LAW2A --Sales Finals Reviewer

8/10/2019 LAW2A --Sales Finals Reviewer

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SALES

Contract of Sale. By the contract of sale one of the contracting parties obligates himselfto transfer the ownership of and to deliver a determinate thing and the other to paytherefore a price certain in money or its equivalent.

Contract of Sale Contract to Sell

Title over the property passes to the buyer

upon delivery unless there is a contraryagreement

Ownership is retained by the seller whether or

not there is delivery. Ownership passes to thebuyer only upon full payment of the price

Non-payment of the purchase price is anegative resolutory condition, meaning the salebecomes ineffective upon the happening ofsuch condition

The payment in full is a positive suspensivecondition, meaning, if the purchase price is notpaid, the obligation to deliver and to transferownership on the part of the seller does notbecome effective

After delivery of the obective, the seller losesownership over it. !nless, the contract is setaside, he cannot recover the obect

"hether there is delivery or not, the sellerretains the ownership of the obect. #f the seller,due to non-payment of the price is ousting thebuyer from the property, he $seller% is notrescinding the contract of sale but is preciselyenforcing it.

Pactum Reservatii Domini Contract to Sell

&onditional 'ale there is already a contract ofsale

No contract to sale only, a preparatory contract

There is already delivery but ownership retainby seller

No delivery yet. No sale yet

'pecific (erformance)*escission No specific performance)rescission+nocontract yet

(ayment completes the transaction (ayment will not complete transaction

Phases or Stages of A contract of Sale. Preparation, conception or generation+the period of negotiation and bargaining, ending atthe moment of agreement of the parties

. Perfection or Birth of the Contract. Consummation or death+which is the fulfilment or performance of the terms agreed upon

Characteristics or Features of Contract of Sale (NBCC!P". Nominate+#t has a specific name given by law.. Bilateral+both parties are obliged to fulfil reciprocal obligations to one another.. &onsensual+#t is perfected by mere consent/. &ommutative+The thing sold is equivalent of the price paid0. Onerous+The thing sold is conveyed in consideration of the purchase price and the purchaseprice is paid in consideration of the conveyance of the thing.1. (rincipal+#ts e2istence does not depend upon the e2istence and validity of another contract

#lements of Contract of Sale

.3ssential 3lements+necessary for the validty of the sale.a. 4eeting of the minds of the seller and the buyerb. Obect which is certain and determinatec. (rice certain

. Natural 3lements+those which are inherent in the contract and are deemed to e2ist in thecontract of sale in the absence of clear contrary agreement.

a. "arrant against evictionb. "arranty against hidden defects

. Accidental 3lements+4ay or may not e2ist depending on the stipulations of the parties li5econditions, payment of interest, place and time of payment.

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SALES

Object Must be Licit or Lawful. There are two kinds of illicit things:a. Illicit per sewhen by its nature it is heinous, immoral or wrongfulb. Illicit per accidenswhen it is prohibited by law

When is a thing determinate?a.When it is particularly designated or physically segregated from all others of the same

class.b. The thing is capable of being made determinate, at the time the contract is entered into,

w/o the necessity of a new or further agreement between the parties.

#mptio rei speratae$a sale of an e2pected thing subect to the condition that the thing will cometo e2istence. #f the thing did not come into e2istence, the contract is not effective and the buyerhas no obligation to pay the price. (resumption is in favor of this 5ind of sale, because it is morein 5eeping with the commutative character of a sale.

#mptio spei$a sale of a hope or e2pectancy. The contracting parties intended that contract ofsale to e2ist at all events, whether or not the e2pected thing will come into e2istence such that thebuyer will have to pay the purchase price, such that the contract becomes aleatory in nature.

#mptio rei speratae vs. #mptio spei#mptio rei speratae #mptio spei

'ale of a thing having a potential e2istence 'ale of a mere hope or e2pectancy

The uncertainty is with regard the quantity andquality but not with regard the e2istence of thething

The uncertainty is with regard the e2istence ofthe thing

The contract deals with a future thing The contract deals with a present thing+thehope or e2pectancy

The sale is subect to the condition that thething should e2ist, so that if it does not, there isno contract for lac5 of an essential requisite

The sale produces effects eventhough the thingitself does not come into e2istence, since thesubect matter is the hope itself

Future Goods that may be subject of a contract of sale. 6oods to be manufactured yet. 6oods to be acquired by the seller after the perfection of contract of sale. 6oods that depends upon a contingency that may or may not happen

Purchase of an Undivided hare in !ecific Mass of Fungible Goods" #ules$. #f the aliquot part purchased from the seller is more than the whole undetermined mass after ithad been weighed or measured, then the buyer becomes the owner of the entire mass.. #f the aliquot part purchased is less than the whole undetermined mass, the purchaser willbecome the co-owner of the whole mass in the proportion in which the number, weight ormeasure of what had been purchased bears to the number, weight or measure of the mass orstoc5.

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SALES

Sale vs. Agenc%

SA A'#NC

The buyer pays for the price of thegoods)property purchased

The agent does not pay for the price. 7emerely accounts for the proceeds of the sale.

The buyer becomes the owner of thegoods)property purchased

The agent does not become the owner of thegoods)property delivered to him for sale.

Buyer cannot return the goods)property whenthe sale is defective The agent returns the goods)property if he wasnot able to sell the same

The seller warrants the goods)property sold The agent does not ma5e any warranty as longas he acts within his authority and in the nameof the principal

The seller has full freedom to enter into anyterms or conditions on the contract of sale

The agent must follow the instructions of theprincipal

Contract for a Piece of )or*$The article sold is specially manufactured and upon the specialorder of the customer. Article is not sold in the ordinary course of business. $'ee. &oncrete

Aggregates vs. &TA%

Contract for a piece of +or* Contract of Sale

The thing transferred is one not in e2istenceand w)c never would have e2isted but for theorder of the party desiring to acquire it

The thing transferred is one which would havee2isted and would have been the subect ofsale to some other person, even if the orderhad not been given

The services dominate the contract eventhoughthere is a sale of goods involved

The primary obective of the contract is a saleof the manufactured item8 it is a sale of goodseventhough the item is manufactured by laborfurnished by the seller and upon previous orderof the customer

Not w)in the 'tatute of 9rauds 6overnable by the 'tatute of 9rauds

Rules if Consideration is partl% one% and Partl% 'oods. :etermine the intention of the parties.. #f intention could not be determined, consider the value of the thing given;

a. #f value of the thing more than value of the money, it is BA*T3*b. #f value of the thing less than value of the money, it is 'A


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SALES

#ffect if /rdPerson fi-ed the priceGeneral ule:#t is binding upon the parties!"ceptions:. "hen the rdperson acts in bad faith. "hen the rdperson disregards the specific instructions or the procedure mar5ed out by

the parties

#ffect +hen the price is not fi-ed 0% the / rdperson designated. #f the rdperson refuses or cannot fi2 the price, the contract shall become ineffective, unlessthe parties subsequently agree upon the price. #f the rdperson is prevented from fi2ing the price by the fault of the seller or buyer, the partynot in fault may obtain redress against the party in fault.

