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Transfer of Ownership

1) When ownership is transferred


2) When ownership is not transferred
despite delivery
1) When ownership is
transferred (Art. 1477)
• ACTUAL DELIVERY
• CONSTRUCTIVE DELIVERY
CONSTRUCTIVE DELIVERY
1) Execution of a public instrument (Art. 1498
par. 1)
2) Traditio symbolica (Art. 1498, par. 2)
3) Traditio longa manu (Art. 1499)
4) Traditio brevi manu (Art. 1499)
5) Traditio constitutum possesorium ( Art. 1500)
6) Quasi-traditio (Art. 1501)
2) When ownership is not transferred
despite delivery (Art. 1478)
• Pactum reservati dominii – stipulation that
ownership is transferred upon full payment of
the price
MUTUAL PROMISE AND ACCEPTED
UNILATERAL PROMISE (Art. 1479)

• If a bilateral promise, reciprocally demandable


• If a unilateral promise, demandable if
supported by an option money.
• Option money – privilege paid which gives the
party the right to buy/sell a thing
RISK OF LOSS (Art. 1480)
• SELLER
- Lost before perfection (no contract)
• BUYER
- Lost after delivery to buyer (owner bears the loss)
- lost due to fortuitous event after perfection but before
delivery (obligation to pay is not extinguished)
- fungible goods in case the buyer refuses to accept delivery
For fungible goods lost after perfection but before delivery,
seller is guilty of fraud, negligence, default, violation of
terms, and object is generic – the seller is liable
Contract of Sale of goods by sample
or by description (Art. 1481)
• The bulk corresponds with the description or
sample
• The buyer shall have a reasonable opportunity
to compare the bulk with the description or
sample
• If both by sample and description, must satisfy
both requirements.
EARNEST MONEY (Art. 1482)
• Part of the purchase price
• Proof of perfection of the contract
FORMS OF CONTRACT
OF SALE (Art. 1483)
• In writing
• Oral
• Partly in writing and partly oral
• Inferred from the conduct of the parties
SALE OF PERSONAL PROPERTY
IN INSTALLMENTS (Art. 1484)
• Alternative remedies available to seller
– Exact fulfillment
– Cancel the sale if 2 or more installments are not
paid
– Foreclose chattel mortgage if 2 or more
installments are not paid (unpaid balance cannot
be collected; any agreement to collect is VOID)
• Purpose: to prevent abuse of foreclosure
LEASE OF PERSONAL PROPERTY WITH
OPTION TO BUY (Art. 1485)
• Art. 1484 applies
• Reason: prevent indirect violation of Art.
1484; may really be considered a sale of
personal property in installments
Non-Return of Installment Payments
(Art. 1486)
• In case of cancellation – mutual restitution or
installments or rents must be returned
• EXCEPTION: Stipulated and not
unconscionable
EXPENSES IN EXECUTION
AND REGISTRATION (Art. 1487)
• Sellers pays the expenses
• EXCEPTION: Stipulation
EXPROPRIATION SALE
• Governed by special laws