Module Topic Case Doctrine

Module 1 I. Contract of 1. Pulumbarit, Sr. vs. In a contract of sale, the title of the property passses to the property to the vendee
Sale, Concepts Court of Appeals upon the delivery of the thing sold; in a contract to sell, ownership od, by agreement
(Articles 1458, reserved in the vendor and is not to pass to the vendee until the full payment of the
1638, 1466-1468, purchase price. Otherwise stated, in a contract of sale, the vendor loses ownership
New Civil Code) over the property and cannot recover it unless the contract is resolved or rescinded;
whereas, in a contract to sell, title is retained by the vendor until full payment of the
price.

2. Akang vs. A contract of sale is a consensual contract and what is required is the meeting of the
Municipality of Isulan, minds on the object and the price for its perfection and validity.
Sultan Kudarat
Province

3. Quiroga vs. Contract of Agency to Sell vs Contract of Sale

Parsons, 38 Phil 501
In order to classify a contract, due attention must be given to its essential clauses. In
the contract in question, what was essential, as constituting its cause and subject
matter, is that the plaintiff was to furnish the defendant with the beds which the latter
might order, at the price stipulated, and that the defendant was to pay the price in the
manner stipulated.

4. CIR vs. Arnoldus What determines whether the contract is one of work of sale is whether the thing has
Carpentry, 159 SCRA been manufactured especially for the customer ‘upon his special order’ Thus if the
199 thing is specially done at the order of another, this is a contract for a piece of work. If,
on the other hand, the thing is manufactured or procured for the general market in the
ordinary course of one’s business, it is a contract of sale

5. Heirs of Fausto C. Contract can be perfected by mere consent manifested by the meeting of the offer and
Ignacio vs. Home acceptance upon the thing and the cause which are to constitute the contract.
Bankers Savings and
Trust Company

6. Far East Bank and A contract of sale is perfected by mutual consent when the seller obligates himself for
Trust Company vs. price certain to deliver and transfer ownership of a specified thing or right to the buyer
Philippine Deposit over which the latter agrees.
Insurance Corporation
 II. Object of Sale 1. Department of Section 6 and 70 states that any sale and disposition of agricultural lands in violation of
(Articles 1306, Agrarian Reform, the RA 6657 shall be null and void.
1459-1465, New Quezon City vs.
Civil Code) Carriedo,

III. Price (Articles 1. Mapalo vs. Mapalo Contracts without cause or consideration produce no effect.
1469-1474, New
Civil Code) Contracts without cause confer NO right and produce NO legal effect whatever. Thus,
a contract which is absolutely simulated or fictitious is inexistent and void. Where there
is, in fact, NO consideration, the statement of one in the contract will NOT suffice to
bring it under the rule of Art 1353, NCC as stating a false consideration.

2. Swedish Match vs. In the case of a contract of sale, required is the concurrence of three elements, to wit:
Court of Appeals, 20 (a) consent or meeting of the minds, that is, consent to transfer ownership in exchange
October 2004) for the price; (b) determinate subject matter, and (c) price certain in money or its
equivalent. Such contract is born from the moment there is a meeting of minds upon
the thing which is the object of the contract and upon the price.

Module 2 I. Formation / “Earnest money” and “option money are distinguished by: (1) earnest money is part of
Perfection of 1. Limson vs. CA, 357 purchase price while option money is the money given as a distinct consideration for
Contract of Sale SCRA 209; San Miguel an option contract. (2) earnest money given only where there is already sale, while
(Articles Properties vs. Huang, option money applies to sale not yet perfected and (3) when earnest money is given,
1475-1488, 336 SCRA 2000 the buyer is found to pay the balance, while the would be buyer gives option money, he
1325-1326, 1319, is not required to buy, but may even forfeit it depending on the terms of the option
1874, 1581,
1403New Civil 2. Atkins, Kroll & Co. An option is unilateral which is a promise to sell at the price fixed whenever the offeree
Code) vs. Cua Hian Tek, 102 should decide to exercise his option within the specified time. After accepting the
Phil 948 promise and before he exercises his option, the holder of the option is not bound to
buy. He can choose to buy or not to later.

