Art.
1495 Traditio
Vendor is bound to transfer the ownership of the thing as well -derivative mode of acq. ownership, one who has the right and
as the warrant intention to alienate a corporeal thing transmits it by virtue of a
just title to one who accepts the same
Principal obligations of a vendor
- Transfer ownership ACTUAL DELIVERY OF THING SOLD
- Deliver the thing 1. When deemed made
- Warrant against eviction and hidden defects Actual delivery (placed in the control or possession)
- Take care of the thing, pending delivery, with proper Passing of a movable thing from hand to hand
diligence
- Pay for the expenses related sa deed of sale unless there is 2. Not always essential to passing title
stipulation to the contrary The parties may stipulate when will the ownership of the thing
sold shall pass to the vendee
Care:
-proper diligence of a good father of a family 3. Proof of delivery
-preserve the thing not to transform, alter or alienate the thing Written acknowledgement of a person that actually received the
sold. He can be made for damage or injury thing or good (delivery receipts)
Art. 1496 Art. 1498
Ownership transferred from the moment it is delivered or any If public instrument, execution thereof shall be equivalent
manner signifying delivery Movable property= delivery - keys of the place or depository
TRANSFER OF OWNERSHIP EFFECTED BY DELIVERY General rule:
-execution of public document applies to movable and
1. Ways of effecting delivery immovable property- manner of delivery is also symbolic
- Actual or real delivery
- Constructive or legal delivery Symbolic delivery- only applicable to the when the thing is
- Delivery in any other manner signifying transfer of subject to the control of the vendor
possession to the vendee -Failure to deliver if the vendee cannot enjoy its possession of the
things
2. Intention to deliver -a seller cannot deliver constructively if he cannot deliver actually
-cannot be effected by mere consent
-act of delivery must be done with the intention of delivering the Symbolic tradition
thing sold -parties make use of a token symbol to represent the thing
delivered
3. Delivery to proper person -stored or kept= delivery of a key is equivalent to actual delivery
-delivery may be made to the person or his authorized since it represents the thing
representative
Art. 1499
CONSTRUCTIVE DELIVERY Delivery of movable property may be made by mere consent
- Execution of a public document or agreement by the contracting party
- Symbolical tradition -traditio longa manu (by mere pointing)
- Traditio longa manu Choose by pointing, given thereafter
- Traditio brevi manu
- Traditio constitutum possessorium -traditio brevi manu (tenant to owner) (rent to own)
- Quasi-delivery or quasi traditio Giving something to someone who already has it
Art. 1497 Art. 1500
Thing sold shall be understood as delivered when it is in the -traditio constitutum possessarium (owner to tenant)
control and possession of the vendee -transfer possession but still keeps control (owner to lessee)
Art. 1501 Where the seller’s title only for purpose of security
Incorporeal property, placing of titles of ownership in the 1. Form of B.O.L. not conclusive
possession of the vendee or the use of his rights are considered - The form in which the BOL is taken is not always
to be delivery. conclusive.
Quasi traditio (intangible property) delivery is effected by: 2. Where ownership would have passed but for the form of
- Execution of public document the BOL
- if mode of delivery is not available, placing title of ownership - If the shipper could be perfectly sure that the buyer
in the possession of the vendee would fulfill his obligation, it can hardly be doubted that
- Allowing vendee to use vendors rights as new owners with he would have made a straight consignment to the latter
consent of vendor Where buyer or his agent is consignee but seller retains the
bill of lading
Art. 1502 1. Right to possession of goods as against buyer
Option to return etc… - Deliverable to the order of the buyer or of his agent BUT
sale or return POSSESSION OF THE BILL OF LADING IS RETAINED
- Obligation to accept return BY THE SELLER, THE SELLER THEREBY RETAINS A
- SOLD BUT THE BUYER HAS THE OPTION TO RIGHT TO THE POSSESSION OF THE GOODS AS
RETURN THE SAME TO THE SELLER INSTEAD OF AGAINST THE BUYER
PAYING THE PRICE 2. Effect of retention
- Option to purchase solely depends on the buyer - The buyer will be unable to obtain the goods without the
- Ownership transfer to buyer upon delivery bill. The effect of the retention of bill of lading, closely
Sale on trial or approval analogous to the retention of a lien by the seller after the
- Obligation to transfer ownership property has passed to the buyer.
