Law on Sales
ATENEO de Manila LAW SCHOOL
LAW ON SALES OUTLINE[1] Dean Cesar L. Villanueva First Semester, SY 2009-2010 and Atty. Alexander C. Dy
I. The Nature of Sale
A. Definition (Art. 1458)
Sale is a contract by which one of the contracting parties obligates himself to transfer the ownership[2] and to deliver possession, of a determinate thing, and the other to pay therefor a price certain in money or its equivalent. xCruz v. Fernando, 477 SCRA 173 (2005).[3]
1. Elements of Sale
Elements of sale: (a) consent or meeting of the minds; (b) determinate subject matter; and (c) price certain in money or its equivalent. xNavarra v. Planters Dev. Bank, 527 SCRA 562 (2007).[4]
Absence of any essential elements negates a sale xDizon v. CA, 302 SCRA 288 (1999),[5] even when earnest money has been paid. Manila Metal Container Corp. v. PNB, 511 SCRA 444 (2006).
Sale being a consensual contract, its essential elements must be proven xVillanueva v. CA, 267 SCRA 89 (1997); but once proven, a sale’s validity is not affected by a previously executed fictitious deed of sale xPeñalosa v. Santos, 363 SCRA 545 (2001); and the burden is on the other party to prove otherwise. xHeirs of Ernesto Biona v. CA, 362 SCRA 29 (2001).
2. Stages of Contract of Sale
Policitacion covers the period from the time the prospective contracting parties indicate interest in the contract to the time the contract is perfected. Perfection takes place upon the concurrence of the essential elements, which are the meeting of the minds of the parties as to the object of the contract and upon the price. Consummation begins when the parties perform their respective undertakings, culminating in the extinguishment thereof. xSan Miguel Properties Philippines, Inc. v. Huang, 336 SCRA 737 (2000).[6]
3. Sale Creates Real Obligations “To Give” (Art. 1165)
4. Essential Characteristics of
LAW ON SALES OUTLINE[1] Dean Cesar L. Villanueva First Semester, SY 2009-2010 and Atty. Alexander C. Dy
I. The Nature of Sale
A. Definition (Art. 1458)
Sale is a contract by which one of the contracting parties obligates himself to transfer the ownership[2] and to deliver possession, of a determinate thing, and the other to pay therefor a price certain in money or its equivalent. xCruz v. Fernando, 477 SCRA 173 (2005).[3]
1. Elements of Sale
Elements of sale: (a) consent or meeting of the minds; (b) determinate subject matter; and (c) price certain in money or its equivalent. xNavarra v. Planters Dev. Bank, 527 SCRA 562 (2007).[4]
Absence of any essential elements negates a sale xDizon v. CA, 302 SCRA 288 (1999),[5] even when earnest money has been paid. Manila Metal Container Corp. v. PNB, 511 SCRA 444 (2006).
Sale being a consensual contract, its essential elements must be proven xVillanueva v. CA, 267 SCRA 89 (1997); but once proven, a sale’s validity is not affected by a previously executed fictitious deed of sale xPeñalosa v. Santos, 363 SCRA 545 (2001); and the burden is on the other party to prove otherwise. xHeirs of Ernesto Biona v. CA, 362 SCRA 29 (2001).
2. Stages of Contract of Sale
Policitacion covers the period from the time the prospective contracting parties indicate interest in the contract to the time the contract is perfected. Perfection takes place upon the concurrence of the essential elements, which are the meeting of the minds of the parties as to the object of the contract and upon the price. Consummation begins when the parties perform their respective undertakings, culminating in the extinguishment thereof. xSan Miguel Properties Philippines, Inc. v. Huang, 336 SCRA 737 (2000).[6]
3. Sale Creates Real Obligations “To Give” (Art. 1165)
4. Essential Characteristics of