CHAPTER 4: 3.

If thing is determinate, creditor can

compel the debtor to deliver
EFFECTS OF THE CONTRACT 4. Obligation is extinguished if determinate
WHEN THE THING SOLD HAS thing is lost without the debtor’s fault &
BEEN LOST before he has incurred a delay

For the chapter: Loss by fortuitous event Scenario: Determinate thing is lost without
seller’s fault
Loss Before Perfection
Status of the contract
- Seller’s obligation is extinguished
VOID - Buyer should still pay
Loss borne by A. Fungible thing: BUYER BEARS THE
SELLER LOSS
B. Non-Fungible Thing: BUYER BEARS
At Time of Perfection of Contract: object is
entirely lost? THE LOSS
 Contract has no effect C. Fungible Thing Sold for a Fixed Price:
SELLER BEARS THE LOSS UNLESS
Partially Lost MEASURED (Obligation is
Vendee has TWO (2) OPTIONS: extinguished but seller bears the loss)
1. Withdraw
2. Demand remaining (price paid in
proportion) General Rule: When ownership is transferred
to the buyer, the goods are at the buyer’s risk
Object is Specific
whether actual delivery has been made or not
Buyer/Vendee has TWO (2) OPTIONS:
1. Treat sale as avoided Exceptions to the Rule:
2. Treat sale as valid in all of the existing
goods 1. Delivery of the good made to the buyer
2. Actual delivery has been delayed
Loss After Perfection through the fault of buyer/seller (Risk
Loss borne by goes to whose fault it is)
BUYER
Sale on Return
Loss After Perfection but Before Delivery
A. Sale of Non-fungible things - Ownership passes upon delivery
B. Sale of Fungible Things - Buyer may revert ownership
a. Lump sum - Res perit domino: the thing perishes
b. Per Unit with the owner
i. Loss borne by vendee
Sale on Trial/Approval
only when things have
been measured - Ownership passes upon
approval/acceptance
For A & B(b.), the following apply:
- Before approval/acceptance: Seller bears
1. Proper diligence of a good father risk of the loss
(SELLER)
2. Creditor has the right to the fruits of the
thing (From date of delivery); no REAL CHAPTER 5:
right until thing has been delivered
OBLIGATIONS OF THE
VENDOR Delivery of Goods to a Common Carrier
Three (3) Obligations:
1. Transfer the ownership
2. Deliver the thing
3. Warrant the thing sold
Transfer of Ownership
General Rule: only owner can pass ownership
Exceptions to the Rule:
1. Estoppel
2. Law
3. Merchant’s Sale
4. Voidable sale (Buyer in good faith)
Obligation to Deliver
WHEN is the thing considered delivered?
 In control & possession of vendee;
delivery or tradition necessary
4 Kinds of Tradition
1. Real Tradition
- Hand to hand (movable)
- Material & Possessory acts (immovable)

2. Legal/Constructive
- Movable & Immovable things (not
material/actual)
o Legal: Sale made through public
instrument; execution = delivery
o Symbolic Traditio
o Traditio Longa Manu: Vendor
pointing out object to the
vendee
o Traditio brevi manu: Lessee
becomes owner
o Traditio constitutum
possessorium: Owner becomes
lessee
3. Quasi-tradition: Transfer of
rights/incorporeal property
4. Tradition by operation of law