RFBT Law on Sales

These flashcards cover key concepts, definitions, and distinctions related to the law on contracts of sale, ensuring a comprehensive review for exam preparation.

Contract of Sale

A contract whereby the seller transfers ownership and delivers a determinate thing, and the buyer pays a price certain.

Seller/Vendor

The contracting party who obligates to transfer ownership and deliver a determinate thing.

Buyer/Vendee

The contracting party who obligates to pay a price certain in money or its equivalent.

Essential Elements of Contract of Sale

Elements necessary for validity; absence of any renders the contract void.

Subject Matter

Must be a determinate thing that is lawful, owned by the vendor at delivery, and existing or to be manufactured.

Emptio Rei Speratae

Sale of future thing with certainty of its existence.

Emptio Spei

Sale of hope or expectancy without certainty that the thing will exist.

Price Certain

The price in a contract of sale must be definite, not fictitious.

Moment of Perfection

The contract is perfected when there is a meeting of minds on the determinate thing and price.

Natural Elements of Contract of Sale

Elements presumed to exist unless validly waived, like warranties against eviction and hidden defects.

Bilateral Contract

Both parties are required to perform obligations; seller transfers ownership, buyer pays price.

Onerous Contract

Both parties give valuable considerations to acquire rights.

Dacion En Pago vs Contract of Sale

Dacion extinguishes obligations while sale creates them; sale has greater price fixing freedom.

Warranty Against Eviction

Presumed to exist in contracts; protects buyer from losing possession due to a third party's claim.

Delivery

Act of transferring ownership from seller to buyer; forms include actual or constructive delivery.

Actual Delivery

Physical transfer of possession of the sold thing.

Constructive Delivery

Transfer of ownership through means other than physical possession.

Unpaid Seller

A seller who has not been paid the full price or has received bills as conditional payment.

Right of Resale

Unpaid seller's right to resell goods under certain conditions.