BAM242 – LAW A contract of sale is perfected at the moment there is a meeting Kinds of goods

of the minds upon the thing which is the object of the contract
CONTRACT OF SALE 1. Existing goods
and the price. On the other hand, when the contract of sale or to Those goods that are owned by the seller
Art. 1458. By the contract of sale one of the contracting parties sell is not perfected, it cannot, as an independent source of 2. Future goods
obligates himself to transfer the ownership and to deliver a obligation, serve as a binding juridical relation between the Those goods that are to be manufactured by the seller after the
determinate thing. and the other to pay therefor a price certain in parties. perfection of the contract of sale
money or its equivalent. A contract of sale may be absolute or Characteristics of a Contract of sale
conditional. Contract of Sale Agency to Sell
1. Consensual The buyer receives the goods The agent receives the goods
What is a contract of sale? A contract of sale is a consensual 2. Bilateral as owner as goods of the principal who
contract and, thus, is perfected by mere consent which is 3. Onerous retained his ownership over
manifested by the meeting of the offer and the acceptance upon 4. Commutative them
the thing and the cause which are to constitute the contract. Until 5. Nominate The pays the price The agent delivers the price,
the contract of sale is perfected, it cannot, as an independent 6. Principal which he got from the buyer,
source of obligation, serve as a binding juridical relation between to his principal
the parties. The essential elements of a contract of sale are: The buyer, as general rule, The agent can return the
EARNEST MONEY vs OPTION MONEY cannot return the object sold goods in case he is unable to
a) consent or meeting of the minds, that is, consent to
transfer ownership in exchange for the price; OPTION MONEY sell the same to third person

b) determinate subject matter. And  Not a purchase, but merely secures the privilege to buy.
 The buyer is not obliged to buy
c) price certain in money or its equivalent  It imposes no binding obligation on the person, but only
SALE vs BARTER
consideration. 1. The transaction is characterized by the manifest intention
stages of a contract of sale are:
EARNEST MONEY 2. If there’s no manifest intention:
1. Negotiation It covers the period from the time the prospective  Barter if the value of the thing is more valuable
contracting parties indicate interest in the contract to the time the  Whenever earnest money is given, it shall be considered than money
contract is perfected. as part of the price and as proof of payment.  Sale if the value of the thing is equal or less than
2. Perfection It takes place upon the concurrence of the essential DACION EN PAGO the amount of money
elements of the sale, which is the meeting of the minds of the The debtor offers another thing to the creditor who accepts it Requisites for a valid price
parties as to the object of the contract and upon the price. as equivalent of payment of outstanding debt.
1. Real
3. Consummation It begins when the parties perform their DETERMINATE THING 2. Certain or Ascertainable
respective undertakings under the contract of sale, culminating in 3. In money or its Equivalent
the extinguishment thereof.  A thing is determinate when it is particularly designated or physically
segregated from all others of the same class.. 4. Manner of payment must be agreed upon
Two kinds of a contract of sale EMPTIO REI SPERATAE EMPTIO SPEI Two aspects of delivery
1.Absolute Sale of a thing with potential Sale of a mere hope or
existence expectancy that the thing will 1. The de jure delivery or the execution of deeds of
There are no conditions attached to the contract. come to existence conveyance
Sale is subject to the Sale is effective even if the 2. The delivery of the material possession
2. Conditional condition that the thing will thing does not come into
exist; if not, there is no existence unless it is a vain
There are certain conditions attached to the contract. contract hope
The object is future thing The object is present which is
the hope or expectancy
Sale by sample Kinds of Delivery Sale on approval
 With the understanding that the product to be delivered 1. Real or Actual Also called as “sale on acceptance”, “sale on trial”, or
would correspond with the sample. The thing sold is placed in the control and possession of “sale on satisfaction”
the vendee.
Sale by Description 2. Legal or Constructive There’s no transfer of ownership.

 Part of the basis of the transaction creates warranty that It is a delivery by operation of law. Ownership passes to the buyer only in the ff instances:
the goods will conform to that description. 3. Quasi-Tradition
Delivery of rights, credits, or incorporeal property, made 1. When the buyer signifies his approval or acceptance
Expropriation by to the seller or does any other act adopting the
a. Execution of public instrument; transactions.
