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CnA1Lk 6: Consummat|on (Art|c|es
1493-1S06) and erformance of
Contract of Sa|e (Art|c|es 1S36-1S44,
1S82-1S90)

Lffects of the Contract When the 1h|ng So|d nas 8een Lost

Art|c|e 1493.
If at the t|me the contract of sa|e |s perfected, the th|ng wh|ch |s the
ob[ect of the contract has been ent|re|y |ost, the contract sha|| be
w|thout any effect.

8ut |f the th|ng shou|d have been |ost |n part on|y, the vendee may
choose between w|thdraw|ng from the contract and demand|ng the
rema|n|ng part, pay|ng |ts pr|ce |n proport|on to the tota| sum agreed
upon. (1460a)

Art|c|e 1494.
Where the part|es purport a sa|e of spec|f|c goods, and the goods
w|thout the know|edge of the se||er have per|shed |n part or have
who||y or |n a mater|a| part so deter|orated |n qua||ty as to be
substant|a||y changed |n character, the buyer may at h|s opt|on treat
the sa|e:

(1) As avo|ded, or

(2) As va||d |n a|| of the ex|st|ng goods or |n so much thereof as have
not deter|orated, and as b|nd|ng the buyer to pay the agreed pr|ce for
the goods |n wh|ch the ownersh|p w||| pass, |f the sa|e was d|v|s|b|e.
(n)

Cb||gat|ons of the Vendor

Art|c|e 149S.
1he vendor |s bound to transfer the ownersh|p of and de||ver, as we||
as warrant the th|ng wh|ch |s the ob[ect of the sa|e. (1461a)

Art|c|e 1496.
1he ownersh|p of the th|ng so|d |s acqu|red by the vendee from the
moment |t |s de||vered to h|m |n any of the ways spec|f|ed |n art|c|es
1497 to 1S01, or |n any other manner s|gn|fy|ng an agreement that the
possess|on |s transferred from the vendor to the vendee. (n)

Art|c|e 1497.
1he th|ng so|d sha|| be understood as de||vered, when |t |s p|aced |n
the contro| and possess|on of the vendee. (1462a)

Art|c|e 1498.
When the sa|e |s made through a pub||c |nstrument, the execut|on
thereof sha|| be equ|va|ent to the de||very of the th|ng wh|ch |s the
ob[ect of the contract, |f from the deed the contrary does not appear
or cannot c|ear|y be |nferred.

W|th regard to movab|e property, |ts de||very may a|so be made by the
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de||very of the keys of the p|ace or depos|tory where |t |s stored or
kept. (1463a)

Art|c|e 1499.
1he de||very of movab|e property may ||kew|se be made by the mere
consent or agreement of the contract|ng part|es, |f the th|ng so|d
cannot be transferred to the possess|on of the vendee at the t|me of
the sa|e, or |f the |atter a|ready had |t |n h|s possess|on for any other
reason. (1463a)

Art|c|e 1S00.
1here may a|so be trad|t|on const|tutum possessor|um. (n)

Art|c|e 1S01.
W|th respect to |ncorporea| property, the prov|s|ons of the f|rst
paragraph of art|c|e 1498 sha|| govern. In any other case where|n sa|d
prov|s|ons are not app||cab|e, the p|ac|ng of the t|t|es of ownersh|p |n
the possess|on of the vendee or the use by the vendee of h|s r|ghts,
w|th the vendor's consent, sha|| be understood as a de||very. (1464)

Art|c|e 1S02.
When goods are de||vered to the buyer "on sa|e or return" to g|ve the
buyer an opt|on to return the goods |nstead of pay|ng the pr|ce, the
ownersh|p passes to the buyer on de||very, but he may revest the
ownersh|p |n the se||er by return|ng or tender|ng the goods w|th|n the
t|me f|xed |n the contract, or, |f no t|me has been f|xed, w|th|n a
reasonab|e t|me. (n)

When goods are de||vered to the buyer on approva| or on tr|a| or on
sat|sfact|on, or other s|m||ar terms, the ownersh|p there|n passes to
the buyer:

(1) When he s|gn|f|es h|s approva| or acceptance to the se||er or does
any other act adopt|ng the transact|on,

(2) If he does not s|gn|fy h|s approva| or acceptance to the se||er, but
reta|ns the goods w|thout g|v|ng not|ce of re[ect|on, then |f a t|me has
been f|xed for the return of the goods, on the exp|rat|on of such t|me,
and, |f no t|me has been f|xed, on the exp|rat|on of a reasonab|e t|me.
What |s a reasonab|e t|me |s a quest|on of fact. (n)

Art|c|e 1S03.
When there |s a contract of sa|e of spec|f|c goods, the se||er may, by
the terms of the contract, reserve the r|ght of possess|on or ownersh|p
|n the goods unt|| certa|n cond|t|ons have been fu|f|||ed. 1he r|ght of
possess|on or ownersh|p may be thus reserved notw|thstand|ng the
de||very of the goods to the buyer or to a carr|er or other ba||ee for the
purpose of transm|ss|on to the buyer.

Where goods are sh|pped, and by the b||| of |ad|ng the goods are
de||verab|e to the se||er or h|s agent, or to the order of the se||er or of
h|s agent, the se||er thereby reserves the ownersh|p |n the goods. 8ut,
|f except for the form of the b||| of |ad|ng, the ownersh|p wou|d have
passed to the buyer on sh|pment of the goods, the se||er's property |n
the goods sha|| be deemed to be on|y for the purpose of secur|ng
performance by the buyer of h|s ob||gat|ons under the contract.

Where goods are sh|pped, and by the b||| of |ad|ng the goods are
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de||verab|e to order of the buyer or of h|s agent, but possess|on of the
b||| of |ad|ng |s reta|ned by the se||er or h|s agent, the se||er thereby
reserves a r|ght to the possess|on of the goods as aga|nst the buyer.

Where the se||er of goods draws on the buyer for the pr|ce and
transm|ts the b||| of exchange and b||| of |ad|ng together to the buyer
to secure acceptance or payment of the b||| of exchange, the buyer |s
bound to return the b||| of |ad|ng |f he does not honor the b||| of
exchange, and |f he wrongfu||y reta|ns the b||| of |ad|ng he acqu|res no
added r|ght thereby. If, however, the b||| of |ad|ng prov|des that the
goods are de||verab|e to the buyer or to the order of the buyer, or |s
|ndorsed |n b|ank, or to the buyer by the cons|gnee named there|n,
one who purchases |n good fa|th, for va|ue, the b||| of |ad|ng, or goods
from the buyer w||| obta|n the ownersh|p |n the goods, a|though the
b||| of exchange has not been honored, prov|ded that such purchaser
has rece|ved de||very of the b||| of |ad|ng |ndorsed by the cons|gnee
named there|n, or of the goods, w|thout not|ce of the facts mak|ng the
transfer wrongfu|. (n)

Art|c|e 1S04.
Un|ess otherw|se agreed, the goods rema|n at the se||er's r|sk unt|| the
ownersh|p there|n |s transferred to the buyer, but when the ownersh|p
there|n |s transferred to the buyer the goods are at the buyer's r|sk
whether actua| de||very has been made or not, except that:

(1) Where de||very of the goods has been made to the buyer or to a
ba||ee for the buyer, |n pursuance of the contract and the ownersh|p |n
the goods has been reta|ned by the se||er mere|y to secure
performance by the buyer of h|s ob||gat|ons under the contract, the
goods are at the buyer's r|sk from the t|me of such de||very,

(2) Where actua| de||very has been de|ayed through the fau|t of e|ther
the buyer or se||er the goods are at the r|sk of the party |n fau|t. (n)

Art|c|e 1S0S.
Sub[ect to the prov|s|ons of th|s 1|t|e, where goods are so|d by a
person who |s not the owner thereof, and who does not se|| them
under author|ty or w|th the consent of the owner, the buyer acqu|res
no better t|t|e to the goods than the se||er had, un|ess the owner of
the goods |s by h|s conduct prec|uded from deny|ng the se||er's
author|ty to se||.

Noth|ng |n th|s 1|t|e, however, sha|| affect:

(1) 1he prov|s|ons of any factors' act, record|ng |aws, or any other
prov|s|on of |aw enab||ng the apparent owner of goods to d|spose of
them as |f he were the true owner thereof,

(2) 1he va||d|ty of any contract of sa|e under statutory power of sa|e or
under the order of a court of competent [ur|sd|ct|on,

(3) urchases made |n a merchant's store, or |n fa|rs, or markets, |n
accordance w|th the Code of Commerce and spec|a| |aws. (n)

Art|c|e 1S06.
Where the se||er of goods has a vo|dab|e t|t|e thereto, but h|s t|t|e has
not been avo|ded at the t|me of the sa|e, the buyer acqu|res a good
t|t|e to the goods, prov|ded he buys them |n good fa|th, for va|ue, and
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w|thout not|ce of the se||er's defect of t|t|e. (n)

Art|c|e 1S36.
1he vendor |s not bound to de||ver the th|ng so|d |n case the vendee
shou|d |ose the r|ght to make use of the terms as prov|ded |n art|c|e
1198. (1467a)

Art|c|e 1S37.
1he vendor |s bound to de||ver the th|ng so|d and |ts access|ons and
accessor|es |n the cond|t|on |n wh|ch they were upon the perfect|on of
the contract.

A|| the fru|ts sha|| perta|n to the vendee from the day on wh|ch the
contract was perfected. (1468a)

Art|c|e 1S38.
In case of |oss, deter|orat|on or |mprovement of the th|ng before |ts
de||very, the ru|es |n art|c|e 1189 sha|| be observed, the vendor be|ng
cons|dered the debtor. (n)

Art|c|e 1S39.
1he ob||gat|on to de||ver the th|ng so|d |nc|udes that of p|ac|ng |n the
contro| of the vendee a|| that |s ment|oned |n the contract, |n
conform|ty w|th the fo||ow|ng ru|es:

If the sa|e of rea| estate shou|d be made w|th a statement of |ts area,
at the rate of a certa|n pr|ce for a un|t of measure or number, the
vendor sha|| be ob||ged to de||ver to the vendee, |f the |atter shou|d
demand |t, a|| that may have been stated |n the contract, but, shou|d
th|s be not poss|b|e, the vendee may choose between a proport|ona|
reduct|on of the pr|ce and the resc|ss|on of the contract, prov|ded that,
|n the |atter case, the |ack |n the area be not |ess than one-tenth of
that stated.

1he same sha|| be done, even when the area |s the same, |f any part of
the |mmovab|e |s not of the qua||ty spec|f|ed |n the contract.

1he resc|ss|on, |n th|s case, sha|| on|y take p|ace at the w||| of the
vendee, when the |nfer|or va|ue of the th|ng so|d exceeds one- tenth
of the pr|ce agreed upon.

Neverthe|ess, |f the vendee wou|d not have bought the |mmovab|e
had he known of |ts sma||er area of |nfer|or qua||ty, he may resc|nd the
sa|e. (1469a)

Art|c|e 1S40.
If, |n the case of the preced|ng art|c|e, there |s a greater area or
number |n the |mmovab|e than that stated |n the contract, the vendee
may accept the area |nc|uded |n the contract and re[ect the rest. If he
accepts the who|e area, he must pay for the same at the contract rate.
(1470a)

Art|c|e 1S41.
1he prov|s|ons of the two preced|ng art|c|es sha|| app|y to [ud|c|a|
sa|es. (n)

Art|c|e 1S42.
In the sa|e of rea| estate, made for a |ump sum and not at the rate of a
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certa|n sum for a un|t of measure or number, there sha|| be no
|ncrease or decrease of the pr|ce, a|though there be a greater or |ess
area or number than that stated |n the contract.

1he same ru|e sha|| be app||ed when two or more |mmovab|es as so|d
for a s|ng|e pr|ce, but |f, bes|des ment|on|ng the boundar|es, wh|ch |s
|nd|spensab|e |n every conveyance of rea| estate, |ts area or number
shou|d be des|gnated |n the contract, the vendor sha|| be bound to
de||ver a|| that |s |nc|uded w|th|n sa|d boundar|es, even when |t
exceeds the area or number spec|f|ed |n the contract, and, shou|d he
not be ab|e to do so, he sha|| suffer a reduct|on |n the pr|ce, |n
proport|on to what |s |ack|ng |n the area or number, un|ess the
contract |s resc|nded because the vendee does not accede to the
fa||ure to de||ver what has been st|pu|ated. (1471)

Art|c|e 1S43.
1he act|ons ar|s|ng from art|c|es 1S39 and 1S42 sha|| prescr|be |n s|x
months, counted from the day of de||very. (1472a)

Art|c|e 1S44.
If the same th|ng shou|d have been so|d to d|fferent vendees, the
ownersh|p sha|| be transferred to the person who may have f|rst taken
possess|on thereof |n good fa|th, |f |t shou|d be movab|e property.

Shou|d |t be |mmovab|e property, the ownersh|p sha|| be|ong to the
person acqu|r|ng |t who |n good fa|th f|rst recorded |t |n the keg|stry of
roperty.

Shou|d there be no |nscr|pt|on, the ownersh|p sha|| perta|n to the
person who |n good fa|th was f|rst |n the possess|on, and, |n the
absence thereof, to the person who presents the o|dest t|t|e, prov|ded
there |s good fa|th. (1473)

Cb||gat|ons of the Vendee

Art|c|e 1S82.
1he vendee |s bound to accept de||very and to pay the pr|ce of the
th|ng so|d at the t|me and p|ace st|pu|ated |n the
contract.

If the t|me and p|ace shou|d not have been st|pu|ated, the payment
must be made at the t|me and p|ace of the de||very of the th|ng so|d.
(1S00a)

Art|c|e 1S83.
Un|ess otherw|se agreed, the buyer of goods |s not bound to accept
de||very thereof by |nsta||ments.

Where there |s a contract of sa|e of goods to be de||vered by stated
|nsta|ments, wh|ch are to be separate|y pa|d for, and the se||er makes
defect|ve de||ver|es |n respect of one or more |nsta|ments, or the
buyer neg|ects or refuses w|thout [ust cause to take de||very of or pay
for one or more |nsta|ments, |t depends |n each case on the terms of
the contract and the c|rcumstances of the case, whether the breach of
contract |s so mater|a| as to [ust|fy the |n[ured party |n refus|ng to
proceed further and su|ng for damages for breach of the ent|re
contract, or whether the breach |s severab|e, g|v|ng r|se to a c|a|m for
compensat|on but not to a r|ght to treat the who|e contract as broken.
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(n)

Art|c|e 1S84.
Where goods are de||vered to the buyer, wh|ch he has not prev|ous|y
exam|ned, he |s not deemed to have accepted them un|ess and unt||
he has had a reasonab|e opportun|ty of exam|n|ng them for the
purpose of ascerta|n|ng whether they are |n conform|ty w|th the
contract |f there |s no st|pu|at|on to the contrary.

Un|ess otherw|se agreed, when the se||er tenders de||very of goods to
the buyer, he |s bound, on request, to afford the buyer a reasonab|e
opportun|ty of exam|n|ng the goods for the purpose of ascerta|n|ng
whether they are |n conform|ty w|th the contract.

Where goods are de||vered to a carr|er by the se||er, |n accordance
w|th an order from or agreement w|th the buyer, upon the terms that
the goods sha|| not be de||vered by the carr|er to the buyer unt|| he
has pa|d the pr|ce, whether such terms are |nd|cated by mark|ng the
goods w|th the words "co||ect on de||very," or otherw|se, the buyer |s
not ent|t|ed to exam|ne the goods before the payment of the pr|ce, |n
the absence of agreement or usage of trade perm|tt|ng such
exam|nat|on. (n)

Art|c|e 1S8S.
1he buyer |s deemed to have accepted the goods when he |nt|mates to
the se||er that he has accepted them, or when the goods have been
de||vered to h|m, and he does any act |n re|at|on to them wh|ch |s
|ncons|stent w|th the ownersh|p of the se||er, or when, after the |apse
of a reasonab|e t|me, he reta|ns the goods w|thout |nt|mat|ng to the
se||er that he has re[ected them. (n)

Art|c|e 1S86.
In the absence of express or |mp||ed agreement of the part|es,
acceptance of the goods by the buyer sha|| not d|scharge the se||er
from ||ab|||ty |n damages or other |ega| remedy for breach of any
prom|se or warranty |n the contract of sa|e. 8ut, |f, after acceptance of
the goods, the buyer fa||s to g|ve not|ce to the se||er of the breach |n
any prom|se of warranty w|th|n a reasonab|e t|me after the buyer
knows, or ought to know of such breach, the se||er sha|| not be ||ab|e
therefor. (n)

Art|c|e 1S87.
Un|ess otherw|se agreed, where goods are de||vered to the buyer, and
he refuses to accept them, hav|ng the r|ght so to do, he |s not bound to
return them to the se||er, but |t |s suff|c|ent |f he not|f|es the se||er that
he refuses to accept them. If he vo|untar||y const|tutes h|mse|f a
depos|tary thereof, he sha|| be ||ab|e as such. (n)

Art|c|e 1S88.
If there |s no st|pu|at|on as spec|f|ed |n the f|rst paragraph of art|c|e
1S23, when the buyer's refusa| to accept the goods |s w|thout [ust
cause, the t|t|e thereto passes to h|m from the moment they are
p|aced at h|s d|sposa|. (n)

Art|c|e 1S89.
1he vendee sha|| owe |nterest for the per|od between the de||very of
the th|ng and the payment of the pr|ce, |n the fo||ow|ng three cases:

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(1) Shou|d |t have been so st|pu|ated,

(2) Shou|d the th|ng so|d and de||vered produce fru|ts or |ncome,

(3) Shou|d he be |n defau|t, from the t|me of [ud|c|a| or extra[ud|c|a|
demand for the payment of the pr|ce. (1S01a)

Art|c|e 1S90.
Shou|d the vendee be d|sturbed |n the possess|on or ownersh|p of the
th|ng acqu|red, or shou|d he have reasonab|e grounds to fear such
d|sturbance, by a v|nd|catory act|on or a forec|osure of mortgage, he
may suspend the payment of the pr|ce unt|| the vendor has caused the
d|sturbance or danger to cease, un|ess the |atter g|ves secur|ty for the
return of the pr|ce |n a proper case, or |t has been st|pu|ated that,
notw|thstand|ng any such cont|ngency, the vendee sha|| be bound to
make the payment. A mere act of trespass sha|| not author|ze the
suspens|on of the payment of the pr|ce. (1S02a)

I. Cb||gat|ons of Se||er

A. reserve Sub[ect Matter (Art|c|e 1163)

Art|c|e 1163.
Lvery person ob||ged to g|ve someth|ng |s a|so ob||ged to take care of |t
w|th the proper d|||gence of a good father of a fam||y, un|ess the |aw
or the st|pu|at|on of the part|es requ|res another standard of care.
(1094a)

ln Lhe sale of a deLermlnaLe ob[ecL, Lhe obllgaLlon of Laklng care
of Lhe sub[ecL maLLer arlses upon perfecLlon, even before
dellvery. CLherwlse, Lhe seller ls llable for breach.
lL ls an obllgaLlon Lo do."

8. De||ver w|th Iru|ts and Accessor|es (Art|c|es 1164, 1166, 149S, 1S37)

Art|c|e 1164.
1he cred|tor has a r|ght to the fru|ts of the th|ng from the t|me the
ob||gat|on to de||ver |t ar|ses. nowever, he sha|| acqu|re no rea| r|ght
over |t unt|| the same has been de||vered to h|m. (109S)

Art|c|e 1166.
1he ob||gat|on to g|ve a determ|nate th|ng |nc|udes that of de||ver|ng
a|| |ts access|ons and accessor|es, even though they may not have been
ment|oned. (1097a)

ln a sale lnvolvlng a deLermlnaLe sub[ecL maLLer, even prlor Lo
dellvery of ownershlp Lhereof Lo Lhe buyer, Lhe buyer already
has cerLaln rlghLs enforceable agalnsL Lhe seller.
Slnce Lhe sub[ecL maLLer ls lnLended for dellvery Lo Lhe buyer
from Lhe polnL of perfecLlon of Lhe sale, Lhen necessarlly Lhe
accessorles and frulLs musL from Lhen on be held for Lhe
accounL of Lhe buyer.

