La Consolacion College

Formely: Sacred Heart Academy

Bais City Negros Oriental

Name: Clark Cris Dinglasa Date: July 6, 2022

Course\Year: BSBA-III FM BAC-33

Activity No.1

I. Definitions
Define or give the meaning of the following:

1. Contract of sale
- A contract of sale is an agreement between a seller and a buyer. The seller agrees to
deliver or sell something to a buyer for a set price that the buyer has agreed to pay. With
these contracts, the transfer of ownership happens when the buyer pays and the seller
delivers.

2. Natural elements
- Natural elements are all those not created by humans. Some examples of natural elements
are the following: The vegetation in its different forms: trees, shrubs, plants, herbs, etc.
The immense variety of the animal kingdom: insects, mammals, reptiles, birds, fish, etc.

3. Sale by description

- Sale by description A contract for the sale of goods which includes some description of
the goods, and is wholly or in part created or induced by said description. In accordance
with sale of goods legislation, there is an implied condition in contracts for sale by
description that the goods supplied will align with the description given.
4. Fungible goods

- Fungible goods are items that are interchangeable because they are identical to each other
for practical purposes. Commodities, common shares, options, and dollar bills are
examples of fungible goods.

5. Conditional Sale

- A conditional sale is a real estate transaction where the parties have set conditions. A
standard real estate transaction usually begins when a prospective purchaser submits an
offer to purchase to the vendor of a property.

II. Discussions

1. a.) What remedies are available to a vendor in sale of personal property payable in
installments?

- In a contract of sale of personal property, the price of which is payable in installments,

the vendor may exercise any of the following remedies: Exact fulfillment of the
obligation, should the vendee fail to pay cancel the sale, should the vendee’s failure to
pay cover two or more installments.

b) Is the vendor allowed to recover the unpaid balance of the price?

- Recovery Of Unpaid Balance in Foreclosure Under the law, in a sale on installment of a

movable, if the vendor has availed himself of the right to foreclose the chattel mortgage,
he shall have no further action against the purchaser to recover the unpaid balance of the
purchase price. Any agreement to the contrary is void.

2. Give at least 3 distinctions between a contract of sale and a contract of agency to sell.
 Agency to sell
- in sale, buyer pays for price of object in agency to sell, agent not obliged to pay for price,
merely obliged to deliver price received from buyer.

Lease
- in sale obligation to absolutely transfer ownership of thing in lease use of thing is for
specified period only with obligation to return.

Barter
- in barter, the consideration is the giving of a thing; in sale, it is giving of money as
payment both are governed by law on sale both are species of the genus sales.

III. Problems
Explain the rule or reason for your answer.

1. S sold to B certain goods. At the time of the sale, C is not the owner of the goods.
May there be a valid sale to B?

- Yes, because in article 1459 the thing must be licit and the vendor must have the right to
transfer the ownership thereof at the time it is delivered.

2. Same example above. The only problem now is that the goods sold have not yet been
identified at the time of the contract. May there be a valid sale to B?

Yes. According to article

1460 stated that the thing is
determinate when it is
particularly designated or
physically segregated from all
others of the same class.
The requisite 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. There is a
valid sale to B if it is
identified at the time of delivery
Yes. According to article
1460 stated that the thing is
determinate when it is
particularly designated or
physically segregated from all
others of the same class.
The requisite 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. There is a
valid sale to B if it is
identified at the time of delivery
- Yes. According to article 1460 stated that the thing is determinate when it is particularly
designated or physically segregated from all others of the same class. The requisite 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. There is a valid sale to B if it is identified at the time of delivery.
 3. The property sold by S is a portion of a parcel of land without indicating the specific
portion thereof. May there be a valid sale to B?

- Yes. There is a valid sale to B because S as a co-owner of a portion of parcel of land, can
dispose of his share even without the consent of the co-owner/s. For the vital validity of a
contract of sale is that the vendor be the owner of the thing sold. The effect of the
alienation shall be limited to the portion which may be allotted to the vendor in the
division of the property upon termination of the coownership. In Article 1463, the sole
owner of a thing may sell an undivided interest therein.

4. Same example in No. 3. The only problem now is that S and B have not agreed upon
a definite price at the time of sale. May there still be a valid contract of sale between
them?

- Yes. Article 1469 explains where such third persons are prevented from fixing the price
or terms by fault of the seller or the buyer, the party not in fault may have such remedies
against the party in fault as are allowed the seller or the buyer, as the case may be.

5. Same example. The only problem in the case is that the price was fixed only by S. Is
the sale valid?

- In Article 1473 the fixing of the price cannot be left to the discretion of one of the parties
because the law requires consent of both parties on the price.