law

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Cards (364)

  • Delivery is required at termination
  • Obligations of the Seller
    • Transfer the ownership
    • Deliver the thing
    • Warrant against eviction and hidden defects
    • Observe the diligence of a good father of a family
    • Pay for the expenses
  • Elements of a Contract
    • Essential
    • Accidental
    • Natural
  • The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price
  • Sale is a contract; there must be consent on part of the parties
  • Obligations of the Buyer
    • Accept the delivery
    • Pay for the price
  • Price is the cause
    • Instances when he can refuse to accept: Justified
    • Unjustified – buyer will be liable to pay for damages & he will automatically be the owner of the thing
  • Characteristics of Sale
    • Consensual
    • Real
    • Bilateral
    • Unilateral
    • Reciprocal
    • Non-reciprocal
    • Onerous
    • Gratuitous
    • Commutative
    • Aleatory
    • Nominate
    • Innominate
    • Principal
    • Accessory
  • No form is required in general; exception if covered by Statute of Frauds
  • Statute of Frauds applies only on executory
  • Contract is valid if common consent is present but they cannot demand because it is unenforceable. It must be in writing, unless there is ratification or it has already been executed
  • Stages of Sale
    • Preparation/Bargaining/Negotiation
    • Perfection/Creation/Birth
    • Termination/Consummation
  • Determinate Thing
    Object of the contract of sale, not generic thing
  • Ownership
    Basic requirement/purpose
  • Price must be certain, void if not & it could be a thing other than the money itself
  • Contract must be in writing to be enforceable; otherwise it is unenforceable
  • Law on Sales, Article 1458
  • Ownership is required at the time of delivery
  • Three Basic Natural Elements of Sale
    • Warrant against eviction
    • Warrant against hidden defects
    • Warrant of fitness or merchantability
  • The court has the power to make an interim injunction if it is just and convenient to do so.
  • An interim injunction can be granted without notice, but the defendant must still have a reasonable opportunity to respond.
  • An auctioneer can withdraw before the fall of the hammer unless it is announced without reserve
  • Auction sale is perfected upon the fall of the hammer or in any other customary manner
  • Requirements for the validity of a donation
    • Personal property exceeding 5,000 – In writing, otherwise, void
    • Real property, regardless of value – Public instrument, otherwise, void
  • Electronic contracts under the E-Commerce Act of 2000 / RA 8792 (ECA) allow for offers, acceptance, and other elements required for contract formation to be expressed in electronic documents
  • Possible objects of sale

    • Potential existence (emptio res speratae) 1461
    • Hope or expectancy (emptio spei) 1461
    • Existing (OP) or Future Goods (MRA)
  • When is the contract perfected?
    From the time it came to his knowledge / knowledge of acceptance
  • Consent
    • 1320 – Form of acceptance: express or implied
    • 1321 – Matters that may be fixed by the offeror: place, time, or manner of delivery – Accidental elements
    • 1324 – Option money v. Earnest money: no contract of sale in option money, there is a contract of sale in earnest money
    • 1330 – Vices of consent (MIVUF): Voidable if one is present
    • 1340 – Usual exaggerations in trade: Valid
    • 1341 – Expression of opinion: GR – Valid, Voidable if opinion is made by an expert
    • 1345/1346 – Simulation of contract: Absolute/Fictitious – no intention to be bound / Void, Relative – parties conceal their true agreement / Valid, Void if contrary to 1306 or if it prejudices the right of a TP
  • A seller cannot employ by-bidders or puffers
  • Perfection of the contract if sent by letter
    1. 4 Theories in the perfection of contract: Manifestation Theory (Code of commerce) – declaration
    2. Expedition Theory (American Courts) - sent the letter
    3. Reception Theory (German Civil Code) - receive the letter
    4. Cognition Theory (Spanish Civil Code) - knowledge
  • A seller cannot bid, exception if it is announced with reserve
  • Essential requisites of sale
    • Consent
    • Object
    • Price
    • Not covered by Statute of Frauds: If already paid/performed – Executed
    • Accept benefits (delivery + payment) - Ratification
  • Where is the contract perfected?
    Place where the offer was made
  • Object
    Requisites for the object of the contract of sale: Determinate (1460) / Determinable (2nd par.), Licit / Lawful, Not impossible, Right to transfer ownership at the time the object is delivered (1459), Transmissible
  • Acceptance made by letter or telegram does not bind the offeror except from the time it came to his knowledge. The contract, in such a case, is presumed to have been entered into in the place where the offer was made
  • Sale of separate lots by auction are separate sales
  • A bidder can withdraw before the fall of the hammer
  • Points of distinction between Emptio Res Speratae and Emptio Spei
    • As to the object of the sale
    • As to what is uncertain
    • As to the subject thereof
    • As to requisite of the existence of the thing
  • Points of distinction between Option Money and Earnest Money
    • Nature of the money given
    • Application
    • Effect when given