obligations of the vendor notes

7/21/2019 Obligations of the Vendor Notes

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OBLIGATIONS OF THE VENDOR

PRINCIPAL OBLIGATIONS OF THE VENDOR

1. To transfer the ownershi of the !eter"inate thin# so$!% &ARTICLE 1495'

(. To !e$i)er the thin#%

*. To warrant a#ainst the e)i+tion an! hi!!en !efe+ts &ARTICLE 1495, 1547'

,. To ta-e +are of the thin# en!in# !e$i)er/ with roer !i$i#en+e &ARTICLE 1163'% an!

0. To a/ for the eenses for the ee+2tion an! re#istration of the !ee! of sa$e 2n$ess there is a

sti2$ation to the +ontrar/.(ARTICLE 1487)

Art. 1495. T! "!#$%r &' %#$ t% tr*#'+!r t! %#!r'&- %+ *#$ $!&"!r, *' ! *' *rr*#t

t! t&#/ &0 &' t! %!0t %+ t! '*!.

The )en!or nee! not 3e the owner of the thin# at the ti"e of erfe+tion of the +ontra+t%

It is s2ffi+ient that he has a 4ri#ht to transfer the ownershi thereof at the ti"e it is

!e$i)ere!.5

The o3$i#ation to transfer ownershi an! to !e$i)er is rea$$/ i"$ie! in e)er/ +ontra+t of

sa$e.

One who se$$s so"ethin# he !oes not /et own is 3o2n! 3/ the sa$e when he a+62ires the

thin# $ater.

Art. 1496. T! %#!r'&- %+ t! t&#/ '%$ &' *02&r!$ t! "!#$!! +r% t! %!#t &t &'

$!&"!r!$ t% & &# *# %+ t! *' '-!0&+&!$ &# Art&0!' 1497 t% 151, %r &# *# %t!r*##!r '&/#&+&#/ *# */r!!!#t t*t t! -%''!''&%# &' tr*#'+!rr!$ +r% t! "!#$%r t% t!

"!#$!!.

7A8S OF EFFECTING DELIVER8



1. B/ a+t2a$ or rea$ !e$i)er/9 a+t2a$ #/2! n#a #i!e$i)er

(. B/ +onstr2+ti)e or $e#a$ !e$i)er/9

*. B/ !e$i)er/ in an/ other "anner si#nif/in# an a#ree"ent that the ossession is transferre! to

the )en!ee.

DELIVER is an in!isensa3$e re62isite for the transfer of ownershi whi+h 2n!er o2r $aw

+annot 3e effe+te! 3/ "ere +onsent.

The a+t of !e$i)er/ "2st 3e "a!e with intention of !e$i)erin# the thin# so$!.

7A8S OF EFFECTING CONSTR:CTIVE DELIVER8

a. B/ the ee+2tion of a 23$i+ instr2"ent

3. B/ s/"3o$i+a$ tra!ition or tra!ition s/"3o$i+a

+. B/ tra!itio $on#a "an2 &Arti+$e 1,;;'

!. B/ tra!ition 3re)i "an2

e.B/ tra!ition +onstit2t2" ossessori2" &Arti+$e 10<<'% or

f. B/ 62asi9 !e$i)er/ or 62asi9tra!itio &Arti+$e 10<1'

- The arties howe)er "a/ sti2$ate that ownershi in the thin# sha$$ ass to the 2r+haser

on$/ after he has f2$$/ ai! the ri+e or f2$fi$$e! +ertain +on!itions.

===DIFFERENCE BET7EEN CONTRACT OF SALE AND CONTRACT TO SELL

CONTRACT OF SALE9 ownershi is transferre! si"2$taneo2s$/ with the !e$i)er/ of the thin#

so$!. &Ini# a$it ini# !e$i)er "a3a$hin na !a/on an# ownershi ana'



CONTRACT TO SELL9 sa$e 3/ insta$$"ent% !ata9!ata n#a sa$e% an# ownershi !i$i !a/on

"a3a$hin 3isan a 2# na!e$i)er na a#a$it -a /an# ownershi "a3a$hin na if "a+o"$ete na

an# ri+e.

SECTION . D!&"!r %+ t! T&#/ S%$

Art. 1497. T! t&#/ '%$ '* ! #$!r't%%$ *' $!&"!r!$, !# &t &' -*0!$ &# t! 0%#tr%

*#$ -%''!''&%# %+ t! "!#$!!.

TRADITION9 a !eri)ati)e "o!e of a+62irin# ownershi 3/ )irt2e of whi+h one who has the

ri#ht an! intention to a$ienate a +ororea$ thin# trans"its it 3/ )irt2e of a >2st tit$e to one who

a++ets the sa"e.

DELIVER8 of the thin# to#ether with the a/"ent of the ri+e "ar-s the +ons2""ation of the

+ontra+t of sa$e.

It is on$/ after the !e$i)er/ a+t2a$ or +onstr2+ti)e that a )en!ee a+62ires a rea$ ri#ht or

ownershi o)er it.

ACT:AL DELIVER8OF THING SOLD &?an2s a si/a "a +onsi!er n#a a+t2a$ !e$i)er/@'

• There is a+t2a$ !e$i)er/ when the thin# so$! is $a+e! in the +ontro$ an! ossession of the

)en!ee.

• In)o$)es the h/si+a$ !e$i)er/ of the thin# an! is 2s2a$$/ !one 3/ the assin# of a

"o)a3$e thin# fro" han! to han!.

• Howe)er !i$i si/a er"i -inahan#$an n#a I !e$i)er #/2! ara "a 3a$hin an# tit$e. Pwe!e

"a#sa3ot an# arties -2n# -an2s a 2# sa 2nsa n#a +on!ition n#a "aasa an# ownershi

sa 32/er.



• Ea"$e Parties "a/ sti2$ate that ownershi in the thin# so$! sha$$ ass to the )en!ee

on$/ after he has f2$$/ ai! the ri+e.

Art. 1498. !# t! '*! &' *$! tr%/ * -&0 &#'tr!#t, t! !:!0t&%# t!r!%+ '*

! !2&"*!#t t% t! $!&"!r %+ t! t&#/ &0 &' t! %!0t %+ t! 0%#tr*0t, &+ +r% t!

$!!$ t! 0%#tr*r $%!' #%t *--!*r %r 0*##%t 0!*r ! &#+!rr!$.

&t r!/*r$ t% %"*! -r%-!rt, &t' $!&"!r * *'% ! *$! t! $!&"!r %+ t! ;!'

%+ t! -*0! %r $!-%'&t%r !r! &t &' 't%r!$ %r ;!-t.

EEC:TION OF A P:BLIC INSTR:ENT OR DOC:ENT

• P:BLIC INSTR:ENT9 one whi+h is a+-now$e!#e! 3efore a notar/ 23$i+ or an/

offi+ia$ a2thorie! to a!"inister oath 3/ the erson who ee+2te! the sa"e.

• The art/ "a-in# the a+-now$e!#"ent for"a$$/ !e+$ares that the instr2"ent is his free

a+t an! !ee! whi$e the offi+er ta-in# the sa"e attests an! +ertifies that s2+h art/ is

-nown to hi" an! that he is the sa"e erson who ee+2te! the instr2"ent an!

a+-now$e!#e! that the instr2"ent is his free a+t an! !ee!.

• The ee+2tion of a 23$i+ instr2"ent as a "anner of !e$i)er/ a$ies to "o)a3$e as we$$

as i""o)a3$e roert/ sin+e the $aw !oes not "a-e an/ !istin+tion an! it +an 3e +$ear$/

inferre! 3/ the 2se of the wor! 4a$so5 in ara#rah ( of Arti+$e 1,;. The "anner of

!e$i)er/ is a$so s/"3o$i+.

