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!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !

"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
CnA1Lk 3: SU8ILC1 MA11Lk CI SALL

Art|c|e 14S9.
1he th|ng must be ||c|t and the vendor must have a r|ght to transfer
the ownersh|p thereof at the t|me |t |s de||vered. (n)

Art|c|e 1460.
A th|ng |s determ|nate when |t |s part|cu|ar|y des|gnated or phys|ca|
segregated from a|| others of the same c|ass.

1he requ|s|te that a th|ng be determ|nate |s sat|sf|ed |f at the t|me the
contract |s entered |nto, the th|ng |s capab|e of be|ng made
determ|nate w|thout the necess|ty of a new or further agreement
between the part|es. (n)

Art|c|e 1461.
1h|ngs hav|ng a potent|a| ex|stence may be the ob[ect of the contract
of sa|e.

1he eff|cacy of the sa|e of a mere hope or expectancy |s deemed
sub[ect to the cond|t|on that the th|ng w||| come |nto ex|stence.

1he sa|e of a va|n hope or expectancy |s vo|d. (n)

Art|c|e 1462. 1he goods wh|ch form the sub[ect of a contract of sa|e
may be e|ther ex|st|ng goods, owned or possessed by the se||er, or
goods to be manufactured, ra|sed, or acqu|red by the se||er after the
perfect|on of the contract of sa|e, |n th|s 1|t|e ca||ed "future goods."

1here may be a contract of sa|e of goods, whose acqu|s|t|on by the
se||er depends upon a cont|ngency wh|ch may or may not happen. (n)

Art|c|e 1463.
1he so|e owner of a th|ng may se|| an und|v|ded |nterest there|n. (n)

Art|c|e 1464.
In the case of fung|b|e goods, there may be a sa|e of an und|v|ded
share of a spec|f|c mass, though the se||er purports to se|| and the
buyer to buy a def|n|te number, we|ght or measure of the goods |n the
mass, and though the number, we|ght or measure of the goods |n the
mass, and though the number, we|ght or measure of the goods |n the
mass |s undeterm|ned. 8y such a sa|e the buyer becomes owner |n
common of such a share of the mass as the number, we|ght or
measure bought bears to the number, we|ght or measure of the mass.
If the mass conta|ns |ess than the number, we|ght or measure bought,
the buyer becomes the owner of the who|e mass and the se||er |s
bound to make good the def|c|ency from goods of the same k|nd and
qua||ty, un|ess a contrary |ntent appears. (n)

Art|c|e 146S.
1h|ngs sub[ect to a reso|utory cond|t|on may be the ob[ect of the
contract of sa|e. (n)

A. kequ|s|tes Cf A Va||d Sub[ect Matter:
1. lL musL be a posslble Lhlng
2. lL musL be llclL
3. lL musL be deLermlnaLe or aL leasL deLermlnable
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01

1ransfer of LlLle or an agreemenL Lo Lransfer lL for a prlce pald
or promlsed Lo be pald ls Lhe essence of sale." !"#$$%&&%#'()
#+ ,'-()'./ 0(1('2( 13 "#2)- #+ 455(./& .'6 4-('(# 6( 7.'%/.
8'%1()&%-9: ;<= >"04 ?@A B=CC<D3
1he Clvll Code provlslons deflnlng sales ls a caLch-all" provlslon
whlch effecLlvely brlngs wlLhln lL grasp a whole gamuL of
Lransfers whereby ownershlp of a Lhlng ls ceded for a
conslderaLlon. E#/9-(FG'%F 8'%1()&%-9 13 "#2)- #+ 455(./&: H?I
>"04 ?C= B;@@=D!

E#/9-(FG'%F 8'%1()&%-9 13 "#2)- #+ 455(./&

Iacts: nuC owned a 10-hecLare properLy whlch was leased by llresLone
Ceramlcs wlLh a rlghL of flrsL refusal. near Lhe end of Lhe lease Lerm,
nuC looked Lo sell Lhe properLy Lo olyLechnlc unlverslLy of Lhe
hlllpplnes (u). Memorandum Crder no. 214, lssued by res. Cory
Aqulno, ordered Lhe conveyance of Lhe properLy Lo u. lL also
cancelled Lhe debL of nuC Lo Lhe naLlonal CovernmenL.

Issue: Was Lhere a conLracL of sale beLween nuC and u?

ne|d: ?LS, Lhere was a conLracL of sale ln vlolaLlon of llresLone's rlghL of
flrsL refusal. 1he provlslons on sale are caLch-all" provlslons whlch
covers Lransfers whereby ownershlp of a Lhlng ls ceded for a
conslderaLlon. 1he cancellaLlon of nuC's debL was Lhe conslderaLlon for
Lhe sale. Slnce Lhe nuC, u, and Lhe naLlonal governmenL are dlsLlncL
from each oLher, Lhe Lransfer was noL a Lransfer wlLhln Lhe same enLlLy,
and was Lhus a conveyance of LlLle.

