UNIVERSITY OF SAN JOSE RECOLETOS School of Law School Year 2017-2018 18Semester ‘COURSE SYLLABUS Course Title: SALES No. of units: 2 units Instructors/Professors: Judge Joseph Stephen A. Ygnacio ‘Atty. Julius Christian Reyes | COURSE DESCRIPTION: ‘This course is a comprehensive study on the provisions ofthe Civil Code on the Contract of Sale. Particularly it will tackle on topics regarding the nature and form of contract of sale, the obligations of the vendor, the vendee, and the parties corresponding remedies in case of breach and warranties. Italso includes topics on the extinguishment ofthe contract of sale, which incorporate the conventional and legal redemptions. This course includes provisions pertaining to the assignment of Credit and contract of lease. Along the way, laws related to sales transactions will be discussed, such as RA 6522, and PD 957, jurisprudence laid down by the Supreme Court and other legal principles governing the contract of sae. [At the end of the course, the students are expected to learn the different provisions of the contract of sale and other related laws, the contract of lease and legal doctrines related thereto. The students are expected to interpret properly the legal provisions ofthe law and apply the said learnings in answering bar questions and legal problems., Ml. TEACHING METHODOLOGY + Lecture-recitation + Case Analysis + Practical Class Analysis ML. GUIDE ON HOW TO USE THE SYLLABUS/OUTLINE. The students are mandated to read and understand the Civil Code provisions assigned on a particular week/session. During the session, the professor will conduct class lecture and recitation. The students are expected to have read the assigned articles intended for that session and have grasped through on the topic/subtopics assigned thereto, Case analysis will be ‘made simultaneously based on the assigned Supreme Court decided cases. IV. COURSE OUTLINE WEEK /SESSION ‘TOPICS /SUBTOPICS READINGS AND OTHER ASSIGNMENTSPreliminary Period, | PWeek 1 |Articles 1458-1468, | J cweek a includes discussion onclass | policies, grading system and class equi sments) CONTRACT OF SALE. Nature and Form ofthe Contract: |. Definition: Contract of Sale b a Concept of contract of Sale Characteristics ofa contract of sale Essential requisites ofa contract of sale Stages in a Contract of Sale Distinction: Contract of Sale, Conditional Sale and Contract to Sell, B. Subject Matter ofthe Contract of Sale be 4 Requisites concerning objects Kinds of lit things Right of vendor to transfer ‘ownership Subject matter must be determinate Sale of things having potential existence. 1. emptio rei sperati 1 emptio spe! —— _Natureand Form of GontractofSale | + Dizon vs. CA:302 SCRA 268 Fule vs. CA 286 SCRA 689 = Cruz vs. Fernando 477 SCRA 173 + Meliza vs. City of lilo 23 SCRA 477 = Recio vs Heirs of Spouses Aguedo ‘and Maria Altamirano,702 SCRA 137, July 2013 Dao Heng Bank vs. Sps Laigo 571 SCRA 434 ‘Alonso vs. Cebu Country Club, Inc. 375SCRA 395° = Puyatvs. Arco 72 Phil 402 (1941) Dignos vs. CA 158 SCRA 375, = Saberon vs. Ventanila, Jr. 722 SCRA 287, 2014. | | | | | + Sibal vs. Valdez, 50 Phil. 522el P. Week 2 Continuation, | Sale of hope or expectancy '& Goods which may be the object h i ofsale Sale of ature goods Sale of undivided interest ina _|- Vda. De Figuracion vs. Figuaracion- thing | Genila, 690 SCRA 495 J. Sale ofan undivided share of speciicmass | i SaleoFhingsbjetton | | | resolutory condition, | pstncuons Sale distinguished from Pec of Work | i, Sale distinguished from Agency to _| -CIR vs. Arnuldos, 159 SCRA199 sell “Gin. £1 6#SCRAS9O, | «| He Siledstingushed from contract of |-Dino ws. CA 359 SCRA St piece of work 4. Sale distinguished from loan Articles 1469-1479 v. Sale distinguished from Lease | Mie Sale distinguished from Dation in, payment and from Gession. | tlk Saledistinguished from barter | | | 1c Price | a Requisites fora valid price | Requisite fora valid Price | b Brfectwhere price xed by |= Mapalo vs. Mapalo 17 SCRA 114 | | third person Bagnas vs. CA 176 SCRA 159 | & Bflect where price notixed by |= Velascovs. CA 51 SCRA439 | third person Formaran vs, Ong 700 SCRA 758 4. Bifect where prices simulated |Effect of gross inadequacy of price in voluntary sales/execution sales £ Effect where price is simulated f Prcconaguendaya | © paral