#ffect of 'ross nade1uac% of Price. No effect.#-ceptions2 $meaning, sale is set aside%

. #f consent is vitiated, such as >#49! $>iolence, #ntimidation, 4ista5e, 9raud, !ndue influence%. #f the parties intended a donation or some other act or contract. #f the price is so low as to be shoc5ing to the conscience

#ffect of Simulated Price. 'ale is void, unless it could be shown that the parties intended a

donation or some other act of liberality.Price imulated%No price to support a contract of sale, such that neither party had any

intention that the amount will be paid+voidPrice is False%there is a real price not declared+contract is valid, but the underlying deed

is subect to reformation to indicate the real price upon which the minds of the parties have met.

)hen Price Cannot 0e determined, effect2 'ale is inefficacious. $/=/%#s appropriation of the thing delivered in an inefficacious contract allowed? @es, buyer must

pay a reasonable price to that part delivered. $*easonable price is generally the mar5et price atthe time and place fi2ed by the contract or by law for the delivery of the goods%

P#RF#C3!N !F C!N3RAC3 !F SA. 4eeting of the minds upon the thing and price.#ffect2 (arties may reciprocally demand performance

R4S !N A4C3!N SAS. 3ach lot is subect of a separate contract of sale. Auction sale is perfected when the auctioneer announces its perfection by the fall of thehammer or in other customary manner.

(ending announcement;Any bidder may retract his bid

Auctioneer may withdraw the goods, unless auction is w)o reserve

. A right to bid may be reserved e2pressly by or on behalf of the seller, unless otherwiseprovided by law or stipulation/. Notice is essential for the seller or his representative to be able to bid.

&y%bidders or !uffers$persons employed by auctioneer who will bid w/o being bound butwhose bids will ha#e a tendency to induce or pro#oke higher bids from interested buyers, thus

misleading the latter because of the inflated bid price.$$It is the secrecy of the puffing and not the authori%ed bidding by the seller which makes it

fraudulent.

!P3!N C!N3RAC3. A (rivilege e2isting in one person, for which he had paid a consideration,which gives him the right to buy, certain merchandise or property from another person at anytimewithin the agreed period at a fi2ed price. #n case of breach of promise to buy or to sell, inuredparty can only see5 damages. $'ee Art. /=%

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SALES

3est to Determine +hether a Contract is A contract of Sale or An !ption. "hether or not theagreement could be specifically enforced. #f such stipulation could be independently enforcedfrom the contract, then such stipulation is an option.

#ARN#S3 !N# vs. !P3!N !N#

#arnest one% !ption one%#t is part of the purchase price #t is given as a distinct consideration for anoption contract which gives the buyer a specificperiod within which to purchase the thing

#t is given only when there is already aperfected sale

#t is given at a time when the sale had not yetbeen perfected. "hat had been perfected onlyis the option contract

"hen it is given, the buyer is bound to pay thebalance of the agreed purchase price

3ven if option money is paid by the would-be-buyer he is not bound to buy the thing

#f the sale does not materialiCe, the earnestmoney paid must be returned, unless acontrary agreement had been stipulated

#f the buyer decides not to buy the thing, hecannot recover the option money he paid asconsideration for the contract of option

&!SS, D#3#R!RA3!N !F 35N'

B#F!R# P#RF#C3!N. No contract to tal5 about. "ould-be-seller bears the loss.

A3 35# 3# !F P#RF#C3!N !F C!N3RAC3 !F SA$678/contract without any effect; it never came to e2istence. Tthere could be no contract of sale

without a thing to be sold. "ould-be-seller bears the loss.

AF3#R P#RF#C3!N B#F!R# D#&9#R.. /DE Applicability, correlate to; $9ungibles sold independently and for a single price

covered by the law%

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'rt" (()*. !#ery person obliged to gi#e something is also obliged to take careof it with the proper diligence of a good father of a family, unless the law or thestipulation of the parties re&uires another standard of care

'rt" (()+"The creditor has a right to the fruits of the thing from the time theobligation to deli#er it arises. 'owe#er, he shall ac&uire no real right o#er ituntil the same has been deli#ered to him.

'rt" ((),"When what is to be deli#ered is a determinate thing, the creditor, inaddition to the right granted him by (rticle ))*+, may compel the debtor tomake the deli#ery.If the thing is indeterminate or generic, he may ask that the obligation becomplied with at the e"pense of the debtor.If the obligor delays, or has promised to deli#er the same thing to two or more

persons who do not ha#e the same interest, he shall be responsible for anyfortuitous e#ent until he has effected the deli#ery

'rt" (-)-"(n obligation which consists in the deli#ery of a determinate thingshall be e"tinguished if it should be lost or destroyed without the fault of thedebtor, and before he has incurred in delay.When by law or stipulation, the obligor is liable e#en for fortuitous e#ents, theloss of the thing does not e"tinguish the obligation, and he shall be responsiblefor damages. The same rule applies when the nature of the obligation re&uiresthe assumption of risk.


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SALES

. 0E/ Applicability. (rinciple of *es (erit :omino. >endor bears ris5 of loss until ownershipis transferred by delivery.

32ceptions; a% "here delivery of goods has been made but ownership is retained bythe seller merely to secure performance of buyerFs obligation

b% "here actual delivery is delayed through fault of the buyer.

Sale of 'oods B% Description where a seller sells a thing as being of a certain 5ind verballydescribing them and the buyer simply relies on the sellerFs descriptions of the things, not 5nowingwhether the sellerFs representations are true or not.

Sale 0% Sample "here the seller warrants that the bul5 of goods being sold correspond with thesample or samples e2hibited not only in 5ind but also in quality and character.

