132269 April 27, 2000
171. Angeles vs Calasanz GR No. L-42283 March 18, 1985
172. Phil. National Bank vs Mega Prime Realty and Holdings Corp GR No. 173454 (2008)

VII.

EXTINGUISHMENT OF SALE (Articles 1600-1623)

A. In General (Article 1600)
173. Osmea vs Court of Appeals GR No. L-56545 January 28, 1983
B. Conventional Redemption
1. Definition (Article 1601)
174. Ordoez vs Villaroman GR No. L-238 March 13, 1947
175. Villarica vs Court of appeals GR No. L-19196 November 29, 1968
176. Misterio vs Cebu State College of Science and Technology 461 SCRA 122 GR No.
152199 June 23, 2005

177.
178.
179.
180.
181.

2. When presumed Equitable Mortgage (Articles 1602-1604)

Balatero vs CA GR No. 73889 September 30, 1987
Ching Sen Ben vs CA GR No. 124355 September 21, 1999
Lacorte vs CA 286 SCRA 24 GR no. 124574 February 2, 1998
Catangtang vs Legayada 84 SCRA 51 GR No. L-26295 July 14, 1978
Magtira vs CA GR No. L-27547 March 31, 1980

3. Period of Redemption (Article 1606)

182. Philadelphia Agan vs Heirs of Sps. Andres and diosdado Nueva GR no. 155018 December
11, 203
183. Anchuelo vs IAC 147 SCRA 434 GR No. 71391 January 29, 1987
184. Muez vs CA 152 SCRA 197 July 23, 1987
185. Tapas vs CA et al. GR No. L-22202 February 27, 1976
186. Pangilinan vs Ramos 181 SCRA 359 January 23, 1990
187. Abilla vs Gobonsen GR No. 146651 August 6, 2002
C. Legal Redemption (Articles 1619-1623)
1. Rule 39, Sec. 29 (Revised Rules of Court)
2. Rule 68 Sec 3 (Revised Rules of Court)
3. Sec 119 Commonwealth Act 141
4. Sec 6 Act 3135
5. Sec. 78 General Banking Act RA No 337 as amended
6. Sec 215 National Internal Revenue Code as amended
7. Sec 25 Rule 39 Rules of Court
8. Cases:
188. Primary structures Corp vs Sps. Anthony and susan T. Valencia GR No. 150060 August
19, 2003
189. Oscar C. Fernandez vs Sps. Carlos and Narcisa Tarun GR No. 143868 November 14,
2002
190. Sps. Estanislao vs CA GR No. 143687 July 31, 2001
191. Tupas vs Damasco 132 SCRA 593 October 23, 1984

192.
193.
194.
195.
196.
197.
198.

VIII.

De Santos vs City of Manila 45 SCRA 40 June 29, 1972

Basa vs Aguilar 117 SCRA 128 GR No. L-30994 September 30, 1982
Avila vs Baratbat 485 SCRA 8 March 17, 2006
Fernandez vs Tarun 391 SCRA 653 november 14, 2002
Cabrera vs Villanueva GR No. 75069 April 15, 1988
Francisco vs boiser 332 SCRA 792 May 31, 2000
United Planters sugar Milling Co., Inc vs CA GR No. 126890 March 9, 2010

ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS

A. ArticleS 1624-1635
B. Bulk Sales Law (Act 3952)
C. Retail Trade Law (RA 1180 as amended by PD 714)
D. Anti-Dummy Act (Comm. Act 108 as amended by PD 715)
E. Rent Control Act (RA No. 9341) December 21, 2005
F. Cases:
199. Sonny Lo vs KJS Eco-Formwork System Phil., Inc GR No. 149420 October 8, 2003
200. Lopez vs Court of Appeals GR No. L-33157 June 29, 1982
201. Nyco Sales Corp vs BA Finance Corp GR No. 71694 August 16, 1991
202. Marsman & Co., Inc vs First Coconut Central Co., Inc GR No. L-39841 June 20, 1988
203. Luzon Stevedoring Corp vs Anti-Dummy Board GR No. L-26094 August 18, 1972
204. Project Builders, Inc vs CA 358 SCRA 626 June 19, 2001
205. South city Homes Inc., Fortune Motors Phils., Palawan Lumber Manufacturing Corp vs BA
Finance Corp GR No. 135462 December 7, 2001
206. Phil. National Bank vs CA 272 Phil 291 GR No. 118357 May 6, 1997

Case assignment:
JJ case 1-11, 188
Nikki 12 22, 189
Devy 23-33, 190
Pat 34 44, 191
Mama bear 46- 55
Nia 56 61
Franz 62- 67
Denise 68 79
Jay 80 91

Hilary - 92 103
Janica 104 115
Rhea 116 127
Rochedale 128 139
Christalyn 140 151
Rachel 152 163
Ate joy 164 175
Florence 176 187
Kevin compilation of the special
laws or special provisions (highlight)