 A governmental taking or medication of an individual’s b. Placing of titles of ownership in the hands of buyers 2. If the buyer does not signifies his approval or
property, rights. or acceptance to the seller, but retains the goods
c. Allowing buyer to make use of rights without giving notice of rejection, then if a time has
KINDS OF INCAPACITY TO BUY OR SELL
been fixed for the return of the goods, on the
1. Absolute incapacity Kinds of Legal or Constructive Delivery expiration of such time.
These are the persons who cannot enter into a a. Legal Formalities
contract of sale in all circumstances; otherwise, the Sale or Return Sale on Trial
When the sale is made through a public delivery by Ownership passes to the Ownership remains in the
contract of sale is defective, either voidable or execution of public instrument gives t presumption of
unenforceable. buyer on delivery and seller until the buyer signifies
delivery, which is destroyed when actual delivery is subsequent return reverts his approval or acceptance
2. Relative Incapacity affected due to legal impediment
Under circumstances, they cannot buy certain ownership in the seller
b. Symbolical Tradition or Traditio simbolica Subject to a resolutory Subject to suspensive
property The parties use a symbol to represent the thing delivered condition condition
Loss of the Object at the Time of Perfection of the Contract c. Traditio Longa Manu Risk of loss rests upon the Risk of loss remains with the
Where the seller points out to the buyer the object of sale buyer seller
1. COMPLETELY LOST without the need of actual delivering it.
If the thing which is the object of the contract has been d. Traditio Brevi Manu
entirely lost, the contract shall be without any effect. The Buyer already had the possession of the object Two kinds of Negotiation
reason is because there is an absence of an essential e. Traditio Constitutum Possessorium
element, that is, the object. Owner to lessee 1. Delivery
2. PARTIALLY LOST Where by the terms of the document, the one issuing the
If the thing should have been lost in part only, the Delivery of incorporeal property same undertakes to deliver the goods to the bearer
vendee may choose between: 2. By indorsement and delivery
1. Execution of public instrument
a. Withdrawing from the contract; and 2. The placing of the titles of ownership in the possession Warranties on Negotiation or Assignment
b. Demanding the remaining part, paying its price in of the vendee
proportion to the total sum agreed upon. 3. The use by the vendee of his rights, with the vendor’s 1. The document is genuine
consent. 2. That he has a legal right to negotiate or transfer it
Article 1497 contemplates what is known as real or actual 3. That he has knowledge of no fact which would impair
delivery, when the thing sold is placed in the control and the validity or worth of the document
possession of the vendee. 4. That he has a right to transfer the title to the goods
 5. That the goods are merchantable or fit for a particular 1. The animal shall be returned in the condition in which it was
purpose. sold and delivered.
Requisites of double sale 2. The vendee is answerable for any injury due to his negligence
Place of the Delivery
1. Two or more valid contract of sale Acceptance
1. The place of delivery agreed upon 2. Two or more buyers who are at odds over the
An offeree's assent, either by express act or by implication from
2. If there is no agreement, it is determined by usage of rightful ownership of the object must represent
conduct, to the terms of an offer in a manner authorized or
trade conflicting interests. requested by the offeror, so that a binding contract is formed. If an
3. If there is no agreement and usage of trade, it is the 3. They must pertain exactly to the same object acceptance modifies the terms or adds new ones, it generally
seller’s place of business if he has one, and if not his 4. They must be bought from the same seller. operates as a counteroffer.
residence
4. In case of a contract of specific goods, which to the Purchaser in Good Faith Types of Acceptance
knowledge of the parties when contract or the sale was A purchaser in good faith is one who buys property of 1. Express Acceptance
made were in some other place, then that place is the another without notice that some other person has a When the buyer intimates to the seller that he has accepted the
place of delivery. right. goods.
