JEAN ARIANE M.

JANDOG BSA 2A

Regulatory Framework

1. Give an example of a contract of sale and discuss the essential elements therein
(10 points)

Consent

Consent is manifested by the meeting of the offer and the acceptance upon the thing and the
cause which are to constitute the agreement.Transfer of property is another essential of
contract of sale. Property here means ownership. A mere transfer of possession of the goods
cannot be termed as a sale. To constitute a contract of sale the seller must either transfer or
agree to transfer the property (ownership) in the goods to the buyer.

Object

The object of every contract must be determinate as to its kind. The fact that the quantity is
not determinate shall not be an obstacle to the existence of the contract, provided it is
possible to determine the same, without the need of a new contract between the parties. A
thing is determinate when it is particularly designated and/or physically segregate from all
others of the same class.
In general, the cause is the why of the contract or the essential reason which moves the
contracting parties to enter into the contract. For the cause to be valid, it must be lawful such
that it is not contrary to law, morals, good customs, public order or public policy.

Example: "Carlo" sells his car to "John" for 600,000. The ownership and
possession of the car will be transfer from "Carlo" to "John".

Price

The consideration in a contract of sale must be the price. When goods are sold or
exchanged for other goods, the transaction is barter, and not a contract of sale of
goods. If goods are sold partly for goods and partly for money, the contract is sale. A
definite agreement as to the price is an essential element of a binding agreement to
sell personal or real property because it seriously affects the rights and obligations of
the parties. Price is an essential element in the formation of a binding and
enforceable contract of sale. The fixing of the price can never be left to the decision
of one of the contracting parties. But a price fixed by one of the contracting parties,
if accepted by the other, gives rise to a perfected sale. It is not enough for the parties
to agree on the price of the property. The parties must also agree on the manner of
payment of the price of the property to give rise to a binding and enforceable
contract of sale or contract to sell. This is so
 Example: For $200,000.00, A sells his car to M. Because the subject matter is a car,
which is a moveable thing, it is a sale contract.

2. Give at least 3 example of void sales and state the reason why the sale is void (2
points each)

1. Sale of animals suffering from contagious diseases. It is void since sale of animals
suffering from contagious diseases shall be void. The article declares the class of animals
which cannot be the object of commerce — animals suffering from contagious diseases
and those found unfit for the use or service stated. The sale of such animals is void as
against public interest and not merely subject to rescission or reduction of the price. (Art.
1567.) It is to be governed by the rules relating to nullity of contracts.
Sale of land in violation of the constitutional prohibition against the transfer of lands to
aliens. The constitutional prohibition against the acquisition of agricultural lands by alien in
absolute and unconditional; it contains no saving clause in favor of those who were not aware
of its meaning or implications.Thus, the law requires that the subject matter must be licit or
lawful, that us, it should not be contrary to law, morals, good customs, public order, or public
policy (Article 1347, and 1409), and should not be impossible (Article 1348).
3.Sale of future inheritance. The sale is void since it will put the predecessor at the risk of harm
from a tempted buyer, contrary to public policy. Furthermore, the Supreme Court stressed that
Article 1347 of the Civil Code provides that no contract may be entered into upon a future
inheritance except in cases expressly authorized by law.

3. Can a person sell sugar which is an indeterminate thing? Explain. (3 points)

Yes, a person can still sell sugar because when it is particularly designated or physically
segregated from all others of the same class it becomes determinate. The requirement that a thing be
determinate is satisfied if at the time the contract is entered into, the thing is capable of being made
determinate without the necessity of a new or further agreement between the parties.

4. A owns a mango plantation.  Harvest of at least 100 cavans is expected by June

30, 2022.  Can A sell 50 cavans to B today?  Explain. (5 points)

Yes, A can sell 50 cavans to B today, things having a potential existence may be the object of the contract
of sale. The efficacy of the sale of a mere hope or expectancy is deemed subject to the condition that the thing
will come into existence.It is the general rule, a person cannot sell or convey what he does not have or own.

Exceptions:
1. Sale of a thing having potential existence;

2. Sale of future goods; and

3. Contract for delivery at a certain price of an article which the vendor in the ordinary course of business
manufactures or procures for the general market, whether the same is on hand at the time or not.

5. A sold his only car worth P800,000 to B for P300,000.  A month later, A wanted
to cancel the sale for the reason that the selling price was too law. Does A have
the right to cancel the contract of sale? Explain. (3 points)

No. The mere inadequacy of the price does not affect its validity when both parties
are in a position to form an independent judgment concerning the transaction, unless
fraud, mistake or undue influence indicative of a defect in consent is present. A
contract may consequently be annulled on the ground of vitiated consent and not due
to the inadequacy of the price

6. Can all person enter into a contract of sale? Explain.  (3 points)

Yes, all persons, whether natural or juridical, who can bind themselves, have the legal capacity
to enter into a contract of sale. Except to those persons who are incapacitated. Absolute
Incapacity is the persons who cannot enter into a contract of sale in all circumstances; otherwise,
the contract of sale is defective, either voidable or unenforceable. Relative Incapacity is certain
persons, under certain circumstances, who cannot buy a certain property.