GONZALES, Celina O.

11981318

ANSWERS TO ASYNCHRONOUS ACTIVITY 1

I.
1. Under Art. 1458 of the Civil Code, the obligations that arise from a
valid contract of sale are as follows: The seller has the obligation to
transfer ownership and to deliver the possession of the subject
matter. On the other hand, the buyer has the obligation to pay the
price.

In this case, the sales staff, as the seller has the obligation to give
Dave the books and to transfer ownership thereof. On the other
hand, Dave, as the buyer, has the obligation to pay the price of the
books that he bought.

2. The contract of sale between Dale and the sales staff is valid.

All the essential elements of a contract of sale are present. Consent

is present, since Dave and the sales staff agreed that Dave is
obliged to pay the seller the price of the books, while the sales staff
is obliged to give Dave the books upon payment The subject matter
is present, which are the books. Finally, the price that Dave has to
pay for his books are indicated on the paper.

While as a general rule, a contract of sale entered into by minors is

deemed binding until annulled, Art. 1489 states that when
necessaries are sold and delivered to a minor, he is obliged to pay
a reasonable price. Moreover the Family Code states that
necessaries include those that are needed for one’s schooling even
beyond the age of majority. In this case, the books that Dave
bought for school are necessaries since he needs them for his
schooling. Hence, the contract between Dave and the sales staff is
valid.

II. The contract is a valid and perfected contract of sale. Under Art.
1468, the nature of the transaction will depend on the intention of the
parties if the consideration of the contract consists of partly in money
and partly in another thing. In this case, Ramon and Antonio
intended that the transaction would be a sale. The parties agreed that
Ramon would pay for the generator with both cash and the Rolex
watch in exchange for the generator. Hence, the contract in this case
is a contract of sale.
III. There is no perfected contract and the parties are still in the
negotiation stage with regard to the consideration. In order for a
contract of sale to be valid, consent, subject matter, and price must
be present. The third requisite is wanting since the price has not yet
been agreed upon between the parties. However, in the event that the
parties agree upon a price, then the undertaking will be considered a
piece of work.

IV. The contract of sale is unenforceable. The requisites for a valid

contract of sale are present: (1) consent is present since Jose agreed
to sell snacks to his classmates, provided that the latter pay him; (2)
subject matter is present since the snacks are licit, possible, and
determinate; and (3) price is present since the value of the snacks
sold by Jose serve as the price. However, it must be noted that in
order for a contract to be valid and binding among the parties, taken
into account that both parties must have legal capacity and the
capacity to act. In this case, Jose and his classmates are minors since
they are only Grade VI students. Hence, the contract of sale between
Jose and his classmates are unenforceable.
 ANSWERS TO ASYNCHRONOUS ACTIVITY 2
Subject matter
1. In order for something to be considered to be an object of a contract of
sale, the following requisites must concur: (1) the object must be
possible; (2) it must be licit; and (3) it must be determinate or at least
determinable.

An object is considered possible if it is existing, has a potential existence,

is a future thing, or is contingent upon the happening of a resolutory
condition. An object is licit if it is within the commerce of man, and all
the rights that are transmissible. An object is determinate or at least
determinable if the thing can be determined without needing a separate
contract between the parties.

Using the case at hand as an example, the organic food supplement from
Brazil may be considered as an object of a contract of sale. The
supplement is a possible thing since it existed at the time of the sale. It is
determinable because it can be determined that the food supplement is
the thing to be sold without the need of a separate contract. However, it
must be noted that the supplement may only be deemed as licit if they
are approved by the FDA as safe for human consumption. If the FDA
declares that the organic food supplement is not safe for consumption,
then it cannot be deemed as a licit object. If the supplement is not
approved by the FDA, then the subject supplements is not a licit object.

2. The undertaking between Carla and Jane is valid and proper with regard
to the subject matter. Under the Civil Code, in order for something to be
considered an object of a contract of sale if it is possible. Hence, future
things are valid objects. In this case, while the food supplement is still in
its final development, it is certain that the said product will still be
delivered.

