sales syllabus 2014-1_annotated

8/10/2019 Sales Syllabus 2014-1_annotated

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SALES OUTLINE

1stSemester, Adamson College of Law, SY 2014-2015

Atty. Noel Ostrea

20 June 2014

Nature and Form

Definition

Review of essential requisites and characteristics of

contracts in general

8 Characteristics of a Contract of Sale

Contrast with other special contracts

BarterLease

NB: Special case of lease with option to buy

Case: Blanco v. Quasha, GR 133148,

1999.Nov17. (sale-leaseback)

Piece of work

Cases: Celestino Co v Collector, GR 8506,

1956.Aug31 (en banc)

Engg & Machinery Corporation, GR 52267,

1996.Jan 24Leighton v CNP Industries, GR 160972,

2010.Mar09

NB: Yu Dino v CA, GR 113564, 2001.Jun20

Bailments: lease, deposit, loan, guaranty

Agency to sell

Case: Brokmann v People, GR 199150,

2012.Feb06.

Consignment sale

Cases: Royal Shirt v Co Bon Tic, GR L-6313,

1954.May14 (en banc)

Agilent v Integrated Silicon, GR 154618,

2004.Apr14

Assignment of rights (Chapter 8, Art. 1624-1635 of

Sales Title.)

Case: Aquintey v Sps Tibong, GR 166704,

2006.Dec20

Capacity to Buy and Sell and Essential Requisites of

.

1.

1.2.

1.3.

1.4.

1.4.1.1.4.2.

1.4.3.

1.4.4.

1.4.5.

1.4.6.

1.4.7.

.


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Sale

Parties

Valid parties

Incapacitated parties to a contract of sale; effect on contract

Minors, insane persons, demented persons and deaf-

mutes

Prohibited parties (prohibited contracts)

Husbands and wives (1490)Q: Are common law spouses covered by the

prohibition?

(Calimlim-Canullas v. Gortun, GR L-57499,

June 22, 1984.)

Other prohibited parties (1491)

Valid Subject-matter

Characteristics of valid subject-matter: determinate or

determinable (1458, 1460), lawful (1347, 1409) and

possible (1348)

Sale by non-owner

Sale by owner with voidable title(1505) and exceptions

Sale of hope

In existence, whether on hand at the time or not (1467), or

future goods (1462) or having a potential existence (1461),

whole or fractional (an undivided interest) (1463), or

subject to a condition, resolutory (1465), or otherwise, or

in litigation, with the approval of the court (1381). But

there can be no donation of future goods (751) or sale ortransaction involving future inheritance.

Price

In general

When fixed by a party

Effect, simulated price or simulated sale

Case:

Heirs of Intac v CA, GR 173211, 2012.Oct11

Effect, gross inadequacy of price;

Equitable mortgage andpacto de retrosalesEffect of right of redemption

Effect of failure to pay (1595-1596)

Stages in Contract of Sale, incl. Perfection (1475)

Auction Sale

Form in a Contract of Sale

When essential for validity

When required for enforceability

When desirable for the convenience of the parties

2.

2.1.

2.2.

2.2.1.

2.2.2.

2.2.2.1.

2.2.2.2.

3.

3.1.

3.2.

3.3.

3.4.

3.5.

4.

4.1.

4.2.

4.3.

4.4.

4.4.1.4.4.2.

4.5.

5.

5.1.

6.

6.1.

6.2.

6.3.


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Equitable Mortgage

Definition and nature

Indicia under Art. 1602

Remedy of aggrieved party

Case: Deheza-Inamarga v Alano, GR 171321, 2008.Dec18.

Special Circumstances

Special Kinds of Sales Contracts

Politacion

Case: Capalla v. COMELEC, GR No. 201112,

2012.Jun13 (en banc) (nature of option)

Option Contract v earnest money (1482)

Case:

Rizalino v Paraiso, GR 157493, 2007.Feb05.

(option money v earnest money)

Right of First RefusalCase:

Tuazon v Del Rosario-Suarez, GR 168325,

2010.Dec08 (v option contract)

Conditional Sales/Contract to Sell

Definition and Nature

Cases: Sps. Bonostro v. Sps. Luna, GR 172346,

2013.Jul24

Laforteza v. Machuca, GR 137552, 2000.Jun16

Installment sales, movables (Recto Law; 1484)

Case:

___________________

Obligations of the Parties

Obligations of the Seller

Warranties

Express warranties v. dealers talk

Cases: Moles v. IAC, GR 73913, 1989.Jan31.

Teran v. Villanueva, GR L-34697, 1932.Mar26 (en

banc) (dealers talk)Implied warranties

Delivery; Transmission of ownership by delivery (1477, etc.)

Plus accessions and accessories

Actual (1497)

Constructive (1498-1501, 1496), including documents

of title

Effects in general

Exceptions

6.4.

6.4.1.

6.4.2.

6.4.3.

.

7.

7.1.

7.2.

7.3.

7.4.

7.4.1.

7.5.

.

8.

8.1.

8.2.

9.

9.1.

9.1.1.

9.1.2.

9.2.

9.3.


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Case: Villamar v. Mangaoil, GR 188661, 2012.Apr

11.

