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    © All Rights Reserved
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    10 views6 pages

    1

    Uploaded by

    Marge

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    REGULATORY FRAMEWORK IN BUSINESS TRANSACTIONS. TOPIC 3: LAW ON SALES. a ‘imeet 0 pay. 4. Essential elements/requisites - wihout t, contact cannot enst (Consent, Object Cause) 2. Natural elements ateady ost a contrac even donc sipule wartany agaist evo, warranty aginst hddon detects and encumbrances) ‘3 Reeldental eloments - patios sipulated tome, lace and time o payment and hor cenaitone agreed upon) Perfection/Consensual -peseciod by mere consent Bilateral both pares ate bound by reipoca! obtgations Commutative ~nere is equivalent preston ofthe pares Principal ~ does not depend upon anoher contact Cnerous — partes give valuable consideration inorder to acquis Nominate —es@ spec lw gen t by law 7. Aleatory- sale of hope, no eqetalence inthe value of he preston [GENERAL RULE: 4 contact of sale may be made io wring, word of mouth, pay wing o pry word of mouth, must be ered rm the conde of tmepanes aneapel 1. The law rogues a document or other special fom, the contacting parse may compel each ther to observe the form. (At. 1357) 2. Under ho Statue of Frauds ~ MUST BE IN WRITING TO BE ENFORCEASLE ‘+ Sale of eal propery or any rest therein tegarlass othe price) + Sale of goods, chattel morgage o things in acton (500 or mote) 3. Sale piece ol land tough an AGENT — MUST BE IM WRITING + Agent auhoety to als not in wting — VOID Agent autor to sel ina pubefprivats instrument © Oraly~ ENFORCEABLE (© Impublelpiate strumen:- VALID ‘Note: In er that the sole may be recorded in the Register o! Deeds, both autory othe AGENT and the SALE must be ia PRIVATE INSTRUMENT. ACONTRACT OF SALE MAY BE ABSOLUTE OR CONDITIONAL: 4. In absolute sale, no condtion is imposed and onnershptranslrs upon dovry 2. A conditional sale contemplates a contingency Pe (ED FROM OTHER TRAN: 7 Grerous | GrataovstOnerous ¥ Cause or consideraton isfy Party in money and pany in anther hing % Consensual |¥ Formal Contact money 10f the thing gven as a pat of the consideration Law on Sales |v Law on Donation xceads the amount othe maney ofits equivalent 7 No pre-onsing create 7 Pie-onting cis J Pre-anaing croaie + Creates obligations 7 Estnguishes obligations J Eminguishes obgations }¥ Seller ~ Cause isthe price } Seler~Cause's the axingushment ofthe }v Detar ~ Causes the exingushment ofthe obsgaton 4% Buyer—Dalvary che object ‘blgaion | Creditor - Assignment ol the things to be sold 7 Greater reedam intinng the price |“ Buyer - Detvery othe object | Les reedom in tng te price | Onmerenp we tarsterte tothe buyer [Lets teegem faxing the price [- creators 00 NOT become th owners ofthe propartios 77 Propary passes to he vondee upon fe Gevery tthe hing soa f” The tothe goods is hot VarsTrroa fo he agers, the FaK Glloss remains wih }7 The buyer required to pay the price the principal ‘Agent is required to turn over tothe princizal the pice of goods [7 WareFactured nthe ovary course of Busnes 7 Wanatasured special fr the customer ane upon apectt ord Paty pars athe vendo upon toe Gey othe Wang so [a pass oH vere ot Tol paynon he purchase poe 7 Vencor has lost and carver recover ounersrio unless the |v Onnersnp retained by the seter contracts is acs ot osaled Non-payment of he lice is a positive resoksory Nonpayment ofthe pices a negative resolory ‘The rk of oss is on he seler 7 The isk of oss is on the buy. Two contacts (a) Contact o Sel and () Deed of Absolite Sale 7 Chiy one contact botwoan Seer ard buyer (oxecued air tll payment ofthe purchase price) ‘Vendor Safer —Tas the Tight to wana the ounaicip Othe Ting at ha Une Ws Gavared ‘Vendeo / Buyer — legally capacated to enter nto contact ~ Incapacity —cannct ve consort 1. Absole Ineapaciy ~ cenrot give consent to any and al cottact 2. Relative napacty- pronished tom enierng some specie rarsactons Minors and those without Capacity to Act — valid contac of sale of necessaries 7 The subject matter which may be things or Fights ‘Service cannot be the object of contract of sale. Rules on the object of the contract