San Beda College of Law

SALES & LEASE

Course Outline
Atty. Maria Zarah R. Villanueva-Castro
I.

CONTRACT OF SALE, CONCEPTS (NCC 1458)

Essential requisites
Sale as distinguished from other
contracts
Contract for piece of work
Agency to Sell
Kinds of sale Conditional

II.
OBJECT OF SALE
Sale of undivided interest
III.
PRICE
Effect where price is simulated
Meeting of minds as to price

Leabres vs. Court of Appeals, December 12, 1986

Co vs. CIR, 99 Phil 841

CIR vs. Arnoldus Carpentry, 159 SCRA 199
Quiroga vs. Parsons, 38 Phil 501
Gonzalo Puyat & Sons, Inc. vs. Arco Amusement, 72 Phil 402
Dignos vs. CA, 158 SCRA 375
Rayos vs. CA, 434 SCRA 365
Clemeno, Jr. vs. Lobregat, 09 September 2004
Almendra vs. IAC, November 21, 1991
Bayongayong vs. CA, 430 SCRA 210
Mapalo vs. Mapalo, 17 SCRA 114
Swedish Match vs. Court of Appeals, 20 October 2004

IV.
FORMATION/PERFECTION OF CONTRACT OF SALE
Option contract
Adelfa Properties vs. CA, January 25, 1995
Atkins, Kroll & Co. vs. Cua Hian Tek, 102 Phil 948
Sanchez vs. Rigos, 45 SCRA 368

Ang Yu Asuncion vs. CA, December 2, 1994

Bible Baptist Church vs. CA, 26 November 2004
Limson vs. CA, 357 SCRA 209

Earnest money

San Miguel Properties vs. Huang, 336 SCRA 2000

V.
PARTIES TO A CONTRACT OF SALE
Sale between spouse
Public officers and employees

VI.
OBLIGATIONS OF THE SELLER
Constructive or legal delivery
Sellers title is voidable
When obligation to deliver arises

Sale of real property by unit of

measure or number
Sale of real estate made for a lump
sum
Rules in case of double sale

Matabuena vs. Cervantes, 38 SCRA 284

Olaguer vs. Puruganan, G.R. No. 158907, 12 February 2007
Valencia vs. Cabanteng, 196 SCRA 302
Ramos vs. Ngaseo, 445 SCRA 529
Phil. Suburban Development Corp. vs. Auditor General, 63 SCRA 397)
Edu vs.Gomez, 129 SCRA 601
Duran vs. IAC, 138 SCRA 489

Addison vs. Felix, 38 Phil 404

Pasagui vs. Villablanca, 68 SCRA 18
Banzon vs. Cruz, 45 SCRA 475
EDCA Publishing vs. 184 SCRA 614
Alliance Tobacco Corporation vs. Philippine Virginia Tobacco, 179 SCRA 336
Ana Jr. vs. Hernandez, 18 SCRA 973
NCC 1542; Balantakbo vs. CA, 249 SCRA 323
Paylago vs. Jarabe 22 SCRA 1247
Hanopol vs. Pilapil
Balatbat vs. CA, August 28, 1996
Caram vs. Laureta 103 SCRA 7
Taedo vs. CA, January 22, 1996
Tanongon vs. Samson, 382 SCRA 130
Consolidated Rural Bank vs. CA, 17 January 2005
San Lorenzo Development Corp. vs. CA, 449 SCRA 99

Carumba vs. CA, 31 SCRA 558

warranty on sellers title; liability in case
of
eviction

JM Tuazon & Co., Inc. vs. CA, 94 SCRA 413

Escaler vs. CA, 138 SCRA 1
Moles vs. IAC, 169 SCRA 777

warranty against hidden defects of, or

encumbrances upon the thing sold;
vendors responsibility in case of breach

Nutrimix Feeds Corporation vs. CA, 25 October 2004

VII.

DOCUMENTS OF TITLE

VIII.

RIGHTS AND OBLIGATIONS OF THE VENDEE

Arra Realty Corporation vs. Spouse Arguelles, 20 September 2004
Laforteza vs. Machuca, 333 SCRA 643
Vda. De Mistica vs. Naguiat, 418 SCRA 73

IX.
ACTIONS FOR BREACH OF CONTRACT OF SALE OF GOODS
Recto Law
Levi Hermanos, Inc. vs. Gervacio, 69 Phil 52
Zayas vs. Luneta Motor Company, 117 SCRA 726
Borbon II vs. Servicewide Specialists, Inc., July 11, 1996
Bachrach Motor Co. vs. Millan, 61 Phil 409
Tajanlangit vs. Southern Motors, Inc. 101 Phil 606
Cruz vs. Filipinas Investment & Finance Corp., 23 SCRA 791
X.
RISK OF LOSS
XI.
EXTINGUISHMENT OF SALE
Conventional redemption
Catangcatang vs. Legayada, 84 SCRA 51
Villarica vs. Court of Appeals, 26 SCRA 189
Diamante vs. CA, 206 SCRA 52
Vda. De Urbano vs. GSIS, 367 SCRA 672
Legaspi vs. CA, 142 SCRA 82)
Equitable mortgage
San Pedro vs. Lee, et al. 28 May 2004

Legal Redemption;
instances

concept

and

Ceballos vs. Intestate Estate of the late Emigdio Mercado, 28 May 2004
Balatero vs. IAC, 154 SCRA 530
Lacorte vs. CA, 286 SCRA 24
Camus vs. CA, 222 SCRA 612
Dapiton vs. CA, 272 SCRA 95
Alonzo vs. IAC,150 SCRA 259
Primary Structures Corporation vs. Sps. Valencia, GR No. 150060, August 19, 2003
Lee Chuy Realty Corporation vs. Court of Appeals, December 4, 1995

XII. ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS

Perfection
C&C Commercial Corporation vs. PNB, 175 SCRA 1
XIII. LEASE
Sublease
Malasarte vs. CA, 178 SCRA 310
Obligations of the Lessor
Chua Tee Dee vs. CA, GR 135721, 27 May 2004
Tagbilaran Integrated Sellers Association vs. CA, 444 SCRA 193