Tips on Studying SALES (Civil Code – Philippines)

For Bar Review & Law School Exams

This guide is built for working law students and bar reviewees. It condenses high-yield strategies, checklists,
and issue-spotting templates specific to SALES under the Civil Code (Arts. 1458–1637), including Recto Law
(Art. 1484), Maceda Law (R.A. 6552), and related doctrines.

How to use this guide

• Skim the Core Article Map first, then deep-dive using the Checklists.
• Practice with the Bar Answer Templates—fill them in from memory.
• Follow the 4■Week Working■Student Plan. Adjust times to your schedule.
• Repeat the Quick Drills weekly and log mistakes in a “Corrections Notebook.”
1) Core Article Map & Special Laws
Civil Code Articles you must command (quick index):
• Arts. 1458–1477: Nature of sale, requisites, price, perfection; sale vs. contract to sell; earnest money vs.
option.

• Arts. 1478–1496: Effects of loss; capacity and prohibitions (Arts. 1490, 1491); delivery & transfer of
ownership.

• Arts. 1497–1505: Modes of delivery (traditio: actual, symbolica, longa/brevi manu, constitutum
possessorium).

• Art. 1544: Double sale—priority rules for movables/immovables.

• Arts. 1547–1581: Warranties: against eviction & hidden defects; remedies; prescription.
• Arts. 1601–1623: Pacto de retro & equitable mortgage indicators.
• Arts. 1624–1637: Assignment of credits: effects, warranties, notice to debtor.

Special laws & high-yield add■ons:

• Recto Law (Art. 1484): Remedies in sale of personal property on installments (cancel, foreclose, or exact
fulfillment—single choice; no deficiency after foreclosure).

• Maceda Law (R.A. 6552): Installment buyers of realty—cash surrender value, grace periods, notarial
cancellation after notice.

• Consumer Act & E■Commerce basics: product warranties; electronic contracts (know the principle, not the
minutiae).
2) Study Strategy that Works for SALES
A. Codal■First, Cases■to■Clarify
• Memorize definitions and elements from the codal verbatim for frequently tested provisions (Arts. 1458,
1475, 1496, 1544, 1547, 1561, 1602, 1484).

• Use cases only to illustrate borderline scenarios (e.g., double sale timing; eviction prerequisites; equitable
mortgage indicators).

B. Build Comparison Charts

• Sale vs. contract to sell (title passage & condition), vs. dation in payment, vs. barter, vs. lease, vs. agency to
sell.

• Sale on approval vs. sale or return (risk + title), specific vs. generic thing (risk of loss).
C. Issue■Spotting Flow
• 1) Is there a valid sale? (consent, object, price certain) → simulated/illusory price?
• 2) Who owns/when passed? (delivery rule; special delivery modes; reservations of title).
• 3) Breach? Whose obligation? (seller delivery/warranty; buyer payment/acceptance).
• 4) Remedies? (codal + Recto/Maceda). Are there exclusive elections?
• 5) Prescription/conditions precedent (e.g., summons for eviction; 6■month period for hidden defects).
3) High■Yield Doctrines & Pitfalls
Essential Requisites & Perfection
Sale is perfected by consent on the object and price certain (even if payment/delivery later). Earnest money ≠
option money; option needs separate consideration to be binding.

Capacity & Prohibitions

Know spouse■to■spouse limitation (Art. 1490) and self■dealing prohibitions (Art. 1491) for guardians, agents,
public officers, judges/clerks, and lawyers regarding property in litigation.

Price Certain
Price must be real and certain; gross inadequacy does not void sale per se (except where it indicates vice of
consent or equitable mortgage).

Delivery & Transfer of Ownership

Ownership passes upon delivery, not mere perfection, unless otherwise stipulated. Master the modes: actual,
symbolic, longa manu, brevi manu, constitutum possessorium, traditio clavium.

Risk of Loss
General rule: res perit domino (risk follows owner). Specific thing vs. generic thing; sale on approval vs. sale or
return; goods to be weighed/segregated.

Double Sale (Art. 1544)

Movables: ownership to first possessor in good faith. Immovables: (1) first registrant in good faith; else (2) first
possessor in good faith; else (3) buyer with oldest title in good faith.

