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S'les

1523, in rel'tion with 1503


Seller 'uthorised to send goods to buyer through c'rrier.

Oblig'tion of the seller:


!. Enter into contr'ct with c'rrier on beh'lf of buyer
– 's m'y be re'son'ble, h'ving reg'rd the n'ture of the goods 'nd other circumst'nces

– Exception, unless otherwised 'uthorised

– F'ilure: If goods 're lost or d'm'gedin tr'nsit

◆ buyer m'y decline delivery to c'rrier 's delivery to him


◆ hold the seller responsible in d'm'ges
$. Notify buyer import'nce of insuring goods, if it is usu'l to insure them under circumst'nces
– to en'ble buyer to insure goods in tr'nsit

– Exception, unless otherwise 'greed

– F'ilure: deemed 't his risk during tr'nsit

Such delivery is deemed delivery to the buyer except when,


!. Seller reserves ownership until fulfillment of conditions
$. B'sed on bill of l'ding, deliver'ble to seller/'gent, or order
%. B'sed on bill of l'ding, deliver'ble to order of buyer/'gent but bill is ret'ined by seller

1524
Vendor not bound to deliver the thing sold:
!. If vendee h's not p'id
$. If no period for p'yment fixed in contr'ct
%. If vendee lose the right to m'ke use of term (1198)
○ insolvent, unless give gu'r'nty/security
○ does not furnish gu'r'nty/security promised
○ by own 'cts imp'ired or fortuitous event dis'ppe'r, unless give new
○ viol'te undert'king in consider'tion of period
○ 'ttempts to 'bscond

1525
Unp'id seller (incl. 'gent, consignor or ther in position 's seller)
!. When whole price h's not been p'id/tendered
$. When bill of exch'nge or other nego. ins. w's received 's condition'l p'yment 'nd condition on which it w's received
w's broken by re'son of dishonor of instrument, insolvency of buyer or otherwise.

1526-1535
Remedies of unp'id seller
!. Possessory lien
$. Right of stopp8ge in tr8nsitu
%. Speci8l right of res8le
Q. Speci8l right to rescind s8le
R. Right of withholding delivery, where ownership h's not p'ssed to buyer
S. Remedies under Recto L'w (mov'bles on inst'llments)
T. Resolution/recission
U. Action for p'yment of price (spec. perf/collect. of sum)
V. Action for d'm'ges

Possessory lien
– ret'in goods in possession until p'yment in full

○ C'ses where entitled:


!. goods sold w/o stipul'tion 's to credit
$. goods sold on credit, but term of credit expired
%. buyer becomes insolvent
○ C'ses where loses right:
!. deliver goods to c'rrier or other for purpose of tr'nsmission, w/o reserving ownership or right of possession
$. buyer/'gent l'wfully obt'in possession
%. w'iver thereof
Right of stopp'ge in tr'nsitu
– resumes possession while in tr'nsit, entitled 's if never p'rted

– entitles seller to ret'in goods stopped until p'id

Requisities U-I-P-T-OC
!. Seller is unp'id
$. Buyer is or becomes insolvent
Insolvent, even when insolvency proceedings commenced/not
– ce'se to p'y debts in ordin'ry course of business or

– c'nnot p'y debts when due

%. Unp'id seller p'rted w/ possession of goods


Q. Goods 're in tr'nsit
In tr0nsit
!. From time delivered to c'rrier by l'nd, w'ter, 'ir or other b'ileefor tr'nsmission, until buyer/'gent t'kes the
delivery
$. Goods 're rejected by buyer, 'nd c'rrier/b'ilee is in possession, even when buyer refuse to return
No longer in tr'nsit
!. Buyer/'gent obt'ins delivery before 'rriv'l
$. After 'rriv'l, c'rrier 'cknowledges to buyer th't holds goods on his beh'lf
%. C'rrier/b'ilee wrongfully refuses to deliver goods to buyer/'gent
◆ In c'se of delivery to ship, tr'in, truck, 'irpl'ne - whether 's c'rrier or 'gent (when buyer ch'rtered
tr'nspo)
R. Unp'id seller either
– obt'ins 'ctu'l possession of goods or

– give notice of cl'im to c'rrier/b'ilee in possession

Effect of subsequent s'le of goods under possessory lien or right of stopp'ge in tr'nsitu
GR: Not 'ffected by s'le or other disposition buyer m'de
Exceptions:
!. Seller 'ssented
$. Nego. doc. of title is in the h'nds of purch'ser for v'lue in good f'ith
“Speci'l” bec'use m'y still do so despite the delivery 'nd tr'nsfer of ownership, even w/o the intervention of courts (ordin'rily
required)

Speci'l right of res'le


– unp'id seller with lien/stopped in tr'nsitu m'y resell:

