Text of the provision
Art. 1504. Unless otherwise agreed, the goods remain at the seller's risk until the ownership therein is transferred to the buyer, but when the ownership therein is transferred to the buyer the goods are at the buyer's risk whether actual delivery has been made or not, except that:
(1) Where delivery of the goods has been made to the buyer or to a bailee for the buyer, in pursuance of the contract and the ownership in the goods has been retained by the seller merely to secure performance by the buyer of his obligations under the contract, the goods are at the buyer's risk from the time of such delivery;
(2) Where actual delivery has been delayed through the fault of either the buyer or seller the goods are at the risk of the party in fault.
(n)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
Unless agreed otherwise, goods remain at the seller's risk until ownership passes, then at the buyer's risk — except that goods held only to secure the buyer's performance are at the buyer's risk from delivery, and goods whose delivery is delayed by a party's fault are at that party's risk.
Related provisions
- Article 1503 — Reservation of Ownership on Shipment.
- Article 1505 — Sale by a Non-Owner (Nemo Dat).
Cases citing this article
- Spouses Noel John M. Kaw And Josephine Caseres-Kaw vs. Heirs of Marilyn Nodalo, et al, G.R. No. 263047, November 27, 2024 — read the decision on LawPhil →
- Aerospace Chemical Industries vs. Court of Appeals, et al, G.R. No. 108129, September 23, 1999 — read the decision on LawPhil →
- Asset Privitazation Trust vs. T.J. Enterprises, G.R. No. 167195, May 8, 2009 — read the decision on LawPhil →
- Gaisano Cagayan, Inc. vs. Insurance Co. of North America, G.R. No. 147839, June 8, 2006 — read the decision on LawPhil →
- Spouses Gomer Ramos, et al. vs. Spouses Santiago Heruela, et al, G.R. No. 145330, October 14, 2005 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.