LEGAREAL > Module 3 Part 1 > Flashcards

Module 3 Part 1 Flashcards

(63 cards)

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1
Q

one of the contracting parties obligates
himself to transfer the ownership and to deliver a determinate thing, and
the other to pay therefor a price certain in money or its equivalent

A

Contract of Sale

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2
Q

What are the characteristics of a contract of sale?

A

1) Nominate
2) Principal
3) Bilateral
4) Onerous
5) Commutative
6) Consensual

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3
Q

it has given a particular name under the law

A

Nominate

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4
Q

it can stand on its own

A

Principal

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5
Q

it imposes obligations on both parties to the relationship

A

Bilateral

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6
Q

it imposes a valuable consideration as a prestation

A

Onerous

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7
Q

a thing of value is exchanged for equal value

A

Commutative

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8
Q

since it is perfected by mere consent, at the moment there is a meeting of the minds upon the thing which is the object of the contract and upon the price

A

Consensual

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9
Q

Essential Requisites of a Contract of Sale?

A

1) Consent or meeting of the minds to transfer ownership in exchange for the price
2) Object/ Subject Matter
3) Cause or Consideration (Price), certain in money or its equivalent

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10
Q

What are the stages of a contract of sale?

A

1) Preparation stage (Policitacion);
2) Perfection, conception or birth; and
3) Consummation or death.

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11
Q

is the legal means by which dominion
or ownership is created, transferred or
destroyed

A

Mode

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12
Q

only constitutes the legal basis by

which to affect dominion or ownership

A

Title

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13
Q

(Contract of Sale or Contract to Sell) An absolute sale

i.e. Deed of Absolute Sale

A

Contract of Sale

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14
Q

(Contract of Sale or Contract to Sell) There is full payment of the consideration

A

Contract of Sale

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15
Q

(Contract of Sale or Contract to Sell) A conditional sale

i.e. Deed of Conditional Sale

A

Contract to Sell

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16
Q

(Contract of Sale or Contract to Sell) Title passes to buyer upon delivery

A

Contract of Sale

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17
Q

(Contract of Sale or Contract to Sell) Failure to pay is a resolutory condition which puts an end to the transaction
Remedies:
1) Specific Performance
2) Rescission

A

Contract of Sale

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18
Q

(Contract of Sale or Contract to Sell) There is no full payment of the consideration

A

Contract to Sell

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19
Q

(Contract of Sale or Contract to Sell) Seller loses ownership upon delivery

A

Contract of Sale

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20
Q

(Contract of Sale or Contract to Sell) Ownership is retained and will be transferred upon payment

A

Contract to Sell

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21
Q

(Contract of Sale or Contract to Sell) Failure to pay is a positive suspensive condition, failure of which is not a
breach, but prevents the obligation of the vendor to convey title to arise

A

Contract to Sell

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22
Q

(Contract of Sale or Contract to Sell) Title remains in the vendor even after delivery

A

Contract to Sell

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23
Q

PARTIES TO A CONTRACT OF SALE

A

1) Buyer/Vendee

2) Seller/Vendor

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24
Q

Who may enter into a contract of Sale?

A

All persons who are authorized in the Code to obligate themselves may enter into a contract of sale.