3. Sanchez vs. Rigos, There is no valid contract without a cause or consideration, the promisor is not bound
45 SCRA 368 by his promise and may withdraw it. However, pending the notice of its withdrawal, his
accepted promise is in the nature of an offer to sell which if accepted results in a
perfected contract of sale.
4. Ang Yu Asuncion vs. A Right of First Refusal is not a Perfected Contract of Sale under Art. 1458 or an option
CA, December 2, 1994 under Par. 2 Art 1479 or an offer under Art. 1319. In a Right of First Refusal, only the
object of the contract is determinate. This means that no vinculum juris is created
between the seller-offeror and the buyer-offeree.

5. Bible Baptist Church An option contract needs to be supported by a separate consideration. The
vs. CA, 26 November consideration need not be monetary but could consist of other things or undertakings.
2004 However, if the consideration is not monetary, these must be things or undertakings of
value, in view of the onerous nature of the contract of option. Furthermore, when a
consideration for an option contract is not monetary, said consideration must be clearly
specified as such in the option contract or clause.

6. Osmeña III vs. A right to top is a variation of the right of first refusal often incorporated in lease
Power Sector Assets contracts. When a lease contract contains a right of first refusal, the lessor is under a
and Liabilities legal duty to the lessee not to sell to anybody at any price until after he has made an
Management offer to sell to the latter at a certain price and the lessee has failed to accept it. The
Corporation, 771 lessee has a right that the lessor's first offer shall be in his favor. While sometimes
SCRA 559, G.R. No. referred to as a "first option to buy" or "option of first refusal," a right of first refusal is
212686 September 28, not an option contract.
2015
An option is a preparatory contract in which one party grants to another, for a fixed
period and at a determined price, the privilege to buy or sell, or to decide whether or
not to enter into a principal contract. It binds the party who has given the option not to
enter into the principal contract with any other person during the period designated,
and within that period, to enter into such contract with the one to whom the option was
granted, if the latter should decide to use the option. It is a separate and distinct
contract from that which the parties may enter into upon the consummation of the
option. It must be supported by consideration.

In a right of first refusal, on the other hand, while the object might be made
determinate, the exercise of the right would be dependent not only on the grantor's
eventual intention to enter into a binding juridical relation with another but also on
terms, including the price, that are yet to be firmed up.

7. Repuela vs. Estate An equitable mortgage is one which, although lacking in some formality, or form, or
of Spouses Larawan words, or other requisites demanded by a statute, reveals the intention of the parties to
and Bacus, G.R. No. charge real property as security for a debt, and contains nothing impossible or contrary
219638, December 7, to law.
2016
 Article 1602 (2) of the Civil Code provides that when the supposed vendor remains in
possession of the property even after the conclusion of the transaction, the purported
contract of sale is presumed to be an equitable mortgage.

8. Arcaina vs. Ingram, In a lump sum contract, a vendor is generally obligated to deliver all the land covered
G.R. No. 196444, within the boundaries, regardless of whether the real area should be greater or smaller
February 15, 2017 than that recited in the deed. However, in case there is conflict between the area
actually covered by the boundaries and the estimated area stated in the contract of
sale, he/she shall do so only when the excess or deficiency between the former and
the latter is reasonable.

9. Sepe vs. Heirs of Article 1354 of the Civil Code provides: "Although the cause is not stated in the
Kilang, G.R. no. contract, it is presumed that it exists and is lawful, unless the debtor proves the
199766, April 10, 2019 contrary." Otherwise stated,the law presumes that even if the contract does not state a
cause, one exists and is lawful; and it is incumbent on the party impugning the contract
to prove the contrary. If the cause is stated in the contract and it is shown to be false,
then it is incumbent upon the party enforcing the contract to prove the legality of the
cause.

