Group 1-3 part 1 Flashcards
(105 cards)
1
Q
What is a _____ in a sales transaction?
A
Sale
A contractual agreement between a seller and a buyer where ownership is transferred for a price or consideration.
2
Q
What is the characteristic of a sale where both parties have reciprocal obligations?
A
Bilateral Contract
Indicates that both buyer and seller have mutual responsibilities.
3
Q
What is the characteristic of sale where there’s a mutual exchange of duties?
A
Bilateral Contract
Ensures both parties benefit from the transaction.
4
Q
What is the characteristic of a sale where both parties exchange something of value?
A
Commutative
Indicates that each party receives something of value in return.
5
Q
What is a characteristic of sale that stands independently?
A
Principal Contract
Does not rely on another agreement for its validity.
6
Q
The ____ refers to the item being sold in a sales transaction.
A
Subject Matter
The object of the sale in a transaction.
7
Q
What occurs when the debtor transfers ownership of a property to the creditor as a means of extinguishing a debt?
A
Dación en pago
A method of settling a debt by transferring property.
8
Q
What do you call when a debtor assigns or surrenders all his or her assets to creditors?
A
Cession in payment
Allows creditors to sell the assets to satisfy obligations.
9
Q
What is a deposit made to a seller representing a buyer’s good faith?
A
Earnest Money
Commonly used in real estate transactions to show commitment.
10
Q
This is the consideration paid to hold one to a promise to buy or sell a determinable item.
A
Option Money
Paid for the right to purchase a specific item within a certain timeframe.
11
Q
What is the remedy where the seller can sue the buyer to recover the agreed-upon price of goods not yet paid?
A
Action for Price exercised
A seller’s right to claim payment for goods sold.
12
Q
What is the action for financial compensation to the seller for losses due to buyer’s non-payment?
A
Action for Damages
A legal remedy for the seller when the buyer defaults.
13
Q
What is the legal right that allows a seller to retain possession of goods until payment is made?
A
Possessory Lien
Protects the seller’s interest until payment is received.
14
Q
What is an important legal mechanism available to an unpaid seller?
A
Stoppage in Transit
Allows a seller to reclaim goods in transit if payment is not made.
15
Q
What is one of the remedies available to an unpaid seller when the buyer defaults?
A
Special Right to Resell the Goods Exercised
Enables the seller to sell the goods to recover losses.
16
Q
This assures the buyer that the good or service is free from defects.
A
Warranties
Legally binding commitments regarding product quality.
17
Q
It refers to how you keep all records related to the purchase.
A
Documentation
Important for tracking transactions and warranties.
18
Q
This refers to the conditions under which the sale on credit occurs.
A
Payment terms
Includes repayment schedule, interest rates, and penalties.
19
Q
If neither replacement nor a refund is possible, the consumer can request that the goods be __.
A
Repair
A common remedy for defective products.
20
Q
It is defined as a transaction involving the transfer of goods, services, funds, property or rights.
A
Credit
Creates an obligation to comply in the future.
21
Q
In a pacto de retro sale, who is the seller that reserves the right to repurchase?
A
Vendor a retro
Retains the option to buy back the sold property.
22
Q
In a pacto de retro sale, who is the buyer temporarily acquiring ownership?
A
Vendee a retro
Obligated to allow repurchase by the vendor.
23
Q
What term describes when the vendor reserves the right to repurchase the sold item?
A
Conventional Redemption
Involves specific stipulations agreed upon.
24
Q
This type of warranty is not explicitly stated but is automatically applied by law.
A
Warranty of Merchantability
Ensures products meet reasonable quality standards.
25
This type of warranty assures the buyer that the product will perform as expected.
Warranty of Fitness for a particular purpose
## Footnote
Even if not explicitly stated in the sales agreement.
26
A legal remedy where the consumer can demand a new unit free from defects.
Replacement
## Footnote
A remedy for defective goods.
27
A legal remedy where the consumer may opt for a complete _____ of the purchase price.
Refund
## Footnote
Another remedy for defective goods.
28
What is the characteristic of Sale where it stands independently?
Principal Contract
## Footnote
Does not depend on another agreement.
29
What are the three characteristics of Sale?
* Bilateral Contract
* Onerous Transaction
* Commutative
## Footnote
Key features defining a sale.
30
What are the two forms of sale?
