Sales, In General Flashcards
There is also Sale of hpoe. Wherein no equivalence in the value of prestations. Since obligation of the other party is not certain to arise. Such as lotto
What is the term for this?
Aleatory. Emptio Spei
For the purposes of applying Statute of Frauds, the Sale of personal property priced at P_____ or more is required to be in writing
P500. For Sale of Personal Property only. If Contract of a piece of work, not required tp be in writing regardless of amt.
What is Payment by Cession?
Governed by the Law on Obligations on Payment by Cession or the Financial Rehabilitation and Insolvency Act
Sales, In General. Explain the Ownership rule.
Cotract to Sell vs. Conditional Sale
Conditional Sale - Ownership automatically transfer upon the fulfillment of the condition. I.e. payment of the full price
Contract to Sell - special kind of conditional sale where ownership dpes not automatically pass upon fulfillment. It will only give the right to demand the execution of a deed of sale or to compel the seller to sell
3 Elements of Contract of Sale
- Natural - deemed part of the contract kahit di napag usapan p aware. I.e. warranties
- Accidental - Stipulation by parties
- Essential - required for validity
Sales
We have 3 Elements of Contract of Sale. One is Essential. So what are the Essential elements of a contract of sale? COC
- Consent
- Cause
- Objects - Things or Rights only. Not service
4.
Sales
Consent: 1. Absolute Incapacity
2. Relative Incapacity. Explain.
- Absolute Incapacity -
- Relative Incapacity - Husband and wife cannot sell property to each other (except sepration of property agreed before marriage, judical separation of property)
*Purchare of
-Guardian to ward
-Agent to Principal
-Executors/admins to Estate
-Public Officers to Property of the -State
-Justices & Judges to propert &rights under litigation
Future Inheritance can be valid object of a contract of sale?
No
Emptio Rei Speratae?
Emptio Spei?
- Sale of future things such as wine, milk, butter
- Sale of hope itself. Lotto ticket
Sales
Arras
Earnest Money - Forms part of the purchase price and is proof of perfection of a contract of sale
What is Recto Law and Alternative Remedies of the Seller
Applies to a contract of sale or Personal Property the price of which is payable in INSTALLMENT
*NOT APPLICABLE TO SALES ON CREDIT
Alternative Remedies of the Seller:
1. Exact Fulfillment - only one Unpaid installment
- Cancel the Sale - two or more Unpaid Installments. The Seller is allowed to retain a reaonable amount of the purchase price already paid. ALL
- Foreclose the Chattel Mortgage - Also, two or more Unpaid installments.
IMPT Here!!:
1.Seller cannot recover deficiency pag forclosed yung mismong binenta. Kahit may STIPULATION - Unless iba yung mortgage.
IMPT! Alternative tong Remedies. Meaning, pili lang ng isa. Any agreement to the contrary shall be void!
What is Unconscionable?
Unreasonable
What is Maceda Law?
What are the rights of the buyer?
3 Void Stipulations?
Recission Requirements?
Aka Realty Installment Buyer Act. applies to contract of sale of residential realty on installments wherein the buyer is given protection in case of failure to pay intallments.
Like Recto Law, intallment only not on credit.
*Rights of the Buyer:
1. If Paid less than 2 years:
a. Grace Period - pay the unpaid w/out interest within 60 days. Note that this right can only exercise every 5 years
b. Buyer may sell or assign his interest
c. Pay the entire balance
- Additinal rights after two years of payment:
a. Plus 30 days(1month) Grace periodfor every years of installment payments
b. If the seller exercise hisnright to Rescind the contract, he is required to give CASH SURRENDER VALUE to the buyer:
b.i Mininum of 50% of all payments (including DP)
b.ii Additional 5% per year after five years of installment (ex. 55% on 6th year of payment) max. 90%.
*Void Stipulations:
1. Stipulation na may interest or damages or penalty during grace period
2. Forfieture Clause- clause of the requirement to pay the CSValue.
3. Automatic Cancellation. Kasi may requirements pa prior to rescind
*Recission Requirements:
1. Notice to buyer as intention to rescind
2. Payment of CSValue!
Double Sale Golden Rule
Who has better right among buyers for: 1. Movable Property 2. Immovable
Provided that the buyers are both in good faith (no knowledge pf prior selling), If who has better right:
Movable Property: first possesor
Immovable Property:
1. First to register in good faith,if none,
2. First possesor
3. One with oldest title
What is Encumbrances
Claim against an asset by entity that is not owner
Sales
Implied period of Warranty?
Not less than 60 days nor more than 1 year
What is Redhibitory Defects?
Hidden defect on animals
The sale of animals suffering from clntagious diseases shall be
Void!
Also. The use or service for which they are acquired has been stated in the contract, and they are found to be unfit therefor
Sales T or F
As a general rule, inadequacy of price does not affect contract of sales’ validity
When there is no price agreed upon, the sale is voidable
True
F
Sales
Sale or Return Contract, who is the owner upon delivery to the buyer?
Buyer
Sales
It is the mode by which the ownership is transferred.
Delivery
Sales
4 Types of Constructive Delivery
- Traditio Longa Manu - delivery with long hand. Common delivery
- Constitutum Possesorium - seller continues possession of item. Ex. Bought an item and leave to the seller
- Brevi Manu - implied delivery. You bought house you are renting
- Symbolic Delivery - delivering keys of the place or depository where the movable is stored or placed
- Execution of the Required Formality - thru execution of public instrument
Sales
Delivery receipt by common carrier as a general rule, who is the owner?
Buyer
Sales
Constructive Delivery
I this mode of delivery, seller continues to be in possesion of the property sold not as owner but in some other capacity, like as tenant or lessee.
Constitutum Possessorium
SalesT or F
A breach of warranty affects the validity of the contract of sale
A warranty must be stipulated in order tp bind the parties
F
F. Implied obligation na ng vendor yan
Sales
Dealer’s talk is consired warranty?
Yes. If made by an expert and relied upon by the buyer
Sales
Hidden Deffect. What if bought by expert buyer?
Seller is not liable for breach of warranty against hidden defect
Sales
It is the warranty that goods are reasonably fit for the general purpose for which the same are sold
Warranty of Merchantability
Sales
Sale of animals. Seller will be liable to Buyer if the animals dies within ____ of a disease that existed at the time of sale
3 days
Resedential Dwellings
Commercial buildings
Resedential Lots
Agricultural Land
Which of the ff is outside coverage of Maceda Law?
Commercial Buildings. Cause ML is for Residential Realty on Installment only
Sale or Return
Vs.
Sale on Approval or on Trial
Sale or Return
The Ownership PASSES TO THE BUYER UPON DELIVERY. But he may revest the ownership in the seller by returning or tendering the goods within the time fixed in the contract
Sale on Approval or on Trial
There is also deliver bu NO transfer of ownership yet. Seller is still the
Owner.
The ownership passes to the buyer when:
1. Buyer signifies approval or acceptance or does any other act adopting transaction
2. Pays taxes, unless agreed upon
3. To warrant the thing
4. Transfer ownership