Doctr|ne:

Where under an agreemenL, a parLy renounces and Lransfers
whaLever rlghLs, lnLeresLs, or clalms she has over a parcel of
land ln favor of anoLher parLy ln conslderaLlon of Lhe laLLer's
paymenL of Lhereln loan, Lhe agreemenL ls essenLlally a sale,
and Lhe rule on dellvery effecLed Lhrough a publlc lnsLrumenL
apply. !".#%J(&: K)3 13 ".#%J(&LE.'-#M.: NC? >"04 ;<H B;@@?D3

8. Lffect Cf Absence Cf Any kequ|s|te
Absence of any requlslLe resulLs ln elLher a no conLracL"
slLuaLlon, or a vold conLracL under ArLlcle 1409.
LffecL of no conLracL" slLuaLlon ! buyer can recover whaL he
has pald, based on Lhe prlnclple of un[usL enrlchmenL
LffecLs of vold conLracLs:
o lf vold because Lhe lllegallLy consLlLuLes a crlmlnal
offense (ArLlcle 1411) ! parl dellcLo wlll apply, courLs
leave Lhe parLles where Lhey are, wlLhouL pre[udlce Lo
crlmlnal prosecuLlon
o lf vold buL Lhe acL ls merely prohlblLed and noL lllegal
per se (ArLlcle 1416) ! lf publlc pollcy ls enhanced,
plalnLlff may recover.
o lf no crlme, buL boLh are aL faulL (ArLlcle 1412) !
nelLher may recover
o lf no crlme, and only one parLy ls aL faulL (ArLlcle 1412)
! lnnocenL parLy may recover
1he requlslLes of Lhe sub[ecL maLLer are meanL Lo safeguard Lhe
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
reallzablllLy and enforceablllLy of Lhe obllgaLlons of Lhe seller Lo
Lransfer ownershlp and dellver possesslon.

I. Must 8e Lx|st|ng, Iuture Cr Cont|ngent (Art|c|es 1347, 1348, And
1462)

Art|c|e 1347.
A|| th|ngs wh|ch are not outs|de the commerce of men, |nc|ud|ng
future th|ngs, may be the ob[ect of a contract. A|| r|ghts wh|ch are not
|ntransm|ss|b|e may a|so be the ob[ect of contracts.

No contract may be entered |nto upon future |nher|tance except |n
cases express|y author|zed by |aw.

A|| serv|ces wh|ch are not contrary to |aw, mora|s, good customs,
pub||c order or pub||c po||cy may ||kew|se be the ob[ect of a contract.
(1271a)

Art|c|e 1348.
Imposs|b|e th|ngs or serv|ces cannot be the ob[ect of contracts. (1272)

Sub[ect Matter Must be a "oss|b|e 1h|ng" l.e. lL ls:
o LxlsLlng or has a poLenLlal Lo exlsL, conslderlng Lhe sLaLe
of sclence and Lechnology aL Lhe Llme of perfecLlon of
Lhe conLracL (ArLlcle 1461)
" 1he sale of goods yeL Lo be manufacLured,
ralsed, or acqulred by Lhe seller ls valld,
provlded LhaL Lhey can come lnLo exlsLence.
" 8uL lf Lhe sub[ecL maLLer cannoL come Lo
exlsLence (l.e. an lmposslble Lhlng), Lhe conLracL
ls vold because of ArLlcle 1409(3).
o A fuLure Lhlng (ArLlcle 1462)
o ConLlngenL or sub[ecL Lo a resoluLory condlLlon (ArLlcle
1462 & ArLlcle 1463)
" lor Lhlngs whose exlsLence depends on a
condlLlon, capaclLy Lo exlsL ls sufflclenL.
CerLalnLy Lo exlsL ls noL necessary.
1he seller does noL have Lo be owner of Lhe Lhlng aL Lhe Llme
Lhe sale ls perfecLed, buL only LhaL he/she ls Lhe owner of Lhe
Lhlng come Lhe daLe of dellvery.

A. O$5-%# 0(% >5().-.( (Art|c|es 1461 And 1347)
LlLerally mean Lhe purchase of whaL we hope"
A conLracL of sale coverlng fuLure Lhlngs, and sub[ecL Lo a
suspenslve condlLlon LhaL Lhe sub[ecL maLLer wlll come lnLo
exlsLence.
o lf Lhe Lhlng does noL come lnLo exlsLence, conLracL ls
deemed exLlngulshed.
Covers only deLermlnaLe or speclflc Lhlngs. Cenerlc or
deLermlnable Lhlngs are noL covered slnce Lhey do noL come ouL
of exlsLence.
endlng crops whlch have poLenLlal exlsLence may be valld
ob[ecL of sale. !>%J./ 13 P./6(Q: A@ EG%/3 A=; B=C;<DR and such
LransacLlon cannoL be consldered Lo effecLlvely be sale of Lhe
land or any parL Lhereof. !E%FG(/ 13 4/#'Q#: === >"04 HN=
B=CI=D3

!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
8. O$5-%# >5(% (Art|c|e 1461)
LlLerally means Lhe purchase of hope"
SLlll a valld sale. WhaL ls prohlblLed by Lhe Clvll Code ls Lhe sale
of a valn hope or expecLancy (ArLlcle 1461)
o Lxample: sale of sweepsLakes LlckeL. 1he ob[ecL of Lhe
sale ls Lhe chance Lo wln.
A sale "#$%&' )$"& ls a posslble slLuaLlon where Lhe
commuLaLlve naLure of sale ls noL complled wlLh. 1he buyer can
acLually geL more Lhan whaL he pald for.

