!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !

"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
CnA1Lk 8: SALL 8 NCN-CWNLk Ck
8 CNL nAVING VCIDA8LL 1I1LL:
"1he LIIL CI A CCN1kAC1 CI SALL"

I. Lffect of Sa|e Where Se||er Not Cwner at 1|me of erfect|on
Seller need noL be Lhe owner aL perfecLlon, provlded he
acqulres LlLle laLer on, buL when dellvery of ownershlp ls no
longer posslble, Lhe sale should be consldered vold. !""# %& '()
*+, -'.( /01 2/11+3
erfecLlon merely creaLes Lhe obllgaLlon Lo Lransfer ownershlp,
buL lL does noL by lLself Lransfer ownershlp.
o 1herefore, lL ls noL crlLlcal for a valld perfecLlon of a sale
Lo come abouL, LhaL Lhe seller aL LhaL Llme ls Lhe owner.

II. Lffect of Sa|e Where Se||er Not Cwner at 1|me of De||very (Art|c|e
1S0S), 456#7895: %& '"6;9 "< (==>5#?, */@ -'.( A,, 2/11*3.

Art|c|e 1S0S.
Sub[ect to the prov|s|ons of th|s 1|t|e, where goods are so|d by a
person who |s not the owner thereof, and who does not se|| them
under author|ty or w|th the consent of the owner, the buyer acqu|res
no better t|t|e to the goods than the se||er had, un|ess the owner of
the goods |s by h|s conduct prec|uded from deny|ng the se||er's
author|ty to se||.

Noth|ng |n th|s 1|t|e, however, sha|| affect:

(1) 1he prov|s|ons of any factors' act, record|ng |aws, or any other
prov|s|on of |aw enab||ng the apparent owner of goods to d|spose of
them as |f he were the true owner thereof,

(2) 1he va||d|ty of any contract of sa|e under statutory power of sa|e or
under the order of a court of competent [ur|sd|ct|on,

(3) urchases made |n a merchant's store, or |n fa|rs, or markets, |n
accordance w|th the Code of Commerce and spec|a| |aws. (n

456#7895: %& '(

Iacts: When AgaLona dled, she was succeeded by 2 sons: ascual and
uonaLo. She lefL 2 parcels of land. ascual dled leavlng 7 helrs. 1he LlLles
remalned ln Lhe name of AgaLona and Lhe loLs were never parLlLloned.
uonaLo, LhereafLer, execuLed an affldavlL of ueclaraLlon of Pelrshlp-
unllaLerally ad[udlcaLlng one of Lhe loLs Lo hlmself. Pe LhereafLer sold
Lhe enLlre loL Lo hls daughLer !ullana. lor Lhe fallure Lo pay Laxes, Lhe loL
was forfelLed and sold aL a publlc aucLlon, buL !ullana laLer redeemed
Lhe properLy. 1he Pelrs of ascual Lhen surfaced and soughL Lo parLlLlon
Lhe properLy.
1


Issue: WheLher or noL !ullana became Lhe owner of Lhe enLlre loL afLer
she redeemed lL herself.


1
AnLonlo, PlpollLo, lmperlal & Zaragosa. (2012). Salse CLv Case ulgesLs.
8eLrleved from hLLp://www.scrlbd.com/doc/104486360/Sales-CLv-Case-
ulgesLs
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
ne|d: nC. When uonaLo aulmlLan sold on May 28, 1974 LoL no. 1091
Lo hls daughLer !ullana . lanesa, he was only a co-owner wlLh
respondenLs and as such, he could only sell LhaL porLlon whlch may be
alloLLed Lo hlm upon LermlnaLlon of Lhe co-ownershlp. A co-owner could
only sell LhaL porLlon whlch may be alloLLed Lo hlm upon LermlnaLlon of
Lhe co-ownershlp. A sale of Lhe enLlre properLy by one co-owner
wlLhouL Lhe consenL of Lhe oLher co-owners ls noL null and vold.
Powever, only Lhe rlghLs of Lhe co-owner-sell are Lransferred, Lhereby
maklng Lhe buyer a co-owner of Lhe properLy. 1he sale by peLlLloner
uonaLo aulmlLan of Lhe land Lo hls daughLer, peLlLloner !ullana .
lanesa, dld noL glve Lo Lhe laLLer ownershlp over Lhe enLlre land buL
merely Lransferred Lo her Lhe one half (1/2) undlvlded share of her
faLher, Lhus maklng her Lhe co- owner of Lhe land ln quesLlon wlLh Lhe
respondenLs, her flrsL couslns. Powever, !ulla dld acqulre Lhe rlghL Lo be
relmbursed for half of Lhe redempLlon prlce she pald Lo Lhe rovlnclal
CovernmenL of negros CccldenLal on behalf of her co-owners. unLll
relmbursed, she holds a llen upon Lhe sub[ecL properLy for Lhe amounL
due her.

Doctr|ne:

noLe LhaL Lhe provlslon does noL say LhaL Lhe conLracL ls vold
o AlLhough a slLuaLlon (where Lhe sellers were no longer
owners) does noL appear Lo be one of Lhe vold conLracLs
enumeraLed ln ArLlcle 1409 of Clvll Code, and under
ArLlcle 1402 Clvll Code lLself recognlzes a sale where Lhe
goods are Lo be acqulred x x x by Lhe seller afLer Lhe
perfecLlon of Lhe conLracL of sale" clearly lmplylng LhaL
a sale ls posslble even lf Lhe seller was noL Lhe owner aL
Lhe Llme of sale, provlded he acqulres LlLle Lo Lhe
properLy laLer on, buL when dellvery of ownershlp ls no
longer posslble, Lhe sale should be consldered vold, and
consequenLly, Lhe rlghL Lo repurchase provlded Lhereln
would also be vold !""# %& '() *+, -'.( /01 2/11+3&
A seller may valldly sell" (enLer lnLo a valld and blndlng sale)
properLles whlch he enLlrely does noL own aL Lhe Llme of
perfecLlon. Such conLracL ls valld, and an acLlon Lo annul such
conLracL ls lmproper, and lL ls hls fallure Lo comply wlLh hls
obllgaLlon Lo Lransfer ownershlp over Lhe sub[ecL maLLer LhaL
would glve rlse Lo an acLlon for resclsslon wlLh damages.
lL ls aL Lhe consummaLlon sLage where Lhe prlnclple of nemo daL
quod non habeL (one cannoL glve whaL one does noL have)
applles. '5%89> B>%C9& D5:E %& -="6?>? -F;6? G87) H*0 -'.( H0,
2*III3
o ln sale, lL ls essenLlal LhaL Lhe seller ls Lhe owner of Lhe
properLy he ls selllng. 1he prlnclpal obllgaLlon of a seller
ls Lo Lransfer Lhe ownershlp of" Lhe properLy sold
(ArLlcle 1438). 1hls law sLems from Lhe prlnclple LhaL
nobody can dlspose of LhaL whlch does noL belong Lo
hlm: !"#$ &'( )*$& !$! +',"(& !"># %& '() *0I
-'.( +A 2/11@3&
/