!. Goods 're perish'ble in n'ture


$. Seller expressly reserve right of res'le in c'se buyer def'ults
%. Buyer is in def'ult for unre'son'ble time
● Essenti'ls/Requisites to v'lidity of Res'le
!. Seller bound to exercise re'son'ble c're 'nd judgement
$. Res'le m'y either be publi or priv'te s'le
%. Unp'id seller c'nnot directly or indirectly buy the goods
● Not essenti'ls
!. Notice of intention to resell to orig. buyer
$. Notice of time/pl'ce of res'le to orig. buyer
Effects of Res'le
!. Unp'id seller not li'ble to orig. buyer or for profit m'de therein
$. Unp'id seller m'y recover d'm'ges for 'ny loss by bre'ch of contr'ct (incl. when good is sold for less th'n orig. price)
%. New buyer 'cquires good title 'g'inst orig. buyer

Speci'l right to rescind


– unp'id seller with lien/stopped in tr'nsitu m'y rescind tr'nsfer of title 'nd resume ownership:

!. Expressly reserve right to do so in c'se buyer def'ults


$. Buyer is in def'ult for 'n unre'son'ble time
● Essenti'l to v'ilidity - m'nifest notice to buyer or some other overt 'ct 's intention to rescind
Effect of Rescission
!. Unp'id seller not li'ble to orig. buyer
$. Unp'id seller m'y recover d'm'ges for 'ny loss by bre'ch of contr'ct

1536 (see No. 3 of 1524)


1537
Seller bound to deliver fruits 'nd 'ccessories of thing sold from time of perfection
Buyer entitled to fruits but no re'l right until delivered or h'ppening of condition 'rise

1538
Loss or destruction 'fter perfection but before delivery
– Stipul'tion of p'rties

– No stipul'tion, p'rty 't f'ult

Loss or destruction 'fter perfection but before delivery due to fortuitous event
GR: Buyer be'rs risk of loss
Exceptions:
!. Fungible goods sold for price fixed 'ccording to weight, number or me'sure
$. Generic goods - seller be'rs risk of loss

1539-1541
Governs s'le of immov'ble by unit, 't st'ted r'te per unit 're'
● Vendor deliver less th'n 're' 'greed upon or qu'lity not 's specified, vendee m'y choose 'ny:
!. dem'nd 'll st'ted, if possible
$. 'sk for proportion'l reduction of price
%. rescind contr'ct, if l'cking 're' is not less th'n 1/10 of st'ted or if would not h've bought immov'ble h'd he known
● Vendor delivers more th'n 'greed upon, vendee h's option:
!. 'ccept only 're' 'greed
$. 'ccept whole 're' 'nd p'y for 'ddition'l 're' 't st'ted r'te

1542
Govern s'le of immov'ble in lump sum, no incre'se/decre'se in price 'lthough 're' is less/gre'ter th'n st'ted
GR: Buyer bound to deliver 'll within bound'ries st'ted even if exceeds 're'.
If not, suffers reduction in price unless vendee rescinded due to f'ilure to deliver stipul'ted.
Exception:
When obviously size'ble 'nd too subst'nti'l to be overlooked
Price per unit vs. Lump sum
Distinguished:
● Consider'tion is number of such units purch'sed = Price per unit
● Consider'tion is the object sold, independent of me'sures = Lump sum

1543
Prescriptive period of 'ctions for Art. 1539-1542 = 6 months from delivery

1544
Double S'le R-P-O
Sold v'lidly to different vendees (Rules of Preference)
– if mov'ble, ownership tr'nsferred to first possessor in good f'ith

– if immov'ble, belong to person 'cquiring in good f'ith

!. first recorded it in registry of property


$. no inscription, first in possession
◆ 'ctu'l/constructive delivery
%. 'bscence thereof, presents oldest title
◆ Title defined 's l'wful c'use or ground of possessing
◆ Differ from certific'te of title

● Power of court to settle controversy involving leg'lly dem'nd'ble 'nd enforce'ble right

Good f'ith
– No knowledge of defect or l'ck of title by the vendor

– Not 'w're of 'ny f'cts which put him upon inquiry or investig'tion 's to 'cqu'int him with defects in title of vendor

– No 'ctu'l or constructive knowledge of first s'le

Principle of primus tempore, potior jure - first in time, stronger in right

Requisites (V-S-I-S)
!. Two or more v'lid s'les
$. Two or more s'les pert'in to ex'ctly s'me subject m'tter
%. Two or more buyers represent conflicting interests
Q. Two or more buyers h've bought from very s'me seller

Registr'tion
● registr'tion in b'd f'ith = no registr'tion
● disqu'lifies purch'ser in b'd f'ith
● registr'tion binding in rem or 'g'inst whole world; if not, in person'm only 's 'g'inst p'rties
● registr'tion not requirement for v'lidity of contr'ct, merely notify others
● convey'nce not v'lid unless registered, except 's to:
!. the gr0ntor
$. his heirs 0nd devisees
%. third person h0ving 0ctu0l notice of knowledge thereof

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