Page 366 - Important Provisions of The New Civil Code

Article 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)