Sale 0% Description and Sample"here the seller has to satisfy the requirements in sale bydescription and sample. There are two-fold warranty here; $a% the goods purchased matched withthe description and $b% the goods also matched in 5ind, quality and character with that of thesample or samples e2hibited to the buyer or his representative

R#C3! &A) (AR3. 67:7"

'!!licability$ales of -ersonal -roperty in Installments and eases of -ersonal -roperty w/ption to 0uy#emedies$1)2 !"act fulfillment of the obligation, should the #endee fail to pay3142 5ancel the sale, should the #endee6s failure to pay co#er two or more installments3172 8oreclose the chattel mortgage on the thing sold, if one has been constituted, should the#endee6s failure to pay co#er two or more installments. In this case, he shall ha#e no furtheraction against the purchaser to reco#er any unpaid balance of the price. (ny agreement to thecontrary shall be #oid.

The stipulation that the instalments or rents shall not be returned to the vendee or

lessee shall be valid as long as it is not unconscionable. $/D1%

AR3. 67:8.3+o ;inds of ncapacit%2. Absolute #ncapacity- (arty cannot bind himself in any case.. *elative #ncapacity- &ertain (ersons under certain circumstances cannot buy certain

property.

4inors in contract for necessaries must pay reasonable price.

Necessaries$those things which are needed for sustenance, dwelling, clothing and medicalattendance, in 5eeping with the financial capacity of the family of the incapacitated person.

AR3. 678a. &reditors prior to the saleb. 7eirs of either spouse.

3ither spouse may not assail illegality because they are parties thereto.

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SALES

A spouse designated as agent of the other spouse may sell the latterFs e2clusive property.

AR3. 6786. Persons Relativel% ncapacitated to Bu%. (PA'#?!"

. Public Officers and employees+(roperty Of 'tate.. Agents+(roperty of (rincipal unless with consent.. 'uardian+(roperty of "ard./. #2ecutors and administrators+3state0. ?ustices, Gudges, (rosecuting Attorneys, &ler5s and employees of court+(roperty)*ightsunder litigation.1. !thers disqualified by law. $!". $aliens who are dis&ualified to purchase pri#ate agriculturallands3 $an unpaid seller ha#ing a right of lien or ha#ing stopped the goods in transitu, who is

prohibited from buying the goods either directly or indirectly in the resale of the same at a publicor pri#ate sale w/c he may make. (rt. )977, par.92

Rationale2 9iduciary relationshipStatus of Sale2 >oidable $-%8 >oid $/-1%

AR3. 678@. 678< and 6786 Applica0le to &egal Redemption, Compromises and

Renunciations.

AR3. 678/. &oss of !0=ect Before Sale. Complete and Partial &oss.Partial &oss Rules2. >endee may withdraw from the contract. :emand the remaining part, paying its price in proportion to the total sum agreed upon

AR3. 6787. &ossSu0stantial Deterioration of Specific 'oods +ithout sellers *no+ledge.. Buyer may avoid the sale or. 4ay treat sale as valid w) respect to the e2isting goods

AR3. 678. !0ligations of 9endor. (3D)P". 3ransfer Ownership $not waivable%

. Deliver $not waivable%. )arrant Obect $waivable and may be modified%/. Preserve Thing from perfection to delivery $Art. 1%0. Pay for the e2ecution and registration of the sale unless there is a contrary agreement

32ecution sales do not require the delivery of thing since a one year period of redemption isavailable to seller.

AR3. 678. Deliver% 3ransfers !+nership.AR3. 678E. Control and Possession necessar% in Deliver%.

#-ception2Art./=D. 'tipulation as to full payment of price.

Deliver%a mode of acquiring ownership as a consequence of a contract of sale by virtue of

which actually or constructively the obect is placed in the control and possession of the vendee.

;NDS !F D#&9#R. Actual or *eal. $/=%.


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SALES

d. Traditio Brevi 4anu- if the buyer had already the possession of the obect even before thepurchase. $lessee becomes owner%

e. Traditio constitutum possessorium- possession as owner changed. $Owner becomeslessee%

. Huasi-Tradition- :elivery of *ights, credits or incorporeal property made by;a. 32ecution of public instrumentb. (lacing titles of ownership in the hands of a lawyer.c. Allowing the buyer to ma5e use of the rights $0E%

AR3. 678:. Constructive deliver%.*equirements;. 'ellerFs &ontrol.. 'ellerFs &ontrol transferred to buyer.. #ntention to deliver for ownership.

AR3. 6788. 3raditio &onga and Brevi anuAR3. 6


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SALES

Art. 6


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SALES

Nature and function2. *eceipts of, or orders upon, a bailee of goods represented.. 3vidence of transfer of title and possession of goods and contract between the parties.

Some Forms of Documents of 3itle

).&ill of Lading- #t is a contract or receipt for the transport of goods and their delivery to theperson named therein, to order or to bearer. #t usually involves three persons; the carrier, theshipper and the consignee.4. .oc1 Warrant it is an instrument gi#en by dock owners to an importer of goods warehousedon the dock as a recognition of the importers title to the said goods, upon production of the bill oflading.7. 2uedan%a warehouse receipt for commodities or goods such as sugar, tobacco, rice or hemp;. Warehouse #ecei!t0( receipt wherein it is stated that certain goods were recei#ed by thebailee to be deli#ered to the bearer or to the order of any person named in such receipt or to aspecified person9. Letter of 3redit0it is nothing more than a commitment by the issuer that the party in whosefa#or it is issued and who can collect upon it will ha#e his credit against the applicant of the letter

duly paid in the amount therein specified.

Classes of Documents of 3itle2. Negotiable- those by the terms of which the bailee underta5es to deliver the goods to thebearer and those by the terms of which the bailee underta5es to deliver the goods to the order ofa specified person.. Non Negotiable- those by the terms of which the goods covered are deliverable to a specifiedperson.

AR3. 6


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SALES

AR3. 66/. R'53 !F P#RS!N 3! )5! D!C4#N3 5AS B##N N#'!3A3#D.. The title of the person negotiating the document over the goods covered by the document.. The title of the person$depositor or owner% to whose order by the terms of the document thegoods were to be delivered.. The direct obligation of the bailee $warehouseman or carrier% to hold possession of the goodsfor him, as if the bailee had contracted with him.

AR3. 667. R'53S !F P#RS!N 3! )5! D!C4#N3 5AS B##N 3RANSF#RR#D.Applicability; $a% Transferee of Negotia0ledocument of title not duly negotiated $b%transferee of anonnegotia0ledocument.

Rights ac1uired2. Title to the goods as against the transferor.. The right to notify the bailee of the transfer thereof.. The right, thereafter to acquire the obligation of the bailee to hold the goods for him.

