Sales Law and Contracts in the Philippine Civil Code

These flashcards cover essential concepts and provisions related to sales law as outlined in the Civil Code of the Philippines, ideal for studying and preparing for exams.

What obligates one party in a contract of sale?

One party obligates himself to transfer ownership and to deliver a determinate thing, while the other pays a price certain.

What are the essential elements of a contract of sale?

1. Consent, 2. Determinate thing (object), 3. Consideration.

In the context of a sale, what is a consensual contract?

A contract perfected at the moment of a meeting of minds on the object and price.

What does Article 1477 of the Civil Code state about ownership transfer?

Ownership is transferred upon the actual or constructive delivery of the sold item.

What are the two kinds of contracts of sale mentioned?

1. Absolute, 2. Conditional.

When is a thing considered determinate?

A thing is determinate when it is particularly designated or physically segregated from all others of the same class.

What is the legal significance of earnest money in a sale?

Earnest money indicates a binding agreement of sale and is proof of the contract's perfection.

What distinguishes a contract of sale from a contract to sell?

In a contract of sale, ownership is transferred upon delivery; in a contract to sell, ownership is not transferred until the full payment is made.

What rights does a buyer have if warranted against eviction?

The seller ensures the buyer will have legal and peaceful possession of the item sold.

What are implied warranties in the context of sales?

1. Warranty that the seller has the right to sell, 2. Warranty against eviction, 3. Warranty against hidden defects.

Under what condition can a seller cancel a sale under the Maceda Law?

If the buyer fails to pay installments for more than two months, after a grace period.

What does the Recto Law provide for buyers?

Buyers are entitled to a grace period of not less than 60 days when they fail to pay installments.

What is a double sale?

A situation where the same object of the sale is sold to different buyers.

What are the characteristics of an equitable mortgage?

A transaction lacking the formalities of a mortgage, but showing intent to secure a debt.

What is the right of first refusal?

The contractual right to purchase property before the seller can sell it to another party.

How is constructive delivery executed?

Delivery of certain symbols representing the object, pointing to the property, or through the delivery of the instrument of conveyance.

What happens in the case of partial loss of the sold item?

The buyer may choose to withdraw from the contract or demand the remaining part.

Can the right to repurchase be included in a separate document from the sale contract?

No, it must be reserved within the same instrument as that of the sale.

What is the prescriptive period for an action based on an express warranty?

Four (4) years if not specified in the contract.

What remedies does an unpaid seller have?

1. Action for money, 2. Damages, 3. Possessory lien, 4. Stoppage in transitu.

What is 'pactum commissorium'?

A stipulation for automatic vesting of title over the security in the creditor upon the debtor's default.