CLARICE JOBETH R.

KEE LAW 4 H DECEMBER 19, 2013

REAL LIFE EXAMPLES AND EXPLANATIONS: ARTICLES 1459-1488

The world nowadays is full of people who take advantage of one another, the desire for the fulfilment of ones own interest created a lot of individuals who even commit crimes and cheat on another. In different transactions, there is a tendency of one party to deceive another and would not fulfil the agreement of the said transaction. A lot of mishaps happen especially when one party wont deliver as promised. A written contract is ideally made to arrive at a beneficial agreement and to protect both parties in case of failure to do the obligation. A contract doesnt need to be written in legalistic language. It is simply a list of terms to which both parties agree. When difficulties arise, people tend to forget oral agreements, or see them as disadvantageous to them, or remember terms differently. In such cases, a written document can be consulted. The Nature and Form of Contract was tackled in the first chapter of the book. From articles 1458 to 1492, I have learned the necessities of law to avoid being cheated in the future. Now, my rights and obligations as a seller or as a buy is revealed, together with the consequences I may face if I disregard it. One time, I have bought items online which has been failed to be delivered in my address. I paid all the item costs including shipment costs and the buyer and I had agreed to the sale. Therefore, a meeting of the minds had happened. All the essential elements have been met, along with the object (the book which I bought), and we have agreed on the sales price. From article 1458, a sale is already supposed to be made. After weeks of bugging the customer service of the website, the representative has finally contacted me. They have reasoned out that they are just middleman of the bookstores. The bookstores get their book supplies from random individuals who wish to sell their books at a lesser price. A lot of these sources have pledge to sell their books and on the weaker side, the sellers posts the pledged books in the website even when they dont have the book yet. Therefore, they still dont have rights at the time of sale on the books. However, according to Article 1459, a sale can now be made legal because supposedly at the time of delivery, the sellers now have a right to sell and get the money from such books as the books are now theirs when the sources hand it to them. On buying phones at the store, usually, we do testing on particular phones to know whether it is defective or not, and to know when the phone is suitable to our taste. It cannot be avoided that there may be old stocks given to you, as a customer, I am always precautious on such matters. I have went with my dad to buy a new phone. It was a cheap cherry mobile phone way back in high school, nothing can be expected of such brand so I am very careful in choosing. I have chosen one model and tested it, dad agreed in buying it and so the sale, payment and receipts were given. However, the seller totally disobeyed Article 1460 as she got another phone from storage room and gave it to me. She said its a new one, and I didnt listen to her, as I already tested the first one. Dad scolded me and we went home with the new one the saleslady gave me. It turned out, it was defective, and so we went back. I am one of those people who are very fond with dogs. A lot of my neighbours wishes to buy the new-borns from my Dalmatian. Well, from Article 1461, things having a potential existence may be the object of the contract of sale. However, even at how many times they wish for puppies from my Dalmatian, it would never happen as my dog is a boy and it can never bear puppies. However maybe, if they wish to have milk from cows from my grandpas farm, it can be considered future goods from Article 1462, in such case, a sale could possibly happen. From the farm, according to Article 1463, my grandfather can possible sell his undivided interest to possible buyers as a sole owner of the property. My grandpa, can convey or transfer of the property to the buyer.

