Law on Sales and Credit Transactions

Flashcards on Law on Sales and Credit Transactions

By the contract of sale one of the contracting parties obligates himself to __

Transfer of ownership and to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent.

Contract for a piece of work: if the goods are to be manufactured specially for the customer and upon his __

Special order, and not for the general market

In a contract of sale the subject __

Is a thing and its delivery, in a contract for a piece of work, the subject is service

In dacion en pago, there is also a transfer of ownership of the thing delivered and it is likewise __

governed by the law on sales

In absolute sale, ownership __

Transfers upon delivery, actual or constructive, even if no total payment of the price has been made yet

A conditional sale is the kind of contract of sale where ownership __

automatically transfers to the buyer upon fulfillment of the condition

A Contract to Sell is a special kind of conditional sale where __

ownership does not automatically pass upon fulfillment of the condition

Natural elements of a contract are those which are deemed part of the contract even if not stipulated or even if the parties are unaware. E.g., __

warranties

The following persons cannot acquire by purchase, even at a __, either in person or through the mediation of another: The guardian, the property of the person or persons who may be under his guardianship.

Public or judicial auction

For the buyer, the cause is the delivery of the object, while for the seller, it is __

the payment of the price.

Should such person or persons be unable or unwilling to fix the price __

The contract shall be inefficacious, unless the parties subsequently agree upon the price.

In sales, service cannot be a valid subject since the purpose of a contract of sale __

is to transfer ownership and no person acquires ownership over service

A thing is determinate when __

It is particularly designated or Physical segregated from all other of the same class

Sale, being a consensual contract, is perfected by mere consent as to the object of the contract and upon the price, however __

transfer of ownership happens only after delivery

A period agreed upon under an Option Agreement by the offerer and the offeree __

Is not binding upon the offeror unless it is supported by a consideration distinct from the price

Earnest money __

Forms part of the purchase price and is proof of perfection of a contract of sale

Remedies of the vendee when there is a warranty against hidden defects __

The right to Rescind the contract plus damages

To affect third persons, there must be an Affidavit of Good Faith and the same is registered with the Chattel Mortgage Registry; or the MARINA – in case of vessels; and in case of vehicles with a report to the Land Transportation Office, however, the chattel mortgage will still be valid between parties if those are absent, which means that an Affidavit of Good Faith __

is required for validity.

Owners of adjoining lands __

has the right of redemption in case of transfers of land

Subject property for co-owners legal right of redemption, may be __

Real or personal property