Paul Michael L.

Buo Sales
JD4201 Atty. Jumrani

1. Nemo Dat Quod Non Habet is a principle in law which means that nobody can dispose of that which
does not belong to him. If the seller does not have title over the object of the sale, then the sale is not
valid. Article 1459 of the New Civil Code provides that, The thing must be licit and the vendor must
have a right to transfer the ownership thereof at the time it is delivered. Not having a title over the
object of sale means that the seller does not have a right to transfer the ownership of the thingnemo
dat quod non habet. Thus, there can be no sale.

2. In the case of San Andres v Rodriguez, the subsequent sale was deemed to pass the test of
determinateness of the object because the subject lot was capable of being determined without the
need of a new contract. Based on the findings of the Court, the lot which was subsequently sold to
Rodriguez was said to adjoin the previously sold lot on three sides thereof. The previously sold lot
referred to was the 345-square meter portion located at the middle of Lot 1914-B-2 which was
previously purchased by Rodriguez. No new contract was needed to determine the object of the sale.
Therefore the subsequent sale passed the test of determinateness of the object.

3. Emptio rei speratae is the sale of an expected thing. If the sale did not materialize, the sale is not
effective and the seller has no obligation to pay the price to the buyer. Also emptio rei speretae applies
only to determinate things. On the contrary, when we talk about sale of things to be manufactured or
produced, we talk about the sale of generic things which may still come into existence.

4. Price is the sum stipulated as the equivalent of the thing sold. For price to be valid it must be real, it
must be in money or its equivalent , and it must be certain and ascertainable. Also, it is not required
that the price be the exact valuation of the thing purchased because the parties are free to stipulate on
the price and gross inadequacy of price does not affect a contract of sale (Article 1470).

5. There are three ways of ascertaining the price: (1) if it be so with reference to another thing certain or
that the (2) determination of the price be left to the judgement of a specified person or person. (Article
1469, NCC), and (3) when the price fixed is that which the thing sold would have on a definite day, or in
a particular exchange or market, or when an amount is fixed above or below the price on such day, or in
such exchange or market provided said amount be certain. (Article 1472, NCC)

6. Lack of consideration means that the consideration of the contract of sale is invalid due to it being
unlawful, contrary to good morals, public order and public policy. On the other hand, failure of
consideration the consideration is valid, however, one of the parties fails to perform or execute his
obligation to the other party.

7. In the case of Toyota Shaw v Ca, the Court ruled that a definite agreement on the manner of payment
of the price is essential in the formation of a binding and enforceable contract of sale. Such is so because
the agreement concerning the manner of payment goes into the price such that a disagreement on the
manner of payment is tantamount to a failure to agree on the price. Definiteness as to the price is an
essential element of a binding agreement to sell personal property.

8. Under the law, if the agent embezzles or fails to remit the price the owner/principal/seller may: (1)
demand payment with damages, (2) demand the recission or the cancellation of the contract with
damages, and (3) file a criminal case of estafa against the agent.

9. A contract of sale is a contract for the delivery at a certain price of an article which the vendor in the
ordinary course of his business manufactures or procures for the general market, whether the same is
on hand at the time or not. On the other hand, a contract for a piece of artwork exists if the goods are to
be manufactured specially for the customer and upon his special order. (Article 1467, NCC)

10. No. A contract for a piece of work involves goods which are to be manufactured specially for the
customer and not for the general market while a contract of sale involves goods which are
manufactured for the general market.