Law on Sales

Venditio / Vente / Venta

Roman French Spanish

(1458-1637)
Atty. Amado R. Villegas, Jr.
RFBT Reviewer / Professor I – FEU Manila
Law on Sales
(1600 - 1623)

Atty. Amado R. Villegas, Jr.

RFBT Reviewer / Professor I – FEU Manila
 Extinguishment of Sale (1600-1623)
Causes of extinguishment of sale
(1) Common – PaLoReMeCoNo AnRes3Pres
(2) Special – 1484, 1532, 1539, 1540, 1542,
1556, 1567, 1541
(3) Extra-Special
a. Conventional Redemption
b. Legal Redemption
 Extinguishment of Sale (1600-1623)
Conventional Redemption
Sale with Right to Repurchase
Sale with Right to Redeem
Pacto de Retro Sale
Retracto Conventional
Defined - Seller reserves the right to redeem
 Extinguishment of Sale (1600-1623)

Sale v. Mortgage (1378)

Absolute Sale (1604) v. Mortgage
Sale with Right to Repurchase (1603) v. Mortgage

Why? If contract is onerous (sale), interpreted in favor of

greatest reciprocity of interest.
Why Equitable Mortgage?
 Extinguishment of Sale (1600-1623)
The contract shall be presumed to be an EQUITABLE MORTGAGE
(1602)
I – Unusually Inadequate
P – seller remains in possession
E – extending the period of redemption
R – buyer retains a part of the price
T – seller binds himself to pay taxes
O – Other cases
D – In case of Doubt (1603/1604)
 Extinguishment of Sale (1600-1623)
Sale With Right to Repurchase
1605 – Remedy of Reformation
1606 – Period to exercise of right of redemption
GR – period agreed upon
E – if no agreement – 4 years
Maximum period – 10 years

If court declares that it is not equitable mortgage

but SRR – within 30 days from the time the final
judgment was rendered
 Extinguishment of Sale (1600-1623)
1607 – Necessity of judicial order for recording
of consolidation of ownership
1608 – Right to Redeem, a real right
Can buyer a retro sell the property acquired?
If yes, from whom should the seller a retro redeem?
1609 – Vendee, subrogated to vendor’s rights
1610 – Right of vendor’s creditors to redeem
 Conventional Redemption
1611 – Redemption in sale of part of undivided immovable (v. 1620 –
Legal Redemption)

e.g. ABC are co-owners

A SRR 1/3
B sale PEDRO
C sale

Who can redeem? Up to what extent?

Can buyer sell or mortgage the property bought?

1618 – Right of vendor a retro to recover the thing sold free from
charges
 Conventional Redemption
Redemption in joint sale by co-owners / co heirs
of undivided immovable (1612/1613)
1st par, 1612 (SAME CONTRACT) 2nd par, 1612

1/3 A SRR SRR

1/3 B PEDRO A PEDRO
1/3 C
A dies leaving A1, A2, A3
Questions
1. How much can each of them redeem?
2. Can anyone of them redeem the whole land?
3. Can Pedro force them to redeem the whole land?
 Conventional Redemption
Redemption in SEPARATE sales by co-owners /
co heirs of undivided immovable (1614)
1st par, 1612 (SAME CONTRACT)
1614 – SEPARATE contracts
1/3 A SRR 1/3 A SRR
1/3 B PEDRO 1/3 B PEDRO
1/3 C 1/3 C

Questions
1. How much can each of them redeem?
2. Can anyone of them redeem the whole land?
3. Can Pedro force them to redeem the whole land?
 Conventional Redemption
Redemption against heirs of vendee (1615)
2nd par, 1612
1615
SRR SRR
A PEDRO A PEDRO

A dies leaving A1, A2, A3

Pedro dies leaving P1, P2, P3
Questions
1. How much can A redeem?
2. Can A them redeem the whole land?
3. Can the heirs force A to redeem the whole land?
 Liabilities
1555 1589 1616
Liabilities in Liability of Obligation of
case of eviction buyer for vendor a retro
of the seller interest in case of
redemption
1. Stipulation 1. Price of sale
VICED 2. Should it 2. Expenses of
produce Fruits contract
3. Default 3. Necessary and
useful expenses
 Rights of the parties
as to the fruits of the land (1617)
(1) If there were fruits at the time of the sale
and the buyer paid for them –

(2) If no indemnity was paid by the buyer for the

fruits at the time of the sale –

(3) If the property had no fruits at the time of

sale and some exists at the time of
redemption –
 Legal Redemption
Legal Redemption (defined)
- is the right to be subrogated, upon the same
terms and conditions stipulated in the
contract, in the place of one who acquires a
thing by purchase or dation in payment, or by
any other transaction whereby ownership is
transmitted by onerous title.
NOT allowed in the case of donation /succession
Right of legal redemption of co-owner
1611 1620
Conventional Redemption LEGAL Redemption
SRR
1/3 A 1/3 A sold his share PEDRO
1/3 B PEDRO 1/3 B
1/3 C
1/3 C

1. Who can redeem?

2. Up to what extent?
3. What if share was sold to a co-owner?
 Right of legal redemption
of adjacent owners of RURAL lands (1621)

G
C B
A
D H E
F
 Right of legal redemption
of adjacent owners of RURAL lands (1621)

If two or more adjoining owners

desire to exercise the right to
G redeem at the same time, who
C B shall be preferred?
A

D H E
F GR- SMALLER AREA
E – Should both lands have the
same area, ONE WHO FIRST
REQUESTED
 Right of legal redemption
of adjacent owners of RURAL lands (1621)

When Right to Redeem NOT

Available
G (1) Stranger has no rural lands
C B (2) Buyer is an adjacent owner
A
H
(3) Land is not adjacent
D E
F (4) Land exceeds one hectare
(5) Separated by brooks, ravine,
roads, drains or apparent
servitudes
Right of Pre-emption and Legal redemption of
adjacent owners of URBAN lands (1622)
Pre-emption – before the sale
Redemption – after the sale
B H
I
Requisites
(1) Urban land
G (2) Must be an adjacent owner
H (3) Land is small
D A W
(4) Bought merely for speculation
A
Y
C PREFERENCE
Rule – whose intended use of the
land appears BEST JUSTIFIED
Period for the exercise of Redemption
1623
- Within 30 days from notice in WRITING by the
prospective vendor or by the vendor
- Affidavit of the vendor that he has given
written notice to possible redemptioners

The right of redemption of co-owners excludes

that of adjoining owners.
 THANK
Atty. Amado R. Villegas, Jr.
Professor 1, Far Eastern University
PRTC Reviewer
YOU
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CTDI Reviewer
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