Article 1491.

The following persons cannot acquire by purchase, evenat a public or judicial auction, either in
person or through themediation of another:
(1) The guardian, the property of the person or persons whomay be under his guardianship;
(2) Agents, the property whose administration or sale may havebeen intrusted to them, unless the consent of
the principal hasbeen given;
(3) Executors and administrators, the property of the estateunder administration;
(4) Public officers and employees, the property of the State or of anysubdivision thereof, or of
any government-owned or controlledcorporation, or institution, the administration of which has
beenintrusted to them; this provision shall apply to judges and governmentexperts who, in any manner
whatsoever, take part in the sale;
(5) Justices, judges, prosecuting attorneys, clerks of superior andinferior courts, and other officers and
employees connectedwith the administration of justice, the property and rights inlitigation or levied upon an
execution before the court withinwhose jurisdiction or territory they exercise their respectivefunctions; this
prohibition includes the act of acquiring byassignment and shall apply to lawyers, with respect to theproperty
and rights which may be the object of any litigation inwhich they may take part by virtue of their profession;
(6) Any others specially disqualified by law.Persons Relatively Incapacitated to Buy. (PAGEJO)
1. Public Officers and employees
—Property Of State.
2.A
gents
—
Property of Principal unless with consent.3.
G
uardian
—
Property of Ward.4.
E
xecutors and administrators
—
Estate5.
J
ustices, Judges, Prosecuting Attorneys, Clerks and employees of court
—
Property/Rights under litigation.6.
O
thers disqualified by law. (
Ex. *aliens who are disqualified to purchase private agricultural lands; *an unpaid seller having a right of lien or
having stopped the goods in transitu, who is prohibited frombuying the goods either directly or indirectly in the resale of the
same at a public or private sale w/c he may make. Art. 1533, par.5)
Rationale:
Fiduciary relationship
Status of Sale:
Voidable (1-3); Void (4-6)
Article 1492. The prohibitions in the two preceding articles areapplicable to sales in legal redemption,
compromises andrenunciations.Article 1493. If at the time the contract of sale is perfected, the thingwhich is
the object of the contract has been entirely lost, the contractshall be without any effect.But if the thing should
have been lost in part only, the vendee maychoose between withdrawing from the contract and demanding
theremaining part, paying its price in proportion to the total sum agreedupon.Partial Loss Rules:
1. Vendee may withdraw from the contract2. Demand the remaining part, paying its price in proportion to thetotal
sum agreed upon
Article 1494. Where the parties purport a sale of specific goods, andthe goods without the knowledge of the
seller have perished in partor have wholly or in a material part so deteriorated in quality as to besubstantially
changed in character, the buyer may at his option treatthe sale: (1) As avoided; or (2) As valid in all of the
existing goods or in so much thereof as havenot deteriorated, and as binding the buyer to pay the agreed price
forthe goods in which the ownership will pass, if the sale was divisible.
Loss/Substantial Deterioration of Specific Goods without seller’s
knowledge.
1. Buyer may avoid the sale or2. May treat sale as valid w/ respect to the existing goods
Article 1495. The vendor is bound to transfer the ownership of anddeliver, as well as warrant the thing which
is the object of the sale.Obligations of Vendor. (TDWP)
1.
T
ransfer Ownership (not waivable)2.
D
eliver (not waivable)3.
W
arrant Object (waivable and may be modified)4.
P
reserve Thing from perfection to delivery (Art. 1163)5.
P
ay for the execution and registration of the sale unless there is acontrary agreement**Execution sales do not require
the delivery of thing since a one yearperiod of redemption is available to seller.
Article 1496. The ownership of the thing sold is acquired by thevendee from the moment it is delivered to him
in any of the waysspecified in articles 1497 to 1501, or in any other manner signifyingan agreement that the
possession is transferred from the vendor tothe vendee.Article 1497. The thing sold shall be understood as
delivered,when it is placed in the control and possession of the vendee.Control and Possession necessary in
Delivery.Exception:
Art.