C. De||ver the Sub[ect Matter (Art|c|e 1477)

Art|c|e 1477.
1he ownersh|p of the th|ng so|d sha|| be transferred to the vendee
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upon the actua| or construct|ve de||very thereof. (n)

1. Lega| rem|ses for Doctr|nes on 1rad|t|on
When Lhe sale ls vold or flcLlLlous, no valld LlLle over Lhe sub[ecL
maLLer can be conveyed Lo Lhe buyer even wlLh dellvery. Nemo
potest olsl pooJ Je jote potest - No moo coo Jo ooytbloq except
wbot be coo Jo lowfolly. !"#$%&#' )*+$, -$./ 01 2*3#4 *5
677&$,'8 9:; <2)6 => ?=;;@A1
When seller had no ownershlp over Lhe sub[ecL maLLer aL Lhe
Llme of dellvery, no valld LlLle can pass ln favor of Lhe buyer.
Nemo Jot pooJ ooo bobet - No moo coo qlve tbot wblcb be
Joes oot bove. !"'$B 01 2*3#4 *5 677&$,'8 C:: <2)6 C9D ?9EE=A1
=

A forged deed of sale ls null and vold and conveys no LlLle. lL ls a
well-seLLled prlnclple LhaL no one can glve whaL one does noL
have, oemo Jot pooJ ooo bobet. Cne can sell only whaL one
owns or ls auLhorlzed Lo sell, and Lhe buyer can acqulre no more
rlghL Lhan whaL Lhe seller can Lransfer legally1 !)35,*& 01 -3#F*'8
>@@ <2)6 9:D8 9@9G9@C ?9EE;A1
ArLlcle 1439 of Lhe Clvll Code on conLracLs of sale speclflcally
requlres LhaL Lhe vendor musL have ownershlp of Lhe properLy
aL Lhe Llme lL ls dellvered." !H&B#' *5 6#43#* )&+&' 01 <*II*G
-&,4#$.8 >@9 <2)6 9==8 99EG99= ?9EEJA1
A conLracL Lo sell, or a condlLlon conLracL of sale where Lhe
suspenslve condlLlon has noL happened, even when found ln a
publlc documenL, cannoL be LreaLed as consLlLuLlng consLrucLlve
dellvery, especlally when from Lhe face of Lhe lnsLrumenL lL ls

1
1ooqollo v. coott of Appeols, 371 SC8A 49 (2001), nelts of Attoto keyes v.
5occo-8elttoo, 372 SC8A 211 (2008).
shown LhaL Lhe seller was noL yeL Lhe owner of Lhe properLy
and was only expecLlng Lo lnherlL lL." (aL p. 221A H&B#' *5 6#43#*
)&+&' 01 <*II*G-&,4#$.8 >@9 <2)6 9== ?9EEJA1
Cne can sell only whaL one owns or ls auLhorlzed Lo sell, and Lhe
buyer can acqulre no more Lhan whaL Lhe seller can Lransfer
legally. K$I,$F 01 L$I$MB,BF8 >:E <2)6 =C@ ?9EEJA1
A Lax declaraLlon, by lLself, ls noL consldered concluslve
evldence of ownershlp - lL ls merely an loJlclom of a clalm of
ownershlp1 K$I,$F 01 L$I$MB,BF8 >:E <2)6 =C@ ?9EEJA1
neverLheless when aL Lhe Llme of dellvery Lhere ls no proof LhaL
Lhe seller had ownershlp and as ln facL Lhe Lax declaraLlon Lo Lhe
sub[ecL properLy was ln Lhe name of anoLher person, Lhen Lhere
was no Lransfer of ownershlp by dellvery1 !H&B#' *5 <&0&#B.$
<$. LBF3&, 01 2*3#4 *5 677&$,'8 C:D <2)6 >9C ?9EE=A1

2. Genera| Doctr|nes on 1rad|t|on, Whether Actua| or
Construct|ve:
1ransfer of ownershlp ls effecLed by dellvery, acLual or
consLrucLlve.
lf Lhere ls no express sLlpulaLlon LhaL LlLle shall noL pass unLll
paymenL of prlce, and Lhe Lhlng sold has been dellvered,
ownershlp passes from Lhe momenL Lhe Lhlng sold ls placed ln
Lhe possesslon and conLrol of Lhe buyer. aymenL of prlce does
noL deLermlne Lhe effecL of dellvery1 N3&.O,& P <4#&B55 01
Q$4'*. P 2*18 =C RMB,1 9: ?=;E;A
o lL may be sLlpulaLed LhaL ownershlp ln Lhe Lhlng shall
noL pass Lo buyer unLll he has fully pald prlce (ArLlcle
1478).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o ln Lhe absence of an express sLlpulaLlon Lo Lhe conLrary,
paymenL of purchase prlce of Lhe goods ls noL a
condlLlon precedenL Lo Lhe Lransfer of LlLle Lo Lhe buyer,
buL LlLle passes by Lhe dellvery of Lhe goods. !RMB,1
<3S3#S$. K&01 2*#71 01 63%B4*# T&.&#$,8 :C <2)6 C;@
?=;@>A1
=

o lallure of Lhe buyer Lo make good Lhe prlce does noL, ln
law, cause Lhe ownershlp Lo revesL Lo Lhe seller unless
Lhe bllaLeral conLracL of sale ls flrsL resclnded or
resolved pursuanL Lo ArLlcle 1191. !-$,$4S$4 01 2*3#4 *5
677&$,'8 9:= <2)6 =9J ?=;;:A1
uellvery Lransfers ownershlp lpso [ure, wlLhouL pre[udlce Lo Lhe
rlghL of Lhe seller Lo clalm paymenL of Lhe prlce. UI&V*8 R&#&O P
2*1 01 W.4X, -$./B.F 2*#718 C@ RMB,1 :C= ?=;=JA1
o ln Lhe absence of such sLlpulaLlon Lo Lhe conLrary,
LradlLlon produces lLs naLural effecLs ln law, mosL
lmporLanL of whlch belng conveyance of ownershlp,
wlLhouL pre[udlce Lo rlghL of Lhe seller Lo clalm paymenL
of Lhe prlce. !Y#*B,$. 01 R$. U#B&.4$, <MB77B.F 2*18 =9
<2)6 9@: ?=;:DA1
9

uellvery conLemplaLes Lhe absoluLe glvlng up of Lhe conLrol
and cusLody of Lhe properLy on Lhe parL of Lhe vendor, and Lhe
assumpLlon of Lhe same by Lhe vendee. Noo ooJls poctls seJ
ttoJltlooe Jomlolo tetom ttoosfetootot. And Lhere ls sald Lo be
dellvery lf and when Lhe Lhlng sold ls placed ln Lhe conLrol and

1
Ocompo v. coott of Appeols, 233 SC8A 331 (1994).
2
koeozle & 5ttelff v. wotsoo & co., 13 hll. 26 (1909), Ocejo, letez & co. v. lot'l
8ookloq cotp., 37 hll. 631 (1918).
possesslon of Lhe vendee." Z[3$4*#B$, )&$,4+ K&01 W.I1 01
L$+5$B# "M&$4&#8 W.I18 C@E <2)6 >: ?9EE=A1
o uellvery" as used ln Lhe Law on Sales refers Lo Lhe
concurrenL Lransfer of Lwo Lhlngs: (1) possesslon and (2)
ownershlp. lf Lhe vendee ls placed ln acLual posseslon of
Lhe properLy, buL by agreemenL of Lhe parLles
ownershlp of Lhe same ls reLalned by Lhe vendor unLll
Lhe vendee has fully pald Lhe prlce, Lhe mere Lransfer of
Lhe posseslon of Lhe properLy sub[ecL of Lhe sale ls noL
Lhe dellvery" conLemplaLed ln Lhe Law on Sales or as
used ln ArLlcle 1343 of Lhe Clvll Code. 2&S3 QB.,$.%
K&01 2*#71 01 U.F <B$* H3$8 >JJ <2)6 =9E ?9EE;A1
Slnce dellvery of sub[ecL maLLer of sale ls an obllgaLlon on Lhe
parL of Lhe seller, Lhe accepLance Lhereof by Lhe buyer ls oot a
condlLlon for Lhe compleLeness of dellvery. !\$ Y3&#O$ 01 2*3#4
*5 677&$,'8 9C <2)6 =9=@ ?=;:JA1
A conLracL Lo sell, or a condlLlon conLracL of sale where Lhe
suspenslve condlLlon has noL happened, even when found ln a
publlc documenL, cannoL be LreaLed as consLlLuLlng consLrucLlve
dellvery, especlally when from Lhe face of Lhe lnsLrumenL lL ls
shown LhaL Lhe seller was noL yeL Lhe owner of Lhe properLy
and was only expecLlng Lo lnherlL lL." !H&B#' *5 6#43#* )&+&' 01
<*II*G-&,4#$.8 >@9 <2)6 9==8 99= ?9EEJA1

3. Lssence of 1rad|t|on (Art|c|e 1496)
1here ls dellvery lf and when Lhe Lhlng sold ls placed ln Lhe
conLrol and possesslon of Lhe vendee. uellvery ls a composlLe
acL, ln whlch boLh parLles musL [oln and Lhe mlnds of boLh
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
parLles concur. Z[3$4*#B$, )&$,4+ K&018 W.I1 01 L$+5$B# "M&$4&#8
W.I1 C@E <2)6 >: ?9EE=A1
o 1radlLlon produces lLs legal consequences from Lhe facL
LhaL dellvery ls effecLed pursuanL Lo a valld sale. 1here ls
no Lransfer of ownershlp by Lhe execuLlon of a deed of
sale merely lnLended Lo accommodaLe Lhe buyer Lo
enable hlm Lo generaLe funds for hls buslness.
1he crlLlcal facLor ln Lhe dlfferenL modes of dellvery, whlch glves
legal effecL Lo Lhe acL, ls Lhe acLual lnLenLlon of Lhe vendor Lo
dellver, and lLs accepLance by Lhe vendee. WlLhouL LhaL
lnLenLlon, Lhere ls no LradlLlon. <$.4*' 01 <$.4*'8 C@E <2)6 >:
1he legal effecLs of Lhe parLles' lnLenLlon musL be gauged aL Lhe
polnL of perfecLlon by whlch Lhe obllgaLlon Lo dellver Lhe
sub[ecL maLLer ls creaLed.
o Was Lhere muLual lnLenLlon and agreemenL Lo Lransfer
Lhe ownershlp of Lhe sub[ecL maLLer
! lf yes, Lhere ls a valld sale.
! lf no, Lhe sale ls slmulaLed, and Lherefore vold.
2 Iactors of the r|nc|p|e of 1rad|t|on
a. AccepLance (alLhough an obllgaLlon of Lhe buyer) ls noL
essenLlal for dellvery (seller) Lo achleve lLs legal effecLs.
b. An express lnLenLlon on Lhe maLLer by Lhe parLles Lo a
sale, aL Lhe polnL of dellvery ls noL essenLlal for LradlLlon
Lo produce lLs legal consequences.

4. hys|ca| De||very (Art|c|e 1497)
AlLhough possesslon ls Lhe besL gauge when Lhere ls conLrol,
noneLheless conLrol can Lake oLher forms oLher Lhan acLual
physlcal possesslon.
o ln a case, Lhe loL was consldered Lo be ln Lhe buyer's
conLrol when Lhe buyer subsequenLly flled an e[ecLmenL
sulL agalnsL someone. R*]&# 2*^^&#IB$, $.% W.%3'4#B$,
2*#71 01 2*3#4 *5 677&$,'8 9@D <2)6 >;@ ?=;;@A1
lL ls noL necessary LhaL seller hlmself dellvers LlLle Lo Lhe buyer
because Lhe Lhlng sold ls undersLood as dellvered when lL ls
placed ln conLrol and possesslon of buyer. 1hus, when sellers
Lhemselves lnLroduced Lhe LenanL Lo Lhe buyer as Lhe new
owners of Lhe land, and from LhaL Llme on Lhe buyer acLed as
landlord Lhereof, Lhere was dellvery LhaL Lransferred LlLle Lo Lhe
buyer. !6,5#&%* 01 -*##$'8 DED <2)6 =D> ?9EECA1

S. Construct|ve De||very: Lxecut|on of a ub||c Instrument (Art|c|e
1498)
1he essence of mosL forms of consLrucLlve dellvery ls Lhe
exlsLence of an agreemenL beLween Lhe seller and Lhe buyer,
and LhaL Lhe laLLer ls undersLood Lo have conLrol of Lhe sub[ecL
maLLer of Lhe sale.
As to Movab|es (Art|c|es 1498-1499, 1S13-1S14)
o When lL comes Lo a Lhlrd-parLy and Lhe lssue cenLers on
Lhe LlLle or ownershlp of Lhe sub[ecL maLLer,
consLrucLlve dellvery by Lhe execuLlon of a publlc
lnsLrumenL would produce Lhe effecL of LradlLlon, buL
only lnsofar as LlLle ls concerned, provlded LhaL aL Lhe
Llme of Lhe execuLlon Lhere was no legal lmpedlmenL on
Lhe parL of Lhe seller Lo Lransfer LlLle Lo Lhe buyer, even
lf aL Lhe Llme of sale, conLrol of possesslon of Lhe
sub[ecL maLLer was noL ln Lhe hands of Lhe seller. K+8 _#1
01 2*3#4 *5 677&$,', =;J <2)6 J9: ?=;;=A1
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


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

K+8 _#1 01 2*3#4 *5 677&$,'

Iacts: Wllfredo uy obLalned a loan from Llbra Lo buy a Lruck and LracLor,
whlch were morLgaged Lo Llbra as securlLy. erfecLo uy purchased Lhe
LracLor from Wllfredo and assumed Lhe morLgage debL. 1he LracLor was
ln Llbra's possesslon because Wllfredo falled Lo pay Lhe amorLlzaLlon.
erfecLo offered Lo pay Lhe full amounL buL Llbra refused slnce Lhe loan
was obLalned noL only for Lhe LracLor buL Lhe Lruck as well. 1here was a
collecLlon case pendlng flled by Celac 1radlng agalnsL Wllfredo. 1he
LracLor was selzed and sold aL a publlc aucLlon where Celac 1radlng was
Lhe lone bldder. Celac 1radlng sold Lhe LracLor Lo AnLonlo Conzales.

Issue:
1. WheLher or noL Lhere was consLrucLlve dellvery aL Lhe Llme of
Lhe execuLlon of Lhe deed of sale ln favor erfecLo. " ?LS
2. WheLher or noL Wllfredo musL flrsL have conLrol and possesslon
of Lhe Lhlng before he could Lransfer ownershlp by consLrucLlve
dellvery. " nC

ne|d: ArLlcle 1496 sLaLes LhaL Lhe ownershlp of Lhe Lhlng sold ls acqulred
by Lhe vendee from Lhe momenL lL ls dellvered Lo hlm ln any of Lhe ways
speclfled ln ArLlcle 1497- 1301 or ln any oLher manner slgnlfylng an
agreemenL LhaL Lhe possesslon ls Lransferred from Lhe vendor Lo Lhe
vendee. AlLhough acLual dellvery of Lhe LracLor could noL be made,
Lhere was consLrucLlve dellvery already upon Lhe execuLlon of Lhe publlc
lnsLrumenL pursuanL Lo ArLlcle 1498 and upon Lhe consenL or
agreemenL of Lhe parLles when Lhe Lhlng sold cannoL be lmmedlaLely
Lransferred Lo Lhe possesslon of Lhe vendee

Doctr|ne:

o Where lL ls sLlpulaLed LhaL dellverles musL be made Lo
Lhe buyer or hls duly auLhorlzed represenLaLlve named
ln Lhe conLracLs, Lhe seller ls under obllgaLlon Lo dellver
ln accordance wlLh such lnsLrucLlons. !\$F*. 01 H**0&.
2*^$,I* W.%3'4#B&'8 W.I18 CD; <2)6 C:C ?9EE=A1
o LxecuLlon by supposed buyers of a chaLLel morLgage
over sub[ecL vehlcle ln favor of Lhe flnanclng company
does noL mean LhaL ownershlp had been Lransferred Lo
Lhem, for dellvery musL be on Lhe parL of Lhe seller.
!`.B*. L*4*# 2*#71 01 2*3#4 *5 677&$,'8 C:= <2)6 >E:
?9EE=A1
o nelLher lssuance of an lnvolce, whlch ls noL a documenL
of LlLle !R1"1 2&#.$ 2*#71 01 2*3#4 *5 677&$,'8 99= <2)6
=; ?=;;CA8
=
nor of Lhe reglsLraLlon cerLlflcaLe of vehlcle
!`.B*. L*4*# 2*#71 01 2*3#4 *5 677&$,'8 C:= <2)6 >E:
?9EE=A8
9
would consLlLuLe consLrucLlve dellvery.
As to Immovab|es (Art|c|e 1498)
o !urlsprudence has held LhaL a noLarlzed deed of sale has
Lwo funcLlons:
l. lL operaLes as a formal or symbollc dellvery of
Lhe properLy sold.
ll. lL auLhorlzes Lhe buyer Lo use Lhe documenL as
proof of ownershlp.

1
Notkls ulsttlbotots v. coott of Appeols, 193 SC8A 694 (1991).
2
Abooo v. Cotclo, 14 SC8A 739 (1963), 5ootos v. 5ootos, 366 SC8A 393 (2001).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o ConsLrucLlve dellvery has Lhe same legal effecL as acLual
or physlcal dellvery. L3.BIB7$,B4+ *5 aBI4*#B$' 01 2*3#4
*5 677&$,'8 =D; <2)6 C= ?=;J@A
! Where deed of sale or any agreemenL
analogous Lo a deed of sale, ls made Lhrough a
publlc lnsLrumenL, lLs execuLlon ls equlvalenL Lo
Lhe dellvery of Lhe properLy. 2$*BS&'8 _#1 01
2$*BS&'GR$.4*V$8 D;: <2)6 9@C ?9EE:A1
=

! under ArLlcle 1498, Lhe mere execuLlon of Lhe
deed of conveyance ln a publlc lnsLrumenL ls
equlvalenL Lo Lhe dellvery of Lhe properLy, and
LhaL prlor physlcal dellvery or possesslon ls noL
legally requlred, slnce ownershlp and
possesslon are Lwo enLlrely dlfferenL legal
concepLs. noLwlLhsLandlng Lhe presence of
lllegal occupanLs on Lhe sub[ecL properLy,
Lransfer of ownershlp by symbollc dellvery
under ArLlcle 1498 can sLlll be effecLed Lhrough
Lhe execuLlon of Lhe deed of conveyance.
!<$SB* 01 W.4&#.$4B*.$, 2*#7*#$4& -$./8 C:D
<2)6 CJ> ?9EE=A1
o As a general rule, when Lhe sale ls made Lhrough a
publlc lnsLrumenL, Lhe execuLlon Lhereof shall be
equlvalenL Lo Lhe dellvery of Lhe Lhlng whlch ls Lhe
ob[ecL of Lhe conLracL, lf from Lhe deed Lhe conLrary
does noL appear or cannoL clearly be lnferred. ln order
Lhe execuLlon of a publlc lnsLrumenL Lo effecL LradlLlon,

1
1otloq v. Motcello, 319 SC8A 79 (2007), ue leoo v. Ooq, 611 SC8A 381 (2010).
Lhe purchaser musL be placed ln conLrol of Lhe Lhlng
sold. A person who does noL have acLual possesslon of
Lhe Lhlng sold cannoL Lransfer consLrucLlve possesslon
by Lhe execuLlon and dellvery of a publlc lnsLrumenL.
6''&4 R#B0$4BO$4B*. "#3'4 01 "1_1 Z.4&#7#B'&'8 >J@ <2)6
DJ= ?9EE;A1
! 1here ls noLhlng ln ArLlcle 1498 LhaL provldes
LhaL execuLlon of a deed of sale ls a concluslve
presumpLlon of dellvery of possesslon,
presumpLlve dellvery can be negaLed by Lhe
fallure of Lhe vendee Lo Lake acLual possesslon
of Lhe land or Lhe conLlnued en[oymenL of
possesslon by Lhe vendor. <$.4*' 01 <$.4*'8 C::
<2)6 C;> ?9EE=A.
2


<$.4*' 01 <$.4*'

Iacts: !esus and 8osalla owned a loL wlLh a 4-door aparLmenL. 1hey sold
Lhrough a publlc lnsLrumenL Lhe sald properLy Lo Lhelr chlldren, Salvador
and 8osa-who sold her share Lo Salvador as well. noneLheless, ln splLe
of Lhe sale, 8osalla remalned ln possesslon and conLrol over Lhe
properLy. !esus, 8osalla and Salvador dled. Zenalda, clalmlng Lo be
Salvador's helr, demanded renL from Lhe LenanLs. 1he oLher chlldren of
!esus and 8osalla flled a case for reconveyance averrlng LhaL Lhe sale Lo
Salvador was flcLlLlous and done merely Lo accommodaLe hlm.


2
poototlol keolty uev. loc. v. Moyfolt 1beotet, loc., 370 SC8A 36 (2001),
oqteso v. ue lo ctoz, 401 SC8A 217 (2003), 1eo lotty keolty ooJ uev. cotp. v.
ctoz, 410 SC8A 484 (2003), copoyoc v. ue 5olos, 304 SC8A 176 (2006).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
Issue: WheLher or noL a sale Lhrough a publlc lnsLrumenL LanLamounL Lo
dellvery of Lhe Lhlng sold.

ne|d: nC. 1here ls noLhlng ln ArLlcle 1498 LhaL provldes LhaL execuLlon
of a deed of sale ls a concluslve presumpLlon of dellvery of possesslon,
presumpLlve dellvery can be negaLed by Lhe fallure of Lhe vendee Lo
Lake acLual possesslon of Lhe land or Lhe conLlnued en[oymenL of
possesslon by Lhe vendor. lor Lhe execuLlon of a publlc lnsLrumenL Lo
effecL LradlLlon, Lhe purchaser musL be placed ln conLrol of Lhe Lhlng
sold. 1o effecL dellvery, Lhere musL be Lhe acLual lnLenLlon of Lhe vendor
Lo dellver, and lLs accepLance by Lhe vendee

! 1he presumpLlve dellvery by Lhe execuLlon of a
publlc lnsLrumenL can be negaLed by Lhe fallure
of Lhe vendee Lo Lake acLual possesslon of Lhe
land sold. 2&S3 QB.,$.% K&01 2*#71 01 U.F <B$*
H3$8 >JJ <2)6 =9E ?9EE;A1
o lssuance of an acknowledgmenL recelpL of parLlal
paymenL, when lL ls noL a publlc lnsLrumenL does noL
convey LlLle. !<$. \*#&.O* K&01 2*#71 01 2*3#4 *5
677&$,'8 DD; <2)6 ;; ?9EE>A1
o Cases where execut|on of pub||c |nstrument cover|ng
va||d sa|es do not produce the effects of trad|t|on:
a. When Lhere ls a conLrary sLlpulaLlon. RMB,1 <3S3#S$.
K&01 01 63%B4*#8 :C <2)6 C;@ ?=;@>A
b. AL Lhe Llme of Lhe execuLlon of Lhe publlc lnsLrumenL,
Lhe sub[ecL maLLer was noL sub[ecL Lo Lhe conLrol of Lhe
seller 6%%B'*. 01 Y&,B!, CJ RMB,1 DED ?=;=JA,

6%%B'*. 01 Y&,B!

Iacts: Spouses Marclana lellx and 8alblno 1loco boughL 4 parcels of
land from A. A. Addlson. lellx pald aL Lhe Llme of execuLlon 3000 and
Lhe manner of paymenL for subsequenL lnsLallmenLs were sLlpulaLed by
Lhe parLles. 1he conLracL also provlded for a sLlpulaLlon for resclsslon
wlLhln 1 year from Lhe lssuance of LlLle Lo Lhe properLy, and shall effecL
resLlLuLlon among Lhe parLles. Addlson flled a sulL ln Lhe Cll of Manlla
clalmlng Lhe flrsL lnsLallmenL of 2000. uefendanLs conLesLed LhaL Lhe
properLy was noL dellvered, hence Lhey asked for a refund.

Issue: WheLher or noL Lhere was dellvery and, Lherefore, a Lransfer of
ownershlp of Lhe Lhlng sold.

ne|d: nC. 1he Lhlng ls consldered Lo be dellvered when lL ls placed "ln
Lhe hands and possesslon of Lhe vendee." (ArLlcle 1462). lL ls Lrue LhaL
Lhe same arLlcle declares LhaL Lhe execuLlon of a publlc lnsLrumenLs ls
equlvalenL Lo Lhe dellvery of Lhe Lhlng whlch ls Lhe ob[ecL of Lhe
conLracL, buL, ln order LhaL Lhls symbollc dellvery may produce Lhe
effecL of LradlLlon, lL ls necessary LhaL Lhe vendor shall have had such
conLrol over Lhe Lhlng sold LhaL, aL Lhe momenL of Lhe sale, lLs maLerlal
dellvery could have been made. lL ls noL enough Lo confer upon Lhe
purchaser Lhe ownershlp and Lhe rlghL of possesslon. 1he Lhlng sold
musL be placed ln hls conLrol.

