ATENEO DE MANILA LAW SCHOOL

Rockwell Center, Makati City

LAW on SALES
REVIEW
By:

CESAR L. VILLANUEVA, B.S.C., C.P.A., LL.B., LL.M., FAICD, D.J.S.

 GENERAL PRINCIPLES
DEFINITION (Art. 1458)

PARTIES OBLIGATIONS

(1) TO TRANSFER
OWNERSHIP

SELLER
SUBJECT
Real Obligations
MATTER

(2) TO DELIVER
SALE CONSENT POSSESION

Meeting of Minds
Real Obligation

BUYER (3) TO PAY

PRICE
3
ESSENTIAL CHARACTERISTICS OF SALE:
NOMINATE
vs. Innominate

PRINCIPAL vs. Accessory vs. Prefaratory

CONSENSUAL
vs. Solemn vs. Real

BILATERAL/
vs. Unilateral
RECIPROCAL
ONEROUS vs. Gratuitious

COMMUTATIVE vs. Aleatory

TITLE vs. Mode

4
 SALES versus DONATION
CONSENSUAL SOLEMN
(i.e., 4th Requisite of
Form for validity)

ONEROUS/ GRATUITOUS
COMMUTATIVE
(i.e., Pure Liberality as
consideration)

ESSENCE: BOTH INVOLVE THE TRANSFER OF

OWNERSHIP/POSSESSION OF SUBJECT
MATTER

5
 SALES versus BARTER:
BARTER IS SALE, BUT WITH THE PRICE BEING REPLACED WITH AN OBLIGATION
TO TRANSFER OWNERSHIP/POSSESSION OF
ANOTHER SUBJECT MATTER

THEREFORE: BARTER GOVERNED BY LAW ON SALES

BUT: NOT COVERED BY STATUTE OF FRAUDS

6
SALES versus DACION EN PAGO:
DACION IS PROCESS OF EXTINGUISHMENT OF PRE-EXISTING OBLIGATION
(CONTRACTS)

(a) There must be delivery of subject matter in lieu of an pre-

existing obligation;
(b) There must be difference between prestation due and what is
give in substitute;
(c) There must be a clear meeting of minds that the pre-existing
obligation is extinguished by reason of the prestation
substituted.
Lo v KJS Eco. Formwork System Phil., Inc.,
413 SCRA 182 (2003)

DACION NOVATES THE ORIGINAL CONTRACTUAL RELATIONS INTO A FULLY

EXECUTED SALE

ESSENTIALLY: DACION GOVERNED BY LAW ON SALES

7
 SALES vs. CONTRACT FOR PIECE-OF-WORK:
K for Piece-of-Work: Service is the Subject Matter

Ineluctably, whether the contract be one of sale or one

for a Piece of Work, a transfer of ownership is involved
and a party necessarily walks away with an object.
Commission of Internal Revenue v. Court of Appeals, 271 SCRA 605 (1997)

Although there is the primary obligation to

pay fee (or price), the main motivation is the
reputation, skill, mastery of contractor.
Engineering & Machinery Corp. v. Court of Appeals, 252 SCRA 156
(1996)

BUT: THERE CAN BE NO CONTRACT FOR PIECE-OF-WORK FOR

PAST SERVICE RESULTING IN THE CREATION OF THE OBJECT
(ALWAYS A SALE)
8
 SALES vs. AGENCY TO SELL/BUY

REPRESENTATIVE
AGENCY
FIDUCIARY Essentially revocable
Fruits and of principal

NOT PERSONNALY LIABLE FOR THE OBLIGATION

CREATED BY THE SALE CONTRACT

AGENT NOT OBLIGED TO PAY THE PRICE

DOES NOT ASSUME THE RISKS OF OWNERSHIP TO

THE OBJECT OF SALE
9
 SALES vs. AGENCY TO SELL/BUY Contd

THEREFORE:
AGENT is deemed to be Seller/Buyer when
contracted to assume Risks and Obligations contrary
to his representative/ fiduciary role:

(a) HE ASSUMES OBLIGATION TO PAY THE PRICE

RISKS OF LOSS
(b) SUBJECT MATTER INSURABLE INTEREST
MAINTENANCE

10
 SALE versus LEASE:

LEASE ESSENTIALLY INVOLVES THE TEMPORARY

ENJOYMENT OF POSSESSION OF THE SUBJECT MATTER

FEW INSTANCES: TREATED AS SALE ON INSTALLMENTS

WHEN LEASE STRUCTURED IN SUCH A
WAY AS TO AVOID APPLICATION OF THE
RECTO LAW

11
 PARTIES TO A SALE
(The Essential Element of CONSENT)
GENERAL RULE:
All Parties Having Capacity to Contract Can Be
Valid Parties To a Sale
EXCEPTIONS:
(a) Minors, Demented, Deaf-Mutes Sale is Voidable
- Purchase of Necessaries
- Emancipation
(b) Spouses (Art. 1490)
- Sales to Third Parties Sale by One Spouse Void
- Sales to Each Other Void
Except: When marriage governed by Complete
Separation of Property Regime
By Pre-nuptials
By Judicial decree
12
OTHER RELATIVE DISQUALIFICATIONS (Art. 1491)
Guardian Wards
Agent Principal
Except: When granted express power to
buy principals property
Administrator/Ex
ecutor Estate under administration
BUT NOT: Purchase of Inheritance Rights

Government property under their

Public Officers
jurisdiction
Judges/Justices/Cour Property falling in their jurisdiction
t Officers
Lawyers Clients property in litigation
Except: Contingency fee arrangement
13
SUBJECT MATTER
(OBLIGATION to Transfer Ownership and Deliver Possession)

vs. Impossible things

1. POSSIBLE THING
vs. Illicit
2. LICIT

3. DETERMINATE vs.
Non-Determinable
DETERMINABLE GENERICS

RATIONALE: Transfer of Ownership/Possession of the Subject

Matter is the ESSENCE of SALE

Obligation should therefore not be illusory

To comply with the Obligatory Force principle in
Contract Law
14
 PRICE & OTHER CONSIDERATION
(The Obligation to Pay)

1. REAL/TRUE vs. FALSE vs. SIMULATED

(Reformation) (Void)

2. Money or its Equivalent vs. PURE vs. NOMINAL

VALUABLE CONSIDERATION LIBERALITY CONSIDERATION

3. CERTAIN
vs. UNASCERTAINABLE
ASCERTAINABLE

4. MANNER OF PAYMENT vs. UNASCERTAINABLE

RATIONALE:
Must comply with Obligatory Force principle in Contract
Law
Must meet Onerous and Commutative characteristics of
SALE
15
 STAGES IN LIFE OF SALE
NEGOTIATION

Covers the period from the time the prospective contracting parties
indicate interest in the contract up to the time immediate before the
contract is perfected.
PERFECTION

Takes place upon the concurrence of the essential elements of the Sale
which are:
the meeting of the minds of the parties
as to the object of the contract
upon the price.
CONSUMMATION

It begins when the parties perform their respective undertaking under

the perfected contract of sale, culminating in the extinguishments thereof.

