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Bulk Sales PDF
Bulk Sales PDF
BULK SALES
LAW RA 3952
A SALE IS CONSIDERED
IN BULK WHEN:
1. There is a sale, transfer, mortgage or
assignment of stock other than in the
ordinary course of business;
2. All or substantially all of the trade or
business is sold, transferred or mortgaged;
or
3. All or substantially all of the fixtures and
equipment of the business are sold.
PENALTIES
Violations of the bulk sales law makes the
sale valid between the parties but void for
the affected creditors. The buyer will hold
the property in trust for the seller and is
liable to the seller's creditors for properties
forming part of the bulk and already
disposed by him.
Also, the seller can be punished with a
prison term of 6 months to 5 years and/or a
fine of up to Php5,000.00.