Professional Documents
Culture Documents
which
effectively brings within its grasp a
whole gamut of transfers whereby
ownership of a thing is ceded for a
consideration.
By the contract of sale, one of the
contracting parties obligates himself
to:
1. Transfer the ownership of and
deliver a determinate thing
2. And the other, to pay therefore
a price certain in money or its
equivalent
-ABSENCE of any of the essential
elements will NEGATE the existence of
a perfected contract of sale.
PHASES OR STAGES OF A CONTRACT
OF SALE
1. PREPARATION, CONCEPTION OR
GENERATIONperiod
of
negotiation
and
bargaining,
ending at the moment of
agreement of agreement of the
parties.
2. PERFECTION
contract
birth
of
the
3. CONSUMMATION OR DEATH
fulfilment or performance of the
terms agreed upon in the
contract
2. CONSENSUAL perfected by
MERE CONSENT.
-manifested by the meeting of
the minds as to the offer and
acceptance thereof. (Castillo vs
Reyes , Amado vs Salvador)
- it is the OPPOSITE of
ALEATORY consideration is
NOT equivalent of what has
been received (example lotto
ticket price vs the amount to be
given if the ticket wins)
its
existence
DOESNOT depend upon the
existence
and
validity
of
another contract.
6. NOMINATE specific
given by law sale
name
CONDITIONAL SALE
ABSOLUTE SALE:
the
transfer
of
ownership, NOT the perfection
of
the
contract,
that
subjected to a condition.
is
CONDITION
IMPOSED
ON
THE
PERFECTION OF THE CONTRACT VS
CONDITION
IMPOSED
ON
THE
PERFORMANCE OF AN OBLIGATION:
1. Failure
to comply with CONDITION IMPOSED ON THE
PERFECTION OF THE CONTRACT
results in the FAILURE OF A
CONTRACT,
2. Failure
to
comply
with
CONDITION IMPOSED ON THE
PERFORMANCE
OF
AN
OBLIGATION only gives the
other party the OPTION to
REFUSE TO PROCEED with the
sale or WAIVE the condition
( Lim vs CA ; Romero vs CA)
CONDITIONAL SALE CONSIDRED AN
ABSOLUTE SALE
-A deed of Sale is absolute in nature
although denominated a CONDITIONAL
SALE
absent
such
stipulations
reserving title to the vendor until FULL
PAYMENT of the purchase price, nor
determinate
certain
and
3. PRICE CERTAIN
consideration.
cause
or
HIDDEN
ACCIDENTAL ELEMENTS
=they MAY or MAY NOT exist
depending on the stipulations of the
parties like CONDITIONS, PAYMENT of
interest, PLACE and TIME of payment
and the like.
SIGNIFICANCE OF NOTARIZATION OF A
DEED OF SALE
ABSENCE OF NOTARIZATION
=would NOT necessarily invalidate the
transaction.
=An invalidly notarized deed of sale is
NOT a public document but it is to be
considered
merely
as
private
document. In which case, NOT only
the due execution of the document
must
be
proven
but also
its
authenticity.
FAILURE TO PAY CONSIDERATION VS
LACK OF CONSIDERATION
FAILURE TO PAY CONSIDERATION
=results in a right to demand the
fulfilment or cancellation of the
obligation under an existing valid
contract.
LACK OF CONSIDERATION
=prevents the existence of a valid
contract.
CONTRACT OF SALE VS CONTRACT TO
SELL
CONTRACT OF SALE
1. Title over the property passes to the
buyer UPON delivery unless there is a
contrary agreement.
2. Non-payment of the purchase price
is
a
NEGATIVE
RESOLUTORY
CONDITIONthe
sale
becomes
CONTRACT TO SELL
1. Ownership is RETAINED by seller
whether or not there is delivery.
Ownership passes to buyer ONLY
UPON FULLPAYMENT OF PRICE.
2. The payment in FULL is a POSITIVE
SUSPENSIVE CONDITION if the price
is NOT PAID, the obligation to deliver
and to transfer ownership on the part
of the seller does NOT become
effective.
=Non-payment prevents the existence
of the contract.
3. Whether there is delivery or not ,
the seller RETAINS the ownership of
the object.
a
a
SIMULATED
CONTRACT
STATING
THERE IS CONSIDERATION WHERE
THERE IS NONE IS VOID AB INITIO
=sale is null and void and produces no
effect whatsoever where the same is
without cause or consideration in that
the purchase price which appears
thereon as paid has in effect never
been paid by the purchaser to the
vendor.
EFFECT OF ABSENCE OF PROVISO
=Deed of sale is absolute in nature,
although denominated as DEED OF
CONDITIONAL SALE in the absence of
DOUBT,
VS
SALE WITH
EQUITABLE
1.
Property
is
subjected
expropriation ( Art 435 & 1488)
to
are
NOT
4. Marital rights
3. Right to support
REASONS:
services
are
NOT
determinate things and NO transfer of
ownership is available in services.
IN PARI DELICTO
=rights of the parties embroiled in a
void contract due to the ILLEGALITY of
the object shall be determined by:
ARTICLE 1411 (
criminal offense)
Acts
constitute
ARTICLE
1412
(Acts
does
constitute criminal offense)
INTRANSMISSIBLE RIGHTS :
1. Right to Suffrage
not
IS
IS
DIFFERENT
BE
fruits
expected
to
be
GOODS
=includes all chattels personal but not
things in action or money of legal
tender in the Philippines.
=includes growing fruits or crops.
=Real property in NOT included in the
term goods.
KINDS OF GOODS
1. Existing goods owned or possessed
by the seller actually existing at the
time of the perfection of the contract