Doctr|ne:

! Powever, lf Lhere was an express agreemenL
LhaL Lhe buyer had Lo Lake necessary sLeps Lo
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
obLaln maLerlal possesslon, and lL was proven
LhaL Lhe buyer knew Lhe sub[ecL maLLer Lo be ln
possesslon of a Lhlrd parLy, such agreemenL ls
valld. 1he seller ls deemed Lo have complled
wlLh hls obllgaLlon Lo dellver by Lhe execuLlon of
Lhe publlc lnsLrumenL
c. Genera| ku|e: noL only musL Lhe seller have conLrol aL
Lhe execuLlon of Lhe lnsLrumenL, such conLrol or ablllLy
Lo Lransfer physlcal possesslon musL subslsL for a
reasonable lengLh of Llme. K$.F3B,$. 01 W.4&#^&%B$4&
677&,,$4& 2*3#4, =:J <2)6 99 ?=;JJAb R$'$F3B 01
aB,,$S,$.I$8 :J <2)6 =J ?=;@>A.

K$.F3B,$. 01 W.4&#^&%B$4& 677&,,$4& 2*3#4

Iacts: Apolonla flled a complalnL agalnsL uangullan for recovery of Lwo
loLs. She clalmed Lo have purchased Lhese loLs from uomlngo Melad and
moved ouL because uangullan asked lf he could culLlvaLe Lhe lands.
uomlngo clalms uomlngo slgned prlvaLe lnsLrumenLs conveylng sald
properLles on Lhe undersLandlng LhaL Lhe laLLer would Lake care of Lhe
granLor and arrange for hls burlal.

Issue: Who has a beLLer clalm Lo Lhe properLy?

ne|d: uACulLAn. AL Lhe onseL, Lhe donaLlon ln favor of uangullan was
valld even Lhough embodled ln a prlvaLe lnsLrumenL, because lL was an
onerous donaLlon. 1he deed of sale presenLed by Apolonla was also
susplclous. lL was only 3 years old and Lhe conslderaLlon was pald for by
her moLher. Assumlng LhaL lL was valld, sLlll Lhe presumpLlve dellvery ls
overcome by Lhe facL LhaL she falled Lo Lake possesslon of Lhe properLy.
Cwnershlp, afLer all, ls noL Lransferred by mere sLlpulaLlon buLby acLual
and adverse possesslon. She even Lransferred Lhe same Lo uangullan
possesslon of Lhe same. She cannoL have a beLLer rlghL ln Lhls case Lhan
uangullan.

Doctr|ne:

R$'$F3B 01 aB,,$S,$.I$

Iacts: asagul purchased a parcel of land form Lhe 8ocar Spouses for
2,800, whlch was embodled ln a publlc lnsLrumenL. 1hey falled Lo Lake
possesslon of Lhe properLy because Lhe vlllablancas lllegally Look
possesslon of Lhe properLy and harvesLed Lhe coconuLs Lhereln. 1hus,
asagul flled a case for e[ecLmenL before Lhe Cll. 1he 8ocar spouses
were llkewlse lmpleaded. 1he laLLer conLesLed LhaL Lhe case should be
dlsmlssed because Lhe Cll dld noL have [urlsdlcLlon over forclble enLry
cases.

lssue: WheLher or noL Lhls ls a case of forclble enLry.

ne|d: nC. 1he case was noL for forclble enLry because Lhere was no
allegaLlon LhaL asagul was ln prlor physlcal possesslon of Lhe land and
LhaL Lhe vlllablancas, Lhrough force, sLealLh, or LhreaL, deprlved Lhem
Lhereof. Whlle Lhe sale was made Lhrough a publlc documenL ls
equlvalenL Lo dellvery, Lhls presumpLlon only holds Lrue lf Lhere ls no
lmpedlmenL Lo Lhe possesslon of Lhe purchaser. Such ls noL Lhe case
here. Slnce asagul had noL yeL acqulred physlcal possesslon of Lhe land,
Lhe case was noL one for forclble enLry and Lhe Cll (noL munlclpal
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


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

1he seller musL have acLual conLrol of Lhe ob[ecL of sale aL Lhe Llme of
Lhe execuLlon of Lhe lnsLrumenL, and such conLrol/ablllLy Lo Lransfer
physlcal possesslon musL subslsL for a reasonable amounL of Llme afLer
Lhe execuLlon of Lhe lnsLrumenL. asagul had noL yeL acqulred physlcal
possesslon of Lhe land because no dellvery was ever made by Lhe seller,
even by consLrucLlve dellvery LhaL proves acLual possesslon and conLrol.

Doctr|ne:

! 1hls ls an lmporLanL lngredlenL for consLrucLlve
dellvery, oLherwlse, Lhe execuLlon of a publlc
lnsLrumenL, as a mode of dellvery, would creaLe
undue burden on Lhe buyer, who would be
compelled Lo llLerally [ump" lnLo Lhe
possesslon of Lhe sub[ecL maLLer soon afLer
slgnlng Lhe lnsLrumenL, for he would Lhen
obLaln no remedy from Lhe seller
d. Lxcept|on: When buyer assumes Lhe rlsks of ownershlp
and possesslon. R*]&# 2*^^&#IB$, $.% W.%3'4#B$, 2*#71
01 2*3#4 *5 677&$,'8 274 SCkA S97 (1997).

R*]&# 2*^^&#IB$, $.% W.%3'4#B$, 2*#71 01 2*3#4 *5 677&$,'

Iacts: ClC boughL a properLy from spouses Culambao. ClC also
assumed morLgage on Lhe land ln favor of n8. Spouses agaln
morLgaged Lhe land Lo n8 Lo guaranLee a loan. ClC assumed Lhls
morLgage also, so parLles execuLed a ueed of AbsoluLe Sale wlLh
AssumpLlon of MorLgage, along wlLh Lhe appllcaLlon for assumpLlon of
morLgage, Lo n8. ClC flled for resclsslon of Lhe conLracL for
Culambaos' fallure Lo e[ecL Lhe lessees and Lransfer physlcal possesslon
Lo Lhem. uurlng Lhe pendency of Lhe case, Lhe morLgage was foreclosed
and n8 was Lhe hlghesL bldder aL Lhe publlc aucLlon.

Issues: WheLher or noL Lhe conLracL may be resclnded due Lo a
subsLanLlal breach of Lhe conLracL-fallure Lo e[ecL LenanLs and vlolaLlon
of warranLy agalnsL evlcLlon.

ne|d: nC. uellvery can be acLual or consLrucLlve. Symbollc dellvery, as a
specles of consLrucLlve dellvery, may be prevenLed lf Lhe vendor does
noL possess conLrol over Lhe Lhlng sold, ln whlch case Lhls legal flcLlon
musL yleld Lo reallLy. Pere, Lhe loL had been placed ln ClC's conLrol.
1haL's why Lhey were able Lo flle Lhe e[ecLmenL cases subsequenLly.
Slnce e[ecLmenL of lessees was noL sLlpulaLed as a condlLlon, lL cannoL
be lnvoked as a cause Lo allow ClC Lo resclnd lLs conLracL. ln facL, ClC
was aware of Lhe presence of Lhe LenanLs when lL enLered lnLo Lhe
conLracL of sale hence lL assumed Lhe rlsks of ownershlp and possesslon.
ower Commerclal was deprlved of ownershlp only afLer lL falled Lo
remlL Lhe amorLlzaLlons, buL noL due Lo fallure of dellvery.

Doctr|ne:

! LxecuLlon of ueed of CondlLlonal Sale wlLh
provlslon LhaL flnal deed of sale Lo be execuLed
upon full paymenL does noL Lransfer ownershlp
of Lhe sub[ecL maLLer. !Y*#43.& "*S$II* 2*#71
01 c\)28 9EE <2)6 @:: ?=;;=A
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o keg|strat|on of 1|t|e Is Separate Mode from Lxecut|on
of ub||c Instrument " 1he recordlng of Lhe sale wlLh
Lhe proper 8eglsLry of ueeds and Lhe Lransfer of Lhe
cerLlflcaLe of LlLle ln Lhe name of Lhe buyer are
necessary only Lo blnd Lhlrd parLles Lo Lhe Lransfer of
ownershlp. As beLween Lhe seller and Lhe buyer, Lhe
Lransfer of ownershlp Lakes effecL upon Lhe execuLlon
of a publlc lnsLrumenL conveylng Lhe real esLaLe. 2M3$
01 2*3#4 *5 677&$,'8 DE= <2)6 >D ?9EECA.

2M3$ 01 2*3#4 *5 677&$,'

Iacts: valdes-Choy ls Lhe owner of Lhe sub[ecL maLLer, when she
adverLlsed Lhe properLy for sale. Chua responded Lo Lhe adverLlsemenL,
and meL up wlLh valdes-Choy. 1hey agreed for Lhe purchase prlce of
10,800,000, Lo be pald on !uly 13, 1989. 1hls was evldenced by an
earnesL money for 100,000, whlch was puL on a recelpL, sLaLlng LhaL
Lhe money wlll be forfelLed upon fallure Lo pay on Lhe day sLlpulaLed.
Cn !uly 13, valdes-Choy execuLed Lwo deeds of absoluLe sale, flrsL,
perLalnlng Lo Lhe house and loL, valued aL 8,000,000, and second,
perLalnlng Lo Lhe movable properLles Lhereln. 1he nexL day, Chua lssued
a check worLh 483,000 for Lhe purpose paylng Lhe caplLal galns Lax.
1he value was deducLed from Lhe balance, wlLh an ouLsLandlng value of
10,293,000 (addlLlonal 80,000 for Lhe documenLary sLamp Lax). Chua
also showed a check worLh 10,213,00 Lo valdes-Choy, however, he
demanded LhaL Lhe 1C1 should flrsL be Lransferred Lo hls name before
paylng Lhe check. CuL of anger, valdes- Choy Lore Lhe deed of absoluLe
sale. Cn Lhe reckonlng daLe, valdes-Choy Lrled Lo make a compromlse
wlLh Chua, buL she dld noL geL any response. 1wo days laLer, Chua flled
an acLlon for speclflc performance, whlch Lhe Lrlal courL dlsmlssed. A
week laLer, he flled anoLher acLlon for speclflc performance, where Lhe
courL ruled ln favor of hlm. Cn appeal, CourL of Appeals reversed.
1


Issue: WheLher or noL Chua can compel valdes-Choy Lo cause Lhe
lssuance of a new 1C1 ln Chua's name even before paymenL of Lhe full
purchase prlce.

ne|d: nC. 1he obllgaLlon of Lhe seller ls Lo Lransfer Lo Lhe buyer
ownershlp of Lhe Lhlng sold. 1here ls a dlfference beLween Lransfer of
Lhe cerLlflcaLe of LlLle ln Lhe name of Lhe buyer, and Lransfer of
ownershlp Lo Lhe buyer. 8eglsLraLlon of LlLle ls separaLe mode from
execuLlon of publlc lnsLrumenL. 1he recordlng of Lhe sale wlLh Lhe
proper 8eglsLry of ueeds and Lhe Lransfer of Lhe cerLlflcaLe of LlLle ln Lhe
name of Lhe buyer are necessary only Lo blnd Lhlrd parLles Lo Lhe
Lransfer of ownershlp. As beLween Lhe seller and Lhe buyer, Lhe Lransfer
of ownershlp Lakes effecL upon Lhe execuLlon of a publlc lnsLrumenL
conveylng Lhe real esLaLe. 1he submlsslon by a seller Lo Lhe buyer of Lhe
followlng papers would compleLe a sale of real esLaLe: (1) owner's
dupllcaLe copy of Lhe 1orrens LlLle, (2) slgned deed of absoluLe sale, (3)
Lax declaraLlon, and (4) laLesL realLy Lax recelpL.

lurLhermore, Lhelr agreemenL ls a conLracL Lo sell. llrsL, when Lhe
agreemenL was made, Lhe earnesL money ls forfelLed ln favor of valdes-
Choy who may Lhen sell Lhe land Lo oLher lnLeresLed parLles. 1hls ls Lhe
naLure of reservlng Lhe ownershlp of Lhe properLy, sub[ecL Lo Lhe full

1
AnLonlo, PlpollLo, lmperlal & Zaragosa. (2012). 5oles clv cose ulqests.
8eLrleved from hLLp://www.scrlbd.com/doc/104486360/Sales-CLv-Case-
ulgesLs
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
paymenL of Lhe purchase prlce. Second, absenL of a formal deed of
conveyance of Lhe properLy ln favor of Lhe buyer shows LhaL Lhere was
no lnLenLlon Lo Lransfer ownershlp lmmedlaLely. 1he non-fulflllmenL of
Lhe suspenslve condlLlon, whlch ls paymenL of Lhe full purchase prlce
prevenLs Lhe obllgaLlon Lo sell from arlslng, where Lhe owner reLalns Lhe
ownershlp over Lhe properLy. ArLlcle 1482 speaks of earnesL money as
an evldence of a perfecLed conLracL of sale. Powever, ln Lhls case, Lhe
earnesL money was pald ln parL conslderaLlon of a conLracL Lo sell, and
Lherefore, ArLlcle 1482 does noL apply.

Doctr|ne:

o 8U1 SLLd under ArLlcle 1493, seller ls obllged Lo Lransfer
LlLle over Lhe properLy and dellver Lhe same Lo Lhe
vendee. aB0& Z$F,& \$.%8 W.I1 01 2*3#4 *5 677&$,', DDD
<2)6 DD> ?9EEDA.

aB0& Z$F,& \$.%8 W.I 01 2*3#4 *5 677&$,'

Iacts: ln 1987, Spouses llores, as owners, sold 2 parcels of land ln
Cubao Lo 1aLlc Square lnLernaLlonal Corp for 3.7M. 1aLlc applled for a
loan wlLh CaplLal 8ual 8ank of MakaLl Lo flnance lLs purchase of Lhe sald
loLs, whlch Lhe bank granLed provlded LhaL Lhe Lorrens LlLle over Lhe loLs
would be reglsLered under lLs name as collaLeral for Lhe paymenL of Lhe
loan. ln 1988, 1aLlc sold Lhese parcels of land Lo vlve Lagle Land lnc
(vLLl) for 6.3M, alLhough Lhe Lorrens LlLles over Lhe loLs were sLlll ln
Lhe cusLody of Lhe bank. uurlng Lhe same year, vLLl sold one of Lhese
parcels of land Lo Cenulno lce Co. lnc. for 4M. Also, a deed of
asslgnmenL of rlghLs ln whlch vLLl asslgned ln favor of Cenulno lce all
rlghLs and lnLeresLs under Lhe ueed of Sale execuLed by spouses llores
and Lhe oLher ueed of Sale execuLed by 1aLlc ln vLLl's favor, ln so far as
LhaL loL ls concerned.

llores " 1aLlc (2 loLs) " vLLl (2 loLs) " Cenulno lce (1 loL)

Cenulno lce demanded LhaL vLLl pay lLs caplLal galns Lax amounLlng Lo
283,000. Powever, vLLl refused saylng LhaL Lhe Spouses llores and
1oblas (broker of Lhe sale) are responslble Lo pay Lhe Lax. Cenulno lce
flled an acLlon for speclflc performance agalnsL vLLl, conLendlng LhaL
vLLl falled Lo Lransfer LlLle Lo and ln Lhe name of Cenulno lce, Lo cause
Lhe evlcLlon of Lhe occupanLs, and Lo pay Lhe Lax and oLher dues Lo
effecLuaLe Lhe Lransfer of Lhe LlLle of Lhe properLy. 81C ruled ln favor of
Cenulno lce, CourL of Appeals afflrmed.

Issue: WheLher or noL peLlLloner vLLl ls obllged Lo pay for Lhe expenses
for Lransfer of Lhe properLy and Lhe lssuance of Lhe LlLles Lo and under
Lhe name of Lhe Cenulno.

ne|d: ?LS. under ArLlcle 1487, Lhe expenses for Lhe reglsLraLlon of Lhe
sale should be shouldered by Lhe vendor (vLLl) unless Lhere ls a
sLlpulaLlon Lo Lhe conLrary. ln Lhe absence of Lhe sLlpulaLlon of Lhe
parLles relaLlng Lo Lhe expenses for Lhe reglsLraLlon of Lhe sale and Lhe
Lransfer of Lhe LlLle Lo Lhe vendee (Cenulno lce), ArLlcle 1487 shall be
applled ln a supplemenLary manner.

under ArLlcle 1493, vLLl, as vendor, ls obllged Lo Lransfer LlLle over Lhe
properLy and dellver Lhe same Lo Lhe vendee (Cenulno lce). Whlle
ArLlcle 1498 provldes LhaL Lhe execuLlon of a noLarlzed deed of absoluLe
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
sale shall be equlvalenL Lo Lhe dellvery of Lhe properLy, Lhe same shall
noL apply lf from Lhe deed Lhe conLrary does noL appear or cannoL
clearly be lnferred. ln Lhls case, Cenulno lce and vLLl agreed LhaL Lhe
laLLer would cause Lhe evlcLlon of Lhe LenanLs and dellver possesslon of
Lhe properLy. lL ls clear LhaL aL Lhe Llme Lhe peLlLloner execuLed Lhe
deed of sale ln favor of Cenulno lce, Lhere were LenanLs ln Lhe properLy.
lL cannoL be concluded LhaL Lhe properLy was Lhereby dellvered Lo
Cenulno lce.

Doctr|ne:

o Customary Steps |n Se|||ng Immovab|es "
CusLomarlly, ln Lhe absence of a conLrary agreemenL,
Lhe submlsslon by an lndlvldual seller Lo Lhe buyer of
Lhe followlng papers would compleLe a sale of real
esLaLe: (1) owner's dupllcaLe copy of Lhe 1orrens LlLle,
(2) slgned deed of absoluLe sale, (3) Lax declaraLlon, and
(4) laLesL realLy Lax recelpL. 1hey buyer can reLaln Lhe
amounL for Lhe caplLal galns Lax and pay lL upon
auLhorlLy of Lhe seller, or Lhe seller can pay Lhe Lax,
dependlng on Lhe agreemenL of Lhe parLles." 2M3$ 01
2*3#4 *5 677&$,'8 DE= <2)6 >D ?9EECA.
o 1he execuLlon of Lhe noLarlzed deed of sale and Lhe
dellvery of Lhe owner's dupllcaLe copy of Lhe orlglnal
cerLlflcaLe of LlLle Lo Lhe buyer ls LanLamounL Lo
consLrucLlve dellvery of Lhe ob[ecL of Lhe sale. NB.F'
R#*7&#4B&' 2*#71 01 T$,B%*8 :E: <2)6 =C@ ?9EE;A1
As to Incorporea| roperty (Art|c|es 1498 and 1S01).
o 3 Lypes of consLrucLlve dellvery speclflcally appllcable Lo
lncorporeal properLy:
a. LxecuLlon of a publlc lnsLrumenL, lf Lhe conLrary
does noL appear.
b. laclng of Lhe LlLles of ownershlp ln Lhe
possesslon of Lhe buyer.
c. use and en[oymenL by Lhe buyer of Lhe rlghLs
perLalnlng Lo Lhe lncorporeal properLy, wlLh Lhe
seller's consenL.
o ln Lhe sale of shares of sLock, physlcal dellvery of a sLock
cerLlflcaLe ls one of Lhe essenLlal requlslLes for Lhe
Lransfer of ownershlp of Lhe sLocks purchased.
llllnvesL's fallure Lo dellvery Lhe sLock cerLlflcaLes
represenLlng Lhe shares of sLock purchased by 1LMl and
Carcla amounLed Lo a subsLanLlal breach of Lhelr
conLracL whlch gave rlse Lo a rlghL Lo resclnd Lhe sale.
)$[3&,G<$.4*' 01 2*3#4 *5 677&$,'8 >;9 <2)6 =:;
?9EE;A1

6. Symbo||c De||very
MusL lnvolve or cover Lhe sub[ecL maLLer, and cannoL Lake a
form relaLlng Lo Lhe paymenL of Lhe purchase prlce.
o 1he lssuance of a recelpL for parLlal paymenL cannoL be
Laken Lo mean a Lransfer of ownershlp. \*#&.O* K&01
2*#71 01 2*3#4 *5 677&$,' ?DD; <2)6 ;;A
o As Lo movables, consLrucLlve dellvery may also be made
by Lhe dellvery of Lhe keys of Lhe place or deposlLary
where Lhe movable ls sLored or kepL.

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


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
7. Const|tutum ossessor|um (Art|c|e 1S00)
1he seller held possesslon ln Lhe concepL of owner, and
pursuanL Lo Lhe conLracL, Lhe seller conLlnues possesslon, buL as
lesee, or any oLher form of possesslon oLher Lhan ln Lhe concepL
of an owner.
A provlslon ln Lhe deed of sale granLlng Lo seller a rlghL Lo lease
Lhe sub[ecL maLLer of Lhe sale ls valld: Lhe possesslon ls deemed
Lo be consLlLuLed ln Lhe vendee by vlrLue of Lhls mode of
LradlLlon." !6^BF* 01 "&0&'8 ;: RMB,1 9>9 ?=;>DA.

8. 1rad|t|o 8rev| Manu
CpposlLe of consLlLuLum possessorlum.
1he buyer ls already ln Lhe possesslon of Lhe properLy before
Lhe sale, buL noL ln Lhe concepL of Lhe owner. AfLer Lhe sale, Lhe
buyer becomes possesor ln Lhe concepL of owner.
rlor Lo Lhe sale, peLlLloners were ln possesslon of Lhe sub[ecL
properLy as lessees. upon sale Lo Lhem of Lhe rlghLs, lnLeresLs
and parLlclpaLlon as Lo Lhe x porLlon pro lndlvlso, Lhey
remalned ln possesslon, noL ln Lhe concepL of lessees anymore
buL as owners now Lhrough symbollc dellvery known as LradlLlo
brevl manu. !H&B#' *5 R&%#* Z'I$.,$# 01 2*3#4 *5 677&$,'8 9J=
<2)6 =@: ?=;;@A.

9. 1rad|t|o Longa Manu
uellvery by mere agreemenL, such as when Lhe seller polnLs Lhe
properLy sub[ecL maLLer of Lhe sale by way of dellvery wlLhouL
need of acLually dellverlng physlcal possesslon.

10. De||very by Negot|ab|e Document of 1|t|e
A negoLlable documenL of LlLle represenLs Lhe acLual goods. lf lL
ls Lransferred ln good falLh and for value, and lf Lhe Lransferor
had Lhe ablllLy Lo convey, lL ls equlvalenL Lo Lhe Lransfer of Lhe
Lhlng lLself (Lxample: negoLlable warehouse recelpL).
lf Lhe documenL of LlLle has merely been asslgned, and noL
negoLlaLed, Lhe Lransferee/asslgnee only acqulres Lhe
Lransferor's LlLle.