erat |x. Bretotprie tea yon of thocontartng pra |. Brectorttue determine | oe 1 Etec octtuetopey | presen fpr | Il. Perfection of contract of sale Perfection: | antes Atiomotie vs CA230SCRA A Requramentsorperecuon |” 66 2 B. Formalities for Perfection | Dalion vs.CA, Feb. 28, 1990 | € Rulesgmeringsucionses | | D. Distinction: Option Money and | Earnest Money. | Option Money/Option Contract and oe et oe ®. Bistincon Mutual Promise |” Sopanaseittomaccepted "| ~ Linsonssc357 cea 209 | Galotratpomsetotarand | * Sang! Properes Heang Pa Sos) phot rst Resa + CrelarysA302SCRA7I8. | retin “Rumbo: De Roar Dec 10 | ~ Vino ca. 208 sca oo? | “leaps Chr tatPWeek 3 Art 1480-1488; 1504; 1493-1494; 1538 | LL Risk of oss or deterioration ‘A Before Perfection B. Atte time of perfection C Aer perfection but before delivery D.After delivery WV. Form of contract of sale V. Remedies of Vendor in sale of personal property in installments a. Recto Law: Sales of| Movables on installments Remedies provided under Article 1484 Remedy of specific performance 4. Remedy of Rescission € Foreclosure of Chattel Mortgage Constituted on Subject Property VL Lease of personal Property with option to buy. VIL, Expenses for execution and registration VILL Expropriation for public use | Risk ofloss or deterioration Form of Contract of Sale ouswccawsscencod | Paredes vs. Espino 22 SCRA 1000 Maceda Law: Realty Installment Buyer Protection Act (RA 6552) Moldex Realty vs. Saberon, 695 scra 33f, 2013, Gatchalian Realty Ine. vs ‘Angeles, 711 SCRA 163, 2013. Optimum Development Banke vs, Jovellanos, 711 SCRA 548, 2913. Sebastian vs. BP Family Savings Bank, Inc. 739 SCRA 9, 2013.P Week 4 Articles 1489-1492; Articles 1495. 1496; Article 1497-1501 | IX. Capacity to Buy and Sell | capacity to Buy and Sell |. Absolute Incapacity * Calimlim Canullas vs. Fortun 129 | & Reta ncapaciy SCRA 675 | ‘a, Minors, Insane or + Cruzvs, CA 281 SCRA 491; | Demented Persons, Deaf- | - Guardians, Agents and Admin Trust | | mutes Co. vs. Roldan 99 Phil. 392 ’. Sales by and between |= -Macariola vs. Asuncion spouses ‘& Speeifie incapacity mandated by law. X. Obligations ofthe Vendor | | “A. Obligation to Transfer Ownership | Constructive Delivery B. Obligation To Deliver Aviles vs, Arcoga 44 Phil, 924 | a tradition | > Florendo ws. Foo, March 19, 1914 “|b. Typesof delivery: Actua and : | Constructive, Quasi-Traditionae rere | Article 1502-1506 [WEEK 6 Continuation C Ruleon Contracts of Sales or Return and of Sale on Trial or “Approval or Satisfaction D. Effects of Delivery for Movables | a. Bffects of Delivery of Movables: Reservation of Ownership b. Risk of loss (review) E, Sale by a person not the owner F. Sale by one having avoidable tide | PRELIMINARY EXAM Submit case digest Reservation of Ownership Luzon Brokerage vs. Maritime Bidg. 43 SCRA 93 + Midway Maritime and Technological Foundation vs. Castro, 732 SCRA 192, 2014.Midterm — |MWeek 7 | Articles 1507-1520; XI. Documents of Title ‘Definition and Function B. Types of Documents of Title . Negotiation of Negotiable Documents of Title 'D, Warranties of Negotiation and ‘Assignment of Documents of Tile E. Effects when owner ofthe Document ofTlehas molest | tile to the goods |B Rules on Levy/Garnishment of | goods covered by Documents of ‘ileArticles 1521-1524; Articles 1525-1537 M Week 9 Articles 1539-1543 XIL. Delivery of Goods 'A. Rules on Effects of Delivery for Place, time and manner of delivery Movables ‘2 Place, and Time of delivery of |= goods sold | ». Delivery of goods less than or more than the quantity « Delivery to cari B. Rights ofan Unpaid Seller «a. Possessory Lien ». Right of Stoppage in Transitu Right of Resale dd. Right o Rescind the Sale ‘Smith Bell vs. Matti 44 Phil 874 a. Sales of Real Estate with a/ Prices at certain rate per unit/lump statement of its area at the sum rate of a certain price per Unit of measure or number; b._ Sale of real estate for a lump’ sum and not at the rate ofa | certain sum for a unit of} ‘measure or number Del Prado vs. Sps. Caballero, March 3,2010M Week U0 XIU, Double Sales Double Sates: ee ‘A. Rules on Double Sale © Consolidated Rural Bank inte 154 BL Rssential ements for (CAGAYAN VALLEY), ING, 48 CA Applicabil and Hits of Teodoro Cruz. GR. © Purchaser in good Lath ‘No, 182161, January 17,2005 | D. Requisites of