10. Trotin vs. Bongo, If the defending party fails to answer within the time allowed therefore, the court shall,
G.R. No. 212840, upon motion of the claiming party with notice to the defending party, and proof of such
August 28, 2019 failure, declare the defending party in default. Thereupon, the court shall proceed to
render judgment granting the claimant such relief as his pleading may warrant, unless
the court in its discretion requires the claimant to submit evidence. Such reception of
evidence may be delegated to the clerk of court.

In a contract to sell, the ownership is, by agreement, retained by the seller and is not to
pass to the buyer until full payment of the purcher’s price; the buyer’s full payment of
the price is a positive suspensive condition to the coming into effect of the agreement;
and the title simply remains n the seller if the buyer does not comply with the condition
precedent of making payment at the time specified in the contract.

11. Heirs of Alido vs. 1. Contracts which have all essential requisites for their validity are obligatory
Campano, G.R. No. regardless of the form they are entered into, except when the law requires that a
226065, July 29, 2019 contract be in some form to be valid or enforceable.

2. It is a settled rule that the failure to observe the proper form prescribed by Article
1358 does not render the acts or contracts enumerated therein invalid. A sale of real
property, though not consigned in a public instrument or formal writing, is,
 nevertheless, valid and binding among the parties, for the time-honored rule is that
even a verbal contract of sale of real estate produces legal effects between the parties.

3. Stated differently, although a conveyance of land is not made in a public document,

it does not affect the validity of such conveyance. Article 1358 does not require the
accomplishment of the acts or contracts in a public instrument in order to validate the
act or contract but only to insure its efficacy.

12. Racelis vs. In a contract to sell, payment of earnest money represents the seller's opportunity cost
Spouses Javier, G.R. of holding in abeyance the search for other buyers or better deals. Absent proof of a
No. 189609, January clear agreement to the contrary, it should be forfeited if the sale does not happen
29, 2018 without the seller's fault. The potential buyer bears the burden of proving that the
earnest money was intended other than as part of the purchase price and to be
forfeited if the sale does not occur without the seller's fault.

13. Ayala Land, Inc. vs. A contract is void if one of the essential requisites of contracts under Article 1318 of the
ASB Realty New Civil Code is lacking. Consent, being one of these requisites, is vital to the
Corporation, G.R. No. existence of a contract “and where it is wanting, the contract is non-existent. For
210043, September juridical entities, consent is given through its board of directors.
26, 2018

II. Parties to the Cases: Under Section 1 of Article XIII of the 1935 Constitution, natural resources shall not be
Contract of Sale 1. Fullido vs. Grilli, 785 alienated, except with respect to public agricultural lands and in such cases, the
(Articles SCRA 278, G.R. No. alienation is limited to Filipino citizens. Concomitantly, Section 5 states that, save in
1489-1494, New 215014 February 29, cases of hereditary succession, no private agricultural land shall be transferred or
Civil Code) 2016 assigned except to individuals, corporations, or associations qualified to acquire or
hold lands of the public domain in the Philippines. The prohibition on the transfer of
lands to aliens was adopted in the present 1987 Constitution, under Sections 2, 3 and
7 of Article XII thereof. Agricultural lands, whether public or private, include residential,
commercial and industrial lands. The purpose of prohibiting the transfer of lands to
foreigners is to uphold the conservation of our national patrimony and ensure that
agricultural resources remain in the hands of Filipino citizens. The prohibition, however,
is not limited to the sale of lands to foreigners. It also covers leases of lands amounting
to the transfer of all or substantially all the rights of dominion

2. Melecio Domingo v. If no judicial settlement proceeding is instituted, the surviving spouse shall
Spouses Genaro liquidate the conjugal partnership property either judicially or extrajudicially within
Molina and Elena one year from the death of the deceased spouse. If upon the lapse of the six month
Molina, substituted by period liquidation is made, any disposition or encumbrance involving the
 Ester Molina, G.R. No. conjugal partnership property of the terminated marriage shall be void.
200274, April 20, 2016

