1. One of the important principles on Sales is res perit domino.
Another important principle
is non nudis pactis sed traditione dominia rerum transferentur.
a. Taking this into account, compare Art 1480 (in relation with Arts 1163 to 1165
and 1262) with Art 1504. From perfection of the contract of sale, which party is
responsible for the loss? Explain your position.
Article 1480 dictates who between the vendee and the vendor suffers the loss depending on
whether the thing sold is a non-fungible thing, a fungible thing sold for a fixed price, or a
fungible thing sold for a price fixed according to weight, number, or measure. For non-fungibles
and fungibles sold for a fixed price, the burden of loss is with the vendee after the perfection of
the contract but before delivery. For fungibles with the price dependent on the weight, number,
or measure, the burden of loss is with the vendor unless the vendee has incurred in delay.
Article 1504, on the other hand, determines first whether or not the ownership has been
transferred. If the ownership has been transferred to the vendee, the vendee bears the loss. Until
then, the vendor suffers the loss unless otherwise agreed upon.
Article 1504 seems to be the better rule between the two. It is more in accordance with the
principle of non nudis pactis sed traditione dominia rerum transferentur, i.e., not by mere consent
but by delivery is ownership transferred. The vendee should not be made to bear the loss when
the goods sold are in the control and possession of the vendor. This is unless, of course, the
parties have agreed upon otherwise, the vendor reserves the ownership merely to secure the
vendee’s performance of his obligations, or the vendee himself is at fault, in which cases the
vendee must bear the loss.
b. After delivery, who suffers the loss? Why?
After delivery, the vendee suffers the loss because ownership has already been transferred to
him. This is in accordance with the principle of res perit domino, i.e., the thing perishes with the
owner.
De Leon pdf pp 104 & 194
Art. 1480. Any injury to or benefit from the thing sold, after the contract has been perfected,
from the moment of the perfection of the contract to the time of delivery, shall be governed by
Articles 1163 to 1165, and 1262.
This rule shall apply to the sale of fungible things, made independently and for a single
price, or without consideration of their weight, number, or measure.
Should fungible things be sold for a price fixed according to weight, number, or measure,
the risk shall not be imputed to the vendee until they have been weighed, counted, or
measured and delivered, unless the latter has incurred in delay. (1452a)
Art. 1504. Unless otherwise agreed, the goods remain at the seller's risk until the ownership
therein is transferred to the buyer, but when the ownership therein is transferred to the buyer the
goods are at the buyer's risk whether actual delivery has been made or not, except that:
(1) Where delivery of the goods has been made to the buyer or to a bailee for the buyer,
in pursuance of the contract and the ownership in the goods has been retained by the
seller merely to secure performance by the buyer of his obligations under the contract, the
goods are at the buyer's risk from the time of such delivery;
(2) Where actual delivery has been delayed through the fault of either the buyer or seller
the goods are at the risk of the party in fault. (n)
Who bears the loss? Art 1480 Art 1504
Before perfection Seller
During perfection Seller
After perfection but Buyer
before delivery
After perfection and Buyer
after delivery