* In writing
* By word of mouth
## Footnote
Common methods of forming sales agreements.
31
What are the three Legal Remedies in Warranty?
* Replacement
* Refund
* Repair
## Footnote
Remedies available to consumers for defective goods.
32
What are the two parties in Pacto De Retro Sale?
* Vendor a retro
* Vendee a retro
## Footnote
Key participants in the pacto de retro transaction.
33
What are the three Instances of Legal Redemption?
* Legal Redemption by Co-owners
* Legal Redemption by adjoining owner of rural land
* Legal Redemption by adjoining owner of urban land
## Footnote
Conditions under which legal redemption can occur.
34
What is the main purpose of PD 957?
To protect buyers from unscrupulous developers and sellers
## Footnote
A law governing real estate transactions.
35
Under PD 957, how long does a developer have to complete the promised facilities?
Within one year of the project’s license issuance or within an approved period
## Footnote
Sets timelines for project completion.
36
Before selling subdivision lots, developers must secure a ______ from DHSUD.
License to Sell
## Footnote
Necessary authorization for selling property.
37
What happens if a buyer stops installment payments due to a developer’s failure?
The buyer may demand a refund with interest at the legal rate
## Footnote
Protects buyer's rights when developers fail to deliver.
38
According to PD 957, when should the title be transferred to the buyer?
Upon full payment, with no extra fees except registration costs
## Footnote
Ensures buyer's rights are safeguarded.
39
What law governs the rights of buyers who fail to pay installment payments?
Maceda Law (RA 6552)
## Footnote
Protects buyers in installment sales.
40
Under PD 957, who is responsible for paying real estate taxes before the title is transferred?
The developer
## Footnote
Ensures tax obligations are met prior to transfer.
41
What is the effect of a waiver clause in a contract exempting the developer from complying with PD 957?
It is null and void
## Footnote
Waivers cannot override legal protections.
42
If a buyer occupies the property before title transfer, when do they start paying real estate taxes?
Immediately upon move-in
## Footnote
Tax responsibilities begin with occupancy.
43
What law complements PD 957 by governing condominium ownership?
The Condominium Act (RA 4726)
## Footnote
Establishes regulations for condominium properties.
44
What is the primary objective of the Recto Law?
To prevent sellers from abusing buyers in installment sales
## Footnote
Protects consumer rights in installment transactions.
45
Which of the following is NOT a remedy available to the seller under the Recto Law?
Cancelling the sale after one missed installment
## Footnote
Sellers must follow due process before cancellation.
46
Under Article 1484, what happens if the seller chooses foreclosure of a chattel mortgage?
The seller cannot pursue the buyer for any remaining balance
## Footnote
Foreclosure limits further claims on unpaid amounts.
47
What happens if the seller chooses foreclosure of a chattel mortgage under Article 1484?
The seller can still sue for the unpaid balance
## Footnote
This means the seller retains the right to pursue the buyer for any remaining debt after foreclosure.
48
What law governs installment sales of personal property in the Philippines?
Maceda Law
## Footnote
The Maceda Law provides protections for buyers in installment sales.
49
What is the scope of the Recto Law?
Installment sales of personal property
## Footnote
The Recto Law specifically addresses the rights and responsibilities in installment sales.
50
Which article in the Civil Code contains the Recto Law?
Article 1484
## Footnote
Article 1484 outlines the provisions of the Recto Law.
51
What happens if a lease contract includes an option to buy and the lessor deprives the lessee of the property?
Article 1484 rules on installment sales apply
## Footnote
This indicates that the lessee may have certain rights under the installment sales regulations.
52
Which statement about deficiency claims is TRUE under the Recto Law?
The seller can claim a deficiency if foreclosure proceeds are insufficient
## Footnote
This means sellers have a right to seek additional payment if the sale of the foreclosed property does not cover the debt.
53
What does Article 1486 state regarding forfeiture of installments or rent paid?
It is valid unless deemed unconscionable
## Footnote
This provides a safeguard against unfair forfeiture practices.
54
Why was Article 1485 included in the Civil Code?
To ensure that sellers do not disguise installment sales as lease contracts
## Footnote
This aims to protect buyers from being misled about their rights.
55
What is another name for the Maceda Law?
Installment Sales Protection Act
## Footnote
This name reflects the law's purpose of protecting buyers in installment sales.
56
Who authored the Maceda Law?