7HERE THE THING NOT S:BECT TO CONTROL OF VENDOR

a +onsi!er $an# n#a e62i)a$ent an# s/"3o$i+ !e$i)er/ 3/ the ee+2tion of a 23$i+ instr2"ent

sa a+t2a$ !e$i)er/ -2n# an# 32tan# -a/ s23>e+t sa +ontro$ sa )en!or.

-

So an# )en!or n#a na# ee+2te sa 23$i+ instr2"ent fai$s in his o3$i#ation sa a#!e$i)er sa 32tan# -2n# an# na#a$it !i$i "a-a ossess o "a-a#a"it t2n#o! sa oosition or

resistan+e sa $ain# tawo or an# 32tan# -a/ 2n!er si/a sa +ontro$ sa 23an# tawo.

S8BOLIC TRADITION

- Constr2+ti)e !e$i)er/ is '%&0 when to effe+t the !e$i)er/ t! -*rt&!' *;! '! %+ *

t%;!# '% t% r!-r!'!#t t! t&#/ $!&"!r!$.



- Ea"$e an# !e$i)er/ sa /awe sa -2n# asa an# 32tan# n#a #ia$it na-ata#o is e62i)a$ent

to the !e$i)er/ of the thin# t2n#o! -a/ an# /awe na#reresentar sa 32tan#.

Art. 1499. T! $!&"!r %+ %"*! -r%-!rt * &;!&'! ! *$! t! !r! 0%#'!#t %r

*/r!!!#t %+ t! 0%#tr*0t&#/ -*rt&!', &+ t! t&#/ '%$ 0*##%t ! tr*#'+!rr!$ t% t!

-%''!''&%# %+ t! "!#$!! *t t! t&! %+ t! '*!, %r &+ t! *tt!r *r!*$ *$ &t &# &'

-%''!''&%# +%r *# %t!r r!*'%#.

TRADITIO LONGA AN:9 a !e$i)er/ whi+h t*;!' -*0! t! !r! 0%#'!#t %r */r!!!#t

%+ t! 0%#tr*0t&#/ -*rt&!' *' !# t! "!#$%r !r! -%&#t' t% t! t&#/ '%$ whi+h sha$$

thereafter 3e at the +ontro$ an! !isosa$ of the )en!ee.

TRADITION BREVI AN:9 this "o!e of $e#a$ !e$i)er/ haens when t! "!#$!! *'

*r!*$ t! -%''!''&%# %+ t! t&#/ '%$ "&rt! %+ *#%t!r t&t! *' !# t! !''%r '!' t!

t&#/ !*'!$ t% t! !''!!.

Art. 15. T!r! * *'% ! tr*$&t&%# 0%#'t&tt -%''!''%r&. (#)

TRADITIO CONSTIT:T: POSSESSORI:9 this "o!e of !e$i)er/ is the oosite of

tra!ition 3re)i "an2. It ta-es $a+e when the "!#$%r 0%#t&#!' &# -%''!''&%# %+ t! -r%-!rt

'%$ #%t *' %#!r t &# '%! %t!r 0*-*0&t.

Ea"$e 7hen the )en!or sta/s as a tenant on the )en!ee. So ari n#a sitwas/on instea! n#a an#

)en!or an# "a#!e$i)er sa 32tan# a!to sa )en!ee the $aw +onsi!ers that a$$ these ha)e ta-en

$a+e thro2#h the +onstit2t2" ossessori2" a#ree"ent.

Art. 151. &t r!'-!0t t% &#0%r-%r!* -r%-!rt, t! -r%"&'&%#' %+ t! +&r't -*r*/r*- %+

*rt&0! 1498 '* /%"!r#. I# *# %t!r 0*'! !r!&# '*&$ -r%"&'&%#' *r! #%t *--&0*!, t!

-*0&#/ %+ t! t&t!' %+ %#!r'&- &# t! -%''!''&%# %+ t! "!#$!! %r t! '! t! "!#$!! %+

&' r&/t', &t t! "!#$%r<' 0%#'!#t, '* ! #$!r't%%$ *' * $!&"!r.

COR=OREAL =RO=ERT> Proert/ n#a "a ossesse! or "a own.

INCOR=OREAL =RO=ERT> Proert/ n#a !i$i "a ossess% ea"$e ease"ent ri#ht of wa/

Tra!ition +an on$/ 3e "a!e with rese+t to +ororea$ thin#s.

In rese+t sa in+ororea$ thin#s "ahi"o an# !e$i)er/ sa in ani n#a aa#i



1. B/ execution of a public instrument;

(. 7hen that "o!e of !e$i)er/ is not a$i+a3$e by the placing of the titles of ownership in the

possession of the vendee; or

*. B/ allowing the vendee to sue his rights as new owner with the consent of the vendor.

:ASI9TRADITIO9 "ao ni an# tawa# sa !e$i)er/ sa in+ororea$ thin#s.

Art. 15. !# /%%$' *r! $!&"!r!$ t% t! !r ?%# '*! %r r!tr#@ t% /&"! t! !r *#

%-t&%# t% r!tr# t! /%%$' &#'t!*$ %+ -*&#/ t! -r&0!, t! %#!r'&- -*''!' t% t! !r %+

$!&"!r, t ! * r!"!'t t! %#!r'&- &# t! '!!r r!tr#&#/ %r t!#$!r&#/ t! /%%$'

&t&# t! t&! +&:!$ &# t! 0%#tr*0t, %r, &+ #% t&! *' !!# +&:!$, &t&# * r!*'%#*! t&!.

(#)

!# /%%$' *r! $!&"!r!$ t% t! !r %# *--r%"* %r %# tr&* %r %# '*t&'+*0t&%#, %r %t!r

'&&*r t!r', t! %#!r'&- t!r!&# -*''!' t% t! !r

(1) !# ! '&/#&+&!' &' *--r%"* %r *00!-t*#0! t% t! '!!r %r $%!' *# %t!r *0t *$%-t&#/

t! tr*#'*0t&%#

() I+ ! $%!' #%t '&/#&+ &' *--r%"* %r *00!-t*#0! t% t! '!!r, t r!t*&#' t! /%%$'

&t%t /&"&#/ #%t&0! %+ r!!0t&%#, t!# &+ * t&! *' !!# +&:!$ +%r t! r!tr# %+ t! /%%$',

%# t! !:-&r*t&%# %+ '0 t&!, *#$, &+ #% t&! *' !!# +&:!$, %# t! !:-&r*t&%# %+ *

r!*'%#*! t&!. *t &' * r!*'%#*! t&! &' * 2!'t&%# %+ +*0t. (#)

SALE OR RETRN> It is a +ontra+t 3/ whi+h roert/ is so$! 32t the 32/er who 3e+o"es the

owner of the roert/ on !e$i)er/ has the otion to ret2rn the sa"e to the se$$er instea! of

a/in# the ri+e.

- The otion to 2r+hase or ret2rn the #oo!s rests entire$/ on the 32/er witho2t referen+e to

the 62a$it/ if #oo!s.

SALE ON TRIAL OR A==ROVAL> It is a +ontra+t in the nat2re of a n otion to 2r+hase if

the #oo!s ro)e satisfa+tor/ the aro)a$ of the 32/er 3ein# a +on!ition re+e!ent.

- In this -in! of +ontra+t the tit$e sha$$ +ontin2e in the se$$er 2nti$ the sa$e has 3e+o"e

a3so$2te either 3/ the 32/ers aro)a$ of the #oo!s or 3/ his fai$in# to +o"$/ with the



eress or i"$ie! +on!itions of the +ontra+t as to #i)in# noti+e of !issatisfa+tion or as to

ret2rnin# the #oo!s.

