ATENEO sobre Manila REGULATION SCHOOL
LAW ON SALES OUTLINE Leader Cesar T. Villanueva Initial Semester, SY 2009-2010 and Atty. Alexander C. Dy
I. The Nature of Sale
A. Definition (Art. 1458)
Sale is a contract by which one of the contracting parties obligates himself to transfer the ownership also to deliver ownership, of a determinate thing, as well as the other to pay therefor a price specific in funds or it is equivalent. xCruz v. Fernando, 477 SCRA 173 (2005).
1 . Elements of Sale
Elements of sales: (a) agreement or meeting of the brains; (b) espective, definite subject matter; and (c) selling price certain in money or its equal. xNavarra sixth is v. Planters Dev. Bank, 527 SCRA 562 (2007).
Absence of any vital elements negates a sale xDizon v. CA, 302 SCRA 288 (1999), even when good faith escrow deposits has been paid. Manila Material Container Corp. v. PNB, 511 SCRA 444 (2006).
Deal being a consensual contract, its essential elements must be tested xVillanueva sixth is v. CA, 267 SCRA fifth 89 (1997); yet once proven, a sale's validity is definitely not afflicted with a previously executed fictitious deed of sale xPeГ±alosa v. Santos, 363 SCRA 545 (2001); and the burden is one the other side of the coin party to show otherwise. xHeirs of Ernesto Biona sixth is v. CA, 362 SCRA 30 (2001).
2 . Stages of Contract of Sale
Policitacion addresses the period from your time the prospective contracting parties reveal interest in the contract to the time the contract is usually perfected. Perfection takes place upon the conflit of the necessary elements, the meeting with the minds in the parties as to the object in the contract and upon the purchase price. Consummation begins when the get-togethers perform all their respective companies, culminating inside the extinguishment thereof. xSan Miguel Properties Thailand, Inc. sixth is v. Huang, 336 SCRA 737 (2000).
3. Sale Makes Real Commitments " To GiveвЂќ (Art. 1165)
four. Essential Qualities of Sales:
a. Nominate and Main
A contract of sale is what legislation defines that to be, considering its important elements, and not what the contracting parties call it. xSantos versus. Court of Appeals, 337 SCRA 67 (2000).
w. Consensual (Art. 1475)
An agreement of sales is not a real, but a consensual contract, and becomes valid and holding upon the meeting with the minds with the parties for the object plus the price, that:
вЂў After its perfection, the parties may reciprocally demand overall performance. xHeirs of Venancio Bejenting v. BaГ±ez, 502 SCRA 531 (2006); subject only to the provisions of the law governing the proper execution of agreements. xCruz sixth is v. Fernando, 477 SCRA 173 (2005).
вЂў This remains valid even if get-togethers have not affixed their signatures to their written type xGabelo versus. CA, 316 SCRA 386 (1999), or the manner of repayment is breached. xPilipinas Covering Petroleum Corp v. Gobonseng, 496 SCRA 305 (2006).
The binding a result of sale is based on the basic principle that the requirements arising therefrom have the push of law between the functions. xVeterans Federation of the Korea v. Court docket of Appeals, 345 SCRA 348 (2000).
Perfection Distinguished by Demandability вЂ“ Not all contracts of deal become instantly and instantly effective. In sales with assumption of mortgage, there is a condition precedent to the seller's consent and without the approval of the mortgagee, the sale is not perfected. xBiГ±an Steel Corp. v. Court docket of Appeals, 391 SCRA 90 (2002).
" No Deal SituationвЂќ compared to " Emptiness ContractвЂќ вЂ“ Absence of approval (i. elizabeth., complete appointment of minds) negates the presence of a enhanced sale. xFirme v. Bukal Enterprises and Dev. Corp., 414 SCRA 190 (2003). The agreement then is null and void begyndelse, absolutely needing in civil effects; hence, it does not create, modify, or extinguish the juridical regards to which that refers. xCabotaje v. Pudunan, 436 SCRA 423...