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Chapter 2 - CAPACITY TO BUY OR SELL

1. General rule: All persons who can obligate themselves may enter into a contract of sale (Art. 1489). Where necessaries are those sold and delivered to a minor or other person without capacity to act, he must pay a reasonable price therefor. 2. Exceptions: Sale of property including sales in legal redemption, compromises and renunciations (Art. 1492) by the following: a. The husband and the wife cannot sell property to each other, except: (Art. 1490) i. When a separation of property was agreed upon in the marriage settlements; or ii. When there has been a judicial separation of property Effect of sale: Void b. Those persons who cannot acquire by purchase, even at a public or judicial auction, either in person or through the mediation of another. (Art. 1491) i. The guardian, the property of the person or persons who may be under his guardianship. ii. Agents, the property whose administration or sale may have been entrusted to them, unless the consent of the principal has been given; iii. Executors and administrators, the property of the estate under administration; iv. Public officers and employees, the property of the State or of any subdivision thereof, or of any government-owned or controlled corporation, or institution, the administration of which has been intrusted to them; this provision shall apply to judges and government experts who, in any manner whatsoever, take part in the sale; v. Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other officers and employees connected with the administration of justice, the property and rights in litigation or levied upon an execution before the court within whose jurisdiction or territory they exercise their respective functions; this prohibition includes the act of acquiring by assignment and shall apply to lawyers, with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession. vi. Any others specially disqualified by law. Effect of sale: 1-3 Voidable; 4-6 Void public interest is involved

Chapter 2 (Capacity to Buy or Sell)

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