ot sale ¥ Requsites ‘a Musto let or within the commerce of men ', VENDOR must have the rights to transfer the ownership € Mustbe determinate 4. Etter be existing goods or thngs having potential existence ‘+ Emptio Rel Sparatae ~ sale o! ture things: must come nto existence + Emptio Spel - sale of present time; produce etlects even il te ting hoped does not come into vxsience + Vain Hope VOID 2. May be segregated or an undivided share or Interest 1, Things subject to resolutory condition 9. Sale of fungible goods (interchangeable goods) ‘+ The mass is more than the quantty sald — parties became co-owners ‘+ The mass is loss than the quantity sold the buyer becomes tha owner ofthe whole mass, the sale is bound to make the doiciency om goods ofthe same kind and quabty 7 Price isthe sum stipulated as the equivalent of things The prostation or promise tobe pertormed by the other part The delivery of the object and the payment ofthe price Rules on price Y Must be certain ‘+ Relerence to anotner thing ‘+ Determination ett judgment ofa special person's «© Unable or uruling to tixt, hence, na contact of sale © Acted in bad fat or by mistake, courts may fx the price 1 Prevented trom fing the price, the party notin fault may have such remedies Faire to pay the coreidoraton ve lack of considoration ¥ Gross inadequacy of price does not afect he contract of sale ¥ Simulated price is VOID, but the act may be shown to have been in realty a DONATION +The price Is thed by one ofthe panies is accoptod by the ether, the sale is perfected. 'As to money given Distinct consideration for a option contract Forms partaf the purchase price ‘As to perfection ‘Applies to resale not vet perfected {Gren ony when there i ateady a sale ‘Obiigation of the buyer upon | Prospective buyer not required 1 Guy “The buyer is bound io pay the balance ‘payment of consideration ‘As to rocovery buyer does net decide 1 buy. canrot be recovered | I sale ci not materialize, f must be returned ‘Ownarshi i reserved the soll and is not to pass | Tile passas 10 the buyet upon delivery ofthe Bin Astotranster of ownership | Orta rayent es ee a . a Effect of Nampayment | Speci performance ‘Specie podomance and rescson 4. Negotiation - communication of the otter to buy/sell tothe othor party. 2. Perfection - contract of sale is periected 8. Consummation ~ contract ot sale takes place by the devery ofthe thing 7 Peericted by mere consent 7 GENERAL RULE: happens only alia’ the dalvery, Sther aGual or consiuane EXCEPT: the partes agreed that ownership wil ot pass unt full payment of the pice 7 Each fis subject ofa soparate contract of sale Auction is prtoctod «Rights of partes belore pertecton ‘© Any ber may retract his bid ©. Withdrawal of goods is equvalnt toa rejection of the offer + Rights of partes ater pertecton =the bidder CANNOT reract his bid Right ot seter 1 bia ‘+ GENERAL RULE: Hae no ight to bid + REQUISITIES © Musthave been reserved expressly © Notice mist be gen thal he sale is subject io 8 right 0 bie, AND © Must not be prohibited by law or stipulated “By bidders” or “Puttors” refer 'o the persons amployad by the SELLER to bitin his behal, the purpose is 10 raise the ice, but the said persons ARE NOT in themselves bound by thei bids. ‘SALE OF GOODS BY DESCRIPTION OR SAMPLE: the conact may be rescinded I the bulk of the aoods delivered de not correspond with tho ‘description or the sample. ‘SALE OF GOODS BY DESCRIPTION AND SAMPLE: # ihe contract be by sample as well as description, i isnot suticient thatthe bulk of goods ‘correspond withthe sample f they do not eiso corespond wit ie description. ‘The buyer shal have a reasonable opportunity of comparing the bulk withthe description or the sample, “Hse Wala Sales o POODAT PrOPSAY To GaN oT Se ATE CE PST ADIT H WDE ‘tomate addonal payments ona propery [ALTERNATIVE REMEDIES OF THE SELLER “Tact fllimert =o 77 2 Vende' ft pay (woot mote insatants) 12 Cancel the sule~ mutual enton bt sel slowed fo ean a resonate amour rl of ther is feet clause 1b Foreclose the chatel morgage ~loreosed te mongage onthe personal pcpany sal (GENERAL RULE: The solar alowed to retin a reasonable amount of the purchase price lady pad at ‘Compensation fr haus