Short answer. Yes, as a general rule. Article 1584 of the Civil Code provides that when goods are shipped on collect-on-delivery terms, the buyer is not entitled to examine them before paying the price. The exception is if there is a contrary agreement between the parties or a trade usage that permits inspection before payment.
What the law says
the buyer is not entitled to examine the goods before the payment of the price, in the absence of agreement or usage of trade permitting such examination
Civil Code, Article 1584 — Buyer's Right to Examine the Goods. Read the full provision →
The general right to inspect — and its limits
Article 1584 begins with a general principle favoring buyers: when goods are delivered that the buyer has not previously examined, the buyer is not deemed to have accepted them until they have had a reasonable opportunity to examine whether the goods conform to the contract — unless there is a contrary stipulation. In an ordinary delivery, the seller must allow inspection on request. But the article carves out a clear exception for collect-on-delivery shipments, and that exception is the one that applies to your situation.
The collect-on-delivery exception
When the seller delivers goods to a carrier with the instruction that the carrier should not release the goods to the buyer until the price is paid — whether indicated by the words "collect on delivery" or otherwise — Article 1584 states that "the buyer is not entitled to examine the goods before the payment of the price, in the absence of agreement or usage of trade permitting such examination." The physical delivery to you is conditional on payment first. Inspection comes after you pay, not before. The carrier is acting as the seller's agent to collect payment; allowing inspection before payment would effectively let the buyer receive the goods on credit without the seller's agreement.
When inspection before payment is allowed
The rule is not absolute. Two circumstances allow pre-payment inspection. First, if you and the seller agreed — in the contract, in the order confirmation, or otherwise — that you may inspect before paying, that agreement overrides the default rule. Second, if there is a usage of trade in your industry or locality that permits pre-payment inspection in collect-on-delivery shipments, that usage applies. In practice, both exceptions require affirmative evidence: a clause in the contract, an exchange of messages confirming the right, or a well-established trade custom. If neither exists, the default rule controls and you pay first.
What to do if the goods are defective after you pay
Paying before inspection does not strip you of remedies if the goods turn out to be non-conforming. The general rules on a seller's warranty against defects still apply. Once you have paid and the carrier releases the goods, inspect them promptly and document any defects immediately. Your window to raise a warranty claim and the steps for doing so will depend on the contract terms and applicable rules on the sale. Paying under a collect-on-delivery arrangement is not a waiver of your right to complain about quality — it only determines the sequence of payment and delivery, not your rights once the goods are in your hands.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Gregorio Fule vs. Court of Appeals, et al, G.R. No. 112212, March 2, 1998 — read the decision on LawPhil →