CAUSE OR CONSIDERATION

CONTRACT OF SALE
 CERTAINTY OF PRICE
1. When a specific amount is stipulated in the
contract
2. When no specific amount is stipulated in the
contract (Art. 1469)
a. with reference to another thing certain
b. Determination of the price is left to the
judgment of a specified person or persons
c. Price fixed on a definite day in a particular
exchange or market (Art. 1472)
 EFFECT OF GROSS INADEQUACY
OF PRICE (Art. 1470)
• In ordinary sale – valid
– If consent is vitiated – voidable
– Or parties intended another contract i.e. donation
or loan
• In judicial sale - void
 EFFECT OF SIMULATED PRICE
(Art. 1471)
• Contract of sale is VOID
• Parties may prove another contract i.e.
Donation or loan
 EFFECT OF PRICE FIXED
BY ONE PARTY (Art. 1473)
• NOT VALID
• No consent
• If the other party agreed, there is consent
 EFFECT IF PRICE CANNOT BE
DETERMINED (Art. 1474)
• The contract of sale is VOID.
• EXCEPTION – when the buyer use or
appropriated the thing, he must pay a
reasonable price
• Reasonable price – depends on the
circumstances of each particular case