Law Reviewer - Lecture notes 1 PDF

Preview

Summary

Regulatory Framework and LegalIssues in Business What is the minimum requirement for a valid object of a contract of sale? the thing must be particularly designated; the thing must be physically segregated from all others of the same class the thing is capable of being made determinate without the ...

Description

Regulatory Framework and Legal Issues in Business 





  

   



 

 

What is the minimum requirement for a valid object of a contract of sale? the thing must be particularly designated; the thing must be physically segregated from all others of the same class the thing is capable of being made determinate without the necessity of a new or further agreement between the parties The following persons are relatively incapacitated to enter into a contract of sale by reason of their relation to the objects of sale, choose the exception aliens Determination of a price may be left to the judgment of an arbitrator, what is the effect should such person be unable to fix it? the contract is inefficacious Emptio spei deals with: present things A promise to buy and sell a determinate thing for a price certain is reciprocally demandable In a contract to sell, full payment of the price is a positive suspensive condition, what is the effect when there is failure to pay the price? such failure prevents the obligation of the vendor to convey title to vendee Ownership of the thing sold is acquired by the vendee from the moment of delivery to him A contract of sale is perfected at the moment there is a meeting of minds upon the object and the price Which transaction is considered a contract of sale in the Philippines? Philippine peso exchanged for local coins Which of the following is not a requisite of the Recto law, the proviso on non-recovery of the deficiency the object of sale is personal or real property Lester sold his laptop with a value of P15,000.00 to Daniella in consideration of Daniella’s bag worth P10,000.00 and P5,000.00 cash, what kind of transaction did the parties enter into? contract of sale It is a contractual reservation of title pactum reservati dominii First statement: Things having potential existence may be objects of a contract of sale. Second statement: The thing is licit when the object of a contract is something within the commerce of man. Both statements are true Warranty against deprivation of the property purchased is an inherent element of a contract of sale In dation in payment, as distinguished from a contract of sale the delivery of the object may extinguish completely or partially the credit



Miss Karen is the representative of the Philippines for the Miss Universe 2020 contest to be held in Norway. To finance her quest for the title, she sold to J. Ivan for P1 Million the Audi car she would receive if she wins the title, is the sale void? NO, there may be sale of a thing whose acquisition depends upon a contingency



As a rule, gross inadequacy of price does not affect a contract of sale. However, if the price is so inadequate as to be unconscionable, what is the effect? the contract of sale may be annulled



Angie and Cyrine executed a contract of sale wherein Angie would render professional service in favor of Cyrine for one week based on the rate imposed by the minimum wage law, is the contract valid? NO, there is no price certain in money



Sydney owns a specific piece of land and being the sole owner thereof, he can sell the same; but which of the following may not be sold by Sydney? NONE



A contract of sale may be absolute or conditional



Kristine agreed to sell her car to Patrick who gave her the amount of P10,000.00 as initial payment. Subsequently, the car was delivered to Patrick. Due to her busy schedule, however, Kristine forgot the transaction with Patrick. Two years after, Kristine saw Patrick with the car at the mall and demanded payment of the price of the car. Is the demand of Kristine valid? YES, Patrick must pay the reasonable price of the car



Angeline’s rich uncle died and left her and her siblings a property in London. After being informed of the death of her uncle, Angeline sold to her brother Jordan her share of the London property. Angeline’s sister, Ericka, questions the transaction for being void, is the contention of Ericka correct? NO, Angeline’s right to the London property is already realized and may be sold.



In sale by auction, may the auctioneer withdraw the goods from the sale? YES in general but before perfection as the bid is merely an offer



The effects of “on sale or return”, ownership passes to the buyer on delivery; buyer can return the object even if he finds nothing wrong with its quality; the buyer bears the loss of the object



A characteristic of some contracts of sale wherein what one receives may in time be greater or smaller than what he has given Aleatory



It refers to the deprivation of the vendee of the whole or a part of the thing sold by virtue of a final judgment based on a right prior to the sale or an act imputable to the vendor Eviction



When the thing sold and delivered to the buyer contains hidden defect and there is no waiver of the warranty against hidden defect, when shall the seller be liable for the loss of the thing sold with hidden defect? The seller shall be liable regardless of the reason of the loss.



The following are the rights of unpaid seller Possession lien, or a lien on the goods or right to retain the goods while he is in possession of them. Right of stoppage in transit Right of resale Right to rescind the sale



S and B entered into a contract of sale of a specific coconut. S and B pointed over that particular coconut. What type of constructive delivery is present? Traditio longa manu



It refers to the money given as part of the purchase price as a proof of perfection of the contract of sale. Earnest money or Arras



The unpaid seller loses his right to possessory lien on the goods in the following cases or these are the instances when the unpaid seller can no longer exercise his right to retain the goods When the buyer or his agent lawfully obtains possession of the goods. By waiver of the possessory lien When the seller delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the ownership in the goods or the right to the possession thereof.



