PARTIES TO A CONTRACT OF SALE Ramil F. De Jesus Introduction Not everybody can become a party to a contract of sale.

Since sale is a contract, contracting parties must possess the capacity to act. The general rule is that those who has the capacity to act or authorized under the law to obligate himself , may become a party to a contract. The Civil Code defines a sale as a contract whereby one of the contracting parties obligates himself to transfer ownership of and to deliver a determinate thing, and the other party to pay therefor a price certain in money or its equivalent.( Art. 1458 NCC). There are two parties in a contract of sale or contract to sell. Objectives To p[rovide an overview on the capacity of parties to a contract of sale To cite instances of sales between and by spouses. To To cite specific examples of incapacity mandated by law To cite relevant cases. Discussion Article __ of the Civil code proves that capacity to act is and juridical capacity is inherent in a person byut the capacity to act may be acquired or loss. It also provides for the limitation of the capacity to act. Minor, insane and demented persons have limited capacity toact and may not qualify as a party to a contracvt of sale either as a party seller or a party buyer. Generally minors, insane and demented person and deaf mute who did not know how to write have no legal capacity to act.( Vilanueva. Philippine Law on Sales citing Art. 1393 of CC)

However, the contract of sale entered into by the persons mentioned above is not void contract but merely voidable and may be subjected to ratification. Sales between Spouses Article 1490 provides:
The husband and the wife cannot sell 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 or property under Article 191. (1458a)

Thus in Medina v. Collector, to avoid further paying sales tax, the couple alleged that they have a pre-nuptial agreement and so they claimed that they were not covered by the prohibition of sale between husband and wife which will make the subsequent sale from the husband to the wife not taxable, the Supreme Court ruled in favor of the disqualification between them and determined that at the time of the marriage they did not have any properties to have warranted a pre-nuptial agreement of complete separation of property. The disqualification of spouses is important to prevent spouses from defrauding his creditor by transferring his properties to the other spouse and The disqualification app;ioes also to common law spouses. Specific Incapacity Mandated by Law
Art. 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 entrusted 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; (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)