lf one buys Lhe land of anoLher, Lo whlch Lhe seller ls supposed
Lo have a good LlLle, and ln consequence of facLs unknown allke
Lo boLh parLles, Lhe seller has ln facL no LlLle aL all, equlLy wlll
cancel Lhe sale and cause Lhe purchase money Lo be resLored Lo

1
'-./01 23 45657, 39 hll. 446 (1934), 8/9/05: 23 $01, 33 hll. 436 (1916).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
Lhe buyer, puLLlng boLh parLles ln 7;1;<7 =</& BD4 %& '() *01
-'.( HH/ 2/11@3

A. Sa|es by Co-Cwners (Art|c|e 493)

Art|c|e 493.
Lach co-owner sha|| have the fu|| ownersh|p of h|s part and of the
fru|ts and benef|ts perta|n|ng thereto, and he may therefore a||enate,
ass|gn or mortgage |t, and even subst|tute another person |n |ts
en[oyment, except when persona| r|ghts are |nvo|ved. 8ut the effect of
the a||enat|on or the mortgage, w|th respect to the co-owners, sha|| be
||m|ted to the port|on wh|ch may be a||otted to h|m |n the d|v|s|on
upon the term|nat|on of the co-ownersh|p. (399)

1. k|ght Cf A Co-owner r|or 1o art|t|on
none of Lhe co-owners may clalm any rlghL, LlLle or lnLeresL Lo a
parLlcular porLlon of Lhe Lhlng owned ln common.
o ln a conLracL of sale of co-owned properLy, whaL Lhe
vendee obLalns by vlrLue of such a sale are Lhe same
rlghLs as Lhe vendor had as co-owner (l.e., hls splrlLual
share), and Lhe vendee merely sLeps lnLo Lhe shoes of
Lhe vendor as co-owner. J45:K5:8L5: %& M578#) @0*
-'.( /,, 2*IIA3N
/
excepL when Lhe lnLenLlon of Lhe
purchase was clearly Lhe properLy lLself and noL [usL Lhe
splrlLual share. O8:P5:5" %& Q5=, /H -'.( /1I 2/1,@33


1
"7;/=<5 23 >1?@A<:1, 24 SC8A 39 (1968), 'B<@995 23 8', 421 SC8A 310 (2004),
'.1C1: 23 '.1C1:D 434 SC8A 333 (2003), ,19.5017 23 (/A17D 434 SC8A 393
(2003).
O8:P5:5" (R5P>7F) S:R& %& Q5=

Iacts: 8osenda and SoLero were among co-owners of 4 parcels of land,
whlch Lhey sold Lo lldefonso ?ap for some 100k wlLhouL Lhe consenL of
Lhe oLher co-owners. 1hey lncluded ln Lhe sale cerLaln bulldlngs and
laboraLory and oLher educaLlonal equlpmenL wlLhln Lhe sald properLles,
whlch were acLually owned by Mlndanao Academy. Mlndanao Academy
and Lhe oLher co-owners assalled Lhe valldlLy of Lhe sale. 1he Lrlal courL
declared Lhe sale null and vold. ?ap conLends LhaL Lrllnda, one of Lhe co-
owners ownlng 3/12 share of Lhe co-ownershlp, does noL have Lhe
sLandlng Lo challenge Lhe sale for belng ln bad falLh.
2


Issue: WheLher or noL Lhe sale ls null and vold.

ne|d: ?LS. 1he presLaLlon was lndlvlslble and lncapable of parLlal
annulmenL ln as much as ?ap admlLLed LhaL he would noL have enLered
lnLo Lhe LransacLlon excepL Lo acqulre all of Lhe properLles. 1he conLracL
of sale was vold because Lhe problem wlLh Lhe sale wenL lnLo one of Lhe
essenLlal requlslLes of a sale. 1here was no meeLlng of Lhe mlnds as Lo
Lhe sub[ecL maLLer. lf Lhe problem ls one of Lhe essenLlal requlslLes and
was only found durlng Lhe consummaLlon sLage, Lhe conLracL can be
volded even lf already aL Lhe consummaLlon sLage. lf Lhe problem ls only
wlLh regard Lo Lhe performance of an obllgaLlon, lL does noL affecL Lhe
perfecLlon of Lhe sale.


2
AnLonlo, PlpollLo, lmperlal & Zaragosa. (2012). Salse CLv Case ulgesLs.
8eLrleved from hLLp://www.scrlbd.com/doc/104486360/Sales-CLv-Case-
ulgesLs
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o ALLy. SanLlago: ln Lhls case, you have Lo look aL Lhe
lnLenL of Lhe parLles. ?ap was noL lnLeresLed ln Lhe lands
as much as he was lnLeresLed ln Lhe whole properLy
lnCLuulnC Lhe school and lLs conLenLs.
A co-owner can demand parLlLlon, buL before such, he has no
rlghL Lo dlvlde Lhe loL lnLo Lwo parLs, and convey Lhe whole of
one parL by meLes and bounds. G"=>T %& S#6?9;>) @ 4U8# @,+
2/1I,3
A co-owner, however, has Lhe power Lo allenaLe hls undlvlded
share over Lhe properLy. 1hus, lf before parLlLlon, he sells Lhe
enLlre properLy or a deflnlLe porLlon Lhereof wlLhouL consenL of
oLher co-owners, Lhe sale wlll only be valld wlLh regard Lo hls
undlvlded share ln Lhe properLy. 1he sale cannoL be consldered
as null and vold. D58#":V'5?8#5" %& '() /,I -'.( +HA N 456#7895:
%& '() */@ -'.( A,, 2/11*3
o 1he buyer Lhus becomes a co-owner of Lhe properLy.
o An agreemenL LhaL purporLs a speclflc porLlon of an un-
parLlLloned co-owned properLy ls noL vold, lL shall
effecLlvely Lransfer Lhe seller's ldeal share ln Lhe co-
ownershlp. W>8;? "< 9U> G59> -="6?>? (6;>#8" 5:P
X?=>;5:T5 D5#89> %& G87) 00, -'.( @0 2*II03&
/


