2) When ownership is not transferred despite delivery 1) When ownership is transferred (Art. 1477) • ACTUAL DELIVERY • CONSTRUCTIVE DELIVERY CONSTRUCTIVE DELIVERY 1) Execution of a public instrument (Art. 1498 par. 1) 2) Traditio symbolica (Art. 1498, par. 2) 3) Traditio longa manu (Art. 1499) 4) Traditio brevi manu (Art. 1499) 5) Traditio constitutum possesorium ( Art. 1500) 6) Quasi-traditio (Art. 1501) 2) When ownership is not transferred despite delivery (Art. 1478) • Pactum reservati dominii – stipulation that ownership is transferred upon full payment of the price MUTUAL PROMISE AND ACCEPTED UNILATERAL PROMISE (Art. 1479)
• If a bilateral promise, reciprocally demandable
• If a unilateral promise, demandable if supported by an option money. • Option money – privilege paid which gives the party the right to buy/sell a thing RISK OF LOSS (Art. 1480) • SELLER - Lost before perfection (no contract) • BUYER - Lost after delivery to buyer (owner bears the loss) - lost due to fortuitous event after perfection but before delivery (obligation to pay is not extinguished) - fungible goods in case the buyer refuses to accept delivery For fungible goods lost after perfection but before delivery, seller is guilty of fraud, negligence, default, violation of terms, and object is generic – the seller is liable Contract of Sale of goods by sample or by description (Art. 1481) • The bulk corresponds with the description or sample • The buyer shall have a reasonable opportunity to compare the bulk with the description or sample • If both by sample and description, must satisfy both requirements. EARNEST MONEY (Art. 1482) • Part of the purchase price • Proof of perfection of the contract FORMS OF CONTRACT OF SALE (Art. 1483) • In writing • Oral • Partly in writing and partly oral • Inferred from the conduct of the parties SALE OF PERSONAL PROPERTY IN INSTALLMENTS (Art. 1484) • Alternative remedies available to seller – Exact fulfillment – Cancel the sale if 2 or more installments are not paid – Foreclose chattel mortgage if 2 or more installments are not paid (unpaid balance cannot be collected; any agreement to collect is VOID) • Purpose: to prevent abuse of foreclosure LEASE OF PERSONAL PROPERTY WITH OPTION TO BUY (Art. 1485) • Art. 1484 applies • Reason: prevent indirect violation of Art. 1484; may really be considered a sale of personal property in installments Non-Return of Installment Payments (Art. 1486) • In case of cancellation – mutual restitution or installments or rents must be returned • EXCEPTION: Stipulated and not unconscionable EXPENSES IN EXECUTION AND REGISTRATION (Art. 1487) • Sellers pays the expenses • EXCEPTION: Stipulation EXPROPRIATION SALE • Governed by special laws