*ights not absolute. They are subect to the terms of any agreement with the transferor.Before Notification the bailee is not bound to the transferee whose right may be defeated by alevy of an attachment or e2ecution upon the goods by the creditor of the transferor or by a

notification to such bailee of the subsequent sale of the goods.

AR3. 66. 3RANSF#R !F !RD#R D!C4#N3 )35!43 ND!RS##N3.#ights of transferee$. The right to the goods as against the transferor.. The right to compel the transferor to indorse the indorsement.

Ascertain the intention if contrary appears as to necessity of negotiation.

AR3. 66. )ARRAN3#S !N SA !F D!C4#N3S B 35# 3RANSF#R!R. (indorsementdeliver%" ('R3". That the document is 'enuine. That he has legal Right to negotiate or transfer it.

. The he has no 5nowledge of fact which would mpair the validity or worth of the document./. That he has the right to transfer the 3itle to the goods and goods are merchantable or fit for aparticular purpose.

AR3. 66E. ND!RS#R N!3 '4ARAN3!R. T73*39O*3 NOT AR3. 66:. )5#N N#'!3A3!N N!3 PAR#D B FRA4D, S3A;#, D4R#SS, &!SS,35#F3, !R C!N9#RS!N. !R 35#R# )AS BR#AC5 !F D43 !F 3RANSF#R!R.--#f the transferee paid value, without notice of such factors, therefore in 6ood 9aith

AR3. 668. A33AC5#N3 !R 4P!N '!!DS C!9#R#D B A N#'!3ABD!C4#N3 N!3 A&&!)#D, )5 N P!SS#SS!N !F BA# 4NSS D!C4#N3 B#

FRS3 S4RR#ND#R#D !R 3S N#'!3A3!N PR!5B3#D B 35# C!4R3.

AR3. 6@


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SALES

/. 'ellerFs residence.0. 'pecific 6oods; (lace where goods are at the time of contract 5nown to parties.

B. 3# !F D#&9#R !F '!!DS. Agreement.. No time fi2ed, within a reasonable time.

C. D#&9#R !F '!!DS A3 35# P!SS#SS!N !F 35RD P#RS!NS. I'eller is relieved ifrdperson ac5nowledges to be the bailee of the buyer.

D. Demand or tender of deliver% effective if made at a reasona0le hour.#. Seller 0ears the e-penses incidental to putting goods in delivera0le state.

AR3. 6@@A. D#&9#R !F '!!DS SS 35AN 35# 4AN33 C!N3RAC3#D.. Buyer may reect.. Buyer may accept by paying;

a. price at the contract rate if he 5new that no more were to be deliveredb. fair value $reasonable mar5et value% of the goods if he did not 5now that the seller is going

to be guilty of breach of contract.

B. D#&9#R !F '!!DS !R# 35AN 4AN33 C!N3RAC3#D. Accept and reect e2cess.. Accept all-


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SALES

AR3. 6@. R##D#S !F AN 4NPAD S#&R. K&S RR)L. A lienon the goods or right to retain them for the price while he is in possession of them8. *ight of stoppingthe goods in transitu after he has parted with the possession of them8. *ight of Resale/. *ight to Rescind0. *ight of +ithholdingthe delivery when ownership has not yet passed to buyer.

AR3. 6@E. )5#N 4NPAD S#&RS P!SS#SS!R N A B# #J#RCS#D. KS#L. 'ales without stipulation as to credit.. 32piration of term of credit.. #nsolvency of the buyer.

AR3. 6@:. N !N 35# R#AND#R )5#N 35#R#S PAR3 D#&9#R, 4NSS N3#N33! )A9# 35# N !R R'53 !F R#3#N3!N.

AR3. 6@8. )5#N 4NPAD S#&R &!S#S P!SS#SS!R N. KDP)L. Deliver%to agent or bailee of buyer.. Possessionby buyer or his agent.

. )aiverof lien.

MMM "hen unpaid seller becomes udgment creditor he does not lose his lien.

AR3. 6/


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SALES

--Notice to be effectual must be given in such time and circumstance that the principal by thee2ercise of reasonable diligence may prevent a delivery to the buyer.

--*edelivery necessary according to directions of seller.--#f goods are covered by negotiable document of title carrier or bailee has no obligation to

deliver to seller unless document is cancelled.

AR3. 6//. )5#N R#SA S A&&!)AB"here seller has either a right of lien or a right of stoppage in transitu and under the followingcases; PRD. "here the goods are perisha0lein nature. "here the right to resell is e-pressl% reservedin case the buyer should ma5e a default. "here the buyer dela%s in the pa%mentof the price for an unreasonable time.

AR3. 6/7. )5#N 35# S#&R A R#SCND. "here the right to rescind is e2pressly reserved in case the buyer should ma5e a default. "here the buyer delays in the payment of the price for an unreasonable time.

AR3. 6/. #FF#C3 !F SA !F '!!DS S4B?#C3 3! N !R S3!PPA'# N 3RANS34.

). Where Goods not co#ered by negotiable document of title.+'eller can give no larger right than

he has. Also with a buyer who sold goods to another.4. Where Goods co#ered by negotiable document of title+'ellerFs lien cannot prevail against therights of a purchaser for value in 69 to whom the document is indorsed.

Article 6/+*ight to "ithhold delivery of thing sold by the vendor in case the vendee lose theright to ma5e use of the term, as provided in Art. D; (F9A"

. "hen after the obligation has been contracted vendee becomes insolvent, unless hegives a guaranty or security for the price

. "hen he does not furnish to the vendor the guaranties or securities which he haspromised

. "hen by his own acts he has impaired said guaranties or securities after theirestablishment, and when through fortuitous event they disappear, unless he immediately gives

new ones equally satisfactory/. "hen the vendee violates any underta5ing, in consideration of which the vendor agreed

to the period0. "hen the vendee attempts to abscond

Article 6/E+>endor is bound to deliver the thing sold and its accessions and accessories in thecondition in which they were upon the perfection of the contract. All fruits pertain to vendee fromthe day on which the contract was perfected.

Article 6/:+


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SALES

Article 6/8+"hat delivery includes? #t includes the placing in the control of the vendee all thatis stated in the contract in conformity with the following rules;

a. ale OF #4'L 4/'/4by unit of measure or number; The vendor must deliver all thatmay have been stated in the contract. #f it is not possible to deliver all, the vendee may choosebetween;

endee has the option to;

a. *educe the price in proportion to the deficiency in the area O*b. *escind the contract for breach of stipulations.

