LESSON 1 PART 1 Flashcards
refers to its fundamental characteristics as a legal and commercial transaction.
NATURE OF SALE
is essentially a contractual agreement between a
seller and a buyer, where one party transfers ownership of a thing to another party for a price or consideration.
A sale
Characteristic of sales
Bilateral Contract
Onerous Transaction
Commutative
Consensual Nature
Nominal Contract
Principal Contract
meaning both parties have reciprocal obligations.
The seller is obligated to transfer ownership and deliver the goods or services, while the buyer is required to pay the agreed price.
Bilateral Contract
defines a sale as an agreement where both parties undertake specific obligations.
Article 1458 of the Civil Code
both parties exchange something of value. The seller provides the goods or services, while the buyer offers a price in money or its equivalent
Onerous Transaction
the price paid by the buyer and the goods or services provided by the seller are considered to be of equal value. This balance ensures fairness in the transaction, with both parties agreeing on the value exchanged.
Commutative
meaning it is perfected when the seller and buyer agree on the essential elements: the object (thing being sold) and the price. No physical delivery of the object or payment of the price is necessary at this stage
Consensual Nature
meaning it is specifically recognized and regulated under the Civil Code. Articles 1458–1637 outline the rules and provisions governing sales transactions, ensuring the rights and obligations of both parties are upheld.
Nominal Contract
meaning it stands independently and does not rely
on another agreement for its validity. While it may involve accessory arrangements, such as warranties or installment terms, the sale itself is valid and binding on its own, as established in Article 1458.
Principal Contract
According to what article is subject to the Statute of
Frauds and other applicable laws
Article 1483
FORMS OF SALE
In Writing
By Word of Mouth
Partly in Writing and Partly by Word of Mouth
Inferred from the Conduct of the Parties
A contract that provides a tangible record of the agreement, ensuring clarity andreducing disputes. This is the most formal method and is often required for transactions involving significant value, such as the sale of real estate.
written contract
Verbal agreements are also valid, provided they meet the basic requisites of a contract, such as consent, subject matter, and price. However, verbal contracts may be harder to prove in case of disputes
By Word of Mouth
Some agreements may involve a combination of written and verbal communication. For instance, the terms might be documented in writing, while additional details are agreed upon verbally
Partly in Writing and Partly by Word of Mouth
A contract may also be implied from the actions or behavior of the parties involved. For example, if a buyer pays for an item, and the seller accepts the payment and delivers the item, their conduct indicates a valid sale, even without a written or verbal
agreement.
Inferred from the Conduct of the Parties
REQUISITES OF SALES
Consent
Subject Matter
Price
This agreement must be voluntary, free from coercion or fraud, and should be clear and intentional. It may be confirmed verbally or in writing and involves offer and acceptance, which form the foundation of the contract.
Mutual agreement
refers to the item being sold in a sales transaction. It must be clearly defined, legal, and capable of ownership transfer from the seller to the buyer.
This is a fundamental element of a sales contract as it ensures both parties understand what is being exchanged.
Subject Matter
is the agreed-upon amount or equivalent value that the buyer pays for the subject matter in a sale. It must be clearly defined and mutually agreed upon by both parties.
Price
