RECTO LAW
Sale of personal property in instalment
Does not apply in price payable in straight term ( upon initial payment of
the price, the balance in its entirety is payable as agreed upon)
Remedies are in the alternative:
1. Exact fulfilment (action for specific performance – collection suit)
of the obligation, should the vendee fail to pay;
2. Cancel the sale (action for rescission), should the vendee failed to
pay for 2 or more instalments; or
3. Foreclose chattel mortgage on the thing sold, if one has been
constituted, should the vendee failed to pay for 2 more instalments.
MACEDA LAW
Sale of real estate in instalment, including residential condominium
apartments but excluding industrial lots, commercial buildings and sale to
tenant.
Where the seller has reasonable grounds to fear being left without the price
and without the thing, he may immediately sue for rescission of the sale.
(Sale not in instalment) art. 1590
Remedy of the seller is either sue for fulfilment of the obligation or
rescind the contract with right to claim damages on either side. Art. 1591
Remedies of the buyer and seller:
1. If the buyer has paid less than 2 years instalments:
a. Buyer entitled to a grace period of 60 days from the date the
instalment become due.
b. If buyer fails to pay at the expiration of the grace period, the
seller may cancel the contract within 30 days from the receipt of
the buyer of notice of cancellation or demand for cancellation.
2. If the buyer has paid at least 2 year instalments:
a. Buyer entitled to a grace period of 1 month for every year of
instalment; buyer may exercise such right once every 5 years of
the life of the contract; or
b. Seller may cancel the contract provided that:
 He pays the seller cash surrender value equivalent to 50%
of total payments; after 5 years of payment, an additional
5% every year not to exceed 90% of the total payment;
and
  Furnished the buyer with notice of cancellation.
Cancellation shall be upon the expiration of 30 days from
notice.

If the vendor elected cancellation or rescission of the contract, There is no

recovery of the balance of the price (no deficiency judgement)

If elected foreclosure of chattel mortgage, mortgagee shall have no other

action against the vendor for the recovery of any unpaid balance.

DOUBLE SALE:
1. In sale of personal property:
a. First Possessor in good faith;

2. In sale of real property:

a. First registrant in good faith;
b. First in possession in good faith; or
c. One who presents the oldest title

QUANTITY DELIVERED DIFFERENT FROM QUANTITY CONTRACTED TO SELL

Buyer may:
1. Quantity delivered < Quantity contracted a. Reject them.
b. Accepts or retains the goods delivered
 If the accepted knowing that the seller is not going to perform
his obligation in full, buyer must the price in its contract rate.
 If buyer has used or consumed the thing before he knows that
the buyer will not perform the obligation in full, buyer shall
not be liable for more than its fair value.
c. Reject the whole if the thing is indivisible.
 2. Quantity delivered > Quantity contracted Buyer may:
a. Accept the quantity agree and reject the rest;
b. Accept the whole and paying the price at its contract rate;
c. Reject the whole if the thing is indivisible.

3. Quantity delivered = Quantity contracted but mixed with goods of Buyer may:
different descriptions a. Accept the goods in accordance with the contract and reject the rest
b. Reject the whole if the subject matter is indivisible.

SALE OF REAL ESTATE WITH A STATEMENT OF ITS AREA AT A RATE OF A CERTAIN PRICE PER UNIT OF MEASURE OR NUMBER

The vendor shall deliver the area mentioned in the contract of sale. However, if the actual
area is more or less than the area specified in the contract:
1. Actual area delivered < Area stated in The buyer may:
the contract a. Ask for a proportionate reduction in the
price if the lack in area is less than 1/10
of that stated in the contract, unless the
vendee would not have bought the
thing had he known of its smaller area,
in which case he may rescind;
b. Rescind the sale if the lack in area is
not less than 1/10.
Ex: S sold to B a lot consisting of 1500 sqm at the rate of
1000/sqm.
a. Actual area delivered is only 1400 sqm.
o 1/10 of area agreed upon is 150 sqm
o Lack in area is 100 sqm (1500 – 1400)
B may ask for a reduction in the price
b. Actual area delivered is only 1300 sqm.
o 1/10 of area agreed upon is 150
o Lack in area is 200
B may ask for rescission.
 2. Actual area delivered > Area stated in The buyer may:
the contract a. Accept the area stated in the contract
and reject the rest;
b. Accept the whole and pay for them at
the contract rate;
Actual area delivered 1600 sqm
B may accept the 1500 sqm and reject the 100 sqm
excess. OR accept the whole 1600sqm and pay at
contract rate

3. Actual area delivered = Area stated in The buyer may:
the contract but a part of the
immovable is not of the quality
specified in the contract.
Actual area delivered is 1500 sqm. For 1000/sqm
a. A proportionate reduction in the price BUT 200 sqm of it is priced only at 950/sqm.
if the inferior value of the thing does
not exceed 1/10 of the price agreed o 1/10 of the area greed upon is 150
upon unless the vendee would not have o Inferior value of the thing is 50 ( 1000 -950)
bought the thing had he known of its B may ask for proportionate reduction in the price
smaller area, in which case he may
rescind;
b. Rescind the sale if the inferior value of
the thing exceeds 1/10 of the price
agreed upon

IF THE SALE IS FOR LUMP SUM AND NOT FOR A PRICE PER UNIT OF MEASURE
o there shall be no increase or decrease in the price although there be greater or lesser area
o VENDOR is bound to deliver all that is included within the boundaries stated in the contract.

If vendor failed to deliver: buyer may ask for a proportionate reduction in the price or rescind the contract.