Norkis Distributors v. The Court of Appeals & Alberto Nepales

Summary

Norkis Distributors sold a Yamaha motorcycle to Alberto Nepales with payment through DBP loan. While a sales invoice was issued and the motorcycle registered in Nepales' name, the unit remained in Norkis' possession. The motorcycle was destroyed in an accident before actual delivery and before the loan proceeds were released. The Supreme Court ruled that no constructive delivery occurred since the sales invoice and registration were merely to facilitate the DBP loan requirements, not to transfer ownership. Applying Article 1496 of the Civil Code and the res perit domino doctrine, the Court held that the risk of loss remained with Norkis as the seller since ownership had not been transferred to the buyer.