SALES SECOND SESSION

DEF OF CONTRACT OF SALE

- ART 1458
- Between 2 parties: individuals / juridical entities
- The moment you involve corporate entities, it will become more
complicated
- Try to distinguish from other types of contracts like:
BARTER (vs contract of sale)
DONATION (vs contract of sale)
CONTRACT OF INSURANCE – a contract of indemnity
SALE ON CONSIGNMENT –
A – pharmaceutical
B – hospital
C- patient
A is selling B medicines for C
- Is there a contract of sale? No, because there is no transfer of ownership;
only a transfer of possession of the products owned by A
*Consignment leads to a sale
1st case: SPS SERRANO AND HERRERA V CAGUIAT
Was earnest money important in determining if it is a contract to sale or contract to sell

What is the determining factor on whether it is a contract to sell or contract to sale?

- The “receipt for partial payment” where it was implied that the transfer of ownership was only
to come upon full payment

The signing of consigning contract – when is it? 1 st, 2nd or 3rd phase?

- Negotiation is before the birth; the perfection is the birth itself.

- When is consummation? – when the delivery/selling of goods was successful
NEXT CASE:

NABUS V PACSON

MAIN ISSUE:

WHETHER OR NOT THE DEED OF CONDITIONAL SALE WAS CONVERTED INTO A CONTRACT OF LEASE

*KNOW WHICH PROVISIONS OF THE LAW IS APPLICABLE

SC – DEED OF CONDITIONAL SALE WAS A CONTRACT TO SELL