1. A contract of sale is perfected by mere consent and a means of transferring ownership.

Things of potential in existence may be an object of sale.

2. Mere hope or expectancy cannot be a valid object of sale.

Things subject to resolutory conditions may be the object of the contract of sale.

3. A person cannot sell what he does not own.

A gross inadequacy of price does not affect a contract of sale.

4. A simulated sale is void contract.

There can be a valid contract of sale even if the same is against the will of the seller.

5. In an option contract, the Offeror may validly withdraw the option even though the period granted in
the agreement has yet to lapse.

In an option contract, the one who offered the sale may validly withdraw the offer even though it was
accepted by the offeree.

6. A perfection of an option contract is the same as that of the perfection of a contract of sale.

An option contract is a principal contract.

7. Abel agreed to the purchase price of 1 million pesos, in this case it can be inferred that there is a price
certain in money or equivalent as an element of a contract of sale.

It is indispensable that there is a meeting of the minds between parties to have a valid contract of sale.

8. The purchase price of the land subject of sale is worth 500k, however Chito advanced a payment of
only 10k pesos because that is the only cash available at the moment. In this case there is a perfected
contract of sale.

The purchase price of the land subject of sale is worth 1million pesos, Consuelo paid 20k pesos as
consideration to the offer made by Crisanto that he has the option to buy the property within a specified
time. In this case there is a perfected contract of sale.

9. There is acceptance once the buyer offered an amount less than what was offered by the seller.

The land is to be sold for 3 million pesos. Abel is very much interested to buy the property but has yet to
have the money to pay, hence he paid only an amount of 30k in consideration that the subject land will
not be sold to anybody but him. In this case it can be inferred that there is a perfected contract of sale.

10. In a contract to sell, ownership to the object is still with the seller.

In a contract of sale, once there is perfection, the ownership passes to the buyer, and the vendor cannot
recover unless the subject sale was annulled or rescinded.

11. Prior to the fulfillment of the condition in a contract to sell, the seller should have ownership of the
object for an effective transfer to be made.

A contract to sell is the same as that of a contract of sale with respect to the transfer of ownership.
12. Abel and Consuelo are cohabiting with each other for 10 years already without the benefit of
marriage. In this case any sale or disposition of properties between them is not covered by the
prohibition of sale to married couples.

A sale made between the married husband and wife is void.

13. If an agent bought the subject property of his principal, the same is void.

Derek a lawyer of Eric, bought a parcel of land subject of litigation, after they have terminated their
attorney-client relationship. In this case, the sale is void.

14. Judge Jose bought a land from a parcel of land annotated as Parcel 1 to Crisanta, whose another
property Parcel 2 is under litigation under the authority of the said judge. In this case the sale made falls
under the prohibited sale that judges cannot buy properties of the litigant.

Kiko a government employee of LGU A bought an auction laptop of LGU for the amount of 10 pesos. In
this case, there is a valid sale.

15. Rihanna and Bounceee agreed to a sale of a sun glasses worth 30thousand pesos, however the thing
was lost when the latter allowed Brittany to borrow the subject sun glasses which was the reason of its
loss. In this case, the rule on res perit domino will apply.

Res perit domino will apply in case when Bouncee handed the sun glasses to Rihanna.

16. The bailor reserves his ownership to the thing loaned even though. the same is delivered to the
bailee.

The lender retains ownership of the thing loaned, even though the same is delivered to the borrower.

17. Jose agreed to lend his pencil to Crisanta, in this case there is a perfected contract of Commodatum.

There is commodatum when Crisanta enjoys the pencil loaned by Jose, in consideration of the paper
that she gave to the latter.

18. Once a bailor loaned the thing to a bailee, he cannot thereafter demand the return of the thing, until
after the expiration of the period agreed or after the accomplishment of the use for which the thing
loaned was constituted.

It is a simple loan, when Jose lent Crisanto his carabao for the entire rice planting season.

19. There is mutuum when Jose delivered his carabao to Crisanto, with the promise that the latter will
deliver 30 cavans of rice after the harvest season.

Interests can only be demanded if the same is stipulated and agreed upon in writing.

20. A contract of Deposit is constituted when a person delivers to another an object with the only
purpose of safe keeping the same.

There is a perfected contract of deposit once the parties signed an agreement with the obligation that
the other party will take good care of the object of the agreement once delivered.
21. A deposit is essentially a gratuitous contract.

One of the instances wherein necessary deposit is applicable when the delivery of the thing is made by
the will of the depositor.

22. Angela was made a guarantor on the loan made by Crisanta. In this case either of them may be
compelled by the Creditor to pay the entire obligation.

Angela was made guarantor on the obligation of Crisanta to Jose. The obligation was thereafter
rescinded by a third person, in this case Angela, the guarantor can be held liable by Jose.

23. Jose lent his carabao to Crisanto for a period agreed upon, however prior to the expiration of the
agreed period, Jose Died, in this case his heirs can thereafter demand the return of the carabao
immediately.

Jose the creditor, extended the period of payment of Crisanta without the knowledge of Angela the
Guarantor. In this case, angela may demand that she may release as the guarantor of the obligation of
Crisanta.

24. The creditor cannot claim ownership on the thing pledged if the obligation to which the same was
constituted was not fulfilled or performed.

In a contract of Antichresis, the creditor acquires the right to receive the fruits of a movable property of
his debtor.

25. There can be no proportionate extinguishment if the pledge or mortgage was constituted for the
entire obligation.

A Pledge or mortgage is indivisible and the same cannot be affected even if the debtors are not
solidarily liable.