PR#SCRP3!N !F AC3!NS for rescission or e2action of proportionate reduction of thepurchase price against the vendor under Art. 0 and 0/; 'i2 4onths from the day ofdelivery. L0/M

D!4B SA (677"

'eneral Rule2 9#*'T #N T#43, (*#O*#T@ #N *#67TApplica0ilit% of 'eneral Rule2 Only when the requisites in Article 0// are not present

Re1uisites for D!4B SA to #JS3 (9!CS". Two or more sales transactions must constitute valid sales. Two or more sales transactions must pertain to the same obect or subect matter. Two or more buyers at odds over the rightful ownership of the subect matter must eachrepresent conflicting interests/. Two or more buyers must each have brought from the very same seller

#ules of Preference of Ownershi!

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SALES

Movable or Personal Pro!erty: Owner is the one who is in first possession in good faith.

7mmovable. 9irst to register in good faith. No inscription, first to possess in good faith. No inscription and no possession in good faith+(erson who presents oldest title in good

faith

)hat is R#'S3RA3!N> #t is any entry made in the boo5s of the *egistry, including bothregistration in its ordinary and strict sense, and cancellation, annotation, and even the marginalnotes. #t is the entry which records solemnly and permanently the right of ownership and otherreal rights.

CAS#S )5#R# AR3C 677 CANN!3 B# N9!;#D. "hen the earlier transaction is a pacto de retro sale of an unregistered land and thesubsequent conveyance is a donation of the land in favor of another by the vendor a retro. Thevendee a retro has the better right over the donee. The donor had nothing more to donatebecause of failure to repurchase the property.. "here one of the deeds of sale is a forgery.

. "here one sale is absolute and the other is a pacto de retro where the period to redeem hasnot yet e2pired./. "here one of the sales is subect to a suspensive condition which condition was not compliedwith and the other is an absolute sale. 3ven if the conditional sale was made prior to theabsolute sale.0. "here one transaction is a sale and the other a mortgage1. "here one claim is based on prescription and the other is on sale=. "here the subect land is not registered under (: 0D. #n a contract to sell, there being no previous sale of the property.

Article 0// applicable to :ouble :onations as provided by Art. =//.

C!ND3!NS AND )ARRAN3#S

Article 67."hat are the options of a party to a contract of sale subect to a condition, when such

condition was not fulfilled by the other party?a. *efuse to proceed with the contract O*b. "aive performance of the condition and proceed with the contract

"hat if the condition agreed upon is in the nature of a promise that it should happen? Thenthe non-fulfillment of such condition is considered a breach of warranty.

Article 67.)ARRAN3.--#t is a collateral underta5ing in a sale of either real or personal property, e2press or implied,

that if the property sold does not possess certain incidents or qualities, the purchaser may eitherconsider the sale void or claim damages for breach of warranty.

45!ress Warrantyany affirmation of fact or any promise by the seller relating to the thing ifthe natural tendency of such affirmation or promise is to induce the buyer to purchase the sameand if the buyer purchases the thing relying thereon.

Affirmation of the value of the thing or statement of the sellerFs opinion is not warranty,

unless the seller made such affirmation or statement as an e2pert and it was relied uponby the buyer.

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7m!lied WarrantyIt is inherent in a contract of sale and presumed to e"ist although nothinghas been mentioned about it.

7m!lied Warranties in 3ontracts of ale 8(,+9:. #mplied warranty as to the right of the seller to sell at the time when ownership has to pass.$"arranty against eviction%. #mplied warranty against hidden defects or faults or charge or encumbrances un5nown to thebuyer. #mplied warranty as to fitness and merchantability/. "arranty against encumbrances or non-apparent servitudes $01E%

3ases where im!lied warranty is not a!!licable. 'ale made by a sheriff, auctioneer, mortgagee, pledge or other person professing to sell byvirtue of authority in fact or law $0/=% $The udgment debtor is responsible here for eviction%. 'ale under Ias is and where isJ+this carries no warranty as to the quality or wor5ablecondition of the goods and the buyer ta5es them as they are. 7owever, such condition does notinclude those that could not be discovered by a physical e2amination of the goods sold.. 'ale of second hand articles does not carry any warranty as to the condition, adaptation,fitness or suitability for purposes for which they have been purchased.

/. 'ale of property sold at public auction for ta2 delinquency. There is no warranty on the part ofthe 'tate as to the title of the owner.

)ARRAN3 A'ANS3 #9C3!N+The seller guarantees that he has the right to sell the thingsold and to transfer ownership to the buyer who shall not be disturbed in his legal and peacefulpossession thereof.

4viction0(


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. 5onscientethe wai#er is #oluntarily made by the #endee w/o the knowledge and assumptionof the risks of e#iction. 1=endor shall only be liable to pay the #alue w/c the thing sold had at thetime of the e#iction2. Intencionadathe wai#er is made by the #endee w/ knowledge of the risk of e#iction andassumption of its conse&uences. 1=endor here shall not be liable2

Rights of 9endee in case of eviction (6" To demand to the vendor the following (9C#D"

. 9alue which the thing sold had at the time of eviction, be it greater or less than the price ofthe sale.

. ncome or fruits, if vendee was ordered to deliver them to the party who won the suitagainst him

. Costs of the suit which caused the eviction, and those suit brought against the vendor forwarranty

/. #2penses of the contract, if the vendee paid them0. Damages and interests and ornamental e2penses, if the sale was made in bad faith.

*escission is not a remedy in case of Total eviction because rescission contemplates that theone demanding it is able to return whatever he has received under the contract. 'ince the vendeecan no longer restore the subect-matter of the sale to the vendor, rescission cannot be carried

out.

Rights of Action of 9endee in case of Partial #viction (6". 3nforce the vendorFs liability for warranty against eviction O*. :emand the rescission of the contract of sale w) obligation to return the thing w)o otherencumbrances than those w)c it had when acquired

Applicability; A part of the thing sold of such importance was lost because of eviction,

that the vendee would not have bought it w)o said part. 'ame rules apply to a case where two or more things are ointly sold for a lump sum or

for separate price for each, when the vendee would not have bought one w)o the other.

)arrant% against encum0rances or nonapparent servitudes (6


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)ARRAN3 A'ANS3 5DD#N D#F#C3S

#e;uisites$ 8


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Remedies of Bu%er (6E". Accion *edhibitoria+action see5ing withdrawal from the contract. Accion quanti minores or estimatoria+action for proportionate reduction in the price

Nature of *emedies; Alternative8 both with damages

&oss of 3hing Sold due to 5idden Defects (6:"

9endor in Bad Faith 9endor in 'ood Faith

Bears the loss :oes not bear the loss

4ust return the price 4ust return the price with interest

4ust refund e2penses of the contract 4ust refund e2penses of the contract

(ay damages Not obliged to pay damages

&oss of 3hing Sold + 5idden defects through fortuitous event or vendees fault (68" >endee may demand price paid less value of the thing at the time of loss plus damages ifvendor acted in bad faith.

