II.

Parties, Object and Price

A. Parties to a Contract of Sale
2.1. Capacity to Buy and Sell - (Arts. 1489, 1490, 1491, 1492)
2.2. General Rule (Art. 1489)
2.3. Kinds of Incapacity
2.4.Absolute Incapacity (Arts. 39, 1327, 1397, 1399)
2.5. Relative Incapacity (Arts. 39, 1490)
2.6. Special Disqualifications (Arts. 1491, 1492)
2.7. Effects of Incapacity
B. Object of Sale
2.8.Requisites of a valid object of sale (Arts. 1459, 1460, 1461, 1462, 1465) 2.9. Emptio
Rei Speratae v. Emptio Spei (Art. 1461)
2.10. Kinds of Goods (Art. 1462; Contra Article 2018)
2.11.Other kinds of object of sale (Arts. 1349, 1381, 1462, 1463, 1464, 1465) 2.12. Illicit
Objects (Arts. 1575, 1347, in violation of the Constitution)
C. Price (Arts. 1469-1474)
2.13.Meaning of Price
2.14.In Money or Its Equivalent
2.15.Requisites for a valid price
2.16.Manner of payment must be agreed upon
2.17.How price is determined (Arts. 1469, 1472, 1473)
2.18.When no price is agreed upon (Art. 1474)
2.19.Presumption In favor of a Sufficient Consideration for a Contract (Art. 1359)
2.20.Inadequacy of price (Arts 1355, 1470)
2.21.Simulated Price (Art. 1471)
2.22.False Price (Arts. 1353, 1359)
2.23.Earnest money v. Option Money (Arts. 1479, 1482)
Cases:
Robern Development Corporation, et al. v. Peoples Landless Association, G.R. No. 173622.
March 11, 2013 Heirs of Policronio M. Ureta, Sr. v. Heirs of Liberato M. Ureta G.R. No.
165748, September 14, 2011 Hadja Fatima Gaguil Magoyag, v. Hadji Abubacar Maruhom,
G.R. No. 179743, August 2, 2010. Golden Apple Realty and Development Corporation v.
Sierra Grande Realty Corporation, G.R. No. 119857, July 28, 2010 Makati Sports Club, Inc.
v. Cecile H. Cheng, G.R. No. 178523, June 16, 2010 Jacobus Bernhard Hulst v. PR Builders,
Inc., G.R. No. 156364, September 3, 2007 Sps. Jorge and Carmelita Navarra, et al. v.
Planters Development Bank, et. al., G.R. No. 172674, July 12, 2007 Surtida v. Rural Bank
of Malinao (Albay), Inc., G.R. No. 170563, December 20, 2006, 511 SCRA 507, 519.
Wilfredo T. Vagilidad v. Gabino Vagilidad, Jr., G.R. No. 161136., November 16, 2006
Laura M. Marnelego v. Banco Filipino Savings and Mortgage Bank, G.R. No. 161524,
January 27, 2006 Quijada v. Court of Appeals, G.R. No. 126444 December 4, 1998
Tigno V. Court of Appeals, G.R. No. 110115, October 8, 1997
Philippine National Bank v. Court of Appeals And Industrial Enterprises, Inc., G.R. No.
118357, May 6, 1997
III. Formation of a Contract of Sale
3.1. Stages of a contract of sale

A. Preparatory (Arts. 1319 1336)

3.2. Policitation/Negotiation
3.3. Offer and Acceptance; Their Forms
3.4. Option Contract (Art. 1479, 1329)
Definition/Elements/Characteristic
3.5. Mutual Promise to buy and sell (Art. 1479)
3.6. Right of First Refusal
B. Perfection (Art. 1475)
3.7. Consent
Elements: (Arts. 1319 1336)
3.8. Sale by Auction (Art. 1476)
3.9. Form of Contract of Sale (Formalities of Contract of Sale) (Art. 1483)
3.10. Statute of Frauds under Article 1403 (2); Exceptions
3.11. Validity of the Deed of Sale
3.12. Section 8 of Republic Act No. 8792, otherwise known as Electronic Commerce Act
C. Consummation
Cases:
Ali Akang v. Municipality of Isulan, Sultan Kudarat Province, G.R. No. 186014 June 26,
2013
Robern Development Corporation, et al. v. Peoples Landless Association, G.R. No.
173622, March 11, 2013
Heirs of Fausto C. Ignacio v. Home Bankers Savings and Trust Company, G.R. No. 177783
January 23, 2013
Lagrimas Zamora, Petitioner v. Sps. Beatriz and Arturo Miranda, et al., Respondents G.R.
No. 162930, December 5, 2012
Starbright Sales Eterprises, Inc. vs. Philippine Realty Corporation, Msgr. Domingo A.
Cirilos, et al., G.R. No. 177936. January 18, 2012
Heirs of Policronio M. Ureta, Sr. V. Heirs Of Liberato M. Ureta G.R. No. 165748, September
14, 2011
Ouano, et al. v. Republic of the Philippines, G.R. No. 168770, February 9, 2011
Development Bank of the Philippines v. Ben P. Medrano and Privatization Management
Office
G.R. No. 167004. February 7, 2011
Roberto D. Tuazon v. Lourdes Q. Del Rosario-Suarez, G.R. No. 168325, December 8, 2010
Ordua v. Fuentebella, G.R. No. 176841, June 29, 2010
Polytechnic University of the Philippines v. Golden Horizon Realty, G.R. No. 183612, March
15, 2010
Traders Royal Bank v. Cuison Lumber Co., Inc., G.R. No. 174286, June 5, 2009, 588 SCRA
690
Villanueva v. Philippine National Bank, G.R. No. 154493, December 6, 2006, 510 SCRA
275
Manila Metal Container Corporation v. Philippine National Bank, G.R. No. 166862,
December 20, 2006, 511 SCRA 444
Palattao v. Court of Appeals, G.R. No. 131726, May 7, 2002, 381 SCRA 681.
Sps. Reynaldo K. Litonjua And Erlinda P. Litonjua And Phil. White House Auto Supply, Inc.,
v. L & R Corporation, Vicente M. Coloyan, G.R. No. 130722. March 27, 2000
Alfonso Quijada v. Court of Appeals, G.R. No. 126444 December 4, 1998
Adelfa Properties, Inc. v. Court of Appeals, G.R. No. 111238 January 25, 1995
V. OBLIGATIONS OF THE VENDOR

