Professional Documents
Culture Documents
BUSINESS LAW1
BL.M - 1602
LAW ON SALES
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MARGINAL NOTES
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shall remain with the seller until full payment is made by the
buyer.
Kinds of promise:
1. Accepted unilateral promise to sell in which the
promissee (acceptor) elects to buy
2. Accepted unilateral promise to buy which the
promissee (acceptor) promise to sell.
3. Bilateral promise to buy and sell reciprocally
accepted.
Effect of unaccepted unilateral promise no juridical effect or
legal bond policitation.
Meaning of option contract and earnest money;
Option Contract agreement granting a privilege to buy or
sell within an agreed time and at a determined price. It is a
separate and distinct contract from that which the parties
may enter into upon consummation of contract. It must be
supported by consideration.
Earnest money part of the purchase price advanced by the
vendee to vendor as token of perfection of the contract.
Effect of accepted unilateral promise
A unilateral promise to sell or to buy a determinate
thing for a price certain does not bind the promisor
even if accepted and may be withdrawn at any time
if not supported by a consideration distinct and
separate from the price.
Effect of bilateral promise to buy and sell- the same effect as a
perfected contract
Sale of goods by description and/or sample;
1. By description
2. Sale by sample
3. Sale by description and by sample
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BL.M-1602.Law on Sales
a. May rescind; or
b. Pay the proportionate amount (lower)
When vendee entitled to rescind sale of realty?
Rule where there is a greater area or number (immovable)?
Where in sale of real estate made for a lump sum (cause is the
thing sold regardless of the number or measure)?
Prescription of action- 6 months from delivery
Rule on Double Sales:
1. As to Movables- the ownership shall be acquired by the
vendee who first takes possession in good faith.
2. As to Immovables the ownership shall belong to:
a. The vendee who first recorded in good faith in
the registry of property (registry of deeds).
b. In the absence of registration, the vendee who
first takes possession in good faith.
c. In the absence of both registration and
possession, the vendee who presents oldest
title in good faith.
Law on Double Sales applies only to lands covered by
torrens title.
CONDITIONS AND WARRANTIES:
Meaning of condition uncertain event or contingency, may or
may not come.
Effect of conditions?
Meaning of warranty
Is any representation made by the seller of thing
with respect to its character, quality or ownership,
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6. Mrs. Lim agrees to sell his watch to Mr. Lomotan for P10,
000 in cash, and places the timepiece inside the car of Mr.
Lomotan, while he goes to an ATM to withdraw money.
Before Mr. Lomotan returns, Mr. Co arrives and claims
ownership of the watch presenting a document signed by
Mr. Lomotan selling the time piece to him. Mrs. Lim
discards the claim asserting that she is still the owner. In this
situation, who is the rightful owner of the watch?
A. Mr. Lomotan, since he & Mrs. Lim as already come into
an agreement and there is actual delivery of the watch
from Mrs. Lim to Mr. Lomotans vehicle
B. Mrs. Lim, because Mr. Lomotan has not yet paid the
agreed price
C. Mr. Co, given that he has a written agreement between
him and Mr. Lomotan
D. Both Mrs. Lim and Mr. Lomotan owns the watch since
their agreement is still incomplete
E. None as of the moment for the reason that the sale of
the watch is still ongoing
7. One of the following is not correct
A. The sole owner of the thing may sell an undivided
interest therein.
B. Things having a potential existence may be the object of
contract of sale.
C. A thing is generic when it is particularly designated or
physically segregated from all others of the same class.
D. Things subject to a resolutory condition may be the
object of the contract of sale.
8. Na Pulis offered to sell for P100,000 her house and lot to En
Really who was interested in buying the same. In her letter
to En Really, Na Pulis stated that she is giving him a period of
20 days within which to raise the amount and that as soon as
En Really is ready, they will sign the deed of absolute sale. 7
days before the expiration of the 20 day period, Na Pulis
went to En Really and told him that she is no longer willing to
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Contract of Sale
Contract of Barter
Contract of Agency
None of the above
13. Action by the vendee against the vendor to nullify the sale
due to some vices or defects which render the object of sale
unfit for the use intended or knowledge of which, the
vendee would not have bought the thing
A. Accion redhibitoria
B. Accion pauliana
C. Accion reivindicatoria
D. Accion quanti minoris
14. Effect of price fixed by third person can be considered void
except
A. Third person adhere to the instructions laid down by
parties involve
B. Third person acts in bad faith
C. Third person disregards data and parameters given by
parties involve
D. None of the above
E. All of the above
15. A contract of agency to sell can be considered when
A. Receives the goods as the owner
B. Only accounts for the proceeds of the sale he/she may
make on the principals behalf
C. Not bound to the instructions of the principal and
cannot return object sold
D. None of the above
E. All of the above
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sale is
A.
B.
C.
D.
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Mutuum
Barter
Sale
Partly sale and partly barter
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A.
B.
C.
D.
E.
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B.
C.
D.
E.
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