D. 1ransfer Cwnersh|p to Vendee Upon De||very (Art|c|es 1477, 1478,
and 1496)

Art|c|e 1477.
1he ownersh|p of the th|ng so|d sha|| be transferred to the vendee
upon the actua| or construct|ve de||very thereof. (n)

Art|c|e 1478.
1he part|es may st|pu|ate that ownersh|p |n the th|ng sha|| not pass to
the purchaser unt|| he has fu||y pa|d the pr|ce. (n)

1. 2 1h|ngs Must 8e resent to make de||very produce |ts |ega|
effect:
a. De||very must be made pursuant to a va||d sa|e
o 1radlLlon perLalns Lo Lhe consummaLlon sLage of sale,
Lhus, lL presupposes a valld sale.
o When a sale ls flcLlLlous, no LlLle over Lhe sub[ecL maLLer
of Lhe sale can be conveyed.
b. De||very must be made when se||er has ownersh|p
over the sub[ect matter of sa|e so de||vered
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o no man can dlspose of LhaL whlch does noL belong Lo
hlm.

2. 1o Whom De||very Must 8e Made
Genera| ku|e: uellvery musL be made Lo Lhe buyer or hls duly
auLhorlzed represenLaLlves named ln Lhe conLracL. \$F**. 01
H**0&. 2*^$,I* W.%3'4#B&'8 W.I18 CD; <2)6 C:C
Lxcept|on: Powever, parLles can valldly sLlpulaLe how dellvery ls
Lo be made and Lo whom.

3. When 8uyer kefuses to Accept (Art|c|e 1S88)
Lven lf Lhe buyer refuses Lo accepL, Lhe dellvery by Lhe seller wlll
produce lLs legal effecLs. Powever, Lhe seller ls sLlll legally
obllged Lo Lake cerLaln sLeps as noL Lo be held llable for
consequenL loss or damage Lo Lhe goods.

4. In Case of Lxpress or Imp||ed keservat|on (Art|c|es 1478 and
1S03)

L. 1ak|ng-Cut Insurance Coverage (Art|c|e 1S23)

Art|c|e 1S23.
Where, |n pursuance of a contract of sa|e, the se||er |s author|zed or
requ|red to send the goods to the buyer, de||very of the goods to a
carr|er, whether named by the buyer or not, for the purpose of
transm|ss|on to the buyer |s deemed to be a de||very of the goods to
the buyer, except |n the cases prov|ded for |n art|c|e 1S03, f|rst, second
and th|rd paragraphs, or un|ess a contrary |ntent appears.

Un|ess otherw|se author|zed by the buyer, the se||er must make such
contract w|th the carr|er on beha|f of the buyer as may be reasonab|e,
hav|ng regard to the nature of the goods and the other c|rcumstances
of the case. If the se||er om|t so to do, and the goods are |ost or
damaged |n course of trans|t, the buyer may dec||ne to treat the
de||very to the carr|er as a de||very to h|mse|f, or may ho|d the se||er
respons|b|e |n damages.

Un|ess otherw|se agreed, where goods are sent by the se||er to the
buyer under c|rcumstances |n wh|ch the se||er knows or ought to know
that |t |s usua| to |nsure, the se||er must g|ve such not|ce to the buyer
as may enab|e h|m to |nsure them dur|ng the|r trans|t, and, |f the se||er
fa||s to do so, the goods sha|| be deemed to be at h|s r|sk dur|ng such
trans|t. (n)

1hls mode only applles Lo Lhe sale of goods.
Genera| ku|e: ln Lhe absence of conLrary sLlpulaLlon, dellvery Lo
Lhe carrler ls deemed dellvery Lo Lhe buyer. 1he carrler acLs as
an agenL of Lhe buyer.

I. 1|me and |ace of De||very (Art|c|e 1S21)

Art|c|e 1S21.
Whether |t |s for the buyer to take possess|on of the goods or of the
se||er to send them to the buyer |s a quest|on depend|ng |n each case
on the contract, express or |mp||ed, between the part|es. Apart from
any such contract, express or |mp||ed, or usage of trade to the
contrary, the p|ace of de||very |s the se||er's p|ace of bus|ness |f he has
one, and |f not h|s res|dence, but |n case of a contract of sa|e of spec|f|c
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
goods, wh|ch to the know|edge of the part|es when the contract or the
sa|e was made were |n some other p|ace, then that p|ace |s the p|ace
of de||very.

Where by a contract of sa|e the se||er |s bound to send the goods to
the buyer, but no t|me for send|ng them |s f|xed, the se||er |s bound to
send them w|th|n a reasonab|e t|me.

Where the goods at the t|me of sa|e are |n the possess|on of a th|rd
person, the se||er has not fu|f|||ed h|s ob||gat|on to de||ver to the buyer
un|ess and unt|| such th|rd person acknow|edges to the buyer that he
ho|ds the goods on the buyer's beha|f.

Demand or tender of de||very may be treated as |neffectua| un|ess
made at a reasonab|e hour. What |s a reasonab|e hour |s a quest|on of
fact.
Un|ess otherw|se agreed, the expenses of and |nc|denta| to putt|ng the
goods |nto a de||verab|e state must be borne by the se||er. (n)

G. Lxpenses of Lxecut|on and keg|strat|on (Art|c|e 1487), and of
utt|ng Goods |n De||verab|e Lstate (Art|c|e 1S21)

Art|c|e 1481.
In the contract of sa|e of goods by descr|pt|on or by samp|e, the
contract may be resc|nded |f the bu|k of the goods de||vered do not
correspond w|th the descr|pt|on or the samp|e, and |f the contract be
by samp|e as we|| as descr|pt|on, |t |s not suff|c|ent that the bu|k of
goods correspond w|th the samp|e |f they do not a|so correspond w|th
the descr|pt|on.

1he buyer sha|| have a reasonab|e opportun|ty of compar|ng the bu|k
w|th the descr|pt|on or the samp|e. (n)

1. Lxpenses of Lxecut|on and keg|strat|on
unless oLherwlse sLlpulaLed: (a) under ArLlcle 1487 Lhe expenses
for Lhe reglsLraLlon of Lhe sale should be shouldered by Lhe
vendor !aB0& Z$F,& \$.%8 W.I1 01 2*3#4 *5 677&$,'8 DDD <2)6
DD> ?9EEDAb and (b) duLy Lo wlLhhold Laxes due on Lhe sale ls
lmposed on seller. !Z[3B4$S,& )&$,4+ K&0&,*7^&.4 W.I1 01
L$+5$B# "M&$4&#8 W.I18 CC9 <2)6 =C; ?9EEEA1
8uyer has more lnLeresL ln havlng Lhe caplLal galns Lax pald
lmmedlaLely slnce Lhls ls a pre-requlslLe Lo Lhe lssuance of a new
1orrens LlLle ln hls name. neverLheless, as far as Lhe
governmenL ls concerned, Lhe caplLal galns Lax remalns a
llablllLy of Lhe seller slnce lL ls a Lax on Lhe seller's galn from Lhe
sale of Lhe real esLaLe. loymeot of tbe copltol qolos tox,
bowevet, ls oot o pte-tepolslte to tbe ttoosfet of owoetsblp to
tbe boyet. 1he Lransfer of ownershlp Lakes effecL upon Lhe
slgnlng and noLarlzaLlon of Lhe deed of absoluLe sale." !2M3$ 01
2*3#4 *5 677&$,'8 DE= <2)6 >D ?9EECA1
A [udgmenL on a conLracL of sale LhaL decrees seller's
obllgaLlons Lo execuLe and dellver Lhe deed of absoluLe sale and
Lhe cerLlflcaLe of LlLle, does noL necessarlly lnclude wlLhln lLs
Lerms Lhe obllgaLlon Lo pay for Lhe expenses ln noLarlzlng a
deed of sale and ln obLalnlng new cerLlflcaLe of LlLle1 !_*'&
2,$0$.*8 W.I1 01 H\)-8 C@J <2)6 =@9 ?9EE9A

2. Lxpenses of De||very and keg|strat|on on kea| Lstate
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
ln Lhe 2002 case of _*'& 2,$0$.* 01 H\`)-8 C@J <2)6 =@9
?9EE9A8 Lhe SC held LhaL a [udgmenL on a sale LhaL decrees Lhe
obllgaLlons of Lhe seller Lo execuLe and dellver Lhe deed of
absoluLe sale and Lhe cerLlflcaLe of LlLle, does noL necessarlly
lnclude Lhe obllgaLlon on Lhe parL of Lhe seller Lo pay for
expenses ln noLarlzlng Lhe deed of sale and ln obLalnlng a new
cerLlflcaLe of LlLle.
ln Lhe 2003 case of 2M3$ 01 2*3#4 *5 677&$,'8 DE= <2)6 >D
?9EECA Lhe CourL held LhaL Lhe obllgaLlon of Lhe seller ls Lo
Lransfer ownershlp whlch ls done by Lhe execuLlon of a publlc
lnsLrumenL. 1hus, expenses for reglsLraLlon ln Lhe 8eglsLry of
ueeds, whlch merely blnds Lhlrd persons buL does noL Lransfer
ownershlp, ls Lo be borne by Lhe buyer. CaplLal galns Lax
remalns llablllLy of Lhe seller.
ln Lhe 2004 case of aB0& Z$F,& \$.%8 W.I1 01 2*3#4 *5 677&$,'8
DDD <2)6 DD> ?9EEDA Lhe SC held LhaL reglsLraLlon of Lhe sale
should be shouldered by Lhe seller unless Lhere ls a conLrary
sLlpulaLlon.
CLv doesn'L say whlch case ls correcL, buL he seems Lo favor
cboo v. coott of Appeols slnce he keeps saylng LhaL Lhe oLher 2
cases are ln sLark conLrasL Lo Chua

3. Lxpenses of De||very for Movab|es
1he expenses for dellvery are Lo be borne by Lhe seller slnce
Lhey are expenses perLalnlng Lo puLLlng Lhe goods lnLo a
dellverable sLaLe."

II. Spec|a| ku|es on Comp|eteness of De||very

A. In Case of Movab|es (Art|c|e 1S22 and 1S37, 1480)

Art|c|e 1S22.
Where the se||er de||vers to the buyer a quant|ty of goods |ess than he
contracted to se||, the buyer may re[ect them, but |f the buyer accepts
or reta|ns the goods so de||vered, know|ng that the se||er |s not go|ng
to perform the contract |n fu||, he must pay for them at the contract
rate. If, however, the buyer has used or d|sposed of the goods
de||vered before he knows that the se||er |s not go|ng to perform h|s
contract |n fu||, the buyer sha|| not be ||ab|e for more than the fa|r
va|ue to h|m of the goods so rece|ved.

Where the se||er de||vers to the buyer a quant|ty of goods |arger than
he contracted to se||, the buyer may accept the goods |nc|uded |n the
contract and re[ect the rest. If the buyer accepts the who|e of the
goods so de||vered he must pay for them at the contract rate.

Where the se||er de||vers to the buyer the goods he contracted to se||
m|xed w|th goods of a d|fferent descr|pt|on not |nc|uded |n the
contract, the buyer may accept the goods wh|ch are |n accordance
w|th the contract and re[ect the rest.

In the preced|ng two paragraphs, |f the sub[ect matter |s |nd|v|s|b|e,
the buyer may re[ect the who|e of the goods.

1he prov|s|ons of th|s art|c|e are sub[ect to any usage of trade, spec|a|
agreement, or course of dea||ng between the part|es. (n)

Art|c|e 1480.
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
Any |n[ury to or benef|t from the th|ng so|d, after the contract has
been perfected, from the moment of the perfect|on of the contract to
the t|me of de||very, sha|| be governed by art|c|es 1163 to 116S, and
1262.

1h|s ru|e sha|| app|y to the sa|e of fung|b|e th|ngs, made |ndependent|y
and for a s|ng|e pr|ce, or w|thout cons|derat|on of the|r we|ght,
number, or measure.

Shou|d fung|b|e th|ngs be so|d for a pr|ce f|xed accord|ng to we|ght,
number, or measure, the r|sk sha|| not be |mputed to the vendee unt||
they have been we|ghed, counted, or measured and de||vered, un|ess
the |atter has |ncurred |n de|ay. (14S2a)

1. When Goods ne|d by 1h|rd arty
When goods are ln Lhe possesslon of a Lhlrd parLy aL Lhe Llme of
Lhe sale, Lhe seller has noL fulfllled hls obllgaLlon Lo dellver
unless and unLll Lhe Lhlrd person acknowledges Lo Lhe buyer
LhaL he holds Lhe goods on Lhe buyer's behalf. (ArLlcle 1321)
When Lhe conLracL does noL provlde for Lhe measurlng or
welghlng of a sold speclflc mass, and Lhe prlce agreed upon was
noL based on such measuremenL, Lhen [L]he sub[ecL maLLer of
Lhe sale ls, Lherefore, a deLermlnaLe ob[ecL, Lhe mass, and noL
Lhe acLual number of unlLs or Lons conLalned Lhereln, so LhaL all
LhaL ls requlred of seller was Lo dellver ln good falLh Lo hls buyer
all of Lhose found ln Lhe mass, noLwlLhsLandlng LhaL Lhe
quanLlLy dellvered ls less Lhan Lhe amounL esLlmaLed ln Lhe
conLracL." !T$B4& 01 Y*.$IB&#8 9 <2)6 JC= ?=;:=A1

2. keservat|on of Cwnersh|p
Cwnershlp wlll noL Lransfer Lo Lhe buyer ln case of express
reservaLlon ln Lhe conLracL, such as when Lhe parLles sLlpulaLe
LhaL ownershlp wlll noL Lransfer unLll Lhe purchase prlce ls full
pald, or unLll cerLaln condlLlons are fulfllled. (ArLlcle 1478,
ArLlcle 1303)
o 1echnlcally speaklng, Lhls does noL refer Lo condlLlonal
conLracLs of sale or conLracLs Lo sell where Lhe
condlLlons refer Lo Lhe perfecLlon of Lhe conLracL.
o 1he condlLlons menLloned here refer Lo Lhe
consummaLlon sLage of Lhe conLracL.
ArLlcle 1303 of Lhe Clvll Code glves lnsLances where reservaLlon
of ownershlp ls lmplled:
a. Coods are shlpped, and by Lhe blll of ladlng Lhe goods
are dellverable Lo Lhe seller or hls agenL, Lhe seller
reserves ownershlp of Lhe goods. 8uL, lf excepL from Lhe
form of Lhe blll of ladlng, ownershlp would have passed
Lo Lhe buyer, Lhe seller's properLy ln Lhe goods shall be
deemed Lo be only for purpose of securlng performance
of Lhe buyer's obllgaLlon, ln whlch case Lhe buyer bears
Lhe rlsk of loss.
b. Coods are shlpped, and by Lhe blll of ladlng Lhe goods
are dellverable Lo Lhe buyer, buL possesslon of Lhe blll of
ladlng ls reLalned by Lhe seller, Lhe seller reserves a rlghL
Lo Lhe possesslon of Lhe goods, and ownershlp ls sLlll
Lransferred Lo Lhe buyer
c. Seller draws on Lhe buyer for Lhe prlce, and LransmlLs
Lhe blll of exchange and Lhe blll of ladlng LogeLher Lo Lhe
buyer, Lhe buyer ls bound Lo reLurn Lhe blll of ladlng lf
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
he does noL honor Lhe blll of exchange. lf he reLalns Lhe
blll of ladlng, he does noL acqulre any added rlghL.
! lf Lhe blll of ladlng provldes LhaL Lhe goods are
dellverable Lo Lhe buyer, one who purchases ln
good falLh and for value Lhe blll of ladlng or Lhe
goods from Lhe buyer, wlll obLaln ownershlp,
provlded LhaL Lhe blll of ladlng ls lndorsed Lo
such purchaser

3. ku|es on De||very to Carr|er (Art|c|e 1S23)
a. IAS Sa|es ("Ire|ght A|ong S|de")" 1he seller pays all
charges and ls sub[ecL Lo rlsk unLll Lhe goods are placed
alongslde Lhe vessel". !61 <*#B$.* e 2B$1 01 2*,,&I4*#8 ;@
RMB,1 >E> ?=;>>A.
o uellvery of Lhe goods alongslde Lhe vessel compleLes
Lhe effecL of dellvery.
b. IC8 Sa|es ("Iree on board") " ln mercanLlle conLracLs
of Amerlcan orlgln, l.C.8." sLand for Lhe words lree
on 8oard," l.e., LhaL Lhe seller shall bear all expenses
unLll Lhe goods are dellvered accordlng as Lo wheLher
Lhe goods are Lo be dellvered l.C.8." aL Lhe polnL of
shlpmenL or aL Lhe polnL of desLlnaLlon deLermlnes Lhe
Llme when properLy passes. -&M. L&+&# P 2*1 01
e$.FI*8 CJ RMB,1 :E98 :E: ?=;=JA.
1

o l. C. 8. shlpplng polnL" " dellvery of Lhe goods Lo Lhe
carrler ls equlvalenL Lo dellvery Lo Lhe buyer. 8lsk of loss
perLalns Lo Lhe buyer.

1
cboo Nqo v. uolvetsol 1toJloq co., loc., 87 hll. 331 (1930).
o l. C. 8. desLlnaLlon" " dellvery Lo Lhe buyer Lakes
place upon arrlval of Lhe vessel aL Lhe polnL of
desLlnaLlon. rlor Lo arrlval, rlsk of loss perLalns Lo Lhe
seller.
c. CII Sa|es ("Costs, |nsurance, and fre|ght") " 1wo
schools of LhoughL:
o 1he carrler acLs as an agenL of Lhe buyer, and Lherefore,
dellvery Lo Lhe carrler ls dellvery Lo Lhe buyer. 1he buyer
Lhus obLalned ownershlp. T&.&#$, Y**%' 01 c62U2U8
=EE RMB,1 CC@ ?=;>:A.
o C.l.l." found ln 8rlLlsh conLracLs sLand for cosLs,
lnsurance, and frelghL, Lhey slgnlfy LhaL Lhe prlce flxed
covers noL only Lhe cosLs of Lhe goods, buL Lhe expense
of frelghL and lnsurance Lo be pald by Lhe seller. -&M.
L&+&# P 2*1 01 e$.FI*, 38 h||. 602, 606 (1918).
o under an arrangemenL c.l.f. aclflc CoasL"
(desLlnaLlon), Lhe vendor ls Lo pay noL only Lhe cosL of
Lhe goods, buL also Lhe frelghL and lnsurance expenses,
and, as lL was [udlclally lnLerpreLed, Lhls ls Laken Lo
lndlcaLe LhaL Lhe dellvery ls Lo be made aL Lhe porL of
desLlnaLlon." R$IB5BI a&F&4$S,& UB, 2*#71 01 <B.FO*.8
<37#&^& 2*3#4 6%0$.I& K&IB'B*.'8 9; 67#B, =;>>1
1hese shlpplng arrangemenLs creaLe presumpLlve effecLs whlch
can gulde Lhe courLs ln consLrulng when consLrucLlve dellvery
occurs. Powever, such presumpLlons musL necessarlly glve way
Lo any sLlpulaLlon or lnLlmaLlon Lo Lhe conLrary, as Lhese show
Lhe lnLenL of Lhe parLles. lL ls sLlll Lhe lnLenLlon of Lhe parLles
whlch conLrol Lhe agreemenL.

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


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
-&M.8 L&+&# P 2*1 01 e$.FI*

Iacts: ?angco ordered 80 drums of causLlc soda Carabao 8rand" from
8hen & Meyer. 1he lnsLrumenL evldenclng Lhe agreemenL made use of
Lhe Lerms lC8" and Cll." 1he goods were deLalned by Lhe 8rlLlsh
auLhorlLles ln enang. 8hen & Meyer alleges LhaL ?angco had already
acqulred ownershlp of Lhe sald goods and should Lhus pay for Lhe
purchase prlce. Powever, ?angco refused Lo accepL Lhe same alleglng
LhaL Lhe goods were noL Carabao 8rand" and LhaL Lhe same were
adulLeraLed.

Issue: WheLher or noL Lhe seller ls llable.

ne|d: ?LS. ConLracL provlded for c.l.f. Manlla..." 1he Lerm c.l.f.
presumes LhaL properLy passes (consldered dellvered) Lo Lhe buyer
upon dellvery Lo Lhe common carrler. f.o.b." presumes LhaL Lhe seller ls
responslble unLll dellvery ls made Lo desLlnaLlon. 8uL Lhese are [usL
presumpLlons. lnLenL ls sLlll conLrolllng. AlLhough c.l.f." was used, lL ls
clear from Lhe conLracL LhaL Lhe parLles lnLended Lhe seller Lo be llable
unLll dellvery was made Lo desLlnaLlon (Manlla). noL havlng been
fulfllled, buyer has a rlghL Lo resclnd for subsLanLlal breach.

Doctr|ne:

T&.&#$, Y**%' 01 c62U2U

Iacts: nACCCC (based ln Manlla) sold 1000 Lons of copra Lo ClC. lL was
shlpped Lo ClC (new ?ork) aboard Lhe SS Mlndoro. nACCCC wlLhdrew
from ClC's leLLer of credlL Lhe amounL correspondlng Lo Lhe copra. 8uL
ClC only recelved 800 Lons so lL demanded a refund correspondlng Lo
Lhe prlce of Lhe deflclency. nACCCC's defense ls LhaL slnce Lhe conLracL
was c.l.f., dellvery Lo Lhe carrler (SS Mlndoro) was equlvalenL Lo dellvery
Lo Lhe buyer (ClC).

Issue: WheLher or noL nACCCC ls llable Lo refund.

ne|d: ?LS. Whlle ln ordlnary c.l.f. dellvery Lo Lhe carrler ls dellvery Lo Lhe
buyer, Lhe parLles can lnserL sLlpulaLlons. Pere, Lhe parLles sLlpulaLed
LhaL Lhe prlce Lo be pald would be based on Lhe exacL neL welghL upon
arrlval aL porL of desLlnaLlon. nACCCC had burden Lo prove LhaL Lhe
deflclency ln welghL was owlng Lo rlsks of Lhe voyage or allowable
welghlng errors and noL Lhe drylng up of Lhe copra. lL dld noL prove.

Doctr|ne:

R$IB5BI a&F&4$S,& UB, 2*#71 01 <B.FO*.

Iacts: eLlLloner and respondenL enLered lnLo a conLracL ln Lhe uS
whereby Slngzon agreed Lo shlp 300 Lons of copra, wlLh Lhe agreemenL
Cll, aclflc CoasL. Slngzon falled Lo dellver, buL Lhe parLles enLered lnLo
a seLLlemenL, whereby Slngzon would dellver 300 Lons aL Lhe same
Lerms Lhe conLracL provlded LhaL should Slngzon agaln defaulL, he would
pay $10,000 for damages and Lhe orlglnal conLracL would be revlved.
Slngzon agaln falled Lo shlp Lhe copra, and he dld noL pay Lhe flne or
shlp Lhe 300 Lons as orlglnally agreed. aclflc flled an acLlon Lo recover
damages. Slngzon clalms LhaL aclflc had no legal personallLy Lo sue
because lL ls a forelgn corporaLlon.

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


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

ne|d: ?LS. under Lhelr arrangemenL, Lhe vendor was noL only Lo pay for
cosL, buL also frelghL and lnsurance expenses. So before arrlval aL Lhe
desLlnaLlon, Lhe rlsk of loss should be for Lhe accounL of Lhe seller.