DISTINCTION BET7EEN SALE OR RET:RN AND SALE ON TRIAL

SALE OR RET:RN SALE ON TRIAL

1. A sa$e s23>e+t to a r!'%t%r 0%#$&t&%# 1. A sa$e s23>e+t to a ''-!#'&"! 0%#$&t&%#

(. It !een!s entire$/ on the & %+ t! !r (. It !een!s on the 0*r*0t!r %r 2*&t %+

t! /%%$'

*. The %#!r'&- of the #oo!s -*''!' t% t!

!r %# $!&"!r an! s23se62ent ret2rn of

the #oo!s re)erts ownershi in the se$$er

*. The %#!r'&- re"ains in the se$$er #t&

t! !r '&/#&+&!' &' *--r%"* or

a++etan+e to the se$$er

,. The ris- of $oss or in>2r/ rests 2on the

32/er

,. The ris- sti$$ re"ains with the se$$er.

Art. 153. !# t!r! &' * 0%#tr*0t %+ '*! %+ '-!0&+&0 /%%$', t! '!!r *, t! t!r' %+

t! 0%#tr*0t, r!'!r"! t! r&/t %+ -%''!''&%# %r %#!r'&- &# t! /%%$' #t& 0!rt*&#

0%#$&t&%#' *"! !!# ++&!$. T! r&/t %+ -%''!''&%# %r %#!r'&- * ! t' r!'!r"!$

#%t&t't*#$&#/ t! $!&"!r %+ t! /%%$' t% t! !r %r t% * 0*rr&!r %r %t!r *&!! +%r t!

-r-%'! %+ tr*#'&''&%# t% t! !r.

!r! /%%$' *r! '&--!$, *#$ t! & %+ *$&#/ t! /%%$' *r! $!&"!r*! t% t! '!!r %r

&' */!#t, %r t% t! %r$!r %+ t! '!!r %r %+ &' */!#t, t! '!!r t!r! r!'!r"!' t!

%#!r'&- &# t! /%%$'. Bt, &+ !:0!-t +%r t! +%r %+ t! & %+ *$&#/, t! %#!r'&-

%$ *"! -*''!$ t% t! !r %# '&-!#t %+ t! /%%$', t! '!!r<' -r%-!rt &# t! /%%$'

'* ! $!!!$ t% ! %# +%r t! -r-%'! %+ '!0r&#/ -!r+%r*#0! t! !r %+ &'

%&/*t&%#' #$!r t! 0%#tr*0t.

!r! /%%$' *r! '&--!$, *#$ t! & %+ *$&#/ t! /%%$' *r! $!&"!r*! t% %r$!r %+ t!!r %r %+ &' */!#t, t -%''!''&%# %+ t! & %+ *$&#/ &' r!t*&#!$ t! '!!r %r &'

*/!#t, t! '!!r t!r! r!'!r"!' * r&/t t% t! -%''!''&%# %+ t! /%%$' *' */*&#'t t! !r.

!r! t! '!!r %+ /%%$' $r*' %# t! !r +%r t! -r&0! *#$ tr*#'&t' t! & %+

!:0*#/! *#$ & %+ *$&#/ t%/!t!r t% t! !r t% '!0r! *00!-t*#0! %r -*!#t %+ t!

& %+ !:0*#/!, t! !r &' %#$ t% r!tr# t! & %+ *$&#/ &+ ! $%!' #%t %#%r t! &



%+ !:0*#/!, *#$ &+ ! r%#/+ r!t*&#' t! & %+ *$&#/ ! *02&r!' #% *$$!$ r&/t

t!r!. I+, %!"!r, t! & %+ *$&#/ -r%"&$!' t*t t! /%%$' *r! $!&"!r*! t% t! !r

%r t% t! %r$!r %+ t! !r, %r &' &#$%r'!$ &# *#;, %r t% t! !r t! 0%#'&/#!! #*!$

t!r!&#, %#! % -r0*'!' &# /%%$ +*&t, +%r "*!, t! & %+ *$&#/, %r /%%$' +r% t!

!r & %t*&# t! %#!r'&- &# t! /%%$', *t%/ t! & %+ !:0*#/! *' #%t !!#

%#%r!$, -r%"&$!$ t*t '0 -r0*'!r *' r!0!&"!$ $!&"!r %+ t! & %+ *$&#/ &#$%r'!$

t! 0%#'&/#!! #*!$ t!r!&#, %r %+ t! /%%$', &t%t #%t&0! %+ t! +*0t' *;&#/ t!

tr*#'+!r r%#/+.

This arti+$e re$ates to a sa$e of se+ifi+ #oo!s.

1. DELIVER8 TO CARRIER9

G!#!r* R! De$i)er/ &e)en if +onstr2+ti)e $an#' asses tit$e in the thin# so$! an! !e$i)er/ to

the +arrier is !ee"e! to 3e a !e$i)er/ to the 32/er.

(. REDELIVERING B8 CARRIER TO SELLER HISELF

9 If the se$$er !ire+ts the +arrier to re!e$i)er the #oo!s at their !estination to the se$$er hi"se$f or

to his or!er it in!i+ates an intention that the +arrier sha$$ 3e the 3ai$ee for the se$$er an! the

ownershi wi$$ re"ain in the $atter.

E:0!-t&%#

1. If a +ontrar/ intention aears 3/ the ter"s of the +ontra+t%

(. In the +ases ro)i!e! in the se+on! an! thir! ara#rahs of Arti+$e 10(*% an!

*. In the +ases ro)i!e! in the se+on! thir! an! $ast ara#rahs of Arti+$e 10<*.

7HERE SELLER OR HIS AGENT IS CONSIGNEE

Carrier 3e+o"es a 3ai$ee for se$$er9 ahita3o ni si/a -2n# an# #oo!s -a/ #i shie! 2n/a

inaa#i sa 3i$$ of $a!in# an# #oo!s -a/ !e$i)era3$e sa se$$er or his a#ent or to the or!er of the

se$$er or his a#ent an# se$$er there3/ reser)e an# ownershi sa #oo!s 2 #an# +arrier -a/ "ahi"o

n#a 3ai$ee ara ni/a 2# !i$i an# 32/er.



eanin# sa BAILEE a erson or art/ to who" #oo!s are !e$i)ere! for a 2rose s2+h as

+2sto!/ or reair witho2t transfer of ownershi.

An# 3ai$ee "ao na an# 3in$an 2sa sa #oo!s sa se$$er. Naa ni/a an# #oo!s sa"tan# wa$a ani32hat an# 32/er sa i/an# o3$i#ations sa +ontra+t ni$a.

7hat are the ri#hts of the se$$er@

- To retain the #oo!s 2nti$ the 32/er erfor"s his o3$i#ation 2n!er the +ontra+t.

- In +ase of )io$ation of +ontra+t naa 2/ ri#ht an# se$$er n#a i!isose ea"$e i3a$i#/a

na$an# sa 23an# tawo.

-If 32haton na sa se$$er $ia3$e si/a 2# !a"a#es sa 32/er ero an# -aton# $ain# tawo n#ania$it "ao na/ "ahi"on# ta# i/a sa 32tan#.

-

7HERE SELLERS TITLE ONL8 FOR P:RPOSE OF SEC:RIT8

7here ownershi wo2$! ha)e asse! 32t for the for" of the 3i$$ of $a!in#

- Sa a#shi sa #oo!s an# se$$er has !efinite$/ $ost a$$ of 2se of the" to the 32/er.