Jovan Land, Inc. v. CA, 268 SCRA 160 (1997)

San Miguel Properties Philippines, Inc. v. Huang, 336 SCRA 737 (2000)
16
 POLICITACION STAGE
Invitations to make Offers (Proposals)
OFFERS
ACCEPTANCES
AGENCY TO SELL/TO BUY
OPTION CONTRACTS
RIGHTS OF FIRST REFUSAL
AGREEMENTS TO ENTER INTO SERIES OF SALES
MUTUAL PROMISES TO BUY AND SELL
(Contracts to Sell of the First Type)

17
 RULES ON OFFERS:
1. Offer is at the complete will of Offeror, who may destroy
it at will prior to acceptance
2. Will disappear or lapse upon the happening of the
condition or period placed upon it
3. When floated unconditionally, will be extinguished
through the passage of reasonable time
4. Cannot be accepted partially or even substantially
Counter-offer extinguishes original Offer
5. Legal effect of acceptance is taken only from point of
view of Offeror
Offeror may still extinguish Offer at any time before he has
knowledge of Acceptance
6. Only a certain Offer when met by an Absolute Acceptance
will give rise to a valid SALE.

18
 CERTAIN OFFER
(a) CONTAINS A CLEAR PROMISE TO SELL/TO BUY
(b) COVERS A SUBJECT MATTER THAT IS:
Possible thing
Licit
Determinate or Determinable

(c) COVERS A PRICE OR CONSIDERATION

Real
Valuable
Certain or Ascertainable
With Manner of Payment/Performance
agreed upon

19
 ABSOLUTE ACCEPTANCE

(a) NO CONDITION OR AMENDMENT OF THE

TERMS OF THE OFFER

(b) MAY CLARIFY

(c) BUT NEVER TOUCH ON THE

TERMS/COVERAGE OF SUBJECT MATTER
AND TERMS/COVERAGE OF PRICE

20
 OPTION CONTRACT:
ACCEPTANCE of OFFER to give on Option to Buy/to Sell

SUBJECT MATTER:
Option or Privilege to Sell/ Purchase:

AN OBJECT: AT A PRICE:
- Possible - Real
- Licit - Valuable
- Determinate/ - Certain/
Determinable Ascertainable

CONSIDERATION: Anything separate and distinct from Price

21
 Ang Yu Asuncion v. Court of Appeals
238 SCRA 602 (1994)

1. If no separate consideration, Option Contract void, but

may constitute certain Offer which can be withdrawn by
Offeror, but if accepted before withdrawal would give
rise to a valid Sale (Sanchez v. Rigos doctrine)

2. If withdrawal of option/offer whimsical or arbitrary,

could give rise to damage claim under Art. 19 of Civil
Code
3. When there is separate consideration, an Option
Contract deemed perfected:

(a) If exercised within option period, gives rise to Sale,

which can be enforced by specific performance

22
 Ang Yu Asuncion v. Court of Appeals contd

(b) Would be a breach of the Option Contract, for Offeror to

withdraw the offer during the agreed period, but
withdrawal destroys nevertheless the Option

(c) But if, however, Optioner-Offeror withdraws Offer even

during option period before its acceptance (i.e.,
exercise):

Optionee-Offeree may not sue for specific

performance on the Sale since it has failed to reach
its own perfection stage
Optioner-Offeror, however, renders himself liable for
damages for breach of option

23
RIGHT OF FIRST REFUSAL
ESSENCE: OFFEROR BOUNDS HIMSELF TO FIRST OFFER SUBJECT
MATTER TO OFFEREE FOR SALE

CONDITION: IN THE EVENT OFFEROR EVER DECIDES TO SELL IT

Possible thing

SUBJECT MATTER Licit

Determinate/Determinable

PRICE: THAT WILL THEN (HAPPENING OF CONDITION) BE AGREED

UPON
24
DOCTRINES ON RIGHTS OF FIRST REFUSAL
Ang Yu Asuncion v. Court of Appeals

Generally, RFRs would be none contracts, for lack of cause

or consideration, or failure to agree the valid Price for the
expectant contract
Merely innovative juridical relation
RFR
Cannot be enforced by specific performance
Not being a Contract, it lacks essence of consensuality,
obligatory force or mutuality
Breach allows recovery of damage based on Art. 19 principle
of Abuse of right

25
 DOCTRINES ON RFR contd
Equatorial Realty Dev., Inc. v. Mayfair Theater
264 SCRA 483 (1996)

When RFR attached to a valid principal contract (e.g. Lease),

its enforcement takes its vitality from the obligatory force of
the principal contract

Such RFR, when breached may be enforced, at the Price at

which Subject Matter sold to Third Party

The Third-Party Buyers purchase may be rescinded under

accion pauliana, i.e., entered into in breach and in fraud of
Optionees contractual right

26
 DOCTRINES ON RFR contd
Paraaque Kings Enterprises v. CA
268 SCRA 727 (1997)

RFR is complied with by first offering the Subject Matter

to the Optionee and negotiating for a Sale
There is no obligation to reach a sale, obligation
is to negotiate in good faith

Only when negotiations do not ripen into a Sale, can

Subject Matter be offered to Third-Party Buyer, but at
same price and terms asked of the Optionee

Otherwise, must re-offer under new terms to Optionee

27
 AGREEMENTS TO ENTER INTO FUTURE SALE OR SERIES
OF SALES:

ESSENCE: Obligations to do To enter into a Contract

of Sale
(1) DISTRIBUTION/ SUPPLY AGREEMENT
An Agreement to enter into a series of
Contracts of Sale
- National Grains Authority v. IAC, 171 SCRA 131 (1989)
- Johannes Schuback v. Court of Appeals, 227 SCRA 719 (1993)

(2) MUTUAL PROMISES TO BUY AND TO SELL

(CONTRACTS TO SELL)