2. kemedy Where Co-Cwner Se||s roperty r|or 1o art|t|on
ln whlch case, Lhe proper acLlon ls noL for nulllflcaLlon of sale, or
for Lhe recovery of possesslon of Lhe properLy owned ln
common from Lhe oLher co-owners, buL for dlvlslon or parLlLlon

1
':A50E91 23 F'8, 204 SC8A 142 (1991), G59010E5- 23 G59010E5-, 363 SC8A 811
(2001), 'B<@995 23 8', 421 SC8A 310 (2004), H10;/7 23 I<AC1/, 319 SC8A 408
(2007), 45J<C:@. 23 +5@97 /K G910.@7.1 &@B0/7LH/9/0/, 349 SC8A 38 (2008).
of Lhe enLlre properLy& JY"75? '#56P8" O>7";85# '"##>K>) S:R&
%& '"6;9 "< (==>5#?) H/, -'.( @I* 2/1113&
*

A co-owner who sells one of Lhe Lwo lands owned ln common
wlLh anoLher co-owner, and does noL Lurn-over one-half of Lhe
proceeds of Lhe sale Lo Lhe oLher co-owner, Lhe laLLer may by
law and equlLy lay excluslve clalm Lo Lhe remalnlng parcel of
land& JS7=>;85# %& '"6;9 "< (==>5#?) *@1 -'.( ,@ 2/11,3&
CLv's commenL: 1he rullngs seem Lo dlsregard Lhe commerclal
facL LhaL sellers and buyers agree on Lhe prlce based on Lhe slze
of Lhe properLy (l.e. buyers wlll pay more lf Lhey expecL Lo
acqulre Lhe enLlre properLy, buyers wlll pay less lf Lhey expecL Lo
acqulre [usL a parL). 1he proper remedy, accordlng Lo CLv, ls Lo
uphold Lhe valldlLy of Lhe sale, buL allow Lhe buyer Lo elLher (1)
seek resclsslon for breach of Lhe seller's obllgaLlon Lo dellver Lhe
ob[ecL agreed upon, or (2) accepL parLlal dellvery wlLh
approprlaLe reducLlon ln prlce.
ALLy. SanLlago: llnd Lhe besL remedy LhaL sulLs Lhe facLs of Lhe
case.
o lf Lhe lnLenL was Lo buy a deflnlLe porLlon (wlLhouL Lhe
consenL of Lhe co-owners belng obLalned) buL such area
cannoL be sold, Lhen Lhere would be no meeLlng of Lhe
mlnds. As such, Lhere would be a vold sale because one
of Lhe essenLlal requlslLes of a sale ls mlsslng.
o ueLermlne wheLher Lhe buyer wanLs Lo be a co-owner
of Lhe properLy, or wheLher Lhe buyer wanLs Lo be an
owner of a parLlcular porLlon of Lhe co-owned properLy.

2
+5@97 /K 4/A101 F0B?<BL(@9/ 23 8171:7D 363 SC8A 433 (2001), 'B<@995 23 8/<9;
/K 'JJ51:7, 421 SC8A 310 (2004).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o lf lL ls unclear whaL Lhe lnLenL of Lhe buyer ls and Lhe co-
owner-seller dld noL dlsclose hls lncapaclLy Lo sell LhaL
parLlcular porLlon (fraud), Lhen annulmenL of Lhe sale ls
Lhe proper remedy.

3. Lxcept|ons to ku|e on Lffect of Sa|e of Def|n|te ort|on of Co-
owner
a. 1he sub[ecL maLLer ls lndlvlslble by naLure or by lnLenL.
lL renders Lhe conLracL vold slnce Lhe buyer would noL
have enLered lnLo Lhe LransacLlon excepL Lo acqulre all
of Lhe properLles purchased by hlm. O8:P5:5"
(R5P>7F) S:R& %& Q5=) /H -'.( /1I 2/1,@3&
b. lf Lhe sale of a parLlcular porLlon ls wlLh consenL of
oLher co-owners, Lhe sale as Lo LhaL porLlon ls valld.
Lack of ob[ecLlon by Lhe co-owners ls ln effecL already a
parLlal parLlLlon. 457=#":5 %& O";>9") 1, -'.( ++@
2/1AI3.
c. A co-owner who sells one of Lhe Lwo lands owned ln
common wlLh anoLher co-owner, and does noL Lurn
over one-half of Lhe proceeds of Lhe sale Lo Lhe oLher
co-owner, Lhe laLLer may by law and equlLy lay excluslve
clalm Lo Lhe remalnlng parcel of land. I7=>;85# %& '"6;9
"< (==>5#?) *@1 -'.( ,@ 2/11,3.
d. lpso [ure Lransfer of ownershlp under ArLlcle 1434.
When Lhe co-owner-seller subsequenLly acqulres LlLle Lo
Lhe deflnlLe porLlon or Lhe enLlre properLy sub[ecL
maLLer of Lhe sale, Lhe LlLle auLomaLlcally passes Lo Lhe
buyer. 48?6!"# %& '!()* +, -!.)# /0#.(012 343 5678 39:
2/1113.
e. 8eglsLraLlon under Lhe 1orrens sysLem. lf Lhe 1orrens
LlLle shows LhaL Lhe properLy ls owned solely by Lhe
seller (l.e. no lndlcaLlon LhaL properLy ls co- owned), Lhe
buyer can rely on Lhe 1orrens LlLle. ';6T %& G>8?) H*+
-'.( @+I 2*III3.

III. Lxcept|ons: When Cwnersh|p 1ransfers by Act of the Non-Cwner
1hls should noL be confused wlLh double sales.
ln Lhls case, Lhe orlglnal owner ls a sLranger Lo Lhe sale
LransacLlon beLween Lhe seller and buyer.

A. Lstoppe| on 1rue Cwner (Art|c|e 1434) D6R9": %& Z5L5;, @@ -'.( 011
2/1+033

Art|c|e 1434.
When a person who |s not the owner of a th|ng se||s or a||enates and
de||vers |t, and |ater the se||er or grantor acqu|res t|t|e thereto, such
t|t|e passes by operat|on of |aw to the buyer or grantee.

