SALES (OUTLINE 3)

Prof. M.I.P. Romero/2016

l. Negotiation Stage
1. Invitations to make offers Arts. 1325
2. Offer Arts. 1321, 1323
3. Counter-offer
4. Unaccepted unilateral promise/offer (policitacion) to sell/buy
5. Contract to Sell obligation to do
6. Option Contract Art. 1479 (par. 2) and 1324
7. Right of First Refusal ?
Cases: Southwestern Sugar v. Atlantic Gulf GR 7382 (June 29, 1955)
- NOTE: abandoned by Sanchez v. Rigos
Sanchez v. Rigos GR 25494 (June 14, 1972)
Riviera Filipina v. CA 380 SCRA 245 (2002)
Sen Po Ek Mktg. v. Martinez 325 SCRA 210 (2000)
NOTE: Review previously assigned cases on Contract to Sell
ll. Perfection Stage - Arts. 1475 1476; Art. 1318;
1. Validity of COS - Art. 1483, Art. 1874
2. Enforceability - Arts. 1403 - 1408; Art. 1357
3. E-Commerce Act
4. Offer and Acceptance - Art. 1319 1326
REVIEW: Consent that affects the perfection of the COS
5. Earnest Money - Art.1482
- Distinguish from Option Money
Cases: Villongco v. Bormaheco 65 SCRA 352 (1975)
Uraca v. CA 278 SCRA 702 (1997)
San Miguel Properties v. Huang 336 SCRA 732 (2000)

lll. Consummation Stage - Delivery and Payment - 1458

A. Obligations of the Vendor Arts. 1495, 1459, 1537, 1163, 1487
Contract of Sale - right to transfer/acquire ownership
Delivery - mode of transferring ownership
B. Transfer of Ownership
1. Upon Delivery - Arts. 1477, 1496
Actual/real delivery Art 1497
Constructive delivery:
- traditio longa manu (Art. 1499)
- traditio brevi manu (Art. 1499)
- constitutum possessorium (Art. 1500)
- quasi-traditio (Art. 1501)
- execution of a public instrument (Art. 1498, par. 1)
(mov & immov)
- symbolic delivery (Art. 1498, par. 2), (movables)
2. Stipulation of Parties Arts. 1478, 1503, par.1
3. Sale or Return Art. 1502
Sale on Trial / on Approval / on Satisfaction Art. 1502
4. Common Carrier - Arts.1503, par. 2 and 3;
par. 4 on rt of 3rd party; Art. 1523
- f.o.b./ c.i.f./ f.a.s.
( Note: No tradition if no intention to deliver / to accept)
5. Arts.1505 1506; Arts. 559 and 1434
Cases: Addison v. Felix Tioco 38 Phil. 404 (1918)
Equatorial v. Mayfair Theater 370 SCRA 56 (2001)
Sampaguita v. Jalwindor (10/11/1979)
Bean v. Cadwallader 10 Phil. 606
Edca Publishing v. Santos 184 SCRA 614 (1990)
6. Double Sales Art. 1544
a) Movable / Immovable
b) Requisites
c) When not applicable
d) Effect of registration of title under Torrens title
Cases: Carbonell v. CA 49 SCRA 99 (1976)
Salvoro v. Tanega 87 SCRA 349 (1978)
Quimson v. Rosete 87 Phil. 159 (1950)
C. Risk of Loss by Fortuitous Event
1. Before Perfection Seller (res perit domino)
2. At Time of Perfection of Contract
If Specific Thing --- Art. 1493
If Specific Goods --- Art. 1494
3. After Perfection But Before Delivery
Under Art. 1480 --- Buyer
Under Art. 1504 --- Seller, except:
- if Seller retains title for security only -- buyers risk
- actual delivery delayed - party at fault bears risk
- unless otherwise agreed
NOTE: Prepare to defend each view
4. After Delivery - Buyer (res perit domino)
Lawyers Coop. v. Tabora 13 SCRA 762 (1965)