Module 3: I. Obligations of Cases:

the Seller 1. Banzon vs. Cruz, 45 If property is acquired through mistake or fraud, the person obtaining it is, by force of
(Articles 1163, SCRA 475 law, considered a trustee of an implied trust for the benefit of the person from whom
1495-1506, the property comes.
1521-1544, New
Civil Code)

2. EDCA Publishing
vs. 184 SCRA 614 The possession of movable property acquired in good faith is equivalent to a title.
Nevertheless, one who has lost any movable or has been unlawfully deprived thereof,
may recover it from the person in possession of the same.

If the possessor of a movable lost or of which the owner has been unlawfully deprived
has acquired it in good faith at a public sale, the owner cannot obtain its return without
reimbursing the price paid therefor.

3. Phil. Suburban
Development Corp. vs. Under the civil law, delivery (tradition) as a mode of transmission of ownership maybe
Auditor General, 63 actual (real tradition) or constructive (constructive tradition).
SCRA 397
When the sale of real property is made in a public instrument, the execution thereof is
equivalent to the delivery of the thing object of the contract, if from the deed the
contrary does not appear or cannot clearly be inferred.

4. Rosaroso vs. Soria,

699 SCRA 232, G.R. Contracts are presumed to be with sufficient consideration, the party who claims
No. 194846 June 19, otherwise has the burden of proof. Under the rules on double sale, to be preferred, the
2013 registration of the sale must be in good faith.

5. Skunac Corporation
vs. Sylianteng, 723 It is a settled rule that when two certificates of title are issued to different persons
SCRA 625, G.R. No. covering the same land in whole or in part, the earlier in date must prevail, and, in case
205879 April 23, 2014 of successive registrations where more than one certificate is issued over the land, the
person holding a prior certificate is entitled to the land as against a person who relies
on a subsequent certificate.

The titles of respondents, having emanated from an older title, should thus be upheld.

6. Manigque-Stone vs.
Cattleya Land, Inc., The rule on double sale, applies only to a situation where the same property is validly
802 SCRA 173, G.R. sold to different vendees.
No. 195975 September
5, 2016 The Court held that despite the fact that one deed of sale was registered ahead of the
other, Art. 1544 of the Civil Code will not apply where said deed is found to be a
forgery, the result of this being that the right of the other vendee should prevail.

7. Spring Homes
Subdivision Co., Inc. The requirement of the law then is two-fold: acquisition in good faith and registration in
vs. Tablada, Jr., 815 good faith. Good faith must concur with the registration – that is, the registrant must
SCRA 114, G.R. No. have no knowledge of the defect or lack of title of his vendor or must not have been
200009 January23, aware of facts which should have put him upon such inquiry and investigation as might
2017 be necessary to acquaint him with the defects in the title of his vendor.

8. Edu vs.Gomez, 129 The claim of petitioners that the Commission has the right to seize and impound the
SCRA 601; Duran vs. car under Section 60 of Republic Act 4136 which reads:
IAC, 138 SCRA 489 "Sec. 60. The lien upon motor vehicles. - Any balance of fees for registration,
re-registration or delinquent registration of a motor vehicle, remaining unpaid and all
fines imposed upon any vehicle owner, shall constitute a first lien upon the motor
vehicle concerned." is untenable.
It is clear from the provision of said Section 60 of Republic Act 4136 that the
Commissioner's right to seize and impound subject property is only good for the proper
enforcement of lien upon motor vehicles. The Land Transportation Commission may
issue a warrant of constructive or actual distraint against motor vehicle for collection of
unpaid fees for registration, re-registration or delinquent registration of vehicles

9. Spouses Manlan vs.

Spouses Beltran, G.R. Double sale is not applicable here for there are two sets of vendors who sold the
No. 222530, October subject land to two different vendees. Double sale exists when the same thing is sold
 16, 2019 to different vendees by a single vendor. Article 1544 has no application in cases where
the sales involved were initiated not just by one vendor but by several vendors.