4.0. Principal Obligations of the Vendor

1. Obligation to Preserve the object of the sale
2. Obligation to Transfer Ownership
3. Obligation to Deliver
4. Obligation to Warrant the object of the sale against eviction and hidden defects
4.1. Obligation to Preserve the object of the sale (Art. 1480)
4.2. Obligation to Transfer Ownership
4.3. General Rule: (Art. 1459., 1495)
4.4. Exceptions:
1. Sale by a Non-Owner
Before or During Perfection Stage (1461, 1462, 1467)
At the time of Delivery
Exceptions (Articles 1459,1505, 1434)
2. Sale by a person having a voidable title (Arts. 1506, 559)
4.5. Obligation to Deliver (Arts. 1495, 1496, 1537, 1539)
a) Kinds of Delivery (Articles 1497 1501)
b) Tradition
c) Time and Place (Art. 1521)
d) Effects of Delivery (Arts. 1522, 1523)
e) Expenses (Art. 1487)
f) Delivery of the Thing Sold
g) Including the Its Fruits and Accessories (Art. 1164, 1537)
h) Delivery to a carrier
i) Movables
j) Immovavles (Articles 1539 1543)
Sale of and immovable at a rate per unit
Sale of an immovable made for a lump sum
4.6. No Transfer of Ownership Despite Delivery
1. sale or return - Art. 1502(1)
2. sale on approval or trial Art. 1502(2)
3. conditional sales - Arts. 1478, 1503(1), 1458(2)
4.7. Not Bound to Deliver (Arts. 1524, 1536)
4.8. Double Sales (Art. 1544)
1) Definition
2) Requisites
3) Rule when the subject of double sales is a Movable Property
4) Rules when the subject of double sales is an Immovable Property
5) Purchaser in Good Faith
6) Purchaser in Bad Faith
7) Effects of Registration
Cases:
Hospicio D. Rosaroso, et al. v. Lucila Laborte Soria, et al., G.R. No. 194846, June 19, 2013
Sps. Erosto Santiago and Nelsi Santiago v. Mancer Villamor, et al.; G.R. No. 168499.
November 26, 2012
Philippine Banking Corporation v. Arturo Dy, et al., G.R. No. 18377, November 14, 2012
Virgilio S. David v. Misamis Occidental II Electric Cooperative, Inc. (MOELCI), G.R. No.

194785 July 11, 2012

Estelita Villamar v. Balbino Mangaoil, G.R. No. 188661, April 11, 2012
Manzano, Jr. v. Garcia, G.R. No. 179323, November 28, 2011
The Heirs of Nicolas S. Cabigas v. Melba L. Limbaco, G.R. No. 175291, July 27, 2011
Hadja Fatima Gaguil Magoyag, v. Hadji Abubacar Maruhom G.R. No. 179743, August 2,
2010
De Leon v. Ong, G.R. No. 170405, February 2, 2010
Cebu Winland Development Corporation v. Ong Siao Hua, G.R. No. 173215, May 21, 2009
Eagle Realty Corporation v. Republic Of The Philippines, G.R. No. 151424, July 4, 2008
Philippine National Bank v. Heirs of Estanislao Militar, G.R. No. 164801, June 30, 2006
Rudolf Lietz, Inc. v. The Court Of Appeals, et al. G.R. No. 122463 December 19, 2005
Cuison v. Remoto, 472 SCRA 274, October 11, 2005
Salonga v. Concepcion, G.R. No. 151333, September 20, 2005, 470 SCRA 291
Sigaya v. Mayuga, G.R. No. 143254, August 18, 2005, 467 SCRA 341
Premiere Devt Bank v. Court of Appeals, 453 SCRA 630, March 18, 2005
San Lorenzo Development Corporation v. Court of Appeals, G.R. No. 124242. January 21,
2005.
Chua v. Court of Appeals, G.R. No. 119255, April 9, 2003
Sandoval v. Court of Appeals, 329 Phil. 48, 60-61 (1996)
Onapal Philippines Commodities, Inc. v. Court of Appeals G.R. No. 90707 February 1,
1993
Norkis Distributors, Inc. v. Court Of Appeals and Alberto Nepales, G.R. No. 91029
February 7, 1991
Philippine Suburban Development Corporation v. The Auditor General, G.R. No. L-19545
April 18, 1975