2. Implied Acceptance
Remedies of Unpaid seller Warranty Condition a. When the buyer does any act in relation to the goods
1. Possessory lien Goes into the performance of Goes into the root of the which is inconsistent with the ownership of the seller
such obligation and in fact existence of the obligation b. When, after the lapse of a reasonable time, he retains the
2. Right of stopping the goods in transit
may constitute and obligation goods without intimating to the seller that he has rejected
3. Right of resale them.
4. Right to rescind. itself
May form part of the Must be stipulated by the Effect of Buyer's JUSTIFIABLE refusal to accept delivery
Right of Resale obligation or contract by parties in order to form part
provision of the law without of an obligation 1. The buyer has no obligation to return the goods to the seller.
An unpaid seller having a right of lien or having stopped the 2. It is sufficient that the buyer notifies the seller that he refuses
the parties having agreed
goods in transit may resell the goods in the ff cases: to accept the goods; and
Non-fulfillment of a warranty Although it may extinguish 3. If the buyer voluntarily constitutes himself a depositary of the
1. Goods are perishable nature would constitute a breach of the obligation upon which it goods, he shall be liable as such.
2. The seller expressly reserves the right to resale in case contract is based, it generally does not
the buyer should make default amount to a breach of Art. 1589. The vendee shall owe interest for the period between the
3. The buyer has been in default in the payment of the price contract of sale. delivery of the thing and the payment of the price, in the following
three cases:
for an unreasonable time
(1) Should it have been so stipulated;
Effect of exercise of the right to rescind Remedies in case of Hidden Defects
(2) Should the thing sold and delivered produce fruits or income;
The seller shall not thereafter be liable to the buyer upon 1. Withdrawal or rescission plus damages (3) Should he be in default, from the time of judicial or
the contract of sale, but may recover from the buyer 2. Proportionate reduction in the price plus damages. extrajudicial demand for the payment of the price.
damages for any loss occasioned by the breach of
Void sale of animals Suspension of payment by the vendee
contract.
1. The sale of animals suffering from contagious diseases; 1. Should the vendee be disturbed in the possession or ownership
Judicial Sale
2. Sale of unfit animals of the thing acquired
A sale conducted under the authority of a judgement or 2. Should he have reasonable grounds to fear such disturbance,
Effect of Rescission of sale of animal with redhibitory defect by a vindicatory action or a foreclosure of mortgage
court order, such as an execution sale.
 3. Refuse to keep the goods and maintain an action against the 1. If there is no period of redemption agreed upon, it shall last
seller for damages for the breach of warranty four (4) years from the date of the contract
2. If there is an agreement as to period of redemption, The period
Article. 1593. With respect to movable property, the rescission of the agreed upon cannot exceed ten (10) years.
sale shall of right take place in the interest of the vendor, if the vendee, Effect of rescission on buyer’s rights and obligations Legal Redemption
upon the expiration of the period fixed for the delivery of the thing,
should not have appeared to receive it, or, having appeared, he should 1. The buyer shall cease to be liable for the price upon returning It is the right to be subrogated, upon the same terms and
not have tendered the price at the same time, unless a longer period has or offering to return the goods. If the price or any part thereof conditions stipulated in the contract, in the place of one who
been stipulated. has already been paid, the seller shall be liable to repay so acquires a thing by purchase, dation in payment, or by any
much thereof as has been paid, concurrently with the return of transaction whereby ownership is transmitted enormous title.
CHAPTER 6. ACTIONS FOR BREACH OF CONTRACT OF the goods, or immediately after an offer to return the goods in
SALE OF GOODS exchange for repayment of the price. Requirement of a written notice
2. The buyer is entitled to rescind the sale if the seller refuses to
“Not applicable to immovable property” accept an offer of the buyer to return the goods, the buyer shall  Written notice is indispensable
thereafter be deemed to hold the goods as bailee for the seller,  To remove all uncertainty as to the sale, its terms and validity,
Article 1595. Where, under a contract of sale, the ownership of the
but subject to a lien to secure payment of any portion of the and to quiet any doubt that the alienation is not definitive.
goods has passed to the buyer and he wrongfully neglects or refuses to
pay for the goods according to the terms of the contract of sale, the price which has been paid, and with the remedies for the
CHAPTER 8. ASSIGNMENT OF CREDITS AND OTHER
seller may maintain an action against him for the price of the goods. enforcement of such lien allowed to an unpaid seller.
