Law on Sales

Chapter 2 – Capacity to Buy or Sell

ARTICLE GENERAL RULE EXCEPTION ADDITIONAL INFORMATION

Article • All person who are • Case: Law Kinds of Incapacity:
1489 authorized in this code to determines that • Absolute - pertains to
Person who obligate themselves, may party suffers from persons who cannot bind
may Enter enter into a contract of either absolute or themselves. Ex. Minor,
into a sale. relative incapacity. Insane or demented
Contract of • Contracts entered into • However, where the persons.
Sale by a minor and other necessaries are • Relative Incapacity –
incapacitated persons sold and delivered where it exists only with
are voidable. to him without the reference to certain
intervention of the persons or class of
parent or guardian, property
he must pay a • Necessaries - those
reasonable price things which are needed
therefor. for sustenance, dwelling,
clothing and medical
attendance.
Article 1490 The husband and the wife Unless: Reason for the Rule:
Incapacity cannot sell property to each • When a separation • To prevent commission of
by Relation other of property was fraud or prejudice to third
agreed upon in the persons.
marriage • To prevent one from
settlements; unduly influencing the
other.
 • When there has been • To avoid indirect
a judicial separation donations.
of property under
article 191. (1458a)
Article 1491 The following persons • Exception for the Reason for Prohibition:
Incapacity cannot acquire by purchase, agent: unless the • TO Prevent frauds on the
by Reason even at a public or judicial consent of the part of the persons
auction, either in person principal has been enumerated therein and
or through the mediation given. minimize temptation to
of another: the exertion of undue and
• Guardian improper influence.
• Agents, sale entrusted to • The law does not trust
them. human nature to resist
• Executors and the temptation likely to
administrators arise out the antagonism
• Public officers and between interest of the
employees seller and the buyer.
• Justices, judges,
prosecuting attorneys,
clerks of superior and
inferior courts, and
other officers and
employees connected
with the administration
of justice
• Any others specially
disqualified by law.
 The prohibitions in the two
preceding articles are
applicable to sales in legal
redemption, compromises
and renunciations.
Article 1492 The prohibitions in the two 1. The relative incapacity
Prohibition preceding articles are applies also to sales by
Extends to applicable to sales in legal virtue of legal redemption,
Sales in Legal redemption, compromises compromise, and
Redemption and renunciations. renunciations:
• Compromise - contract
whereby the parties, by
reciprocal concessions,
avoid a litigation or put
an end to one already
commenced.
• Renunciation - creditor
gratuitously abandons
his right against his
creditor. Condonation
and Remission.
2. The persons disqualified to
buy referred to in Articles
1490 and 1491 are also
disqualified to become
lessees of the things
mentioned therein. (Art.
1646.)
 Chapter 3 – Effects of the Contract when the Thing Sold has been Lost

ARTICLE GENERAL RULE EXCEPTION ADDITIONAL INFORMATION

Article 1493 If at the time the contract But if the thing should Effect of loss of thing at the
Effect of of sale is perfected, the have been lost in part time of sale: (Remedies)
Loss of Thing thing which is the object of only, the vendee may 1. Thing entirely lost. —
at the Time the contract has been choose between Where the thing is entirely
of Sale entirely lost, the contract withdrawing from the lost at the time of
shall be without any effect. contract and perfection, the contract
demanding the is inexistent and void (Art.
remaining part, paying 1409[3].) because there is
its price in proportion no object.
to the total sum agreed 2. Thing only partially lost. —
upon. (1460a) If the subject matter is
only partially lost, the
vendee may elect between
withdrawing from the
contract and demanding
the remaining part, paying
its proportionate price.
Article 1494 Where the parties purport a Effect of loss in case of
Effect of sale of specific goods, and specific goods:
Loss in Case the goods without the • Sale divisible. — The second
of Specific knowledge of the seller has option is available only if
Goods perished in part or have the sale is divisible. A
wholly or in a material part contract is divisible when
so deteriorated in quality as its consideration is made
to be substantially changed up of several parts.
in character, the buyer may • Sale indivisible. — Suppose
at his option treat the sale: the sale is not divisible,
(1) as avoided; or what price is the buyer to
(2) as valid in all of the pay for the remaining
existing goods or in so much goods if he elects to
thereof as have not continue with the sale? It
deteriorated, and as binding is believed that the buyer
the buyer to pay the agreed should be made to pay only
price for the goods in the proportionate price
which the ownership will of the remaining goods. If
pass, if the sale was divisible. the sale is indivisible, the
object thereof may be
considered as a specific
thing.