This agreement is considered void as it is against law and public policy. It refers to an agreement between the vendor and the vendee in the sale of an immovable that rescission of the contract shall of right take place if the vendee fails to pay the price at the time agreed upon. Pactum commissorium



When shall the buyer or vendee acquire personal rights over the fruits of the object of a contract sale? From the time of the perfection of the contract of sale



What is the prescriptive period of the accion redhibitoria, accion quanti minoris or all other actions to enforce the seller’s liability for hidden defect? 6 months from the delivery of the thing sold



It refers to a defect in an animal and it is of such nature that expert knowledge, even after a professional inspection has been made, is not sufficient to discover it. Redhibitory defect



May the parties agree that full payment of the price will be the act that transfers ownership in a contract of sale? Yes, by reason of liberality of contract.



It refers to the consideration paid for the purpose of holding one to his promise to buy or sell a determinate thing for a certain period of time, which consideration is separate and distinct from the purchase price. Option money



It refers to the right of the unpaid seller to resume possession of the goods at any time while they are in transit, and he will them become entitled to the goods as he would have had if he had never parted with the possession. This right is available after the unpaid seller has parted with the possession of the goods and the buyer is or becomes insolvent. Right of stoppage in transit



What shall be the extent of liability of the vendor in case of loss of the thing with hidden defects wherein the vendor was aware of the defect and the cause of the loss is the defect? Return the price, refund the expenses of the contract and pay damages.



It is an encumbrance imposed upon immovable for the benefit of another immovable belonging to a different owner. Easement or servitude



In case of double sale of registered or titled immovable property, who among the buyers shall be preferred? Person who in good faith first registered the sale.



The following are the requisites for right to rescind the sale to be available to an unpaid seller The buyer has defaulted in the payment of the purchase price. Title to the goods has passed on the buyer. The grounds must be: 1.) The seller has expressly reserved the right to rescind the sale in case the buyer should make default or 2.) The buyer has been in default in the payment of the price for an unreasonable time.



The following are the grounds for the exercise by the unpaid seller of his possessory lien or right to retain the goods Where the buyer is insolvent. Where the goods have been sold without any stipulation as to credit. Where the goods have been sold on credit, but the credit term as expired.



S promised to sell his car to B for P100,000 giving B one week to decide whether to buy or not. B accepts the promise and gives a consideration of P1,000 for the one-week period. If B decides to buy the car, how much should B pay to S. P100,000 because the P1,000 is an option money.



He is one who has not been paid or tendered the whole of the price or who has received a bill of exchange or other negotiable instruments as conditional payment and the condition under which it was received has been broken by reason of the dishonor of the instrument, the insolvency of the buyer, or otherwise. Unpaid seller



The following are the obligations of the vendor in a contract of sale To warrant the thing sold against eviction and hidden defects unregistered encumbrances. To deliver the determinate thing sold including the accessions and accessories in the condition in which they were upon the perfection of the contract. To take care of the thing sold before delivery to the buyer with the diligence of a good father of a family or ordinary diligence unless the law or the stipulation of the parties requires another standard of care.



When is the ownership or title of the thing sold transferred from the buyer? Upon actual or constructive delivery of the thing sold.



What is the prescriptive period for the warranty against hidden or non-apparent burden, encumbrances or servitude on immovable? 1 year from the execution of deed of sale or discovery of encumbrance or burden



The seller has the duty to preserve the thing after the perfection of contract of sale but before its delivery. What standard of care should be observed by the seller to preserve the object of contract of sale? Diligence of a good father of a family or ordinary diligence unless the law or the stipulation of the parties requires another standard of care.



I nas al eofr eales t at ewi t has t at ementofi t sar eaatt her at eofac er t ai npr i c eperuni t ofmeas ur eornumber ,t hev endorshal l del i v ert hear eament i onedi nt hecont r actof s al e.Whati st her emedyoft hebuy eri ft heact ualar eai sl esst hanbyanar eal es s t hanbyanar eal es st han1/ 10oft hats t at edi nt hecont r act ? Ask for proportionate reduction in the price.