INCORPOREAL RIGHTS
MEASURE OF DAMAGES CHAPTER 7. EXTINGUISHMENT OF SALE.
Assignment of Credit
Causes of extinguishment of sale
 The measure of damages is estimated loss directly and An agreement by virtue of which the owner of a credit, known
naturally resulting in the ordinary course of events from the 1. Same causes of all other obligations as assignor, by a legal cause, such as sale without the consent
buyer’s breach of contract. 2. Conventional Redemption of the debtor, transfer his credit and accessory rights to
 In absence of special circumstances showing proximate 3. Legal Redemption another, known as assignee, who acquires the power to
damage of a different amount, the difference between the enforce it to the same extent as the assignor could enforce it
contract of price and the market or current price. Essence of conventional redemption against the debtor.
 The buyer shall be liable to the seller for the labor performed
The essence of a pacto de retro sale is that title and ownership “Assignment of credits and other incorporeal rights are also perfected
or expenses made before receiving notice.
of the property sold is immediately vested in the vendee a at the moment when there is a meeting of minds”
 The profit the seller would have made if the contract or the
retro, subject to the restrictive condition of repurchase by the
sale had been fully performed shall be considered in awarding Contract of Sale Assignment of Credit
vendor a retro within the redemption periods.
the damages. The object is property The object is credit, incorporeal
Equitable Mortgage rights or right of actions
The seller may totally rescind the contract of sale
It need not appear in a public It must appear in a public
One which although lacking in some formality, form or words,
1. The buyer has repudiated the contract of sale instrument to affect third person. instrument to produce effect as
or other requisites demanded by a statute, nevertheless, reveals
2. The buyer has manifested his inability to performed his against third person. In case the
the intention of the parties to charge a real property as security
obligations assignment involves real
for a debt, and contains nothing impossible or contrary to law.
3. The buyer has committed a breach of contract of sale property, the instrument is
Reformation recorded in the Registry of
Remedies of the buyer in case of breach of warranty by the seller Property.
An equitable remedy by which a court will modify a written
1. Accept or keep the goods and set up against the seller, the
agreement to reflect the actual intent of the parties, usually to
breach of warranty by way of recoupment in diminution or Requirement to produce effect as against third person
correct fraud or mutual mistake in the writing, such as an
extinction of the price
incomplete property description in a deed.
2. Accept or keep the goods and maintain an action against the 1. If personal property involved
seller for damages for the breach of warranty Period of Redemption
 A public instrument is required to make the assignment  Still valid if it doesn’t appear in public instrument. Remedy for the Pledgee
effective against third person
2. If real property is involved Real Estate Mortgage The pledgee may cause the same to be sold at a public sale
The instrument is recorded in the Registry of Property to make
 A contract embodied in a public instrument recorded in the
the assignment effective against third person.
registry of property
 Immovable property
 It is a contract in which the debtor guarantees to the creditor PURPOSE OF NOTICE
Warranties of the Assignor of Credit the fulfillment of a principal obligation, subjecting for the
faithful compliance therewith a real property in case of non- To sufficiently apprise the debtor and the pledgor that the
1. The existence of the credit at the time of assignment; thing pledged to secure payment of the loan will be sold in
fulfillment of said obligation at the time stipulated.
2. The legality of the credit at the time of the assignment unless public sale and the proceeds thereof shall be applied to satisfy
the assignor sold it as doubtful Doctrine of “The mortgagee in good faith” the debtor.