- If s2re a an# shier n#a an# 32/er "232hat #/2! sa i/an# o3$i#as/on for s2re !i$i na

na ni/a i+onsi#n.

- ?2n# an# tit$e sa #oo!s is he$! "ere$/ for the 2rose of se+2rit/ an# 3enefi+ia$ owner

whi+h is the !r !i$i an# se$$er "ao/ "2 !*r '* r&'; %+ %'' %r $!t!r&%r*t&%#.

7HERE B:8ER OR HIS AGENT IS CONSIGNEE B:T SELLER RETAINS THE BILL OF

LADING

BILL OF LADING9 a !etai$e! $ist of a shi"ent of #oo!s in the for" of a re+eit #i)en 3/ the

+arrier to the erson +onsi#nin# the #oo!s. &$ista sa ishi n#a #oo!s "2ra si/a 2# resi3o'

- ?2n# an# #oo!s -a/ #i shie! 2# an# & %+ *$&#/ %+ t! /%%$' ;* $!&"!r*! '*

%r$!r %+ t! !r %r %+ &' */!#t 32t an# -%''!''&%# '* & %+ *$&#/ &' r!t*&#!$



t! '!!r %r &' */!#t an# se$$er retains a ri#ht to the ossession of the #oo!s as a#ainst

the 32/er.

EFFECT OF B:8ERS OBTAINING POSSESSION OF BILL OF LADING 7ITHO:T

HONORING THE DRAFT

- As re#ar!s thir! erson a 2r+haser in #oo! faith for )a$2e of the 3i$$ of $a!in# or #oo!s

fro" the 32/er wi$$ o3tain the ownershi in the #oo!s a$tho2#h the 3i$$ of e+han#e has

not 3een honore!.

Art. 154. #!'' %t!r&'! */r!!$, t! /%%$' r!*&# *t t! '!!r<' r&'; #t& t! %#!r'&-

t!r!&# &' tr*#'+!rr!$ t% t! !r, t !# t! %#!r'&- t!r!&# &' tr*#'+!rr!$ t% t!

!r t! /%%$' *r! *t t! !r<' r&'; !t!r *0t* $!&"!r *' !!# *$! %r #%t,

!:0!-t t*t

(1) !r! $!&"!r %+ t! /%%$' *' !!# *$! t% t! !r %r t% * *&!! +%r t! !r, &#

-r'*#0! %+ t! 0%#tr*0t *#$ t! %#!r'&- &# t! /%%$' *' !!# r!t*&#!$ t! '!!r

!r! t% '!0r! -!r+%r*#0! t! !r %+ &' %&/*t&%#' #$!r t! 0%#tr*0t, t! /%%$'

*r! *t t! !r<' r&'; +r% t! t&! %+ '0 $!&"!r

() !r! *0t* $!&"!r *' !!# $!*!$ tr%/ t! +*t %+ !&t!r t! !r %r '!!r

t! /%%$' *r! *t t! r&'; %+ t! -*rt &# +*t. (#)

RIS? OF LOSS GENERALL8 ATTENDS TITLE

G!#!r* R! If the thin# is $ost 3/ +%rt&t%' !"!#t the ris- is 3orne 3/ the %#!r of the

thin#s at the ti"e of the $oss

FORT:ITO:S EVENT9 An 2nforeseen e)ent that o++2rs 3/ +han+e or a++i!ent fro" nat2ra$ or

"an9"a!e for+es o)er whi+h an affe+te! erson has no +ontro$.

Ea"$e Earth62a-e F$ashf$oo!s

E:0!-t&%#' 1. 7here the se$$er reser)es the ownershi of the #oo!s "ere$/ to se+2re the

erfor"an+e 3/ the 32/er of his o3$i#ations 2n!er the +ontra+t the ownershi is +onsi!ere!

transferre! to the !r who therefore ass2"es the ris- fro" the ti"e of !e$i)er/.

http://www.businessdictionary.com/definition/event.html


http://www.businessdictionary.com/definition/chance.html


http://www.businessdictionary.com/definition/accident.html

http://www.businessdictionary.com/definition/force.html

http://www.businessdictionary.com/definition/person.html


http://www.businessdictionary.com/definition/control.html



http://www.businessdictionary.com/definition/accident.html

http://www.businessdictionary.com/definition/force.html






(. 7here a+t2a$ !e$i)er/ has 3een !e$a/e! thro2#h the fa2$t either the 32/er or

se$$er the #oo!s are at the ris- of the -*rt *t +*t with rese+t to an/ $oss whi+h

"i#ht not ha)e o++2rre! 32t for s2+h fa2$t. In this +ase the $aw 2nishes the art/

at fa2$t.

RIS? OF LOSS B8 FORT:ITO:S EVENT AFTER THE PERFECTION B:T BEFORE THE

DELIVER8 &3efore ownershi is transferre!'

- The ris- of $oss 3/ a fort2ito2s e)ent witho2t the se$$ers fa2$t is 3orne 3/ the !r as an

e+etion to the r2$e of res perit domino.

- So an# o3$i#ation sa 32/er sa a#3a/a! "2a!a/on #ihaon if wa$a a si/a -a3a/a! or

if ni3a/a! na si/a !i$i na ni/a "a re+o)er fro" the se$$er a$tho2#h an# o3$i#ation 2! sa

se$$er sa a#!e$i)er na etin#2ish na 3e+a2se of $oss of the thin#.

- First ara#rah te$$s that 2n$ess otherwise a#ree! the #oo!s re"ain at the se$$ers ris-

2nti$ the ownershi is transferre! to the 32/er. eanin# sa"tan# !i$i a i!e$i)er sa

se$$er an# 32tan# or sa"tan# naa a sa se$$eran# ris- naa #ihaon ni/a.

Art. 155. S!0t t% t! -r%"&'&%#' %+ t&' T&t!, !r! /%%$' *r! '%$ * -!r'%# % &'

#%t t! %#!r t!r!%+, *#$ % $%!' #%t '! t! #$!r *t%r&t %r &t t! 0%#'!#t %+

t! %#!r, t! !r *02&r!' #% !tt!r t&t! t% t! /%%$' t*# t! '!!r *$, #!'' t!

%#!r %+ t! /%%$' &' &' 0%#$0t -r!0$!$ +r% $!#&#/ t! '!!r<' *t%r&t t% '!.

N%t&#/ &# t&' T&t!, %!"!r, '* *++!0t

(1) T! -r%"&'&%#' %+ *# +*0t%r'< *0t, r!0%r$&#/ *', %r *# %t!r -r%"&'&%# %+ *

!#*&#/ t! *--*r!#t %#!r %+ /%%$' t% $&'-%'! %+ t! *' &+ ! !r! t! tr! %#!r

t!r!%+

() T! "*&$&t %+ *# 0%#tr*0t %+ '*! #$!r 't*tt%r -%!r %+ '*! %r #$!r t! %r$!r %+ *

0%rt %+ 0%-!t!#t r&'$&0t&%#

(3) =r0*'!' *$! &# * !r0*#t<' 't%r!, %r &# +*&r', %r *r;!t', &# *00%r$*#0! &t t!

C%$! %+ C%!r0! *#$ '-!0&* *'. (#)

SALE B8 A PERSON NOT THE O7NER



Genera$ R2$e No one +an #i)e what he has not &7a$a/ tawo n#a "a-ahata# sa 32tan# -2n#

wa$a na ni/a n#a 32tan#

E+etion

1. 7here the owner of the #oo!s is 3/ his +on!2+t re+$2!e! fro" !en/in# the se$$ersa2thorit/ to se$$

Ea"$e Naa/ /2ta n#a #i3a$i#/a. An# na#3a$i#/a !i$i #/2! "ao an# tin2o! n#a ta# i/a.

