Part I - Nature and Form of the Contract Flashcards
Who are the parties to a contract of sale? What are their obligations?
The contract of sale has two parties: the seller and the buyer.
The seller has the obligation to transfer the ownership of and to deliver a determinate thing. The buyer on the other hand, has the obligation to pay a price certain in money or its equivalent.
How can you say that a thing is determinate?
A thing is determinate if it is particularly designated or physically segregated from all others of the same class.
What is the rule when it comes to fungible goods (goods of which any unit is, from its nature or by mercantile custom, treated as the equivalent of any other unit).
There may be a sale of an undivided share of a specific mass. The buyer becomes owner in common of such a share of the mass as the number, weight or measure bought bears to the number, weight, or measure of the mass.
If the mass contains less than the number, weight or measure bought, the buyer becomes the owner of the whole mass and the seller is bound to make good the deficiency from goods of the same kind and quality, unless a contrary intent appears.
What are the difference between a contract of sale and a contract for a piece of work?
In a contract of sale, the goods are manufactured by the seller in his ordinary course of business, or the seller have procured the goods for the general market.
In a contract for a piece of work, the goods is manufactured specially for the customer or upon his special order.
When can you say that the contract is a sale or a barter?
Generally, if the consideration of the contract is partly in money, and party in another thing, of the the intention of the parties are taken into consideration in determining whether a transaction is a barter or not. But if such intention is not clear, we look into the value of the thing given. If the value is higher than the money, it is considered a barter. Otherwise, it will be a sale.
When is a contract of sale perfected?
A contract of sale is perfected when there is a meeting of the minds upon the thing which is the object of the contract and upon the price of the thing.
From that moment, the parties may reciprocally demand performance, subject to the provisions of the law governing the form of contracts.
When is the ownership of the thing in a contract of sale considered as transferred?
The ownership is transferred upon the actual or constructive delivery of the thing. But, the parties can also stipulate that the ownership won’t be transferred if the price is not yet fully paid.
What are the remedies of the seller when it comes to a contract of sale of personal property, wherein the price is payable in installments?
The vendor may exercise the following remedies:
1.) Exact fulfillment of the obligation, should the vendee fail to pay
2.) Cancel the sale, should the vendee’s failure to pay cover two or more installments
3.) Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the vendee’s failure to pay cover two or more installments. In this case, he shall have no further action against the purchaser to recover any unpaid balance of the price. Any agreement to the contrary shall be void.
What are the provisions that governs the injury and benefit from the thing sold in a contract of sale? With regards to:
1.) The obligation of the seller in the delivery of the thing.
2.) The fruits of the thing
3.) The loss of the thing
1.) The seller is obligated to take care of the thing until its delivery with the diligence of a good father of a family.
2.) The buyer is entitled to the fruits of the thing, but he does not require any real rights over it.
3.) If the thing is lost without the fault of the seller or through a fortuitous event, the contract of sale is extinguished. On the other hand, the seller will be liable for the loss of the thing if: the thing is lost by the fault of the seller, or he has incurred delay, or by law or stipulation makes the seller liable, or if the nature of the obligation requires the assumption of risk.