3. If expressly stipulated or unless the insolvency was prior to the
sale and of common knowledge, the solvency of the debtor.  Under which the mortgagor in default, the forced seller, Deficiency Claim in mortgage Vs. Pledgee
becomes obliged to transfer the ownership of the thing sold to
Liabilities for violation of warranties the highest bidder who, in turn, is obliged to pay therefor the It is settled that if the proceeds of the sale are insufficient to
bid price in money or its equivalent. cover the debt in an extra judicial foreclosure of the mortgage,
1. Assignor in Good Faith the mortgagee is entitled to claim the deficiency.
 Price received Pactum Commissorium
 Expenses of the contract Deficiency Claim in Chattel Mortgage vs Pledge
 Any other legitimate payments by reason of the  A contractual stipulation that are deemed contrary to law.
assignment  A stipulation empowering the creditor to appropriate the thing  In pledge, the sale of the thing pledged extinguishes the entire
2. Assignor in Bad Faith Claigiven as guaranty for the fulfillment of the obligation in principal obligation, such that the pledgor may no longer
 Payment of the price the event the obligor fails to live up to his undertakings, recover proceeds of the sale in excess of the amount of the
without further formality principal obligation.
 All the expenses
 In chattel mortgage, expressly entitles the mortgagor to the
 Damages
CHAPTER 2. PLEDGE balance of the proceeds, upon recover satisfaction of the
Duration of warranty as to debtor’s solvency principal obligation and cost.
Pledge of Incorporeal rights
1. Period stipulated CHAPTER 3. MORTGAGE
1. The instrument proving the right pledged shall be delivered to
2. If there is no stipulation;
the creditor Mortgage
 If the period had already expired, 1 year from the time of 2. If the instrument is negotiable, it must be indorsed.
the assignment A contract in which the debtor guarantees to the creditor the
 If the period has not yet expired, 1 year from maturity Right of Pledgor to ask the thing pledged be deposited fulfillment of a principal obligation, subjecting for the faithful
compliance therewith a real property in case of non-fulfillment
CREDIT TRANSACTIONS 1. If the creditor uses the thing without authority of said obligation at the time stipulated.
2. If the creditor should misuse the thing in any other way
Pledge Kinds of Real Mortgage
Prescriptive period to demand return of the thing
 An accessory, real and unilateral contract by virtue of which 1. Voluntary or Conventional
debtor or the third person delivers to the creditor or to a third The prescriptive period within which to demand the return of It is created by agreement between the parties
person movable property as security for the performance of the thing pledged should begin to run only after the payment 2. Legal Mortgage
the principal obligation of the loan and a demand for the thing has been made. It is required by law
 Upon fulfillment of which the thing pledge, with all its 3. Equitable Mortgage
accessions and accessories, shall be returned to the debtor or Remedy for the pledgor
One which reveals an intent to make the property a security,
to the third person. The pledgor may demand the return of the thing, upon offering even if the contract lacks the proper formalities of a real estate
 In case of nonpayment, the pledge will be use or sold to satisfy another thing in pledge mortgage.
the obligation.
Object of Mortgage When to foreclose? 1. To pay the taxes and charges upon the estate, unless there is a
stipulation to the contrary;
1. Immovables 1. When the principal obligation is not paid when due; and 2. To bear the expenses necessary for preservation and repair;
2. Alienable real rights 3. To apply all the fruits, after receiving them, to the payment of
2. When the debtor has violated the terms and conditions of the
mortgage contract. interest, if owing, and thereafter to the principal; and
4. To render an account of the fruits to the debtor.
Article 2136. The debtor cannot reacquire the enjoyment of the
Cause or Consideration in Mortgage CHAPTER 4. ANTICHRESIS immovable without first having totally paid what he owes the creditor.
But the latter, in order to exempt himself from the obligations imposed
Its consideration is the same as that of the principal contract By the contract of Antichresis, the creditor acquires the right upon him by the preceding article, may always compel the debtor to
from which it receives its life, and without which it cannot to receive the fruits of an immovable of his debtor, with the enter again upon the enjoyment of the property, except when there is a
exist as an independent contract. obligation to apply them to the payment of the interest, If stipulation to the contrary.
owing, and thereafter to the principal of his credit.
Real Mortgage Pledge Remedies of the creditor
It is constituted on immovables Constituted on movables Note: Antichresis is an accessory contract as it secures the
Delivery not required Property is delivered to the performance of e principal obligation. It is also a formal 1. The creditor may petition the court for the payment of the
pledgee or by common contract as the amount of the principal and of the interest shall debt; or
agreement to a third-party be specified in writing 2. The creditor may petition the court for the sale of the real
person property
Antichresis Real Mortgage
It is not valid against third It is not valid as to the third
Real property is delivered to the Debtor usually retains possession CHAPTER 5. CHATTEL MORTGAGE
persons unless it is registered person unless a description of
the thing pledged and the date of creditor. of the real property. of the
By a chattel mortgage, personal property is recorded in the
the pledge appear in a public mortgagee.