28
 MUTUAL PROMISES TO BUY AND SELL
(CONTRACTS TO SELL)

1. AGREEMENTS TO ENTER INTO CONTRACT OF SALE UPON

HAPPENING OF THE CONDITIONS
Essentially, contains Obligations to do: to enter into a
Sale
2. CONDITIONAL CONTRACT OF SALE WHERE THE BILATERAL
OBLIGATIONS TO BUY AND SELL HAVE BEEN AGREED UPON, BUT
SUBJECT TO SUSPENSIVE CONDITION
Condition usually is the full payment of the price

29
 PERFECTION STAGE
PERFECTION HAPPENS WHEN A CERTAIN OFFER HAS
BEEN MET BY AN ABSOLUTE ACCEPTANCE

THE ONLY POINT IN TIME TO DETERMINE THE VALIDITY OR

INVALIDITY OF A CONTRACT OF SALE

Birth sets the essence of the Sale

ESTABLISHES THE CONTRACTUAL PRINCIPLES OF:

CONSENSUALITY
MUTUALITY OR OBLIGATORY FORCE
RELATIVITY

30
 FORM OF SALE
GENERALLY: None, because Sale is consensual contract

FOR ENFORCEABILITY: STATUTE OF FRAUDS

1. Sale which by its terms is not to be performed
within one (1) year.

2. Sale of Movables, at least P500

3. Sale of Immovables, at any price

Must be in writing signed by the party sought to

be bound
31
FORM OF SALE contd
Memo must contain Description of:
Possible thing
(a) SUBJECT MATTER Licit
Determinate/De
terminable
real
(b) PRICE valuable
certain/ascertainable
manner of payment provided
(c) SIGNED BY THE PARTY SOUGHT TO BE CHARGED

Exception: Electronic Document

OR PARTIALLY EXECUTED (Estoppel)
OR WAIVER OF ADDUCEMENT OF ORAL EVIDENCE AT TRIAL

32
FORM OF SALE contd

What Constitutes Partial Execution?

Subject Matter

(a) Performance Must Price

Touch Upon
Cannot Cover Other
Consideration

(b) Must Involve/Compromise Party Sought to be

Charged

33
FORMS THAT VOID CONTRACT OF SALE:
1. SALE OF REALTY THROUGH AGENT:
AGENTS AUTHORITY MUST BE IN WRITING

OTHERWISE:

SALE VOID: - EVEN IF DEED OF SALE IN WRITING and/or

NOTARIZED
- EVEN IF THERE HAS BEEN PARTIAL/ FULL
PAYMENT
- EVEN IF THERE HAS BEEN DELIVERY OF
SUBJECT MATTER
- EVEN IF SALE REGISTERED

34
SALES OF IMMOVABLES
1. PRIVATE DOCUMENT NEEDED TO BE ENFORCEABLE BETWEEN PARTIES

EXCEPT: PARTIAL EXECUTION/WAIVER

2. MUST BE IN A PUBLIC INSTRUMENT

-TO BIND THE PUBLIC
-TO BE REGISTRABLE WITH REGISTRY OF DEEDS

3. FOR REAL ESTATE, MUST BE REGISTERED TO BE VALID AND BINDING

AGAINST THE WORD
- Authority of Agent must be in writing VOID
- Bound by actual possession situation, otherwise not in
good faith
35
 CONSUMMATION STAGE

(5) EXTINGUISHMENT
(3) REMEDIES
SPECIFIC PERFORMANCE CONVENTIONAL
(1) PERFORMANCE REDEMPTION (SALE A
DELIVERY OF
RESCISSION RETRO)
SUBJECT MATTER DOUBLE SALES RULE EQUITABLE
PAYMENT OF PRICE MORTGAGES
SUBDIVISION LOTS &
LEGAL REDEMPTION
CONDO UNITS RULES
RECTO LAW
MACEDA LAW (4) CONDITIONS AND
WARRANTIES
(2) RISK OF LOSS EFFECTS OF CONDITIONS
EXPRESS WARRANTIES
IMPLIED WARRANTIES
36
OBLIGATIONS OF SELLER
1. TO PRESERVE THE THING WITH DILIGENCE OF A GOOD FATHER OF A
FAMILY
2. TO DELIVER THE SUBJECT MATTER
3. To DELIVER FRUITS, ACCESSORIES AND ACCESSIONS
4. To COMPLY WITH WARRANTIES

OBLIGATIONS OF BUYER
1. TO PAY THE PRICE
2. TO ACCEPT DELIVERY OF SUBJECT MATTER

37
 DELIVERY OF SUBJECT MATTER
TRADITION AS THE MODE TO
TRANSFER OWNERSHIP
- Actual or Physical Delivery
- Constructive Delivery

Fulfillment of the Primary

MAGIC OF Obligation of the Seller
TRADITION

Transfer Ownership/ Possession to

the Buyer
38
DOCTRINES ON CONSTRUCTIVE DELIVERY
EXECUTION OF PUBLIC INSTRUMENT
- No Contrary Stipulation/ Intention
- Seller Must Have Control
- Passage of Reasonable Time

EXCEPTION: WHEN BUYER TAKES THE RISK

Produces the Same Magic of Actual

Delivery
 CONSTRUCTIVE DELIVERY
CONSTITUTUM POSSESORIUM
TRADITIO BREVI MANU
TRADITIO LONGA MANU OR SYMBOLIC DELVERY

Public Instrument
DELIVERY FOR Transfer/Negotiation of the Title Evidences
INTANGIBLES the Intangible
Enjoyment of Rights and Privileges with the
consent of the Seller
DELIVERY THROUGH CARRIER
- FAS
- FOB
- CIF
DOCUMENTS TO TITLE

40
RULES ON DOUBLE SALES UNDER ART. 1544
1. FOR MOVABLES:

First to Possess, in good faith

Oldest Title, in good faith
Then: First in time, priority in rights

2. FOR IMMOVABLES:

First to Register, in good faith

First to Possess, in good faith
Oldest Title, in good faith
Then: First in time, priority in rights

41
 REQUISITES FOR ART. 1544 TO APPLY
Cheng v. Genato, 300 SCRA 722 (1998)

(a) The two (or more) sales transactions must constitute valid
Sales;
(b) The two (or more) sales transactions must pertain to
exactly the same Subject Matter;
(c) The two (or more) Buyers at odds over the rightful
ownership of the Subject Matter must each represent
conflicting interests; and
(d) The two (or more) Buyers at odds over the rightful
ownership of the Subject Matter must each have bought
from the very same Seller