Pero a# 62estion sa tin2o! n#a ta# i/a sa /2ta !2rin# sa hearin# sa +ri"ina$ +ase n#a

#iasa-a a#ainst aton# tawo n#a n#a3a$i#/a niin#on si/a n#a #it2#2tan ni/a an#

a#3a$i#/a. An# res2$ta ani "a a+62it &"a-a!a2# an# -aton# na#3a$i#/a' 2# an# -aton#

na#a$it "ahi"o n#a "ao na an# owner sa roert/ t2n#o! -a/ !i$i na -a!en/ an# ta#

i/a sa i/an# #iin#on n#a #it2#2tan ni/a an# -aton# tawo sa a#3a$i#/a.

(. 7here the $aw ena3$es the aarent owner to !isose of the #oo!s as if he were the tr2e

owner thereof.

9Ea"$e PD 10(; RA No. ,1*J an! Re)ise! A!"inistrati)e Co!e

*. 7here the sa$e is san+tione! 3/ stat2tor/ or >2!i+ia$ a2thorit/.

,. 7here the sa$e is "a!e at "er+hants stores fairs or "ar-ets

0. 7here the se$$er has a )oi!a3$e tit$e whi+h has not 3een a)oi!e! at the ti"e of the sa$e%

an!

J. 7here se$$er s23se62ent$/ a+62ires tit$e

Art. 156. !r! t! '!!r %+ /%%$' *' * "%&$*! t&t! t!r!t%, t &' t&t! *' #%t !!#

*"%&$!$ *t t! t&! %+ t! '*!, t! !r *02&r!' * /%%$ t&t! t% t! /%%$', -r%"&$!$ !

' t! &# /%%$ +*&t, +%r "*!, *#$ &t%t #%t&0! %+ t! '!!r<' $!+!0t %+ t&t!. (#)

SALE B8 ONE HAVING A VOIDABLE TITLE

Re62isites for a+62isition of #oo! tit$e 3/ the 32/er

If an# se$$er na/ )oi!a3$e tit$e &)a$i! 2nti$ ann2$$e!' sa #oo!s an# 32/er na-a a+62ire #oo! tit$e

sa #oo!s -2n# #ia$it ni/a

a. Before the tit$e of the se$$er has 3een a)oi!e!%



3. In #oo! faith for )a$2e% an!

+. 7itho2t noti+e of the se$$ers !efe+t of tit$e

BASIS OF THE R:LE Base! on the rin+i$e that where $oss has haene! whi+h "2st fa$$ on

one of two inno+ent ersons it sho2$! 3e 3orne 3/ hi" who is the o++asion of the $oss.

Ea"$e

A "inor #i3a$i#/a an# i/an# sa-/anan -an# B "a>or a#e. :n!er the $aw "ao "ani si/a an#

2sa sa )oi!a3$e +ontra+t where an# 2sa -a/ "inor an# 2sa !i$i. Then #i3a$i#/a ni B an#

sa-/anan -an# C who a+te! in #oo! faith.

So in this +ase si C na-a a+62ire na 2# tit$e sa sa-/anan h2"an sa !e$i)er/ if an# +ontra+t wa$a

a na ann2$$e!.

Art. 157. A $%0!#t %+ t&t! &# &0 &t &' 't*t!$ t*t t! /%%$' r!+!rr!$ t% t!r!&# & !

$!&"!r!$ t% t! !*r!r, %r t% t! %r$!r %+ *# -!r'%# #*!$ &# '0 $%0!#t &' *

#!/%t&*! $%0!#t %+ t&t!. (#)

OST COON FORS OF DOC:ENTS OF TITLE

a. Bi$$ of La!in#9 a +ontra+t or re+eit for the transort of #oo!s an! their !e$i)er/ to the

erson na"e! therein to or!er or to 3earer. :s2a$$/ in)o$)es three ersons the +arriershier an! +onsi#nee

3. Do+- 7arrant9 an instr2"ent #i)en 3/ !o+- owners to an i"orter of #oo!s wareho2se!

on a !o+- re+o#niin# the i"orters tit$e to the sai! #oo!s.

+. 7areho2se Re+eit9 a +ontra+t or re+eit for #oo!s !eosite! with a wareho2se"an

+ontainin# the $atters 2n!erta-in# to ho$! an! !e$i)er the sai! #oo!s to a se+ifie!

erson to or!er or to 3earer.

CLASSES OF DOC:ENTS OF TITLES

1. Ne#otia3$e !o+2"ents of tit$e9 those 3/ ter"s of whi+h the 3ai$ee 2n!erta-es to !e$i)er

the #oo!s to the 3earer an! those 3/ the ter"s of whi+h the 3ai$ee 2n!erta-es to !e$i)er

the #oo!s to the or!er of a se+ifie! erson



(. Non9ne#otia3$e !o+2"ents of tit$e9 those 3/ the ter"s of whi+h the #oo!s +o)ere! are

!e$i)era3$e to a se+ifie! erson.

Art. 158. A #!/%t&*! $%0!#t %+ t&t! * ! #!/%t&*t!$ $!&"!r

(1) !r! t! t!r' %+ t! $%0!#t t! 0*rr&!r, *r!%'!*# %r %t!r *&!! &''&#/

t! '*! #$!rt*;!' t% $!&"!r t! /%%$' t% t! !*r!r %r

() !r! t! t!r' %+ t! $%0!#t t! 0*rr&!r, *r!%'!*# %r %t!r *&!! &''&#/

t! '*! #$!rt*;!' t% $!&"!r t! /%%$' t% t! %r$!r %+ * '-!0&+&!$ -!r'%#, *#$ '0 -!r'%#

%r * ''!2!#t !#$%r'!! %+ t! $%0!#t *' &#$%r'!$ &t &# *#; %r t% t! !*r!r.

!r! t! t!r' %+ * #!/%t&*! $%0!#t %+ t&t! t! /%%$' *r! $!&"!r*! t% !*r!r %r

!r! * #!/%t&*! $%0!#t %+ t&t! *' !!# &#$%r'!$ &# *#; %r t% !*r!r, *# %$!r

* &#$%r'! t! '*! t% &'!+ %r t% *# '-!0&+&!$ -!r'%#, *#$ &# '0 0*'! t! $%0!#t

'* t!r!*+t!r ! #!/%t&*t!$ %# t! !#$%r'!!#t %+ '0 !#$%r'!!. (#)

Art. 159. A #!/%t&*! $%0!#t %+ t&t! * ! #!/%t&*t!$ t! !#$%r'!!#t %+ t!

-!r'%# t% %'! %r$!r t! /%%$' *r! t! t!r' %+ t! $%0!#t $!&"!r*!. S0

!#$%r'!!#t * ! &# *#;, t% !*r!r %r t% * '-!0&+&!$ -!r'%#. I+ &#$%r'!$ t% * '-!0&+&!$

-!r'%#, &t * ! */*&# #!/%t&*t!$ t! !#$%r'!!#t %+ '0 -!r'%# &# *#;, t% !*r!r

%r t% *#%t!r '-!0&+&!$ -!r'%#. S'!2!#t #!/%t&*t&%#' * ! *$! &# &;! *##!r. (#)

NEGOTIATION OF NEGOTIABLE DOC:ENT B8 INDORSEENT

1. If in!orse! in 3$an- or to 3earer the !o+2"ent 3e+o"es ne#otia3$e 3/ !e$i)er/.

(. If in!orse! to a se+ifie! erson it "a/ 3e a#ain ne#otiate! in 3$an- to 3earer or to

another se+ifie! erson.

