Group V

QUESTIONS:

1. Conditional Sale vs. Absolute Sale

Distinguish between a conditional sale, on the one hand, and an absolute sale, on the other
hand.

2. Contract of Sale vs. Agency to Sell

A granted B the exclusive right to sell his brand of Maong pants in Isabela, the price for his
merchandise payable within   60   days   from   delivery, and   promising   B   a commission
of 20% on all sales. After the delivery of the merchandise to B but before he could sell any
of them, B’s store in Isabela was completely burned without his fault, together with all of
A’s pants. Must B pay A for his lost pants? Why?

3. Contract to Sell vs. Contract of Sale

State the basic difference (only in their legal effects) between a contract to sell, on the one hand, and
a contract of sale, on the other.

4. Contract to Sell; Acceptance; Right of First Refusal

A is the lessee of an apartment owned by Y. A allowed his married but employed daughter
B, whose husband works in Kuwait, to occupy it. The relationship between Y and A soured.
Since he has no reason at all to eject A, Y, in connivance with the City Engineer, secured
from the latter an order for the demolition of the building. A immediately filed an action in
the Regional Trial Court to annul the order and to enjoin its enforcement. Y and A were
able to forge a compromise agreement under which A agreed to a twenty percent (20%)
increase in the monthly rentals. They further agreed that the lease will expire two (2) years
later and that in the event that Y would sell the property, either A or his daughter B shall
have the right of first refusal. The Compromise Agreement was approved by the court. Six
(6) months before the expiration of the lease, A died. Y sold the property to the Visorro
Realty Corp. without notifying B. B then filed an action to rescind the sale in favor of the
corporation and to compel Y to sell the property to her since under the Compromise
Agreement, she was given the right of first refusal which, she maintains is a stipulation
pour atrui under Article 1311 of the Civil Code. Is she correct?

5. Double Sales
On June 15, 1995, Jesus sold a parcel of registered land to Jaime. On June 30, 1995, he sold
the same land to Jose. Who has a better right if:
a)     the first sale is registered ahead of the second sale, with knowledge of the latter. Why?
b)     the second sale is registered ahead of the first sale, with knowledge of the latter?
Why?