Consolidated Rural Bank (Cagayan Valley), Inc. v. CA, 448

SCRA 347 (2005)
42
 EFFECTS OF ART. 1544 REQUISITES

Not applicable where one of the Sales is Void

Not applicable to Contracts to Sell

Not applicable if first sale is the Subject Matter and the second
sale is the redemption right to the Subject Matter

43
DOCTRINES ON ART. 1544 DOUBLE SALES RULES

(a) Rules under Art. 1544 are addressed to the Second Buyer, who is mandated to
do positive things if he hopes to win at all

First Buyer wins by being first (first in time) and does not need the
benefits of Art. 1544

Carbonell v. CA, 69 SCRA 99 (1976)

Uraca v. CA, 278 SCRA 702 (1997)
Consolidated Rural Bank (Cagayan Valley), Inc. v. CA, 448
SCRA 347 (2005)

44
 DOCTRINES ON ART. 1544 contd

(b) First Buyer wins by virtue of greater doctrine of

first in time, priority in rights
(c) Second Buyer must register his purchase while in
good faith if he hopes to win:
(d) First Buyer, who is always in good faith, when he
registers ahead, wins became second buyer in
hopeless
(e) Even if Second Buyer was first to possess in good
faith, the subsequent registration by First Buyer
prevails

Taedo v. CA, 252 SCRA 80 (1996)

45
 DOCTRINES ON ART. 1544 contd

(f) Knowledge of the First Buyer of the second sale does not adversely affect First
Buyer, nor does it constitute registration in favor of the Second Buyer

(g) However, knowledge of the Second Buyer of the first sale, would place him
not only in bad faith, but would constitute registration in favor of the First
Buyer

Cruz v. Cabana, 129 SCRA 656 (1984)

46
DOCTRINES ON ART. 1544 contd

(h) It seems that Second Buyer must have paid in full the Price to gain the
benefit under Art. 1544, as the Court defines the meaning of good faith
to include having paid full value

Heirs of Aguilar-Reyes v. Spouses Mijares, 410 SCRA 97 (2003)

Tanongon v. Samson, 382 SCRA 130 (2002)
Balatbat v. CA, 261 SCRA 128 (1996)
Agricultural and Home Extension Dev. v. CA, 213 SCRA 536 (1992)

47
 GLOBAL RULES ON DOUBLE SALE FOR REAL ESTATE

I. First to Register, in Good Faith and for Value, his

Purchase of Land registered under the Torrens System
wins, for registration is the Operative Act (Does not
matter whether he is First or Second Buyer)

II. For Unregistered Land, as between a conventional prior

purchase, and a second purchase at public auction, the
first Conventional Buyer wins, since the Buyer at public
sale is bound by the provisions of the Rules of Court that
says he only takes whatever is the remaining title of the
judgment debtor.

48
GLOBAL RULES ON DOUBLE SALE contd

III. The Rules of Double Sale under Art. 1544 shall apply, only
when the requisites under Cheng v. Genato are present, as
follows:

1. First to Register in good faith

But this can only apply to unregistered land,
because Rule I applies to registered land.
2. First to Possess in good faith, or
3. Oldest Title, in good faith

IV. First in time, priority in rights applies last

49
 SALE AND DELIVERY BY NON-OWNER
GENERAL RULE: Nemo Dat Quod Non Habet

SPECIAL RULES:
1. Sale and Delivery, with subsequent acquisition of title
by owner (Art. 1434), ipso jure transfers title to Buyer
2. Sale by Co-Owner
- particular portion
- whole property

3. Estoppel on the Part of the True Owner (Art. 1426)

50
SALE AND DELIVERY BY NON-OWNER contd

3. Chain of Title Theory under the Torrens System

4. Sales by Court Authority

5. Sales in Merchant Stores

6. Sales by One Having Voidable Title Prior to Annulment

7. Sale under Documents of Title

51
 RULES FOR DETERIORATION, FRUITS AND IMPROVEMENTS

RULES HAVE NO APPLICATION IS SUBJECT MATTER IS

MERELY DETERMINABLE (Art. 1263)

ROMAN LAW DOCTRINE: Buyer bears the consequences of

Deterioration, but benefits from the Fruits
and Improvements

Arts. 1480, 1163-1262

Arts. 1189, 1537 and 1538
52
 RULES WHEN SUBJECT MATTER LOST:

1. BEFORE PERFECTION: Res Perit Domino

Roman v. Grimalt, 6 Phil. 96 (1906)

2. AT TIME OF PERFECTION: Seller (Arts. 1493 and 1494)

Sale is rendered inefficacious

53
 SUBJECT MATTER LOST: contd

3. AFTER PERFECTION BUT BEFORE DELIVERY

Arts. 1164, 1189, and 1262(

General Rule: For Goods, risk borne by Seller under Res perit
domino rule
Chrysler Phil. v. CA, 133 SCRA 567 (1984)
Union Motor Corp v. CA, 361 SCRA 506 (2001)

Loss by Fault of a Party (Arts. 1480, 1504, 1538)

LOSS BY FORTUITOUS EVENT: Two Schools of

Thought

Arts. 1480, 1163, 1164, 1165

Arts. 1504, 1538, and 1189

54
 SUBJECT MATTER LOST: contd

4. AFTER DELIVERY: BUYER BEARS RISK, UNDER Res Perit Domino

EXCEPT: When retention of Possession by Seller for purpose of securing

payment of the Purchase Price

Art. 1504
Song Fo & Co. v. Oria, 33 Phil. 3 (1915)
Lawyer's Coop v. Tabora, 13 SCRA 762 (1965)
Lawyer's Coop v. Narciso, 55 O.G. 3313)

55
 REMEDIES FOR CONTRACTS OF SALE
1. REMEDIES OF UNPAID SELLER OF GOODS

Possessory lien (Arts. 1526-1529, 1503, 1535)

Stoppage in transitu (Arts. 1530-1532, 1535, 1636[2])

Special Right of Resale (Art. 1533)

Special Right to Rescind (Art. 1534)

56
2. RECTO LAW: SALES OF MOVABLES ON INSTALLMENTS

(a) Meaning of Installment Sale Levy v. Gervacio, 69 Phil. 52 (1939)

(b) Contracts to Sell Movables Not Covered Visayan Sawmill Co., Inc. v. CA,
219 SCRA 378 (1993)