Chattel Mortgage Register as a security for the performance of
instrument Creditor acquires only the right to Creditor does not have any right
an obligation. If the movable, instead of being recorded, is
receive the fruits of the property. to receive the fruits
delivered to the creditor or a third person, the contract is a
The creditor is obliged to pay the The creditor has no such pledge and not a chattel mortgage.
Effects of Mortgage taxes and charges upon the estate obligation
unless there is stipulation to the Chattel Mortgage Real Mortgage
1. It creates a real right. The mortgage directly and immediately
contrary It is constituted on movables It is constituted on immovable
subjects the property upon which it is imposed.
It is expressly stipulated that the There is no such obligation of the It cannot guarantee future It may guarantee future
2. It creates an encumbrance. A mortgage is merely a security
creditor who is given the mortgagee. obligations obligations
for a debt and an encumbrance upon the property.
possession of the property shall
The mortgage extends to the natural accessions, to the improvements, apply all the fruits thereof to the
growing fruits, and the rents or income not yet received when the payment of interest, if owing, and Chattel Mortgage Pledge
obligation becomes due, and to the amount of the indemnity granted or thereafter to the principal. Delivery is not an essential Delivery is an essential element
owing to the proprietor from the insurers of the property mortgaged, or Measure of application of fruits element of the contract of the contract
in virtue of expropriation for public use, with the declarations, In case of foreclosure, the excess In case of foreclosure, the
amplifications and limitations established by law, whether the estate The actual market value of the fruits at the time of the of the amount due goes to the debtor is not entitled to the
remains in the possession of the mortgagor, or it passes into the hands application thereof to the interest and principal shall be the debtor. excess unless it is otherwise
of a third person. measure of such application. agreed upon.
In case of foreclosure, the In case of foreclosure, the
Foreclosure Form of the contract of antichresis
creditor is entitled to recover the creditor is not entitled to recover
The amount of the principal and of the interest shall be specified in deficiency from the debtor, deficiency notwithstanding any
It is the remedy available to the mortgagee by which he except if the chattel mortgage is stipulation to the contrary.
subjects the mortgaged property to the satisfaction of the writing; otherwise, the contract of antichresis shall be void.
a security for the purchase of
obligation to secure that for which the mortgage was given. Obligations of the antichretic creditor personal property in
 installments.  Where two or more applications are filed for the same DECEPTIVE SALES ACTS AND PRACTICES.
Foreclosure of chattel mortgage invention, to the applicant who has the earliest filling date
of the earliest priority. date. (First to File Rule) It is the policy of the state to promote and encourage fair, hones and
If the mortgagor defaults in the payment of the secured debt or equitable relations among parties in consumer transactions and protect
otherwise fails to comply with the conditions of the mortgage, the TRADEMARK the consumer against deceptive, unfair and unconscionable sales acts or
creditor has no right to appropriate to himself the personal property. practices.
 Trademark is any visible sign capable of distinguishing goods.
 Trademark is any distinctive word, name, symbol, emblem,  The provisions of the Civil Code on conditions and warranties
sign or device or any combination thereof. shall govern all contracts of sale with conditions and
INTELLECTUAL PROPERTY warranties.
 The State recognizes that an effective intellectual and Renewal of Registration:  In addition to the Civil Code provisions on sale with
industrial property system is vital to the development of  A certificate of registration shall remain in force for ten years warranties, the following provisions in Article 68 shall govern
domestic and creative activity, facilitates transfer of and may be renewed upon payment of the prescribed fee and the sale of consumer products with warranty
technology, attracts foreign investments and ensures market upon filing of a request i) All written warranties or guarantees issued by a
access for our products, manufacture, producer or importer shall be operative from
Copyright the moment of sale.
