Law on sales
by the contract of sale one of the contracting parties obligate himself to transfer the ownership and to deliver a determinate thing, and the other to pay therfor a price certain in money or its equivalent
article 1458
characteristic of a contract of sale where in the delivery is to transfer of ownership
purpose
as a rule is by mere consent, since there exist a contract of sale the moment the parties obligate themselves
perfection
determinate thing
subject matter
onerous, since the costs are consideration of the parties is the prestation or promise of the other
cause
since both parties have their respective obligations
bilateral contract
not only because there's a specific designation of the contract but more so because there are specific rules provided by law to govern the rights and obligations of the parties after stipulation
nominate contract
in the sense that there's equivalence in the prestation of the parties
commutative
there's also a sale of hope where there is no equivalence in the value of prestations since the obligation of the other party is not certain to arise
aleatory
a contract for the delivery at a certain price of an article which the vendor in the ordinary course of his business manufactures or procures for the general market whether the same is on hand at the time or not
contract of sale
if the goods are to be manufactured specially for the customer and upon his special order and not for the general market
contract for a piece of work
similarities of contract of sale and contract for a piece of work
there is transfer of ownership
buyer or customer pays the price
distinction between contract of sale and piece of work
as to subject matter
sale- the subject is thing and its delivery
contract for a piece of work- the subject is service
importance of distinction between sale and control for a piece of work
fo purposes of applying the statute of frauds only the sale of personal property priced 500 pesos or more is required to be in writing, Hindi applicable sa contract for a piece of work
there is also a transfer of ownership of the thing delivered and it is likewise governed by the law on sales
dation in payment (dacion en pago)
distinction contract of sale and dacion en pago
sale- source of obligation, no requirement for a pre-existing obligation
dacion en pago- a special form of payment which extinguishes an obligation, there's a need for a pre-existing obligation
it is the consideration of the contract consists partly in money and partly in another thing, in the transaction should be characterized by the manifest intention of the parties
barter
The first thing to consider in a barter
the intention of the parties
thing> cash component (barter)
thing< cash component (sale)
in construing a contract containing provisions characteristic of both the contract of sale and of the contract of agency to sell, The essential clauses of the whole instrument shall be considered.
contract of agency to sell
similarities of contract of sale and agency to sell
things are objects are delivered to the buyer or agent
distinction between contract of sale and contract of agency to sell
sale -there is a transfer of ownership
agency to sell- no transfer of the ownership
sale- risk of loss transfers to the buyer after the delivery
agency to sell- risk of loss remains with the principle owner and does not transfer to the agent
ownership transfers upon the delivery, actual or constructive, even if no total payment of the price has been made yet
absolute sale
the kind of contract of sale where ownership automatically transfers to the buyer up and fulfillment of the condition, which is usually the full payment of the price, without need of a new agreement or to execute a new contract
conditional sale
a special kind of conditional sale where ownership does not automatically pass upon the fulfillment of the condition, it will only give the buyer the right to demand execution of the death of sale or to compare the seller to sell.
contract to sell
it is where the party cannot give consent to any and all contract which may result to the contract being voidable or void
absolute incapacity
what are the elements of a contract of
sale
consent cause and object
minors in those without capacity to act may enter into a valid contract of sale of
necessaries
The party is prohibited from entering some specific transactions with some persons and sometimes over specific things, the incapacity depends
relative incapacity
what is the cause of the contract as to the buyer and as to the seller
buyer- delivery of the object
seller -payment of the price
sale of future thing
emptio rei speratae
sale of Hope
emptio spei
sale of vain hope/ void
vain hope
a separate consideration to give the offeree a definite period within which to decide whether or not to accept an offer there is no perfected contract of sale and does not form part of the purchase price
option money