Doctr|ne:

4. Cb||gat|on as to Accessor|es and Access|ons
1he seller musL dellver Lo Lhe buyer a quanLlLy of goods LhaL
should noL be less Lhan whaL he conLracLed Lo sell, oLherwlse
Lhe buyer may re[ecL Lhem

S. Sa|e |n Mass of Movab|es
Sale of movables ln ArLlcle 1322 musL be dlsLlngulshed from Lhe
sale of speclflc mass under ArLlcle 1480 whlch refers Lo sale of
funglble Lhlngs.
lf Lhere ls no provlslon ln Lhe conLracL for Lhe measurlng or
welghlng of Lhe funglble Lhlng, nor ls Lhe prlce agreed upon by
Lhe parLles Lo be based on such measuremenL, Lhe sub[ecL
maLLer of Lhe sale ls Lhe mass lLself, as a deLermlnaLe ob[ecL.
1he obllgaLlon Lherefore, of Lhe seller ls Lo dellver Lhe whole
mass, regardless of Lhe quanLlLy. T$B4& 01 Y*.$IB&#8 9 <2)6 JC=
?=;:=A1

6. Sa|e on Approva|, 1r|a| or Sat|sfact|on (Art|c|e 1S02)
ln a sale or reLurn," Lhe ownershlp passes Lo Lhe buyer on
dellvery pursuanL Lo a perfecLed conLracL of sale, and Lhe
subsequenL reLurn of Lhe goods reverLs ownershlp back Lo Lhe
seller. ln such case, LradlLlon as a mode of acqulrlng ownershlp
musL be lo coosepoeoce of a conLracL. !a$,,$#4$ 01 2*3#4 *5
677&$,'8 =>E <2)6 CC: ?=;J@A1
When goods are dellvered Lo Lhe buyer on sale on approval or
on Lrlal or on saLlsfacLlon," Lhe ownershlp Lhereln passes Lo Lhe
buyer only:
o When buyer slgnlfles hls approval or accepLance Lo Lhe
seller or does any oLher acL adopLlng Lhe LransacLlon, or
o lf Lhe buyer does noL slgnlfy hls approval or accepLance,
buL reLalns Lhe goods wlLhouL glvlng noLlce of re[ecLlon,
Lhen lf a Llme has been flxed for Lhe reLurn of Lhe goods,
on Lhe explraLlon of such Llme, and, lf noL Llme has been
flxed, on Lhe explraLlon of a reasonable Llme.
ln a sale on approval" (also called sale on accepLance, sale on
Lrlal" or sale on saLlsfacLlon"), Lhe dellvery of Lhe ob[ecL does
noL Lransfer ownershlp Lo Lhe buyer slnce Lhe dellvery was noL
for purposes of Lransferrlng ownershlp, slnce Lhe presLaLlon Lo
effecL a meeLlng of Lhe mlnds Lo glve rlse Lo a valld conLracL ls
lncumbenL on Lhe buyer1 !a$,,$#4$ 01 2*3#4 *5 677&$,'8 =>E
<2)6 CC: ?=;J@A1
o lncumbenL on Lhe buyer slnce lL ls dependenL on Lhe
buyer on wheLher or noL he wlll accepL such. 1he
accepLance or re[ecLlon would be Lhe deLermlnlng
facLor on wheLher or noL a valld conLracL wlll rlse.
When Lhe sale of a movable ls sale on accepLance," no
ownershlp could have been Lransferred Lo Lhe buyer desplLe
dellvery and possesslon because Lhere was sLlll no perfecLed
conLracL when dellvery was done. 1he accepLance by Lhe buyer
ls a suspenslve condlLlon whlch wlll glve rlse Lo Lhe perfecLed
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
conLracL of sale. !a$,,$#4$ 01 2*3#4 *5 677&$,'8 =>E <2)6 CC:
?=;J@A1
lor a sale Lo be a sale or reLurn" or a sale on approval," Lhere
musL be a clear agreemenL Lo elLher of such effecL, oLherwlse,
Lhe provlslons of ArLlcle 1302 of Clvll Code governlng such sales
cannoL be lnvoked by elLher parLy Lo Lhe conLracL. !W.%3'4#B$,
"&!4B,& L$.35$I43#B.F 2*1 01 \R_ Z.4&#7#B'&'8 W.I18 9=@ <2)6 C99
?=;;CA1

7. Sa|e by Descr|pt|on and]or Samp|e (Art|c|e 1481)

Art|c|e 1481.
In the contract of sa|e of goods by descr|pt|on or by samp|e, the
contract may be resc|nded |f the bu|k of the goods de||vered do not
correspond w|th the descr|pt|on or the samp|e, and |f the contract be
by samp|e as we|| as descr|pt|on, |t |s not suff|c|ent that the bu|k of
goods correspond w|th the samp|e |f they do not a|so correspond w|th
the descr|pt|on.

1he buyer sha|| have a reasonab|e opportun|ty of compar|ng the bu|k
w|th the descr|pt|on or the samp|e. (n)

Genera| ku|e: ArLlcle 1481(1), 1here ls a sale by sample when a
small quanLlLy ls exhlblLed by Lhe seller as a falr speclmen of Lhe
bulk, whlch ls noL presenL and Lhere ls no opporLunlLy Lo lnspecL
or examlne Lhe same, and Lhe parLles LreaLed Lhe sample as Lhe
sLandard of quallLy and LhaL Lhey conLracLed wlLh reference Lo
Lhe sample wlLh Lhe undersLandlng LhaL Lhe producL Lo be
dellvered would correspondenL wlLh Lhe sample. !L&.%*O$ 01
K$0B%8 DD= <2)6 =@9 ?EEDA
o ALLy. SanLlago " lf Lhe dellvered producLs does noL
conform Lo Lhe sample, Lhe buyer may choose Lo reLurn
Lhe producLs or ask for a reducLlon of prlce
o Lxcept|on: Lven ln sales by descrlpLlon and/or sample,
buyer wlll noL be released from hls obllgaLlon Lo accepL
and pay for Lhe goods by devlaLlons on Lhe parL of Lhe
seller from Lhe exacL Lerms of Lhe conLracL, lf buyer had
acqulesced Lo such devlaLlons afLer due noLlce Lhereof.
!Z.F&, 01 L$#B$.* a&,$'I* P 2*18 D@ RMB,1 ==> ?=;9DA1
When Lhe machlne dellvered ls ln accordance wlLh Lhe
descrlpLlon sLaLed ln Lhe sales conLracL, Lhe buyer cannoL refuse
Lo pay Lhe balance of Lhe purchase prlce and Lhe cosL of
lnsLallaLlon lf lL proves LhaL Lhe machlne cannoL be used
saLlsfacLorlly for Lhe purposes for whlch he boughL lL when such
purpose was noL made known Lo Lhe seller. !R$IB5BI 2*^^&#IB$,
2*1 01 Z#^B4$ L$#/&4 P 2*,% <4*#&'8 >: RMB,1 :=@ ?=;C9A1

8. 8uyer's k|ght to Inspect 8efore Acceptance (Art|c|es 1481 and
1S84), Lxcept when carr|er de||vers CCD.

8. In Case of Immovab|es
1. Where So|d er Un|t or Number (Art|c|es 1S39 and 1S40)
ln a unlL prlce sale, Lhe sLaLemenL of Lhe area of lmmovable ls
noL concluslve and Lhe prlce may be reduced or lncreased
dependlng on Lhe area acLually dellvered. lf Lhe vendor dellvers
less Lhan Lhe area agreed upon, Lhe vendee may obllge Lhe
vendor Lo dellver all LhaL ls sLaLed ln Lhe conLracL or demand for
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
Lhe proporLlonaLe reducLlon of Lhe purchase prlce lf dellvery ls
noL posslble. lf Lhe vendor dellvers more Lhan Lhe area sLaLed ln
Lhe conLracL, Lhe vendee has Lhe opLlon Lo accepL only Lhe
amounL agreed upon or Lo accepL Lhe whole area, provlded he
pays for Lhe addlLlonal area aL Lhe conLracL raLe. )3%*,5 \B&4O8
W.I1 01 2*3#4 *5 677&$,', D@J <2)6 D>= ?9EE>A
1

o lf Lhe vendor dellvers less Lhan Lhe area agreed upon,
Lhe vendee may obllge Lhe vendor Lo dellver all LhaL ls
sLaLed ln Lhe conLracL or demand for Lhe proporLlonaLe
reducLlon of Lhe purchase prlce lf dellvery ls noL
posslble.
o lf Lhe vendor dellvers more Lhan Lhe area sLaLed ln Lhe
conLracL, Lhe vendee has Lhe opLlon Lo accepL only Lhe
amounL agreed upon or Lo accepL Lhe whole area,
provlded he pays for Lhe addlLlonal area aL Lhe conLracL
raLe.

)3%*,5 \&B4O8 W.I1 01 2*3#4 *5 677&$,'

Iacts: 8espondenL 8urlol owned a parcel of unreglsLered land ln
Capsalay lsland, orL 8arLon, San vlcenLe, alawan. Pe leased 1 hecLare
of Lhls properLy Lo lLallan clLlzens 1uraLello and Sanl. 8urlol sold Lhe loL
along wlLh 4 more hecLares (LoLal of 3 hecLares) Lo peLlLloner 8udolf
LleLz, lnc. 1he deed of sale descrlbed Lhe properLy ln Lerms of area and
boundarles, noL prlce per unlL. LaLer on, 8udolf LleLz, lnc. dlscovered
LhaL 8urlol only owned 4 hecLares, noL 3, and 1 of whlch was leased Lo
hereln prlvaLe respondenLs. Pence, 8urlol was only able Lo dellver 3

1
Coyeoo v. 1ombootloq, 1 hll. 490 (1902), 5ooto Aoo v. netoooJez, 18 SC8A
973 (1966).
hecLares. 8udolf LleLz, lnc. flled a complalnL conLendlng LhaL he ls
enLlLled Lo reducLlon of Lhe purchase prlce ln accordance wlLh ArLlcle
1339 (sale wlLh sLaLemenL of area and prlce per unlL).

Issue: WheLher or noL 8udolf LleLz, lnc. ls enLlLled Lo Lhe dellvery of Lhe
enLlre flve hecLares or lLs equlvalenL.

ne|d: nC. ArLlcle 1342 (lump sum sale of land) applles. 1here shall be no
reducLlon ln prlce even lf Lhe area dellvered ls less Lhan LhaL sLaLed ln
Lhe conLracL. 1he area wlLhln Lhe boundarles as sLaLed ln Lhe conLracL
shall conLrol over shall conLrol over Lhe area agreed upon ln Lhe
conLracL.

Doctr|ne:

2. Where So|d for a Lump Sum ["6 I3&#7* IB&#4* or 7*# 7#&IB*
$,O$%*f] (Art|c|e 1S42)
Genera| ku|e: ln a conLracL of sale of land ln a mass, Lhe speclflc
boundarles sLaLed ln Lhe conLracL musL conLrol over any
sLaLemenL wlLh respecL Lo Lhe area conLalned wlLhln lLs
boundarles. <$,B.$' 01 Y$3'4B.*8 >:: <2)6 =J ?9EEJA1
o ln a lump sum sale, when Lhe land dellvered Lo Lhe
buyer ls exacLly as LhaL descrlbed ln Lhe deed and
covered wlLhln Lhe boundarles deslgnaLed, Lhe
dlfference ln acLual area (34 vetsos 10 hecLares) wlll noL
auLhorlze Lhe buyer Lo resclnd Lhe conLracL because Lhe
seller has complled wlLh dellverlng Lhe sub[ecL maLLer
agreed upon. !"&#$. 01 aB,,$.3&0$8 >: RMB,1 :@@ ?=;C9A,
Lhls ls Lhe rule when evldence shows LhaL Lhe parLles
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
never gave lmporLance Lo Lhe area of Lhe land ln flxlng
Lhe prlce (97 versus 60 hecLares). !6O$##$F$ 01 T$+8 >9
RMB,1 >;; ?=;9JA1
Where Lhe parLles agreed on a sale aL a raLe of a cerLaln prlce
per unlL of measure and noL one for a lump sum, lL ls ArLlcle
1339 and noL ArLlcle 1342 whlch ls Lhe appllcable law-Lhe
buyer ls enLlLled Lo Lhe rellef afforded Lo hlm under ArLlcle
1329, LhaL ls, elLher a proporLlonal reducLlon of Lhe prlce or Lhe
resclsslon of Lhe conLracL. !2&S3 QB.,$.% K&01 2*#71 01 U.F
<B$* H3$8 >JJ <2)6 =9E ?9EE;A1
Lxcept|on: A buyer of land, when sold ln gross or wlLh Lhe
descrlpLlon more or less" or slmllar words ln deslgnaLlng
quanLlLy covers only a reasonable excess of deflclency. ln Lhe
case aL bar an area of 644 square meLers more" ls noL
reasonable excess or deflclency, Lo be deemed lncluded ln Lhe
deed of sale. !)*S,& 01 6#S$'$8 C:9 <2)6 :; ?9EE=Ab )3%*,5
\B&4O8 W.I1 01 2*3#4 *5 677&$,'8 D@J <2)6 D>= ?9EE>A1
=

Lxcept|on to Lxcept|on: When buyer, who has been occupylng
Lhe land for Lwo years as lessee, acLually ls deemed Lo Lake rlsk
on Lhe acLual slze of Lhe properLy boughL aL lump sum. !T$#IB$
01 a&,$'I*8 @9 RMB,1 9DJ ?=;D=A1

3. Lump Sum Sa|e v. Sa|e by Un|t of Measure or Number
Genera| ku|e: lf Lhe prlce per unlL of measure or number ls noL
expressly provlded for ln Lhe conLracL, Lhe rules of lump sum
sale shall prevall ln Lhe sale of real properLy.

1
Aslolo v. IolooJool, 43 hll 296 (1923), 8olootokbo v. coott of Appeols, 249
SC8A 323 (1993), sqoetto v. 1tlolJoJ, 318 SC8A 186 (2007), uel ltoJo v.
cobolleto, 614 SC8A 102 (2010).

4. Where Immovab|es So|d |n Mass
A [udlclal sale ln mass of separaLe known loLs or parcels wlll noL
be seL aslde, unless lL ls made Lo appear LhaL a larger sum could
have been reallzed form a sale ln parcels or LhaL a sale of less
Lhan Lhe whole would have been sufflclenL Lo saLlsfy Lhe debL.

III. Doub|e Sa|es (Art|c|es 1S44
2
and 116S)

Art|c|e 116S.
When what |s to be de||vered |s a determ|nate th|ng, the cred|tor, |n
add|t|on to the r|ght granted h|m by art|c|e 1170, may compe| the
debtor to make the de||very.

If the th|ng |s |ndeterm|nate or gener|c, he may ask that the ob||gat|on
be comp||ed w|th at the expense of the debtor.

If the ob||gor de|ays, or has prom|sed to de||ver the same th|ng to two
or more persons who do not have the same |nterest, he sha|| be
respons|b|e for any fortu|tous event unt|| he has effected the de||very.
(1096)

A. ku|e on Doub|e Sa|es Must 8e Cons|dered as ku|es on 1rad|t|on
1he rules on uouble Sales cover Lhe effecLs and consequences
of LradlLlon ln a parLlcular slLuaLlon where Lhe same seller has
sold Lhe same sub[ecL properLy Lo Lwo or more buyers who do
noL represenL Lhe same lnLeresLs.

2
loJoJeto v. Moqollooes, 633 SC8A 332 (2010).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
1. 1he confllcLlng sales are all valld and demandable sales,
pursuanL Lo whlch LradlLlon was or could be effecLed.
2. 1he seller who effecLed mulLlple sales Lo varlous buyers over Lhe
same sub[ecL maLLer acLually had ownershlp.
roblem: 1he rules on double sales, alLhough essenLlally
appllcable wlLhln Lhe sLage of consummaLlon, have a way of
dlcLaLlng or pre-empLlng Lhe prlnclples of perfecLlon.

8. 1wo D|vergent Systems When It Comes to Land: .D. 1S29 v. Art|c|e
1S44 - r|or|ty of 1orrens System of keg|strat|on.
SecLlon 31 of .u. 1329 embodles Lhe reglsLraLlon ln good falLh
as Lhe operaLlve acL" docLrlne.
ArLlcle 1344 does noL overcome Lhe prlorlLy rules under .u.
1329.

.D. 1S29 Art|c|e 1S44
8eglsLraLlon" ln .D. 1S29 ls Lhe
[udlclal or admlnlsLraLlve process
by whlch a parcel of land ls placed
for Lhe flrsL Llme wlLhln Lhe
coverage of Lhe 1orrens SysLem.
8eglsLraLlon" ln Art|c|e 1S44
refers Lo Lhe annoLaLlon of
conLracLs, LransacLlons and legal
processes ln Lhe 8eglsLry of ueeds.


1he rules on double sales under ArLlcle 1344 do noL overcome
Lhe rules provlded under Lhe roperLy 8eglsLraLlon uecree (.u.
1439), such as:
1. When Lwo cerLlflcaLes of LlLle are lssued Lo dlfferenL persons
coverlng Lhe same land, ArLlcle 1344 cannoL apply. lnsLead, Lhe
prlnclple of Lhe 1orrens sysLem wlll apply. " 1he earller LlLle
wlll prevall. !\B$* 01 2*3#4 *5 677&$,'8 C9C <2)6 DCE ?9EEEA,
2. ArLlcle 1344 wlll also noL apply ln a case where a flrsL buyer
boughL Lhe land noL under Lhe 1orrens sysLem, buL under AcL
no. 3344, and a subsequenL buyer boughL Lhe same properLy
when lL was already reglsLered under Lhe 1orrens sysLem of u
1329. " 1he 1orrens LlLle wlll prevall. 1hls ls because:
a. Cf Lhe well-known rule ln Lhls [urlsdlcLlon LhaL persons
deallng wlLh reglsLered land have Lhe legal rlghL Lo rely
on Lhe facL of Lhe 1orrens CerLlflcaLe of 1lLle and Lo
dlspense wlLh Lhe need Lo lnqulre furLher, excepL when
Lhe parLy concerned has acLual knowledge of facLs and
clrcumsLances LhaL would lmpel a reasonably cauLlous
man Lo make such lnqulry," and
b. 1he 1orrens sysLem rule LhaL formal reglsLraLlon
proceedlngs underLaken on Lhe properLy and Lhe
subsequenL lssuance of a LlLle over Lhe land had under
Lhe 1orrens sysLem had Lhe legal effecL of cleanslng LlLle
on Lhe properLy of all llens and clalms whlch were noL
annoLaLed Lhereln.
c$$]$. 2*^^3.B4+ )3#$, -$./8 W.I1 01 2*3#4 *5 677&$,'8 C;>
<2)6 DC ?9EECA.
1


c$$]$. 2*^^3.B4+ )3#$, -$./ 01 2*3#4 *5 677&$,'

Iacts: Comayas offered Lo sell Lo Lhe Lumo Spouses a house and loL ln
CuC ClLy. 1he properLy was already reglsLered under Lhe 1orrens
SysLem LhaL Llme and Lhey made approprlaLe lnqulrles wlLh Lhe 8eglsLer

1
keltetoteJ lo Abtlqo v. ue veto, 432 SC8A 344 (2003), vet keyes v. 5olvoJot,
5t., 364 SC8A 436 (2008).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
of ueeds of CuC as well as Lhe 8ureau of Lands regardlng Lhe legal
sLaLus of Lhe properLy. 1hey found ouL LhaL lL was morLgaged for 8,000,
pald Comayas Lo seLLle Lhe morLgage, and Lhe release of Lhe adverse
clalm was annoLaLed ln Lhe LlLle. 1hereafLer, Lhey execuLed an AbsoluLe
ueed of Sale over Lhe sub[ecL properLy and reglsLered Lhe same.
Powever, lL Lurns ouL LhaL lL was already prevlously sold Lo naawan
CommunlLy 8ural 8ank when lL was sLlll unreglsLered. 1he 8ank
foreclosed on Lhe properLy, purchased Lhe same, and reglsLered lL under
AcL 3344. 1hus, Lhe 8ank soughL Lo e[ecL Lhe spouses. Powever, Lhe
laLLer counLered wlLh an acLlon for quleLlng of LlLle. nC88 conLends LhaL
Lhe earller reglsLraLlon of Lhe ueed of Conveyance under AcL 3344
should prevall over Lhe laLer reglsLraLlon of Lhe Lumos spouses, under
.u. 1329, as Lhls ls a case of double sale under ArLlcle 1344.

Issue: WheLher or noL Lumos has beLLer rlghL over nC88.

ne|d: ?LS. rlvaLe respondenLs were noL requlred Lo go beyond Lhe
reglsLer Lo deLermlne legal condlLlon of Lhe properLy. 1hey were only
charged wlLh noLlce of such burdens on Lhe properLy as were noLed on
Lhe CC1 or on Lhe reglsLer. Lumo spouses were ln good falLh as Lhey
lnqulred ln Lhe 8ou and Lhe 8ureau of roperLy regardlng vendor's LlLle.
nelLher were Lhey aware of any adverse clalm, oLher Lhan Mrs. Calupo,
who Lhey seLLled wlLh. Conslderlng, Lhus, LhaL Lumo spouses exerclsed
Lhe requlred dlllgence ln ascerLalnlng Lhe legal sLaLus of LlLle, Lhey
should be consldered as lnnocenL purchasers for value and ln good
falLh.rlorlLy ln Llme" prlnclple lnvoked by nC88 refers Lo AcL 3344, noL
Lhe 1orrens sysLem.

Doctr|ne:

8U1 SLL: c$0$, 01 2*3#4 *5 677&$,'8 DJC <2)6 =E9 ?9EE:A.

c$0$, 01 2*3#4 *5 677&$,'

Iacts: unreglsLered parcel of land was sold by ldelfonso Lo Cregorlo ln
1969. Cregorlo sold lL Lo oLher people, who Lhen Look possesslon. ln
comes !uanlLa who was able Lo obLaln an CC1 ln her name, saylng Lhe
same land was sold Lo her by ldelfonso ln 1972. 8emember LhaL boLh
lnlLlal conveyances were made whlle land was unreglsLered.

Issue: WheLher or noL Cregorlo has beLLer rlghL over !uanlLa.

ne|d: ?LS. 1he land was unreglsLered under Lhe 1orrens sysLem aL Lhe
Llme of Lhe flrsL sale. 1he appllcable law ls AcL 3344, under whlch
reglsLraLlon by flrsL buyer under Lhe 8eglsLer of ueeds ls consLrucLlve
noLlce Lo Lhe second buyer. So Lhe laLLer cannoL be deemed ln good
falLh. !uanlLa havlng been able Lo obLaln an CC1 ln her name does noL
cleanse her LlLle of Lhe defecL carrled under Lhe provlslons of AcL 3344.

