CHAPTER 2

CAPACITY TO BUY
AND SELL
DURATION : Allotted in this Chapter is six (6) hours.
INTRODUCTION
Generally, all persons who may enter into a simple contract may also enter into a
contract of sale. As a rule, all persons either natural or juridical is given the legal
capacity to buy and sell.

However, under this chapter, we will study the provisions of the law regarding absolute
and relative incapacity to enter into a contract of sale.
OBJECTIVES
At the end of this chapter, the students should be able to:

1. Enumerate the different modes disqualifying a person from entering into a

contract of sale;

2. Explain the disqualifications from entering into a contract of sale; 14.

Correlate different cases related to the topic.
 Article 1489
All persons who are authorized in this Code to obligate
themselves may enter into a contract of sale, saving
the modifications contained in the following articles.
Where necessaries are those sold and delivered to a
minor or another person without capacity to act, he
must pay a reasonable price therefor. Necessaries are
those referred to in article 290. (1457a) (Civil Code of
the Philippines)
All persons who can bind themselves by contract have also the legal capacity to buy
and sell.

KINDS OF INCAPACITY
• Absolute Incapacity - persons cannot bind themselves at all Minors

• Insane or Demented

• Deaf-mutes who do not know how to write Civil Interdiction

• Relative Incapacity - only with regards to certain persons and a certain

class of property
HUSBAND AND WIFE

As a general rule, a husband and wife cannot sell to each other

• Exception:
• When separation of property was agreed
• There was a judicial separation of property
RELATIVE INCAPACITY
The following persons cannot acquire property by purchase, even at a public auction,
either in person or through the mediation of another:

1. Guardian, concerning the property of his ward.

2. Agents, the property whose administration or sale may have been entrusted to them
unless the consent of the principal is given
3. Executors and administrators, the property of the estate under his administration.
Public officers and employees, concerning the properties of the government, political
subdivisions, or GOCCs, entrusted to them.
What are the effects
of the violation?
Answer:
a. For numbers 1-3 aforementioned, the
contract will be voidable (only private
rights, which are subject to ratification
are violated
RELATIVE INCAPACITY

6. About numbers 4-6 above-mentioned, the contract will be null and void (violation of
public policy cannot be subjected to ratification
As a general rule, all parties with the capacity to contract can enter into a valid
contract of sale:
7. Natural person - in jurisprudence, a natural person is a person that is an individual
human being 1
8. Judicial – a non-human legal entity 2
i.e Corporation, partnership, associations, Cooperatives
 Article 1490
The husband and the wife cannot sell the property to
each other, except: (1) When a separation of property
was agreed upon in the marriage settlements; or (2)
When there has been a judicial separation of property
under article 191. (1458a) (Civil Code of the
Philippines)
 Article 1491
The following persons cannot acquire by purchase, even at a public or judicial
auction, either in person or through the mediation of another: (1) The guardian,
the property of the person or persons who may be under his guardianship; (2)
Agents, the property whose administration or sale may have been intrusted to
them, unless the consent of the principal has been given; (3) Executors and
administrators, the property of the estate under administration; (4) Public
officers and employees, the property of the State or of any subdivision thereof,
or of any government-owned or controlled corporation, or institution, the
administration of which has been intrusted to them; this provision shall apply to
judges and government experts who, in any manner whatsoever, take part in
the sale;
 Article 1491
(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts,
and other officers and employees connected with the administration of justice,
the property and rights in litigation or levied upon an execution before the
court within whose jurisdiction or territory they exercise their respective
functions; this prohibition includes the act of acquiring by assignment and
shall apply to lawyers, with respect to the property and rights which may be
the object of any litigation in which they may take part by virtue of their
profession; (6) Any others specially disqualified by law. (1459a) (Civil Code of
the Philippines)
 Article 1492
The prohibitions in the two preceding articles apply
to sales in legal redemption, compromises, and
renunciations. (Civil Code of the Philippine
EXPERIENCE ABROAD

MERCURY MARS
Mercury is the Mars is actually a
smallest planet cold place

VENUS JUPITER
Venus has a Jupiter is the
beautiful name biggest planet
 315,000
Big numbers catch your audience’s attention
COMPUTER SKILLS

To modify this graph, click on it,

follow the link, change the data
33,4 % 33,4 % and paste the new graph here

Skill 1 Skill 3
11,8 % 21,5 %
Skill 2 Skill 4
HOBBIES

MERCURY VENUS MARS

Mercury is the closest Venus has a beautiful Despite being red, Mars is
planet to the Sun name, but it’s very hot a cold place

JUPITER SATURN NEPTUNE

It’s the biggest planet in the It’s the ringed one and a It’s the farthest planet from
Solar System gas giant the Sun
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