(c) Nature of Remedies of Unpaid Seller

Remedies under Art. 1484 are not cumulative, but

alternative and exclusive.
Borbon II v. Servicewide Specialists, Inc., 258 SCRA 634 (1996)

Seeking a writ of replevin consistent with all three

remedies
Universal Motors Corp. v. Dy Hian Tat, 28 SCRA 161 (1969)

57
 RECTO LAW: contd
(d) REMEDY OF SPECIFIC PERFORMANCE: No bar to full recovery
Tajanglangit v. Southern Motors, 101 Phil. 606 (1957)

Even when it is mortgaged property that is

sold on execution.
Southern Motors v. Moscoso, 2 SCRA 168 (1961)

Even with replevin and recovery of the subject

property, the action may still be for specific
performance.
Industrial Finance Corp. v. Ramirez, 77 SCRA 152 (1977)

58
 RECTO LAW: contd

(e) NATURE OF REMEDY OF RESCISSION

Inherent Barring Effect of Rescission

Surrender of mortgaged property not
equivalent to rescission.
Vda. de Quiambao v. Manila Motors Co., Inc.,
3 SCRA 444 (1961)
Stipulation on non-return of payments is valid
provided not unconscionable.
Delta Motor Sales Corp. v. Niu Kim Duan,
213 SCRA 259 (1992)

59
 RECTO LAW: contd
(f) REMEDY OF FORECLOSURE

(i) Third Party Mortgage

Ridad v. Filipinas Investment, 120 SCRA 246 (1983)

(ii) Assignor-Assignee; Financing Transactions

Zayas v. Luneta Motors, 117 SCRA 726 (1982)

When seller assigns his credit to another, the

assignee is likewise bound by the terms of the
Recto Law.
Borbon II v. Servicewide Specialists, Inc., 258 SCRA 634 (1996).

60
 RECTO LAW: contd

(iii) H-V Barring Effects of Foreclosure

Foreclosure on the chattel mortgage prevents further action on

the supporting real estate mortgage.
Cruz v. Filipinas Investment & Finance Corp.,23 SCRA 791 (1968)
Borbon II v. Servicewide Specialists, Inc., 258 SCRA 634 (1996)

(iv) Amounts Barred from Recovery

Macondray & Co. v. Eustaquio, 64 Phil. 446 (1937)
(v) Perverse Buyer
Filipinas Investment & Finance Corp. v. Ridad, 30 SCRA 564 (1969)

61
 RECTO LAW: contd
(g) PURPORTED LEASE WITH OPTION TO BUY:
Contracts purporting to be leases of personal property with option
to buy, when the lessor has deprived the lessee of the possession or
enjoyment of the thing. (Art. 1485)

When purported Lessor takes possession of

subject movable, it is treated legally as a foreclosure
and the barring effects applicable to foreclosure
remedy, not rescission, are given application.
Vda. de Jose v. Barrueco, 67 Phil. 191 (1939)
Filinvest Credit Corp. v. CA, 178 SCRA 188 (1989)
U.S. Commercial v. Halili, 93 Phil. 271 (1953)
H.E. Heacock v. Bantal Manufacturing, 66 Phil. 245 (1938)
Manila Gas Corp. v. Calupita, 66 Phil. 747 (19 38)
Vda. de Jose v. Barrueco, 67 Phil. 191 (1939)

62
 3. MACEDA LAW: SALES OF RESIDENTIAL REALTY ON INSTALLMENTS
(R.A. 6552)

(a) Role of Maceda Law

Lagandaon v. CA, 290 SCRA 463 (1998)

(b) Transactions Covered

The formal requirements of rescission under

the Maceda Law apply even to contracts entered
into prior to its effectivity.
Siska Dev. Corp. v. Office of the President, 231 SCRA 674 (1994)

BUT SEE: Peoples Indl and Comm. Corp. v. CA, 281 SCRA 206 (1997)

63
 MACEDA LAW contd
The Maceda Law makes no distinctions between option and sale
which under P.D. 957 also includes an exchange or attempt to sell, an option of
sale or purchase, a solicitation of a sale or an offer to sell directly.
Realty Exchange Venture Corp. v. Sendino, 233 SCRA 665 (1994)

Curiously: No application to Contract to Sell because said law

presupposes the existence of a valid and
effective contract to sell a condominium.
Mortel v. KASSCO, Inc., 348 SCRA 391, 398 (2000)

64
 MACEDA LAW contd
Pursuant to Art. 1253 of Civil Code, in a contract involving
installments with interest chargeable against the remaining
balance of the obligation, it is the duty of the creditor-seller to
inform the debtor-buyer of the interest that falls due and that is
applying the installment payments to cover said interest.
Otherwise, the creditor cannot apply the payments to the
interest and then hold the debtor in default for non-payment of
installments on the principal.
Rapanut v. CA, 246 SCRA 323 (1995)

(c) How Cancellation of Contract Can Be Effected:

Active Realty & Dev. Corp. v. Daroya, 382 SCRA 152 (2002)

65
 MACEDA LAW contd
OTHER RIGHTS GRANTED TO BUYER

(a) To sell/assign his rights to another person

(b) To reinstate contract by updating account during
grace period, before actual cancellation of contract
(c) To pay in advance installments or in full unpaid
balance of Price any time without interest and have
same annotated in title
Any stipulation in any contract entered into
contrary to the provisions of the Law, shall be null
and void. (Art. 7)

66
4. OTHER REMEDIES ON SALE OF REAL ESTATE

(a) ANTICIPATORY BREACH (ART. 1591)

(b) RESCISSION ON SALE ON NON-RESIDENTIAL REALTY ON

INSTALLMENTS (Arts. 1191 and 1592)

(c) SEC. 23 AND 24, PRES. DECREE 957

67
 CONTRACTS TO SELL
Versus

CONDITIONAL CONTRACTS OF SALE

Art. 1458 Defines a Sale to covered both Absolute and Conditional

Both Contracts are usually bound by same condition: Full payment of the Price

Both Contracts are consensual, onerous, commutative, and cover bilateral

obligations

68
 K TO SELL VS. K OF SALE contd

Power to Rescind is inherently Judicial

Rescission requires a positive act

Non-fulfillment of Condition ipso jure destroys contract

Substantial Breach Relevant to Contract of Sale, Irrelevant to Contracts to Sell

69
 K TO SELL VS. K OF SALE contd

1. InContract to Sell Ownership if Reserved by Seller, while

in a Contract to Sell ownership transfers to Buyer upon
delivery.

