DOUBLE SALES
Requisites: VSCS 1. Valid Sales
2. Same Subject Matter
3. Conflicting Interests
4. Same Seller
Rules on preference Movable Immovable
Article 1544 Owner who is first to possess in good faith a. First to register in good faith
b. No registration-first to possess in
good faith
c. No registration and possession-
Oldest title in good faith
Principle to apply
Sale 1: Occurs when land is not yet registered
First in time, priority in right
Sale 2: done when already registered
General Rule Exceptions
Movable Owner who is first to possess in good faith
Immovable Rule on Preference Sale of Registered Lands-Torrens System
a. First to register in good faith
b. No registration-first to possess in good faith
c. No registration and possession-Oldest title in
good faith
Principle of Prius tempore, Potior Jure Knowledge by the first buyer of the second sale cannot Second buyer first registers in good faith the second sale
First in time, stronger in right defeat the first buyer’s right Xpn to xpn: If 2nd buyer has knowledge of the first sale
Note: This will apply if not all elements of Art.1544 it defeats his right even if he registers first(Bad Faith)
have been met.
Risk of loss Thing is lost when: In an obligation to deliver a generic thing, the loss or
a. Perishes destruction of anything of the same kind does not
b. Goes out of commerce extinguish obligation
c. Disappears,unknown existence or cannot be
recovered.
a. Before Perfection Res Perit Domino 1. Delivery to buyer or to a bailee, and
Note: seller still owns the thing because there is no ownership retained by seller to secure
delivery or transfer of ownership yet performance by the buyer-Buyer’s Risk
2. Delayed delivery thru fault of buyer or seller-
at Fault party’s risk
3. Pursuant to a contract of sale: Delivery is
made to a carrier on behalf of the buyer
b. At the time of perfection Contract is without any effect Partial Loss;buyer may choose:
a. Withdraw contract
b. Demanding the remaining part:pay the
remaining part’s corresponding price in
proportion to the total sum agreed upon
c. After Perfection but before Delivery a. Stipulations in the contract
Absence of Stipulation:
b. Res Perit Creditori: Buyer(XPN)
c. Res perit Domino:Seller (GR)
d. after Delivery Res Perit Domino-Buyer is owner now a. Delivery to buyer or to a bailee, and
ownership retained by seller to secure
performance by the buyer-Buyer’s Risk
b. Delayed delivery thru fault of buyer or seller-
at Fault party’s risk
Recto Law-Remedies
a. Specific Performance(Unpaid Seller) If availed,cannot anymore choose other remedies After choosing SP, becomes impossible to
perform,rescission may be pursued
b. Rescission Deemed choosen:
a. Notice of rescission sent
b. Takes possession of subject matter
c. Files action for rescission
d. Foreclosure Actual foreclosure is necessary to bar recovery of Mortgagor refuses to deliver property to effect
unpaid balance foreclosure;expenses may be recovered
Maceda Law Coverage: Residential Real Estate a. Industrial lots
b. Commercial buildings
c. Sale to tenants under agrarian law
d. Sale of land payable in straight terms
Right to resell: Notice of defaulting buyer Not required Right to resell not based on perishable nature or express
provision of sale
Warranty agains non-apparent servitude Warranty against non-apparent servitude Servitude is recorded in the registry of property
Warranty agains eviction Rescission is not a remedy, because it demands to return Partial Eviction
whatever parties have received. Since, vendee can no
longer restore.it can’t be carried out
Assignment Debtor has the right of legal redemption in sale of credit 1. Sale to co-heir
or incorporeal rights in litigation 2. Sale to co-owner
3. Sale to possessor of property in question
Sale of Co-owner of whole prop prior parition Whole property: Void 1. Subject matter is indivisible in nature
Spiritual share: Valid 2. Consent of co-owners
Sale of co-owner definite portion to partition As to other co-owner: Void 3. Sale of co-owner and doesn’t turn proceeds
Spiritual share: Valid(buyer would have still bought
such knowing circumstances)
Legal Effects of Sale by a non-owner Buyer acquires no better title than seller had 1. Estoppel
2. Recording laws
3. Sale made under statutory power
4. Merchant’s store
Title as to Movable Properties Possession is equivalent to title 1. Owner lost movable
Requisites: 2. Owner is unlawfully deprived
a. Possession Xpns to xpns:
b. Good faith 1. Public sale
2. Good faith acquisition in Auction
Applies Doesn’t applies
Registered lands 1. Unregistered lands
2. Contract to sell
Article 1544
3. One sale is absolute and the other is pacto de
retro(Double sale)
1. Sales of Animals 1. Sales of Registered Land
2. Double Sales
3. Sheriff’s Sales
Caveat Emptor 4. Tax Sales
5. Judicial Sales
6. Warranty hidden defect-Patent defect