"arranties against hidden defects, merchantability and fitness are applicable to udicial

sales but udgment debtor is not liable for damages, because the latter is only forced tosell and therefore did not ta5e part in the conduct of the sale and determination of pricewhich precludes possibility of bad faith $0=E%

(rescription of Actions; 1 4onths from delivery of thing $0=%

?oint Sale of t+o or more animals (6E@" "here one suffers redhibitory defect this shall not affect others

32ception; #f the buyer would not have purchased the sound animals w)o the defective

ones. #n such case, sale may be rescinded. (resumption of 32ception; #f a team, yo5e or pair or set is bought even if a separate price

has been fi2ed for each The following rules shall be applicable to oint sale of two or more things $0=%

There is no warranty against hidden defects of animals sold at fairs or at public auctions or oflivestoc5 sold as condemned.$0=/% ationale: (nimals are not bought because of their &uality orcapacity for work3 and in such circumstance defects are clearly known to buyer.

)hen is Sale of Animals 9oid> $0=0%. "hen suffering from contagious diseases. #f use or service for which they are acquired has been stated in the contract and they are foundto be unfit

*emedy; :eclaration of Nullity of &ontract

Redhi0itor% defect of Animals$such defect that even in case of professional inspection it is ofsuch nature that even e2pert 5nowledge is not sufficient to discover it.$0=1%

(rescription of *edhibitory Actions in defective animals+/E days from delivery$0==%

>endor is liable if animal should die w)in days after its purchase, if cause of death

e2isted at time of contract $0=D%Animal should be returned in the condition in which it was sold and delivered if sale was

rescinded. >endee is answerable for any inury due to his negligence and not arisingfrom redhibitory defect $0=%

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Remedies of Bu%er in Sale of Animals + Redhi0itor% defect (6:a. #f there is an e2press stipulation to the contraryb. "hen the goods are deliveres Icollect on deliveryJ, the buyer cannot e2amine the goods

unless he pays first the price. 32ception; 7e need not pay the price if there is a contraryagreement or the e2amination is permitted by usage of trade at the place of delivery.

Article 6:. Signs or #vidence of Acceptance 0% the 0u%er of 'oods delivered to him.(CPR"a. "hen he communicates with the seller e2pressly manifesting his acceptance thereof.b. "hen he performs an act in relation to the goods inconsistent with the ownership of the

seller. 32amples; $a% continuous possession and use of goods $b% reselling the goods $c%mortgaging the goods

c. "hen after the lapse of a reasonable time following the delivery, he retains the goods w)ocomplaining to the seller or w)o intimating that he has reected them.

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Article 6:. Acceptance of 'oods.4ere Acceptance does not necessarily discharge the seller from liability for the breach of

any promise or warranty. 7owever to ma5e the seller liable the buyer must notify the seller w)in areasonable time about the breach of promise or warranty.

-urpose of @otice:To insulate the seller from belated claims of defects and to allow him toma5e urgent investigation on the validity of claims.

Article 6:E. #ffects of ?ustifia0le refusal to accept deliver% 0% the 0u%er. Buyer has no duty to return the goods to the seller but must notify the seller of his refusal

to accept the goods. $*is5 of endor however has the alternative of compelling specific performance if the ground tofear loss does not e2ist.

Article 68@. #-ception to the general rule on rescission in case of sale of immova0les.

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General ule on escission:The court may fi2 the period of payment when there is ustcause.

!"ception:&ourt is not allowed to grant a new period. Once there is a udicial demand bynotarial act received by the vendee, the court may not grant him a new term. The reason is thatthe vendee already enoyed the advantage of paying beyond the time originally fi2ed in thecontract, during the time when no demand for rescission either udicially or e2tra-udicially hasta5en place.

Art. 0 Not applicable in;. 'ales by instalments where parties have laid down the procedure to be followed in the

event the vendee failed to fulfill his obligation. A mere promise to sell where the title remains with the vendor until full payment of the

price.

Article 68/. Automatic Rescission of sale of mova0les. Conditions for applica0ilit% ;. if the vendee upon the e2piration of the period fi2ed for the delivery of the thing

purchased, refused to receive it w)o ustifiable cause. if he failed to pay the price unless granted a longer period w)in w)c to pay.

*eason why udicial or notarial act not required; (ersonal things do not generally 5eep a stable

price in the mar5et, any delay in their disposal may preudice the vendor.

Actions for 0reach of contract of sale of goods

Article 687. Actions availa0le to vendorwhen there is breach of contract of sale on the part ofthe vendee; (PDR". Action for payment of the price of the goods L00M. Action for damages due to wrongful neglect and refusal to accept and pay for the goodsL01M. Action for rescission if buyer has repudiated the contract or has manifested his inability toperform his obligation L0=M

Actions availa0le to the vendee, in case of breach by the vendor (SDR"

. Action for specific performance in case of failure of the vendor to deliver the goods L0DM. Action for damages for breach of warranty but accepting the goods L0M. Action for rescission for breach of warranty where the vendee may validly refuse acceptance ofthe goods, or even if the goods had already been received, he may return them L0 par. /M

Article 68. Action for collection of price, availa0le in the follo+ing cases; (!PR". "hen the ownership of the goods has passed to the buyer and he wrongfully neglects orrefuses to pay for the price according to the terms of the contract. "hen the price is payable irrespective of delivery or transfer of title, on a certain day and thebuyer wrongfully neglects or refuses to pay such price.

:efense of Buyer; 7e may establish the fact that the seller has at anytime before udgment,manifested his inability not to comply with the contract

. "hen the goods cannot readily be resold for a reasonable price and the buyer refuses toreceive the goods when offered for delivery e2cept when 01 par. / is applicable $there is noticeof stopping the contract%, with notification that the seller is holding them as bailee for the buyer

Article 68. Damages for nonacceptance of goods.