C. Sub[ect 1o keso|utory Cond|t|on (Art|c|e 146S)
lf Lhe Lhlng ls exLlngulshed by Lhe resoluLory condlLlon, Lhe
conLracL of sale ls lLself exLlngulshed.
o 1he parLles should reLurn Lo each oLher whaL Lhey have
recelved (ArLlcle 1190), ln order Lo preserve Lhe
commuLaLlve naLure of sale.
o 1he frulLs and lnLeresLs of Lhe Lhlngs recelved need noL
be reLurned slnce Lhey are deemed Lo have been
muLually compensaLed (ArLlcle 1187).
1he suspenslve or resoluLory condlLlon does noL affecL Lhe
commuLaLlve naLure of sale. lL ls presumed LhaL Lhe parLles
consldered Lhese ln Lhe deLermlnaLlon of Lhe prlce or
conslderaLlon for Lhe sale.

II. Must 8e L|c|t (Art|c|es 1347, 14S9 and 1S7S)

Art|c|e 1347.
A|| th|ngs wh|ch are not outs|de the commerce of men, |nc|ud|ng
future th|ngs, may be the ob[ect of a contract. A|| r|ghts wh|ch are not
|ntransm|ss|b|e may a|so be the ob[ect of contracts.

No contract may be entered |nto upon future |nher|tance except |n
cases express|y author|zed by |aw.

A|| serv|ces wh|ch are not contrary to |aw, mora|s, good customs,
pub||c order or pub||c po||cy may ||kew|se be the ob[ect of a contract.
(1271a)

Art|c|e 1S7S.
1he sa|e of an|ma|s suffer|ng from contag|ous d|seases sha|| be vo|d.

A contract of sa|e of an|ma|s sha|| a|so be vo|d |f the use or serv|ce for
wh|ch they are acqu|red has been stated |n the contract, and they are
found to be unf|t therefor. (1494a)

A. Sub[ect Matter Must 8e L|c|t.
A Lhlng ls llclL and may be Lhe ob[eL of a conLracL when lL ls noL
ouLslde Lhe commerce of men, and all rlghLs whlch are noL
lnLransmlsslble.

8. Sa|es Dec|ared I||ega| by Law
1hlngs ouLslde Lhe commerce of man
Anlmals sufferlng from conLaglous dlsease, renderlng Lhem unflL
for use or servlce Lhey are lnLended for
under ArLlcle 1347, a sale lnvolvlng fuLure lnherlLance ls vold
and cannoL be Lhe source of any rlghL nor creaLe any obllgaLlon.
!S.T(6# 13 "#2)- #+ 455(./&: ;A; >"04 I@ B=CC?D3
1hose declared vold by speclal laws:
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o narcoLlcs, gunpowder, exploslves, flrearms and
ammunlcLlons.
o Wlld anlmals and rare, wlld or polsonous planLs or frulLs
o Sale of frlar land wlLhouL consenL of SecreLary of
AgrlculLure
Sale of land Lo a forelgner ls vold because lL ls conLrary Lo Lhe
ConsLlLuLlon. U)('Q(/ 13 ".-%-#: N@? >"04 AA B;@@HD
ArLlcle 1347 does noL cover walver of heredlLary rlghLs whlch ls
noL equlvalenL Lo sale, slnce walver ls a mode of exLlncLlon of
ownershlp ln favor of Lhe oLher persons who are co-helrs.
!4F.5 13 "#2)- #+ 455(./&: ;A= >"04 H@ B=CCAD3
A morLgagor ls noL prevenLed from selllng Lhe properLy, slnce lL
ls merely encumbrance and effecL a loss of hls prlnclpal
aLLrlbuLe as owner Lo dlspose of Lhe properLy. Law even
conslders vold a sLlpulaLlon forblddlng Lhe owner from
allenaLlng morLgaged lmmovable. !E%'(6. 13 "#2)- #+ 455(./&:
N@C >"04 NHI B;@@HD3

III. Must 8e Determ|nate Cr At Least "Determ|nab|e" (Art|c|e 1460)

A. Mean|ng Cf Determ|nate Cr Determ|nab|e
1. A 1h|ng Is Determ|nate Cr Spec|f|c When It Is:
a. arLlcularly deslgnaLed, or
b. hyslcally segregaLed from oLhers of Lhe same class.

2. 1ests:
a. "Capac|ty to segregate" test ! aL perfecLlon, sub[ecL
maLLer ls capable of belng made deLermlnaLe.
b. "No further agreement" test ! wlLhouL necesslLy of a
new or furLher agreemenL beLween Lhe parLles.