10. Spouses Salitico In a contract of sale, the parties' obligations are plain and simple. The law obliges the
vs. Heirs of vendor to transfer the ownership of and to deliver the thing that is the object of sale to
Resurreccion, G.R. No. the vendee. Therefore, as a consequence of the valid contract of sale entered into by
240199, April 10, 2019 the parties, Resurreccion had the obligation to deliver the subject property to the
petitioners Sps. Salitico.

OR

Article 777 of the Civil Code together with the pertinent provisions of PD 1529(Sections
91 and 92) andthe Rules of Court(Rule 90, Section 1), while an heir may dispose and
transfer his/her hereditary share to another person, before the transferee may compel
the issuance of a new certificate of title covering specific property in his/her name, a
final order of distribution of the estate or the order in anticipation of the final distribution
issued by the testate or intestate court must first be had.

Module 4: I. Conditions and Cases: Article 1555 of the Civil Code.

Warranties 1. JM Tuazon & Co.,
(Articles Inc. vs. CA, 94 SCRA One who purchases real estate with knowledge of a defect or lack of title in his vendor
1545-1581, New 413 cannot claim that he has acquired title thereto in good faith, as against the true owner
Civil Code) of the land or of an interest therein; and the same rule must be applied to one who has
knowledge of facts which should have put him upon such inquiry and investigation as
might be necessary to acquaint him with the defects in the title of his vendor. A
purchaser cannot close his eyes to facts which should put a reasonable man upon his
guard and then claim that he acted in good faith under the belief that there was no
defect in the title of the vendor.

2. Escaler vs. CA, 138 In order that a vendor's liability for eviction may be enforced, the following requisites
SCRA 1; must concur: — a) there must be a final judgment; b) the purchaser has been deprived
of the whole or part of the thing sold; c) said deprivation was by virtue of a right prior to
the sale made by the vendor; and d) the vendor has been summoned and made
co-defendant in the suit for eviction at the instance of the vendee.

3.Moles vs. IAC, 169 "Art. 1562. In a sale of goods, there is an implied warranty or condition as to the quality
SCRA 777 or fitness of the goods, as follows:
(1) Where the buyer, expressly or by implication, makes known to the seller the
 particular purpose for which the goods are acquired, and it appears that the buyer
relies on the seller's skill or judgment (whether he be the grower or manufacturer or
not), there is an implied warranty that the goods shall be reasonably fit for such
purpose;"

4. Nutrimix Feeds A hidden defect is one which is unknown or could not have been known to the
Corporation vs. CA, 25 vendee.Under the law, the requisites to recover on account of hidden defects are as
October 2004 follows:
(a) the defect must be hidden;
(b) the defect must exist at the time the sale was made;
(c) the defect must ordinarily have been excluded from the contract;
(d) the defect, must be important (renders thing UNFIT or considerably decreases
FITNESS);
(e) the action must be instituted within the statute of limitations.

5. Philippine Steel An express warranty can be oral when it is a positive affirmation of a fact that the buyer
Coating Corp. vs. relied on. A warranty is a statement or representation made by the seller of goods –
Quinones, G.R. No. contemporaneously and as part of the contract of sale – that has reference to the
194533, February 15, character, quality, or title of the goods; and is issued to promise or undertake to ensure
2017 that certain facts are or shall be as the seller represents them. It is not necessarily
written

6. Spouses Batalla vs. Article 1561 of the Civil Code provides for an implied warranty against hidden defects
Prudential Bank, G.R. in that the vendor shall be responsible for any hidden defects which render the thing
No. 200676, March 25, sold unfit for the use for which it is intended, or should they diminish its fitness for such
2019 use to such an extent that, had the vendee been aware thereof, he would not have
acquired it or would have given a lower price. In an implied warranty against hidden
defects, vendors cannot raise the defense of ignorance as they are responsible to the
vendee for any hidden defects even if they were not aware of its existence.