D6R9": %& Z5L5;

Iacts: !oseflna boughL a parcel of land from vlllarln. 8y verbal
agreemenL, !oseflna sold a 1/2 porLlon Lhereof Lo nlcanora for 3,000.
nlcanora pald 1,000 Lhen 400-all evldence by recelpLs-Lhen she
loaned !oseflna 1,000 and LhereafLer along wlLh her spouse, Look
possesslon of Lhe loL and bullL Lhelr house as well as aparLmenLs
Lhereon. vlllarln Lhen lssued a ueed of Sale Lo !oseflna, buL Lhe laLLer
refused Lo execuLe Lhe correspondlng ueed of Sale Lo nlcanora. !oseflna
clalmed LhaL Lhe amounLs pald by nlcanora were ln Lhe concepL of
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
loans. 1hus, nlcanora flled a case for speclflc performance.

Issue: WheLher or noL Lhere was a sale beLween !oseflna and nlcanora.

ne|d: ?LS. When a person who ls noL Lhe owner of a Lhlng sells and
dellvers lL, and laLer Lhe seller acqulres LlLle LhereLo, such LlLle passes by
operaLlon of law Lo Lhe buyer. Seller ls subsequenLly barred by esLoppel
from clalmlng oLherwlse. Assumlng LhaL aL Lhe Llme when !oseflna sold
Lhe loL Lo nlcanora, she was noL yeL Lhe owner Lhereof. When vlllarln
execuLed Lhe ueed of Sale ln her favor, LlLle passed Lo nlcanora by
operaLlon of law. AlLhough Lhe sale beLween !oseflna and nlcanora was
verbal, lL was as beLween Lhem. Conslderlng LhaL nlcanora has pald Lhe
purchase prlce, she became owner of 1/2 of Lhe loL. Llkewlse, alLhough
Lhe complalnL was LlLled speclflc performance" lL was acLually one for
quleLlng of LlLle, whlch ls lmprescrlpLlble so long as Lhe plalnLlff ls ln
possesslon of Lhe loL.

Doctr|ne:

8. kecord|ng Laws, 1orrens System (res|dent|a| Decree No. 1S29).
1he defense of lndefeaslblllLy of 1orrens LlLle where Lhe
dlspuLed bulldlngs and equlpmenL are locaLed ls unavalllng,
slnce such defense ls avallable Lo sale of lands and noL Lo sale of
properLles slLuaLed Lhereln& JY?58 %& '() H,, -'.( H*0 2*II/3&
A person who deals wlLh reglsLered land Lhrough someone who
ls noL Lhe reglsLered owner ls expecLed Lo look beyond Lhe
cerLlflcaLe of LlLle and examlne all Lhe facLual clrcumsLances
Lhereof ln order Lo deLermlne lf Lhe vendor has Lhe capaclLy Lo
Lransfer any lnLeresL ln Lhe land. -F %& '5=8?9;5:") [;&) @,I -'.(
/IH 2*IIA3&
o Where lnnocenL Lhlrd persons, relylng on Lhe
correcLness of Lhe cerLlflcaLe of LlLle Lhus lssued, acqulre
rlghLs over Lhe properLy, Lhe courL cannoL dlsregard
such rlghLs and order Lhe cancellaLlon of Lhe cerLlflcaLe,
slnce Lhe effecL of such ouLrlghL cancellaLlon wlll be Lo
lmpalr publlc confldence ln Lhe cerLlflcaLe of LlLle. Lvery
person deallng wlLh Lhe reglsLered land may safely rely
on Lhe correcLness of Lhe cerLlflcaLe of LlLle lssued
Lherefor and Lhe law wlll ln no way obllge hlm Lo go
behlnd Lhe cerLlflcaLe Lo deLermlne Lhe condlLlon of Lhe
properLy. JW>8;? "< -="6?>? D>:89" Z5%8:"& %& '"6;9 "<
(==>5#?) *1/ -'.( 01@ 2/11A3&
An lnnocenL purchaser for value ls one who purchases a LlLled
land by vlrLue of a deed execuLed by Lhe reglsLered owner
hlmself noL by a forged deed. JS:?6;5:R> ->;%8R>? 5:P
'"77>;R85# Y;5P>;?) S:R& %& '() H0/ -'.( @+* 2*III3&
o An lnnocenL purchaser for value ls one who buys Lhe
properLy of anoLher wlLhouL noLlce LhaL some oLher
person has a rlghL Lo or lnLeresL ln lL, and who pays a full
and falr prlce aL Lhe Llme of Lhe purchase or before
recelvlng any noLlce of anoLher person's clalm. 1he
burden of provlng Lhe sLaLus of a purchaser ln good
falLh and for value lles upon one who asserLs LhaL
sLaLus. 1hls /0<7 J9/C10E@ cannoL be dlscharged by
mere lnvocaLlon of Lhe ordlnary presumpLlon of good
falLh. .6<#"> %& D6;K"?) @++ -'.( *,0) *+*V*+H 2*II13&
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
ALLy. SanLlago: 1he lndefeaslblllLy of Lhe 1orrens sysLem
proLecLs an lv, even when Lhe real owner was unlawfully
deprlved Lhereof. 1hls ls ln conLrasL Lo Lhe rule on movables.

C. Statutory ower Crder Cf Courts
!udgmenLs of courLs dlvesLlng Lhe reglsLered owner of LlLle and
vesLlng Lhem ln Lhe oLher parLy are valld.
Sale by a sherlff of land levled upon aL publlc aucLlon would
valldly Lransfer ownershlp Lo Lhe hlghesL bldder.
When a defeaLed parLy refuses Lo execuLe Lhe absoluLe deed of
sale ln accordance wlLh Lhe [udgmenL, Lhe courL may dlrecL Lhe
acL Lo be done aL Lhe cosL of Lhe dlsobedlenL parLy by some
oLher person appolnLed by Lhe courL and Lhe acL when so done
shall have Lhe llke effecL as ls done by Lhe parLy. JO5:8#5
.>7:5:9 '"&) S:R& %& '() *H/ -'.( *A/ 2/1103

D. Sa|e In Merchants Stores, Ia|rs Cr Markets (Art|c|es 8S and 86, Code
of Commerce)
1hls ls an example of an lmperfecL or vold LlLle rlpenlng lnLo a
valld one. 1he rlghLs and lnLeresL of an lnnocenL purchaser for
value ls proLecLed ln order Lo faclllLaLe commerclal sales on
movables and Lo glve sLablllLy Lo buslness LransacLlon. -6:
D;"9U>;? \ '"& %& ]>#5?R") @0 M&Z& @/0H 2/1@A3

-6: D;"9U>;? \ '"& %& ]>#5?R"

Iacts: Sun 8roLhers sold an Admlral 8efrlgeraLor Lo Lopez upon Lhe
agreemenL LhaL ownershlp wlll only pass Lo Lhe laLLer upon paymenL of
Lhe full purchase prlce. Lopez pald only Lhe downpaymenL and sold Lhe
same Lo !v 1radlng (owned by velasco) and was dlsplayed ln Lhe laLLer's
sLore. lL was LhereafLer boughL by Co kang Chlu from !v 1radlng. Sun
8roLhers soughL Lo recover Lhe refrlgeraLor.