Commercial terms of delivery

Who bears the risk of loss? (1480 v 1504, 1538)

Double Sales (1544)

Obligations of the Buyer

To pay Price Certain

Remedies of Unpaid Seller (1524, 1526, 1540)

When buyer can suspend payment (1590)

Breach

Remedies

Accion redhibitoria(1567rescission)Accion quanti minoris(proportionate reduction in price)

Extinguishment

Grounds for extinguishment, in general

Redemption

Conventional

When there is a stipulationWhen there is no stipulation

Requirement of 1616

Legal (1619)

Co-owners (1620)

Co-heirs (1088)

Adjoining owners (1621, 1622)

Debtor (1634)

Others

Sales of Immovables; Special Case

Condominia

Subdivision and Condominium Buyers Protective Decree

(PD 957)

The Condominium Act (RA 4726)

Installment sale of immovable (Maceda Law; RA 6552)

Rescission of sale of immovable

Form of agency to sell immovable (1874, 1878)

9.4.

9.5.

10.

11.

11.1.

11.2.

.

12.

12.1.12.2.

.

1.

2.

2.1.

2.1.1.2.1.2.

2.1.3.

2.2.

2.2.1.

2.2.2.

2.2.3.

2.2.4.

2.2.5.

.

1.

1.2.

1.3.

2.

3.

4.


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Case: _______________________

Special Laws

NB:

Bulk Sales Law (Act No. 3952)

--End, Syllabus Proper

QUESTIONS IN SALES LAW

June 2014

Nature

What is a sales contract? (712, 1458)

What are the essential obligations of a seller?

What are the essential obligations of a buyer? (1582, NB:

1524, 1595)

What are the essential elements of a contract of sale?

What are the eight (8) characteristics of a contract of sale?

What is the essential requisite of a seller? (NB: 1505)

What are the stages of a contract of sale?What is apolitacion? (1479 par. 2)

What is the effect on a sales contract based on:

Transfer of ownership? (1545, 1462 par. 2, 1465 and 1503)

The nature of the object of the sale?

The volume or quantity of the object of the sale?

The sale being by description, by sample, or both? (1481)

When the goods object of a sale are delivered on sale or

return? (1502)

When the goods object of a sale are delivered on trial oron satisfaction? (1502)

Auction sale? (1476)

The deterioration or benefit/improvement of the object of

the sale? (1480, 1538)

The consideration being payable on installment?

What are the kinds of contract:

Based on whether the object or service is existing or made

to order? (1467)

Based on the nature of the consideration? (1468)

.

1.

2.

3.

4.

5.

6.

7.8.

9.

9.1.

9.2.

9.3.

9.4.

9.5.

9.6.

9.7.

9.8.

9.9.

10.

10.1.

10.2.


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Based on the kind of title acquired by the buyer? (1624)

What are the three (3) legal requirements for the object of a

sale to be valid?

Concerning price:

What is the effect of a simulated price on a contract of

sale? (1471)

What is the effect of a gross inadequacy of price on a

contract of sale? (1470, NB: 1602)

What is the effect of an indeterminate price in a contract ofsale? (1474)

What are the differences between earnest money and

option money?

How is the ownership of the thing sold transferred to the

buyer?

Who generally pays for the expenses for the execution and

registration of a private sale?

Form

What is the proper form of a contract of sale? (1483)

Parties and Incapacities

Who are the persons or parties who are incapacitated from

entering into a contract of sale?

Obligations of the Seller

What is delivery?

What is the legal effect of delivery?

What are the two (2) kinds of delivery?

What are the six (6) kinds of constructive delivery?

What are the modes of delivery in commercial transactions

(denominated by initials)? (NB 1523)When is delivery complete? (NB: 1539, 1537, 1523)

What are the kinds of warranties? (1546, 1547)

What are the two (2) kinds of implied warranties?

What are the elements of an implied warranty against

eviction? (1548)

What are the elements of an implied warranty against hidden

defects? (1561)

What are the remedies of a buyer in case of breach of an

express warranty? (1599)

10.3.

11.

12.

12.1.

12.2.

12.3.

12.4.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.


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What is an unpaid seller? (1525)

What are the remedies of an unpaid seller? (1526)

When are goods not in transit? (1531)

What are the rules in case of a double sale? (1544)

Obligations of the Buyer

What are the two (2) obligations of a buyer?

What is the liability of a buyer who neglects or fails to pay?

(1595)

When does acceptance take place? (1584)

What are the different kinds of acceptance? (1585)

What is the liability of a buyer who neglects or fails to pay?

(1596)

What is the effect of wrongful delivery? (1587)

When does a buyer owe a seller interest after delivery? (1589)

When can a seller exercise a right to rescission? (1597)When can a buyer exercise a right to specific performance?

(1598)

When can a buyer exercise a right to rescission? (1591-93)

When can a buyer validly suspend payment? (1590)

What are the remedies of a buyer when the seller delivers to

the buyer a quantity of goods greater or less than that

contracted to sell?

Loss of the Thing

What is the legal effect of loss of the thing?

Modes of Extinguishment of Sale

Regarding extinguishment:

What are the general modes of extinguishment (ofcontracts)?

What are the specific provisions in sales law providing for

extinguishment?

What are the modes of redemption? And how is the right

exercised?

What is an assignment?

Conventional Redemption

28.

29.

30.

31.

32.

33.

34.

35.

36.

37.

38.

39.40.

41.

42.

43.

44.

45.

45.1.

45.2.

45.3.

45.4.


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What is the effect of apacto de retro sale? (1609)

What are the obligations of a seller who exercises his right to

redeem? (1616)

What happens to growing fruits at the time of redemption?

(1617)

What happens to existing leases at the time of redemption?

(1618)

Legal Redemption

What is legal redemption?

Who can exercise the right of legal redemption?

--End--

46.

47.

48.

49.

50.

51.

sales syllabus 2014-1_annotated

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