- De$i)er/ a$one is not s2ffi+ient.

Art. 151. I+ * $%0!#t %+ t&t! &0 0%#t*&#' *# #$!rt*;&#/ * 0*rr&!r,

*r!%'!*# %r %t!r *&!! t% $!&"!r t! /%%$' t% !*r!r, t% * '-!0&+&!$ -!r'%# %r %r$!r

%+ * '-!0&+&!$ -!r'%# %r &0 0%#t*&#' %r$' %+ &;! &-%rt, *' -*0!$ -%# &t t! %r$'

?#%t #!/%t&*!,@ ?#%#>#!/%t&*!@ %r t! &;!, '0 $%0!#t * #!"!rt!!'' !



#!/%t&*t!$ t! %$!r *#$ &' * #!/%t&*! $%0!#t %+ t&t! &t&# t! !*#&#/ %+ t&'

T&t!. Bt #%t&#/ &# t&' T&t! 0%#t*&#!$ '* ! 0%#'tr!$ *' &&t&#/ %r $!+&#&#/ t! !++!0t

-%# t! %&/*t&%#' %+ t! 0*rr&!r, *r!%'!*#, %r %t!r *&!! &''&#/ * $%0!#t %+

t&t! %r -*0&#/ t!r!%# t! %r$' ?#%t #!/%t&*!,@ ?#%#>#!/%t&*!,@ %r t! &;!. (#)

NEGOTIABLE DOC:ENTS OF TITLE AR?ED 4NON9NEGOTIABLE5

If !o+2"ent 3ears the wor! 4non9ne#otia3$e5 it wi$$ ha)e no effe+t an! the !o+2"ent +ontin2es

to 3e ne#otia3$e.

Art. 1511. A $%0!#t %+ t&t! &0 &' #%t &# '0 +%r t*t &t 0*# ! #!/%t&*t!$

$!&"!r * ! tr*#'+!rr!$ t! %$!r $!&"!r t% * -r0*'!r %r $%#!!. A #%#>

#!/%t&*! $%0!#t 0*##%t ! #!/%t&*t!$ *#$ t! !#$%r'!!#t %+ '0 * $%0!#t /&"!'

t! tr*#'+!r!! #% *$$&t&%#* r&/t. (#)

TRANSFER OF A NON9NEGOTIABLE DOC:ENTS

- A non9ne#otia3$e !o+2"ents of tit$e +annot 3e ne#otiate!.

- N!"!rt!!'', &t 0*# ! tr*#'+!rr!$ %r *''&/#!! *02&r!' %# t! r&/t' 't*t!$ &#

Art&0! 1514

- E"!# &+ t! $%0!#t &' &#$%r'!$, t! tr*#'+!r!! *02&r!' %# #% *$$&t&%#* r&/t.

Art. 151. A #!/%t&*! $%0!#t %+ t&t! * ! #!/%t&*t!$

(1) B t! %#!r t!r!+%r %r

() B *# -!r'%# t% % t! -%''!''&%# %r 0't%$ %+ t! $%0!#t *' !!# !#tr't!$

t! %#!r, &+, t! t!r' %+ t! $%0!#t t! *&!! &''&#/ t! $%0!#t #$!rt*;!'

t% $!&"!r t! /%%$' t% t! %r$!r %+ t! -!r'%# t% % t! -%''!''&%# %r 0't%$ %+ t!

$%0!#t *' !!# !#tr't!$, %r &+ *t t! t&! %+ '0 !#tr't&#/ t! $%0!#t &' &# '0

+%r t*t &t * ! #!/%t&*t!$ $!&"!r. (#)

- This arti+$e ta$-s a3o2t the erson who "a/ ne#otiate a !o+2"ent &Refer to the arti+$e'

Art. 1513. A -!r'%# t% % * #!/%t&*! $%0!#t %+ t&t! *' !!# $ #!/%t&*t!$

*02&r!' t!r!



(1) S0 t&t! t% t! /%%$' *' t! -!r'%# #!/%t&*t&#/ t! $%0!#t t% & *$ %r *$ *&&t

t% 0%#"! t% * -r0*'!r &# /%%$ +*&t +%r "*! *#$ *'% '0 t&t! t% t! /%%$' *' t!

-!r'%# t% %'! %r$!r t! /%%$' !r! t% ! $!&"!r!$ t! t!r' %+ t! $%0!#t *$ %r

*$ *&&t t% 0%#"! t% * -r0*'!r &# /%%$ +*&t +%r "*! *#$

() T! $&r!0t %&/*t&%# %+ t! *&!! &''&#/ t! $%0!#t t% %$ -%''!''&%# %+ t! /%%$'

+%r & *00%r$&#/ t% t! t!r' %+ t! $%0!#t *' + *' &+ '0 *&!! *$ 0%#tr*0t!$

$&r!0t &t &. (#)

> ?ani si/a n#a arti+$e ta$-s a3o2t the ri#hts of the erson to who" the !o+2"ents has 3een

ne#otiate!.

S2+h erson a+62ires

1. The t&t! %+ t! -!r'%# #!/%t&*t&#/ t! $%0!#t o)er the #oo!s +o)ere! 3/ the

!o+2"ent%

(. The t&t! %+ t! -!r'%# ( $!-%'&t%r %r %#!r' to whose or!er 3/ the ter"s of the

!o+2"ent the #oo!s were to 3e !e$i)ere! o)er s2+h #oo!s.

*. The $&r!0t %&/*t&%# %+ t! *&!! &wareho2se"an or +arrier' to ho$! ossession of the

#oo!s for hi" as if the 3ai$ee ha! +ontra+te! !ire+t$/ with hi".

Ea"$e If na-a 2r+hase -a 2# 32tan# #i-an sa -awatan /o2 a+62ire no ri#ht o)er the #oo!s

3e+a2se an# thief wa$a na/ ri#ht to transfer 3isan a 2 #an# 2r+haser -a/ inno+ent 2r+haser or

wa$a #/2/ a$a"a# n#a -inawat !ia/ to.

Art. 1514. A -!r'%# t% % * $%0!#t %+ t&t! *' !!# tr*#'+!rr!$, t #%t #!/%t&*t!$,

*02&r!' t!r!, *' */*&#'t t! tr*#'+!r%r, t! t&t! t% t! /%%$', '!0t t% t! t!r' %+ *#

*/r!!!#t &t t! tr*#'+!r%r.

I+ t! $%0!#t &' #%#>#!/%t&*!, '0 -!r'%# *'% *02&r!' t! r&/t t% #%t&+ t! *&!!

% &''!$ t! $%0!#t %+ t! tr*#'+!r t!r!%+, *#$ t!r! t% *02&r! t! $&r!0t

%&/*t&%# %+ '0 *&!! t% %$ -%''!''&%# %+ t! /%%$' +%r & *00%r$&#/ t% t! t!r' %+

t! $%0!#t.

=r&%r t% t! #%t&+&0*t&%# t% '0 *&!! t! tr*#'+!r%r %r tr*#'+!r!! %+ * #%#>#!/%t&*!

$%0!#t %+ t&t!, t! t&t! %+ t! tr*#'+!r!! t% t! /%%$' *#$ t! r&/t t% *02&r! t!



%&/*t&%# %+ '0 *&!! * ! $!+!*t!$ t! !" %+ *# *tt*0!#t %+ !:!0t&%# -%#

t! /%%$' * 0r!$&t%r %+ t! tr*#'+!r%r, %r * #%t&+&0*t&%# t% '0 *&!! t!

tr*#'+!r%r %r * ''!2!#t -r0*'!r +r% t! tr*#'+!r %+ * ''!2!#t '*! %+ t! /%%$'

t! tr*#'+!r%r. (#)

RIGHT OF =ERSON TO HO DOCENT HAS BEEN TRANSFERRED

S2+h erson a+62ires

1. The tit$e to the #oo!s as a#ainst the transferor

(. The ri#ht to notif/ the 3ai$ee of the transfer thereof

*. The ri#ht thereafter to a+62ire the o3$i#ation of the 3ai$ee to ho$! the #oo!s for hi".

