Contracts for the Sale of Property
71. On whom binding.—Contracts for the transfer of property for consideration are binding on the seller only. Rarely, if ever, is there a payment to bind the bargain. The simple promise to sell is sufficient to constitute a contract to sell. The breaking of a contract to sell renders the breaker of the contract liable for damages only in case he took the initiative in making the contract.
Damages paid for the breaking of a contract to sell, are called hogop. In case an agreement to sell a rice field is broken, the damages are usually one large pig (fifteen or twenty pesos). In the case of questions of this sort over minor property, the hogop may be a death blanket, a small pig, or a chicken.
The following examples will serve to illustrate:
A sends B as a go-between to sell a rice field. B first contracts to sell the field to C. Later, knowing the terms of the sale offered by A to be very advantageous, he sells the field to a kinsman D.
In this case B is liable for the hogop to C.
In the above case B, after contracting to sell the field to C, duly reports to A that C has accepted the terms offered, and that he is raising the amount required for the first payment; that he will go again by agreement with C to receive this first payment on such and such a day. A sells the field to somebody else.
In this case A is liable to C for the hogop, and to B for his fee as go-between.
It becomes a matter of common knowledge that A has a gold neck-ornament for sale. C agrees to purchase at the stated price and A agrees to sell to him. A sells the ornament to somebody else.
A is not liable for the hogop, for the reason that C made the first advances.
In no case can one who makes a contract to buy be held for any payment of damages for breaking his contract.