Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

HOUSE OF REPRESENTATIVES
HBNo_5979°

Introduced by Representative H. Harry L. Roque Jr.

EXPLANATORY NOTE

The Civil Code took effect on 30 August 1950. Since then, our country has endured
tremendous currency turmoil which depreciated the value of the Philippine Peso,

‘The Civil Code, Article 1403, paragraph 2(d), requires in writing any sale of goods,
chattels, or things in action in the amount of not less than five hundred pesos (P500.00) in
order to be enforceable. This required amount of five hundred pesos (P500.00) is unrealistic
Considering the current prices of goods, chattels, or things in action. If we are to comply with
this provision of the law then almost every sale of goods, chattels, or things in action should
be in writing. This will amount to a virtual curtailment of trade and commerce. This bill seeks
‘0 comply with the demands of time by increasing the required amount to ten thousand pesos
(P10,000,00).”

H. HARRY L. ROQUE JR

a
‘itis bill was orginally filed by Senator Miriam Defensor Santiago during the Sixteenth Congres, First
Regular Session


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

Seventeenth Congress
First Regular Session

HOUSE oe REBRRSGNTATIV! ES

Introduced by Representative H. Harry L. Roque Jr.

AMENDING ARTICLE 1403 OFREPUBLIC ACT NO. 386,
ALSO KNOWN AS THE “CIVIL CODE OF THE PHILIPPINES”
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
Section I. The Civil Code of the Philippines, Article 1403, is hereby amended to read
as follows:
“Art. 1403. The following contracts are unenforceable, unless they are
ratified:
() ‘Those entered into in the name of another person by one who
has been given no authority or legal representation, or who has acted beyond
his powers;
(2) Those that do not comply with the Statute of Frauds as set forth
in this number. In the following cases an agreement hereafter made shall be
unenforceable by action, unless the same, or some note or memorandum,
thereof, be in writing, and subscribed by the party charged, or by his agent;
evidence, therefore, of the agreement cannot be received without the writing,

or a secondary evidence of its contents


we

20

(a) An agreement that by its terms is not to be performed within a year
from the making thereof,

(b) A special promise to answer for the debt, default, or miscarriage of
another;

(c) An agreement made in consideration of marriage, other than a
mutual promise to marry;

(d) An agreement for the sale of goods, chattels or things in action, at a
Price not less than [five hundred pesos] TEN THOUSAND
PESOS, unless the buyer accept and receive Part of such goods and
chattels, or the evidences, or some of them, of such things in action
‘or pay at the time some part of the purchase money; but when a
sale is made by auction and entry is made by the auctioneer in his
sales book, at the time of the sale, of the amount and kind of
Property sold, terms of sale, price, names of the purchasers and
Person on whose account the sale is made, it is a sufficient
memorandum;

(©) An agreement of the leasing for a longer period than one year, or
for the sale of real property or of an interest therein:

(f) A representation as to the credit of a third person.”

SECTION 2. Repeating Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent

with the provisions of this Act is hereby repealed, modified, or amended accordingly,


1 SECTION 3. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

2 publication in at least two (2) newspapers of general circulation.

Approved,