- Statute
- Civil Code
- Article
- Art. 1597
- Topic
- Actions for Breach of Contract of Sale of Goods
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE VI SALES
- Chapter
- CHAPTER 6 Actions for Breach of Contract of Sale of Goods
- Year
- 1949
- Cited by
- A Supreme Court decision
The provision
Where the goods have not been delivered to the buyer, and the buyer has repudiated the contract of sale, or has manifested his inability to perform his obligations thereunder, or has committed a breach thereof, the seller may totally rescind the contract of sale by giving notice of his election so to do to the buyer. (n)
Intellegal Wiki · In plain terms
Lets a seller cancel the sale outright before the goods are handed over, when the buyer has backed out of the contract, shown he cannot perform his obligations, or otherwise breached it. The seller does this simply by notifying the buyer of his choice to rescind.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In Visayan Sawmill Company v. The Honorable Court of Appeals, the Supreme Court held: Reversed the lower courts and dismissed the case, holding that the agreement was a contract to sell subject to the suspensive condition of the buyer opening an irrevocable letter of credit, that the condition's non-fulfillment meant the obligation to sell never arose, and that permission to dig the scrap iron was mere accommodation and not delivery; rescission was proper under Article 1597.
One leading Supreme Court case applying this provision.
Cases applying this article
- Visayan Sawmill Company v. The Honorable Court of Appeals G.R. No. 83851