7. Jurado vs. Spouses Case law states that reconstituted titles shall have the same validity and legal effect as
Chai, G.R. No. 236516, to the originals thereof unless the reconstitution was made extrajudicially, or
March 25, 2019 administratively. This is because administrative reconstitution is essentially ex-parte
and without notice, and thus, administratively reconstituted titles do not share the same
indefeasible character of the original certificates of title. Anyone dealing with such
copies are put on notice of such fact and warned to be extra-careful.
Module 6: I. Rights and Cases:
Obligations of 1. Arra Realty In a contract of sale, until and unless the contract is resolved or rescinded, the vendor
the Vendee Corporation vs. cannot recover the thing sold even if the vendee failed to pay in full the initial payment
(Articles Spouse Arguelles, 20 for the property. The failure of the buyer to pay the purchase price within the stipulated
1582-1593, New September 2004 period does not by itself bar the transfer of ownership or possession of the property
Civil Code) sold, nor ipso facto rescind the contract. Such failure will merely give the vendor the
• Republic Act No. option to rescind the contract of sale judicially or by notarial demand as provided for by
6552 Article 1592 of the New Civil Code.

2. Laforteza vs.
Machuca, 333 SCRA “In the sale of immovable property, even though it may have been stipulated that upon
643 failure to pay the price at the time agreed upon the rescission of the contract shall of
right take place, the vendee may pay, even after the expiration of the period, as long as
no demand for rescission of the contract has been made upon him either judicially or
by a notarial act. After the demand, the court may not grant him a new term.”

3. Vda. De Mistica vs.

Naguiat, 418 SCRA 73 In a contract of sale, the remedy of an unpaid seller is either specific performance or
rescission. Under Article 1191 of the Civil Code, the right to rescind an obligation is
predicated on the violation of the reciprocity between parties, brought about by a
breach of faith by one of them. Rescission, however, is allowed only where the breach
is substantial and fundamental to the fulfillment of the obligation.

4. Fedman
Development Article 1308 of the Civil Code provides: The contract must bind both contracting
Corporation vs. parties; its validity or compliance cannot be left to the will of one of them. ; Thus, in
Agcaoili, G. R. No. order for FDC to have validly cancelled the existing contract to sell, it must have first
165025; August 31, complied with Section 3 (b) of RA 6552. (If the contract is cancelled, the seller shall
2011 refund to the buyer the cash surrender value of the payments... 50%, + 5% every year
not exceeding 90%)

5. Heirs of Cardenas
vs. The Christian and An action for the recovery of possession must be founded on positive rights on the part
Missionary Alliance of of the plaintiff and not merely on negative ones, as the lack or insufficiency of title, on
the Philippines, Inc.
G.R. No. 222614, the part of the defendant.13
March 20, 2019
Hence, it was incumbent upon the Heir of Sps. Cardenas to establish her positive right
of possession over the subject property.

6. Malabanan vs.
Spouses Montano, All subsequent transferees of the conjugal property acquire no rights whatsoever from
G.R. No. 187225, the conjugal property's unauthorized sale. A contract conveying conjugal properties
March 6, 2019 entered into by the husband without the wife's consent may be annulled entirely."

Good Faith: First, the seller is the registered owner of the land; second, the latter is in
possession thereof; and third, at the time of the sale, the buyer was not aware of any
claim or interest of some other person in the property, or of any defect or restriction in
the title of the seller or in his capacity to convey title to the property.

7. EEG Development
Corporation vs. Heirs A person, to be considered a buyer in good faith, should buy the property of another
of De Castro, G.R. No. without notice that another person has a right to, or interest in, such property, and
219694, June 26, 2019 should pay a full and fair price for the same at the time of such purchase, or before he
has notice of the claim or interest of some other persons in the property.

8. Pablo Uy vs. Heirs The notarization of a document does not guarantee its validity because it is not the
of Julita Uy, G.R. No. function of the notary public to validate an instrument that was never intended by the
227460, December 5, parties to have any binding legal effect. Neither is the notarization of a document
2019 conclusive as to the nature of the transaction, nor is it conclusive of the true agreement
of the parties thereto.

