Page 363 - Important Provisions of The New Civil Code

Article 1503. When there is a contract of sale of

specific goods, the seller may, by the terms of the

contract, reserve the right of possession or

ownership in the goods until certain conditions

have been fulfilled. The right of possession or

ownership may be thus reserved

notwithstanding the delivery of the goods to the

buyer or to a carrier or other bailee for the

purpose of transmission to the buyer.

Where goods are shipped, and by the bill of

lading the goods are deliverable to the seller or

his agent, or to the order of the seller or of his

agent, the seller thereby reserves the ownership

in the goods. But, if except for the form of the bill

of lading, the ownership would have passed to

the buyer on shipment of the goods, the seller's

property in the goods shall be deemed to be only

for the purpose of securing performance by the

buyer of his obligations under the contract.