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THE CIVIL CODE OF THE PHILIPPINES

(REPUBLIC ACT NO. 386)
TITLE VI. SALES
Chapter 1
NATURE AND FORM OF THE
CONTRACT
Art. 1458. By the contract of sale one of the
contracting parties obligates himself to transfer the
ownership and to deliver a determinate thing, and
the other to pay therefor a price certain in money or
its equivalent.
A contract of sale may be absolute or conditional.
Notes:
1.

Requisites: (a) consent; (b) object; (c) price certain in money

2.

Characteristics: (a) consensual; (b) bilateral; (c)

nominate; (d) principal; (e) onerous; and (f) commutative

3.

Contract to sell:

BAR
1.

Arturo gave Richard a receipt which states:

Received from Richard as down payment for
my 1995 Toyota Corolla with plate No. XYZ-123
P50,000. Balance payable: 12/30/01. (Sgd.)
Arturo. Does this receipt evidence a contract to
sell? (2001)

2.

Distinguish between conditional sale vs. absolute sale. (1997)

3.

P sold his car to A, who in turn issued a check

as full payment. Before maturity of the check, A
sold the car to G who in turn sold it to C. The
check issued by A bounced since the account
was closed by A before issuing it. P sued to
recover from G the car upon the claim that he
was unlawfully deprived of the car due to As
deception. Will the suit prosper? (1991)

Art. 1459. The thing must be licit and the

vendor must have a right to transfer the ownership
thereof at the time it is delivered. (n)
Art. 1460. A thing is determinate when it is
particularly designated or physical segregated from
all others of the same class.
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Notes:

BAR EXAM NOTES: SPECIAL CONTRACTS

Notes:

The requisite that a thing be determinate is

satisfied if at the time the contract is entered into,
the thing is capable of being made determinate
without the necessity of a new or further agreement
between the parties. (n)
Art. 1461. Things having a potential existence
may be the object of the contract of sale.
The efficacy of the sale of a mere hope or
expectancy is deemed subject to the condition that
the thing will come into existence.
The sale of a vain hope or expectancy is void.
(n)
Art. 1462. The goods which form the subject
of a contract of sale may be either existing goods,
owned or possessed by the seller, or goods to be
manufactured, raised, or acquired by the seller after
the perfection of the contract of sale, in this Title
called future goods.
There may be a contract of sale of goods,
whose acquisition by the seller depends upon a
contingency which may or may not happen. (n)
Art. 1463. The sole owner of a thing may sell
an undivided interest therein. (n)
Art. 1464. In the case of fungible goods, there
may be a sale of an undivided share of a specific
mass, though the seller purports to sell and the
buyer to buy a definite number, weight or measure
of the goods in the mass, and though the number,
weight or measure of the goods in the mass is
undetermined. By such a sale the buyer becomes
owner in common of such a share of the mass as
the number, weight or measure bought bears to the
number, weight or measure of the mass. If the mass
contains less than the number, weight or measure
bought, the buyer becomes the owner of the whole
mass and the seller is bound to make good the
deficiency from goods of the same kind and quality,
unless a contrary intent appears. (n)
Art. 1465. Things subject to a resolutory condition may be the object of the contract of sale. (n)
Art. 1466. In construing a contract containing
provisions characteristic of both the contract of sale
and of the contract of agency to sell, the essential
clauses of the whole instrument shall be considered. (n)

