Law on Sales

• What does a contract of sale obligate one party to do?

  Transfer ownership and deliver a determinate thing
• What are the two types of contracts of sale?

  Absolute and conditional
• What must the thing in a sale be according to Article 1459?

  Licite
• When is a thing considered determinate?

  When it is particularly designated or physically segregated from others
• What satisfies the requisite of a determinate thing at the time of contract?

  If it can be made determinate without a new agreement
• Can things with potential existence be the object of a contract of sale?

  Yes
• What condition applies to the sale of a mere hope or expectancy?

  It is subject to the condition that the thing will come into existence
• What are future goods in a contract of sale?

  Goods to be manufactured, raised, or acquired after the contract perfection
• What can be sold according to Article 1463?

  An undivided interest in a thing by the sole owner
• What is allowed in the sale of fungible goods?

  A sale of an undivided share of a specific mass
• What happens if the mass contains less than the number bought?

  The buyer becomes the owner of the whole mass
• Can things subject to a resolutory condition be sold?

  Yes
• How should a contract with characteristics of both sale and agency be construed?

  By considering the essential clauses of the whole instrument
• What distinguishes a contract of sale from a contract for a piece of work?

  Whether the goods are manufactured specially for the customer or for the general market
• How is a transaction characterized when it consists partly of money and partly of another thing?

  By the manifest intention of the parties
• When is a transaction considered a barter?

  When the value of the non-money consideration exceeds the money amount
• What makes a price certain according to Article 1469?

  It can be determined with reference to another certain thing
• What happens if the third person cannot fix the price?

  The contract shall be inefficacious unless the parties agree on the price
• What does gross inadequacy of price indicate?

  It may indicate a defect in consent or an intention for a donation
• What happens if the price is simulated?

  The sale is void
• When is the price of securities considered certain?

  When it is fixed for a definite day or in a particular market
• Can the fixing of the price be left to one party's discretion?

  No, it cannot
• What happens if the price cannot be determined?

  The contract is inefficacious
• When is a contract of sale perfected?

  At the moment there is a meeting of minds on the object and price
• What is the status of each lot in an auction?

  Each lot is a separate contract of sale
• When is a sale by auction perfected?

  When the auctioneer announces its perfection
• What is the rule regarding the seller's right to bid at auction?

  It is unlawful unless expressly reserved
• What happens if a sale by auction contravenes the bidding rule?

  It may be treated as fraudulent by the buyer
• When does ownership transfer in a sale?

  Upon actual or constructive delivery
• Can parties stipulate that ownership does not pass until full payment?

  Yes
• What is a promise to buy and sell a determinate thing?

  It is reciprocally demandable
• What governs any injury or benefit from the sold thing after contract perfection?

  Articles 1163 to 1165, and 1262
• What happens if fungible things are sold for a price fixed according to weight?

  The risk does not impute to the vendee until delivery
• What can happen if the bulk of goods delivered does not correspond with the description?

  The contract may be rescinded
• What is the status of earnest money in a contract of sale?

  It is part of the price and proof of contract perfection
• How can a contract of sale be made?

  In writing, by word of mouth, or inferred from conduct
• What remedies does a vendor have if the price is payable in installments?

  Exact fulfillment, cancel the sale, or foreclose the chattel mortgage
• What applies to contracts purporting to be leases with an option to buy?

  The same remedies as in installment contracts
• What is the validity of a stipulation that installments paid shall not be returned?

  Valid unless unconscionable
• Who bears the expenses for the execution and registration of the sale?

  The vendor, unless stipulated otherwise