Doctr|ne:

C. 1ests App||cab|e under Art|c|e 1S44:
coveot emptot requlres Lhe buyer Lo be aware of Lhe supposed
LlLle of Lhe seller and he who buys wlLhouL checklng Lhe seller's
LlLle Lakes all Lhe rlsks and losses consequenL Lo such fallure.
!2$#$^8 _#1 01 \$3#&4$8 =EC <2)6 @ ?=;J=A1
1he provlslon on double sale presumes LlLle or ownershlp Lo
pass Lo flrsL buyer, excepLlon belng: (a) when Lhe second buyer,
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
ln good falLh, reglsLers Lhe sale ahead of Lhe flrsL buyer, and (b)
should Lhere be no lnscrlpLlon by elLher of Lhe Lwo buyers, when
Lhe second buyer, ln good falLh, acqulres possesslon of Lhe
properLy ahead of Lhe flrsL buyer. unless, Lhe second buyer
saLlsfles Lhese requlremenLs, LlLle or ownershlp wlll noL Lransfer
Lo hlm Lo Lhe pre[udlce of Lhe flrsL buyer." !2*#*.&, 01 2*3#4 *5
677&$,'8 9:C <2)6 => ?=;;:A1
ln splLe of Lhe Lhree levels of LesLs provlded under ArLlcle 1344,
Lhe CourL seems Lo recognlze only reglsLraLlon ln good falLh by
Lhe second buyer and does noL characLerlze Lhe meanlng of Lhe
lasL Lwo LesL of possesslon and oldesL LlLle. 2$#B,,* 01 2*3#4 *5
677&$,'8 >EC <2)6 :: ?9EE:A.

2$#B,,* 01 2*3#4 *5 677&$,'

Iacts: 8oLh Conazales and uabons clalm Lo have boughL Lhe land from
ArlsLoLle Manlo. ln llLglLaLlng agalnsL Manlo's alleged aLLorneys-ln-facL
for Lhe lssuance of Lhe deed of sale, Conzales never lmpleaded Manlo
hlmself, or Lhe uabons. CourL orders were lssued ln favor of Conzales
for execuLlon of deed of sale as well as lssuance of 1C1 ln her name.

Issue: WheLher or noL Lhe uabons have a rlghL Lo seek annulmenL of Lhe
courL order.

ne|d: ?LS. 1here was exLrlnslc fraud as Lhe necessary parLles ln lnLeresL
were noL glven Lhelr day ln courL. uabons may seek annulmenL of Lhe
courL orders. Cn Lhe lssue of double sale, courL ouLllned Lhe provlslons
of ArLlcle 1344 and sLressed LhaL ln order for Lhls provlslon Lo be avalled
of, Lhere musL have been boLh acqulslLlon ln good falLh and reglsLraLlon
ln good falLh. Case was remanded.

Doctr|ne:

1. Ma|n ku|e under Art|c|e 1S44: R#B*# "&^7*#&8 R#B*# _3#&1
2$#S*.&,, 01 2*3#4 *5 677&$,'8 :; <2)6 ;; ?=;@:A.
1


2$#S*.&,, 01 2*3#4 *5 677&$,'

Iacts: onclo was owner of land morLgaged Lo bank. Pe offered Lo sell
Lo Carbonell, who accepLed and applled for assumpLlon of morLgage.
LaLer on, onclo lnformed Carbonell LhaL he could no longer conLlnue
wlLh Lhelr sale because he'd already sold Lhe same land Lo one lnfanLe.
upon learnlng Lhls, Carbonell reglsLered an adverse clalm. SubsequenLly,
lnfanLe reglsLered her deed of sale. 1C1 was lssued ln lnfanLe's name
buL wlLh annoLaLlon of Lhe adverse clalm of Carbonell.

Issue: Who has a beLLer clalm?

ne|d: CA88CnLLL. When Carbonell's sale was perfecLed, she was ln
good falLh because onclo was Lhe owner. Per good falLh dld noL cease
even when she reglsLered Lhe adverse clalm, noLwlLhsLandlng
knowledge of Lhe second sale Lo lnfanLe. lnfanLe, on Lhe oLher hand,
was ln bad falLh because she acLually knew of Lhe flrsL sale.
lurLhermore, she was aware of an adverse clalm on Lhe land when she
reglsLered lL. Carbonell was also ln possesslon of Lhe land when lnfanLe

1
1ooqloo v. lotooqoo, 333 SC8A 123 (2007), colmo v. 5ootos, 390 SC8A 339
(2009).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
boughL lL, so Lhe laLLer should have lnqulred.

Doctr|ne:

D. kequ|s|tes for App||cat|on of Art|c|e 1S44 |n case of a Doub|e Sa|e:
2M&.F 01 T&.$4*, 300 SCkA 722 (1998).
1


2M&.F 01 T&.$4*

Iacts: CenaLo owned 2 parcels of land ln aradlse larms. Pe agreed
wlLh Lhe ua !ose spouses Lo enLer lnLo a conLracL Lo sell over Lhe sald
parcels, lL was embodled ln a publlc lnsLrumenL annoLaLed Lo Lhe
cerLlflcaLes of LlLle. 1hey asked for and were granLed an exLenslon for
Lhe paymenL of Lhe purchase prlce. unknown Lo Lhem, CenaLo dealL
wlLh Cheng regardlng Lhe loL, execuLed an AffldavlL Lo annul Lhe
ConLracL Lo Sell, appralsed Lhe laLLer of hls declslon Lo resclnd Lhe sale,
and recelved a down paymenL from Cheng upon Lhe guaranLee LhaL Lhe
sald conLracL Lo sell wlll be annulled. 8y chance, CenaLo and Lhe spouses
meL aL Lhe 8u, where he agaln agreed Lo conLlnue Lhe conLracL wlLh
Lhem. Pe advlsed Cheng of hls declslon, Lhe laLLer counLered LhaL Lhe
sale had already been perfecLed. Cheng execuLed an AffldavlL of
Adverse Clalm and had lL annoLaLed Lo Lhe 1C1s and sued for speclflc
performance.

Issue: Who has beLLer LlLle?


1
keltetoteJ lo Moctoo-cebo lotetootloool Altpott Aotbotlty v. 1ltol, 388 SC8A
633 (2009).
ne|d: uA !CSL SCuSLS. 8oLh agreemenLs lnvolve a conLracL Lo sell,
whlch makes ArLlcle 1344 lnappllcable slnce nelLher a Lransfer of
ownershlp nor a sales LransacLlon Look place. A conLracL Lo sell ls
premlsed upon a suspenslve condlLlon-Lhe full paymenL of Lhe
purchase prlce. 1haL belng Lhe case, Lhe elemenLary prlnclple of flrsL ln
Llme, prlorlLy ln rlghL should apply. As such, Lhe conLracL ln favor of Lhe
ua !ose spouses musL prevall conslderlng LhaL Lhe same had noL been
valldly resclnded. 8esldes, Cheng cannoL be consldered Lo have acLed ln
good falLh as he had knowledge of Lhe prlor LransacLlon ln favor of Lhe
spouses.
2


Doctr|ne: 8equlslLes for uouble Sale:
(a) 1he Lwo (or more) sales LransacLlons ln lssue musL perLaln Lo exacLly
Lhe same sub[ecL maLLer, and musL be valld sales LransacLlons.
(b) 1he Lwo (or more) buyers aL odds over Lhe rlghLful ownershlp of Lhe
sub[ecL maLLer musL each represenL confllcLlng lnLeresLs, and
(c) 1he Lwo (or more) buyers aL odds over Lhe rlghLful ownershlp of Lhe
sub[ecL maLLer musL each have boughL from Lhe very same seller

1. 1here Must 8e 1wo D|fferent Va||d Sa|esd ArLlcle 1344 does noL
apply where:
1here ls only one valld sale, whlle Lhe oLher sale over Lhe same
properLy ls vold. Y3%*4 01 2$44,&+$ \$.%8 W.I18 >CC <2)6 C>E
?9EE@Ab
3
or

2
AnLonlo, PlpollLo, lmperlal & Zaragosa. (2012). Salse CLv Case ulgesLs.
8eLrleved from hLLp://www.scrlbd.com/doc/104486360/Sales-CLv-Case-
ulgesLs
3
spltlto v. voletlo, 9 SC8A 761 (1963), kemoloote v. 1lbe, 138 SC8A 138
(1988), uelflo v. volJez, 302 SC8A 24 (2006).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
ArLlcle 1344 wlll noL apply when one conLracL ls LhaL of sale, and
Lhe oLher ls a conLracL Lo sell. SLrlcLly speaklng, ln a conLracL Lo
sell, Lhere ls sLlll no Lransfer of ownershlp lnvolved. <$. \*#&.O*
K&01 2*#71 01 2*3#4 *5 677&$,', DD; <2)6 ;; ?9EE>A.
1


<$. \*#&.O* K&01 2*#71 01 2*3#4 *5 677&$,'

Iacts: Spouses Lu owned 2 parcels of land, whlch Lhey purporLedly sold
Lo 8abasanLa. Pe demanded Lhe execuLlon of a llnal ueed of Sale ln hls
favor so he may effecL full paymenL of Lhe purchase prlce, however, Lhe
spouses decllned Lo push Lhrough wlLh Lhe sale. 1hey clalmed LhaL when
he requesLed for a dlscounL and Lhey refused, he resclnded Lhe
agreemenL. 1hus, 8abasanLa flled a case for Speclflc erformance. San
Lorenzo uevelopmenL Corp. (SLuC) lnLervened clalmlng LhaL Lhe loLs
have been sold Lo lL by vlrLue of a ueed of AbsoluLe Sale wlLh MorLgage
and LhaL lL was a purchaser ln good falLh. 8oLh sales were noL
reglsLered.

Issue: Who has beLLer LlLle?

ne|d: SLuC. 1here was no double sale ln Lhls case because Lhe conLracL
ln favor of 8abasanLa was a mere conLracL Lo sell, hence, ArL. 1344 ls noL
appllcable. 1he ownershlp of Lhe properLy was noL Lo be LransmlLLed ln
hls favor unLll Lhe full paymenL of Lhe purchase prlce. 1here was nelLher
acLual nor consLrucLlve dellvery as hls LlLle ls based on a mere recelpL.
8ased on Lhls alone, Lhe rlghL of SLuC musL be preferred.


1
1ottecompo v. AlloJoqoo, 5t., 317 SC8A 84 (2007).
Doctr|ne: SLuC has a beLLer rlghL. ArLlcle 1344 does nC1 apply where
one of Lhe conLracL ls a conLracL Lo sell.

Doctr|ne on Cond|t|ona| Sa|es]Contracts to Se|| and Adverse
C|a|ms:

Contract of Sa|e Contract to Se||
1lLle passes Lo Lhe vendee
upon Lhe dellvery of Lhe Lhlng
sold
8y agreemenL Lhe ownershlp ls
reserved ln Lhe vendor and ls noL Lo
pass unLll Lhe full paymenL of Lhe prlce
1he vendor has losL and
cannoL recover ownershlp
unLll and unless Lhe conLracL
ls resolved or resclnded
1lLle ls reLalned by Lhe vendor unLll Lhe
full paymenL of Lhe prlce, such
paymenL belng a poslLlve suspenslve
condlLlon and fallure of whlch ls noL a
breach buL an evenL LhaL prevenLs Lhe
obllgaLlon of Lhe vendor Lo convey LlLle
from becomlng effecLlve

L&.%*O$ 01 N$,$]8 D9 RMB,1 9C: ?=;9=A

L&.%*O$ 01 N$,$]

Iacts: Mendoza flled a peLlLlon for Lhe reglsLraLlon of a parcel of land he
purchased from CaneL by way of an absoluLe sale. kalaw opposed
sLaLlng LhaL he boughL Lhe same sub[ecL maLLer from CaneL (by way of a
condlLlonal sale).

Issue: Who has beLLer LlLle?
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


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

ne|d: MLnuCZA. 1wo sales were execuLed, a condlLlonal sale and an
absoluLe sale. AcLual possesslon was obLalned by Mendoza flrsL.
Mendoza also fully pald Lhe purchase prlce, whlle kalaw's paymenL
depended upon Lhe performance of cerLaln condlLlons menLloned ln Lhe
conLracL of sale. A condlLlonal sale, before Lhe performance of Lhe
condlLlon, can hardly be sald Lo be a sale of properLy. ArLlcle 1473 (now
ArLlcle 1344) wlll noL be appllcable.

Doctr|ne:

6%$,B. 01 2*3#4 *5 677&$,', 9JE <2)6 >C: ?=;;@A.

6%$,B. 01 2*3#4 *5 677&$,'

Iacts: Llena kado and her slbllngs owned a loL wlLh a 3-door commerclal
bulldlng fronLlng lmperlal PoLel. 1he unlLs were leased. Llena conLracLed
Lhe servlces of 8auLlsLa, who broughL ?u and Llm Lo her for Lhe purpose
of buylng Lhe premlses. uurlng Lhe meeLlng, lL was agreed LhaL Lhe ?u
and Llm would buy Lhe sald unlLs excepL for Lhe 3Lh whlch ls Lo be
boughL by Adalln. 1hey enLered lnLo a CondlLlonal Sale where Llena was
obllgaLed Lo evlcL Lhe LenanLs before Lhe full paymenL of Lhe purchase
prlce. Llena offered Lhe same for sale Lo Lhe lessees buL Lhey refused
clalmlng LhaL Lhey could noL afford, Lhus, she flled a case for e[ecLmenL
agalnsL Lhem. 1hereafLer, Lhe lessees declded Lo exerclse Lhelr rlghL Lo
buy Lhe unlLs-kalaw ruled LhaL slnce Lhe sale Lo ?u and Llm was
condlLlonal, Lhe subsequenL sale Lo Lhe lessees musL be preferred.

Issue: Who has beLLer LlLle?

ne|d: ?u Anu LlM. Llena, ln behalf of kado slbllngs, already commlLLed
Lo sell Lhe properLy Lo ?u and Llm and LoreLo Adalln. She undersLood
her obllgaLlon Lo e[ecL Lhe LenanLs on Lhe sub[ecL properLy. aymenL of
balance was sub[ecL Lo Lhe condlLlon LhaL she would secure evlcLlon of
LenanLs. Sale LransacLlon noL yeL compleLe and boLh sellers and buyers
have respecLlve obllgaLlons Lo be fulfllled-buyers, pay prlce, sellers,
e[ecLmenL. ueed of CondlLlonal Sale may be an accuraLe denomlnaLlon
of Lhe LransacLlon, and Lhe cholce of who Lo sell Lhe properLy Lo had
already been made by Lhe sellers and no longer sub[ecL Lo any
condlLlon. Sale made by Llena Lo ?u and Llm (consldered by Lhe CourL) ls
absoluLe.

CourL ruled LhaL no amounL of legal raLlonallzlng can sancLlon Lhe
breach of conLracL. Llena commlLLed ln accepLlng offer afLer havlng
earller sold properLy Lo ?u and Llm.

SubsequenL sale smacks of bad falLh conslderlng Lhe LenanLs knew of
negoLlaLlons beLween Llena and ?u Llm.

ueed of CondlLlonal Sale (?u, Llm and kado) was glven preference over
Lhe ueed of Sale of 8eglsLered Land (Carlos, Co and kado).

Doctr|ne:

o 1he rules on double sales under ArLlcle 1344 are noL
appllcable Lo conLracL Lo sell, because of Lhe
clrcumsLances LhaL musL concur ln order for Lhe
provlslons Lo ArLlcle 1344 on double sales Lo apply,
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
namely LhaL Lhere musL be a valld sales LransacLlons,
and buyers musL be aL odds over Lhe rlghLful ownershlp
of Lhe sub[ecL maLLer who musL have boughL from Lhe
very same seller, are lacklng ln a conLracL Lo sell for
nelLher a Lransfer of ownershlp nor a sales LransacLlon
has been consummaLed, and such conLracL ls blndlng
only upon Lhe fulflllmenL or non-fulflllmenL of an evenL.
neverLheless, Lhe govern|ng pr|nc|p|e of ArLlcle 1344
should apply, malnly Lhe governlng prlnclple of ptlmos
tempote,pottlot jote (flrsL ln Llme, sLronger ln rlghL).
2M&.F 01 T&.$4*8 CEE <2)6 @99 ?=;;JA.
When Lhe seller sold Lhe same properLles Lo Lwo buyers, flrsL Lo
Lhe respondenL and Lhen Lo vllorla on Lwo separaLe occaslons,
Lhe second sale was noL vold for Lhe sole reason LhaL peLlLloner
had prevlously sold Lhe same properLles Lo respondenL. 1hls
case lnvolves a double sale as Lhe dlspuLed properLles were sold
valldly on Lwo separaLe occaslons by Lhe same seller Lo Lhe Lwo
dlfferenL buyers ln good falLh. K& \&*. 01 U.F8 :== <2)6 CJ=8
CJJ ?9E=EA1

2. Lxact Same Sub[ect Matter
ArLlcle 1344 applles where Lhe same Lhlng ls sold Lo dlfferenL
buyers by Lhe same seller. !U.F 01 U$,'B^$.8 DJ> <2)6 D:D
?9EE:Ab and Lherefore does noL apply where Lhere was a sale Lo
one parLy of Lhe land lLself whlle Lhe oLher conLracL was a mere
promlse Lo sell Lhe land or aL mosL an acLual asslgnmenL of Lhe
rlghLs Lo repurchase Lhe same land. !KB'IM*'* 01 )*!$'8 > <2)6
@J= ?=;:9A1

3. Lxact Same Se||er for 8oth Sa|es
ArLlcle 1344 applles where Lhe some tbloq ls solJ Lo dlfferenL
vendees by tbe some veoJot. lL does noL apply where Lhe same
Lhlng ls sold Lo dlfferenL vendees by dlfferenL vendors.or even
Lo Lhe same buyer buL by dlfferenL sellers. <$,&#$ 01 )*%$V&8 >CE
<2)6 DC98 DCJ ?9EE@A1
=

ArLlcle 1344 on double sales has no appllcaLlon ln cases where
Lhe sales lnvolved were lnlLlaLed noL by [usL one vendor buL by
several successlve vendors. L$I4$.G2&S3 W.4&#.$4B*.$, 6B#7*#4
634M*#B4+ 01 "B#*,8 >JJ <2)6 :C> ?9EE;A1
lor ArLlcle 1344 Lo apply, lL ls necessary LhaL Lhe conveyance
musL have been made by a parLy who has an exlsLlng rlghL ln Lhe
Lhlng and Lhe power Lo dlspose of lL. lL cannoL be lnvoked where
Lhe Lwo dlfferenL conLracLs of sale are made by Lwo dlfferenL
persons, one of Lhem noL belng Lhe owner of Lhe properLy sold.
And even lf Lhe sale was made by Lhe same person, lf Lhe
second sale was made when such person was no longer Lhe
owner of Lhe properLy, because lL had been acqulred by Lhe flrsL
purchaser ln full domlnlon, Lhe second purchaser cannoL acqulre
any rlghL. 2*.'*,B%$4&% )3#$, -$./ ?2$F$+$. a$,,&+A8 W.I1 01
2*3#4 *5 677&$,', 448 SCkA 347 (200SA8
9
IB4B.F aB,,$.3&0$8
RMB,B77B.& \$] *. <$,&' =EE ?=;;>A

2*.'*,B%$4&% )3#$, -$./ ?2$F$+$. a$,,&+A8 W.I1 01 2*3#4 *5 677&$,'

Iacts: 1he Madrld 8roLhers owned a parcel of land, whlch was laLer

1
Ooq v. Oloslmoo, 483 SC8A 464 (2006).
2
CollotJo v. CollotJo, 46 C.C. no. 11 p. 3368, 5lqoyo v. Moyoqo, 467 SC8A 341,
337 (2003).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
subdlvlded. 8lzal Madrld sold hls share Lo Camalo and uayag, Lhe oLher
broLhers offered no ob[ecLlon. 1he sale was noL reglsLered under Lhe
1orrens SysLem. Camalo and uayag sold Lhe souLhern half Lo 1eodoro,
and Lhe norLhern half Lo Pernandez, who LhereafLer donaLed Lhe same
Lo hls daughLer. 1hey all malnLalned possesslon of Lhe properLles. LaLer
on, Lhe broLhers all sold Lhelr shared Lo Marquez who furLher
subdlvlded Lhe same, reglsLered Lhe lands, and morLgaged porLlons
Lhereof Lo ConsolldaLed 8ank and 8ank of Cauayan. lor fallure Lo seLLle
hls debL, C8 foreclosed Lhe properLy. 1he successors-ln-lnLeresL of
Camlao and uayag soughL reconveyance. C8 lnLerposed LhaL Lhe
morLgage musL be respecLed.

Issue: Who has a beLLer LlLle, Marquez or Lhe successors-ln-lnLeresL of
Camlao and uayag?

ne|d: 1PL SuCCLSSC8S-ln-ln1L8LS1 Cl CAMlAC Anu uA?AC. ArLlcle
1344 does noL apply as Lhe double-mulLlple sales were noL done by Lhe
slngle vendor - ln Lhls case by Lhe broLhers on Lhe one slde and Camlao
and uayag on Lhe oLher. 1haL belng Lhe case, Lhe slmple rule on prlorlLy
ln Llme, prlorlLy ln rlghL would apply. As such, Lhe successors-ln-lnLeresL
of Camlao and uayag would have a beLLer rlghL as Lhe sale ln Lhelr favor
came ahead of Llme. lurLher, Marquez was noL ln good falLh. Pe knew
LhaL Lhe properLy was belng clalmed by oLher parLles who were ln
possesslon Lhereof lnsLead, he wlllfully closed hls eyes Lo Lhe posslblllLy
of Lhe flaws.