7. Sale by non-owner at consummation stage
1st Buyer 2nd Buyer
Purchaser in Good faith Only one who can invoke Cannot invoke
Recto Law Installment sales of Personal Property Contract to sell of Movables
Maceda Law Immovable on installment
Article 1592 Contract of sale Conditional Sale
Remedies When Exercised
a. Ownership has passed to buyer
b. Price Payable on certain day
Unpaid Seller Ordinary 1. Action for Price
c. Goods cannot be resold for reasonable price and
1596 inapplicable
2. Action for Damages Wrongful neglect or refusal by buyer to accept or pay for
thing sold
a. Goods sold without stipulation as to credit
1. Possessory Lien b. Goods sold on credit but term expired
c. Buyer becomes insolvent
Requisites:
a. Insolvent Buyer
b. Sale of goods must be on credit
c. Seller must surrender Negotiable DOT
2. Stoppage in transitu d. Seller bears expense of delivery
e. Seller’s actual possession or notice of claim to
carrier or any in possession
Special
f. Must be in transit
g. Unpaid seller
3. Right to Resell a. Perishable goods
b. Stipulation
c. Buyer in default for unreasonable time
4. Right to Rescind Requisites:
a. Goods not deliver to buyer
b. Buyer repudiated contract of sale
c. Manifested inability to perform obligation
d. Committed substantial breach
a. Disturbed in possession or with reasonable grounds
1. Suspend Payment
to fear disturbance
Immovables 1. Rescind
2. Suspend payment until seller a. Condominium developer fails to comply with
complies obligation
1. Specific Performance a. failure of seller to deliver
1. accept goods & set up breach of a. Breach of seller’s warranty
warranty by way of diminution of
Buyer price
2. accept goods & maintain action
Movables
for damages
3. Refuse to accept goods;damages
4. Rescind, refuse, return & recover
1. Suspend Payment a. Disturbed in possession or with reasonable grounds
to fear disturbance
1. Refuse to proceed with contract
a. Breach of seller’s warranty
2. Proceed and Waive
Ambiguity won Equitable Reformation
mortgage or sale a retro
Owner lost Movable
Recovery without reimbursement
Movable Properties Owner unlawfully deprived
Can recover only after reimbursement Bought at Public sale
Express Warranty Implied Warranty
Definition Any affirmation of fact or any promise by the seller Deemed included in all contracts of sale by operation of
relating to the thing if the natural tendency of such law
affirmation or promise is to induce the buyer to purchase 1. Warranty that seller has the right to sell
the same, and if the buyer purchases the thing relying 2. Against Eviction
thereon 3. Against non-apparent servitude
4. Against hidden defects
5.
Requisites AIR By operation of law
1. Affirmation of fact relating to the subject
matter of sale
2. Induce buyer to purchase
3. Purchase relying thereon
Liability Damages
Prescriptive Period a. Contract Stipulation Differs on each type
b. In the absence of CS:4 years
Non-Applicability ASAP
1. As is and where is sale
2. Second hand
3. Virtue of authority by law
4. Public auction
Waiver Effects 1. Seller in bad faith and there is waiver against
eviction-Void
2. Buyer w/o knowledge of a particular risk
made general renunciation-Not a waiver but
limits the liability of seller
3. Buyer knew the risk of eviction and waived-
seller not liable(Applicbale only against
eviction)
Buyer cannot rescind 1. If he knew of the breach of warranty
2. Failure to return goods in good condition
3. Failure to notify of intent to rescind
Requisites Prescriptive period Remedies XPNs
Seller has right to sell Refers to consummation stage
Eviction JPENS RICE WITH DAMAGES Waiver
1. Final Judgment 1. Return of the value
2. Buyer evicted which the thing sold
3. Basis of eviction is had at the time of
prior sale eviction
4. Seller has been 2. Income or fruits
summoned 3. Costs of the suit
5. No waiver of buyer 4. Expenses
5. Damages, interests and
expenses if made in
bad faith
Partial Eviction:
1. Restitution
2. Enforcement of
warranty against
eviction
Non-apparent servitude IP
1.
Immovable sold is
encumbered with non-
apparent not
mentioned in
agreement
2. Presumed that buyer
would not have
acquired it had he
known
Hidden defects HENNAS a. 6 mos 1. Seller was aware 3. Patent defects or
1. Defect is serious b. 40 days in case of Bear the loss visible
2. Hidden animals Return the 4. Not visible but buyer
3. Exists at time of sale price is an expert
4. Notice to seller Refund 5. Contrary stipulation,
reasonable time expenses seller not aware of
with defects
damages
5. Action for rescission 2. Seller not aware
or reduction proper Return
period price and
6. No waiver of warranty interest
Reimburse
expenses
Perfection stage Consummation Stage
Sale by owner VALID
Sale by non-owner VALID VALID
Sale by seller voidable title Valid Valid
In good faith
For value
Without notice of seller’s defect
of title