THE CIVIL CODE OF THE PHILIPPINES

Sales

Art. 1467. A contract for the delivery at a

certain price of an article which the vendor in the
ordinary course of his business manufactures or
procures for the general market, whether the same
is on hand at the time or not, is a contract of sale,
but if the goods are to be manufactured specially
for the customer and upon his special order, and not
for the general market, it is a contract for a piece of
work. (n)
Art. 1468. If the consideration of the contract
consists partly in money, and partly in another
thing, the transaction shall be characterized by the
manifest intention of the parties. If such intention
does not clearly appear, it shall be considered a
barter if the value of the thing given as a part of the
consideration exceeds the amount of the money or
its equivalent; otherwise, it is a sale. (1446a)
Art. 1469. In order that the price may be considered certain, it shall be sufficient that it be so
with reference to another thing certain, or that the
determination thereof be left to the judgment of a
special person or persons.
Should such person or persons be unable or
unwilling to fix it, the contract shall be inefficacious, unless the parties subsequently agree upon
the price.
If the third person or persons acted in bad faith
or by mistake, the courts may fix the price.
Where such third person or persons are prevented from fixing the price or terms by fault of
the seller or the buyer, the party not in fault may
have such remedies against the party in fault as are
allowed the seller or the buyer, as the case may be.
(1447a)
Art. 1470. Gross inadequacy of price does not
affect a contract of sale, except as it may indicate
a defect in the consent, or that the parties really intended a donation or some other act or contract. (n)
Art. 1471. If the price is simulated, the sale
is void, but the act may be shown to have been in
reality a donation, or some other act or contract. (n)
Art. 1472. The price of securities, grain,
liquids, and other things shall also be considered
certain, when the price fixed is that which the thing
sold would have on a definite day, or in a particular

Notes:

CONTENTS
CIVIL CODE OF THE PHILIPPINES
Republic Act No. 386
TITLE VI SALES
Chapter 1 Nature and Form of the Contract .......................................................................
Chapter 2 Capacity to Buy or Sell .....................................................................................
Chapter 3 Effects of the Contract When the Thing Sold has been Lost ............................
Chapter 4 Obligations of the Vendor...................................................................................

1
8
9
10

Section 1. General Provisions ....................................................................................

Section 2. Delivery of the Thing Sold .........................................................................
Section 3. Conditions and Warranties .........................................................................

10
10
25

Subsection 1. Warranty in Case of Eviction .....................................................

Subsection 2. Warranty against Hidden Defects of or Encumbrances
upon the Thing Sold ...............................................................................

26
29

Chapter 5 Obligations of the Vendee .................................................................................

Chapter 6 Actions for Breach of Contract of Sale of Goods...............................................
Chapter 7 Extinguishment of Sale ......................................................................................

32
35
38

Section 1. Conventional Redemption ..........................................................................

Section 2. Legal Redemption ......................................................................................

38
42

Chapter 8 Assignment of Credits and Other Incorporeal Rights ........................................

Chapter 9 General Provisions .............................................................................................

44
46

TITLE VII BARTER OR EXCHANGE ...................

48

TITLE VIII LEASE

Chapter 1 General Provisions .............................................................................................
Chapter 2 Lease of Rural and Urban Lands ........................................................................

49
49

Section 1. General Provisions .....................................................................................

Section 2. Rights and Obligations of the Lessor and the Lessee.................................
Section 3. Special Provisions for Leases of Rural Lands ............................................
Section 4. Special Provisions of the Lease of Urban Lands........................................

49
51
57
58

Chapter 3 Work and Labor .................................................................................................

58

Section 1. Household Service......................................................................................

Section 2. Contract of Labor .......................................................................................
Section 3. Contract for a Piece of Work ......................................................................
Section 4. Common Carriers .......................................................................................

58
60
61
65

Subsection 1. General Provisions .....................................................................

Subsection 2. Vigilance over Goods .................................................................
Subsection 3. Safety of Passengers...................................................................
Subsection 4. Common Carriers .......................................................................

65
65
69
70

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TITLE IX PARTNERSHIP
Chapter 1 General Provisions .............................................................................................
Chapter 2 Obligations of the Partners .................................................................................

71
74

Section 1. Obligations of the Partners among Themselves .........................................

Section 2. Property Rights of a Partner .......................................................................
Section 3. Obligations of the Partners with Regard to Third Persons .........................

74
79
81

Chapter 3 Dissolution and Winding Up .............................................................................

Chapter 4 Limited Partnership ............................................................................................

85
95

TITLE X AGENCY
Chapter 1 Nature, Form and Kinds of Agency ...................................................................
Chapter 2 Obligations of the Agent ....................................................................................
Chapter 3 Obligations of the Principal................................................................................
Chapter 4 Modes of Extinguishment of Agency .................................................................

