Level-Up-Law-on-Sales-Reviewer.pdf - BLR Reviewer(Prelims \u25cf Chapter 1 Nature and Form of Contract \u25cf Contract of sale \u200b-is an agreement whereby the

Level-Up-Law-on-Sales-Reviewer.pdf - BLR Reviewer(Prelims...

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BLR Reviewer (Prelims) Chapter 1: Nature and Form of Contract Contract of sale -is an agreement whereby the vendor obligates himself to deliver a determinate thing to the vendee who on his part, binds himself to pay therefor a sum of money or its equivalent. Determinate thing - designated or physically segregated from others of the same class Stages of a contract of sale 1. Negotiation -It covers the period from the time the prospective contracting parties indicate interest in the contract to the time the contract is perfected. 2. Perfection - It takes place upon the concurrence of the essential elements of the sale, which is the meeting of the minds of the parties as to the object of the contract and upon the price(includes manner of payment) 3. Consummation - It begins when the parties perform their respective undertakings under the contract of sale, culminating in the extinguishment thereof. Two kinds of a contract of sale 1. Absolute -There are no conditions attached to the contract. 2. Conditional -There are certain conditions attached in the contract. Characteristics of a contract of sale . (CBOCNP) Consensual -it is perfected by mere consent without any further act; Bilateral -both the contracting parties are bound to fulfill correlative obligations towards each other — seller to deliver and transfer ownership of the thing sold buyer to pay the price Onerous - the thing sold is conveyed in consideration which is the price certain in money Commutative -The thing of value is exchanged for equal value Nominate -it is given a special name or designation in the Civil Code, namely, “sale” Principa l -it can stand on its own and does not depend for its existence and validity upon another contract. Essential requisites of a contract of sale . Consent -Manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the agreement. Object - This refers to the determinate thing which is the object of the contract. Price -This refers to the “price certain in money or its equivalent” Equivalen t- check or a promissory note, which is the consideration for the thing sold. It does not include goods or merchandise although they have their own value in money. The fixing of the price can never be left to the decision of one of the contracting parties, But, a price fixed by one of the contracting parties, if accepted by the other, gives rise to a perfected sale. It is not enough for the parties to agree on the price of the property. The parties must also agree on the manner of payment of the price. The disagreement on the manner of the payment is tantamount to a failure to agree on the price. The absence of any of the above essential elements negates the existence of a perfected contract of sale.
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