REPORT
Topics: Effects of the Contract When the Thing Sold has been Lost
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Article 1493
Article 1494
Chapter 3 EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS BEEN LOST Art. 1493. If at the time the contract of sale is perfected, the thing which is the object of the contract has been entirely lost, the contract shall be without any effect. But if the thing should have been lost in part only, the vendee may choose between withdrawing from the contract and demanding the remaining part, paying its price in proportion to the total sum agreed upon. Effect of loss of thing at the time of sale. The loss or injury referred to in this article is one which has taken place before or at the time the contract of sale is perfected. It must be distinguished from the loss or injury mentioned in Articles 1480 and 1504 which occurs after the contract is perfected but prior to the time of delivery. (1) Thing entirely lost. - Where the thing is entirely lost at the time of perfection, the contract is inexistent and void (Art. 1409[3], Civil Code.) because there is no object. (Art. 1318, par. 2, ibid.) (2) Thing only partially lost. - If the subject matter is only partially lost, the vendee may elect between withdrawing from the contract and demanding the remaining part, paying its proportionate price. (Art. 1493, par. 2.) 5152 SALES Art. 1494 Art. 1494 EXAMPLES: (1) S sold his car to B. Unknown to both of them, the car has been totally destroyed before they agreed on the sale. In this case, of the sale there is no valid contract of sale for lack of object. S, as owner, bears "goods ider the loss and B does not have to pay for the price. is made." ( (2) If the car is only partially destroyed, there still remains Both ar of the object. However, since it is not of the character or in the (2) alternat condition contemplated by the parties, the buyer may withdraw partial loss from the contract or demand the delivery of the car, paying its (1) Sal proportionate price, i.e., the market price in its damaged state. sale is divi consideral When a thing considered lost. the consid A thing is lost when it perishes or goes out of commerce (2) Sa or disappears in such a way that its existence is unknown or it price is th cannot be recovered. (Art. 1189[2].) continue The word "perishes" is sufficiently inclusive as to cover a made to case where there has been material deterioration or complete as provid is indivis change in the nature of the thing in such a manner that it loses its thing. former utility taking into consideration the time the contract was entered into. (see 10 Manresa 129.) EXAN Art. 1494. Where the parties purport a sale of ware specific goods, and the goods without the knowledge If 60 of the seller have perished in part or have wholly or the in a material part so deteriorated in quality as to be the substantially changed in character, the buyer may at pric his option treat the sale: sold (1) As avoided; or cav (2) As valid in all of the existing goods or in cav so much thereof as have not deteriorated, and as binding the buyer to pay the agreed price for the goods in which the ownership will pass, if the sale was divisible. I. Effect of loss in case of specific goods. Article 1493 applies to a sale of specific thing. Article 1494, on the other hand, applies only to sales of goods, that is, the objectArt. 1494 EFFECTS OF THE CONTRACT WHEN THE THING SOLD HAS BEEN LOST 53 of the sale consists of a mass of "specific goods" which means "goods identified and agreed upon at the time a contract of sale is made." (Art. 1636.) Both articles have actually the same essence providing two (2) alternative remedies to the buyer in case of deterioration or partial loss of the object prior to the sale. (1) Sale divisible. - The second option is available only if the sale is divisible. (Art. 1494, par. 2.) A contract is divisible when its consideration is made up of several parts. (see Art. 1420.) When the consideration is entire and single, the contract is indivisible. (2) Sale indivisible. - Suppose the sale is not divisible, what price is the buyer to pay for the remaining goods if he elects to continue with the sale? It is believed that the buyer should be made to pay only the proportionate price of the remaining goods as provided for in paragraph 2 of the preceding article. If the sale is indivisible, the object thereof may be considered as a specific thing. EXAMPLE: Suppose the subject matter sold was 100 cavans of rice in the warehouse of 5 at P1,000 per cavan or for a total price of P100,000. If 60 cavans of rice were lost, B may, at his option, withdraw from the contract without the obligation to pay for the rice; or demand the delivery of the 40 cavans, but binding him to pay the agreed price thereof which is P40,000. If the contract is indivisible, that is, the 100 cavans of rice were sold for P100,000 fixed without consideration of the number of cavans, B should be made to pay only the proportionate price of 40 cavans which is also P40,000. STUDY GUIDE