3. The contract is extinguished. Under Art. 1493, if at the time of the

contract of sale is perfected, the thing which is the object of the contract
has been entirely lost, the contract shall be without any effect. In this
case, the supplements were lost on the 3 rd week of March, when the
contract was perfected. As such, there would be no effect as regards to
the contract. Hence, it is extinguished.

Price
1. The contract in this case is valid as to its price. Under Art. 1470, gross
inadequacy of the price does not affect a contract of sale, unless there is
a defect in the consent, or that the parties intended a donation or some
 other act or contract. In this case, Derek sold the painting at a price less
than the value of the painting because he needed the money. There was
no showing of any defect in the consent, or any other intention. Hence,
the contract is valid as to its price.
2.
a. The price of the bike will be P150,000. Under Art. 1370 of the Civil
Code, if the words of a contract appear contrary to the intention of
the parties, such intention must prevail. In this case, while the
executed contract stipulates that the bike will be worth P50,000,
Willie and Randy have intended that it will be sold for P150,000 as
agreed upon.

b. The contract of sale is perfected, but it is not yet consummated.

The perfection of the contract of sale in this case gives rise to the
obligation of the parties under Art. 1458. Willie, the seller, is
obliged to: (1) deliver the bike to Randy; and (2) transfer ownership
to Randy. On the other hand, Randy, the buyer, is duty-bound to
pay the price that he and Willie have agreed upon.

3. The contract is inefficacious. Under Art. 1474, a contract of sale is

inefficacious when the price cannot be determined in any manner under
the Civil Code or in any other manner. In order to ascertain the amount
that the buyer must pay the seller, Art. 1469 stipulates that it is
sufficient that the price be so with reference to another thing certain, or
that the determination of the price be left to the judgment of a special
person or special persons.

4. According to the case of Navarra v Planters Development Bank, the

parties must have a definite agreement as to the manner of payment of
sale in order for the contract of sale to be binding and enforceable.
Otherwise, such contract must be deemed inefficacious. This applies
when the parties must agree upon a mode of payment other than
immediate payment. In the event that there must be immediate payment,
Art. 1179 of the Civil Code applies as the obligation to deliver and
transfer ownership on the part of the seller, as well as the obligation to
pay the price on the part of the buyer is demandable at once.
 ANSWERS TO MIDTERM EXAMS

Q: Carlo has been occupying a portion of the reclaimed lot at Roxas Blvd. for
nearly 15 years now. Since his family is now planning to go back to the
province, Carlo sold his house and lot to Pedro.

A: The sale is void. The Court elucidated in the case of Republic v City of
Parañaque that the State retains ownership of reclaimed lands unless
withdrawn by law or presidential proclamation for public use. As such,
reclaimed lands are reserved lands for public use. In this case, Carlo cannot
sell the portion of the reclaimed land to Pedro since such land belongs to the
State. Since Carlo cannot transfer ownership to Pedro, the sale is void.

Q: James sold to Angel some computer gadgets. The contract of sale indicates
the cost of the goods amounts to P250,000.00. Market forces indicates that the
market value of the goods amounts to P400,000.00
A: The sale is valid. One of the characteristics of a contract is that it is
commutative in nature. of The Court ruled in the case of Buenaventura v CA
that there is no requirement that the price has to be equal to the exact value of
the object. In the Buenaventura case, the sellers believed that what they
received was the commutative value of what they gave. In the case at hand,
James believed what he received was the commutative value of the goods.
Hence, the sale is valid.

Q: Anton being the only son, entered into a contract of sale with Mark over one
his parent’s property. A deed of absolute sale was executed, notarized and
given to Mark. Rule on the propriety of the delivery of the deed of absolute sale
to Mark.

A: The delivery of the deed of absolute sale is improper because the contract is
void in the first place. It must be noted that while the decedent is still alive, the
heir only owns an inchoate right to the property. In this case, one of Anton’s
parents is the owner of the property, and Anton only has an inchoate right to
the property. As such, he cannot transfer the ownership of the lot to Mark.
Since there is no transfer of ownership, that was effected, the contract of sale
entered into by the parties is void. As such, the delivery of the deed of absolute
sale is not proper.