3. 1est Cf Determ|nab|||ty Is 1he Meet|ng Cf M|nds Cf art|es
And Not 1he Cover|ng Deed
1he Lrue conLracL of sale ls lnLanglble and ls a legal concepL. lL ls
perfecLed by Lhe meeLlng of Lhe mlnds.
1he ueed of Sale ls merely an evldence of Lhe conLracL. lf lL does
noL reflecL Lhe Lrue meeLlng of Lhe mlnds, lL may be sub[ecL Lo
reformaLlon. lL does noL lnvalldaLe Lhe conLracL.
When Lhe deed of sale descrlbes a loL ad[acenL Lo Lhe land seen,
agreed upon and dellvered Lo Lhe buyer, such land ls Lhe one
upon whlch Lhe mlnds have meL, and noL LhaL erroneously
descrlbed ln Lhe deed. 4-%/.'# 13 4-%/.'#, ;I >"04 ;H= B=C?CD!
*


4-%/.'# 13 4-%/.'#

Iacts: Luloglo ALllano execuLed a deed of sale ln favor of hls broLher
whlch supposedly covered loL 333-L. lL was laLer on dlscovered LhaL
whaL was acLually occupled was loL 333-A, whlle Luloglo was occupylng
loL 333-L. Luloglo's helrs flled an acLlon seeklng possesslon of loL 333-A.

Issue: WhaL was Lhe real sub[ecL maLLer of Lhe deed of sale?

ne|d: 1he SC held LhaL Lhe broLhers lnLended Lo convey loL 333-A. 1he
error ln Lhe deed of sale dld noL lnvalldaLe Lhe Lransfer. lL was [usL a
mlsLake whlch dld noL vlLlaLe consenL. 1hus, Lhe conLracL of sale, as

1
+',-.") /! 0'1.% '2 3$$"45), 394 SC8A 133 (2002).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
evldenced by Lhe deed of sale, ls valld. ClLed here ls Lhe docLrlne LhaL
one sells or buys real properLy as he sees lL, ln lLs acLual seLLlng and by
lLs physlcal meLes and bonds, and noL by Lhe mere loL number asslgned
Lo lL ln Lhe cerLlflcaLe of LlLle."

Doctr|ne:

4. If 1he Sub[ect Matter Is Ne|ther Determ|nate Cr Determ|nab|e,
1he Contract Is VCID
vold by vlrLue of ArLlcle 1409(6) of Lhe Clvll Code whlch declares
lnexlsLenL Lhose [conLracLs] where Lhe lnLenLlon of Lhe parLles
relaLlve Lo Lhe prlnclpal ob[ecL of Lhe conLracL cannoL be
ascerLalned."

8. Gener|c 1h|ngs May 8e Cb[ect Cf Sa|e (Art|c|es 1246 and 1409[6])

Art|c|e 1246.
When the ob||gat|on cons|sts |n the de||very of an |ndeterm|nate or
gener|c th|ng, whose qua||ty and c|rcumstances have not been stated,
the cred|tor cannot demand a th|ng of super|or qua||ty. Ne|ther can
the debtor de||ver a th|ng of |nfer|or qua||ty. 1he purpose of the
ob||gat|on and other c|rcumstances sha|| be taken |nto cons|derat|on.
(1167a)

Art|c|e 1409.
1he fo||ow|ng contracts are |nex|stent and vo|d from the beg|nn|ng:

(1) 1hose whose cause, ob[ect or purpose |s contrary to |aw, mora|s,
good customs, pub||c order or pub||c po||cy,

(2) 1hose wh|ch are abso|ute|y s|mu|ated or f|ct|t|ous,

(3) 1hose whose cause or ob[ect d|d not ex|st at the t|me of the
transact|on,

(4) 1hose whose ob[ect |s outs|de the commerce of men,

(S) 1hose wh|ch contemp|ate an |mposs|b|e serv|ce,

(6) 1hose where the |ntent|on of the part|es re|at|ve to the pr|nc|pa|
ob[ect of the contract cannot be ascerta|ned,

(7) 1hose express|y proh|b|ted or dec|ared vo|d by |aw.

1hese contracts cannot be rat|f|ed. Ne|ther can the r|ght to set up the
defense of |||ega||ty be wa|ved.

1. Gener|c Non-Determ|nab|e Cb[ects
8efers Lo funglble Lhlngs (e.g. sugar, rlce, oll, eLc.)
Sale of funglble Lhlngs ls valld lf lL can be made deLermlnaLe aL
Lhe Llme of dellvery.
o AlLhough Lhe sale of deLermlnable generlc Lhlng ls valld,
Lhe obllgaLlon Lo dellver Lhe sub[ecL maLLer can only be
complled wlLh when Lhe sub[ecL maLLer has been made
deLermlnaLe, elLher by physlcal segregaLlon or parLlcular
deslgnaLlon.
Sub[ecL maLLer ls deLermlnable when by a formula or
descrlpLlon agreed upon aL perfecLlon Lhere ls a way by whlch
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
Lhe courLs can dellneaLe lndependenL of Lhe wlll of Lhe parLles.
7(//%Q. 13 "%-9 #+ ,/#%/#: ;H >"04 N<< B=C?ID3

7(//%Q. 13 "%-9 #+ ,/#%/#

Iacts: !ullana Melllza sold parLs of LoL no. 1214 Lo llollo ClLy. 1he loLs
menLloned were 1214-C, 1214-u, and Lhe area needed for Lhe
consLrucLlon of Lhe clLy hall slLe, avenues and parks accordlng Lo Lhe
Arellano lan." 1he rlghLs Lo Lhe properLy were evenLually Lransferred Lo
lo Slan Melllza. 1he 1C1 lssued Lo hlm conLalned Lhe annoLaLlon LhaL
loLs 1214-8-2 and 1214-8-3 also belonged Lo ClLy of llollo.