Ergo: K to Sell must have express reservation of ownership

To execute a formal Deed of Sale

Only receipt of payment evidences sale
Seller retained original titles

70
 K TO SELL VS. K OF SALE contd

2. Rescission of Contract to Sell is a matter of right upon non-happening of the

condition

Ergo: K to Sell must have express right to rescind the contract upon
default of the Buyer

A written notice of cancellation must be served upon

Buyer even when Contract to Sell
UP v. Delos Angeles, 35 SCRA 103 (1970)

71
 CONDITIONS versus WARRANTIES
Power Commercial and Industrial Corp. v. CA
274 SCRA 597 (1997)

(a) Condition goes into root of existence of obligation, whereas

warranty goes into performance of such obligation, and in fact
may constitute an obligation itself;
(b) Condition must be expressly stipulated by parties, while
warranty may form part of the obligation or contract by
provision of law, without previous agreement; and
(c) Condition may attach itself either to the Obligations of Seller,
while warranty, express or implied, relates to the Subject
Matter itself or to the obligations of Seller as to Subject
Matter of the sale.

72
CONDITIONS AND WARRANTIES contd

Failure to comply with condition imposed upon perfection

of the contract results in failure of a contract, while the failure
to comply with a condition imposed on the performance of an
obligation only gives the other party the option either to refuse
to proceed with sale or waive the condition.
Laforteza v. Machuca, 333 SCRA 643 (2000)

In a Sale with Assumption of Mortgage, the assumption

of mortgage is a condition to the sellers consent so that
without approval by the mortgagee, no sale is perfected. In
such case, the seller remains the owner and mortgagor of the
property and retains the right to redeem the foreclosed
property.
Ramos v. CA, 279 SCRA 118 (1997)

73
CONDITIONS AND WARRANTIES contd

A. EXPRESS WARRANTIES (Art. 1546)

(a) Must be an affirmation of fact or any promise by the seller
relating to Subject Matter of the sale;
(b) The natural tendency of such affirmation or promise is to
induce Buyer to purchase the thing; and
(c) Buyer purchases the thing relying on such affirmation or
promise thereon.

The law allows considerable latitude to sellers

statements, or dealers talk; and experience teaches that
it is exceedingly risky to accept it at its face value.
Ramos v. CA, 279 SCRA 118 (1997)

74
CONDITIONS AND WARRANTIES contd

B. IMPLIED WARRANTIES (Art. 1547)

1. SELLER HAS RIGHT TO SELL

2. WARRANTY AGAINST EVICTION

Seller must be summoned in the suit for eviction at the

instance of the buyer (Art. 1558), and be made a co-
defendant (Art. 1559); or made a third-party defendant.
Escaler v. CA, 138 SCRA 1 (1985)
Canizares Tiana v. Torrejos, 21 Phil. 127 (1911)
J.M. Tuazon v. CA, 94 SCRA 413 (1979)

75
 CONDITIONS AND WARRANTIES contd

3. WARRANTY AGAINST NON-APPARENT SERVITUDES

4. WARRANTY AGAINST HIDDEN DEFECTS

The stipulation in a contract of lease with option to

purchase (which it treated as a sale of movable on
installments) that the buyer-lessee "absolutely releases
the lessor from any liability whatsoever as to any and
all matters in relation to warranty in accordance with
the provisions hereinafter stipulated," was held as an
express waiver of warranty against hidden defect.
Filinvest Credit Corp. v. CA, 178 SCRA 188 (1989)

76
 CONDITIONS AND WARRANTIES contd
Nutrimix Feeds Corp. v. CA
441 SCRA 357 (2004)

A hidden defect is one which is unknown or could not have been

known to the buyer. Under the law, the requisites to recover on
account of hidden defects are as follows:

a. Defect must be hidden;

b. Must exist at the time the sale was made;
c. Must ordinarily have been excluded from the contract;
d. Defect, must be important (render the thing unfit or considerably
decreases fitness);
e. Action must be instituted within statute of limitations.

The remedy against violation of warranty against hidden defects is

either to withdraw from the contract (accion redhibitoria) or to demand a
proportionate reduction of the price (accion quanti minoris), with damages
in either case.

77
Investments & Dev., Inc. v. CA, 162 SCRA 636 [1988]
 CONDITIONS AND WARRANTIES contd

5. REDHIBITORY DEFECTS OF ANIMALS

a. Sale of a Team
b. Animals Sold at Fairs or Public Auction
c. Sale of Animals with Contagious Diseases
d. Sale of Unfit Animals

6. IMPLIED WARRANTIES IN THE SALE OF GOODS

a. Warranty as to Fitness or Quality
b. Sale of Goods by Sample

7. ADDITIONAL WARRANTIES FOR CONSUMER PRODUCTS (Arts. 68, Consumer

Act of the Philippines, R.A. 7394).

78
 CONDITIONS AND WARRANTIES contd

C. EFFECTS OF WARRANTIES
D. EFFECTS OF WAIVERS
G. BUYER'S OPTIONS IN CASE OF BREACH OF WARRANTY

79
 EXTINGUISHMENT OF SALE
SALE EXTINGUISHED BY SAME MODES APPLICABLE TO ALL
CONTRACTS
Arts. 1231, 1600

REDEMPTION IS A MODE OF EXTINGUISHMENT UNIQUE TO SALES:

CONVENTIONAL REDEMPTION: SALE WITH RIGHT

TO REPURCHASE
LEGAL REDEMPTION

80
 CONVENTIONAL REDEMPTION
(SALE WITH A RIGHT TO REPURCHASE)

NATURE OF RIGHT TO REPURCHASE:

Reserved by Seller at the point of Perfection.
Art. 1601
Villarica v. CA, 26 SCRA 189 (1968)

Even though found in a separate instrument

Torres v. CA, 216 SCRA 287 (1992)
Claravall v. CA, 190 SCRA 439 (1990)

81
 CONVENTIONAL REDEMPTION contd

Its Validity is Tied to the Validity of the Contract of Sale

to which appended.
Nool v. Court of Appeals, 276 SCRA 149 (1997)

When Sale Covered by Deed, Right a retro may be

proved by parol evidence.
Mactan Cebu Intl Airport Authority v. Court of Appeals,
263 SCRA 736 (1996)

82
 RIGHT A RETRO versus OPTION CONTRACT
(A) Not separate contract, but must (A) Generally principal contract, but may
be part of main Contract of be appended in another contract
Sale valid

