GQs 74-157

WORKBOOK
GUIDE QUESTIONS
BUSINESS LAW 2
LAW ON SALES
0|Page
MOTHER INSTRUCTION: (1) French vente - sale
Answer, (2) legally discuss, and Spanish - venta - sell
(3) dissect the following 323
guide questions. (2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS
_______________________________________
BOOK 1 _______________________________________
_______________________________________
SALES
_______________________________________
_______________________________________
Lesson 1- 4 GQs
_______________________________________
DEFINITION-ORIGIN
_______________________________________
_______________________________________
1. Legally define a contract of
_______________________________________
sale?
_______________________________________
_______________________________________
(1)LA-LEGAL ANSWER/S:
By the contract of sale one of the
(3) LB/R- LEGAL BASIS/LS-LEGAL
contracting parties obligates
SOURCE
himself to transfer the ownership
of and to deliver a determinate
Roman Law, French and Spanish
thing, and the other to pay
therefor a price certain in money
(3)Who are the parties in a
or its equivalent.
contract of sale?
(2) LD/E- LEGAL
(1) LA-LEGAL ANSWER/S:
SELLER/VENDOR/DEBTOR/OBLIGO
The contract of sale is an
R
agreement whereby one of the
BUYER/VENDEE/CREDITOR/OBLIGE
parties (called the seller or
E
vendor) obligates himself to
deliver something to the other
(2) LD/E- LEGAL
(called the buyer or purchaser or
vendee) who, in his part, binds
_______________________________________
himself to pay therefor a sum of
_______________________________________
money or its equivalent (known as
_______________________________________
the price),
_______________________________________
_______________________________________
(3) LB/R- LEGAL BASIS/ Article
_______________________________________
1458 R.A. 386
_______________________________________
_______________________________________
LS-LEGAL SOURCE pg. 4. De Leon,
_______________________________________
H. S. (2010) The Law on sales,
agency and credit transactions.
(2010) Manila : Rex Book Store.
SOURCE
Article 1458 R.A. 386
(2)What is the origin of the word
sale?
(4)What are the general
obligations of said parties?
(1)LA-LEGAL ANSWER/S:
Roman Law - venditio - a sale
1|Page
(1) LA-LEGAL ANSWER/S: _______________________________________
SELLER/VENDOR/DEBTOR/OBLIGOR _______________________________________
: _______________________________________
SOTO Seller obliged _______________________________________
transfer ownership _______________________________________
SODD Seller obliged
-deliver determinate thing (3) LB/R- LEGAL BASIS/ Article
1307, 1350, 1458, 1475, 1315,
BUYER/VENDEE/CREDITOR/OBLIGE 1191, 1308, 1458 R.A. 386
E:
BOPP - Buyer obliged pay LS-LEGAL SOURCE pp. 2 and 3.
price certain in money or its Suarez, C. B. (2000) The law on
equivalent sales, agency, pledge and
mortgages for business students.
(2) LD/E- LEGAL 2000 ed. Manila : GIC Enterprises.
_______________________________________ (6)Why is a contract of sale
_______________________________________ nominate?
_______________________________________
_______________________________________ (1) LA-LEGAL ANSWER/S:
_______________________________________ Nominate because there is a name
_______________________________________ provided for in the Civil Code
_______________________________________ ("Sale").
_______________________________________
_______________________________________ (2) LD/E- LEGAL
(3) LB/R- LEGAL BASIS/LS-LEGAL Innominate contracts shall be
SOURCE Article 1458 R.A. 386 regulated by the stipulations of
the parties, by the provisions of
Lesson 2 9 GQs Titles I and II of this Book, by the
CHARACTERISTICS rules governing the most
analogous nominate contracts,
(5)What are the characteristics and by the customs of the place.
of a contract of sale?
(1) LA-LEGAL ANSWER/S: 1307 of R.A. 386
Nominate
Onerous LS-LEGAL SOURCE page 2. Suarez,
Consensual C. B. (2000) The law on sales,
Cumulative agency, pledge and mortgages for
Reciprocal/Bilateral/SINALAGMATI business students. 2000 ed.
CO Manila : GIC Enterprises.
Principal
(7)Why is a contract of sale
(2) LD/E- LEGAL onerous?
_______________________________________ (1) LA-LEGAL ANSWER/S:
_______________________________________ Onerous, because valuable
_______________________________________ consideration is given.
_______________________________________
2|Page
(2) LD/E- LEGAL (1) LA-LEGAL ANSWER/S:
DISCUSSIONS/EXPLANATIONS Cumulative, because the values
In onerous contracts the cause is exchanged are almost equivalent
understood to be, for each to each other. More or less of
contracting party, the prestation equal value
or promise of a thing or service by
the other. (2) LD/E- LEGAL
(3) LB/R- LEGAL BASIS/ Article By the contract of sale one of the
1350, 1458, 1475 of R.A. 386 contracting parties obligates
himself to transfer the ownership
LS-LEGAL SOURCE page 2. Suarez, of and to deliver a determinate
C. B. (2000) The law on sales, thing, and the other to pay
agency, pledge and mortgages for therefor a price certain in money
business students. 2000 ed. or its equivalent.
Manila : GIC Enterprises.
(8)Why is a contract of sale 1458 of R.A 386
consensual?
LS-LEGAL SOURCE page 1. Suarez,
(1) LA-LEGAL ANSWER/S: C. B. (2000) The law on sales,
Consensual, because it is agency, pledge and mortgages for
perfected by mere consent. Unlike business students. 2000 ed.
in real contract, example pledge Manila : GIC Enterprises.
or deposit, their perfection is
upon delivery. (10) Why is a contract of sale
bilateral?
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS (1) LA-LEGAL ANSWER/S:
Contracts are perfected by mere Bilateral and reciprocal, because
consent, and from that moment both parties are bound by
the parties are bound not only to obligation dependent upon each
the fulfillment of what has been other.
expressly stipulated but also to all
the consequences which, (2) LD/E- LEGAL
according to their nature, may be DISCUSSIONS/EXPLANATIONS
in keeping with good faith, usage The contract of sale is perfected
and law. (1258) at the moment there is a meeting
of minds upon the thing which is
(3) LB/R- LEGAL BASIS/ Article the object of the contract and
1315, 1475 of R.A. 386 upon the price.
LS-LEGAL SOURCE page 1. Suarez, From that moment, the parties

