Page 378 - Important Provisions of The New Civil Code

OBLIGATIONS OF THE VENDOR

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;