MODULE 2 POST TEST LAW ON SALES

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

1. Necessaries – those things which are needed for sustenance, dwelling,

clothing and medical attendance, in keeping with the financial capacity of
the family of the incapacitated person

2. Compromise - contract whereby the parties, by reciprocal concessions,

avoid litigation or put an end to one already commenced. It is the amicable
settlement of a controversy.

II. Discussion.
1. Are husband and wife allowed to sell property to each other?
No, the husband and the wife or live-in couples cannot sell property to
each other, except: (1) When a separation of property is agreed on marriage
settlement and (2) When there has been a judicial separation of property.

2. Under the law, who may enter into a contract of sale?

As a general rule, all those who may oblige themselves may enter into
a contract of sale. Except when minor, insane, demented and deaf-mute who
do not know how to write.

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

1. B, a minor, bought a pair of imported shoes worth P3, 000.00 from a

department store. Can F, father, cancel the sale on the ground of the
minority of B?
It depends, when the minor has no capacity to act. Therefore, the minor is
obliged to pay a reasonable price.

2. H and W are husband and wife. After selling his property to W, H

borrowed a big amount of money from C. It appears that H is now
bankrupt. Has C the right to question the sale of H’s property to W in
order to have said property answer for H’s indebtedness to him?
No, there is a prohibition on that right. But the law prohibits the husband
and the wife or live-in couples cannot sell property to each other, except: (1)
When a separation of property is agreed on marriage settlement and (2)
When there has been a judicial separation of property.