Issue: WheLher or noL Sun 8roLhers may recover Lhe refrlgeraLor.

ne|d: nC. 1he general rule ls LhaL when a person who ls noL Lhe owner
of a Lhlng sells Lhe same, Lhe buyer acqulres no beLLer LlLle Lhan Lhe
seller has. Applylng Lhe general rule, Lopez by reason of Lhe agreemenL
had no LlLle Lo Lhe goods for havlng falled Lo pay Lhe full prlce. lL
Lherefore follows LhaL !v 1radlng had no LlLle LhereLo as velasco was
obllged Lo lnqulre Lo lnqulre lf Lopez had good LlLle Lo Lhe refrlgeraLor.

Powever, a purchase ln good falLh ln a merchanL sLore, or falr, or
markeL ls proLecLed by law. When Lhe refrlgeraLor was sold Lo Co kang
Chlu, Lhe laLLer acqulred a valld LlLle Lo Lhe Lhlng. Co kang Chlu
purchased Lhe refrlgeraLor ln a merchanL sLore, for value and ln good
falLh. 1hus, he ls proLecLed by Lhe law as an lnnocenL purchaser.

lL ls an excepLlon Lo Lhe general rule LhaL no Lransfer of ownershlp may
be had Lhrough an acL of a non-owner. 1he rlghLs and lnLeresL of an
lnnocenL buyer for value who boughL a Lhlng from a merchanL sLore
should be proLecLed when lL comes lnLo clash wlLh Lhe rlghL and
lnLeresLs of a vendor. 1he buyer cannoL be reasonably expecLed Lo look
behlnd Lhe LlLle of arLlcles he buys ln a sLore.

Doctr|ne:

!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
SLore" ! any place where goods are kepL for sale or where
goods are deposlLed and sold by one engaged ln buylng and
selllng Lhem. '89F "< O5:8#5 %& D6K?6E G67L>; '"&) /I/ 4U8#& A@1
2/1@+3

'89F "< O5:8#5 %& D6K?6E

Iacts: 8ugsuk Lumber had an offlce ln Manlla. lL was organlsed Lo buy
and sell lumber, and ln 1931 made sales of lumber Lo several flrms. ln
1932, Lhe ClLy 1reasurer assessed lL for llcense fees and mayor's
permlL-alleglng LhaL 8ugsuk sold aL wholesale and reLall Lo dlfferenL
lumber dealers ln Manlla. 8ugsuk refused Lo pay alleglng LhaL Lhe
lumber lL produced were dellvered dlrecLly from Lhe shlpper Lo Lhe
buyer, LhaL Lhey pald Lhe approprlaLe 1lmber Llcense lees and LhaL Lhelr
Manlla Cfflce only recelved orders and accepLed paymenLs. 8ugsuk
alleges LhaL lL ls noL a dealer and lLs offlce ls noL a sLore Lo warranL Lhe
lmposlLlon of Lhe addlLlonal Laxes. ln oLher words, Lhey produced Lhe
logs Lhemselves and senL Lhem dlrecLly Lo Lhe consumers - Lhey were
noL a mlddleman beLween a producer and a consumer, raLher Lhey were
a producer.

Issue: WheLher or noL appellanL, malnLalnlng a prlnclpal offlce ln
Manlla, recelvlng orders for lLs producLs and accepLlng ln sald offlce
paymenLs LhereLo, can be consldered a dealer ln Lhe clLy and Lherefore
llable for addlLlonal Laxes.

ne|d: nC. A dealer ls a mlddleman beLween Lhe producer and Lhe
consumer. A dealer buys Lo sell agaln, 8ugsuk produced lLs own lumber
from alawan. 1hus, lL ls noL a dealer. lLs Manlla offlce ls noL a sLore as
well. A sLore ls a place where goods are kepL for sale - wheLher for
reLall or wholesale. 1he Manlla offlce only processed Lhe orders and
paymenLs, lL dld noL keep goods Lhereln or acL as a dealer or
lnLermedlary beLween Lhe fleld offlce and Lhe cusLomers. 1hus, lL ls noL
llable for Lhe sald Laxes.

Doctr|ne: 1he necessary elemenL of sLore" ls LhaL Lhere are goods or
wares dlsplayed or sLored Lhereln. Also, Lhe flrm musL be acLually
engaged ln Lhe buslness of buylng and selllng. lf a flrm produces,
manufacLures, and dellvers lLs own produce from lLs warehouses and
Lhey have no sLores open for sale, flrm ls noL a merchanL sLore

IV. Sa|e by Cne nav|ng Vo|dab|e 1|t|e on the Sub[ect Matter (Art|c|e
1S06, as an except|on to Art|c|e SS9)

Art|c|e 1S06.
Where the se||er of goods has a vo|dab|e t|t|e thereto, but h|s t|t|e has
not been avo|ded at the t|me of the sa|e, the buyer acqu|res a good
t|t|e to the goods, prov|ded he buys them |n good fa|th, for va|ue, and
w|thout not|ce of the se||er's defect of t|t|e. (n)

Slnce Lhe provlslon Lalks of paymenL by Lhe buyer and Lransfer
of LlLle Lo Lhe buyer, Lhe provlslon applles Lo Lhe consummaLlon
sLage of Lhe conLracL.
o lf afLer perfecLlon buL before consummaLlon, Lhe seller's
voldable LlLle becomes vold, Lhe buyer does noL obLaln
good LlLle.
Cood falLh ls requlred.
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o 1he language of Lhe deed of sale may show bad falLh on
Lhe parL of Lhe buyer, and such bad falLh would glve Lhe
buyer no rlghL greaLer Lhan LhaL of Lhe seller. G87E>9E58
-":? O8##8:K S:R& %& '"6;9 "< (==>5#?) *@I -'.( @*H
2/11@3

