test3 - Chapter 7 Sales Sale most common method of...

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Chapter 7- Sales Sale- most common method of transferring ownership of an item from one person to another. Definition and Form: o Sales contract is a contract where ownership of a thing is transferred to another for a price in money. All that is needed to transfer ownership of a “moveable” is object and price. Can be verbal or written. o Sales of immovables (land) must be in writing. The sale is also not effective until it’s recorded at the clerk of court’s office in the property’s parish. Third parties rely on the clerk of court’s records- “public records doctrine” Sales vs. other contracts: o Price v. Huey Childs Builder- Price bought a new home from the builder, Childs. Childs built the house as a “spec” home. They agreed that further repairs would done. The house was built on soil that caused damage. Courts decided that the contract was a building contract, not a sales contract. The remedy to Price was costs of rectifying all defects, omissions and deficiencies. Not redhibition. o If the object of a sale has defects then the buyer has the remedy of rescission of the sale and a return of the purchase price. For construction contracts the remedy would be the cost to repair the defects. Since the remedies are different its important to distinguish which contract it is. o Criteria to determine if the contract is a sale or construction: In a contract to build the buyer has control over the specs. The negotiations in a contract to build take place before the object is constructed. A building contract contemplates not only that one party will supply the materials, but also that party will furnish his skill and labor in order to build the desired object. Object of the sale: o Object of sale may be anything that is susceptible of ownership and includes corporeals, incorporeals and even a hope or future thing. o If a dentist makes a set of false teeth, it would be considered a medical service not a sale. o Prescriptive period is how much time a party has to file a lawsuit. Sales contracts have a 1 year prescriptive period for redhibition. o Some “things” can’t be the object of sale (organs). The price: the parties must agree to a price or method of determining the price. There is no sales contract unless the parties intended that a price be paid. Lesion: o The price in a sale contract states that the price should not be out of proportion with the value of the thing. o Lesion is a unique law that allows a remedy for a seller for selling something too cheap. o The sale may be rescinded if the price is less than half of the fair market value.
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o If the seller is successful in the suit, the buyer gets to pick the remedy. Either the buyer must pay the difference between FMV and the price paid, or give the object back. o
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This note was uploaded on 11/10/2011 for the course BLAW 3202 taught by Professor Breaux,p during the Fall '08 term at LSU.

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test3 - Chapter 7 Sales Sale most common method of...

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