Warranties: Eviction
Vendor is liable even in good faith unless there is a consciente y determinada waiver; buyer must
notify/summon vendor; remedies include rescission or proportionate reduction, plus damages.

Warranties: Hidden Defects

Defect must render goods unfit or diminish fitness substantially; remedies: redhibitory (rescission) or quanti
minoris (price reduction). Prescription generally 6 months from delivery; animals have shorter periods.

Recto Law (Art. 1484)

Sale of personal property on installments: upon default in ≥2 installments, seller may choose one: cancel, exact
fulfillment, or foreclose chattel mortgage—no deficiency after foreclosure.

Maceda Law (R.A. 6552)

Installment buyers of real property: cash surrender value (≥50% of total payments; +5% per year after 5 years
up to 90%), grace period (1 month per year paid), cancellation only after notarial notice and 30 days from
receipt.
Pacto de Retro vs. Equitable Mortgage
Look for Art. 1602 indicators (e.g., inadequate price, vendor remains in possession, buyer retains rentals, etc.).
Courts favor equitable mortgage to prevent oppression.

Assignment of Credits
Notifies debtor to bind him; assignor warrants existence/legality, not debtor solvency unless stipulated;
distinguish from subrogation.
 4) Quick Comparison Charts
Topic Key Distinction Exam Tip

Sale vs Contract to Sell Sale passes ownership upon delivery; contract toAsk:
sell withholds
Was theretitle
a resolutory
until a suspensive
vs suspensive
condition
conditio
(e.g

Sale vs Dation in Payment Dation extinguishes existing debt via property conveyance;
If there's pre■existing
sale createsdebt
obligation
and property
to pay price.
given to se

Sale vs Barter Price is in money vs in another thing; if partly money,

If uncertain,
predominant
default
intent
to sale
governs.
where money is substan

Sale vs Lease Lease transfers use/possession for rent; sale transfers

Long leases
ownership.
with option to buy: screen for disguised

Sale on Approval vs Sale or Return

Approval: title passes upon approval; Return: titleRisk
passes
follows
on delivery
title—track
but when
buyer itmay
passes.
return.

Agency to Sell vs Sale Agent sells for principal’s account; in sale, buyer If
acquires
profit belongs
for owntoaccount.
‘buyer’, it’s a sale; if to principal,
5) Bar Answer Templates (Fill■in Skeletons)
General FIRAC
Facts: [State only material facts—object, price, delivery, default, notices].
Issue: [e.g., Who owns the property? Is the buyer entitled to rescission?].
Rule: [Cite codal: e.g., Art. 1458/1475/1496/1544/1484/RA 6552].
Analysis: [Apply elements chronologically; discuss good faith and notices].
Conclusion: [Direct yes/no holding; relief].

Double Sale (Art. 1544)

Issue: Who has better right of ownership?
Rule: Movables → first possessor in GF; Immovables → first registrant in GF; else
first possessor in GF; else oldest title in GF.
Application: [Track dates: sale, delivery/possession, registration; evaluate good
faith at each step].
Conclusion: [Declare winner + remedy].

Recto Law Election

Issue: Proper remedy on default in ≥2 installments (personal property on
installments).
Rule: Seller may choose one: cancel, foreclose (no deficiency), or exact
fulfillment.
Application: [Identify number of defaults, existence of chattel mortgage, prior
election].
Conclusion: [State exclusive remedy and consequence].

Maceda Law Claim

Issue: Entitlements of defaulting buyer of realty on installments.
Rule: Cash surrender value (≥50% + 5%/yr after 5 yrs up to 90%); grace period = 1
month per year paid; cancellation only after 30■day notice by notarial act.
Application: [Compute total payments, years paid, grace period; check notices].
Conclusion: [State benefits or invalidity of cancellation].

Eviction Warranty
Issue: Vendor’s liability for eviction.
Rule: Vendor liable even in GF unless specific conscious waiver; buyer must
notify/summon vendor.
Application: [Show eviction by final judgment; compliance with notice; damages].
Conclusion: [Remedy + damages].