- purchase only of the goods prove satisfactory to the buyer, it Where bill of lading is sent forward with DRAFTATTACHED
being a condition to the precedent 1. delivery conditional
- title shall continue to be with the seller until the sale by the - When seller draws BOL and BOE to the buyer to secure
buyer’s approval acceptance or payment of the bill of exchange, the title is
- failure to giving notice will constitute sale, depending on the regarded as retained in the seller until the BOE is paid
stipulation 2. Duty of buyer if draft not honored
- The buyer is bound to return the bill of lading if he does
Art. 1503 not honor the BOE
Delivery with carrier 3. Right innocent thirds persons
DELIVERY OF SPECIFIC GOODS SOLD GENERALLY - a purchases in good faith for value of the BOL or goods
PASSES TITLE from the buyer will obtain the ownership in the goods
1. delivery to carrier although the BOE has not been honored. (deliverable to
- delivery to the carrier is deemed to be a delivery to the buyer the buyer or to the order of the buyer)
- if seller consigns, seller give it to bailee, if shipment -
authorized by buyer, ownership is vested in buyer
2. Redelivering by carrier to seller himself
- It indicates that the carrier shall be the bailee for the seller
and ownership will remain with the seller.
Reservation of right of possession or ownership when specific
goods are shipped
General Rule: ownership passes upon delivery, except:
1. Contrary intention appears ny the terms of contract
Seller or his agent is consignee
1. Carrier becomes bailee for seller
- The seller thereby reserves the ownership in the goods and
the carrier is a bailee for him and not the buyer
2. Rights of seller
- Not only retain the goods until the buyer performs his
obligation in the contract, he may even dispose of the same to
third person, but he will be liable to damages but third person
has a better right.
Maceda Law (Republic Act No. 6552), also known as the Realty Installment Buyer Protection Act, is a
Philippine law that protects buyers of real estate properties under installment plans. It was enacted in
1972 and primarily covers residential real estate purchases (excluding industrial lots, commercial
buildings, and sales to tenants covered by agrarian laws).
Key Provisions of Maceda Law:
1. Right to a Refund (If Buyer Has Paid at Least Two Years)
• If the buyer has paid at least two years of installments, they are entitled to:
• A grace period of one month for every year of installment payments made (to settle unpaid
dues without penalty).
• A 50% refund of total payments made if the contract is canceled. (If the buyer has paid more
than five years, the refund increases by 5% per additional year, up to a maximum of 90%.)
2. Right to a Grace Period (If Buyer Has Paid Less Than Two Years)
• If the buyer has paid less than two years, they have a grace period of 60 days from the due
date to pay unpaid installments.
• If they still fail to pay, the seller can cancel the contract after 30 days’ notice.
3. Right to Reinstatement
• The buyer can reinstate the contract (within the grace period) by paying overdue amounts
without additional interest.
4. Right to Sell or Assign
• Buyers can sell or transfer their rights to another party before the contract is canceled.
5. Right to Pay in Advance Without Interest
• Buyers can fully pay the balance before the due date without extra interest.
Importance of Maceda Law:
This law protects real estate buyers from unfair forfeiture of payments and ensures they have fair
treatment and options in case they encounter financial difficulties.
Would you like a specific example or application of the law?
Recto Law is a provision under Article 1484 of the Civil Code of the Philippines, which protects buyers of personal property
(e.g., cars, appliances, and furniture) sold on installment plans. It primarily applies to chattel mortgage sales, where the seller
retains ownership until the full payment is made.
Key Provisions of Recto Law:
If a buyer defaults on installment payments, the seller has three legal options, but they can only choose one:
1. Exact fulfillment of the obligation
• The seller can demand the full payment of all remaining installments.
2. Cancel the sale
• The seller can repossess the item and cancel the contract. However, they cannot demand additional payments
after repossession.
3. Foreclose the chattel mortgage
• If the item is mortgaged, the seller can sell it at a public auction. However, after foreclosure, they cannot ask for
additional payments even if the auction sale does not fully cover the remaining debt.
Importance of Recto Law:
• Protects installment buyers from excessive liabilities.
• Prevents sellers from repossessing the item and still demanding more money from the buyer.
• Ensures fairness in installment sales of personal property.
Would you like an example of how this law applies in real life?