106
110
114
115

TITLE XI LOAN
General Provisions ................................................................................................................

118

Chapter 1 Commodatum .....................................................................................................

118

Section 1. Nature of Commodatum ............................................................................

Section 2. Obligations of the Bailee ............................................................................
Section 3. Obligations of the Bailor ............................................................................

118
119
120

Chapter 2 Simple Loan or Mutuum ....................................................................................

121

TITLE XII DEPOSIT

Chapter 1 Deposit in General and Its Different Kinds ........................................................
Chapter 2 Voluntary Deposit ...............................................................................................

123
123

Section 1. General Provisions .....................................................................................

Section 2. Obligations of the Depositary ....................................................................
Section 3. Obligations of the Depositor ......................................................................

123
124
128

Chapter 3 Necessary Deposit ..............................................................................................

Chapter 4 Sequestration or Judicial Deposit ......................................................................

129
130

TITLE XIII ALEATORY CONTRACTS

General Provisions ................................................................................................................

131

Chapter 1 Insurance ............................................................................................................

Chapter 2 Gambling ............................................................................................................
Chapter 3 Life Annuity .......................................................................................................

131
131
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TITLE XIV COMPROMISES AND ARBITRATIONS

Chapter 1 Compromises......................................................................................................
Chapter 2 Arbitrations .........................................................................................................

134
136

TITLE XV GUARANTY
Chapter 1 Nature and Extent of Guaranty...........................................................................
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137

Chapter 2 Effects of Guaranty ............................................................................................

138

Section 1. Effects of Guaranty Between the Guarantor and the Creditor ...................
Section 2. Effects of Guaranty Between the Debtor and the Guarantor......................
Section 3. Effects of Guaranty as Between Co-Guarantors ........................................

138
140
141

Chapter 3 Extinguishment of Guaranty ..............................................................................

Chapter 4 Legal and Judicial Bonds ...................................................................................

142
143

TITLE XVI PLEDGE, MORTGAGE AND ANTICHRESIS

Chapter 1 Provisions Common to Pledge and Mortgage ....................................................
Chapter 2 Pledge ................................................................................................................
Chapter 3 Mortgage ............................................................................................................
Chapter 4 Antichresis ..........................................................................................................
Chapter 5 Chattel Mortgage ................................................................................................

144
146
150
151
153

TITLE XVII EXTRA-CONTRACTUAL OBLIGATIONS

Chapter 1 Quasi-contracts ...................................................................................................

154

Section 1. Negotiorum Gestio .....................................................................................

Section 2. Solutio Indebiti ...........................................................................................
Section 3. Other Quasi-Contracts ................................................................................

154
157
158

Chapter 2 Quasi-Delicts ......................................................................................................

159

TITLE XVIII DAMAGES

Chapter 1 Generals Provisions ............................................................................................
Chapter 2 Actual or Compensatory Damages .....................................................................
Chapter 3 Other Kinds of Damages ....................................................................................

166
166
171

Section 1. Moral Damages ..........................................................................................

Section 2. Nominal Damages ......................................................................................
Section 3. Temperate or Moderate Damages...............................................................
Section 4. Liquidated Damages ...................................................................................
Section 5. Exemplary or Corrective Damages ............................................................

172
173
174
174
175

TITLE XIX CONCURRENCE AND PREFERENCE OF CREDITS

Chapter 1 General Provisions .............................................................................................
Chapter 2 Classication of Credits .....................................................................................
Chapter 3 Order of Preference of Credits ..........................................................................

176
176
180

Transitional Provisions ................................................................................................

Repealing Clause .........................................................................................................

181
184

Related Concepts and Special Laws

Maceda Law ................................................................................................................
P.D. No. 957 (Subdivision and Condominium Buyers Protective Decree) ................
Republic Act No. 9653 ...............................................................................................
Electronic Commerce Act (R.A. No. 8792) ...............................................................

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