The ri#ht of the transferee is NOT ABSOL:TE as it is s23>e+t to the ter"s of an/ a#ree"ent

with the transferor.

RIGHTS OF THIRD =ERSON TO GOODS HERE DOCENT HAS BEEN

TRANSFERRED

1. The transfer of a non9ne#otia3$e !o+2"ent !oes not effe+t !e$i)er/ of the #oo!s.

. If the !o+2"ent is ne#otia3$e the #oo!s +annot 3e atta+he! or 3e $e)ie! 2n!er an

ee+2tion 2n$ess the !o+2"ent 3e first s2rren!ere! to the 3ai$ee or its ne#otiation

en>oine!.

Art. 1515. !r! * #!/%t&*! $%0!#t %+ t&t! &' tr*#'+!rr!$ +%r "*! $!&"!r, *#$ t!

!#$%r'!!#t %+ t! tr*#'+!r%r &' !''!#t&* +%r #!/%t&*t&%#, t! tr*#'+!r!! *02&r!' * r&/t

*/*&#'t t! tr*#'+!r%r t% 0%-! & t% !#$%r'! t! $%0!#t #!'' * 0%#tr*r &#t!#t&%#

*--!*r'. T! #!/%t&*t&%# '* t*;! !++!0t *' %+ t! t&! !# t! !#$%r'!!#t &' *0t*

*$!. (#)

TRANSFER OF ORDER DOC:ENT 7ITHO:T INDORSEENT

The fo$$owin# are the ri#hts of the erson to who" an or!er !o+2"ent of tit$e whi+h "a/ not 3e

roer$/ ne#otiate! 3/ "ere !e$i)er/ has 3een !e$i)ere! witho2t in!orse"ent

1. The ri#ht to the #oo!s as a#ainst the transferor%



(. The ri#ht to +o"e$ the transferor to in!orse the in!orse"ent.

If the intention is "ere$/ to transfer the transferee has no ri#ht to a+62ire the transferor to

in!orse the instr2"ent.

Art. 1516. A -!r'%# % +%r "*! #!/%t&*t!' %r tr*#'+!r' * $%0!#t %+ t&t!

!#$%r'!!#t %r $!&"!r, &#0$&#/ %#! % *''&/#' +%r "*! * 0*& '!0r!$ *

$%0!#t %+ t&t! #!'' * 0%#tr*r &#t!#t&%# *--!*r', *rr*#t'

(1) T*t t! $%0!#t &' /!#&#!

() T*t ! *' * !/* r&/t t% #!/%t&*t! %r tr*#'+!r &t

(3) T*t ! *' ;#%!$/! %+ #% +*0t &0 %$ &-*&r t! "*&$&t %r %rt %+ t!

$%0!#t *#$

(4) T*t ! *' * r&/t t% tr*#'+!r t! t&t! t% t! /%%$' *#$ t*t t! /%%$' *r! !r0*#t*!

%r +&t +%r * -*rt&0*r -r-%'!, !#!"!r '0 *rr*#t&!' %$ *"! !!# &-&!$ &+ t!

0%#tr*0t %+ t! -*rt&!' *$ !!# t% tr*#'+!r &t%t * $%0!#t %+ t&t! t! /%%$'

r!-r!'!#t!$ t!r!. (#)

This arti+$e treats of the warranties or $ia3i$ities of a erson ne#otiatin# or transferrin# a

!o+2"ent. &P$ease refer to the a3o)e arti+$e'

Art. 1517. T! !#$%r'!!#t %+ * $%0!#t %+ t&t! '* #%t *;! t! !#$%r'!r &*! +%r

*# +*&r! %# t! -*rt %+ t! *&!! % &''!$ t! $%0!#t %r -r!"&%' !#$%r'!r' t!r!%+

t% ++& t!&r r!'-!0t&"! %&/*t&%#'. (#)

INDORSER NOT A G:ARANTOR

The in!orse"ent of a negotiable instrument has a !o23$e effe+t

-It is at the sa"e ti"e a +on)e/an+e of the instr2"ent% an!

- Contra+t of the in!orser with the in!orsee that on +ertain +on!itions the in!orser wi$$

a/ the instr2"ent if the art/ ri"ari$/ $ia3$e fai$s to !o so.

The in!orse"ent of a document of title a"o2nts "ere$/ to a +on)e/an+e 3/ the in!orser not a

+ontra+t of #2arant/.



Art. 1518. T! "*&$&t %+ t! #!/%t&*t&%# %+ * #!/%t&*! $%0!#t %+ t&t! &' #%t &-*&r!$

t! +*0t t*t t! #!/%t&*t&%# *' * r!*0 %+ $t %# t! -*rt %+ t! -!r'%# *;&#/ t!

#!/%t&*t&%#, %r t! +*0t t*t t! %#!r %+ t! $%0!#t *' $!-r&"!$ %+ t! -%''!''&%# %+

t! '*! %'', t!+t, +r*$, *00&$!#t, &'t*;!, $r!'', %r 0%#"!r'&%#, &+ t! -!r'%# t%

% t! $%0!#t *' #!/%t&*t!$ %r * -!r'%# t% % t! $%0!#t *' ''!2!#t

#!/%t&*t!$ -*&$ "*! t!r!+%r &# /%%$ +*&t &t%t #%t&0! %+ t! r!*0 %+ $t, %r %'',

t!+t, +r*$, *00&$!#t, &'t*;!, $r!'' %r 0%#"!r'&%#. (#)

9:n!er this arti+$e a ne#otia3$e !o+2"ent "a/ 3e ne#otiate! 3/ an/ erson in ossession of the

sa"e howe)er s2+h ossession "a/ ha)e 3een a+62ire!.

9 This arti+$e sea-s of the theft of the !o+2"ent an! not of the #oo!s +o)ere! 3/ s2+h !o+2"ent

Art. 1519. I+ /%%$' *r! $!&"!r!$ t% * *&!! t! %#!r %r * -!r'%# %'! *0t &#0%#"!&#/ t! t&t! t% t! t% * -r0*'!r &# /%%$ +*&t +%r "*! %$ &#$ t! %#!r *#$

* #!/%t&*! $%0!#t %+ t&t! &' &''!$ +%r t! t! 0*##%t t!r!*+t!r, &! &# -%''!''&%#

%+ '0 *&!!, ! *tt*0!$ /*r#&'!#t %r %t!r&'! %r ! !"&!$ #$!r *# !:!0t&%#

#!'' t! $%0!#t ! +&r't 'rr!#$!r!$ t% t! *&!! %r &t' #!/%t&*t&%# !#%&#!$. T!

*&!! '* &# #% 0*'! ! 0%-!!$ t% $!&"!r - t! *0t* -%''!''&%# %+ t! /%%$' #t& t!

$%0!#t &' 'rr!#$!r!$ t% & %r &-%#$!$ t! 0%rt. (#)

ATTACHENT OR LEV8 :PON THE GOODS COVERED B8 A NEGOTIABLE

INSTR:ENT

7hi$e the #oo!s are in the ossession of the 3ai$ee the #oo!s +annot 3e atta+he! or $e)ie! 2n!er

an ee+2tion 2n$ess the !o+2"ent 3e first s2rren!ere! or its ne#otiation rohi3ite! 3/ the +o2rt.

