1.

YES

2. NO

3. Real

Money or its equivalent (valuable consideration)

Certain or ascertainable

4. Price is “real” when at the perfection of the sale, there is legal intention on the part of the buyer
to pay the price, and legal expectation on the part of the seller to receive such price as the value of the
subject matter he obligates himself to deliver.
When the price is simulated because neither party to the Deed of Sale had any intention whatsoever
that the amount will be paid, the sale is void,14 although the act may be shown to have been in reality a
donation, or some other contract.

Consequences:

When the price is completely simulated, then the principle of in pari delicto nonovitar actio should
apply, which denies all recovery to the guilty parties inter se. However, such principle applies to cases
where the nullity arises from the illegality of the consideration or the purpose of the contract, but does
not apply to inexistent and void contracts where the price is merely simulated.

Price is “false”

5. If the price is fixed but is later on remitted or condoned, this is perfectly all right, for then the
price would not be fictitious.

The failure to pay the price does not cancel a sale for lack of consideration, for there is still
consideration.

The failure to pay a real price goes not into perfection of the sale but into its consummation.

The failure to pay the price or the balance thereof does not render the sale inexistent or invalid, but
merely gives rise to a right in favor of the seller to either demand specific performance or rescission of
the contract of sale.

6. in the contract to conceal their real agreement, such a contract is relatively simulated.

Example:

When the parties intended to be bound by the contract except that it did not reflect the actual

purchase price of the property, the Court ruled that there was only a relative simulation of the contract
which remained valid and enforceable, but subject to reformation.

7. Mate is a prime example to show that even when undoubtedly the price stipulated in the
covering instrument is simulated (i.e., false) the underlying sale would still be valid and enforceable
provided there is another consideration (apart from the false price) to support the sale.
8.) Republic v. Phil Resources Development - PRDC has right to intervene because the goods belong to
them and the price agreed upon can be paid under the mutual arrangements agreed upon by the parties
to the contract of sale, even by dation in payment.

9.) No. manner is not essential insofar as the parties intended to be bound or enter into a contract of
sale

10.) inefficacious means that there is a valid contract but something occurs such that the third party is
unable or unwilling to fix the price

11. A third party can determine a price. The designation of a third party is valid. The designation by itself
makes the price ascertainable as to give rise to a valid contract of sale. But it only gives rise to a
conditional contract of sale. Such formula is not allowed for determination of subject matter of sale;
there would be no valid sale in such case.

12. Manner of payment is deemed to be an essential ingredient before a valid and binding contract of
sale can be said to exist since it is part of the prestation of contract.

13.

14. No, taking the cue from the rulings of the SC in Raet and NHA, the concept of appropriation under
Article 1474 is not applicable to real estate and that the rights of the parties to a purported sale would
be under the principles applicable to builders in good faith. It may also be an indication that
appropriation under Article 1474, even when applied only to movables, would necessarily entail a
transformation of the subject matter of sale such that it can no longer be returned to its original state,
as to warrant the fixing of reasonable price to prevent unjust enrichment.

15. Under Article 1355 of the Civil Code, which governs contracts in general, and except in cases
specified by law, it is provided that lesion or inadequacy of cause shall not invalidate a contract, unless
there has been fraud, mistake or undue infl uence. Specifi cally, Article 1470 on contracts of sale,
provides that “gross inadequacy of price does not affect a contract of sale, except as it may indicate a
defect in the consent, or that the parties really intended a donation or some other act or contract.

16. In a contract of sale, consideration is, as a rule, different from the motive of the parties, and when
the primary motive is illegal, such as when the sale was executed over a parcel of land to illegally
frustrate a person’s right to inheritance and to avoid payment of estate tax, the sale is void because
illegal motive predetermined the purpose of the contract.