lhe ting enor ALL che aun pad cn tiara fofekure cause which ene ‘otha puchase pew ateady pata the ime t cancion EXCEPTION: te ftonton ALL the pucnass pres wows be unconseionabe (Republic Act No 6552) + Tantacten Coveted = resent veaty natamars + apis ote buyer ‘Lees than 2 years retainers ‘Grace pried pay witout intarast thn 60 day, can applied ance every 5 years ‘2 The buyer may slr asin his erst 2 Pay th ete ance ‘+ ator leas 2yoars fname (adores) 1m soaton 60 day ataz0 pos, the BUY Rave adeonal 1 mann 190 pared! every Yea’ of etamen is Fao rescind tn contact, requed to ive Cash Surrender Valve to he buyer + An adtonal 3 over yor bu not exceed 90%. vow stpuLATIONS: + Station as to lerest cr damages or penaty ding the grace porod + Fareture clues 1 Atma cancelaton of wescision yao delat the tet RESCISSION REQUIREMENTS: Th ant escsin il ake tet ony 20 day rm coming wes bth + Notice tobe genase Pe buyer tenon to reece + Payment cf ta ash sutender vatue ¥ passion nas Buyers a ‘2 To el sights to anther © Ta abegn he nh to arenee © Toeniate the cota! by updating the cantet + Pay acvance any trent ‘+ As frany annotation ofthe fl payment MACEDA LAW IS NOT APPLICABLE TO ALOAN TRANSACTION. Tals and condorinaims, providing penslles fr Wolalaras Ware (PONE 7) + Subision Let — whether rion commer nda ~ Condominium Unt-irtndos fr ary ye of ndeperdert us ct cwnetehe,icudng oreo mote spaces ules etecing instalment purchases of Condomin um + Non-forfture of payments ~ Buyer ina subavison ot condominium sje cane have that iting payments footed they cheese eee making eayments due the owner of evaoce’'falir io devel he projet acceaing to be approved pars and win he Specs ie Wt + Failure to pay nstalment = governed by RA 882 1 To take caro he ting after the contract has bean perfected, rir to delivery. ‘Loss of he ting pending delivery +) "Objects entre lost= conic! sha be wou ay tect ‘Thing oe in parton, the buyer may noosa betwaon: © Withdrawing rom he contac, © Dernandig he remaiing prt The goods mus the knowlege othe seer nave parsed in par ox have why a materi paso detroratecin quay as 1 be suntan cnanges menace te buyer Maya as opton West the tale < Reaveided {As validin al ofthe existing goo on so much there as have nol dteroted, and as bed he buye! 0 poy the agreed pce forthe goodsin which he owmersic wil bass. he sale was dsb, ‘lnk of Loas: GENERAL RULE: he hing perishes wit he omar, flowing he prince of rs pet domino coptions: 8.” Stpuaion 1. Sacumt tee — vere dover fhe goods has been made ote bye roa bale the buyer Delay he dlvery- whoever causes he dey shal bear the ik css ‘The cwneretp passes to ha tae: 2. Signe hs approval 1b. Retains he gods witout ging ntce a ejecton 2. obligation to pay taxes an incloemts ofthe sale, unless otherwise, aged upon; 23. Te warrant ie tng 44 Tetrancter ownership SELLER IS NOT THE OWN ‘General Rule: ho buyer acqutor no Boker oto he goods thane solar has Exceplons: nal ofthese excotons, the buyer acqutes GOOD TITLE i the otject even if theses ot the owner 2. Salers authorized bythe owner «such as an gent 1. Seller had statutory or judicial authority to sel uch a «quan, execu, administrate, or cou shtt © Incase o estoppet: 2 Astothe ownar estoppe! In pais -y his conductor reprsentatr, he lod th buyer to Bev hat the sir had author to sl © AStothe seller estoppel by deed at: tw sale, the seller acquires cusp. such ownership auiomatealy passes tthe bye as {othe ang remy darted 4. Sate of ar Apparont Ownar: REQUISITES: 1. Thee i anparent oumersnp |. Buyer in good fath and fr value - the buyer had no knowedge of ary delet in he seller's tite a the ime fl payerent nt ony a the me ols) 1 There must bea aw om which apratet camership may bead such as: ‘2. PD'1520 which powdes that hose dealing wih registered lan neod not nqute beyond ih tle, ao brown as tbe minor ‘Benepe, nls the buyers roques under law t extice th ghost ogre0 of angerce,@'.,barks and pute Ly companies » ©. Putchace rom a Metchant Stove, Mare! of Fain good th andor vate 5. Te delve the determine thing or specif thing ine!ucing the frultsttom tne moment the abllgaton to delve arses and the accessions and accesseres thereat MODES OF DELIVERY: THINGS. vagy egye (