A. App||cab|e ku|es to Immovab|es
ArLlcles 1303 and 1306 do noL apply Lo lmmovables. When Lhe
seller of a parcel of land has only voldable or vold LlLle Lo Lhe
properLy, Lhe buyer, even Lhough ln good falLh and for value,
Lakes only Lhe same LlLle as Lhe seller had.
lor land, Lhe 1orrens sysLem sLlll prevalls. W>8;? "< -="6?>?
D>:89" Z5%8:"& %& '"6;9 "< (==>5#?) *1/ -'.( 01@ 2/11A3
Genera| ku|e: 1he rule LhaL Lhe dlrecL resulL of a prevlously vold
conLracL cannoL be valld ls unavalllng when lL wlll conLravene
Lhe 1orrens sysLem, where lL sLaLes LhaL lnnocenL Lhlrd persons,
relylng on Lhe correcLness of Lhe cerLlflcaLe of LlLle Lhus lssued,
acqulre rlghLs over Lhe properLy, Lhe courL cannoL dlsregard
such rlghLs and order Lhe cancellaLlon of Lhe cerLlflcaLe.
o Lxcept|on: Powever, Lhe defense of lndefeaslblllLy of
1orrens LlLle ls unavalllng Lo properLles and oLher
lmprovemenLs slLuaLed or bullL on Lhe land. Y?58 %& '()
H,, -'.( H*0 2*II/3
A person who deals wlLh reglsLered land Lhrough someone who
ls noL Lhe reglsLered owner ls expecLed Lo look beyond Lhe
cerLlflcaLe of LlLle and examlne all Lhe facLual clrcumsLances
Lhereof ln order Lo deLermlne lf Lhe vendor has Lhe capaclLy Lo
Lransfer any lnLeresL ln Lhe land. -F %& '5=8?9;5:") [;&) @,I -'.(
/IH 2*IIA3

8. "1|t|e" as to Movab|e ropert|es

Art|c|e SS9.
1he possess|on of movab|e property acqu|red |n good fa|th |s
equ|va|ent to a t|t|e. Neverthe|ess, one who has |ost any movab|e or
has been un|awfu||y depr|ved thereof may recover |t from the person
|n possess|on of the same.

If the possessor of a movab|e |ost or wh|ch the owner has been
un|awfu||y depr|ved, has acqu|red |t |n good fa|th at a pub||c sa|e, the
owner cannot obta|n |ts return w|thout re|mburs|ng the pr|ce pa|d
therefor. (464a)

Genera| ku|e: 1he lawful owner of movable properLy unlawfully
deprlved Lhereof may recover Lhe same. rovlded, lf such
recovery ls made from a person who lawfully boughL Lhe same
from a publlc sale, Lhe buyer ln good falLh musL be relmbursed.
o Lxcept|ons to Art|c|e SS9:
" 8y cross-reference Lo ArLlcle 1303, Lhe owner
cannoL recover Lhe movable lf lL was already
boughL from a merchanL sLore.
Lxcept|on: lf lL was merely dlsplayed aL
Lhe merchanL sLore aL Lhe Llme of
recovery, Lhen recovery ls sLlll posslble
- even wlLhouL relmbursemenL.
" 8y cross-reference Lo ArLlcle 1306, lf Lhe
possessor ln good falLh acqulred LlLle from a
seller who aL Lhe Llme of dellvery had a voldable
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
LlLle LhereLo, Lhe orlglnal owner cannoL recover
Lhe movable.
Whenever Lhere ls an underlylng conLracL of sale whlch granLs
Lo Lhe culprlL-buyer a voldable LlLle, even when Lhls ls
accompanled by Lhe crlmlnal acL of esLafa or swlndllng, ArLlcle
1306 would granL Lo Lhe buyer ln good falLh a beLLer LlLle as
agalnsL Lhe orlglnal owner even Lhough Lhe laLLer may be
classlfled Lo have been unlawfully deprlved" of Lhe sub[ecL
maLLer under ArLlcle 339. Y5K595R %& [87>:>T, @H M&Z& H+1*
2/1@+3N XB'( 46L#8?U8:K %& -5:9"?) /A0 -'.( ,/0 2/11I3&

Y5K595R %& [87>:>T

Iacts: 1agaLac boughL a car abroad and broughL lL Lo Lhe hlllpplnes.
Warner lelsL decelved her lnLo bellevlng LhaL he was very rlch and
purchased her car. She dellvered possesslon Lhereof. Levy (anoLher
name of lelsL) lssued her a posLdaLed check, whlch was dlshonored.
lelsL Lhen dlsappeared wlLh Lhe car. lelsL was able Lo reglsLer Lhe car ln
hls name and evenLually sold Lhe car Lo Sanchez, who Lhen sold Lhe
same Lo !lmenez. !lmenez even labored Lo verlfy Lhe car's records wlLh
MoLor vehlcle Cfflce. !lmenez Lhen dellvered Lhe car Lo Callfornla Car
Lxchange for dlsplay. 1agaLac, upon flndlng ouL, soughL Lo recover Lhe
car, buL !lmenez refused.

Issue: WheLher or noL 1agaLac may recover.

ne|d: nC. Whenever Lhere ls a conLracL of sale whlch granLs Lo Lhe
culprlL-buyer (lelsL) a voldable LlLle, even lf accompllshed Lhrough esLafa
or swlndllng, Lhe buyer ln good falLh (!lmenez) ls granLed a beLLer LlLle as
agalnsL Lhe orlglnal owner (1agaLac) even Lhough Lhe laLLer (1agaLac)
may be classlfled Lo have been unlawfully deprlved" of Lhe sub[ecL
maLLer (ArLlcle 1306).

!lmenez was a buyer ln good falLh of Lhe car - he had no knowledge of
any defecL ln Lhe LlLle of Lhe seller. lL ls Lrue LhaL one who has losL any
movable or has been unlawfully deprlved Lhereof may recover Lhe same
from Lhe possessor. Powever, 1agaLac was nC1 unlawfully deprlved
wlLhln Lhe conLexL of Lhe Clvll Code. 1he sale beLween lelsL and 1agaLac
was merely voldable (valld unLll annulled). 1here was a valld
Lransmlsslon of ownershlp. 1he facL LhaL lelsL dld noL pay only glves rlse
Lo an acLlon Lo resolve Lhe conLracL or demand paymenL. When lelsL
sold Lhe car Lo Sanchez, Lhe sale beLween hlm and 1agaLac was sLlll
valld, Lherefore, good LlLle passed Lo Sanchez. As beLween 2 lnnocenL
parLles, Lhe one who made posslble Lhe ln[ury musL bear Lhe loss.

