Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

53 Cards in this Set

  • Front
  • Back
what is contract of sale?
by the contract of sale one of the contracting parties obligates himself to transfer the ownership of & to deliver a determinate thing, and the other to pay therefore a price certain in money or its equivalent.

a contract of sale may be absolute or conditional.
characteristic of a contract of sale
1. consensual
2. bilateral
3. principal
4. onerous
5. commutative
6. nominate
essential requisites
1. consent
2. subject matter
3. consideration
kinds of contract of sale
1. absolute
2. conditional
the sale is not subject to any condition whatsoever & where title or ownership passes to the buyer upon delivery of the thing sold
where the sale contemplates a contingency and in general where the contract is subject to certain conditions
requisites concerning object
1. determinate, licit, not be impossible
2. all rights which are not intransmissible or personal may also be the object of sale
kinds of illicit things
a. illicit per se
b. illicit per accidens
right of vendor to transfer ownership
1. one can sell only what he owns
2. sufficient if right exists at time of delivery
subject matter must be determinate
1. when thing determinate
2. sufficient if subject matter capable of being made determinate
article 1461
1. things having potential existence as object of sale
2. sale of a vain hope or expectancy is void
goods which may be the object of sale
1. existing goods
2. future goods
future goods as object of sale
valid only as an executory contract to be fulfilled by the acquisition & delivery of the goods specified
article 1463
the sole owner of a thing may sell an undivided interest therein
goods of which any unit is, from its nature or by mercantile usage, treated as the equivalent of any other unit such as grain, oil....
fungible goods
effect of sale of an undivided share
a. buyer becomes a co owner w/ the seller of the whole mass
b. buyer becomes the owner of the whole mass, seller shall supply whatever is lacking
subject matter in sale of an undivided share
incorporeal right
an uncertain event upon the happening of which the obligation subject to it is extinguished
resolutory condition
distinguished sale & agency to sell
1. ownership
2. payment
3. return of the objects
4. dealings with the thing
sale distinguished from contract for a piece of work
1. existence of the thing
2. risk of loss
3. statute of frauds
one of the parties binds himself to give 1 thing in consideration of the other's promise jo give another thing
contract of barter
contractor binds himself to execute a piece of work for the employer, in consideration of a certain price or compensation
contract for a piece of work
meeting of minds between 2 persons whereby 1 binds himself, with respect to the other, to give something or to render some service
sum stipulated as the equivalent of the thing sold & also every incident taken into consideration for the fixing of the same, put to the debit of the vendee & agreed to by him
the price is certain if
1. the parties have fixed or agreed upon a definite amount
2. it be certain w/ reference to another thing certain
3. the determination of price is left to the judgement of a specified person or persons
exception if the price is fixed by 3rd person
1. acts in bad faith or by mistake
2. incompetent or in bad faith
effect if price is not fixed by the 3rd person designated
1. refuses or cannot fix, ineffective
2. prevented from fixing the price by fault
effect of gross inadequacy of price in voluntary sales
1. general rule
2. where low price indicates defect in the consent
3. where price simulated
4. where parties do not intend to be bound at all
one made by a court with respect to the property of a debtor for the satisfaction of his unpaid indebtedness
judicial or execution sale
where price is so low as to be shocking to the conscience
set aside by the court
where seller given the right to repurchase
right to redeem
price on a given day at particular market
amount must be certain
fixing of price by one of the contracting parties not allowed
if accepted by the other, the contract is deemed perfected
effect of failure to determine price
1. where contract executory
2. where delivery has been made
perfection of contract sale
at the moment there is a meeting of minds
rules governing auction sales
1. sales of separate lots by auction are separate sales
2. sale perfected by the fall of the hammer
3. right of seller to bid in auction
ownership of thing is transferred by delivery
however, the parties may stipulate that despite the delivery, the ownership of the thing shall remain with the seller until purchaser has fully paid the price.
kinds of promise treated in article 1479
1. an accepted unilateral promise to sell in which the promisee elects to buy
2. an accepted unilateral promise to buy in which the promisee elects to sell
3. a bilateral promise to buy & sell reciprocally accepted in which either of the parties chooses to exact fulfillment
unaccepted unilateral promise, no juridical effect
accepted unilateral promise
if the thing is lost before perfection
the seller bears the loss
if the thing is lost at the time of perfection
the contract is void or inexistent
if the thing is lost after the perfection but before its delivery
the risk of loss is shifted to the buyer
if the thing is lost after the delivery
the buyer bears the risk of loss
scope of article 1480
1. non fungible things & fungible things sold for a price not fixed in relation to weight... - buyer take the risk of the thing sold even before delivery
2. fungible things sold for a price fixed in relation weight... - seller bears the risk
where a seller sells things as being of a particular kind
sale by description
parties contracted solely w/ reference to the sample, w/ the understanding that the bulk was like it
sale by sample
goods satisfy all the warranties
sale by description and sample
advance payment
earnest money
distinguish earnest money to option money
1. part of purchase price
2. where there is already a sale
3. bound to pay the balance
under statute of frauds, the contracts that must be in writting are....
1. sale of personal property at a price not less than P500.00
2. sale of real property or anu interest therein regardless of price involved
3. sale of real property not to be performed within a year from the date thereof regardless of the nature & price involved
remedies of vendor in sale of personal property payable in installments
1. elect fulfillment upon the vendee's failure to pay
2. cancel the sale, if thr vendee shall have failed to pay 2 or more installments
3. foreclose the chattel mortgage, if one has been constituted, if the vendee shall have failed to pay 2 or more installments
right of vendor to recover unpaid balance of purchase price
1. remedy of specific performance
2. remedy of cancellation
3. remedy of foreclosure