The 3ai$ee +annot 3e +o"e$$e! to !e$i)er the ossession of the #oo!s 2nti$ the !o+2"ent is

s2rren!ere! to hi" or i"o2n!e! 3/ the +o2rt.

Art. 15. A 0r!$&t%r %'! $!t%r &' t! %#!r %+ * #!/%t&*! $%0!#t %+ t&t! '* !

!#t&t!$ t% '0 *&$ +r% 0%rt' %+ *--r%-r&*t! r&'$&0t&%# &##0t&%# *#$ %t!r&'! &#*tt*0&#/ '0 $%0!#t %r &# '*t&'+&#/ t! 0*& !*#' t!r!%+ *' &' *%!$ *t * %r

&# !2&t &# r!/*r$ t% -r%-!rt &0 0*##%t r!*$& ! *tt*0!$ %r !"&!$ -%#

%r$&#*r !/* -r%0!''. (#)

Art. 151. !t!r &t &' +%r t! !r t% t*;! -%''!''&%# %+ t! /%%$' %r %+ t! '!!r t% '!#$

t! t% t! !r &' * 2!'t&%# $!-!#$&#/ &# !*0 0*'! %# t! 0%#tr*0t, !:-r!'' %r &-&!$,



PRES:PTION9 The 32/er "2st ta-e the #oo!s fro" the se$$ers $a+e of 32siness or resi!en+e

rather than the se$$er to !e$i)er the" to the 32/er.

TIE OF DELIVER8 OF GOODS SOLD

It is a$so !eter"ine! 3/ the a#ree"ent of the arties or in the a3sen+e thereof 3/ the 2sa#e of

tra!e.

*. I+ #% t&! &' +&:!$ t! 0%#tr*0t> then the se$$er is 3o2n! to sen! the #oo!s to the

32/er within a reasona3$e ti"e.

REASONABLE TIE9 a 62estion of fa+t an! !een!ent 2on the +ir+2"stan+es

atten!in# the arti+2$ar transa+tion

. I+ t! 0%#tr*0t -r%"&$!' * +&:!$ t&! +%r t! -!r+%r*#0!9 the 62estion is whether ti"e

is of essen+e an! if so whether +orre+t erfor"an+e was offere! within that ti"e.

- If ti"e is not of essen+e the 62estion is whether +orre+t erfor"an+e was offere! within

a reasona3$e ti"e.

0. !r! t! 0%#tr*0t $%!' #%t '-!0&+ t! t&! +%r $!&"!r> In s2+h +ase the 32/er

+annot "a-e ti"e the essen+e of the +ontra+t witho2t #i)in# the se$$er noti+e of his

intention to +an+e$ 2n$ess !e$i)er/ is "a!e on or 3efore a fie! ti"e.

HO:RS OF DELIVER8 OF GOODS SOLD

The !e"an! or ten!er of a !e$i)er/ to 3e effe+t2a$ "2st 3e "a!e at a REASONABLE HO:R

OF THE DA8.

REASONABLE HO:R9 a 62estion of fa+t an! !een!ent 2on the +ir+2"stan+es atten!in# the

arti+2$ar transa+tion

9In +ase of #oo!s whi+h are 32$-/ or nee!e! se+ia$ +are an ho2r "i#ht 2nreasona3$e whi+h

wo2$! not 3e so in an or!inar/ a/"ent of a s"a$$ a"o2nt of "one/.



Art. 15. !r! t! '!!r $!&"!r' t% t! !r * 2*#t&t %+ /%%$' !'' t*# ! 0%#tr*0t!$

t% '!, t! !r * r!!0t t!, t &+ t! !r *00!-t' %r r!t*&#' t! /%%$' '% $!&"!r!$,

;#%&#/ t*t t! '!!r &' #%t /%&#/ t% -!r+%r t! 0%#tr*0t &# +, ! 't -* +%r t! *t

t! 0%#tr*0t r*t!. I+, %!"!r, t! !r *' '!$ %r $&'-%'!$ %+ t! /%%$' $!&"!r!$ !+%r!

! ;#%' t*t t! '!!r &' #%t /%&#/ t% -!r+%r &' 0%#tr*0t &# +, t! !r '* #%t !

&*! +%r %r! t*# t! +*&r "*! t% & %+ t! /%%$' '% r!0!&"!$.

!r! t! '!!r $!&"!r' t% t! !r * 2*#t&t %+ /%%$' *r/!r t*# ! 0%#tr*0t!$ t% '!,

t! !r * *00!-t t! /%%$' &#0$!$ &# t! 0%#tr*0t *#$ r!!0t t! r!'t. I+ t! !r

*00!-t' t! %! %+ t! /%%$' '% $!&"!r!$ ! 't -* +%r t! *t t! 0%#tr*0t r*t!.

!r! t! '!!r $!&"!r' t% t! !r t! /%%$' ! 0%#tr*0t!$ t% '! &:!$ &t /%%$' %+ *

$&++!r!#t $!'0r&-t&%# #%t &#0$!$ &# t! 0%#tr*0t, t! !r * *00!-t t! /%%$' &0

*r! &# *00%r$*#0! &t t! 0%#tr*0t *#$ r!!0t t! r!'t.

I# t! -r!0!$&#/ t% -*r*/r*-', &+ t! '!0t *tt!r &' &#$&"&'&!, t! !r * r!!0t

t! %! %+ t! /%%$'.

T! -r%"&'&%#' %+ t&' *rt&0! *r! '!0t t% *# '*/! %+ tr*$!, '-!0&* */r!!!#t, %r 0%r'!

%+ $!*&#/ !t!!# t! -*rt&!'. (n'

DELIVER8 OF GOODS LESS THAN :ANTIT8 CONTRACTED

9Here the 32/er "a/ re>e+t the #oo!s so !e$i)ere!.

9 The 32/er "a/ howe)er a++et the #oo!s in whi+h +ase he "2st a/ for their

a. ri+e at the +ontra+t rate if he -new that no "ore were to 3e !e$i)ere!% an!

3. the fair )a$2e of the #oo!s if he !i! not -now that the se$$er is #oin# to 3e #2i$t/ of a 3rea+h

of +ontra+t

Ea"$e A #i3a$i#/a -an# B an# 1<< +a)ans sa 32#as for P1<<<.<< er +a)an or a tota$ ri+e of

P1<<<<<.<< sa $2#ar sa 32siness ni B.

If si A ni!e$i)er $an# 2# 0< +a)ans of ri+e we!e n#a !i$i na !awaton ni B -a/ -2$an# "an.

B2tif !awaton ni/a $ia3$e si/a n#a "23a/a! sa rate n#a #i-asa32tan.



B2t if si B !i$i aware n#a an# f2$$ !e$i)er/ !i$i !ia/ "ahi"o "23a/a! $an# si/a sa fair )a$2e of

the #oo!s at the ti"e of the !e$i)er/ e)en if it sho2$! 3e $ess than the +ontra+t ri+e.

DELIVER8 OF GOODS ORE THAN :ANTIT8 CONTRACTED

- The 32/er "a/ a++et the 62antit/ +ontra+te! for an! re>e+t the e+ess ones.

- If he a++ets he "a-es hi"se$f $ia3$e for the ri+e of a$$ of the".

DELIVER8 OF GOODS IED 7ITH OTHERS

- The 32/er "a/ a++et those whi+e are in a++or!an+e

EFEFCT OF INDIVISIBILIT8 OF S:BECT9ATTER

- If the s23>e+t9"atter of the sa$e is in!i)isi3$e the 32/er "a/ re>e+t the who$e of the

#oo!s.

obligations of the vendor notes

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