What is a Contract of Sale?
By the contract of sale, one of the contracting parties obligates himself to transfer the
ownership of and to deliver a determinate thing, and the other to pay therefore a price
certain in money or its equivalent. (Art. 1458, NCC)
What are the elements of a contract of sales
- Accidental Elements
- Natural Elements
- Essential Elements
Is there a formal requirement for the validity of a contract of sale?
- General Rule: No form is required. It is Consensual Contract
- Exception: Under of statute Frauds, the following contracts must be in writing;
Otherwise, they shall be unenforceable:
i. Sale of personal property at a price not less than 500
ii. Sale of a real property or an interest therein;
iii. Sale of property not be performed within a year from the date thereof;
iv. When an applicable statute requires that the contract of sale be in certain form.
What are the 3 stages involved in the formation of a contract of sale?
- Negotiation
- Perfection
- Consummation
What are the characteristics of a contract of sale?
- Consensual
- Bilateral
- Onerous
- Commutative
- Nominate
- Principal
What are the essential requisites of a contract of sale?
- Consent or meeting of the minds
- Object or subject matter
- Cause or consideration
Under Art. 1476, when is a sale by auction perfected?
A sale by auction is perfected when the auctioneer announces its perfection by the fall
of the hammer, or in other customary manner. Until such announcement is made, any
bidder may retract his bid; and the auctioneer may withdraw the goods from the sale
unless the auction has been announced to be without reserve.
What are the remedies of vendor in sale of personal property payable in installments?
- Elect fulfillment upon the vendee’s failure to pay; or
- Cancel the sale, if the vendee shall have failed to pay two or more installments;
- Foreclose the chattel mortgage, if one has been constituted, if the vendee shall have
failed to pay two or more installments.
What are the principal obligations of the vendor?
The principal obligations of a vendor are:
i. to transfer the ownership of the determinate thing sold;
ii. to deliver the thing, with its accessions and accessories, if any, in the condition in
which they were upon the perfection of the contract (Art. 1537.);
iii. to warrant against eviction and against hidden defects (Arts. 1495, 1547.);
iv. to take care of the thing, pending delivery, with proper diligence (see Art. 1163.);
and
v. to pay for the expenses of the deed of sale, unless there is a stipulation to the
contrary. (Art. 1487.)
What are the rights of an unpaid seller?
- Possessory lien
- Stoppage in transitu
- Resale
- Rescission
What are the requisites for the applicability of double sale?
- There must be a single property owned.
- There must be 2 or more contracts of sales.
- There must be 2 or more different buyers who rights are conflicting
- The buyers must have acquired the same property from the same seller.
If the same immovable property is sold by the vendor to two or more vendees, the one
who has a better right over the thing shall be?
- The one to first register in good faith; if none,
- The one to first take possession in good faith; if none still,
- The one with the oldest title
Hidden Defects
It would render the thing unfit for its intended use; or diminish its fitness for such
use to such extent that, had the vendee been aware thereof, he would not have acquired it or
would have given a lower price for it.
