Capacity to Buy or Sell Flashcards
Who are capacitated to BUY/SELL? (Art. 1489)
All persons who are authorized in this Code to obligate themselves, may enter into a contract of sale, saving the modifications contained in the following articles.
Where necessaries are sold and delivered to a minor or other person without capacity to act, he must pay a reasonable price therefor. Necessaries are those referred to in [194FC]
When are husband and wife allowed to sell property to each other? (Art. 1490)
(1) When a separation of property was agreed upon in the marriage settlements; or
(2) When there has been a judicial separation of property.
What are the reasons why spouses cannot sell to each other?
1) to avoid prejudice to third persons/creditors;
2) to prevent one spouse from unduly influencing the other spouse;
3) to avoid indirect violation on prohibition against donation.
Who else are incapacitated to enter into a contract of sale? (Art. 1491)
1) Guardians wrt persons under their guardianship;
2) Agents;
3) Executors and administrators;
4) Public officers/employees;
5) Justices, judges, prosecuting attorneys, clerks of courts, and other employees connected to the administration of justice
6) Others disqualified by law.
What are the exceptions to the relative incapacity of judicial officer wrt certain properties?
(a) Before it got involved in an action;
(b) Made as payment of professional fee;
(c) Not subject of judicial action;
(d) As contingent fee.