Hidden Defects
Issue: Remedies for hidden defects.
Rule: Redhibitory rescission or quanti minoris; action generally prescribes in 6
months from delivery.
Application: [Defect existed at sale; hidden; suitability diminished; timely
suit].
Conclusion: [Rescission/price reduction + damages if bad faith].
6) 4■Week Working■Student Plan (2–3 hrs/day, 5 days/week)
Week Focus Deliverables

Week 1 Nature, perfection, price, capacity, delivery modes 1■page codal outline; flashcards for Arts. 1458, 1475, 1496

Week 2 Risk of loss, double sale (1544), obligations/remedies

Flowchart for risk/title; 10 FIRAC drills on 1544

Week 3 Warranties (eviction/defects), prescription Checklist + 5 sample answers on eviction/defects

Week 4 Recto (1484), Maceda (RA 6552), pacto de retro vs equitable

2 problemmortgage,
sets; 1 mock
assignment
exam timed
of credits
(2 hours)

Daily Micro■Routine (sample)

• 20 mins: Codal memorization (write key lines from memory).
• 40 mins: One topic deep■dive + 5 MCQ/issue spots.
• 40 mins: Draft one timed FIRAC answer.
• 10 mins: Update Corrections Notebook & flashcards.
7) Core Checklists
Valid Sale
• Consent (object + price certain).
• Object: determinate or determinable; within commerce; licit.
• Price: real, certain; not simulated/illusory; manner of determination agreed.
• Capacity of parties; no prohibition under Arts. 1490–1491.

Transfer of Ownership & Delivery

• Perfection vs delivery distinguished.
• Identify delivery mode used; was there control/intent to transfer?
• Reservation of ownership/title? (e.g., contract to sell)
• Who bore risk at each moment? (res perit domino rule)

Double Sale (Art. 1544)

• Movable vs immovable?
• Dates: sale, delivery/possession, registration.
• Good faith at time of (a) registration (immovables), (b) first possession (movables).
• Apply priority ladder; conclude clearly.

Eviction Warranty
• Better right of a third person existed at time of sale.
• Buyer evicted by final judgment.
• Buyer notified & vendor summoned to the suit.
• Waiver? If yes, was it consciente y determinada?

Hidden Defects
• Defect existed at delivery; hidden to buyer; renders unfit or substantially diminishes fitness.
• Timeliness: generally within 6 months from delivery (animals: shorter).
• Choose remedy: rescission (redhibitoria) or price reduction (quanti minoris).
• Bad faith → damages.

Recto Law (Art. 1484)

• Personal property on installments? Default in ≥2 installments?
• Seller’s election: cancel, exact fulfillment, or foreclose chattel mortgage (no deficiency).
• Prior election bars others; check for waiver/estoppel issues.

Maceda Law (RA 6552)

• Real property on installments?
• Years paid → grace period (1 month per year).
• Cash surrender value: ≥50% + 5%/yr after 5 yrs up to 90%.
• Cancellation valid only after notarial notice and lapse of 30 days from receipt.
8) Quick Drills (Answer in 3–5 sentences each)
1 A sells the same car to B (delivery made) and later to C (no delivery). Who owns the car? Explain under Art.
1544.

2 Buyer discovers a latent defect 4 months after delivery. What remedies and within what prescriptive period?
3 Spouses X and Y execute a sale between themselves while under absolute community. Valid? Legal basis.
4 In a sale of a specific machine to be weighed to ascertain price, it is destroyed before weighing. Who bears
the risk?

5 Buyer defaulted in three installments for a refrigerator secured by chattel mortgage. What are the seller’s
options and limits?

6 A deed says “sale with right to repurchase,” but price is grossly inadequate and seller remains in possession
paying “rent.” What is the likely characterization?

7 Assignment of credit without notice to debtor—what is the effect of payment made to the assignor?
8 Differentiate earnest money and option money; effects on binding force.
9 When is a waiver of eviction valid? Explain consciente y determinada.
10 Contrast sale on approval and sale or return as to passage of title and risk.
9) Personalization & Tracking
Keep a one■page “Sales Dashboard”: (1) Articles memorized (tick boxes), (2) Cases you’ll cite for each
doctrine, (3) Your frequent errors with corrected rules, and (4) timed■answer scores (target: 75–80% within
12–15 minutes per essay).