Simply stated, the existence,veracity, and authenticity of a notarized written deed of

sale do not conclusively determine whether all the essential requisites of a contract are
present.

9. Spouses Carlos vs.

Tolentino, G.R. No. The binding force of a contract must be recognized as far as it is legally possible to do
234533, June 27, 2018 so.

This disposition is in line with the well-established principle that the binding force of a
 contract must be recognized as far as it is legally possible to do so — quando res non
valet ut ago, valeat quantum valere potest.

10. Villamil vs.

Spouses Erguiza, G. A contract to sell is defined as a bilateral contract whereby the prospective seller, while
R. No. 195999, June expressly reserving the ownership of the subject property despite delivery thereof to
20, 2018 the prospective buyer, binds himself to sell the said property exclusively to the latter
upon his fulfillment of the conditions agreed upon, i.e., the full payment of the purchase
price and/or compliance with the other obligations stated in the contract to sell. Given
its contingent nature, the failure of the prospective buyer to make full payment and/or
abide by his commitments stated in the contract to sell prevents the obligation of the
prospective seller to execute the corresponding deed of sale to effect the transfer of
ownership to the buyer from arising.

II. Actions for 1. Levi Hermanos, Inc.

Breach of vs. Gervacio, 69 Phil In order to apply the provisions of article 1454-A of the Civil Code it must appear that
Contract of Sale 52 there was a contract for the sale of personal property payable in installments and that
(Articles there has been a failure to pay two or more installments."
1594-1599, New
Civil Code)
OR
• Republic Act No.
4122
A cash payment cannot be considered a payment by installment, and even if it can be
so considered, still the law does not apply, for it requires non-payment of two or more
installments in order that its provisions may be invoked. Here only one is unpaid.

2. Zayas vs. Luneta

Motor Company, 117 Foreclose the chattel mortgage on the thing sold, if one has been constituted, should
SCRA 726 the vendee’s failure to pay cover two or more installments.

The established rule is to the effect that the foreclosure and actual sale of a mortgaged
chattel bars further recovery by the vendor of any balance on the purchaser’s
outstanding obligation not so satisfied by the sale.

3. Tajanlangit vs.
Southern Motors, Inc. In a contract of sale of personal property the price of which is payable in installments,
101 Phil 606
 secured by a mortgage on the goods sold, the vendor who chooses to exact fulfillment
of the obligation to pay is not limited to the proceeds of the sale, on execution, of the
mortgaged goods. The vendor may still recover from the purchaser the unpaid balance
of the price, if any.

4. Cruz vs. Filipinas The claim that what is being withheld from the vendor, by the proviso of Article 1484 of
Investment & Finance the Civil Code, is only the right to recover "against the purchaser" and not a recourse to
Corp., 23 SCRA 791 the additional security put up, not by the purchaser himself, but by a third person has
no merit.

5. PCI Leasing and Article 1485 of the Civil Code applies, as the case clearly reflects a situation in which
Finance, Inc. vs. the financing company can withhold and conceal its intention, until the last moment, to
Giraffe-X Creative sell the subject property in the finance lease, so that the Recto Law provisions be
Imaging, Inc., 527 circumvented.
SCRA 405, G.R. No.
142618 July 12, 2007

6. Nolasco vs. Cuerpo, The rescission (or resolution) of a contract will not be permitted for a slight or casual
G. R. No. 210215, breach, but only for such substantial and fundamental violations as would defeat the
December 9, 2015 very object of the parties in making the agreement.

7. Moldex Realty vs. The lack of a license to sell or the failure on the part of a subdivision developer to
Saberon, G.R. No. register the contract to sell or deed of conveyance with the Register of Deeds does not
176289, April 8, 2013 result to the nullification or invalidation of the contract to sell it entered into with a
buyer. The contract to sell remains valid and subsisting.