Measure of damages$. As a rule; estimated loss directly and naturally resulting in the ordinary course of events fromthe buyerFs breach $no available mar5et%

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. "hen there is available mar5et; IdifferenceJ between contract price and mar5et or current priceat the time when the goods ought to have been accepted or if not time has been fi2ed at the timeof refusal $#f there are special circumstances establishing pro2imate damages of a differentamount than the IdifferenceJ described then liability is based on the pro2imate damages%(ro2imate :amages; refer to damages other than unrealiCed profits

#e!udiation of the contract or notice of sto!!ing the contract such as in the case of asale where goods are to be manufactured"Buyer here shall be liable for the cost of;

. labor performed. e2penses for materials used before receiving the notice of repudiation for stoppage. unrealiCed profits

Article 68E. )hen seller ma% rescind contract in case there is no deliver% %et. "hen buyer repudiated the contract. "hen the buyer has manifested his inability to perform his obligations. "hen the buyer has committed a breach of the contract

Notice must be given to the buyer to totally rescind the contract.

Article 68:. Remed% of 0u%er in Contract to deliver specific goods ; 'pecific (erformance

w)o giving the seller option to retain the goods on payment of damages.

Article 688. Remedies of 0u%er +hen seller commits 0reach of +arrant%.. #ecou!ment+whereby the buyer accepts the goods but he sets up against the seller thereduction or e2tinction of the purchase price.. 'ction for damages+whereby the buyer may $a% accept the goods but w) damages or $b%refuse to accept the goods for the breach of warranty but also with damages.. #escission+whereby the buyer see5s the cancellation of the sale and as a consequencethere will be restoration on both sides.

MMSituations +hen 0u%er cannot choose or elect rescission (;NR". #f he *nows of the breach of warranty when he accepted the goods w)o protest. #f he fails to notify the seller w)in a reasonable time of the election to rescind

. #f he fails to return or offer to return the goods to the seller in substantially the same conditionas they were at the time the ownership was transferred to him.

#-tinguishment of Sales

Art. 6


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b. 7e shall shoulder the e2penses of the contract and other legitimate payments made bythe buyer.

c. 7e shall pay the value of the necessary and useful e2penses made on the thing incurredby the buyer

d. 7e shall comply with other stipulations agreed upon.e. 7e shall return the price of the sale

Characteristics of Conventional Redemption K#AR RPRLa. #t begins to e-istat the time of the perfection of the contract. $#t becomes a mere promise

to sell if stipulated upon after the sale had been consummated%b. #t is an accidental stipulationbecause it is a right created by the partiesc. #t is reciprocalwhen the right to redeem is e2ercised. $both vendor and vendee has

obligations with each other%d. #t gives rise to a real rightwhen properly registered because it affects third persons.e. #t is potestativeas its e2ercise depends upon the sole will of the vendor.f. #t is a resolutor% conditionbecause when it is fulfilled, the ownership of the vendee over

the thing is e2tinguished

PAC3! D# R#3R! SA vs. !R3'A'#

PAC3! D# R#3R! SA !R3'A'#

Ownership is consolidated in the vendee ifvendor does not repurchase w)in time agreedupon

9ailure of mortgagor to pay his obligations ontime does not deprive him of his interest in theproperty

No obligation on the part of the vendee toforeclose

4ortgagee must foreclose if he wants to securea perfect title

>endor has no more right to redeem aftere2piration of period to redeem

4ortgagor may redeem before foreclosure andeven after, w)in one year from registration ofthe sale in e2tra-udicial foreclosure. #n udicialforeclosure redemption may be made beforeconfirmation of the sale by the court.

>endee may alienate property 4ortgagee cannot alienate property

>endee becomes automatically the owner incase of vendorFs failure to redeem

4ortgagee does not automatically becomeowner, there must be foreclosure sale first

>endee is entitled to reimbursement fornecessary and useful e2penses

4ortgagee is not entitled to reimbursement forimprovements he made

Art. 6


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. Any money fruits or other benefits received thereafter by the vendee are considered interestson the loan./. #f the vendor does not redeem on time the remedy of the vendee is to foreclose the mortgage.

Art. 6


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Art. 66@$?oint Pacto de Retro Sale 0% Co!+ners or Co5eirs of an 4ndividedmmova0le.

3ach &o-Owner)&o-7eir can e2ercise right of redemption with respect to their share

Art. 66/+#n the case referred to in Art. 1, vendee ma% demand that all the vendors orcoheirs come to an agreementupon the repurchase of the whole thing, if they failed to do so

vendee cannot be compelled to accept partial redemption.

Art. 667$Separate Sales of Shares of Coo+ners of an undivided immova0le. 3ach vendor may e2ercise their right of redemption independently and the vendee

cannot compel any of them to redeem the whole property

Art. 66$f the vendee dies and propert% is left to several heirs , the action for redemptioncan only be brought to each of them independently with respect to their share, whether or not theproperty is still undivided or already partitioned.

Art. 66$!0ligations of the 9endor a Retro if he desires to redeema. *eturn to the vendee the price of the saleb. 7e shall shoulder the e2penses of the contract and other legitimate payments made by

the buyer.c. 7e shall pay the value of the necessary and useful e2penses made on the thing incurred

by the buyer

Art. 66E$Rule in case there is no agreement on the sharing of the fruits of the propert%.. #f there are fruits at the time of the sale and the vendee paid them, he shall be reimbursed

by the vendor.. "here there are no fruits at the time of the sale but there are e2isting at the time of

redemption, the vendee shall be entitled to the fruits gathered for one year rec5oned from the lastanniversary of the date of the effectivity of the contract of sale.

Art. 66:$3he vendor +ho recovers the thing shall receive it free from all charges ormortgagesconstituted by the vendee, but shall respect the lease contract constituted on theproperty in good faith and in accordance with the customs of the place.

'A& R#D#P3!N (668"--is the right to be subrogated upon the same terms and conditions stipulated in the contract, inthe place of one who acquires a thing by purchase or dation in payment, or by any othertransaction whereby ownership is transmitted by onerous title.

Art. 1E+A co-owner of a thing may e2ercise the right of redemption when the shares of all theother coo+ners or an% of them are sold to a / rdperson. #f the price of alienation is grosslye2cessive, redemptioner shall pay only a reasonable price.

--#f two or more co-owners desire to e2ercise right of redemption they may only do so inproportion to their share.

Art. 6@6$Redemption 0% ad=acent o+ner of rural lands. #e;uisites$ 8#'/O:. The adacent lands involved must be rural land.. The rural land alienated and to be redeemed must not e2ceed one hectare in area. The alienation must be made in favor of a third person, not in favor of another adacent owner/. The two lands involved must not be separated by broo5s, drains, ravines, roads and otherservitudes for the benefit of other estates.0. The vendee or grantee must already be an owner of a rural land. #f he does not own any,redemption is not allowed.

