Article 1458

Concept of contract of sale

1. What are the elements of a contract of sale? Pedro sold a motorcycle to Jose
for P30, 000. Identify each element of the contract of sale.

Characteristics of a contract of sale

2. What are the characteristics of a contract of sale? Explain through examples
the following characteristics of a contract of sale.
Example:
Onerous- Jose sold his cellphone to Jay for 2, 000. It is onerous because Jose
will only give his cellphone to Jay if he will pay him 2, 000.

Effect of absence of price or consideration

3. Kyle agreed to sell his laptop to Nonoy for 5, 000 to be paid next week. The
following day however, Nonoy needed the laptop for his online class. He
demanded Kyle to give him the laptop because he already had a “meeting of
the minds” regarding the sale of the laptop. Kyle refused.
a. Rule as to who is correct. Explain
b. Suppose Kyle received 1, 000 from Nonoy as down payment and gave
him the laptop. The following week, Nonoy refused to pay the balance.
Can Kyle recover his laptop?
c. Suppose Kyle received the full payment of the laptop. The following
month, Kyle changed his mind and offered to refund 5, 000 to Nonoy
and demanded the return of his laptop. Can Kyle legally do so? Explain

Contract of sale versus contract to sell

4. Jose agreed to sell his house to Pedro for 2M. Pedro paid 50, 000 as initial
payment or goodwill money. Jose allowed Pedro to rent the house for 10,
000 until such time that he can find the money for the purchase price.

After a year, Jose demanded payment for the house as he needed money for
the hospital bills of his mother. He also demanded Pedro to pay 3 months of
unpaid rent. Pedro replied that he will no longer purchase the house as he
has found another cheaper property. He asked Jose to just deduct the unpaid
rent from the P50, 000 from his initial payment. Jose refused and continued
to demand the unpaid rent due.

a. What kind of contract did Jose and Pedro agree, contract of sale or
contract to sell? Explain
b. Can Pedro insist that his unpaid rent be deducted from his initial payment
of P50, 000? Why or why not.
c. Can Jose insist that Pedro should pay him the P 2M purchase price for his
house? Explain

Racelis vs Sps Javier, G.R. No. 189609, January 29, 2018

Article 1459

5. Ian studied Law. To prove his legal knowledge to his drinking buddies, he
boasted that he can legally sell the car owned by his neighbor worth 1 million
to Ondoy today for half its price even if he is not yet its owner. Is he correct?

6. Rob sold his land today to Ed, an American retiree for P1 Million subject to
the condition that he will acquire Philippine citizenship. Is such sale legal
considering the ban against land ownership by foreigners?

Article 1460

7. When is it necessary for a sale to particularly designate the thing? When is it

not?

Article 1461 and 1462

8. George bought a P20 sweepstakes ticket that carries a prize of P20 Million.
a. Identify the elements of sale in the transaction.
b. Suppose the advertisement promised George a 99.9% of winning. But
George still did not win, can he sue the sweepstakes operator?

9. George paid Tim P3, 000 for the piglets which are still in the pig’s womb.
a. What contract was entered, a contract of sale or contract to sell?
b. Suppose all the piglets died at birth. Can George ask Tim for a refund?
c. Suppose Tim did not own the pregnant pig. Can he validly sell the
piglets to George?

Article 1463 and 1464

10. Nick, an only child, badly needed a motorcycle. He sold his inheritance
to their ancestral house to Ody. Can he validly do so? Explain
a. Suppose Nick had a brother, Dick and their parents already died. Can
he validly sell his share of the house to Ody even before it was
partitioned to him?

Article 1465

11. Lou needed money. He sold his car worth P500, 000 to Lee for only
P100, 000 subject to the condition that he can repurchase it within 6 months.
Lee’s child got sick. He sold Lou’s car to Lord for only P50, 000. Is the sale to
Lord, valid?

Article 1466

12. Robert bought a cellphone from ICM for his girlfriend for her birthday.
However, his girlfriend did not like it. He returned the cellphone but ICM
refused it. He argued that the sale of the cellphone was void because the
saleslady who sold it, is not the owner of the phone. He further argued that
 there was only an agency to sell, which is void because there was no written
approval of the sale of the cellphone from the owner of ICM.

Rule on the validity of Robert’s argument.

Article 1467

13. Why is it important to distinguish a sales contract from a contract from

a piece of work. Cite an instance when this distinction is important.