- Statute
- Civil Code
- Article
- Art. 1482
- Topic
- Nature and Form of the Contract
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE VI SALES
- Chapter
- CHAPTER 1 Nature and Form of the Contract
- Formerly
- Art. 1454a of the old Civil Code
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
Whenever earnest money is given in a contract of sale, it shall be considered as part of the price and as proof of the perfection of the contract. (1454a)
Intellegal Wiki · In plain terms
When a buyer gives earnest money in a sale, that payment counts as part of the purchase price and serves as proof that the contract has already been perfected. In effect, handing over earnest money signals a binding sale rather than mere negotiation.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In Lino R. Topacio v. Hon. Court of Appeals, the Supreme Court held: Money accepted as earnest money is part of the price and proof of a perfected contract of sale (Article 1482); the seller cannot rescind by merely returning the downpayment, without notarial or judicial rescission (Articles 1592, 1191).
One leading Supreme Court case applying this provision.
Cases applying this article
- Heirs of Cayetano Pangan v. Spouses Rogelio Perreras G.R. No. 157374
- Goldenrod v. Court of Appeals G.R. No. 126812
- Vicente v. Court of Appeals G.R. No. 118347
- Lino R. Topacio v. Hon. Court of Appeals G.R. No. 102606
- Manila Metal Container Corporation v. Philippine National Bank G.R. No. 166862
- San Miguel Properties Philippines v. Spouses Alfredo Huang G.R. No. 137290
- Felix B. Bautista Y Melquiades B. Bautista, Recurrentes, Contra Gabriel Lasam (Hoy Finado), Rosa Carbonel Y Otros, Recurridos G.R. No. 47501
- Enrique Jovellano v. Antonia Lualhati G.R. No. 22488
Other Supreme Court decisions also apply this article.