REMEDIES OF PARTIES SELLER

RE: SALE OF MOVABLES -RESCISSIONUNDER ART.1593 -conditions: 1. buyer should not have appeared to receive it or 2. having appeared, he should have tendered the price at the same time

BUYER
SUSPENSION OF PAYMENT UNDER 1590 *conditions: vendee is disturbed in the possession of the thing or has reasonable grounds to fear such a disturbance (i.e.: accionreivindicatoria, foreclosure of mortgage) *not applicable when seller furnishes security for the return of the price in the event of disturbance; or where there is a stipulation that the vendee shall be bound to make payment notwithstanding such contingency *disturbance here does NOT involve a mere act of trespass *suspension may last until disturbance ceases

RE: SALE OF GOODS -SPECIFIC PERFORMANCEFOR PAYMENT OF PRICE UNDER 1595 1. when ownership has passed to buyer and he wrongfully neglects or refuses to pay when ownership has not passed to buyer and the goods cannot be readily sold; seller may offer to deliver the goods to buyer, and if buyer refuses, seller may notify the buyer that the goods are held by the seller as bailee for the buyer irrespective of delivery or transfer of title, buyer refuses to pay the price

RE: SALE OF REAL ESTATE ON INSTALLMENTS (THINK: MACEDA LAW) *technically, maceda does not grant remedies to the buyer, but rather gives the buyer certain rights in order to protect him WHEN BUYER HAS PAID AT LEAST 2 YEARS WORTH OF INSTALLMENTS: 1. GRACE PERIOD OF 1 MONTH FOR EVERY YEAR OF INSTALLMENTS PAID(payment without interest) **grace period may be availed of only one in every 5 years 2. CASH SURRENDER VALUE UPON CANCELLATION OF THE CONTRACT *50% of the total payments made, and after 5yrs of installments, additional 5%per year, but not to exceed 90% of the total payments made *actual cancellation shall take place 30 days from receipt of notice of cancellation *buyer may still pay within the 30-day period for cancellation, but payments would then include installments *if buyer refuses to accept the cash surrender value (thereby precluding cancellation), seller may deposit the amount in an account with a bank under the buyers name *buyer, upon extrajudicial cancellation, cannot be evicted extra-judicially RIGHTTO SELL OR ASSIGN HIS RIGHTS BEFORE ACTUAL CANCELLATION OF THE CONTRACT TO PAY IN ADVANCE ANY INSTALLMENT OR THE FULL UNPAID BALANCE OF THE PURCHASE PRICE ANYTIME WITHOUT INTEREST

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*buyers defense against action for specific performance under 1595: seller manifested inability to perform and intention not to perform -ACTION FOR DAMAGES FOR NON-ACCEPTANCE UNDER 1596, when buyer refuses to accept and pay for the goods RESCISSION UNDER 1597 [technical rescission], when the goods have not been delivered to the buyer and the buyer has repudiated the contract of sale or manifested his inability to perform his obligations or committed a breach, seller may totally rescind the contract of sale by giving notice of his election to the buyer

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WHEN BUYER HAS PAID LESS THAN 2 YEARS WORTH OF INSTALLMENTS 1. GRACE PERIOD OF 60 DAYS FROM THE DAY THE INSTALLMENT BECAME DUE 2. CANCELLATION WITHOUT CASH SURRENDER VALUE *cancellation shall take effect 30 days from receipt of notice of cancellation TO PAY IN ADVANCE ANY INSTALLMENT OR THE FULL UNPAID BALANCE OF THE PURCHASE PRICE WITHOUT INTEREST RIGHT TO SELL/ASSIGN HIS RIGHTS BEFORE CANCELLATION *vendee cannot be evicted extra-judicially after cancellation, vendor must go to court to evict vendee

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RE: SPECIAL RIGHTS OF UNPAID SELLER under 1526 *regardless of whether or not ownership of the goods has passed to the buyer: 1. 2. 3. 4. POSSESSORY LIEN STOPPAGE IN TRANSITU SPECIAL RIGHT OF RESALE SPECIAL RIGHT TO RESCIND(available only after either right to stoppage in transit or possessory lien have been exercised)

RE: SALE OF IMMOVABLES RESCISSION UNDER 1191 for substantial breach *rescission here is judicial in nature

**remedies are applicable not only to a sale in lump sum, but also one in installments; they differ from the remedies under 1484 in that under 1484, possession AND ownership of the goods sold have already been transferred to the vendee, whereas under 1526, possession is still with the vendor, regardless of whether or not ownership has been transferred to vendee. RE: SALE OF PERSONAL PROPERTY PAYABLE IN INSTALLMENTS (THINK: RECTO LAW) 1. SPECIFIC PERFORMANCE *action may cover only the defaulted payments (not the entire price), unless there is an acceleration clause 2. CANCELLATION OR RESCISSION *rescission applicable only upon default of buyer in 2 or more installments *cancellation need not be judicial RE: BREACH OF WARRANTIES IN GENERAL (art.1599): 1. ACCEPT OR KEEP THE GOODS and set up against the seller breach of warranty by way of recoupment, diminution or extinction of the price 2. ACCEPT/KEEP THE GOODS and maintain an action for DAMAGES FOR BREACH OF WARRANTY 3. REFUSE TO ACCEPT THE GOODS AND MAINTAIN ACTION FOR DAMAGES 4. RESCIND THE CONTRACT OF SALE AND REFUSE TO RECEIVE THE GOODS, RETURN THEM/OFFER TO

3. FORECLOSURE OF CHATTEL MORTGAGE *barring effect for recovery in case of deficiency judgment operates for all chattel mortgages involving the thing sold (i.e.: the mortgage does not necessarily have to actually be on the thing sold) *remedy applicable only upon default of buyer in 2 or more installments *foreclosure on a REAL ESTATE MORTGAGE is equivalent to specific performance, not a foreclosure of chattel mortgage, hence, the seller who forecloses on a real estate mortgage is nor prohibited from recovering the deficiency

RETURN THEM AND RECOVER THE PRICE OR ANY PART THEREOF WHICH HAS BEEN PAID REMEDIES FOR BREACH OF EXPRESS WARRANTIES: RESCISSION under 1191 REMEDIES FOR IMPLIED WARRANTIES: 1. Against EVICTION:(a) if eviction is PARTIAL: rescission; (b) if eviction is TOTAL: (i)return of the value which the thing sold had at the time of eviction, income or fruits; (ii)costs of suit; (iii)expenses of the contract; (iv)damages and interest and ornamental expenses if sale was made in bad faith 2. Against HIDDEN DEFECTS: (a) withdrawing from the contract; (b) action quantiminoris, with damages in either case 3. Against REDHIBITORY DEFECTS OF ANIMALS: (see general remedies) 4. As to FITNESS OF QUALITY: (see: general remedies)

RE: SALE OF IMMOVABLES RESCISSION under 1591 [anticipatory breach], should the vendor have reasonable grounds to fear the loss of the thing sold and its price *conditions: delivery has been effected, and vendee has not yet paid the price RESCISSION under 1191, if such ground does not exist RESCISSION BASED ON CONTRACTUAL STIPULATIONS [automatic rescission by virtue of stipulation] under 1592 *vendee may pay even after expiration of the period, as long as no demand for rescission has been made either by judicially or by notarial act *rescission under 1592 is not applicable to sales by installment, contract to sell, conditional sales, and sale of immovable property covered by the Maceda Law