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Alvin John Doctora AcT4-2 Take Home Quiz (BLaw323)

1. What is a contract of sale? Explain in your own words.


- A contract of sale is a contract where one part is obligated to deliver a determinate
thing and the other obligates himself to pay equal amount of money or equivalent to
the object.
2. Explain in your own words what is Sale by Description?
- Sale by description is a sale where the seller states the exact description of the object.
3. Distinguish and differentiate in your own words Earnest Money from Option Money.
- Earnest Money is the money given to the seller by the prospective buyer to show that
the buyer is truly interested in buying the property, and its aim is to bind the bargain.
- Option Money is the money given as a separate and distinct consideration from the
purchase price and it cannot be recovered if the buyer did not continue with the sale.
4. Explain in your own words what is Divisible Contract?
- Divisible contract is a contract which has multiple parts and each part can be
completed independently. A breach of one part does not excuse performance of the
other parts.
5. Explain in your own words when is a thing sold considered lost?
- It is understood that the thing is lost when it perishes, or goes out of commerce, or
disappears in such a way that its existence is unknown or it cannot be recovered.
6. Explain in your own words the effect of:
6.1. Partial loss of the thing sold
- In case of partial loss the buyer have an option of withdrawing from the contract or
demand for the remaining part.

6.2. Total loss of the thing sold

- In case of total loss of the thing sold the contract shall be void.
Hexa Danica Mabaquiao AcT4-2 Take Home Quiz (BLaw323)

1. What is a contract of sale? Explain in your own words.


In contract of sale there must be two parties the seller and buyer. The two parties
must agree about the content of a contract. The good must be specific to determine the
exact amount of price.
2. Explain in your own words what is Sale by Description?
Sale by description is where the seller describes exactly the object to the buyer.
3. Distinguish and differentiate in your own words Earnest Money from Option Money.
Earnest money serves as a partial payment or down payment. Earnest money is a
reassurance to the seller that you are a committed buyer. While;
Option money serves as reservation fee. When the buyer fails to pay the seller has a right
to cancel the contract. The buyer can't take back the option money.
4. Explain in your own words what is Divisible Contract?
Divisible contract is a type of contract in which each party's obligations are
independent of those of the other. Failure to perform one element of the contract does not
necessarily voids the contract.
5. Explain in your own words when is a thing sold considered lost?
A thing is considered lost when the object is nowhere to be found, not existing or
if it is destroyed.
6. Explain in your own words the effect of:
6.1. Partial loss of the thing sold
When the thing is lost partially the buyer has the option to pay the price in
proportion to the total sum agreed or withdraw the contract.
6.2. Total loss of the thing sold
When the thing is lost totally there will be no consent or the contract will have no
effect.