Doctr|ne:

ALLy. SanLlago: lL was Lhe dellvery of Lhe car LhaL lawfully Lransferred Lhe
properLy from 1agaLac Lo lelsL. 1he bounclng Lhe check goes lnLo Lhe
consummaLlon of Lhe paymenL. Powever, slnce Lhere has been proper
dellvery, Lhe buyer may Lhen valldly sell lL anoLher. 1hls ls relnforced ln
LuCA ubllshlng v. SanLos.

XB'( 46L#8?U8:K %& -5:9"?

Iacts: LuCA sold 406 books Lo !ose Cruz whereln Lhe laLLer lssued a
check as paymenL. Cruz ln Lurn sold 120 of Lhose books Lo Leonor
SanLos. Meanwhlle, LuCA became susplclous of Cruz when he placed hls
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
second order. 1hey lnvesLlgaLed and found ouL LhaL !ose Cruz was an
lmposLor and Lhe check he lssued was drawn agalnsL a closed accounL.
LuCA Lhen forclbly Look Lhe 120 books from SanLos.
Issue: WheLher or noL LuCA may reLrleve Lhe books from SanLos

ne|d: nC. SanLos was a purchaser ln good falLh and exerclsed due
dlllgence when he asked for Lhe lnvolce from LuCA before purchaslng lL
from Cruz. non-paymenL only creaLes a rlghL Lo demand paymenL or Lo
resclnd Lhe conLracL, or Lo crlmlnal prosecuLlon ln Lhe case of bounclng
checks. 8uL absenL Lhe sLlpulaLlon LhaL ownershlp shall noL pass unLll full
paymenL, dellvery of Lhe Lhlng sold wlll effecLlvely Lransfer ownershlp Lo
Lhe buyer who can ln Lurn Lransfer lL Lo anoLher. Cwnershlp of Lhe
books passed Lo 1omas upon Lhe dellvery Lhereof. Pe had Lhe rlghL Lo
Lransfer Lhe same Lo SanLos. 1he facL LhaL he dld noL pay for Lhe books
only warranLs resclsslon or an acLlon for paymenL. LuCA cannoL be
consldered Lo have been unlawfully deprlved under Lhe CC as Lo warranL
recovery of Lhe books from SanLos. ossesslon of movable properLy
acqulred ln good falLh ls equlvalenL Lo LlLle

Doctr|ne:

1hus, when owner dld noL volunLarlly dellver possesslon of Lhe
car, and ln effecL lL was sLolen from hlm, Lhen one who buys Lhe
car even ln good falLh from Lhe Lhlef wlll lose Lhe car Lo Lhe
owner who ls deemed Lo have been unlawfully deprlved. (T:5;
%& Q5=P85:KR") /H -'.( 0A, 2/1,@3.

(T:5; %& Q5=P85:KR"

Iacts: 1eodoro SanLos adverLlsed for sale hls lord lalrlane car. ue ulos
approached Lhem purporLlng Lo be a nephew of Marella. 1eodoro,
LransacLed wlLh Marella who agreed Lo buy Lhe car, agreelng Lo pay Lhe
same only afLer Lhe car has been reglsLered ln hls name. 1eodoro
lnsLrucLed hls son, lrlneo noL Lo parL wlLh ue ulos unLll he has recelved
Lhe full paymenL of Lhe car. 1he ueed was reglsLered ln hls name, buL
Marella has yeL Lo pay so Lhe documenLs were noL dellvered Lo hlm.
Marella pleaded wlLh lreneo LhaL he and ue ulos proceed Lo Marella's
slsLer Lo secure Lhe shorLage of cash. Marella also lnduced lreneo Lo glve
hlm Lhe documenLs under Lhe preLexL LhaL he wlll show Lhem Lo hls
lawyer. lreneo agreed. 1hey proceeded LhereLo, lreneo was
accompanled by ue ulos and an anonymous person. ue ulos made
lreneo walL and LhereafLer escaped wlLh Lhe car and Lhe deed. Marella
was Lhen able Lo sell Lhe car Lo Aznar. 1he pollce LhereafLer selzed Lhe
car ln Aznar's possesslon. Aznar counLered wlLh a complalnL for
8eplevln.

Issue: WheLher or noL SanLos may recover from Aznar.

ne|d: ?LS. lL should be recalled LhaL whlle Lhere was lndeed a conLracL
of sale beLween Marella and SanLos, Lhe former, as vendee, Look
possesslon of Lhe sub[ecL maLLer Lhereof by sLeallng Lhe same whlle lL
was ln Lhe cusLody of Lhe laLLer's son. 1eodoro was clearly unlawfully
deprlved of Lhe car. 1here was no valld dellvery Lo Marella, hence Lhe
laLLer acqulred no LlLle Lo Lhe car. Pe nelLher had a voldable LlLle under
ArLlcle 1306 nor was lL dellvered Lo hlm. SanLos has a beLLer rlghL.
Moreover ArLlcle 339 (lrrevlndlcablllLy) does noL apply. 1he common
law prlnclple LhaL where 1 of 2 lnnocenL persons musL suffer by a fraud
perpeLraLed by anoLher, Lhe law lmposes Lhe loss upon Lhe parLy who,
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
by hls mlsplaced confldence, has enabled Lhe fraud Lo be commlLLed,
cannoL be applled ln a case whlch ls covered by an express provlslon of
law.

Doctr|ne: 1hus, when owner dld noL volunLarlly dellver possesslon of
Lhe car, and ln effecL lL was sLolen from hlm, Lhen one who buys Lhe car
even ln good falLh from Lhe Lhlef wlll lose Lhe car Lo Lhe owner who ls
deemed Lo have been unlawfully deprlved.

