LESSON 1 PART 3 Flashcards
Is a deposit made to a seller that represents a buyer’s good faith to make a purchase such as the acquisition of a new home.
Earnest money
in many ways, this can be considered a deposit on a home, an escrow deposit, or good faith money. It is also called “arras” or something of value to show that the buyer was really in earnest, and given to the
seller to bind the bargain
Earnest money
is the consideration paid for the purpose of holding
one to his promise to buy or sell a determinate thing for a certain period of time, which consideration is separate and distinct from the purchase price.
Option money
Earnest money is part of the purchase price, while option money is separate and distinct from the purchase price.
TRUE
Earnest money is not paid upon the perfection of a contract of sale, while option money is paid for a sale that is yet to be perfected.
FALSE
OBLIGATIONS OF THE VENDOR
- To Take Care Of The Thing
- Obligation to pay taxes and incidents of the sale, unless otherwise agreed upon
- To warrant the thing
- To transfer ownership
- To deliver the determinate or specific thing ncluding the fruits from the moment the obligation to deliver arises and the accessions and accessories thereof.
If the object is entirely lost the contract shall be without any effect.
TRUE
If the thing is lost in part only, the buyer may choose between:
i. Withdrawing from the contract; and
ii. Demanding the remaining part, paying its price in proportion to the partly sum agreed upon.
FALSE(2. TOTAL)
One who has lost any movable or has been unlawfully deprived thereof, may recover it from the person in possession of the same. If the possessor of a movable lost or which the owner has been unlawfully deprived, has acquired it in good faith at a public sale, the owner cannot obtain its return without
reimbursing the price paid therefor.
TRUE
OBLIGATIONS OF THE VENDEE
1.To pay the price
2. To accept delivery
REMEDIES OF AN UNPAID SELLER
I. Ordinary
- Action for Price exercised
- Action for Damages
In this remedy, the seller can sue the buyer to recover the agreed-upon price of the goods that were sold but not yet paid for. This legal action
is a way for the seller to enforce the buyer’s obligation to make payment for the goods
received.
Action for Price exercised
to provide financial compensation to the seller for any losses incurred due to the buyer’s non-payment.
Action for Damages
REMEDIES OF AN UNPAID SELLER
II. Special
- Possessory Lien
- Stoppage in Transit
- Special Right to Resell the Goods Exercised -
- Special Right to Rescind Requisites
a legal right that allows a seller to retain possession of the goods sold until the buyer makes payment for the goods. This gives the seller a form of security for the unpaid amount.
Possessory Lien
an important legal mechanism available to an unpaid seller to protect their interests when the buyer fails to pay for the goods. This remedy allows the seller to intercept the delivery of goods while they are in transit to the buyer.
Stoppage in Transit
one of the remedies available to an unpaid seller in a situation where the buyer has defaulted on payment. This remedy allows the seller to resell the goods to recover the losses incurred due to the buyer’s
non-payment.
Special Right to Resell the Goods Exercised
assures the buyer that the good or service is free from defects, and it is a legally binding commitment. In the event that the product or service fails to
meet the standards set out in it, then the contract provides a specific remedy, such as a replacement or repair.
Warranties
are those that are clearly stated by the seller or written into a contract. And are unwritten guarantees that a product should be of a certain standard or quality. In the Philippines, consumer rights and
product warranties are primarily governed by the Consumer Act of the Philippines (Republic
Act No. 7394).
Implied and Expressed Warranties
Types of Implied Warranties
Warranty of Merchantability
Warranty of Fitness for a Particular Purpose
