Activity Sales 2

San Beda University
College of Arts and Sciences

Department of Legal Management
Asynchronous Activity Nos. 2

-Contract of Sale and Other Contracts.
Name:____________________ Section:____ Date:_______
Objective: This activity is aimed at analyzing other commercial

transactions that has some semblance and import of a contract of sale
but are contemplate a different kind of agreement.
Instruction/s: Read each item carefully. Answer the sentence that

follows completely. Do not forget to write your name and section in
the space provided and submit the activity before the deadline. NO
LATE submissions will be accepted.
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I. On other kinds of contract the Civil Code provides:
ARTICLE 1466. In construing a contract containing provisions

characteristic of both the contract of sale and of the contract of agency to
sell, the essential clauses of the whole instrument shall be considered. (n)
ARTICLE 1467. A contract for the delivery at a certain price of an article

which the vendor in the ordinary course of his business manufactures or
procures for the general market, whether the same is on hand at the time
or not, is a contract of sale, but if the goods are to be manufactured
specially for the customer and upon his special order, and not for the
general market, it is a contract for a piece of work. (n)
ARTICLE 1468. If the consideration of the contract consists partly in

money, and partly in another thing, the transaction shall be characterized
by the manifest intention of the parties. If such intention does not clearly
appear, it shall be considered a barter if the value of the thing given as a
part of the consideration exceeds the amount of the money or its
equivalent; otherwise, it is a sale.
Questions:
a. What is a contract of sale? Is this the same as a contract to sell?

Compare and contrast both contracts.
b. What is a contract of piece of work and a contract of sale?
c. According to law on obligations, if the debtor is not able to fulfill his

or her obligation to the creditor- the latter may have third persons
have its fulfillment at the expense of the former. Is this also true in a
contract of a piece of work?
c. What is barter? What is the rule in determining whether a contract

is one of sale or barter?
II. Consideration-Purchase Price, the Civil Code states:
ARTICLE 1469. In order that the price may be considered certain, it shall
be sufficient that it be so with reference to another thing certain, or that the
determination thereof be left to the judgment of a special person or
persons.
Should such person or persons be unable or unwilling to fix it, the contract
shall be inefficacious, unless the parties subsequently agree upon the price.
If the third person or persons acted in bad faith or by mistake, the courts
may fix the price.
Where such third person or persons are prevented from fixing the price or
terms by fault of the seller or the buyer, the party not in fault may have
such remedies against the party in fault as are allowed the seller or the
buyer, as the case may be. (1447a)
ARTICLE 1470. Gross inadequacy of price does not affect a contract of sale,
except as it may indicate a defect in the consent, or that the parties really
intended a donation or some other act or contract. (n)
ARTICLE 1471. If the price is simulated, the sale is void, but the act may be
shown to have been in reality a donation, or some other act or contract. (n)
ARTICLE 1472. The price of securities, grain, liquids, and other things shall
also be considered certain, when the price fixed is that which the thing sold
would have on a definite day, or in a particular exchange or market, or
when an amount is fixed above or below the price on such day, or in such
exchange or market, provided said amount be certain. (1448)
ARTICLE 1473. The fixing of the price can never be left to the discretion of
one of the contracting parties. However, if the price fixed by one of the
parties is accepted by the other, the sale is perfected. (1449a)
ARTICLE 1474. Where the price cannot be determined in accordance with

the preceding articles, or in any other manner, the contract is inefficacious.
However, if the thing or any part thereof has been delivered to and
appropriated by the buyer, he must pay a reasonable price therefor. What is
a reasonable price is a question of fact dependent on the circumstances of
each particular case. (n)
ARTICLE 1475. The contract of sale is perfected at the moment there is a

meeting of minds upon the thing which is the object of the contract and
upon the price.
From that moment, the parties may reciprocally demand performance,

subject to the provisions of the law governing the form of contracts. (1450a)
ARTICLE 1476. In the case of a sale by auction:
(1) Where goods are put up for sale by auction in lots, each lot is the subject
of a separate contract of sale.
(2) A sale by auction is perfected when the auctioneer announces its

perfection by the fall of the hammer, or in other customary manner. Until
such announcement is made, any bidder may retract his bid; and the
auctioneer may withdraw the goods from the sale unless the auction has
been announced to be without reserve.
(3) A right to bid may be reserved expressly by or on behalf of the seller,

unless otherwise provided by law or by stipulation.
(4) Where notice has not been given that a sale by auction is subject to a
right to bid on behalf of the seller, it shall not be lawful for the seller to bid
himself or to employ or induce any person to bid at such sale on his behalf
or for the auctioneer, to employ or induce any person to bid at such sale on
behalf of the seller or knowingly to take any bid from the seller or any
person employed by him. Any sale contravening this rule may be treated as
fraudulent by the buyer. (n) Iddids
ARTICLE 1477. The ownership of the thing sold shall be transferred to the
vendee upon the actual or constructive delivery thereof. (n)
ARTICLE 1478. The parties may stipulate that ownership in the thing shall
not pass to the purchaser until he has fully paid the price. (n)
ARTICLE 1479. A promise to buy and sell a determinate thing for a price
certain is reciprocally demandable.
An accepted unilateral promise to buy or to sell a determinate thing for a

price certain is binding upon the promisor if the promise is supported by a
consideration distinct from the price. (1451a)
ARTICLE 1480. Any injury to or benefit from the thing sold, after the
contract has been perfected, from the moment of the perfection of the
contract to the time of delivery, shall be governed by articles 1163 to 1165,
and 1262.
This rule shall apply to the sale of fungible things, made independently and
for a single price, or without consideration of their weight, number, or
measure.
Should fungible things be sold for a price fixed according to weight,

