SALE, AGENCY AND CREDIT TRANSACTION

• Contract of Sale


  One of the contracting parties obligates himself to transfer ownership
• Contract of sale


  • May be absolute or conditional
  • Requires at least 2 parties
• Vendor (seller)


  Obligation to transfer ownership and deliver a determinate thing
• Vendee (buyer)


  Obligation to pay a price certain in money or its equivalent
• Absolute


  Final and no conditions attached
• Conditional


  Not final, ownership will not be transferred until the conditions are fulfilled
• Characteristics of Contract of Sale

  • Consensual - perfected by mere consent, no form or document is prescribed
  • Bilateral - it gives rise to reciprocal obligations
  • Principal - it can stand or exist by itself without need of another contract
  • Onerous - the consideration is with cast-delivery of a thing or payment or price
  • Commutative - what the vendor delivers is considered the equivalent of the price paid
  • Nominate - it has a name - contract of "sale"
  • Transmissive of ownership - because it involves transfer of ownership of the subject matter
• Sale of personal property in installment (Recto law)

  A law that covers contract of sale of personal property by installment
• Double Sale


  When property has been sold to different buyers or vendees
• Pacto de Recto Sale (conventional redemption)


  The ownership of the vendee is subject to the resolutory condition that the vendor exercise his right to repurchase within agreed period of time
• On sale or return


  Gives the buyer an option to return the goods instead of paying the price
• Unapproval or trial


  Ownership passes to the buyer when he signifies his approval or acceptance to the seller
• Warranty against eviction


  Vendor warrants that vendee shall not be evicted or dispossessed of the thing purchased
• Warranty against hidden defects


  Vendor assures the buyer that the purchased item is free from hidden defect
• Contract of Agency


  A person binds himself to render some service
• Credit Transactions


  • Loan (mutuum) - delivery of sum of money to another under a contract
  • Commodatum - a loan for use wherein the property lent must be returned
  • Real estate mortgage - an accessory contract whereby the debtor guarantees
  • Chattel mortgage - a personal property is recorded