In article 1464, In the case of fungible goods, there may be a sale of an undivided share of a specific mass, which may pertain to products such as oil, wine, grain and gasoline. The seller, must always give the buyer the agreed amount. If I have 100 kilograms of oil and I agreed to sell 50 kilograms of it to a retailer, of which the oil is not segregated from the whole mass of 100 kilograms, then the retailer would own of it. If it so happen that there was only 50 80 kilograms available in the storage, then of it is owned by the retailer, the deficiency will be my obligation to supply as soon as possible. On the other hand according to Article 1465Things subject to resolutely condition may be the object of the contract of sale, this means an uncertain event may be the object of the contract of sale. For example, I can supply the said retailer 50 kilograms of oil every week until my store is not bankrupt. Until then, I am obliged to supply the oil and the retailer has the right to demand it from me. When it comes to having a middleman or agency to supposedly speed and disseminate the tasks in selling, there is a clear border between the agency and the seller. In article 1466, in construing a contract containing provisions characteristic of both the contract of sale and of the contract of agency to sell, the essential clauses of the whole instrument shall be considered. This article can also point out to consignments. If I am the manufacturer of biscuits, I will of course, consign some products to different grocery stores. My products are just in the hand of the stores, but I still own them. An agreed amount will be given to the stores and the proceeds of the sale, is mine. Furthermore, from article 1467, it distinguishes the contract of sale from the contract of the piece of work. If it is ordered in the ordinary cause of business, it is a sale. If it is manufactured especially and not for the market, it is a contract for a piece of work. When for example, in our feasibility study, we produce four season shakes for our customers. Sometimes, people come to us and order other flavoured shakes beyond the course of our business. Some, want mango, cookies and cream, and some even want ice-cream like shakes. When customers, have special orders, we consider them as customers ordering for a special piece of work and not just sales because we go beyond the business for the sake of their request. Tracing the roots of different transactions, we hail the method of barter as a pioneer in todays sale. In Article 1468, If the consideration of the contract consists partly in money, and partly in another thing, the transaction shall be characterized by the manifest intention of the parties. If such intention does not clearly appear, it shall be considered a barter if the value of the thing given as a part of the consideration exceeds the amount of the money or its equivalent; otherwise, it is a sale. when the transaction involves the two payments, when the amount of the money is greater than the amount of the thing paid it is called sale but when the amount of payment is vice versa it is called barter. When the transaction involves the two payments, when the amount of the money is greater than the sum of the thing compensated it is called sale. On the other hand, when the amount of payment is vice versa it is called barter. To illustrate, lets say I want to have laptop and I will pay it with an old laptop costing 10,500 pesos adding 20,000 pesos in cash, the transaction is considered a sale, while if I will pay it with an old laptop costing 20,000 pesos and will add 7,000 pesos in cash, it is considered a barter. In dealing with prices, we all want to buy it cheaper, and sell it higher. In Article 1469, In order that the price may be considered certain, the determination thereof be left to the judgment of a special person or persons. The challenge there is to agree on a certain price. If for example, Me and Mr. Obsioma will not agree on the price of a 1-kilogram mango, we will then transfer the judgment to a third person, the farmer to judge it. If Mr. Obsioma bribe the farmer to make decisions in his favour, I can make sue him and let the court fix the price. Going to article 1470 and 1471, Gross inadequacy of price does not affect a contract of sale, except as it may indicate a defect in the consent, or that the parties really intended a donation or some other act or contract, and 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, respectively. If Juan Del Rio sold his farm to Pedro Penduko, the farms worth amounting to 10M, for only 5M, The sale can still be considered valid even when the price is discounted or inadequate of the farm. However, if evidences will arise that the sale was made in force, fraud, mistake, or undue influence, the contract will be annulled on such grounds. If the price is faked, Pedro may have to prove another consideration. Articles 1472 and 1473 are two related articles. It pertains to securities, grains, and other goods sold in a particular exchange or market. I will love to make stocks as an example. In 1472, the prices will be certain on stock exchanges on a particular day because it is the current market price. In 1473, for transactions to occur above or below the market price, the parties must agree on a certain price to have meeting of the minds, even outside the market price, the sale is

