Beruflich Dokumente
Kultur Dokumente
Article 1471. If the price is simulated, the sale is void, but the act may
be shown to have been in reality a donation, or some other act or
contract.
EFFECT OF GROSS INADEQUACY OF PRICE
AGENCY
The agent does not pay for the
price. He merely accounts for the
proceeds of the sale.
The agent does not become the
owner of the goods/property
delivered to him for sale.
The
agent
returns
the
goods/property if he was not able
to sell the same
The agent does not make any
warranty as long as he acts within
his authority and in the name of
the principal
The agent must follow the
instructions of the principal
NOTE: Mere inadequacy of the price does not affect the validity of the
sale, except
(1) When there is fraud, mistake, or undue influence indicative of a
defect in consent is present,
(2)When it shows that the parties really intended a donation or some
other act or contract.
EFFECT WHERE PRICE IS SIMULATED
1. The act may be shown to have been in reality a donation, or some
other act or contract
2. If not and neither party had any intention whatsoever that the
amount will be paid (absolutely simulated): the sale is void
3. If there is a real price but what is stated in the contract is not the one
intended to be paid (only relatively simulated): the contract of sale is
valid but subject to reformation
Effect of Gross Inadequacy of Price. No effect.
Exceptions: (meaning, sale is set aside)
1. If consent is vitiated, such as VIMFU (Violence, Intimidation, Mistake,
Fraud, Undue influence)
2. If the parties intended a donation or some other act or contract
3. If the price is so low as to be shocking to the conscience
Effect of Simulated Price. Sale is void, unless it could be shown that the
parties intended a donation or some other act of liberality.
o Price Simulated- No price to support a contract of sale, such that
neither party had any intention that the amount will be paidvoid
o Price is False- there is a real price not declaredcontract is valid,
but the underlying deed is subject to reformation to indicate the real
price upon which the minds of the parties have met.
Article 1475. The contract of sale is perfected at the moment there is
a meeting of minds upon the thing which is the object of the contract
and upon the price.
From that moment, the parties may reciprocally demand
performance, subject to the provisions of the law governing the
form of contracts.
PERFECTION OF CONTRACT OF SALE. Meeting of the minds upon the
thing and price.
Effect: Parties may reciprocally demand performance
GENERAL RULE: A contract of sale is perfected at the moment there is a
meeting of the minds upon the thing which is the object of the contract
and upon the price; consensual contract
Exception: When the sale is subject to a suspensive condition
REQUIREMENTS:
1. When parties are face to face when there is absolute acceptance of
an offer that is certain
2. When thru correspondence or telegram when the offer or receives
or had knowledge of the acceptance
3. When the sale is subject to a suspensive condition from the
moment the condition is fulfilled
NOTES: Qualified acceptance: mere counter-offer which needs to be
absolutely accepted to give rise to perfected contract of sale. Business
ads are mere invitations to make an offer except when it appears to be
otherwise.
Article 1477. The ownership of the thing sold shall be transferred to
the vendee upon the actual or constructive delivery thereof.
Article 1478. The parties may stipulate that ownership in the thing
shall not pass to the purchaser until he has fully paid the price.
Article 1480. Any injury to or benefit from the thing sold, after the
contract has been perfected, from the moment of the perfection of the
contract to the time of delivery, shall be governed by articles 1163 to
1165, and 1262.
This rule shall apply to the sale of fungible things, made independently
and for a single price, or without consideration of their weight,
number, or measure.
delivery
Transfer of ownership
Ownership
immediately passes
to the buyer on
Sale on Approval
Subject to suspensive
condition
It depends upon the
suitability, quality or
character of the
goods
Ownership does not
immediately pass to
the buyer. It passes
Revesting of
ownership in the
owner
Ownership is
revested in the seller
if the buyer so
decides
Risk of loss or
deterioration