1478. Stipulation as to full payment of price.

Delivery-
a mode of acquiring ownership as a consequence of a contractof sale by virtue of which actually or constructively
the object is placedin the control and possession of the vendee.
KINDS OF DELIVERY
1. Actual or Real. (1497)2. Legal or Constructivea. Legal Formalities (1498); execution of public instrument.b.
Symbolical Tradition (1498 par 2)- keys delivered.c. Traditio Longa Manu- by mere consent /agreement. If
themovable sold cannot yet be transferred to the possession of thebuyer at the time of the sale. (1499)d. Traditio
Brevi Manu- if the buyer had already the possession theobject even before the purchase. (lessee becomes owner)e. Traditio
constitutum possessorium- possession as ownerchanged. (Owner becomes lessee)3. Quasi-Tradition- Delivery of
Rights, credits or incorporeal propertymade by:a. Execution of public instrumentb. Placing titles of ownership in the
hands of a lawyer.c. Allowing the buyer to make use of the rights (1501)
Article 1498. When the sale is made through a public instrument,the execution thereof shall be equivalent
to the delivery of the thingwhich is the object of the contract, if from the deed the contrarydoes not appear or
cannot clearly be inferred.With regard to movable property, its delivery may also be made bythe delivery of
the keys of the place or depository where it is storedor kept.
Requirements:
1. Seller’s Control.
2. Seller’s Control transferred to buyer.
3. Intention to deliver for ownership.
Article 1499. The delivery of movable property may likewise be madeby the mere consent or agreement of the
contracting parties, if thething sold cannot be transferred to the possession of the vendee at thetime of the
sale, or if the latter already had it in his possession for anyother reason.Article 1500. There may also be
tradition constitutum possessorium. Different forms of Constructive Delivery -
Constructive delivery hassame legal effect as actual or physical delivery
1. Traditio Longa Manu
−
Delivery of thing by mere agreement; whenSELLER points to the property without need of actually delivering
2. Traditio Brevi Manu
−
Before contract of sale, the would be buyerwas already in possession of the would be subject matter of sale (ex:
aslessee)
3. Symbolic delivery
−
As to movables
–
ex: delivery of the keys to a car
4. Constitutum possessarium
−
When at the time of the perfection of the contract of sale, seller had possession of the subject matter in theconcept of
owner and pursuant to the contract, seller continues to holdphysical possession no longer in the concept of an owner
but as a lesseeor any other form of possession other than in the concept of owner.
Article 1501. With respect to incorporeal property, the provisions of the first paragraph of article 1498 shall
govern. In any other casewherein said provisions are not applicable, the placing of the titles of ownership in
the possession of the vendee or the use by the vendee of his rights, with the vendor's consent, shall be
understood as a delivery.Article 1502. When goods are delivered to the buyer "on sale orreturn" to give the
buyer an option to return the goods instead of paying the price, the ownership passes to the buyer on
delivery, buthe may revest the ownership in the seller by returning or tenderingthe goods within the time
fixed in the contract, or, if no time hasbeen fixed, within a reasonable time.When goods are delivered to the
buyer on approval or on trial oron satisfaction, or other similar terms, the ownership thereinpasses to the
buyer:(1) When he signifies his approval or acceptance to the seller or doesany other act adopting
the transaction;(2) If he does not signify his approval or acceptance to the seller, butretains the goods without
giving notice of rejection, then if a time hasbeen fixed for the return of the goods, on the expiration of such
time,and, if no time has been fixed, on the expiration of a reasonable time.What is a reasonable time is a
question of fact.Transaction on Sale or Return.
Subject to Resolutory Condition.Difference with
“Delivery with option to purchase”
-
Ownership istransferred in Sale or Return
Transaction on Approval or Trial/Satisfaction.
Subject to SuspensiveCondition.Rules:1. Risk of loss to seller until the sale becomes absolute. (Exceptions:Buyer in
default; Buyer agreed to bear the loss)2. Buyer must give goods a trial except when it is evident that it
cannotperform the work intended.3. Period of signifying acceptance commences to run only when all theparts essential for
operation has been delivered.4. A provision that a 3
rd
person must satisfy approval is valid but he mustbe in Good faith.5. Generally the Sale and Delivery to an expert buyer
is not a sale onapproval/trial.
Sale or Return vs. Sale on ApprovalBasis Sale or Return Sale on Approval
Condition Subject to ResolutoryconditionSubject to suspensiveconditionPremise It depends upon thewill of the
buyerIt depends upon thesuitability, quality orcharacter of
thegoodsTransfer of ownership Ownershipimmediately passesto the buyer onOwnership does notimmediately pass tothe
buyer. It passesdelivery only upon approval orsatisfaction of thebuyer dulymanifested after trialRevesting of ownership
in theownerOwnership isrevested in the sellerif the buyer sodecidesThere is no revestingof ownership becauseit is retained
by theseller until the salebecomes absoluteRisk of loss ordeteriorationThe risk rests on thebuyer before therevestment
of ownershipThe risk remains inthe seller while thegoods are on trial