(B) Right to Redeem does not (B) Option requires consider-ation

need separate consideration separate and distinct of the Price in
order to be valid

(C) Maximum Period for exercise (C) Period of Option may be beyond
of Right of redemption 10 years
cannot exceed 10 years

(D) Right of repurchase requires in (D) Option may be exercised by

addition the tender of the mere notice to Offeror
amount mandated, including
consignation when tender not
possible
83
 SALIENT MATTERS ON RIGHT OF
REDEMPTION

(a) PERIOD OF REDEMPTION:

When no Period agreed upon: 4 years

When Period agreed upon: cannot exceed 10
years
When Period of Non-Redemption Stipulated
Anchuel v. IAC, 147 SCRA 434 (1987)
Tayao v. Dulay, 13 SCRA 758 (1965)

84
 SALIENT MATTERS ON RIGHT OF REDEMPTION contd

Pendency of Action Tolls Redemption Period

Ong Chua v. Carr, 53 Phil. 975 (1929)

Non-Payment of Price Does Not Affect Running of

Redemption Period
Catangcatang v. Legayada, 84 SCRA 51 (1978)

85
 SALIENT MATTERS contd

(b) HOW REDEMPTION EFFECTED:

Only tender of payment is sufficient.

Legaspi v. CA, 142 SCRA 82 (1986)
Consignation is not required after tender is refused.
Mariano v. CA, 222 SCRA 736 (1993)

But when tender not possible, consignation should be

made.
Catangcatang v. Legayada, 84 SCRA 51 (1978)

86
 SALIENT MATTERS contd

Simply by Filing Judicial Action

Lee Chuy Realty Corp. v. CA, 250 SCRA 596 (1995)
Seller returning to Buyer:
Price of the sale
Expenses of contract, and any other legitimate payments made by reason of
the sale
Necessary and useful expenses made on the thing sold
ART. 1616

87
 SALIENT MATTERS contd

When Redemption Not Made, Buyer a retro

automatically acquires full ownership.
Oviedo v. Garcia, 40 SCRA 17 (1971)

HOWEVER:
In real property, consolidation shall not be
recorded in the Registry of Property without a
judicial order, after the seller has been duly
heard.
Article 1607

If Seller proves the transaction a sale a retro, he is given a

period of 30 days from finality of judgment to repurchase.
Solid Homes v. CA, 275 SCRA 267 (1997).

88
 EQUITABLE MORTGAGE
DEFINITION AND ELEMENTS

(a) The contract entered into is denominated as a Sale (absolute or a

retro); and
(b) Real intention was to secure an existing debt by way mortgage

Molina v. CA, 398 SCRA 97 (2003)

89
 EQUITABLE MORTGAGE contd

RATIONALE OF EQUITABLE MORTGAGE PRINCIPLE

Prevent circumvention of law on usury and rule against pactum

commissorium, i.e. against a creditor appropriating the mortgage property.
To end unjust or oppressive transactions or violations in connection with
a sale or property.
Spouses Misea v. Rongavilla, 303 SCRA 749 (1999).
Matanguihan v. CA, 275 SCRA 380 (1997)
Lao v. CA, 275 SCRA 237 (1997)

90
 RULINGS ON EQUITABLE MORTGAGE
Badges of Equitable Mortgage in Art. 1602 Apply both to sale a retro
and to a contract purporting to be an absolute sale.
Tuazon v. CA, 341 SCRA 707 (2000)
Zamora v.CA, 260 SCRA 10 (1996)

Parol evidence is competent and admissible in support of allegation of

equitable mortgage arrangement.
Mariano v. CA, 220 SCRA 716 (1993)

91
 Pactum Commissorium principle does not apply:

(a) When security for a debt is also money in form of time

deposit
Consing v. CA, 177 SCRA 14 (1989)
(b) To an agreement between Lender and Borrower which
provides that in the event Borrower fails to comply with
the new terms of payment, the agreement shall
automatically operate to be an instrument of dacion en
pago without need of executing any document to such
an effect.
Solid Homes, Inc. v. CA, 275 SCRA 267 (1997)

92
 RULINGS ON EM contd

CONTRA: P/N stipulation that upon makers failure to pay

interests, ownership of property would
automatically be transferred to Payee and the
covering deed of sale would be registered, is in
substance a pactum commissorium in violation of
Art. 2088.
A. Francisco Realty v. CA, 298 SCRA 349 (1998)

A pactum commisorium sale is void, registration and obtaining of new title by

apparent buyer would also be void.
A. Francisco Realty v. CA, 298 SCRA 349 (1998)

93
 REMEDIES UNDER EQUITABLE MORTGAGE SITUATIONS

Apparent seller can seek reformation of instrument (Art. 1605).

An action for consolidation of ownership (in case presented as sale a retro)
would be void, and proper remedy of mortgagee-buyer is to file appropriate
foreclosure of the mortgage in equity.
Briones-Vasquez vs. CA, 450 SCRA 644 (2005).

94
 REMEDIES IN EM contd

Additional 30-day Period of Redemption is allowed under Art. 1606, in

event courts should find the sale was not equitable mortgage, provided:

(a) Honest belief that it was equitable mortgage supported by

convincing evidence, such as badges under Art. 1602, or
consignation during trial of the amount of the alleged
loan
Abilla v. Gobonseng, 374 SCRA 51 (2002)
Vda. de Macoy v. CA, 206 SCRA 244 (1992)

95
 LEGAL REDEMPTION
DEFINITION AND RATIONALE:
Privilege created by law for reasons of public policy.
For benefit and convenience of the redemptioner, to afford him a way
out of what might be a disagreeable or inconvenient association into which he
has been thrust.
Intended to minimize co-ownership.
Fernandez v. Tarun, 391 SCRA 653 (2002)
Basa v. Aguilar, 117 SCRA 128 (1982)

96
LEGAL REDEMPTION contd
PERIOD OF LEGAL REDEMPTION BEGINS:
30 DAYS FROM WRITTEN NOTICE
Written notice must cover perfected sale
Art. 1623
Spouses Doromal v. CA, 66 SCRA 575 (1975)
Notice must be given by seller; and that notice given by buyer or even by the
Register of Deeds are not sufficient.
Francisco v. Boiser, 332 SCRA 305 (2000)
Butte v. Manuel Uy and Sons, Inc., 4 SCRA 526 (1962)
Salatandol v. Retes, 162 SCRA 568 (1988)

97
 LEGAL REDEMPTION contd

Seller furnishing of the copies of deeds of sale to co-owner would be sufficient.