 It shall protect and secure the exclusive rights of scientists,
ii) Failure of the distributor to make the report or send them
inventors, artists and other gifted citizens to their intellectual Copyright refers to the right granted by a statute to the
the form required by the manufacturer, producer or
property and creations. proprietor of an intellectual production to its exclusive use and
importer shall relieve the latter of its liability under the
 The use of intellectual property bears a social function. To this enjoyment to the extent specified in the statute.
warranty. The distributor who failed to comply with its
end, the State shall promote the diffusion of knowledge and
Derivative works shall also be protected by copyright: obligation shall be personally liable under the.
information for the promotion of national development and
iii) The retailer shall be subsidiarily liable under the warranty
progress and the common good. 1. Dramatizations, translations, adaptations, abridgments, in case of failure of both the manufacturer and distributor.
 It is also the policy of the State to streamline administrative arrangements and other alterations of literary or
procedures of registering patents, trademarks and copyright, to 2. Collections of literary, scholarly or artistic works and Label or labeling means the display of written, printed or graphic
liberalize the registration on the transfer of technology and to compilations of data and other materials which are original by matter on any consumer product, its immediate container, tag, literature
enhance the enforcement of intellectual property rights in the reason of the selection or coordination or arrangement of their or other suitable material affixed thereto for the purpose of o Filipino
Philippines. contents. giving information as to identity, components, ingredients, attributes
directions, directions for use, specifications and such other information
Patentable Inventions: Term of protection as may be required by law or regulation.
Any technical solution of a problem in any field of human  In case of works of applied art the protection shall be from a Package or packaging means any container or wrapping in which any
activity which is new, involves an inventive step and is period of 25 years from the date of making. consumer product is enclosed for use in the delivery or display of that
industrially applicable shall be patentable. It may be, or may  In case of photographic works and audio-visual works, the consumer product to retail purchasers.
relate to, a product or process or an improvement of any of the protection shall be for 50 years from publication of the work
foregoing. and if unpublished, 50 years from the making. Prohibited Acts on Labeling and Packaging.
RIGHT TO PATENT: CONSUMER PROTECTION  It shall be unlawful for any person engaged in the labeling or
packaging of any consumer product, to display or distribute or
 The right to a patent belongs to the inventor, his heirs or CONSUMER PRODUCT AND SERVICE WARRANTIES to cause to be displayed or distributed in commerce any
assigns, consumer product whose package or label does not conform
 When two or more persons have jointly made an invention, Department of Health Foods, drugs, cosmetics, devices with the law.
the right to a patent shall belong to them jointly and substances  The minimum labeling requirement for consumer products
 If two or more persons have made the invention separately Department of Agriculture Products related to agriculture domestically sold whether manufactured locally or imported
and independently of each other, the right to the patent Department of Trade and Not specified above shall indicate the following on their respective labels of
shall belong to the person who filed an application for such Industry packaging:
invention or  Other concerned departments have the authority to provide for
addition labeling and packaging requirements.
  Other concerned departments may establish special packaging
of consumer products for the protection of children as stated in
Article 80 Philippine Product Standard Mark - the label may
contain the Philippine Product Standard mark if it is certified
to have passed the consumer product standard prescribed by
the concerned department.

PRICE TAG REQUIREMENT:

 provided that it shall be unlawful to offer any consumer

product for retail sale to the public without an
appropriated price tag label or marking publicly displayed
to indicate the price or each article and said products shall
not be sold at a price higher than that stated therein and
without discrimination to all buyers.
 Provided that if consumer products for sale are too small
or the nature of which makes it impractical to place a
price tag thereon price list placed at the nearest point
where the products are displayed indicating the retail price
of the same may suffice.
Republic Act No. 10667- Philippine Competition Act

 the country's primary competition law.

 It defines, prohibits and penalizes anti-competitive practices. It
promotes free and fair competition in trade, industry and all
commercial economic activities.
The Philippine Competition Act prohibits,

 anti-competitive agreements between and among competitors

 abuse of dominant position
 mergers and acquisitions that substantially prevent, restrict or
lessen competition in the Philippines.