Issue: WheLher or noL loL 1214-8 dld belong Lo Lhe ClLy of llollo.

ne|d: ?LS, lL dld. lL was parL of Lhe sub[ecL maLLer of Lhe deed of sale
beLween !ullana Melllza and Lhe clLy. 1he requlremenL LhaL a sale musL
have a deLermlnaLe ob[ecL ls fulfllled as long as, aL Lhe Llme of
perfecLlon of Lhe conLracL, Lhe ob[ecL ls capable of belng deLermlned
wlLhouL furLher agreemenL. ln Lhls case, Lhe Arellano lan already
speclfled Lhe lands whlch were neede for Lhe clLy hall slLe.

Doctr|ne:

A deLermlnable sub[ecL maLLer ls a generlc ob[ecL because lL has
noL been physlcally segregaLed nor parLlcularly deslgnaLed aL
Lhe polnL of perfecLlon from Lhe resL of lLs klnd.
o Where Lhe loL sold ls sald Lo ad[oln Lhe prevlously pald
loL" on Lhree sldes Lhereof, Lhe sub[ecL loL ls capable of
belng deLermlned wlLhouL Lhe need of any new
conLracL, even when Lhe exacL area of Lhe ad[olnlng
resldenLlal loL ls sub[ecL Lo Lhe resulL of a survey. !>.'
4'6)(& 13 0#6)%V2(Q: HH; >"04 <?C B;@@@D3
ueLermlnable sub[ecL maLLer of sale are noL sub[ecL Lo rlsk of
loss unLll Lhey are physlcally segregaLed or parLlcularly
deslgnaLed. W2 S(X Y "#3 13 Z#'Q./(&, ;C EG%/3 HIN B=C=AD!

W2 S(X Y "#3 13 Z#'Q./(&

Iacts: 1he Lwo parLles enLered lnLo a conLracL where Conzales bound
hlmself Lo dellver 600 plculs of flrsL class sugar Lo ?1C, wlLhouL
deslgnaLlng a parLlcular source. Conzales falled Lo dellver clalmlng LhaL
Lhe sugar was supposed Lo come for hls harvesL, buL because of fore
ma[eure, he was noL able Lo harvesL anyLhlng. ?1C broughL sulL.

Issue: WheLher or noL force ma[eure ls a valld defense for Conzales.

ne|d: nC. Sugar ls a funglble and generlc ob[ecL whlch ls never losL. As
long as Lhe ob[ecL ls noL made deLermlnaLe, Lhe Lhlng ls noL losL, and Lhe
seller ls sLlll bound Lo dellver.

Doctr|ne: lunglble/generlc Lhlngs are never losL. 1herefore, Lhe
obllgaLlon Lo dellver ls noL exLlngulshed by loss.

2. ower Cf 1he Courts 1o Set ua||ty Standard
1he CourLs have Lhe power Lo seL Lhe approprlaLe quallLy of Lhe
sub[ecL maLLer of a sale when Lhe same ls deLermlnable generlc.
o ArLlcle 1246 covers only quallLy of a generlc sub[ecL
maLLer, so LhaL when lL ls Lhe klnd and quanLlLy LhaL
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
cannoL be deLermlned wlLhouL need of a new
agreemenL of Lhe parLles, Lhe conLracL ls vold.

C. Instances where a sa|e w||| g|ve r|se to a co-ownersh|p:
1. Sa|e Cf An Und|v|ded Interest (Art|c|e 1463)
Co-ownershlp wlll be proporLlonal Lo Lhe percenLage of Lhe
undlvlded lnLeresL wlLh respecL Lo Lhe whole.

2. Sa|e Cf An Und|v|ded Share In A Mass Cf Iung|b|e 1h|ngs
(Art|c|e 1464)
1he buyer wlll be a co-owner Lo Lhe exLenL of Lhe deflnlLe
number, welghL, or measure acLually boughL.
lf whaL was acLually boughL ls greaLer Lhan Lhe amounL
avallable, Lhe buyer wlll become owner of Lhe whole and Lhe
seller ls bound Lo supply Lhe deflclency.
lf Lhe sale covers a speclflc mass as a sub[ecL maLLer, wlLhouL
any provlslons as Lo Lhe measurlng or welghlng of Lhe sub[ecL
sold, and Lhe prlce was noL based on such measuremenL, Lhe
sub[ecL maLLer of Lhe sale ls Lhe whole mass lLself, as a
deLermlnaLe ob[ecL. 1he sale ls valld. Z.%-( 13 U#'.F%(): ; >"04
IH= B=C?=D