8. Spouses Domingo In a contract to sell, payment of the price is a positive suspensive condition, failure of
vs. Spouses Manzano, which is not a breach of contract warranting rescission but rather just an event that
G.R. No. 201883, prevents the prospective buyer from compelling the prospective seller to convey title. In
November, 16, 2016 other words, the non-fulfillment of the condition of full payment renders the contract to
sell ineffective and without force and effect.

9. Gregorio vs.
Crisologo, G.R. No. The SC held that in contract to sell payment of the price is a positive suspensive
210215, December 9, condition, failure of which is not a breach of contract warranting rescission but rather
2015 just an event that prevents the prospective buyer from compelling the prospective
 seller to convey title.

In other words, the non-fulfillment of the condition of full payment renders the contract
to sell ineffective and without force and effect Since failure to pay the price in full in a
contract to sell renders the same ineffective and without force and effect, then there is
no sale to speak of.

10. Delta Dev. And This is because the Contract to Sell, involving a subdivision lot, is covered and
Management Services protected by PD 957. One of the protections afforded by PD 957 to buyers such as
vs. Enriquez, G.R. No. Enriquez is the right to have her contract to sell registered with the Register of Deeds
168646, January 12, in order to make it binding on third parties.
2011

11. Heirs of Macalalad The settled rule is that the burden of proving the status of a purchaser in good faith lies
vs. Rural Bank of Pola, upon one who asserts that status, and this onus probandi cannot be discharged by
Inc. G.R. No. 200899, mere invocation of the legal presumption of good faith.
June 20, 2018
A purchaser in good faith is one who buys property without notice that some other
person has a right to or interest in such property and pays its fair price before he or she
has notice of the adverse claims and interest of another person in the same property.

12. Mendoza vs. 1. The disputable presumption is that consideration is inherent in every contract
Spouses Palugod, G.
R. No. 220517, June 2. As neither party was able to make out a case, neither side having established his/
20, 2018 her cause of action, the Supreme Court (SC) can only leave them where they are and
it has no choice but to dismiss the complaint, as the lower courts should have done.

Module 7 Extinguishment 1.Cebu State College The essence of a pacto de retro sale is that title and ownership of the property sold is
of Sale (Articles of Science and immediately vested in the vendee a retro, subject to the restrictive condition of
1600-1623, New Technology (CSCST) repurchase by the vendor a retro within the period provided in Article 1606 of the New
Civil Code) vs. Misterio, 759 SCRA Civil Code
1, G.R. No. 179025
June 17, 2015

2. Catangcatang vs. Pursuant to Article 1616 of the Civil Code, “the vendor cannot avail himself of the right
Legayada, 84 SCRA of repurchase without returning to the vendee the price of the sale, and in addition: (1)
51 the expenses of the contract, and any other legitimate payments made by reason of
the sale; (2) the necessary and useful expenses made on the thing sold.”
3. Alonzo vs. IAC, 150 The right of redemption of co-owners excludes that of adjoining owners. Under Article
SCRA 259; 1623, when a vendor sells real property, he must notify in writing his co-owners who
may redeem the same within thirty (30) days from notice. The general rule is that
written notice of the sale to all possible redemptioners is indispensable.

The 30 day period which is a condition precedent to the exercise of the right of legal
redemption is counted from the written notice.

4. Lee Chuy Realty The formal offer to redeem, accompanied by a bona fide tender of the redemption
Corporation vs. Court price, within the prescribed period is only essential to preserve the right of redemption
of Appeals, December for future enforcement beyond such period of redemption and within the period
4, 1995 prescribed for the action by the statute of limitations.

5. Anecita Gregorio v. The filing of an action for redemption couple with tender of payment is only proper but
Crisologo Vda. De not necessary tender of payment of price is not among the requisites needed to
Culig, G.R. No. redeem a land. It is enough that one who has the right to repurchase files a case to
180559; January 20, exercise such right.
2016