BARTER: What is there in Barter?



The latest craze in the Facebook is a Barter Group. It is a closed group in Facebook wherein members by and themselves exchange goods without using money. 
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What is Barter? The Merriam-Webster Dictionary defines the word which is "to trade by exchanging one commodity for another: to trade goods or services in exchange for other goods or services."

Since time immemorial, the barter as a system has been practiced in the world. It is amazing now that the "barter" has come back to the limelight through these barter groups on Facebook.

Something caught my attention this morning. One member offered to barter his/her lot. This post got awe reactions and otherwise. One prominent issue was the refusal of the member, who post the said public offer, to send any proof of ownership over the said parcel of land. Although eventually, the post was taken down due to the "controversy" enframed as raised by other members of the barter group.

Many of my friends asked if indeed land can be a subject of barter. Is barter of real property such as land is legally feasible? Granting that indeed a barter over the said parcel of land pushed through, would the parties involve acquire legal ownership over the said land?

Basically, barter is bound by the law of contract once the parties thereto agreed to exchange an object or commodity. Anything can be a subject of any contracts provided the object and/or consideration are within the commerce of men. 

Article 1347 of the New Civil Code provides that "All things which are not outside the commerce of men, including the future things, may be the object of a contract. All rights which are not intransmissible may also be the objects of contracts." [Emphasis supplied]

Hence, the land offered in the barter group can be a subject of a valid barter (provided of course the offeror agrees with the exchange of the offeree). It is therefore legally feasible.

Now, when the offeror and offeree entered into an agreement or a barter contract, will the offeree acquire ownership over the said parcel of land?

In the case Heirs of Jose PeƱaflor v. Heirs of Artemio and Lydia Dela Cruz, G.R. 197797, August 9, 2017 the Supreme Court cited the case of Acap v. CA, 321 Phil. 381 (1995), "it was ruled that [u]nder Art. 712 of the Civil Code, the modes of acquiring ownership are generally classified into two (2) classes, namely, the original mode (i.e., through occupation, acquisitive, prescription, law or intellectual creation) and the derivative mode (i.e., through succession mortis causa or tradition as a result of certain contracts, such as sale, barter, donation, assignments or mutuum). [Emphasis on the original]

Clearly, barter is duly acknowledged by law as one of the modes of acquiring ownership as cited in the case-law mentioned above. Accordingly, the acquiring party of the bartered parcel of land can legally obtain ownership over it. Provided, however, that the proper contract and processes as provided for by law are complied and observed with.

In sum, I do not see any legal impediments for any member of a barter group to offer to the public his/her land for barter. Save of course if he/she has no colorable rights over the property he/she is offering for a barter.  

The offer to barter a parcel of land is not overwhelming, at least to me, if anyone has the capacity to meet or equate a counter-offer.

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