IV. uant|ty of Sub[ect Matter Not Lssent|a| for erfect|on? (Art|c|e
1349)
Genera| ku|e: CuanLlLy ls essenLlal
" lL goes lnLo Lhe deLermlnablllLy of Lhe sub[ecL
maLLer.
" lL also goes lnLo Lhe prlce or conslderaLlon ln
Lhe conLracL. (l.e. Lhe LoLal amounL Lo be pald ls
deLermlned by Lhe quanLlLy Lo be boughL)
" WlLh a speclflc quanLlLy, Lhe obllgaLlon Lo
dellver an ob[ecL becomes reallzable,
enforceable and demandable.
o Lxcept|on: When a maxlmum quoLa/quanLlLy ls agreed
upon. lL ls sLlll posslble Lo deLermlne Lhe quanLlLy
wlLhouL Lhe need of a new conLracL. [.-%#'./ Z).%'&
42-G#)%-9 13 ,4": =<= >"04 =H= B=CICD!

[.-%#'./ Z).%'& 42-G#)%-9 13 ,4"

Iacts: Leon Sorlano (respondenL) offered Lo sell palay gralns Lo Lhe
naLlonal Cralns AuLhorlLy. Sorlano's documenLs were processed and he
was glven a quoLa of 2,640 cavans of palay. Pe Lhen dellvered 630
cavans of palay Lo Lhe nCA warehouse. When he demanded paymenL
for Lhe cavans of palay, he was lnformed LhaL hls paymenL wlll be held ln
abeyance because he was noL a bona flde farmer, accuslng hlm of Laklng
Lhe palay from Lhe warehouse of 8en de Cuzman, a rlce Lrader. Leon
Sorlano was Lhen asked by Wllllam Cabal Lo wlLhdraw hls cavans of
palay from Lhe warehouse because Lhey cannoL be legally accepLed.
Sorlano lnslsLed LhaL Lhe palay gralns dellvered be pald, so he flled a
complalnL for speclflc performance and/or collecLlon of money agalnsL
nCA. 1he Lrlal courL and AppellaLe courLs granLed Lhe case ln Sorlano's
favor and asked nCA Lo pay hlm for Lhe cavans of palay dellvered. nCA
ls now appeallng wlLh Lhe Supreme courL for Lhe declslon on Lhe
grounds LhaL 1) 1here was no meeLlng of Lhe mlnds beLween hlm and
Sorlano slnce dellvery had noL been made 2) An essenLlal elemenL of a
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
conLracL: ConsenL, was mlsslng.

Issue: WheLher or noL Lhere was a conLracL of sale.

ne|d: ?LS. (1) When Lhe nlA accepLed Sorlano's offer by noLlng ln
Sorlano's larmer's lnformaLlon SheeL a quoLa of 2,640 cavans, Lhere was
already a meeLlng of Lhe mlnds beLween Lhe parLles. Accordlng Lo
ArLlcle 1349 of Lhe new Clvll Code, Lhe facL LhaL Lhe quanLlLy ls noL
deLermlnaLe shall noL be an obsLacle Lo Lhe exlsLence of Lhe conLracL,
provlded lL ls posslble Lo deLermlne Lhe same, wlLhouL Lhe need of a
new conLracL beLween Lhe parLles. (2) Accordlng Lo ArLlcle 1473 of Lhe
Clvll Code, Sale ls a consensual conLracL and Lhere ls perfecLlon when
Lhere ls consenL upon Lhe sub[ecL maLLer and prlce, even lf nelLher ls
dellvered."

Doctr|ne:

Where seller quoLed Lo buyer Lhe lLems offered for sale, by lLem
number, parL number, descrlpLlon and unlL prlce, and Lhe buyer
had senL ln reply a purchase order wlLhouL lndlcaLlng Lhe
quanLlLy belng order, Lhere was already a perfecLed conLracL of
sale, even when requlred leLLer of credlL had noL been opened
by Lhe buyer. K#G.''(& >FG2J.FX Y >#'& EG%/3 S).6%'V "#)53 13
"#2)- #+ 455(./&, ;;< >"04 <=C B=CCHD!

K#G.''(& >FG2J.FX Y >#'& EG%/3 S).6%'V "#)53 13 "#2)- #+ 455(./&

Iacts: hlllpplne S! lndusLrlal 1radlng (S!), Lhrough 8amon San !ose,
approached Schuback & Sons Lo purchase MAn bus spare parLs. AfLer
he submlLLed Lhe llsL of parLs he wanLed, Schuback coordlnaLed w/ lLs
Cermany Cfflce Lo quoLe Lhe prlces. upon recelvlng Lhe quoLed prlces,
he forwarded a formal offer Lo S!, whlch conLalned Lhe prlces, lLem
numbers, descrlpLlons, eLc. S! lnformed Schuback of hls deslre Lo
purchase such lLems and promlsed Lo submlL Lhe quanLlLy per unlL. S!
Lhen submlLLed such quanLlLles needed Lo Schuback's CM, Mr. 8elcherL.
S! lndlcaLed Lhe same ln Lhe urchase Crder w/ Lhe lnscrlpLlon Lhls wlll
serve as our lnlLlal purchase order. C wlll lnclude 3 dlscounL." ln
order Lo avall of Lhe old prlces, Schuback lmmedlaLely ordered Lhe
producLs from Cermany. arLlal dellverles were made. 1hen, for hls
fallure Lo secure leLLers of credlL, S! falled Lo purchase Lhe same and
alleged LhaL Lhere was no perfecLed conLracL of sale. Pence Lhe clalm of
Schuback for damages.