prior Registration | ~ Radiowealth Finance Company vs. Paleo G.R, No. 13432 May 20, De Leon vs. Ong, February 2, 2010G.R. No. 170405 Martinez vs. CA, 358 SCRA 38 (2001) Terico and Sanchez vs. , vs, CA Flores and Bareja GR. No. 96306. | August 20, 1993) + Cardente vs. CAand Sps. Rubin, GR, No. 73651, November 27, 1987 | + Lay vs. Spouses Orlando and Manipon, 6.8. No. 147072, May 7, | 2002 | Gabriel vs. Sps. Pablo Mabanta, DBP. G.R. No. 142403 March 26, 2003 + Tanglao vs. Parungao , October 5, 2007, GRNo. 166913, = Payonggayong vs. CA, 430 SCRA 210 (2004) + Rosaraso vs, Soria 699 SCRA 232, 2013 | 191/MWeek 11 Articles 1545: 1547 Review for Midterm Examination MWeek 12 ‘Finals Woek 13 Articles 1548-1860; XIV. Conditions and Warranties ‘Midterm Examination ‘Submission of ease digest, XV. Warranty In Case of Evletions; ‘A. Implied Warranties Against Eviction, B, Warranty in Case of Eviction scl Philippines, Ine vs. Union Bank of the Philippines, 716 SCRA 21, 2014. RA 7394 "Consumer Act” FRA.10642 “aw ac sruencritinne coNsustR PROTACTION INTHE PURCHASE OF BRAND NEWF Weeks 14-1! 5 Articles 1561-1581 [F Week 16 | Articles 1582-1593, | XV Warranty Against Hidden Defects |‘ of,or Encumbrances upon, the A B | | | | | | « | | | xvi, ‘Thing Sold, Conditions Distinctions between conditions and warranties Express Warranties Implied Warranties Implied Warranties in Sale of Goods Obligations ofthe Vendee BAccept Delivery of the Thing Sold nspect the Goods Goods Sold on Installments | | E.Effects of Acceptance of Goods on Seller's Warranty ERefusal to Accepts Goods |o F Week 17 Articles 1594-1509 RA 6552 (Maceda Law) PD 95: Articles 1600-1618 Articles 1619-1623 Xt, Atont or Brn of Corvra of sue of Gon A. Remotes of eer (reach commited the Baer) |. nomediesot bigest Comedy the Sele) ee D, Remedies incase of monies XIX. ENTINGUISHMENT OF SALE ‘Ally the same causes asall other | obligations B.Conventional Redemption Legal Redemption | ‘2. Meaning of Conventional | Redemption. b. When is a contract presumed to be an | equitable mortgage. | ace Law | ro vsCA 194 SCRA 1 | ~Aeive Realy vs, Daroya sz | sens ise, | J+ Noynay scones blker& Development In, 738 SCRA 708, | 2014. diction: HLURB, = Geronimo vs. Calderon, 244 SCRA 564, om + Moran Jr. vs. Office ofthe Pres. 736 SCRA 644, 2014 Redemption Conventional Villarica vs, CA, 26 SCRA 189 + Misterio vs. Cebu State College of Science and Technology, 461 SCRALZ2 Basa vs, Aguilar, 117 SCRA 128 + Avila s. Barabat, 485 SCRA 8:[F Week 18 | Articles 1524-1635 Week 19 Final Examination I, REFERENCES AND MATERIALS XX. Assignment of Credits and Other Incorporeal Rights | | exw | Ri ease or hing | Bese of Worker Serce | | | a. RigusandOblgsionsot ee eee | aes | presto naw Lease "A. Special Provisions for Lease of | | ‘Rural Lands: | Secu ronsonstor Lato | |? isin | | Submit Case Digest | . + Civil Code ofthe Philippines, Book IV, Tile VI —__|‘© Civil Code by: Paras Book V ‘De Leon, Hector and De Leon, Jr, Hector. The Law on Sales, Agency and Credit Transactions. Manila, Philippines Rex Bookstore, 2014 ed, ‘Villanueva, Cesar L. Law on Sales, Manila, Philippines, Rex Bookstore, 2009 ed ‘= Please note that the professors reserve the right toamend and provide additional cases and other reading materials IV. CRITERIA FOR GRADING ‘examinations and class activites, which are divided into two (2) components, t0 ‘Major Examinations include Prelim, Midterm and Final Examinations. igest. Grade is computed as Students will be assessed through series of ‘wit: Major Examinations and Class Standing Activities. Class standing activities include the following: quizzes, graded recitation, attendance and case di follows: Major Examination (70%) [acivty ] Row Score (sample only) _| Equivalent Grade [Prelim [100/100 ~ [10 | Midterm | 100/100 hho a Troosi0o To ‘Average a | Class Standing (30%)E [activity Quizzes i ies are died | | ean, Mer na Fal Graded ae 30 | 10 points per term | pone peter | mana Computation of the Final Grade: Final Grade:= Average Eqivalent Grade for Major Exam * 70% (A) Equivalent Grade for Class Standing * 30% (B) Final Grade = A+B; “Temporary Midterm Grade is based on the average equivalent grade for Prelim and Midterm Major Examinations only. V. COURSE POLICY ‘+ University and School of Law policies are fully implemented in the clas;