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25
minors, demented persons, imbeciles, deaf-mute who do not know how to read and write, those subjected to civil interdiction.
Absolute Incapacity
26
Those disqualified by law to own lands in the Philippines, i.e. non filipinos
Absolute Incapacity
27
The husband and the wife cannot sell property to each other, except: a) When a separation of property was agreed upon in the marriage settlement; or b) When there has been a judicial separation of property.
Relative Incapacity
28
Agents, with respect to the property entrusted to them for its administration or sale, unless the consent of the Principal has been given
Special Disqualifications
29
What are the Requisites of a valid Subject Matter?
1) It must be existing, future or subject to resolutory condition. 2) It must be licit: a) Not outside the commerce of man b) It is transmissible c) It does not contemplate a future inheritance, unless expressly authorized by law 3) It must be determinate or at least determinable.
30
Must the Vendor be the owner at the time of delivery?
The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time it is delivered.
31
What right does a buyer acquire in case of sale made by a non-owner?
In a sale by the non-owner, the buyer acquires no better title to the goods than the seller had.
32
In a sale by the non-owner, the buyer acquires no better title to the goods than the seller had. What are the exceptions (not exclusive)?
1) Sales sanctioned by judicial or statutory authority. 2) When a person who is not the owner sells and delivers a thing, and subsequently acquires title thereto, the title passes by operation of law to the buyer. 3) When the seller has voidable title which has not been avoided at the time of the sale. 4) Sale by co-owner of whole property or a definite portion thereof.
33
What is the effect if the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale?
Where the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale, the buyer acquires a good title to the goods, provided he buys them in good faith, for value, and without notice of the seller's defect of title.
34
is the sum stipulated as the equivalent of the thing sold and also every incident taken into consideration for the fixing of the price, put to the debit of the vendee and agreed to by him
Price
35
What is the effect if the price is simulated?
The sale is void but the act may be shown to have been in reality a donation or some other act or contract
36
What is the effect of inadequacy of price in a contract of Sale?
Mere inadequacy of price does not affect the validity of the sale if fixed in good faith and without fraud
37
When does inadequacy of price affect the validity of a contract of sale?
1) Where low price indicates a vice of consent, sale may be annulled or the contract presumed to be an equitable mortgage. 2) Where the price is so low as to be “shocking to the conscience”. 3) Where the price is simulated such as when the parties intended a donation or some other act or contract. 4) Where the parties did not intend to be bound at all, the contract is void and inexistent.
38
When does inadequacy of price affect the validity in a contract of sale?
1) Where the price is so low as to be “shocking to the conscience”, judicial sale of personal property will be set aside 2) If in the event of a resale, a better price can be obtained.
39
What is the effect if there is no price agreed upon?
The contract is inefficacious
40
(Earnest Money or Option Money) Title passes to the buyer upon delivery of the thing sold
Earnest Money
41
(Earnest Money or Option Money) Ownership is reserved to the seller and is not to pass until full payment
Option Money
42
(Earnest Money or Option Money) An action for specific performance or for rescission can be filed by the injured party
Earnest Money
43
(Earnest Money or Option Money) Part of the purchase price
Earnest Money
44
(Earnest Money or Option Money) There is already a sale
Earnest Money
45
(Earnest Money or Option Money) When given, the buyer is bound to pay the balance
Earnest Money
46
(Earnest Money or Option Money) There can be action for specific performance
Option Money
47
(Earnest Money or Option Money) Money is given as a specific performance
Option Money
48
(Earnest Money or Option Money) The would-be-buyer is not required to buy
Option Money
49
(Earnest Money or Option Money) Applies to a sale not yet perfected
Option Money
50
is an unaccepted unilateral promise to buy or sell. This produces no legal bond. This is a mere offer, and has not yet been converted into a contract.
Policitacion
51
is a unilateral promise to buy or to sell a determinate thing for a price certain is binding upon the promissor if the promise is supported by a consideration distinct from the price
Option Contract
52
What does the option refer to?
The option is not the contract of sale itself. The optionee has the right, but not the obligation, to buy. Once the option is exercised timely, ie.e, the offer is accepted before a breach of the option, a bilateral promise to sell and to buy ensues and both parties are then reciprocally bound to comply with their respective undertakings
53
What if the period is not itself founded upon or supported by a consideration
the offeror is still free and has the right to withdraw the offer before its acceptance, or if an acceptance has been made, before the offeror’s coming to know of such fact, by communicating that withdrawal to the offeree
54
- It is a right of first priority, all things and conditions being equal - Violation of the right of first refusal would make the contract rescissible
Right of First Refusal
55
When is the contract of sale perfected?
The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price. From that moment, the parties may reciprocally demand performance, subject to the provisions of the law governing the form of contracts.
56
What actions must be in writing in order to be enforceable?
The following (in relation to real estate so this list is not exclusive) must be in writing to be enforceable- so meaning, if it is not in writing, it is still valid but not enforceable in court: 1) Sale of real property or an interest therein. 2) Sale of property not to be performed within a year from the date thereof. 3) When an applicable statute requires that the contract of sale be in a certain form.
57
This phrase is used to express that when a thing is lost or destroyed, it is lost to the person who was the owner of it at the time. The ownership of the thing sold shall be transferred to the vendee upon the actual or constructive delivery thereof.
RES PERIT DOMINO
58
Kinds of Delivery
a) Actual or Real | b) Legal or Constructive
59
placing the thing under the control and possession of the buyer
Actual or Real
60
delivery is represented by other signs or acts indicative thereof, i.e. Execution of a Public Instrument, Traditio Symbolica, Traditio Longa Manu, Traditio Brevi Manu, Constitutum Possessurium
Legal or Constructive
61
When is there a double sale?
1) Two or more transactions must constitute valid sales; 2) They must pertain exactly to the same object or subject matter; 3) They must be bought from the same or immediate seller; and 4) Two or more buyers who are at odds over the rightful ownership of the subject matter must represent conflicting interests
62
What are the rules of preference in double sales?
1) First registrant in good faith: second buyer must register the document in good faith; otherwise, he does not have a better right 2) First possessor in good faith; if none then 3) Person with oldest title in good faith
63
In what condition is the vendor bound to deliver the thing sold?
The vendor is bound to deliver the thing sold and its accessions and accessories in the condition in which they were upon the perfection of the contract.

LEGAREAL (10 decks)

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