Ernesto Maceda
## Footnote
Senator Ernesto Maceda was instrumental in creating the law.
57
The Maceda Law applies to which type of property?
Real estate used for residential purposes
## Footnote
This includes houses, condominiums, and other residential properties sold via installment.
58
Which of the following is NOT covered under the Maceda Law?
Agricultural land
## Footnote
The Maceda Law does not protect buyers of agricultural land in installment sales.
59
What is the maximum refundable amount a buyer can receive under Maceda Law?
50%
## Footnote
Buyers are entitled to a refund of up to 50% of their payments if they cancel the contract.
60
What is a key difference between the Recto Law and Maceda Law?
Recto Law applies to personal property, Maceda Law applies to real estate
## Footnote
This distinction is important for understanding the scope of each law.
61
If a buyer has paid less than two years of installments, how many days are given as a grace period to pay overdue payments?
30 days
## Footnote
This grace period provides buyers a chance to catch up on payments before facing penalties.
62
Under the Maceda Law, how much refund is required for buyers who have paid less than two years of installments?
0
## Footnote
Buyers who have not completed two years of payments are not entitled to any refund.
63
What is the main purpose of the Maceda Law?
Protect buyers of residential real estate under installment payments
## Footnote
This law aims to safeguard the interests of buyers in installment agreements.
64
Maceda Law was created mainly to protect:
Low- and middle-income home buyers
## Footnote
The law focuses on assisting those who may be more vulnerable in real estate transactions.
65
What are the two scopes of PD 957?
Subdivision lots, Condominium units
## Footnote
PD 957 regulates the sale and development of these types of real estate.
66
What are the two laws that regulate subdivision and condominium sales?
PD 957, Condominium Act / RA 4726
## Footnote
These laws establish rules for selling and managing subdivision and condominium properties.
67
What are the remedies of Vendor in Sale of Personal Property?
Exact fulfillment of the obligation, Cancel the sale, Foreclose the chattel mortgage
## Footnote
These remedies provide options for vendors when buyers default on their obligations.
68
What is the scope and coverage of the Recto Law?
Personal Property, Installment Sales
## Footnote
The Recto Law specifically addresses rights and obligations in the context of personal property sales on installment.
69
Name two types of properties NOT covered by Maceda Law.
Industrial properties, Commercial properties
## Footnote
These types of properties are excluded from the protections provided by the Maceda Law.
70
Name two key benefits of the Maceda Law to buyers.
Protects installment buyers from unfair contract cancellations, Ensures buyers receive a fair refund of their payments
## Footnote
These benefits help to maintain fairness in installment agreements.
71
Name two key provisions under Maceda Law.
Rights of buyers who have paid at least 2 years, Rights of buyers who have paid less than 2 years
## Footnote
These provisions outline the entitlements of buyers based on their payment status.
72
What is the law that regulates the sale of subdivision lots and condominium units and imposes penalties for violations?
PD 957
## Footnote
This law includes regulations to protect buyers and ensure compliance by developers.
73
What is the law that governs the sale and ownership of condominium units?
RA 4726 / Condominium Act
## Footnote
This act ensures that developers fulfill their obligations and protects buyers from exploitation.
74
What provides a grace period for buyers to settle their arrears?
Maceda Law
## Footnote
The law allows buyers time to catch up on missed payments to avoid losing their property.
75
Who was the author of Presidential Decree No. 957?
President Ferdinand Marcos
## Footnote
This decree was issued under the administration of President Marcos.
76
What is the legal document that a developer must secure before selling subdivision lots and condominium units?
License to Sell
## Footnote
This document is required to ensure compliance with regulations.
77
What is the obligation of developers to transfer to buyers after full payment?
Delivery of Title
## Footnote
This ensures that buyers receive ownership without additional fees beyond registration costs.
78
What principle prevents a seller from choosing multiple remedies under the Recto Law?
Seller's obligation to elect a remedy
## Footnote
This principle requires sellers to choose one legal avenue to pursue in case of default.
79
What is the full name of the Maceda Law?
Realty Installment Buyer Protection Act
## Footnote
This name indicates the law's focus on protecting buyers in realty installment agreements.
80
What is the minimum refund percentage under Maceda Law?
50%
## Footnote
This refers to the minimum amount that must be refunded to buyers who cancel their contracts after two years.