Issue: WheLher or noL Lhere was a perfecLed conLracL of sale.

ne|d: ?LS. 1he offer was manlfesLed on uecember 17, 1981 upon
submlsslon of Lhe proposal conLalnlng Lhe lLem number, quanLlLy, parL
number, descrlpLlon, Lhe unlL prlce and LoLal Lo prlvaLe respondenL. Cn
uecember 24, 1981, prlvaLe respondenL lnformed peLlLloner of hls
deslre Lo avall of Lhe prlces of Lhe parLs aL LhaL Llme and slmulLaneously
enclosed lLs urchase Crder daLed uecember 14, 1981. AL Lhls sLage, a
meeLlng of Lhe mlnds beLween vendor and vendee has occurred.
AlLhough sald purchase order dld noL conLaln Lhe quanLlLy he wanLed Lo
order, S! made good hls promlse Lo communlcaLe Lhe same on
uecember 29, 1981. AL Lhls polnL S! was already ln Lhe process of
execuLlng Lhe agreemenL prevlously reached beLween Lhe parLles.

Doctr|ne:
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01

ALLy. SanLlago: 1hls case proves LhaL quanLlLy" ls lmporLanL ln
sale.

V. Se||er's Cb||gat|on to 1ransfer 1|t|e to 8uyer (Art|c|e 14S9, 1462, and
1S0S)

A. Se||er's Cwnersh|p Need Not Lx|st at erfect|on:
Genera| ku|e: Cwnershlp ls requlred only upon dellvery. lL ls noL
requlred aL Lhe perfecLlon of Lhe conLracL, provlded, LhaL Lhe
seller wlll be able Lo LransmlL ownershlp aL Lhe Llme of
consummaLlon of Lhe conLracL.
o Lxcept|on: ln [udlclal sale, Lhe forced seller who ls
acLually Lhe morLgagor ln defaulL, ls Lhe owner because
only Lhe absoluLe owner of Lhe Lhlng can morLgage lL.
Sale of copra for fuLure dellvery does noL make seller llable for
")%424 for falllng Lo dellver because Lhe conLracL ls sLlll valld and
Lhe obllgaLlon was clvll and noL crlmlnal. !O&V2()). 13 E(#5/(:
=@I EG%/3 =@<I B=C?@D3
A perfecLed conLracL of sale cannoL be challenged on Lhe ground
of Lhe seller's non-ownershlp of Lhe Lhlng sold aL Lhe Llme of Lhe
perfecLlon of Lhe conLracL, lL ls aL dellvery LhaL Lhe law requlres
Lhe seller Lo have Lhe rlghL Lo Lransfer ownershlp of Lhe Lhlng
sold. !4/F.'-.).L\.2& 13 6( ](#': N@N >"04 <N B;@@HD3
=

lL ls essenLlal LhaL seller ls owner of Lhe properLy he ls selllng.
1he prlnclpal obllgaLlon of a seller ls Lo Lransfer Lhe ownershlp
of" Lhe properLy sold (ArLlcle 1438). 1hls law sLems from Lhe
prlnclple LhaL nobody can dlspose of LhaL whlch does noL belong

1
6"&.) '2 3.%1.' 7"8") /! 9'::';<"5%.4,, 372 SC8A 211 (2008).
Lo hlm. =>?@ A3B CD@A =@= 63<>B3 ![#(/ 13 "#2)- #+
455(./&: ;N@ >"04 <I B=CCAD3
1haL Lhe sellers are no longer owners of Lhe goods aL perfecLlon
does noL appear Lo be one of Lhe vold conLracLs enumeraLed ln
ArLlcle 1409 of Clvll Code, and under ArLlcle 1402 Lhe Clvll Code
lLself recognlzes a sale where Lhe goods are Lo be acqulred x x x
by Lhe seller afLer Lhe perfecLlon of Lhe conLracL of sale" clearly
lmplylng LhaL a sale ls posslble even lf Lhe seller was noL Lhe
owner aL Lhe Llme of sale, provlded he acqulres LlLle Lo Lhe
properLy laLer on, neverLheless such conLracL may be deemed Lo
be &,'$".4%&/" and may Lhus fall, by analogy, under ArLlcle
1409(3): 1hose whlch conLemplaLe an lmposslble servlce."
[##/ 13 "#2)- #+ 455(./&: ;<? >"04 =NC B=CC<D!