Distrito v. CA, 197 SCRA 606 (1991)
Conejero v. CA, 16 SCRA 775 (1966)
Badillo v. Ferrer, 152 SCRA 407 (1987)

Notice to minors may validly be served upon parents even when not judicially
appointed since beneficial to the children.
Badillo v. Ferrer, 152 SCRA 407 (1987).

98
 LEGAL REDEMPTION contd

Deemed complied when co-owners signed Deed of Extrajudicial Partition

embodying disposition of part of the property owned in common.
Fernandez v. Tarun, 391 SCRA 653 (2002)
Filing of ejectment suit or collection of rentals against a co-owner
dispenses with need for written notice.
Alonzo v. IAC, 150 SCRA 259 (1987)

99
 INSTANCES OF LEGAL REDEMPTION
(a) Among Co-heirs (Art. 1088)

A co-heir cannot exercise the right of redemption

alone.
De Guzman v. CA, 148 SCRA 75 (1987)

No legal redemption for sale of the property of the

estate.
Plan v. IAC, 135 SCRA 270 (1985)

Written notice to other co-owners deemed inutile by

fact that ebuyers took possession of property in full view
of other co-owners.
Pilapil v. CA, 250 SCRA 560 (1995)

Notice given by city treasurer will not suffice.

Verdad v. CA, 256 SCRA 593 (1996)
100
 INSTANCES OF LEGAL REDEMPTION contd
(b) Among Co-owners (Art. 1620)

Right of legal redemption arises only when shares

of other owners are sold to a third person, and not
to another co-owner
Fernandez v. Tarun, 391 SCRA 653 (2002)

Registration of the sale does not estop a co-owner

Cabrera v. Villanueva, 160 SCRA 627 (1988)

Notice required to be given to co-owners must be

in writing; and redemption by co-owner redounds to
the benefit of all other co-owners.
Mariano v. CA, 222 SCRA 736 (1993)

101
 INSTANCES OF LEGAL REDEMPTION contd

No written notice required to co-owner who acted as active intermediary

in the consummation of the sale.
Distrito v. CA, 197 SCRA 606 (1991)
Redemption by co-owner, even when he uses his own fund, inures to the
benefit of all the other co-owners.
Annie Tan v. CA, 172 SCRA 660 (1989)

102
INSTANCES OF LEGAL REDEMPTION contd
(c) Among Adjoining Owners (Art. 1621-1622)

Redemption covers only resale and does not

cover exchanges or barter of properties
De Santos v. City of Manila, 45 SCRA 409 (1972)
Requisite of speculation dropped.
Legaspi v. CA, 69 SCRA 360 (1976)
Does not apply if one adjacent lot is not also rural
land
Primary Structures Corp. v. Valencia, 409 SCRA 371 (2003)

103
 INSTANCES OF LEGAL REDEMPTION contd
(d) Sale of Credit in Litigation (Art. 1634) - 30 days

(e) Redemption of Homesteads (Sec. 119, C.A. 141)

The right to repurchase is granted by law and

need not be provided for in the deed of sale.
Berin v. CA, 194 SCRA 508 (1991).

104
 INSTANCES OF LEGAL REDEMPTION contd

Under the free patent or homestead provisions of the

Public Land Act a period of five (5) years from the date of
conveyance is provided, the five-year period to be
reckoned from the date of the sale and not from the date of
registration in the office of the Register of Deeds.
Lee Chuy Realty Corp. v. CA, 250 SCRA 596 (1995)

For purposes of reckoning the 5-year period to

exercise right of repurchase, the date of conveyance is
construed to refer to date of execution of the deed
transferring the ownership of the land to the buyer.
Mata v. CA, 318 SCRA 416 (1999).

105
 INSTANCES OF LEGAL REDEMPTION contd
(f) Redemption in Tax Sales (Sec. 215, NIRC of 1997)

(g) Redemption by judgment debtor (Sec. 27, Rule 39, Rules of Civil
Procedure)

Period of redemption shall be at any time within

one (1) year from the date of registration of the
certificate of sale, so that the period is now to be
understood as composed of 365 days, unlike the 360
days under the old provisions of the Rules of Court
which referred to 12-month redemption period.
Ysmael v. CA, 318 SCRA 215 (1999)

106
 INSTANCES OF LEGAL REDEMPTION contd
(h) Redemption in Extrajudicial Foreclosure

One (1) year from registration in the Registry of

Deeds on Mortgage (Sec. 6, Act 3135).

(i) Redemption in judicial foreclosure of mortgage

(Sec. 47, General Banking Law of 2000, R.A. 8791).

A stipulation to render the right to redeem defeasible by an

option to buy on the part of the creditor
Soriano v. Bautista, 6 SCRA 946 (1962)

107
 INSTANCES OF LEGAL REDEMPTION contd
No right to redeem from a judicial foreclosure sale,
except those granted by banks or banking institutions
GSIS v. CFI, 175 SCRA 19 (1989).

The one-year redemption period in case of foreclosure

of real estate mortgage is not interrupted by filing of
action assailing validity of mortgage, so that at the
expiration thereof, mortgagee who acquires property at the
foreclosure sale can proceed to have title consolidated in
his name and a writ of possession issued in his favor.
Union Bank of the Philippines v. CA, 359 SCRA 480 (2001)
Vaca v. CA, 234 SCRA 146 (1994)

108
 INSTANCES OF LEGAL REDEMPTION contd
(j) Redemption in Foreclosure by Rural Banks

Land mortgaged to rural bank under R.A. 720, may

be redeemed within two (2) years from date of
foreclosure or from registration of sheriff's certificate of
sale. If mortgagor fails to exercise such right, heirs may
still repurchase within 5 years from expiration of 2-year
redemption period pursuant to Sec. 119 of Public Land
Act (C.A. 141).
Rural Bank of Davao City v. CA, 217 SCRA 554 (1993)
Heirs of Felicidad Canque v. CA, 275 SCRA 741 (1997)

109
 INSTANCES OF LEGAL REDEMPTION contd
(k) Legal Right to Redeem under Agrarian Reform Code

Sec. 12 of R.A. 3844, grants agricultural lessee

right to redeem within 180 days from notice in
writing and at a reasonable price and consideration
Quio v. CA, 291 SCRA 249 (1998)

Redemption right of tenant does not begin to

run without written notice
Springsun Management Systems Corp. v. Camerino,
449 SCRA 65 (2005)

110
END