SALES (OUTLINE 2)

Prof. M.I.P. Romero/ 2018

3. PARTIES TO A SALE

a) Consent - meeting of the minds upon the thing and the price
1. SUBJECT MATTER OF SALE -- Art. 1347 (things
and rights) - consent that affects perfection of the contract
Arts.1461 – 1465 - when nonfulfillment of condition prevents perfection of
the contract
DEFINE and give EXAMPLES of the following: - when nonfulfillment of condition affects performance of
- must be licit (1459) the obligation
- illicit per se v. illicit per accidens Review: People’s Homesite v. CA
- within the commerce of man (1347) Romero v. CA
- not impossible (1348) Add: Lim v. CA October 24, 1996
- future inheritance vs. interest in an inheritance (1347) Recio v. Heirs of Spouses
- determinate OR determinable things (1458, 1460; 1349) Altamirano
- generic things (GR 182349; July 24,
- fungible goods (1464) 2013)
- thing having a potential existence (1461)
- emptio rei speratae v. emptio spei
- goods whose acquisition by seller depends upon b) Capacity to Give Consent
contingency (1462) - General Rule - Art. 1489, par.1
- things subject to a resolutory condition (1465)
- acquired under legal or conventional - Absolute incapacity - Art. 1327, 1390
redemption Relate to Art. 1489, par. 2
- property subject to Reserva Troncal (study
concept) - Relative incapacity - Art. 1490 (See Arts. 87, 96, 124,
- future goods (1347; 1462) 194 Family Code)
- undivided interest in a thing (1463) Arts. 1491, 1492
- “nemo dat quod non habet” – (1459 and 1434) ---Rt to
transfer ownership at time of delivery; Exceptions NOTE: Know the RATIONALE for the prohibitions and the
– ( 1505, 1506); Relate to Art. 559 EFFECTS on the legality of the contract
Yu Tek & Co. v, Gonzales GR L- CASES:
9935 Feb.1, 1915 Guiang v. CA 291 SCRA 372
Compana Gen. de Tabacos v. CA 185 SCRA (1998)
284 (1990) Medina v. Coll. Of Int. Rev. GR 15113 (Jan.
Heirs of San Andres v. Rodriguez 337 SCRA 28,1961)
769 (2000)
Pichel v. Alonzo GR L-36902 Ching v. Goyanko, Jr. 506 SCRA 735
Jan. 30, 1982 (2006)
EDCA Publishing v. Santos 184 SCRA Cruz v. CA 289 SCRA 491
614 (1990) (1997)
Tagatac v. Jimenez (cited in Cook v. McMicking 27 Phil. 10 (1914)
EDCA case) Matabuena v. Cervantes 38 SCRA 284
Quijada v. CA 299 SCRA (1971)
695 (1998) Rubias v. Batiller 51 SCRA 120
Sumaya, et al. v. IAC (1973)
Sept. 2, 1991 Fornilda v. Br. 164 Pasig RTC 166 SCRA 281
(1988)
2. PRICE – Arts. 1469 – 1474; Arts. 1355, 1381 (1) (2), 1386 Lao v. Genato 137 SCRA 77
R.A. 8183 w/ c repealed R.A. 529 (1985)
- price certain or capable of being ascertained in money or Maharlika Broadcasting v. Tagle 142 SCRA 553
its equivalent (1986)
- includes manner of payment Paragas v. Heirs of Balacano 468 SCRA 717
- determination / fixing of price (2005)
Tan Tiah v. Yu 67 Phil. 739 Mercado v. Espiritu 37 Phil. 265
Toyota Shaw Inc. v. CA 244 SCRA 320
Fabillo v. IAC March 11, 1991
(1995)
Navarra v. Planters Bank GR 172674;
July 12, 2007

- inadequacy of price in voluntary sales (gen rule and

excptn)
Ong v. Ong 139 SCRA 133 (1985)
Aguilar v. Rubiato 40 Phil. 570 (1919)

- inadequacy of price in involuntary sales (gen rule and

excptn)
PNB v. Gonzales 45 Phil. 693
De Leon v. Salvador GR 31603
Dec. 28, 1970

-absolute and relative simulation of contract (1345)

- false price -- contract valid but subject to
reformation (Art 1359)
- simulated price -- void contract (1471 and 1353)
Heirs of Ureta v. Heirs of Ureta Sept.
14, 2011
Phil. Banking Corp. v. Dy GR
183774; Nov. 14, 2012