03 UST Golden Notes - Sales.pdf - SALES SALES 6 Q What is a sale A Sale is a contract where one party(seller obligates himself to transfer the ownership

03 UST Golden Notes - Sales.pdf - SALES SALES 6 Q What is a...

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S ALES SALES Q: What is a sale? A: Sale is a contract where one party (seller) obligates himself to transfer the ownership of and to deliver a determinate thing, while the other party (buyer) obligates himself to pay for said thing a price certain in money or its equivalent. (Tolentino, p.1, 2000 ed.) U N I V E R S I T Y O F S A N T O T O M A S F a c u l t a d d e D e r e c h o C i v i l A CADEMICS C HAIR : L ESTER J AY A LAN E. F LORES II V ICE C HAIRS F OR A CADEMICS : K AREN J OY G. S ABUGO & J OHN H ENRY C. M ENDOZA V ICE C HAIR FOR A DMINISTRATION AND F INANCE : J EANELLE C. L EE V ICE C HAIRS FOR L AY O UT A ND D ESIGN : E ARL L OUIE M. M ASACAYAN & T HEENA C. M ARTINEZ I. INTRODUCTION A. DEFINITION OF THE CONTRACT OF SALE Q: What is a contract of sale? A: By the contract of sale, one of the contracting parties obligates himself to transfer the ownership of and to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent. (Art. 1458, NCC) KINDS OF SALES Q: What are the different kinds of sales? A: As to: 1. Nature of the subject matter: a. Sale of real property; b. Sale of personal property 2. Value of the things exchanged: a. Commutative sale; b. Aleatory sale 3. Whether the object is tangible or intangible: a. Sale of property (tangible or corporeal); Note: A tangible object is also called chose in possession b. Sale of a right ( assignment of a right, or a credit or other intangibles such as copyright, trademark, or good will ); Note: An intangible object is a chose in action. 4. Validity or defect of the transaction: a. Valid b. Rescissible c. Voidable d. Unenforceable e. Void 5. Legality of the object: a. Licit object b. Illicit object 6. Presence or absence of conditions: a. Absolute b. Conditional 7. Wholesale or retail: a. Wholesale b. Retail 8. Proximate inducement for the sale: a. Sale by description b. Sale by sample c. Sale by description and sample 9. When the price is tendered: a. Cash sale b. Sale on installment plan AS TO PRESENCEOR ABSENCE OF CONDITION ABSOLUTE SALE Q: When is a sale absolute? A: The sale is absolute where the sale is not subject to any condition whatsoever and where the title passes to the buyer upon delivery of the thing sold . (De Leon, p. 15) Q: When is a deed of sale considered absolute in nature? A: A deed of sale is considered absolute in nature where there is neither a stipulation in the deed that title to the property sold is reserved in the seller until the full payment of the price, nor one giving the vendor the right to unilaterally resolve the contract the moment the buyer fails to pay within a fixed period. CONDITIONAL SALE Q: When is a sale conditional? A: It is conditional where the sale contemplates a contingency, and in general, where the contract is subject to certain conditions, usually in the case of the vendee, the full payment of the agreed purchase price and in the case of the vendor, the fulfillment of certain warranties. (De Leon, p. 15)
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UST G OLDEN N OTES 2011 Q: Distinguish a conditional sale from an absolute sale C IVIL L AW T EAM : A DVISER : A TTY . E LMER T. R ABUYA ; S UBJECT H
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