SALES AND LEASE

CASE DOCTRINES

Dignos vs. CA - A deed of sale is absolute in nature although denominated as a "Deed of

Conditional Sale" where nowhere in the contract in question is a proviso or stipulation to the
effect that title to the property sold is reserved in the vendor until full payment of the purchase
price, nor is there a stipulation giving the vendor the right to unilaterally rescind the contract the
moment the vendee fails to pay within a fixed period.

Artates vs. Urbi - This provision against the alienation or encumbrance of public lands
granted within five years from the issuance of the patent, it has been held, is mandatory; 5 a sale
made in violation thereof is null and void. The execution sale in this case being null and void,
the possession of the land should be returned to the owners,

Heirs of Enrique Zambales vs. CA - The bilateral promise to buy and sell, and the
agency to sell, entered into within five years from the date of the homestead patent, was in
violation of section 118 of the Public Land Law, although the executed sale was deferred until
after the expiration of the five-year- prohibitory period.

Quiroga vs. Parsons Hardware - In order to classify a contract, due regard must be
given to its essential clauses. In the contract in question, there was the obligation on the part of
the plaintiff to supply the beds, and, on the part of the defendant, to pay their price. These are
precisely the essential features of a contract of purchase and sale. These features exclude the
legal conception of an agency or order to sell whereby the mandatory or agent received the
thing to sell it, and does not pay its price, but delivers to the principal the price he obtains from
the sale of the thing to a third person, and if he does not succeed in selling it, he returns it.

Concrete Aggregates vs. CTA and CIR - It is still good law that a contract to make
is a contract of sale if the article is already substantially in existence at the time of the order and
merely requires some alteration, modification or adaptation to the buyer's wishes or purposes. A
contract for the sale of an article which the vendor in the ordinary course of his business
manufactures or procures for the general market, whether the same is on hand at the time or
not is a contract for the sale of goods.

Peoples Homesite vs. CA - "The contract of sale is perfected at the moment there is a
meeting of minds upon the thing which is the object of the contract and upon the price. From
that moment, the parties may reciprocally demand performance, subject to the law governing
the form of contracts." (Art. 1475, Civil Code).

Toyota Shaw, Inc. vs. CA - A definite agreement on the manner of payment of the price
is an essential element in the formation of a binding and enforceable contract of sale. This is so
because the agreement as to the manner of payment goes into the price such that a
disagreement on the manner of payment is tantamount to a failure to agree on the price.

A.A. Addison vs Felix - the execution of a public instruments is equivalent to the delivery
of the thing which is the object of the contract, but, in order that this symbolic delivery may
produce the effect of tradition, it is necessary that the vendor shall have had such control over
the thing sold that, at the moment of the sale, its material delivery could have been made. It is
not enough to confer upon the purchaser the ownership and the right of possession. The thing
sold must be placed in his control. When there is no impediment whatever to prevent the thing

sold passing into the tenancy of the purchaser by the sole will of the vendor, symbolic delivery
through the execution of a public instrument is sufficient. But if there is an impediment, delivery
cannot be deemed effected.

Sampaguita Pictures vs Jalwindor - Ownership is not transferred by perfection of

the contract but by delivery, either actual or constructive. This is true even if the purchase has
been made on credit. Payment of the purchase price is not essential to the transfer of ownership
as long as the property sold has been delivered. Ownership is acquired from the moment the
thing sold was delivered to vendee, as when it is placed in his control and possession.

Ten Forty Realty vs. Cruz - Ownership is transferred not by contract but by tradition or
delivery. Nowhere in the Civil Code is it provided that the execution of a Deed of Sale is a
conclusive presumption of delivery of possession of a piece of real estate. The execution of a
public instrument gives rise only to a prima facie presumption of delivery. Such presumption is
destroyed when the delivery is not effected, because of a legal impediment.

Roman vs. Grimalt If no contract of sale was actually executed by the parties, the loss
of the [thing] vessel must be borne b its owner and not by a party who only intended to purchase
it and who was unable to do so on account of failure on the part of the owner to show proper
title to the vessel and thus enable them to draw up the contract of sale.

Norkis Distributors, Inc. vs. CA - The issuance of a sales invoice does not prove
transfer of ownership of the thing sold to the buyer. An invoice is nothing more than a detailed
statement of the nature, quantity and cost of the thing sold and has been considered not a bill of
sale. In all forms of delivery, it is necessary that the act of delivery, whether constructive or
actual, be coupled with the intention of delivering the thing. The act, without the intention, is
insufficient.

Southern Motors, Inc. vs Moscoso - Article 1484 of the Civil Code provides that in
a contract of sale of personal property the price of which is payable in installments, the vendor
may exercise any of the following remedies: (I) Exact fulfillment of the obligation, should the
vendee fail to pay; (2) Cancel the sale, should the vendee's failure to pay cover two or more
installments; and (3) Foreclose the chattel mortgage on the thing sold, if one has been
constituted, should the vendee's failure to pay cover two or more installments.