4. 1he 1wo Cr More 8uyers At Cdds Cver 1he k|ghtfu| Cwnersh|p
Cf 1he Sub[ect Matter Must Lach kepresent Conf||ct|ng
Interests
no appllcaLlon when Lhe covered valld conLracLs are noL yeL
demandable sales, such as when one or boLh Lhe conLracLs ln
dlspuLe are conLracLs Lo sell. L&.%*O$ 01 N$,$]8 ?D9 RMB,1 9C:A

L. keg|strat|on |n Good Ia|th as I|rst r|or|ty
1. Mean|ng of "keg|strat|on"
1he annoLaLlon of adverse clalm can quallfy as Lhe reglsLraLlon
mandaLed under Lhe rules on double sale. 2$#S*.&,, 01 2*3#4 *5
677&$,'8 :; <2)6 ;; ?=;@:A1
8eglsLraLlon means any enLry made ln Lhe books of Lhe reglsLry,
lncludlng boLh reglsLraLlon ln lLs ordlnary and sLrlcL sense, and
cancellaLlon, annotat|on, and even marg|na| notes. lL ls Lhe
enLry made ln Lhe reglsLry whlch records solemnly and
permanenLly Lhe rlghL of ownershlp and oLher real rlghLs.
!2M&.F 01 T&.$4*8 CEE <2)6 @99 ?=;;JA1
=

o ueclaraLlon of purchase for LaxaLlon purposes does noL
comply wlLh Lhe requlred reglsLraLlon, and Lhe facL
alone does noL even lLself consLlLuLe evldence of
ownershlp1 !-$+*I$ 01 c*F$,&'8 CDE <2)6 =>D ?9EEEA1
o 8eglsLraLlon of Lhe LxLra-[udlclal arLlLlon whlch merely
menLlons Lhe sale ls noL Lhe reglsLraLlon covered under
ArLlcle 1344 and cannoL prevall over Lhe reglsLraLlon of
Lhe pocto Je tetto sale. !a%$1 %& 6,I$.4$#$ 01 2*3#4 *5
677&$,'8 9>9 <2)6 D>@ ?=;;:A1
1here can be no consLrucLlve noLlce Lo Lhe second buyer
Lhrough reglsLraLlon under AcL 3344 lf Lhe properLy ls reglsLered
under Lhe 1orrens sysLem." !6^*%B$ a%$1 K& L&,&.IB*. 01

1
ulep v. coott of Appeols, 472 SC8A 241 (2003).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
2*3#4 *5 677&$,'8 >CD <2)6 :98 J9 ?9EE@A8 4M&#&S+ *0&#43#.B.F
*SB4&# B. <$.4B$F* 01 2*3#4 *5 677&$,'8 9D@ <2)6 CC: ?=;;>A1

91 keg|strat|on Must A|ways 8e |n Good Ia|th
WhaL maLLers ls lf Lhe buyer reglsLers ln good falLh. lf he buys ln
good falLh, buL subsequenLly reglsLers ln bad falLh, he wlll noL
have a beLLer LlLle, even lf he reglsLers flrsL.
o Cood falLh " means no noLlce of defecL ln LlLle of Lhe
properLy sold. lor Lhe second buyer Lo be ln good falLh,
he musL noL know of Lhe prlor sale Lo Lhe flrsL buyer.
ln splLe of Lhe Lhree levels of LesLs provlded under ArLlcle 1344,
Lhe CourL seems Lo recognlze only reglsLraLlon ln good falLh by
Lhe second buyer and does noL characLerlze Lhe meanlng of Lhe
lasL Lwo LesLs of possesslon and oldesL LlLle. 2$#B,,* 01 2*3#4 *5
677&$,'8 >EC <2)6 :: ?9EE:A
ln cases of double sales of lmmovables, whaL flnds relevance
and maLerlallLy ls noL wheLher or noL Lhe second buyer was a
buyer ln good falLh or LhaL he was flrsL Lo reglsLer, buL wheLher
or noL sald second buyer reglsLers such second sale ln good
falLh, LhaL ls, wlLhouL knowledge of any defecL ln Lhe LlLle of Lhe
properLy sold. !L$#4B.&O 01 2*3#4 *5 677&$,'8 C>J <2)6 CJ
?9EE=A,
1
Lhls ls so because Lhe defense of lndefeaslblllLy of a
1orrens LlLle does noL exLend Lo a Lransferee who Lakes Lhe
cerLlflcaLe of LlLle ln bad falLh. !UII&g$ 01 Z'7*.B,,$8 DC= <2)6
==: ?9EEDA1

1
8looco v. klveto, 488 SC8A 148 (2006), Cobtlel v. Mobooto, 399 SC8A 373
(2003), ue lo ceoo v. 8tlooes, 308 SC8A 62 (2006), 1ooqloo v. lotooqoo, 333
SC8A 123 (2007), 8etootJez v. coott of Appeols, 333 SC8A 431 (2007), OtJoo
v. loeotebello, 622 SC8A 146 (2010).

3. know|edge of I|rst 8uyer of the Second Sa|e Does Not Amount
to keg|strat|on |n Iavor of the Second 8uyer.
lf Lhe flrsL buyer reglsLers Lhe sale desplLe knowlng abouL Lhe
second sale, he wlll sLlll have beLLer rlghL, provlded, LhaL Lhe
second buyer had noL reglsLered lL ln good falLh before Lhe flrsL
buyer's reglsLraLlon.
o ln double sales, Lhe flrsL buyer always has prlorlLy rlghLs
over subsequenL buyers of Lhe same properLy. 1he good
falLh of Lhe flrsL buyer remalns all LhroughouL desplLe
hls subsequenL acqulslLlon of knowledge of Lhe
subsequenL sale. NB.F' R#*7&#4B&' 2*#71 01 T$,B%*8 :E:
<2)6 =C@ ?9EE;A
lor Lhe second buyer Lo dlsplace Lhe flrsL, he musL prove LhaL he
acLed ln good falLh LhroughouL Lhe process, from acqulslLlon
unLll reglsLraLlon.
o knowledge galned by Lhe flrsL buyer of Lhe second sale
cannoL defeaL Lhe flrsL buyer's rlghLs excepL where Lhe
second buyer reglsLers ln qooJ foltb Lhe second sale
obeoJ of Lhe flrsL. Such knowledge of Lhe flrsL buyer
does noL bar her from avalllng of her rlghLs under Lhe
law, among Lhem, Lo reglsLer fltst her purchase as
agalnsL Lhe second buyer. 8uL lo coovetso, knowledge
galned by Lhe second buyer of Lhe flrsL sale defeaLs hls
rlghLs even lf he ls flrsL Lo reglsLer Lhe second sale, slnce
such knowledge LalnLs hls prlor reglsLraLlon wlLh bad
falLh. 1hls ls Lhe prlced exacLed by ArLlcle 1344 for Lhe
second buyer belng able Lo dlsplace Lhe flrsL buyer, LhaL
before Lhe second buyer can obLaln prlorlLy over Lhe
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
flrsL, be most sbow tbot be octeJ lo qooJ foltb
tbtooqboot (l.e., lo lqootooce of tbe fltst sole ooJ of tbe
fltst boyet's tlqbt) -ftom tbe tlme of ocpolsltloo ootll tbe
tltle ls ttoosfetteJ to blm by teqlsttotloo ot follloq
teqlsttotloo, by Jellvety of possessloo1f !`#$I$ 01 2*3#4
*5 677&$,'8 9@J <2)6 @E9 ?=;;@A1
=

ln a slLuaLlon where a parLy has acLual knowledge of Lhe
clalmanL's acLual, open and noLorlous possesslon of a dlspuLed
properLy aL Lhe Llme of reglsLraLlon, Lhe acLual noLlce and
knowledge are equlvalenL Lo reglsLraLlon, because Lo hold
oLherwlse would be Lo LoleraLe fraud and Lhe 1orrens sysLem
cannoL be used Lo shleld fraud - whlle cerLlflcaLes of LlLle are
lndefeaslble, unassallable and blndlng agalnsL Lhe whole world,
Lhey merely conflrm or record LlLle already exlsLlng and vesLed.
2*.'*,B%$4&% )3#$, -$./ ?2$F$+$. a$,,&+A8 W.I1 01 2*3#4 *5
677&$,', DDJ <2)6 CD@ ?9EE>A.

4. keg|strat|on |n Good Ia|th A|ways re-empts ossess|on |n
Good Ia|th - 8eLween Lwo purchasers, Lhe one who reglsLered
Lhe sale ln hls favor has a preferred rlghL over Lhe oLher who has
noL reglsLered hls LlLle, even lf Lhe laLLer ls ln acLual possesslon

1
ctoz v. cobooo, 129 SC8A 636 (1984), Cotmoltoo v. coott of Appeols, 200
SC8A 37 (1991), vJo. Je Iomoc v. coott of Appeols, 200 SC8A 74 (1991), 8ocoJ
v. coott of Appeols, 216 SC8A 423 (1992), 8etlco v. coott of Appeols, 223 SC8A
469 (1993), 8ootlsto v. coott of Appeols, 322 SC8A 294 (2000), 8ootlsto v. coott
of Appeols, 322 SC8A 294 (2000), ulep v. coott of Appeols, 472 SC8A 241
(2003), scoeto v. llm, 312 SC8A 411 (2007), lombtes v. 1obloJo, It., 316 SC8A
373 (2007), loJot v. cottleyo looJ, loc., 333 SC8A 330 (2007), 1ooqloo v.
lotooqoo, 333 SC8A 123 (2007).
of Lhe lmmovable properLy. !"$g&%* 01 2*3#4 *5 677&$,'8 9>9
<2)6 JE ?=;;:A1
2

1he reglsLraLlon of a sale afLer Lhe annoLaLlon of Lhe noLlce of lls
peoJeos does noL obllLeraLe Lhe effecLs of dellvery and
possesslon ln good falLh. 1he rules on consLrucLlve noLlce upon
reglsLraLlon provlded for under SecLlon 32 of Lhe roperLy
8eglsLraLlon uecree (.u. no. 1329) operaLe only from Lhe Llme
of Lhe reglsLraLlon of Lhe noLlce of lls peoJeos whlch ln Lhls case
was effecLed only afLer Lhe Llme Lhe sale ln favor of Lhe second
buyer had long been consummaLed by dellvery of Lhe sub[ecL
maLLer. <$. \*#&.O* K&01 2*#71 01 2*3#4 *5 677&$,'8 DD; <2)6
;; ?9EE>A1

I. ossess|on kefers 8oth to Mater|a| and Symbo||c ossess|on
ln Lhe absence of lnscrlpLlon under double sales, Lhe law glves
preferenLlal rlghL Lo Lhe buyer who ln good falLh ls flrsL ln
possesslon, under Lhe followlng [urlsprudenLlal parameLers:
1. ossesslon menLloned ln ArLlcle 1344 lncludes noL only maLerlal
buL also symbollc possesslon,
2. ossessors ln good falLh are Lhose who are noL aware of any
flaw ln Lhelr LlLle or mode of acqulslLlon,
3. 8uyers of real properLy LhaL ls ln Lhe possesslon of persons
oLher Lhan Lhe seller musL be wary - Lhey musL lnvesLlgaLe Lhe
rlghLs of Lhe possessors, and
4. Cood falLh ls always presumed, upon Lhose who allege bad falLh
on Lhe parL of Lhe possessors resLs Lhe burden of proof.
!"&. Y*#4+ )&$,4+ $.% K&01 2*#71 01 2#3O8 D=E <2)6 DJD ?9EECA1
=


2
lloo v. coott of Appeols, 323 SC8A 430 (2000), 1olosoo v. 1oyoq, 336 SC8A
263 (2001), uooz v. xcbovez, 333 SC8A 637 (2007).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


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

G. Who |s urchaser |n Good Ia|th?
ln Lhe deLermlnaLlon of wheLher or noL a buyer ls ln good falLh,
Lhe polnL ln Llme Lo be consldered ls Lhe momenL when Lhe
parLles acLually enLered lnLo Lhe conLracL of sale. Z'4$4& *5 \B.*
U,$F3&# 01 U.FV*I*8 >:C <2)6 C@C ?9EEJA.

Z'4$4& *5 \B.* U,$F3&# 01 U.FV*I*

Iacts: AdmlnlsLraLors of Lhe Llno Claguer's (deceased) esLaLe sold
parcels of lands (lncludlng LoL 76) Lo 8acanl. 1he laLLer sold back LoL 76
Lo Lhe admlnlsLraLors. LaLer on, a 1C1 for Lhe land was lssued Lo Lduardo
and Cllvla (Lhe admlnlsLraLors). !ose, husband of Cllvla, sold porLlons of
Lhe same land Lo Cng[oco. 1here were 2 deeds of sale for each
LransacLlon. Claguer's esLaLe flled annulmenL case agalnsL Cng[oco eL al.

Issue: WheLher or noL Cng[oco was a buyer ln good falLh

ne|d: nC. WlLh respecL Lo LoLs 1 and 2, he cannoL be consldered a buyer
ln good falLh slnce Lhere was no proof LhaL Lhe sale on boLh loLs was
evldenced by a wrlLLen power of aLLorney. Accordlng Lo Agency Law, a
sale of a plece of land musL be coupled wlLh a wrlLLen auLhorlLy of such
agenL, else Lhe sale ls vold. Slnce Lhe respondenL was noL able Lo show
proof LhaL Lhere really was an exlsLlng wrlLLen auLhorlLy, Lhe sale over
such loLs cannoL be consldered valld, and musL be reLurned Lo Lhe
LsLaLe of Llno Claguer.

1
5oocbez v. komos, 40 hll. 614 (1919), Oolmsoo v. kosete, 87 hll. 139 (1930),
Noveto v. coott of Appeols, 184 SC8A 384 (1990).

WlLh respecL Lo LoLs 76-u Lo 76-C, Lhere was a noLarlzed general power
of aLLorney Lo show evldence LhaL auLhorlLy had been glven by vlrglllo
Lo hls faLher Lo dlspose Lhe sub[ecL loLs. Slnce peLlLloners was noL able
Lo show any proof LhaL Lhe loLs belng sold Lwlce Lo respondenL show
bad falLh, good falLh musL be presumed. 8elng noLarlzed, Lhe regularlLy
of such general power of aLLorney musL also be presumed.

Doctr|ne: ln Lhe deLermlnaLlon of wheLher or noL a buyer ls ln good
falLh, Lhe polnL ln Llme Lo be consldered ls Lhe momenL Lhe parLles
acLually enLered lnLo Lhe conLracL of sale.

1. kequ|s|tes of Good Ia|th:
a. no noLlce LhaL anoLher person as a rlghL Lo or lnLeresL ln
Lhe properLy
b. MusL Pave ald rlce ln lull
o A purchaser ls good falLh ls one who buys properLy of
anoLher, wlLhouL noLlce LhaL some oLher person has a
rlghL Lo, or lnLeresL ln, such properLy ooJ poys o foll ooJ
folt ptlce fot tbe some ot tbe tlme of socb potcbose, or
before he has noLlce of Lhe clalm or lnLeresL of some
oLher person ln Lhe properLy. "$.F,$* 01 R$#3.F$*8 >C>
<2)6 =9C ?9EE@)
2


2
Aqtlcoltotol ooJ nome xteosloo uev. v. coott of Appeols., 213 SC8A 336
(1992), veloso v. coott of Appeols, 260 SC8A 393 (1996), 8olotbot v. coott of
Appeols, 261 SC8A 128 (1996), Motboy v. coott of Appeols, 293 SC8A 336
(1998), uloz-uootte v. Ooq, 298 SC8A 388 (1998), lloo v. coott of Appeols, 323
SC8A 430 (2000), 1ooooqoo v. 5omsoo, 382 SC8A 130 (2002), uolvetsol kobloo
5oqot Mlllloq cotp. v. nelts of Aoqel 1eves, 389 SC8A 316 (2002), Aqoltte v.
coott of Appeols, 421 SC8A 310 (2004), Colvez v. coott of Appeols, 483 SC8A
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o under ArLlcle 1344, mere reglsLraLlon ls noL enough Lo
acqulre a new LlLle. Cood falLh musL concur. Clearly,
when Lhe buyer has noL yeL fully pald Lhe purchase
prlce, and as long as seller remalns unpald, Lhe buyer
cannoL felgn good falLh. !R*#4BI 01 2#B'4*S$,8 >D: <2)6
>@@ ?9EE>A1
8U1 SLL: ln Lhe deLermlnaLlon of wheLher or noL Lhe buyer ls ln
good falLh, Lhe polnL ln Llme Lo be consldered ls Lhe momenL
when Lhe parLles acLually enLered lnLo Lhe conLracL of sale.
Z'4$4& *5 \B.* U,$[3&# 01 U.FV*I*8 >:C <2)6 C@C ?9EEJA1

2. 8urden of roof - 1he burden of provlng Lhe sLaLus of a
purchaser ln good falLh lles upon hlm who asserLs LhaL sLaLus. lL
ls noL sufflclenL Lo lnvoke Lhe ordlnary presumpLlon of good
falLh, LhaL ls, LhaL everyone ls presumed Lo have acLed ln good
falLh, slnce Lhe good falLh LhaL ls here essenLlal ls lnLegral wlLh
Lhe very sLaLus LhaL musL be esLabllshed. !"$.F,$* 01
R$#3.F$*8 >C> <2)6 =9C ?9EE@A1
1

As a general rule, Lhe quesLlon of wheLher or noL a person ls a
purchaser ln good falLh ls a facLual maLLer LhaL wlll noL be
delved lnLo by Lhls CourL, slnce only quesLlons of law may be

346 (2006), cboo v. 5otlooo, 321 SC8A 68 (2007), koymooJo v. 8ooJooq, 326
SC8A 314 (2007), ue leoo v. Ooq, 611 SC8A 381 (2010), kloqs ltopettles cotp.
v. CollJo, 606 SC8A 137 (2009), 1be nelts of komooo 5oves v. 1be nelts of
scolostlco 5oves, 632 SC8A 236 (2010).
1
1sol v. coott of Appeols, 366 SC8A 324 (2001), Aqoltte v. coott of Appeols, 421
SC8A 310 (2004), koymooJo v. 8ooJooq, 326 SC8A 314 (2007), oqle keolty
cotp. v. kepobllc, 337 SC8A 77 (2008), loJoJeto v. Moqollooes, 633 SC8A 332
(2010).
ralsed ln peLlLlons for revlew. "B* 01 6S$+$4$8 >>: <2)6 =@>
?9EEJA1
8U1 SLLd lL ls anxlomaLlc LhaL good falLh ls always presumed ln
Lhe absence of any dlrecL evldence of bad falLh1 !<$.4B$F* 01
2*3#4 *5 677&$,'8 9D@ <2)6 CC: ?=;;>A

3. Instances When No Good Ia|th
a. 8e|ng In 8us|ness on kea|ty - A person ln Lhe realLy
buslness ([usL llke banks) ls charged wlLh exLraordlnary
dlllgence ln ascerLalnlng LhaL Lhere are no oLher persons
wlLh rlghLs over Lhe land.
! A morLgagee who evenLually ended buylng Lhe
properLy aL Lhe publlc aucLlon, cannoL clalm Lo
be a buyer ln good falLh when hls buslness ln
Lhe consLrucLlng and selllng Lownhouses and
exLendlng credlL Lo Lhe publlc, lncludlng real
esLaLe loans, for he ls charged wlLh greaLer
dlllgence LhaL ordlnary buyers or encumbrances
for value, because lL would be sLandard ln hls
buslness, as a maLLer of due dlllgence requlred
of banks and flnanclng companles, Lo ascerLaln
wheLher Lhe properLy belng offered as securlLy
for Lhe debL has already been sold Lo anoLher Lo
prevenL ln[ury Lo prlor lnnocenL buyers.
!Z!7#&''I#&%B4 YB.$.IB.F 2*#71 01 a&,$'I*8 D@C
<2)6 >@E ?9EE>A1
! A banklng lnsLlLuLlon ls expecLed Lo exerclse due
dlllgence before enLerlng lnLo a morLgage
conLracL, and Lhe ascerLalnmenL of Lhe sLaLuLe
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
or condlLlon of a proper offered Lo lL as securlLy
for a loan musL be a sLandard and lndlspensable
parL of lLs operaLlons, and lL cannoL slmply rely
upon revlewlng Lhe LlLle Lo Lhe properLy offered
for morLgage. "B* 01 6S$+$4$8 >>: <2)6 =@>
?9EEJA1
1

b. C|ose ke|at|onsh|p - lf Lhe buyer ls a chlld of Lhe seller,
or a close famlly frlend who llved ln Lhe same area, Lhey
are deemed Lo have known of Lhe clrcumsLances of Lhe
land and are Lhus, noL really Lhlrd parLles.
! 1he sale Lo one's daughLer and sons wlll glve
rlse Lo Lhe concluslon LhaL Lhe buyers, noL belng
really Lhlrd parLles, knew of Lhe prevlous sales
and cannoL be consldered ln good falLh. 1he
buyers are deemed Lo have consLrucLlve
knowledge by vlrLue of Lhelr relaLlonshlp" Lo
Lhelr sellers. !RB,$7B, 01 2*3#4 *5 677&$,'8 9>E
<2)6 >:: ?=;;>A1
c. Gross Inadequacy of r|ce - 1o be a badge of bad falLh,
Lhe prlce musL be grossly lnadequaLe or shocklng Lo Lhe
consclence such LhaL Lhe mlnd revolLs agalnsL lL and
such LhaL a reasonable man would nelLher dlrecLly or
lndlrecLly be llkely Lo consenL Lo lL1
! Mere lnadequacy of prlce ls noL lpso facLo a
badge of lack of good falLh-Lo be so, Lhe prlce
musL be grossly lnadequaLe or shocklng Lo Lhe

1
Aqoq v. Alpbo llooocloq cotp., 407 SC8A 602 (2003), 8ook of commetce v. 5oo
loblo, It., 322 SC8A 713 (2007), lloyJs otetptlses ooJ cteJlt cotp. v. uolletoo,
333 SC8A 142 (2008),1y v. Ooeeos kow 5obJlvlsloo, loc., 607 SC8A 324 (2009).
consclence such LhaL Lhe mlnd revolLs agalnsL lL
and such LhaL a reasonable man would nelLher
dlrecLly or lndlrecLly be llkely Lo consenL Lo lL.
"B* 01 6S$+$4$8 >>: <2)6 =@> ?9EEJA.
d. Cb||gat|on to Invest|gate or 1o Io||ow Leads - When
Lhere are cerLaln facLs whlch would puL a reasonable
man on guard and prompL hlm Lo lnvesLlgaLe Lhe
properLy, he ls expecLed Lo do so. AcLual lack of
knowledge of flaw ln LlLle ls noL enough lf Lhese facLs
exlsL1 L$4M$+ 01 2*3#4 *5 677&$,'8 9;> <2)6 >>: ?=;;JA
o A purchaser who ls aware of facLs whlch should puL a
reasonable man upon hls guard cannoL Lurn a bllnd eye
and laLer clalm LhaL he acLed ln good falLh, such as -
! A buyer of a reglsLered land would be ln bad
falLh when he purchases wlLhouL asklng Lo see
Lhe owner's copy of Lhe LlLle and/or wlLhouL
vlslLlng Lhe land where he would Lhen have seen
flrsL buyer occupylng Lhe same1 !<$.4B$F* 01
2*3#4 *5 677&$,'8 9D@ <2)6 CC: ?=;;>A1
2

! When Lhere are occupanLs Lo Lhe land belng
boughL, slnce lL ls Lhe common pracLlce ln Lhe
real esLaLe lndusLry, an ocular lnspecLlon of Lhe
premlses lnvolved ls a safeguard a cauLlous and
prudenL purchaser usually Lakes. !L$#4B.&O 01
2*3#4 *5 677&$,'8 C>J <2)6 CJ ?9EE=A1
3