81
What is the required notice period before cancellation under Maceda Law?
30 days
## Footnote
Sellers must provide this notice before they can cancel a sale.
82
What is the maximum refundable percentage under Maceda Law?
90%
## Footnote
This indicates the maximum amount a buyer can receive back if they have met the necessary conditions.
83
What is the minimum grace period per year of payment under Maceda Law?
1 month per year of payments
## Footnote
This provision allows buyers to have a grace period based on their payment history.
84
Who authored the Maceda Law?
Senator Ernesto Maceda
## Footnote
His efforts were crucial in the passage of this protective legislation.
85
When does implied agency arise?
When the principal’s actions, silence, or inaction indicate consent
## Footnote
Implied agency does not require explicit authorization.
86
What is a general agency?
An agency covering all business of the principal
## Footnote
General agencies allow agents to act in various legal matters.
87
What is a special agency?
An agency covering only a specific transaction
## Footnote
Special agencies have limited authority compared to general agencies.
88
What is implied agency?
A form of agency that arises when the principal’s actions, silence, or failure to repudiate indicate consent
## Footnote
Implied agency is based on the trust established through actions.
89
What is a pledge?
A contract where a debtor delivers a movable property to a creditor as security for a debt
## Footnote
Pledges are often used in loans to secure the lender's interests.
90
What is Pactum Commissorium?
A legal term that refers to a contractual clause in a pledge or mortgage agreement where the creditor automatically acquires ownership of the collateral in case the debtor defaults
## Footnote
This clause protects the creditor's rights in case of default.
91
What is a real mortgage?
A loan where real property (such as land or buildings) is used as collateral
## Footnote
Real mortgages are common in real estate transactions.
92
What is a chattel mortgage?
A form of mortgage involving personal property (often movable items) being used as collateral for a loan
## Footnote
Commonly used for items like cars and machinery.
93
What is a commission agent?
A type of agent or entity that acts on behalf of another (the principal) to perform specific tasks or transactions, and receives compensation in the form of a commission for their services
## Footnote
Commission agents are incentivized to perform effectively due to their compensation structure.
94
What is the Del Credere Agency?
Also known as the Del Credere Agency, it incentivizes the agent to be careful in selecting buyers and managing credit terms
## Footnote
Agents take on risk by guaranteeing creditworthiness.
95
What does Article 1925 state about power of attorney?
When two or more principals have granted a power of attorney for a common transaction, any one of them may revoke the same without the consent of the others
## Footnote
This allows flexibility in managing agency relationships.
96
What does Article 1923 state regarding the appointment of a new agent?
The appointment of a new agent for the same business or transaction revokes the previous agency from the day on which notice was given to the former agency
## Footnote
This ensures clarity in agency representation.
97
What does Article 1920 state about revocation of agency?
The principal may revoke the agency at will, and compel the agent to return the document evidencing the agency
## Footnote
Revocation can be express or implied.
98
What does Article 1921 state regarding agency entrusted for contracting?
If agency has been entrusted for the purpose of contracting with specified persons, its revocation shall not prejudice the latter if they were not given notice thereof
## Footnote
This protects third parties in transactions.
99
What is the power of attorney's continuity?
The power of attorney shall continue to be in full force until the notice is rescinded in the same manner in which it was given
## Footnote
This maintains the authority granted until formally revoked.
100
What is the nature of agency in terms of representation?
The agent acts on behalf of the principal, and their decisions and actions are legally considered as the principal’s actions
## Footnote
This establishes the legal relationship and responsibilities involved.
101
How does the agent's authority come from the principal?
The agent’s authority comes directly from the principal and is limited to the powers granted
## Footnote
Actions beyond this authority may not be legally binding.
102
Who is the principal in an agency relationship?
It is the person who grants authority to another to act on their behalf
## Footnote
The principal is central to the agency relationship.
103
Enumerate the 7 Characteristics of a Contract of Agency
* Principal
* Consensual
* Nominate
* Bilateral
* Commutative
* Onerous
* Preparatory
104
Enumerate the 6 Modes of Extinguishment of Agency
* Revocation by the principal
* Withdrawal by the agent
* Death, civil interdiction, insanity, or insolvency of either party
* Dissolution of firm or corporation
* Accomplishment of purpose
* Expiration of period
105
What are the two parties to a Contract of Agency?
* Principal
* Agent