Which transaction is considered a contract of sale in the Philippines? Philippine peso exchanged for local coins



In sale of realty by installments under the Realty Installment Buyer Protection Act, where the buyer has paid at least two years of installments and the contract is cancelled, what must be refunded to the buyer? fifty percent of the total instalments



The following persons are relatively incapacitated to enter into a contract of sale by reason of their relation to the objects of sale Guardians Agents Court employees



Angie and Cyrine executed a contract of sale wherein Angie would render professional service in favor of Cyrine for one week based on the rate imposed by the minimum wage law, is the contract valid? NO, there is no price certain in money



It is the act or right of purchasing before others, and exercised before the sale or resale against would-be vendor: right of pre-emption



It is a conditional sale of personal property as security for the payment of a debt, or the performance of some other obligation specified therein, the condition being that the sale shall be void upon the seller paying to the purchaser a sum of money or doing some other act named. If the condition is performed according to its terms the mortgage and sale immediately become void, and the mortgagee is thereby divested of his title. Chattel Mortgage



The following are the important characteristics of contract of antichresis Accessory – It cannot exist without principal obligation or contract of loan. Real right – It creates a lien on the property mortgaged. Indivisible – It creates a lien on the whole or all of the properties mortgaged, which lien continues until the obligation has been fully paid. Inseparable – It subjects the property upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for whose security it was constituted.



Who shall be liable to pay the real property taxes and expenses necessary for the repair and preservation of the real property used as collateral in contract of antichresis? Antichretic creditor in the absence of stipulation to the contrary.



It is a contract whereby the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit. Antichresis



Upon non-payment or default of the antichretic debtor of the principal obligation, may the antichretic creditor automatically appropriate the real property used as security? No, because it is pactum commissorium which is prohibited by law and public policy.



ABC Inc. borrowed P2,000,000 from BPI. ABC Inc. is under receivership. To secure the fulfillment of the loan, ABC mortgaged its administrative building. Which of the following statement is correct? The contract of mortgage is null and void because the mortgagor has no free disposal of the thing.



In contract of antichresis, what shall be the basis of measurement of the fruits in its application to the interest and principal of the loan? The actual market value of the fruits at the time of the application.



It is contract whereby the debtor or third person secures to the creditor the fulfillment of a principal obligation specially subjecting to such security immovable property or real rights over immovable property in case the principal obligation is not complied with at the time stipulated. Real estate mortgage



The following are the requisites of chattel mortgage for its validity That it be constituted to secure the fulfillment of a principal obligation. That the mortgagor be the absolute owner of the thing mortgaged. That the document in which the mortgage appears be recorded in the Chattel Mortgage Register. That the person constituting the mortgage must have the free disposal of his property, and in the absence thereof, that he be legally authorized for the purpose.



The following may become object of chattel mortgage Personal property Movable property Intangible assets



In case the thing pledged is alienated by the debtor-pledgor to third person, what is the effect of the consent of the pledgee to the alienation made by the pledgor of the thing pledged to third person? The ownership of the thing pledged is transmitted to the buyer.



The contract of pledge shall cover the following; The thing pledged. The offspring, when the thing pledged is an animal, unless there is a stipulation excluding them. The fruits, income, dividends or interests earned or produced by the thing pledged, unless there is stipulation excluding them.



It is a stipulation whereby the thing pledged or mortgaged shall automatically become the property of the creditor in the event of non-payment of the debt within the term fixed. Pactum commissorium



Which of the following statements concerning contract of chattel mortgage is correct? The mortgagee is not obligated to file an independent action for the enforcement of his credit or loan secured by a chattel mortgage. To do otherwise would defeat the purpose of the chattel mortgage, which is to give him preference over the mortgaged chattels for the satisfaction of his credits. A mortgagee who sues and obtains a personal judgment against a mortgagor upon his credit waives thereby his right to enforce the mortgage securing it and therefore no longer allowed to foreclose the chattel mortgage.



What is the nature of a contract of pledge? Real contract



The following may become the object of a contract of pledge All movable Personal property susceptible of possession. Incorporeal rights which are evidenced by negotiable instruments, bill of lading, shares of stocks, bonds, warehouse receipts and similar documents.



D borrowed P1,000,000 from C. G, a third person, mortgaged his land to secure the fulfillment of D’s loan. Is the contract of mortgage valid? Yes because third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property.



What is the nature of the contract of antichresis? It is a formal contract perfected by the execution of the written instrument containing the antichretic agreement together with the amount of the principal and interest of the loan.



Thef ol l owi ngar et hees s ent i alr equi s i t esofacont r actofr eales t at emor t gagef ori t s v al i di t y That it can be constituted to secure the fulfillment for a principal obligation. That the mortgagor be the absolute owner of the thing mortgaged. That the person constituting the mortgage must have the free disposal of his property, and in the absence thereof, that he be legally authorized for the purpose.



The following requisites are essential to the contracts of pledge, real estate mortgage and chattel mortgage That they be constituted to secure the fulfillment of a principal obligation such as contract of loan. That the persons constituting the pledge or mortgage have the free disposal of their property, and in the absence thereof, that they be legally authorized for the purpose. That the pledger or mortgagor be the absolute owner of the thing pledged or mortgaged. That when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment of the creditor.



In commodatum, the bailee acquires jus utendi or right to use



A contract whereby one person transfers the ownership of non-fungible things to another with the obligation on the part of the latter to give things of the same kind, quantity, and quality Barter