Contract of Sale

Question 1

1. Essentalia of the Contract

Answer 1

• Intention to Buy and Sell: one party must agree to buy and the other must agree to sell
• subject matter of sale: They must agree on the object that will be part of the sale and it must be clear.
• Purchase Price: must agree on the purchase price which must be in money, if it is something else then it will be an exchange and not a sale.

Question 2

2. Naturalia of the Contract

Answer 2

• Implied Warranty against Latent Defect

- Implied Warranty against Eviction

Question 3

2.1 Implied Warranty against Latent Defects

Answer 3

• this common law remedy protects the buyer
• if after delivery, the buyer discovers a LD the implied warranty comes into play and remedies are provided.
• the buyer may (a) Cancel the contract and reclaim price if the defect is serious (b) Claim a reduction in price if the defect is not too serious or (c) in appropriate circumstances, along with A and B, claim damages.
• The Consumer Protection Act provides remedies as well such as (a) Replacement (b) Refund and (c) Repair
• The Act only implies if the defect is visible within 6 months of date of purchase.
• The Act requires the seller to point out any defects before the conclusion of the contract in order to escape liability.

Question 4

2.2 Implied Warranty Against Eviction

Answer 4

• if the purchaser is evicted by someone claiming to be the owner, the seller could be liable

Question 5

3. Incindentalia

Answer 5

• eg, the car must be sprayed a certain color