ALLy. SanLlago: Lhere was noL proper dellvery as conLemplaLed by law

ln all oLher cases of unlawful deprlvaLlon done Lhrough esLafa,
Lhe orlglnal owner recovers even from Lhe buyer ln good falLh.
';6T %& 45U598, 1A 4U8#& +AA 2/1@,33 ^'G]_ B>R8?8": ?U"`>P 9U59
?>R":P L6F>;) "; R6;;>:9 ="??>??"; R"6#P :"9 R#587 K""P <589U
L>R56?> "< >;5?6;>? 8: 9U> R"%>;8:K P"R67>:9? =;>?>:9>P LF
U8? ?>##>;a

';6T %& 45U598

Iacts: !ose Cruz dellvered hls car Lo 8ellzo for Lhe laLLer Lo sell Lhe same.
8ellzo forged Lhe leLLer of Cruz Lo Lhe MoLor SecLlon of Lhe 8ureau of
ubllc Works and converLed Lhe same lnLo a ueed of Sale. uslng Lhe
forged deed, he had Lhe car reglsLered ln hls name. 1hereafLer, 8ellzo
sold Lhe car Lo 8ulahan, who ln Lurn sold Lhe same Lo ahaLl. Powever,
Lhe car was lmpounded by Lhe pollce, and Lhe sale Lo ahaLl was
cancelled. 8ulahan now conLends LhaL beLween 2 lnnocenL parLles
(8ulahan and Cruz), Lhe person who made posslble Lhe ln[ury musL bear
Lhe loss-ln Lhls case, supposedly Cruz.

Issue: WheLher or noL Cruz may recover Lhe car.

ne|d: ?LS. 8oLh Cruz and 8ulahan are ln good falLh. Cruz as a beLLer rlghL
Lo Lhe car ln quesLlon Lhan defendanL 8ulahan for lL cannoL be dlspuLed
LhaL Cruz had been lllegally deprlved Lhereof because of Lhe lngenlous
scheme uLlllzed by 8ellzo Lo enable hlm Lo dlspose of lL as lf he were Lhe
owner Lhereof. undlspuLed ls Lhe facL LhaL Lhe leLLer was falslfled and
Lhls facL can be clearly seen by a cursory examlnaLlon of Lhe documenL.
lf 8ulahan had been more dlllgenL he could have seen LhaL Lhe perLlnenL
porLlon of Lhe leLLer had been erased whlch would have placed hlm on
guard Lo make an lnqulry as regards Lhe auLhorlLy of 8ellzo Lo sell Lhe
car. 1hls he falled Lo do.

ArLlcle 339, one who has losL any movable or has been lawfully
deprlved Lhereof, may recover lL from Lhe person ln possesslon of Lhe
same and Lhe only defense ls lf Lhe oLher parLy has acqulred lL ln good
falLh and aL a publlc sale" and ArLlcle 1303, sellers who are noL owners
xxx buyer acqulres no beLLer rlghL Lhan Lhe seller" are appllcable ln Lhls
slLuaLlon.

Doctr|ne: ln all oLher cases of unlawful deprlvaLlon done Lhrough esLafa,
Lhe orlglnal owner recovers even from Lhe buyer ln good falLh. ';6T %&
45U598 21A 4U8#& +AA3
CLv: ueclslon showed LhaL second buyer, or currenL possessor
could noL clalm good falLh because of erasures ln Lhe coverlng
documenLs presenLed by hls seller

!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
Cwner of dlamond rlng may recover possesslon of Lhe same
from pawnshop where Lhe owner's agenL had pledged lL
wlLhouL auLhorlLy Lo do so, ArLlcle 339 applles and Lhe defense
LhaL Lhe pawnshop acqulred possesslon wlLhouL noLlce of any
defecL of Lhe pledgor-agenL ls unavalllng. B8T": %& -6:95F) 0+
-'.( /,I 2/1+*33
M
^S: 9U"?> R5?>? ="??>??"; 8? 5 7>;RU5:9 5:P
":#F U5? 5 =#>PK> 8: U8? <5%";a&

B8T": %& -6:95F

Iacts: Lourdes SunLay ls Lhe owner of a 3-caraL dlamond rlng valued aL
3,300. She and ClarlLa Slson enLered lnLo a LransacLlon whereln Lhe
rlng would be sold on commlsslon. ClarlLa recelved Lhe rlng and lssued a
recelpL. AfLer some Llme, Lourdes made demands for Lhe reLurn of Lhe
rlng buL Lhe laLLer refused Lo comply. When Lourdes lnslsLed on Lhe
reLurn, ClarlLa gave her Lhe pawnshop LlckeL whlch ls Lhe recelpL of Lhe
pledge and she found ouL LhaL 3 days afLer Lhe rlng was recelved by
ClarlLa, lL was pledged by Mella Slson, Lhe nlece of ClarlLa's husband ln
connlvance wlLh ClarlLa wlLh Lhe pawnshop of uomlnador ulzon for
2,600. Lourdes Lhen flled an esLafa case. She Lhen asked uomlnador
ulzon for Lhe reLurn of Lhe rlng pledged buL refused Lo reLurn Lhe rlng
Lhus Lhe case flled by Lourdes. 1he Cll lssued a wrlL of replevln so
Lourdes was able Lo have possesslon of Lhe rlng durlng Lhe pendency of
Lhe case. 1he Cll also ruled ln her favor whlch was afflrmed by Lhe CA
on appeal. 1hus Lhe case aL bar.

Issue: WheLher or noL SunLay may recover Lhe rlng from Lhe pawnshop.

1
N1:591 23 #1;<;5, 9 hll. 479 (1908), '95017 23 416A<0E/, 19 hl. 47 (1911).

ne|d: ?LS. Art|c|e SS9 applles here. Lourdes, belng unlawfully deprlved
of her rlng Lhus she has a rlghL Lo recover lL from Lhe currenL possessor.
ulzon ls engaged ln a buslness where presumably ordlnary prudence
would requlre hlm Lo lnqulre wheLher or noL an lndlvldual who ls
offerlng Lhe [ewelry by pledge ls enLlLled Lo do so. 1he prlnclple of
esLoppel cannoL help hlm aL all. Slnce Lhere was no precauLlon avalled
of, perhaps because of Lhe dlfflculLy of reslsLlng opporLunlLy for proflL,
he only has hlmself Lo blame and should be Lhe lasL Lo complaln lf Lhe
rlghL of Lhe Lrue owner of Lhe [ewelry should be recognlzed.

Doctr|ne: Cwner of dlamond rlng may recover possesslon of Lhe same
from pawnshop where Lhe owner's agenL had pledged lL wlLhouL
auLhorlLy Lo do so, ArLlcle 339 applles and Lhe defense LhaL Lhe
pawnshop acqulred possesslon wlLhouL noLlce of any defecL of Lhe
pledgor-agenL ls unavalllng.
CLv: ln Lhose cases possessor ls a merchanL and only has a
pledge ln hls favor.