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#f two or more adoining owners desire to e2ercise the right of redemption at the same time, theone with a smaller area shall be preferred. #f both have same area, the one who first requested.

Art. 6@@+Applicability; Piece of 4r0an &and +hich is so small and so situated that a maorportion cannot be used for any practical purpose w)in a reasonable time, having bought merelyfor speculation and is about to resold.

peculationmeans buying or selling with e"pectation of profiting by a rise and fall in price.

*ights recogniCed by Article 1.6. Right of Preemption+the right of an adacent owner to purchase the property before it

is sold to a third person or before the proected sale to a rdperson is consummated.@. Right of Redemption+the right of an adacent owner to redeem the property after the

sale had been perfected and consummated.

Preemption Redemption

Arises before sale Arises after sale

No *escission because no sale as yet e2ists There can be rescission of the original sale

The action is directed against the prospectiveseller

Action is directed against the buyer

Preference when two or more owners of adoining lands wish to e2ercise the right ofredemption or pre-emption; To the owner whose intended use is best ustified.

Art. 6@/$Period of &egal Preemption or Redemption. 4ust be e2ercised within E days from the notice in writing by the prospective

vendor. The deed of sale e2ecuted by the vendor is not registered if not accompanied by an

affidavit that he has given the required written notice. The right of redemption of co-owners is superior to the right of adoining owners.

nstances of &egal Redemption under the Civil Code (C54RC". 'ale of a co-owner of his share to a stranger $1E%. 'ale of an heir of his hereditary rights to a stranger $EDD%. 'ale of adacent small urban lands bought merely for speculation $1%/. 'ale of adacent rural land not e2ceeding one hectare $1%0. "hen a credit or other incorporeal right in litigation is sold $1/%

nstances of &egal Redemption under special la+s (35#?A". *edemption in ta2 sales. *edemption of homesteads. A right of redemption in cases of e2tra-udicial foreclosures/. An equity of redemption in cases of =udicial foreclosures0. *edemption by an agricultural tenant of land sold by the landowner

ASS'N#N3 !F CR#D3S AND !35#R NC!RP!R#A& R'53S

'ssignment of 3redit0an agreement whereby credits, rights or actions pertaining to a person1called assignor2 are transferred by him to another 1called assignee2 either onerously orgratuitously who ac&uires the power to enforce the same against the debtors.

@ature of (ssignment of 5redits and other incorporeal rights: 'as all the elements of a contract ofsale: 1)2 consent 142 b


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.istinction between 3ontract of ale and 'ssignment of 3redits

Basis Contract of Sale Assignment of Credits

Obect (roperty &redit, incorporeal rights or rights of action

4anner of :elivery of Obect #t need not be through publicinstrument

#t must be through a publicinstrument $10%

'ubect obligated The whole world A definite third person

Ownership when transferred Transfer of ownership neednot be upon delivery of thething. The parties may agreethat ownership be transferredonly after full payment $/=D%

Ownership is transferred upondelivery of the documentsevidencing the credit orincorporeal rights

&onsideration #t is always a requisite #t is not always a requisite.Action may be maintained bythe assignee based on his titleeven if there is noconsideration.

.istinction between .ation in Payment and 'ssignment of 3redits

Basis Dation in Pa%ment Assignment of Credits

Nature #t is an alienation of property of a debtor in satisfaction of adebt in money

The alienation of credits orrights, need not be insatisfaction of debtorFs debt

Obect :eterminate property &redits, incorporeal rights or rights of action

3ffect Obligation is e2tinguished Obligation is not e2tinguished

&onsent of debtor is not necessary for the assignment. 7e is therefore released from

the obligation if he pays the creditor before having 5nowledge of the assignment $11% 'cope of Assignment; All accessory rights, such as guaranty, mortgage, pledge or

preference $1=%

Art. 6@: )hat the Assignor of the Credit )arrants> (#&S". The e2istence of the credit at the time of the assignment. The legality of the credit unless he sold the thing as IdoubtfulJ, meaning, he is not sure of thevalidity of his acquisition of the thing sold which fact he has disclosed to the assignee. The solvency of the debtor, if e2pressly stipulated or if the insolvency of the debtor was prior tothe sale and of common 5nowledge

Scope of &ia0ilit% in case of 0reach of +arrant%. #n good faith; Assignor shall pay $a% consideration of price which he received from theassignee8 $b% e2penses of the contract $c% other legitimate e2penses occasioned by theassignment. #n bad faith; 'ame liabilities as in above but with damages

Art. 6@8 Duration of the &ia0ilit% of the Assignor in 'ood Faith (in case there is noagreement". One year from the date of the assignment of the credit if the period of payment of the credit hasalready e2pired. One year after maturity of the credit if the period of payment has not yet e2pired

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Art. 6/< Sale of nheritance (5ereditar% Rights" +ithout specification of things.--'eller shall only be answerable for his character as an heir. 7e warrants the fact of his heirshipin the estate of the decedent. #f it turns out that he is not an heir, then he is liable for the breach ofwarranty.

Sale of 5ereditar% Rights$presumes the e2istence of a contract or deed of sale between theparties)aiver of 5ereditar% Rights$a mode of e2tinction of ownership, where there is intentionalrelinquishment of a 5nown right with 5nowledge of its e2istence and intention to relinquish it infavor of other persons who are co-heirs in the succession

&umpSum Purchase of the +hole of certain rights, rents or products (6/6">endor warrants the legitimacy of the whole of the rights, rents or products but not the

various parts of which the whole is composed of.32ception; #f the vendee is evicted from the whole or the part of the greater value $more

than half% of the credits in which case warranty stays.

Art. 6/@+#f vendor profited from the fruits or receivedanything from the inheritance sold hemust restore it by paying the vendee, unless there is a contrary stipulation.

Art. 6//+Charges and de0ts on the estate paid 0% the vendormust be reimbursed by thevendee, unless there is a contrary stipulation.

Assignment of Credit or right in &itigation. (6/7" debtor is given the right to e2tinguish the obligation by reimbursing the assignee; (P?"

a. The price paid for the credit or rightb. #nterest on the said price from the time the day it was paidc. ?udicial costs incurred by the assignee

"hen is credit or right in litigation? 9rom the time the complaint concerning the same is

answered. (rescriptive (eriod; E days from the date the assignee demands payment from debtor

#-ceptions to the Right of #-tinguishment 0% the de0tor (6/" Assignments or sales made to; (CCP"

a. A co-heir or co-owner of the right assignedb. A creditor in payment of his creditc. The possessor of a tenement or piece of land which is subect to the right in litigation

assigned.

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