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Sales Principles

The document contains summaries of various Supreme Court cases related to contracts and property law. The cases discuss the elements required for a valid contract of sale, the importance of registration in cases of double sale, the rules around legal preemption and redemption, what constitutes an equitable mortgage, the obligations of contractors if their work is defective, and other principles like good faith purchase of registered land and validating contracts when possible.

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62 views

Sales Principles

The document contains summaries of various Supreme Court cases related to contracts and property law. The cases discuss the elements required for a valid contract of sale, the importance of registration in cases of double sale, the rules around legal preemption and redemption, what constitutes an equitable mortgage, the obligations of contractors if their work is defective, and other principles like good faith purchase of registered land and validating contracts when possible.

Uploaded by

audy ricardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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STARBRIGHT SALES ENTERPRISES, INC. vs.

PHILIPPINE REALTY
CORPORATION, MSGR. DOMINGO A. CIRILOS, TROPICANA PROPERTIES AND
DEVELOPMENT CORPORATION and STANDARD REALTY CORPORATION

G.R. No. 177936               January 18, 2012

Three elements are needed to create a perfected contract: 1) the consent of the contracting
parties; (2) an object certain which is the subject matter of the contract; and (3) the cause of the
obligation which is established.  Under the law on sales, a contract of sale is perfected when the
seller, obligates himself, for a price certain, to deliver and to transfer ownership of a thing or
right to the buyer, over which the latter agrees. From that moment, the parties may demand
reciprocal performance.

SPOUSES CLEMENCIO C. SABITSANA, JR. and MA. ROSARIO M. SABITSANA


vs. JUANITO F. MUERTEGUI, represented by his Attorney-in-Fact DOMINGO A.
MUERTEGUI, JR.

G.R. No. 181359               August 5, 2013

  Act No. 3344, as amended, which provides for the system of recording of transactions over
unregistered real estate. Act No. 3344 expressly declares that any registration made shall be
without prejudice to a third party with a better right.

NICOLAS P. DIEGO vs. RODOLFO P. DIEGO and EDUARDO P. DIEGO

G.R. No. 179965               February 20, 2013

"[w]here the vendor promises to execute a deed of absolute sale upon the completion by the
vendee of the payment of the price, the contract is only a contract to sell. The aforecited
stipulation shows that the vendors reserved title to the subject property until full payment of the
purchase price."

ROGELIO DANTIS vs. JULIO MAGHINANG, JR.

G.R. No. 191696               April 10, 2013

By the contract of sale, one of the contracting parties obligates himself to transfer the ownership
of, and to deliver, a determinate thing, and the other to pay therefor a price certain in money or
its equivalent. A contract of sale is a consensual contract and, thus, is perfected by mere
consent which is manifested by the meeting of the offer and the acceptance upon the thing and
the cause which are to constitute the contract. Until the contract of sale is perfected, it cannot,
as an independent source of obligation, serve as a binding juridical relation between the
parties. The essential elements of a contract of sale are: a) consent or meeting of the minds, that
is, consent to transfer ownership in exchange for the price; b) determinate subject matter; and c)
price certain in money or its equivalent. The absence of any of the essential elements shall
negate the existence of a perfected contract of sale.

*HOSPICIO D. ROSAROSO, ANTONIO D. ROSAROSO, MANUEL D. ROSAROSO,


ALGERICA D. ROSAROSO, and CLEOFE R. LABINDAO vs. LUCILA LABORTE
SORIA, SPOUSES HAM SOLUTAN and **LAILA SOLUTAN, and MERIDIAN
REALTY CORPORATION

G.R. No. 194846               June 19, 2013

The principle of primus tempore, potior jure (first in time, stronger in right) gains greater
significance in case of a double sale of immovable property. When the thing sold twice is an
immovable, the one who acquires it and first records it in the Registry of Property, both made in
good faith, shall be deemed the owner. Verily, the act of registration must be coupled with good
faith— that is, the registrant must have no knowledge of the defect or lack of title of his vendor
or must not have been aware of facts which should have put him upon such inquiry and
investigation as might be necessary to acquaint him with the defects in the title of his vendor.

ARMANDO BARCELLANO vs. DOLORES BAÑAS, represented by her son and


Attorney-in-fact CRISPINO BERMILLO

G.R. No. 165287               September 14, 2011

The right of legal pre-emption or redemption shall not be exercised except within thirty
days  from the notice in writing by the prospective vendor, or by the vendor, as the case may
be. The deed of sale shall not be recorded in the Registry of Property, unless accompanied by an
affidavit of the vendor that he has given written notice thereof to all possible redemptioners.

JUAN P. CABRERAvs.HENRY YSAAC


G.R. No. 166790 November 19, 2014
As defined by the Civil Code, “[a] contract is a meeting of minds between two persons whereby
one binds himself, with respect to the other, to give something or to render some service.”For
there to be a valid contract, there must be consent of the contracting parties, an object certain
which is the subject matter of the contract, and cause of the obligation which is established.

SPS. FELIPE SOLITARIOS AND JULIA TORDA, petitioners, vs. SPS. GASTON JAQUE
AND LILIA JAQUE

G.R. No. 199852, November 12, 2014

Article 1602(6) of the Civil Code provides that a transaction is presumed to be an equitable
mortgage: (6) In any other case where it may be fairly inferred that the real intention of the
parties is that the transaction shall secure the payment of a debt or the performance of any other
obligation.

OWEN PROSPER A. MACKAY, vs. SPOUSES DANA CASWELL AND CERELINA


CASWELLG.R. No. 183872

Under Article 1715 of the Civil Code, if the work of a contractor has defects which destroy or
lessen its value or fitness for its ordinary or stipulated use, he may be required to remove the
defect or execute another work. If he fails to do so, he shall be liable for the expenses by the
employer for the correction of the work.

HEIRS OF GREGORIO LOPEZ, represented by Rogelia Lopez, et al.,


vs.DEVELOPMENT BANK OF THE PHILIPPINES [Now substituted by Philippine
Investment Two (SPVAMC), Inc.]
G.R. No. 193551, November 19, 2014

"The defense of having purchased the property in good faith may be availed of only where
registered land is involved and the buyer had relied in good faith on the clear title of the
registered owner."

EXTRAORDINARY DEVELOPMENT CORPORATION, v. HERMINIA F. SAMSON-


BICO AND ELYB. FLESTADO.

G.R. No. 191090, 13 October 2014

That the binding force of a contract must be recognized as far as it is legally possible to do so.
“Quandoresnonvaletutago,valeatquantumvalerepotest.”(When a thing is of no force as I do it, it
shall have as much force as it can have.)

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