[##/ 13 "4

Iacts: vlcLorlno and lranclsco nool are owners of Lwo parcels of land ln
lsabela. ConchlLa nool and her spouse Caudenclo clalms LhaL Lhese
belong Lo Lhem because Lhey boughL. 1hey sald LhaL Lhey had
morLgaged lL wlLh u8, buL lL was foreclosed because Lhey were noL
able Lo pay. u8 Cfflcer, Manuel Mallorca, conflrmed LhaL u8 galned
absoluLe ownershlp of Lhe 2 lands because Lhe rlghL Lo redempLlon was
noL exerclsed. LaLer, boLh were sold Lo AnecleLo nool. ConchlLa and
Caudenclo clalms LhaL Lhey had asked AnecleLo Lo purchase Lhe land
from u8 for Lhem, buL Lhey had an agreemenL LhaL AnecleLo would buy
Lhe properLy for 100,000. AnacleLo was able Lo pay 30,000. Powever,
he and hls spouse, Lmllla nebre, were unable Lo pay Lhe balance of
14,000. ln Auul1lCn, ConchlLa clalms LhaL anoLher agreemenL was
made whereby AnecleLo would reLurn Lhe properLles Lo plalnLlffs
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
anyLlme LhaL Lhe plalnLlffs had Lhe money Lo redeem Lhe same.
uefendanLs on Lhe oLher hand, clalms LhaL Lhey boughL Lhe properLy
dlrecLly from u8 and were merely mlsled lnLo execuLlng a documenL
sLaLlng LhaL he would reLurn Lhe lands Lo plalnLlffs, because Lhey were
under Lhe bellef LhaL ConchlLa sLlll had Lhe rlghL Lo redeem Lhe same.

Issue: WheLher or noL Lhe conLracL of sale was valld.

ne|d: nC. Sellers no longer had any LlLle Lo Lhe parcels of land aL Lhe
Llme of sale, and evldence showed LhaL defendanLs boughL Lhe lands
dlrecLly from u8 afLer dlscoverlng LhaL peLlLloners dld noL own Lhem.
ln Lhls case, dellvery was ls no longer posslble because ConchlLa was no
longer Lhe owner.

Doctr|ne:

8. Subsequent Acqu|s|t|on of 1|t|e by Non-Cwner Se||er (Art|c|e 1434) -
va||dates the sa|e and t|t|e passes to the se||er by operat|on of |aw.

Art|c|e 1434.
When a person who |s not the owner of a th|ng se||s or a||enates and
de||vers |t, and |ater the se||er or grantor acqu|res t|t|e thereto, such
t|t|e passes by operat|on of |aw to the buyer or grantee.

lf a buyer sells someLhlng and dellvers lL Lo Lhe buyer wlLhouL
ownlng lL, Lhe conLracL of sale remalns valld buL Lhe buyer has
no beLLer LlLle Lo Lhe goods Lhan Lhe seller. (ArLlcle 1303)
o Powever, lf Lhe seller LhereafLer acqulres LlLle Lo Lhe
Lhlng sold and dellvered, such LlLle passes Lo Lhe buyer
by operaLlon of law. (ArLlcle 1434)

C. Acqu|s|t|on by the 8uyer May Lven Depend on Cont|ngency (Art|c|e
1462).

VI. I||ega||ty of Sub[ect Matter (Art|c|es 1409, 14S8, 1461, 1462, and
1S7S)

Art|c|e 14S8.
8y the contract of sa|e one of the contract|ng part|es ob||gates h|mse|f
to transfer the ownersh|p and to de||ver a determ|nate th|ng, and the
other to pay therefor a pr|ce certa|n |n money or |ts equ|va|ent.

A contract of sa|e may be abso|ute or cond|t|ona|. (144Sa)

A. Spec|a| Laws:
narcoLlcs (8.A. 6423), wlld blrd or mammal (AcL 2390, Sec. 7),
rare wlld planLs (AcL 3983), polsonous planLs or frulLs (8.A.
1288), dynamlLed flsh (8.A 428), gunpowder and exploslves (AcL
2233), flrearms and ammunlLlons (.u. 9), sale of realLy by non-
ChrlsLlans (Sec. 143, 8evlsed Adm. Code, 8.A. 4232)

8. Io||ow|ng Sa|es of Land Vo|d:
8y non-ChrlsLlan lf noL approved by rovlnclal Covernor per
Sec. 143 of 8evlsed AdmlnlsLraLlve Code. !S.FL.' 13 "#2)- #+
455(./&: =;C >"04 H=C B=CIND3
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
lrlar land wlLhouL consenL of SecreLary of AgrlculLure requlred
under AcL no. 1120. !4/#'&# 13 "(J2 "#2'-)9 "/2J: ,'F3: H<A
>"04 HC@ B;@@;DR ]%.# 13 "#2)- #+ 455(./&: H;H >"04 NH@
B;@@@D3
Made ln vlolaLlon of land reform laws declarlng LenanL-Llllers as
Lhe full owners of Lhe lands Lhey Lllled. !>%.F#) 13 Z%V.'-.'.:
HI@ >"04 H@? B;@@;D3
8eclalmed lands are of Lhe publlc domaln and cannoL, wlLhouL
congresslonal flaL, be sold, publlc or prlvaLe. U%&G()%(& \(13
42-G#)%-9 13 "#2)- #+ 455(./&: AHN >"04 NC@ B;@@<D3