law on sales chap 4 and 5.docx - READING GUIDE LAW ON SALES...

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READING GUIDELAW ON SALESAtty. Kenneth Lloyd G. dela CruzThe topics here are usually asked in the CPALE or if not yet asked there is a greatprobability that it will be asked.Chapter 4. Obligations of the VendorArticle 1495 to 15811.Principal obligations of the vendorThe vendor is bound to transfer the ownership of and deliver, as well aswarrant the thing which is the object of the sale.2.Delivery = transfer of ownershipa.Kinds of delivery(1)Actual- when the thing is placed in the control and possession ofthe vendee(2)Constructivea. By legal formalities– When the same is made through a publicdocument, the execution thereof shall be equivalent to the deliveryof the thing sold. It applies to both movable and immovable property.b. Symbolic delivery(traditio simbolica or traditio clavium) – This isdelivery that takes place by delivering the keys of the place ordepository where the movable is stored or kept.c. Traditio longa manu– It is the delivery of a movable by mereconsent or agreement of the parties if the thing cannot betransferred to the possession of the vendee at the time of sale.d. Traditio brevi manu– It is a delivery that takes place when thevendee is already in the possession of the thing sold even before thesale and thereafter continues in possession thereof in the concept ofan owner. It applies to movables only.e. Traditio constitutum possessorium– It is a delivery that takesplace when the vendor continues in possession of the thing sold afterthe sale but in another capacity such as that of a lessee ordepositary. It applies to both movable and immovable property.f.Constructive deliveries of intangible assets or incorporealrights(1)By constructive traditio such as execution of publicdocument.(2)By placing the titles of ownership in the possession of thevendee such as delivering the stock certificate covering theshares of stock sold.(3)Through the use by the vendee of his rights with consent ofthe vendor such as when the seller authorizes the buyer of sharesof stock to vote during the stockholder’s meeting.3.Sale or return v. sale on approval or trialIn sale or return, ownership is transferred to the buyer upon delivery whileinsale on trial,delivery does not transfer ownership to the buyer but insteadownership is transferred to the buyer under any of the following instances: (a)when the buyer signifies his approval or acceptance of the goods; (b) whenthe buyer does an act adopting the transaction; or (c)when the buyer does notsignify his approval or acceptance of the goods but retains the goods withoutgiving notice of rejection within the time fixed in the contract or withinreasonable time, and such time has expired.

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Term
Fall
Professor
EmilyBryan
Tags
Contract Law, Vendee

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