Diaz Bauste, Elizabeth Carmen Socorro C.

Law 4B-74593 6:00 - 7:30 PM FS

BSBA - 4

Facts/Premises: Contract of Sale is a contract whereby one of the parties obligates

himself to deliver a determinate thing while the other obligates himself to pay a price
certain in money or its equivalent.

1. How do you call the parties to the contract of sale. (10 pts)
- Seller or Vendor, Buyer or Purchaser or Vendee.

2. Is a contract possible even if there is only one party thereof? Explain your
answer (10 pts)
- A contract is not possible if there is only one party. The Civil Code defines a contract as
a meeting of minds between two parties whereby one binds himself, with respect to the
other, to give something or to render some service. A contract is not valid with only one
party involved. It is an essential requisite of a contract where there is a meeting of the
minds.

3) Expound determinate thing. (10 pts)

- A thing is determinate or specific (not generic) when it is particularly designated or
physically segregated from all others of the same class. A determinate thing is identified
by its individuality, e.g., my car (if I have only one); the watch I am wearing; the house
located at the corner of Rizal and Del Pilar Streets, etc.

4) Explain the phrase " to pay a price certain in money or its equivalent". (10 pts)
- Cause or Consideration refers to “to pay a price certain in money or its equivalent” for
the thing sold. It does not include goods or merchandise although they have their own
value in money. However, the words “its equivalent” have been interpreted to mean that
payment need not be in money, so that there can be a sale where the thing given as
token of payment has “been assessed and evaluated and [its] price
equivalent in terms of money [has] been determined.”

5) If the payment is partly money and partly house and lot, is it contract of sale?
Explain your answer (10 pts)
- It is stated in Art. 1468 that if the consideration of the contract consists partly in money,
and partly in another thing, the transaction shall be characterized by the manifest
intention of the parties. If such intention does not clearly appear, it shall be considered a
barter if the value of the thing given as a part of the consideration exceeds the amount of
the money or its equivalent; otherwise, it is a sale.
The manifest intention of the parties is paramount in determining whether it is one of
barter or of sale and such intention may be ascertained by taking into account the
contemporaneous and subsequent acts of the parties. If this intention cannot be
ascertained, then the last sentence of the article applies. But if the intention is that the
contract shall be one of sale, then such intention must be followed even though the
value of the thing given as a part consideration is more than the amount of the money
given.

6) Distinguish absolute from conditional sale. (10 pts)

- Absolute sale is where the sale is not subject to any condition whatsoever and where
title passes to the buyer upon delivery of the thing sold. Thus, it has been held that a
deed of sale is absolute in nature although denominated as a “Deed of Conditional Sale”
in the absence of any stipulation that the title to the property sold is reserved in the
vendor until full payment of the purchase price nor a stipulation giving the vendor the
right to unilaterally rescind the contract the moment the vendee fails to pay within a fixed
period. In such case, ownership of the property sold passes to the vendee upon the
actual or constructive delivery thereof.

Conditional sale is where the sale contemplates a contingency, and in general, where
the contract is subject to certain conditions, usually, in the case of the vendee, the full
payment of the agreed purchase price and in the case of the vendor, the fulfillment of
certain warranties, e.g., the timely eviction of squatters on the property sold.

7) State the other kinds of contract of sale and explain each. (40 pts)
- There are, of course, other kinds of sale depending on one’s point of view, e.g., as to
the nature of the subject matter (real or personal, tangible or intangible), as to manner of
payment of the price (cash or installment), as to its validity (valid, rescissible,
unenforceable, void), etc.