number, or measure, the risk shall not be imputed to the vendee until they
have been weighed, counted, or measured and delivered, unless the latter
has incurred in delay. (1452a)
ARTICLE 1481. In the contract of sale of goods by description or by sample,

the contract may be rescinded if the bulk of the goods delivered do not
correspond with the description or the sample, and if the contract be by
sample as well as description, it is not sufficient that the bulk of goods
correspond with the sample if they do not also correspond with the
description.
The buyer shall have a reasonable opportunity of comparing the bulk with
the description or the sample. (n)
ARTICLE 1482. Whenever earnest money is given in a contract of sale, it

shall be considered as part of the price and as proof of the perfection of the
contract. (1454a)
ARTICLE 1483. Subject to the provisions of the Statute of Frauds and of any
other applicable statute, a contract of sale may be made in writing, or by
word of mouth, or partly in writing and partly by word of mouth, or may be
inferred from the conduct of the parties. (n)
ARTICLE 1484. In a contract of sale of personal property the price of which

is payable in installments, the vendor may exercise any of the following
remedies:
(1) Exact fulfillment of the obligation, should the vendee fail to pay;
(2) Cancel the sale, should the vendee’s failure to pay cover two or more
installments;
(3) Foreclose the chattel mortgage on the thing sold, if one has been
constituted, should the vendee’s failure to pay cover two or more
installments. In this case, he shall have no further action against the
purchaser to recover any unpaid balance of the price. Any agreement to the
contrary shall be void. (1454-A-a)
ARTICLE 1485. The preceding article shall be applied to contracts

purporting to be leases of personal property with option to buy, when the
lessor has deprived the lessee of the possession or enjoyment of the thing.
(1454-A-a)
ARTICLE 1486. In the cases referred to in the two preceding articles, a

stipulation that the installments or rents paid shall not be returned to the
vendee or lessee shall be valid insofar as the same may not be
unconscionable under the circumstances. (n)
ARTICLE 1487. The expenses for the execution and registration of the sale
shall be borne by the vendor, unless there is a stipulation to the contrary.
(1455a)
ARTICLE 1488. The expropriation of property for public use is governed by

special laws. (1456)
Questions:
a. John offered to have 6 sacks of Sinandomeng rice sold to Jose.

Each sack has 25kgs of rice. Jose accepted the offer and asked
John how much is he selling the rice for. John mentioned that
Sinandomeng in the public market is currently being sold at Php
55 per kilo.
- Is there a perfected contract of sale? Explain.
- Supposing in the above problem, Jose manifested that he is

willing to purchase the rice at a discounted price of Php 54
per kilo- is their a perfected contract of sale?
b.
iven the above definition, what are the elements/requisites of a
contract of sale? Explain each.
d. Supposing one of the elements/requisites is lacking, what is the

effect? Supposing there is a defect in any one of the
elements/requisites, what is the effect?
II. Object/Subject matter of a contract of sale
Article 1459- The thing must be licit, and the vendor must have the
right to transfer the ownership thereof.
a. Can the vendor sell something that he does not own at the
moment of the perfection of the contract of sale? Explain.
b. What does licit mean? Give an example.
c. Can a person who is not the vendor sell an object that does
entirely belong to him?
Article 1460- A thing is determinate when it is particularly designated

or physically segregated from all other of the same class.
The requisite that a thing be determinate is satisfied if at the time the

contract is entered into, the thing is capable of being made
determinate without the necessity of a new or further agreement
between the parties.
a. When is a thing considered determinate? Provide your own

example.
b. It is said that objects of sale must be within the commerce of man.
What does this mean? Give examples.
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San Beda University

College of Arts and Sciences

Asynchronous Activity Nos. 2

Name:____________________ Section:____ Date:_______

Objective: This activity is aimed at analyzing other commercial

Instruction/s: Read each item carefully. Answer the sentence that

I. On other kinds of contract the Civil Code provides:

ARTICLE 1466. In construing a contract containing provisions

ARTICLE 1467. A contract for the delivery at a certain price of an article

ARTICLE 1468. If the consideration of the contract consists partly in

a. What is a contract of sale? Is this the same as a contract to sell?

c. According to law on obligations, if the debtor is not able to fulfill his

c. What is barter? What is the rule in determining whether a contract

II. Consideration-Purchase Price, the Civil Code states:

ARTICLE 1474. Where the price cannot be determined in accordance with

ARTICLE 1475. The contract of sale is perfected at the moment there is a

From that moment, the parties may reciprocally demand performance,

ARTICLE 1476. In the case of a sale by auction:

(2) A sale by auction is perfected when the auctioneer announces its

(3) A right to bid may be reserved expressly by or on behalf of the seller,

An accepted unilateral promise to buy or to sell a determinate thing for a

Should fungible things be sold for a price fixed according to weight,

ARTICLE 1481. In the contract of sale of goods by description or by sample,

ARTICLE 1482. Whenever earnest money is given in a contract of sale, it

ARTICLE 1484. In a contract of sale of personal property the price of which

ARTICLE 1485. The preceding article shall be applied to contracts

ARTICLE 1486. In the cases referred to in the two preceding articles, a

ARTICLE 1488. The expropriation of property for public use is governed by

a. John offered to have 6 sacks of Sinandomeng rice sold to Jose.

- Is there a perfected contract of sale? Explain.

- Supposing in the above problem, Jose manifested that he is

d. Supposing one of the elements/requisites is lacking, what is the

II. Object/Subject matter of a contract of sale

b. What does licit mean? Give an example.

Article 1460- A thing is determinate when it is particularly designated

The requisite that a thing be determinate is satisfied if at the time the

a. When is a thing considered determinate? Provide your own

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