Contract of Sale

Question 1

what is a contract of sale

Answer 1

simple agreement between parties, labelled consensual contracts

Question 2

what are the essential requirements for a contract of sale

Answer 2

1. First, they had to reach agreement concerning the object to be sold.
2. Second, they had to reach agreement as to the price to be paid. We will consider each of these points in turn.

Question 3

what does emptio rei speratae mean

Answer 3

the sale of an expected thing. That was valid, because the thing was capable of existing. The price paid will be proportionate to the yield produced

Question 4

what is emptio spei

Answer 4

sale of chance. A promise to give money despite outcome. For example, A says to B that he will pay B £100 for whatever B catches in his fishing net. In that case, there was a valid, enforceable sale even though the net came up empty.

Question 5

what is the difference between emptio speratae and emptio spei

Answer 5

in emptio rei speratae the price will be proportionate to the actual yield, whereas in emptio spei the price will be fixed and the same price will be paid regardless of the yield

Question 6

what are the various rules about price

Answer 6

• the price had to consist in money
• The price had to be generally certain
• the price had to be genuine
• the price had to be reasonable

Question 7

what is an error in negotio

Answer 7

When the error had effect that there was, in fact, no contract

Question 8

what is an error in corpore

Answer 8

arose when one party thought X was being sold and another thought Y was being sold. There was no contract

Question 9

what is an error in substania

Answer 9

greater difficulties. . Suppose the parties agreed to buy and sell a particular thing, but there was a mistake made about some essential characteristic of the thing. That was an error in substantia – an error in the substance of the object.

Question 10

what are the three major stages in the lives of contracts

Answer 10

conclusion, perfection and performance

Question 11

what is meant by perfection in the contract of sale

Answer 11

2. Perfection occurs when the identity, quality and quantity of the thing to be sold are ascertained, and the price determined and the sale becomes unconditional (i.e. any conditions imposed are satisfied).

Question 12

what is meant by performance

Answer 12

when the parties are expected to preform their contractual duties

Question 13

what is conclusion

Answer 13

when the parties reach an agreement to the essential terms of the contract so that the contract can come into existence

Question 14

what is a ‘risk of sale’

Answer 14

the risk in the depreciation in value of a thing due to damage, loss or other factors

Question 15

when should risk occur in a contract of sale

Answer 15

risk passed when agreement had been reached regarding the price and the object and that both price and object had been fully ascertained.

Question 16

what are conditions

Answer 16

is a clause by means of which the effectiveness of a transaction is made dependent upon the occurrence or no occurrence of a future and uncertain event

Question 17

what is a term

Answer 17

a matter of obligation under the contract

Question 18

what are the duties of the seller

Answer 18

1. First, he had to deliver the thing and to give vacant possession.
2. Second, he had to take care of the thing until delivery.
3. Third, he had to guarantee against eviction.
4. Fourth, he had to guarantee against what were called “latent defects”.

Question 19

if the seller failed to make good on his guarantee to keep the object safe what are the two remedies?

Answer 19

1. Could sue the seller using actio redhibitoria (action for recision) he would simply pull out of the contract
2. The purchaser have had actio quanti minoris. Meaning a reduction of price as a result of a defect that had been known to the buyer.