Law On Sales

Effect of absence of price contract of sale is VOID
Effect of non-payment of price- Non-payment = resolutory condition; Remedy:

rescission or specific performance
Art 1458- def of contract of sale
Art 1459- thing must be licit and the vendor must have the right to transfer
ownership at time of delivery
Art 1460- thing must be determinate (or determinable) whithout necessity of a new
or further agreement between the parties
Art 1461 Object of sale can be: (things having potential existence; valid as
executory contract); Mere hope or expectancy (deemed subject to contition that the
thing will come into existence); sale of VAIN HOPE is VOID
Art 1462- Sale of Future Goods is valid (sale depends upon a contingency which may
or may not happen)
Art 1463- Sole owner of a THING may sell an undivided interest therein; Legal
effect= coownership
Art 1464- sale of undivided share of a specific MASS; sale of fungible goods; if mass
contains less than the number sold, the seller is bound to make good the deficiency
Subject matter (art 1463 &1464)= incorporeal right; ownership passes to the
buyer by the intention of the parties
Art 1465- things subject to resolutory condition may be the object of the contract of
sale
Art 1466- contract of sale vs agency
Art 1467- sale vs contract for a piece of work
Art 1468- sale vs barter; distinguished by manifest intention
Art 1469- certainty of price: (1) parties have agreed or fixed upon a definite amount;
(2)with reference to another thing certain; (3) left to the judgment of a specified
person (if 3rd person was unable or unwilling to fis the price- the contract will be
inefficacious; if he acted in bad faith or mistake- the court will fix the price)
Art 1470- gross inadequacy of price does not affect the validity of contract of sale
(except when there is defect in consent- contract can be annulled or parties really
intended a donation or other act/contract)
Art 1471- If price is simulated, the sale is void
Art 1472- price certain: price on a given day at particular market
Art 1473- The fixing of the price can never be left to the discretion of one of the
contracting parties
Art 1474- when price cannot be determined in accordance with the preceding
articles, or in any other manner, the contract is INEFFICACIOUS. If thing was already
delivered, the buyer must pay a reasonable price
Art 1475- contract of sale is perfected by mere consent
The contract is perfected at the moment there is meeting of minds upon the thing
which is the object of the contract and upon the price
Art 1476- Sale by auction
1. Sale of separate lots by auction are separate sales2. Sale is perfected by the fall of the hammer
Bidder may retract his bid and auctioneer may withdraw goods before the
hammer falls. Exception: if sale is to be without reserve, auctioneer cannot
withdraw the goods from sale once a bid has been made.
3. Right of seller to bid on the auction- Seller or his agent may bid on the
auction sale provided: (1) such right was reserved; (2) notice was given that
the sale is subject to a right to bid on behalf of the seller; (3) the right to bid
by the seller was not prohibited by law.
The purpose of notice is to avoid puffing or secret bidding
4. Sale by auction with a right to bid on behalf of the seller should be given
notice. Failure to do so may be treated as fraudulent by the buyer
Buyers are not also allowed to make agreement that only one of them shall
bid to knock it down at a lower price
Art 1477- ownership of the thing sold shall be transferred upon the ACTUAL or
CONSTRUCTIVE delivery thereof
Art 1478- parties may stipulate that ownership in the thing shall not pass until he
has fully paid the price
The delivery should be coupled with the INTENTION of delivering the thing sold.
Art 1479- a promise to buy and sell a determinate thing is reciprocally demandable.
Unaccepted imperfect promise or offer = policitacion no juridical effect
Option contract- preparatory contract, separate and distinct from the main contract;
binds the party who has given the option, not to enter into principal contract with
another person within the agreed terms; must supported by consideration distinct
from the price to be valid
Art 1480..
Art 1483- Contract of sale may be made in writing or by owrd of mouth
In case the contract of sale should be covered by the statute of frauds, contract
must be in wrting. (contracts that must be in writing (a) Sale of personal property at
a price not less than
P500.00;(b) Sale of real property or an interest therein regardless of the price
involved; and(c) Sale of property not to be performed within a year from the date
thereof regardless of the nature of the property)
and the price involved.
Art 1489- persons who may enter into contract of sale
Generally, contracts entered into by minor and other incapacitated persons, are
VOIDABLE
Sale by minors- valid
Art 1490- husband and wife cannot sell property to each other (contract is
INEXISTENT AND VOID) except: (1) separation of property was agreed upon
marriage settlements; (2) there has been a judicial separation of property under
article 191
Art 1491- persons not allowed to purchase:
1. Guardian
2. Agents
3. Executors and administrators
4. Public officers and employees
5. Persons connected with the administration of justice
6. Any others specially disqualified by law

Sale by agent to himself, without principals permission is INEFFECTUAL
1-3 voidable; can be ratified (by means of new contract)
4-6 void (bec it concerns public interest)
Art 1492- prohibitions extends tp sales in legal redemption, compromises and
renunciation
Art 1493

Law On Sales

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Effect of absence of price contract of sale is VOID

Effect of non-payment of price- Non-payment = resolutory condition; Remedy:

6. Any others specially disqualified by law

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