perfected. Furthermore, in Article 1474, if the price cannot be determined in accordance to the preceding articles, the contract is inefficacious. Thus, no sale can be made, no liability, no obligation. Following the 3 articles, Article 1475 explained the importance of meeting of the minds. Upon happening of which, the parties involved can demand fulfilment or performance, and of course, it must be subject to the provisions of the law governing the contracts. If I have agreed with my buyer of the stocks I have, then, I am obliged to transfer the ownership when the sale arises. Article 1476 talks about Auctions. Well, in the movies, the bidders bid for the highest price, for example, Michael Jacsons hat, the sale is perfected when the auctioneer announces its perfection by the fall of its hammer. When there is nobody else bidding for a higher price, when the hammer falls, the highest bidder gets the hat. Moving forward, Article 1477, says The ownership of the thing sold shall be transferred to the vendee upon the actual or constructive delivery thereof. Even when I have already paid for the items, the items will not be considered mine, until it is delivered in my doorstep. In transit, the items belong to the seller still. In 1478, the parties may stipulate that ownership in the thing shall not pass to the purchaser until he has fully paid the price. Of course in this article, partial payments will not transfer the ownership to the buyer. If I bought a car and paid only , even if its now in my possession, I dont own it still as there are still payments pending. In Article 1479, to promise to buy or sell a thing at a definite price will be demandable, both in the case of the buyer and seller. If we met minds, then we are both liable now. Article 1480 considers two guidelines. First, applies to fungible non-fungible things sold individually for a single or fixed price without consideration of their mass or quantity. Second relates to fungible things sold for a price fixed in relation to weight, number or measure. If a gasoline stations says it will sell gasoline for 50php without relation to quantity, a sale will not be perfected. In Article 1481, a population or the whole items can be judge in relation to the sample. If one mango taste sour, then the others will taste the same as well, as per judgement. Following the same example, when give an earnest money to the vendor of the mangoes, then that will be deducted from the total amount of sale because it is my down payment, a part of my purchase price, as stated in Article 1482. On the other hand, such sale can be made through word of mouth or oral agreements, even in the absence of a contract, according to Article 1483. In a contract of sale of personal property the price of which is payable in instalments, the vendor may exercise remedies, as stated in Article 1484. If I sell my Hermes Bag for 30,000 PhP, I can cancel the transaction if the buyer fails to pay 2 or more instalments. The preceding article can also be applied to contracts about leases, according to the following Article, 1485. If the lessee didnt really used the property but continued to pay, he can have the option to buy it instead, his payments will then be deducted to the purchase priced. Following it, in Article 1486, such payments will not be returned to lessee. When a sale happens, or for example, I sold my house for 3million,in Article 1487, The expenses for the execution and registration of the sale shall be borne by the vendor, unless there is a stipulation to the contrary. Hence, I pay for all the expenses necessary to transfer ownership, unless otherwise stated. The government has a project to make a boulevard from near city end to Gusa. These will make way for bicycles and people to walk safely. A lot of properties there are now in a difficult case. Businesses, houses, restaurants, etc. are affected. According to Article 1488, the expropriation of property for public use is governed by special laws. Because of the governments power of eminent domain, the owners cannot disobey the government and they are just forced to sell their property for the just compensation given by the authority. Knowing these no matter what the memories there are, and the scenery preserved, nothing can be done to go against the law. Chapter 2 talks about the capacity to buy or sell. When the thing is delivered to a minor or a person without capacity to act, the one who delivered must be responsible for the damages. If a 1 million dollar Hermes bag was delivered to my 6 year old cousin, the delivery boy will bear all the damages if something happens to the bag, as stipulated in Article 1489. Upon marriage, the husband and wife will have mutual ownership on anything. One of them cannot sell to another since it is their conjugal property. Mr. Smith cannot sell their house to Mrs. Smith as she has ownership in the house as well, unless the two are legally separated, or when they have pre natal agreement that such properties are separated, as stipulated in article

1490. Going forward in article 1491, I have realized that some people cannot take advantage of the other just because they are in control of it. For example, when my parents are abroad and I am living with my guardian, the guardian, cannot sell the house as she/he is not the owner of it. In article 1492, the prohibitions in the two preceding articles are applicable to sales in legal redemption, compromises and renunciations. Compromises, arises when parties avoid litigation. For example, instead of going to court, the parties will just agree on compensation. From the above mentioned articles. I have learned that a sale does not merely happen when a buyer and seller agrees. A lot of issues revolve around it, and the protection of both parties must be always considered to avoid risks and the involvement of legal actions in case of noncompliance.