2
k.k. loteJes v. colllooq, 317 SC8A 369 (2007), cboo v. 5otlooo, 321 SC8A 68
(2007).
3
Motboy v. coott of Appeols, 293 SC8A 336 (1998), kepobllc v. ue Cozmoo, 326
SC8A 267 (2000), nelts of komoo uotooo, 5t. v. uy, 344 SC8A 238 (2000), nelts
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
! Any person engaged ln buslness would be wary
of buylng from a company LhaL ls closlng shop,
because lL may be dlsslpaLlng lLs asseLs Lo
defraud credlLors. Such buyer ls bound Lo
lnqulre wheLher Lhe owners had unseLLled
obllgaLlons encumbrance LhaL could burden Lhe
properLy. !<$^'*. 01 2*3#4 *5 677&$,'8 9CJ
<2)6 C;@ ?=;;DA1
1

! 1he properLy was LlLled and Lransferred wlLh
undue hasLe wlLhln a shorL perlod of Llme, plus
Lhe facL LhaL Lhe sub[ecL properLy ls a vasL LracL
of land ln a prlme locaLlon, should have, aL Lhe
very leasL, Lrlggered peLlLloner's curloslLy."
Z$F,& )&$,4+ 2*#7 01 )&73S,BI8 >>@ <2)6 @@8 ;D
?9EEJA.
e. When there are st|pu|at|ons |n the deed show|ng bad
fa|th - ln a case, Lhe CourL held LhaL a sLlpulaLlon ln Lhe
deed of sale provldlng LhaL any losses whlch Lhe buyer
may lncur ln Lhe evenL Lhe LlLle Lurns ouL Lo be vesLed ln
anoLher person are Lo bo borne by Lhe buyer alone,
showed LhaL Lhe buyer dld noL purchase Lhe sub[ecL
maLLer ln good falLh wlLhouL noLlce of any defecL ln Lhe
LlLle of Lhe seller. \B^/&4/$B <*.' LB,,B.F8 W.I1 01 2*3#4
*5 677&$,'8 9>E <2)6 >9C ?=;;>A
f. Land |n Adverse ossess|on -

of celestlol v. nelts of celestlol, 408 SC8A 291 (2003), tososto, It. v. coott of
Appeols, 493 SC8A 319 (2006), ue lo ceoo v. 8tlooes, 308 SC8A 62 (2006),
1ooqloo v. lotooqoo, 333 SC8A 123, 132 (2007).
1
oqle keolty cotp v. kepobllc, 337 SC8A 77 (2008).
o When Lhe land ls ln possesslon of a Lhlrd person, Lhe
buyer should lnvesLlgaLe Lhe rlghLs of Lhose ln
possesslon. WlLhouL such lnqulry, Lhe buyer can hardly
be regarded as a buyer ln good falLh. )&73S,BI 01 K&
T3O^$.8 C9: <2)6 9:@ ?9EEEA1
o 8uyer who could noL have falled Lo know or dlscover
LhaL Lhe land sold Lo hlm was ln Lhe adverse possesslon
of anoLher ls a buyer ln bad falLh. !H&B#' *5 )$^*.
K3#$.*8 <#1 01 `+8 CDD <2)6 9CJ ?9EEEA.
2

g. Lx|stence of L|s endens or Adverse C|a|m -
o An annoLaLlon of lls peoJeos ls a noLlce Lo Lhe world
LhaL any rlghL LhaL anyone wlll acqulre over Lhe properLy
ls sub[ecL Lo Lhe resulL of Lhe sulL. )&73S,BI 01 K&
T3O^$.8 C9: <2)6 9:@ ?9EEEA1
o 8eglsLraLlon of an adverse clalm places any subsequenL
buyer of Lhe reglsLered land ln bad falLh. NB.F'
R#*7&#4B&' 2*#71 01 T$,B%*8 :E: <2)6 =C@ ?9EE;A1
o Genera| ku|e: SeLLled ls Lhe rule LhaL one who deals
wlLh properLy wlLh a noLlce of lls peoJeos, even when aL
Lhe Llme of sale Lhe annoLaLlon was cancelled buL Lhere
was a pendlng appeal, cannoL lnvoke Lhe rlghL of a

2
MoJloo v. coott of Appeols, 317 SC8A 696, 706 (1999), kepobllc v. ue
Cozmoo, 326 SC8A 267 (2000), Mottloez v. coott of Appeols, 338 SC8A 38
(2001), nelts of 1tlolJoJ Je leoo vJo. ue koxos v. coott of Appeols, 422 SC8A
101 (2004), Occeoo v. spoolllo, 431 SC8A 116 (2004), lN8 v. nelts of
stoolsloo Mllltot, 494 SC8A 308 (2006), koymooJo v. 8ooJooq, 326 SC8A 314
(2007), 1ooqloo v. lotooqoo, 333 SC8A 123 (2007), 1lo v. Aboyoto, 336 SC8A
173 (2008), OtJoo v. loeotebello, 622 SC8A 146 (2010), ueoooo v. Moq-obo,
622 SC8A 180 (2010), 1be nelts of komooo 5oves v. 1be nelts of scolostlco
5oves, 632 SC8A 236 (2010).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
purchaser ln good falLh. A purchaser cannoL close hls
eyes Lo facLs whlch should puL a reasonable man on
guard and clalm LhaL he acLed ln Lhe bellef LhaL Lhere
was no defecL ln Lhe LlLle of Lhe seller. !R* \$^ 01 2*3#4
*5 677&$,'8 C=: <2)6 @9= ?=;;;A1
! Lxcept|on: When knowledge of lls peoJeos was
acqulred aL Lhe Llme Lhere was order Lo have lL
cancelled1 !R* \$^ 01 2*3#4 *5 677&$,'8 CD@
<2)6 J: ?9EEEA.
1

h. Annotat|on of L|en |n Sett|ement of Lstate - An
annoLaLlon placed on new cerLlflcaLes of LlLle lssued
pursuanL Lo Lhe dlsLrlbuLlon and parLlLlon of a
decedenL's real properLles ls a warnlng Lo Lhlrd persons
on Lhe posslble lnLeresL of excluded helrs or unpald
credlLors ln Lhese properLles-where a buyer purchases
Lhe real properLy desplLe Lhe annoLaLlon, he musL be
ready for Lhe posslblllLy LhaL Lhe LlLle be sub[ecL Lo Lhe
rlghLs of excluded parLles. "$. 01 -&.*,B#$*8 :ED <2)6
C: ?9EE;A.

n. When Art|c|e 1S44 Does Not App|y, r|or|ty |n 1|me ku|e App||es
SlLuaLlons where ArLlcle 1344 wlll noL apply:
o noL all Lhe requlslLes are presenL
o 1he requlslLes are presenL, buL elLher Lhe flrsL Lo
reglsLer rule or flrsL Lo possess rule were noL complled
wlLh

1
loJoJeto v. Moqollooes, 633 SC8A 332 (2010).
ln Lhese cases, Lhe general rule of ltlos tempote, potlot jote
(rlorlLy ln Llme, prlorlLy ln rlghL) wlll apply.
o 1hls ls acLually Lhe maln rule for double sales1 2$#S*.&,,
01 2*3#4 *5 677&$,'8 :; <2)6 ;; ?=;@:A
o 1he rules ln ArLlcle 1344 only provlde for speclal rules
for cerLaln clrcumsLances.
1he prlorlLy conLemplaLed ln Lhls lnsLance ls LhaL of who
acqulred LlLle flrsL. 1he quesLlon Lo ask, Lherefore, ls who among
Lhe buyers had Lhe flrsL petfecteJ and vollJ conLracL of sale.

I. When Sub[ect of Sa|e Is Unreg|stered Land [c$$]$. 2*^^3.B4+
)3#$, -$./ 01 2*3#4 *5 677&$,', C;> <2)6 DC ?9EECA]
8ules on double sales for lmmovables under ArLlcle 1344 are
appllcable Lo unreglsLered land, buL only lnsofar as Lhey do noL
undermlne speclflc rules, such as Lhe wlLhouL pre[udlce Lo
beLLer rlghL" provlslon ln AcL no. 3344, now Sec. 113, .u. 1329.
1he rules ln double sale under ArLlcle 1344, whereby Lhe buyer
who ls able Lo flrsL reglsLer Lhe purchase ln good falLh ls ln full
accord wlLh SecLlon 31 of u 1329 whlch provldes LhaL no deed,
morLgage, lease, or oLher volunLary lnsLrumenL - excepL a wlll
purporLlng Lo convey or affecL reglsLered land shall Lake effecL
as a conveyance or blnd Lhe land unLll lLs reglsLraLlon. 1hus, lf
Lhe sale ls noL reglsLered, lL ls blndlng only beLween Lhe seller
and Lhe buyer buL lL does noL affecL lnnocenL Lhlrd persons.
6S#BF* 01 K& a&#$, DC9 <2)6 >DD ?9EEDA.

6S#BF* 01 K& a&#$

Iacts: 8y vlrLue of a compromlse agreemenL [udlclally approved,
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
vlllafanla sold Lo 8osenda and 8oslLa a house and loL. unknown Lo
Lhem, vlllafanla obLalned a free paLenL over Lhe sald land and sold lL Lo
ue vera. Cn Lhe oLher hand, 8osenda and 8oslLa sold Lhe properLy Lo
Lhe spouses Abrlgo. now ue vera and Abrlgo dlspuLe ownershlp over
Lhe properLy-Lhe former flllng an e[ecLmenL sulL agalnsL Lhe laLLer.

Issue: Who has a beLLer LlLle, Abrlgo or ue vera?

ne|d: uL vL8A. Pe boughL and reglsLered Lhe properLy ln good falLh.
Spouses Abrlgo reglsLered Lhe properLy under AcL no. 3344 because lL
was unknown Lo Lhem LhaL lL was covered under Lhe 1orrens SysLem,
whlle ue vera reglsLered Lhe same under Lhe 1orrens SysLem because
vlllafanla procured Lhe 1C1 upon purchase. ue vera's rlghL prevalls,
spouses Abrlgo cannoL valldly argue LhaL Lhey were fraudulenLly mlsled
lnLo bellevlng LhaL Lhe properLy was unreglsLered. A 1orrens LlLle, once
reglsLered, serves as a noLlce Lo Lhe whole world. All persons musL Lake
noLlce, and no one can plead lgnorance of Lhe reglsLraLlon.

1he rules ln double sale under Art|c|e 1S44, whereby Lhe buyer who ls
able Lo flrsL reglsLer Lhe purchase ln good falLh ls ln full accord wlLh
SecLlon 31 of u 1329 whlch provldes LhaL no deed, morLgage, lease, or
oLher volunLary lnsLrumenL - excepL a wlll purporLlng Lo convey or
affecL reglsLered land shall Lake effecL as a conveyance or blnd Lhe land
unLll lLs reglsLraLlon. 1hus, lf Lhe sale ls noL reglsLered, lL ls blndlng only
beLween Lhe seller and Lhe buyer buL lL does noL affecL lnnocenL Lhlrd
persons.

Doctr|ne:

When flrsL sale ls over unreglsLered land and Lhe second sale ls
when lL ls reglsLered, Lhe rules on double sale do noL apply.
K$F37$. "#$%B.F 2*1 01 L$I$^, =D <2)6 =@; ?=;:>A.

K$F37$. "#$%B.F 2*1 01 L$I$^

Iacts: Sammy Maron and hls 7 broLhers were co-owners of a parcel of
land for whlch Lhey applled for reglsLraLlon. endlng Lhe proceedlngs,
Lhey sold Lhe same Lo Macam, who LhereafLer lnLroduced subsLanLlal
lmprovemenLs Lhereon. LaLer on, Lhe properLy was levled upon and sold
ln favor of uagupan 1radlng, whlch LhereafLer reglsLered Lhe Sherlff's
llnal CerLlflcaLe of Sale

Issue: Who has a beLLer rlghL, Macam or uagupan?

ne|d: MACAM. ln Lhls case, Lhe sale ln favor of Macam was execuLed
before Lhe land was reglsLered, whlle Lhe sale ln favor of uagupan was
made afLer Lhe reglsLraLlon. ln such a case, Lhe 8ules of CourL wlll apply
such LhaL Lhe dellvery of Lhe Sherlff's llnal CerLlflcaLe of Sale ln favor of
uagupan merely subsLlLuLes Lhe laLLer lnLo Lhe shoes of Lhe seller Maron
and acqulres all rlghLs, lnLeresLs, and clalms of Lhe laLLer. Conslderlng
LhaL aL Lhe Llme of Lhe levy, Maron was no longer Lhe owner of Lhe land,
Lhen no LlLle can LhereafLer pass ln favor of uagupan. Macam's LlLle ls
Lhus susLalned.

Doctr|ne: When flrsL sale ls over unreglsLered land and Lhe second sale
ls when lL ls reglsLered, Lhe rules on double sale do noL apply.

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


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
ArLlcle 1344 ls lnappllcable Lo unreglsLered land because Lhe
purchaser of unreglsLered land aL a sherlff's execuLlon sale only
sLeps lnLo Lhe shoes of Lhe [udgmenL debLor, and merely
acqulres Lhe laLLer's lnLeresL ln Lhe properLy sold as of Lhe Llme
Lhe properLy was levled upon," as expressly provlded for ln Lhen
Sec. 33, 8ule 39 of Lhe 8evlsed 8ules of CourL on execuLlon sale
[now Sec. 33, 8ule 39, 1997 8ules of Clvll rocedure)]. 2$#3^S$
01 2*3#4 *5 677&$,'8 C= <2)6 >>J ?=;@EA.
o lf a plece of land ls sold Lhrough a prlvaLe deed of sale
buL was never reglsLered. 1he land was Lhen sold ln
publlc aucLlon and Lhe sale Lo Lhe second buyer was
reglsLered under AcL no. 3344. 1he appllcable provlslon
ls LhaL of Sec. 33, 8ule 39 of Lhe 8ules of CourL, noL
Art|c|e 1344. 2$#3^S$ 01 2*3#4 *5 677&$,'8 C= <2)6 >>J
?=;@EA.

2$#3^S$ 01 2*3#4 *5 677&$,'

Iacts: Amado sold an unreglsLered land Lo Carumba Lhrough a prlvaLe
documenL. Amado owed a sum of money from 8albuena. 8albuena
successfully obLalned a [udgmenL on hls credlL agalnsL Amado. Sherlff
lssued a ueflnlLe ueed of Sale (on Lhe same properLy sold Lo Carumba)
ln favor of 8albuena and reglsLered lL before 8ou. Cll sald levy was vold
and declared Carumba as owner because he already had possesslon of
Lhe land. CourL of Appeals sald Lhere was a double sale and 8albuena
should be declared owner because hls sale was reglsLered ln good falLh.

Issue: WheLher or noL Lhere ls a double sale.

ne|d: nC. ArLlcle 1344 does noL apply Lo unreglsLered land. 1he
purchaser of an unreglsLered land aL a sherlff's execuLlon sale only sLeps
lnLo Lhe shoes of Lhe [udgmenL debLor and merely acqulres Lhe laLLer's
lnLeresL ln Lhe properLy sold as of Lhe Llme LhaL Lhe properLy was levled
upon. 1he flrsL ueed of Sale whlle only embodled ln a prlvaLe documenL
buL coupled wlLh Lhe facL LhaL Carumba had Laken possesslon of Lhe
land sold, sufflced Lo vesL ownershlp on Lhe buyer. So when Lhe levy was
made by Lhe Sherlff, Lhe [udgmenL debLor no longer had domlnlcal
lnLeresL nor any real rlghL over Lhe land. no double sale.

Doctr|ne:

under AcL 3344, reglsLraLlon of lnsLrumenLs affecLlng
unreglsLered lands ls wlLhouL pre[udlce Lo a Lhlrd parLy wlLh a
beLLer rlghL," whlch means LhaL mere reglsLraLlon does noL glve
Lhe buyer any rlghL over Lhe land lf Lhe seller was noL anymore
Lhe owner of Lhe land havlng prevlously sold Lhe same Lo
somebody else even lf Lhe earller sale was unrecorded. 1he
rules on double sale under ArLlcle 1344 has no appllcaLlon Lo
land no reglsLered under Lhe 1orrens sysLem. 6I$S$, 01 6I$S$,8
D>D <2)6 >>> ?9EE>A.
1


6I$S$, 01 6I$S$,

1
nooopol v. lllopll, 7 SC8A 432 (1963), koJloweoltb lloooce co. v. lollleo, 197
SC8A 243 (1991), 5pooses noootlo 5ootloqo v. coott of Appeols, 247 SC8A 336
(1993), 8oyoco v. Noqoles, 340 SC8A 134 (2000), llJel v. coott of Appeols, 339
SC8A 186 (2008), uocloq v. Mocoblllq, 360 SC8A 137 (2008), AmoJlo vJo. ue
Meleocloo v. coott of Appeols, 334 SC8A 62, 82 (2007), llJel v. coott of
Appeols, 339 SC8A 186 (2008).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


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

Iacts: Spouses Acabal sold Lhelr loL Lo Lhelr son vlllaner Acabal who ln
Lurn Lransferred lL Lo hls godson-nephew Leonardo Acabal. 1hls was
laLer on sold Lo Leonardo and 8amon nlcolas hence a complalnL was
flled by vlllaner agalnsL Lhem and hls nephew argulng LhaL whaL he
slgned was a Lease conLracL and noL a sales conLracL. 1he 81C ruled ln
favor of nlcolas whlch was reversed by Lhe CourL of Appeals Lhus Lhe
case aL bar.

Issue: WheLher or noL Lhere was a valld sale

ne|d: ?LS. lL ls valld only lnsofar as 3/9 of Lhe land ls concerned. 1hls ls
so because Lhe properLy ln quesLlon was boughL durlng Lhe pendency of
Lhe marrlage of vlllaner Lherefore lL ls presumed Lo belong Lo Lhe
con[ugal parLnershlp. Leonarda falled Lo prove oLherwlse. neverLheless,
when !usLlnlana (wlfe) dled, her share vesLed on her 8 chlldren, and her
husband vesLlng hlm wlLh 3/9 share on Lhe properLy. Slnce lL ls noL yeL
parLlLloned, he cannoL yeL clalm LlLle Lo any deflnlLe porLlon of Lhe
properLy buL only Lo hls ldeal, absLracL or splrlLual share. Pe may sLlll
dlspose of Lhe same for every co-owner has absoluLe ownershlp over hls
undlvlded lnLeresL ln Lhe co-owned properLy. Powever, he cannoL
dlspose of Lhe shares of hls co-owners based on nemo daL qul non
habeL. Slnce he sold lL wlLhouL Lhe consenL of Lhe oLher co-owners, Lhe
sale ls sLlll valld only lnsofar as hls shares are concerned. And Lhe flndlng
LhaL boLh Leonardo and vlllaner were ln parl dellcLo, Lhe same ls
lrrelevanL because Lhe properLy concerned ls unreglsLered.

Doctr|ne: lf unreglsLered land, once lL ls reglsLered under Lhe 1orrens
SysLem, reglsLraLlon glves lndefeaslblllLy Lo Lhe LlLle. lL cleanses Lhe LlLle
lf reglsLraLlon was made ln good falLh.

WhaL lf land ls sold 8LlC8L lL was reglsLered and Lhen sold a
second Llme by Lhe same person Al1L8 lL was reglsLered, wlll
ArLlcle 1344 apply? no. ArLlcle 1344 wlll noL apply because
reglsLraLlon was dlfferenL for boLh LransacLlons, albelL, no
reglsLraLlon aL all ln Lhe flrsL one.
Cwnershlp of Lhe land wlll Lhen depend on:
1. lf 2nd buyer, ln good falLh, reglsLered Lhe land under Lhe
1orrens SysLem, he prevalls because of Lhe lndefeaslblllLy of a
1orrens 1lLle.
2. 8uL lf reglsLraLlon was made under AcL no. 3344, ownershlp by
Lhe buyer of Lhe land ls sLlll dependenL on oLher beLLer rlghLs of
a Lhlrd parLy. Mere reglsLraLlon does noL glve a buyer any rlghL
over Lhe land lf Lhe seller was noL anymore Lhe owner of Lhe
land havlng prevlously sold Lhe same Lo somebody else.

IV. Cb||gat|ons of 8uyer

A. ay the r|ce (Art|c|e 1S82)
When seller cannoL show LlLle Lo Lhe sub[ecL maLLer, Lhen he
cannoL compel Lhe buyer Lo pay Lhe prlce. !H&B#' *5 <&0&#B.$
<$. LBF3&, 01 2*3#4 *5 677&$,'8 C:D <2)6 >9C ?9EE=A1
Mere sendlng of a leLLer by Lhe buyer expresslng Lhe lnLenLlon
Lo pay wlLhouL Lhe accompanylng paymenL ls noL consldered a
valld Lender of paymenL and conslgnaLlon of Lhe amounL due
are essenLlal ln order Lo exLlngulsh Lhe obllgaLlon Lo pay and
obllge Lhe seller Lo convey LlLle. !"*#I3$4*# 01 -&#.$S&8 D>;
<2)6 DC; ?9EE>A1
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
unless Lhe parLles Lo a sale have agreed Lo Lhe paymenL of Lhe
purchase prlce Lo any oLher parLy, Lhen lLs paymenL Lo be
effecLlve musL be made Lo Lhe seller ln accordance wlLh ArLlcle
1240 whlch provldes LhaL aymenL shall be made Lo Lhe person
ln whose favor Lhe obllgaLlon has been consLlLuLed, or hls
successor ln lnLeresL, or any person auLhorlzed Lo recelve lL."
!L*.4&IB,,* 01 )&+.&'8 CJ> <2)6 9DD ?9EE9A1
non-paymenL of Lhe conslderaLlon ln Lhe sale does noL prove
slmulaLlon, aL mosL, lL glves Lhe seller Lhe rlghL Lo sue for
collecLlon.
o Cenerally ln a sale, paymenL of Lhe prlce ls a resoluLory
condlLlon" and Lhe remedy of Lhe seller ls Lo exacL
fulflllmenL or, ln case of a subsLanLlal breach, Lo resclnd
Lhe conLracL under ArLlcle 1191.

8. Accept De||very (Art|c|es 1S82-1S8S)
1he buyer ls bound Lo accepL dellvery of Lhe Lhlng boughL aL Lhe
Llme and place sLlpulaLed ln Lhe conLracL.
o lf Lhe Llme and place were noL sLlpulaLed, Lhe paymenL
musL be made aL Lhe Llme and place of Lhe dellvery of
Lhe Lhlng sold.
1he buyer ls deemed Lo have accepLed Lhe goods when he
lnLlmaLes Lo Lhe seller LhaL he has accepLed Lhem. (ArLlcle 1383)
Coods Sold uellverable 8y lnsLallmenLs (ArLlcle 1383)

1. Cpportun|ty to Inspect Goods (Art|c|e 1S84)
Genera| ku|e: ArLlcle 1384(1)
o Lxcept|on: ArLlcle 1384(3), C.C.u. Sales

2. Lffect Cf Acceptance Cf Goods Cn Se||er's Warranty (Art|c|e
1S86)

3. kefusa| 1o Accept Goods (Art|c|e 1S87 and 1S88)