Philippine Law on Sales Review [PDF]

Nov 24, 2012 - Notes on Philippines Law on Sales from the Civil Code for students and law reviewers.

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Philippine Law on Sales Review Notes on Philippine Law on Sales from the Civil Code for students and law enthusiasts.

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Saturday, November 24, 2012

Article 1460: Definition of a Determinate thing Article 1460. A thing is determinate when it is particularly designated or physically segregated from all others of the same class.

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The requisites 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.

Determinate thing A thing is determinate or specific when it is distinct from all others of the same class. A determinate thing is distinct because of its individuality. Examples of a determinate thing are: the laptop you are viewing this website on, your car (if you own only one), the lot on 443 Sto. Cristo, Guagua, Pampanga. As noted on the preceding articles, it is not necessary that the thing is not determinate during the perfection of the contract, for as long as it is determinable or capable of being determinate during the delivery of the object, without the necessity of a new or further agreement from the parties. Also, it is not necessary that the object is seen during the formation of the contract. Example:

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Apollo obligates himself to sell all of the cattle in a particular farm to Artemis for a specific sum of money. If at the formation of the contract Apollo did not specify the farm, or if he owns several farms, then the object of the contract is not determinate. The contract therefore is null and void.

at Saturday, November 24, 2012

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Labels: article 1460, determinate thing, law on sales, philippine civil code

Article 1459: Requisites on Object of the Contract of Sale Article 1459. The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time it is delivered.

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Requisites for the object of the Contract of Sale The thing or the object of the contract of sale must be determinate or capable of being determinate. It also needs to be licit or lawful, that is, it should not be contrary to law, morals, good customs, public order, and public policy. Third, it should not be impossible. The object of the contract must be within the commerce of men, which means that it is legal and its ownership is transferable. Rights that are transmissible or personal may also be the object of the contract of sale. Examples of this is the right of usufruct. It should be noted that services (or obligations to do) cannot be the object of a contract of sale, even if they can be the object of a contract. (Contract for a piece of work)

Licit vs. Illicit things Article 1459 of the Philippine Civil Code requires that the object of the contract of sale must be licit or lawful. Illicit things are therefore things that are unlawful or illegal. Things can be illicit per se or per accidens. Per se is a Latin phrase which means "in itself". Things that are illicit or illegal per se are things that are inherently unlawful. An example of this is the selling of rotten food for consumption, since it may be the cause of food poisoning. Per accidens is a Latin phrase which means "by chance". Things that are illicit per accidens then are things that are illegal because of a provision that declares it unlawful. An example of this would be the selling of jueteng tickets.

Right to transfer ownership One can only sell what he owns. In order for the sale to be valid, the vendor must be the owner of the object of the contract of sale (or authorized by the owner to sell the object) in order to transfer the ownership of the thing being sold. It should be noted however that if at the time of delivery the right to transfer the ownership exists, then the contract is valid. This means that it is not necessary that the seller has the ownership of the object of the contract of sale during the formation or perfection of the contract for as long as the ownership exists during the time of delivery. This is of course to give way for future goods or goods that depend on contingency to be the object of the contract of sale. at Saturday, November 24, 2012

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Labels: article 1459, contract of sale, law on sales, philippine civil code, requisites concerning object

Article 1458: Definition of a Contract of Sale Article 1458. By the contract of sale one of the contracting parties obligates himself to transfer the ownership and to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent. A contract of sale may be absolute or conditional.

Definition A contract of sale is a contract where one party obligates himself to deliver a determinate thing to another part, who in turn, obligates himself to the other to pay a sum of money or its equivalent.

Essential Requisites The contract of sale, being a contract, has the same requisites, namely, consent, object, and cause. 1. Consent - Also called meeting of the minds. mutual agreement, or consensus ad idem. It essentially refers to a situation where the two parties of the contract has a mutual understanding in the formation of the contract of sale. This essentially means that there is consent in the part of the seller to transfer ownership of the determinate thing and in the part of the buyer to pay the equivalent price. Note that both of the parties must have the legal capacity to give their consent. 2. Object - This is the subject matter of the contract. It must be determinate or capable of being determinate. 3. Cause - This refers the the price, in terms of money or its equivalent.

Kinds of Contract of Sale 1. Absolute - This refers to a contract of sale that is not subject to any condition or does not require any condition for the transfer of ownership. 2. Conditional - This refers to a contract of sale that contemplates contingency, or is subject to a condition. It follows then that the delivery of the determinate thing does not necessarily transfer ownership, unless the contingency or condition is fulfilled.

at Saturday, November 24, 2012

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Labels: article 1458, definition of sale, law on sales, philippine law on sales, requisites of a contract of sale

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