C. B. (2000) The law on sales, may reciprocally demand
agency, pledge and mortgages for performance, subject to the
business students. 2000 ed. provisions of the law governing
Manila : GIC Enterprises. the form of contracts. (1450a)
(9)Why is a contract of sale (3) LB/R- LEGAL BASIS/ Article

cumulative? 1475, 1191, 1308 of R.A. 386
3|Page
The contract of sale is perfected
LS-LEGAL SOURCE page 1. Suarez, at the moment there is a meeting
C. B. (2005) The law on sales, of minds upon the thing which is
agency, pledge and mortgages for the object of the contract and
business students. 2005 ed. upon the price.
Manila : GIC Enterprises.
From that moment, the parties
(11) Why is a contract of sale may reciprocally demand
reciprocal? performance, subject to the
provisions of the law governing
(1) LA-LEGAL ANSWER/S: the form of contracts. (1450a)
Bilateral and reciprocal, because
both parties are bound by (3) LB/R- LEGAL BASIS/ Article
obligation dependent upon each 1475, 1308 of R.A. 386
other.
(2) LD/E- LEGAL LS-LEGAL SOURCE page 1. Suarez,
DISCUSSIONS/EXPLANATIONS C. B. (2000) The law on sales,
The contract of sale is perfected agency, pledge and mortgages for
at the moment there is a meeting business students. 2000 ed.
of minds upon the thing which is Manila : GIC Enterprises.
the object of the contract and (13) Why is a contract of sale
upon the price. principal?
From that moment, the parties (1) LA-LEGAL ANSWER/S:

may reciprocally demand
performance, subject to the Not an accessory contract/can
provisions of the law governing stand alone/does not depend on
the form of contracts. (1450a) another contract
(3) LB/R- LEGAL BASIS/ Article (2) LD/E- LEGAL

1475, 1191, 1308 of R.A. 386 DISCUSSIONS/EXPLANATIONS
_______________________________________
LS-LEGAL SOURCE page 1. Suarez, _______________________________________
C. B. (2000) The law on sales, _______________________________________
agency, pledge and mortgages for _______________________________________
business students. 2000 ed. _______________________________________
Manila : GIC Enterprises. _______________________________________
_______________________________________
(12) Why is a contract of sale _______________________________________
sinalagmatico? _______________________________________
(1) LA-LEGAL ANSWER/S: (3) LB/R- LEGAL BASIS/LS-LEGAL

The contract must bind both SOURCE
contracting parties; its validity or page 2. Suarez, C. B. (2000) The
compliance cannot be left to the law on sales, agency, pledge
will of one of them. and mortgages for business
students. 2000 ed. Manila : GIC
(2) LD/E- LEGAL Enterprises.
Lesson 3-8 GQs
4|Page
STAGES principles, and jurisprudence.
2016 ed. Coaching For Results
(14) What are the stages of a Publishing.
contract of sale?
(16) When is a contract of
(1) LA-LEGAL ANSWER/S: sale considered to be in the
preparation stage?
Preparation
Perfection/Birth (1) LA-LEGAL ANSWER/S:
Consummation/Death When negotiation is in progress -
offer and counter-offer.
(2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS (2) LD/E- LEGAL
_______________________________________ DISCUSSIONS/EXPLANATIONS
_______________________________________ Negotiation covers the period
_______________________________________ from the time the prospective
_______________________________________ contracting parties indicate
_______________________________________ interest in the contract to the
_______________________________________ time the contract is concluded
_______________________________________ (perfected).
_______________________________________
_______________________________________ (3) LB/R- LEGAL BASIS/LS-LEGAL
SOURCE page 432. Domingo, A. D.
(3) LB/R- LEGAL BASIS/LS-LEGAL (2016) Obligations & contracts
SOURCE laws, principles, and
page 3. Suarez, C. B. (2000) The jurisprudence. 2016 ed. Coaching
law on sales, agency, pledge and For Results Publishing.
2000 ed. Manila : GIC Enterprises. (17) What is perfection vis--
vis a contract of sale?
(15) What is the meaning of
preparation stage? (1) LA-LEGAL ANSWER/S:
Perfection is the meeting of
(1) LA-LEGAL ANSWER/S: minds, or the birth of contract.
Preparation stage or negotiation.
Negotiation is formally initiated (2) LD/E- LEGAL
by an offer. DISCUSSIONS/EXPLANATIONS
_______________________________________
(2) LD/E- LEGAL _______________________________________
DISCUSSIONS/EXPLANATIONS _______________________________________
Begins from the time the _______________________________________
prospective contracting parties _______________________________________
manifest their interest in contract _______________________________________
and ends at the moment of _______________________________________
agreement of the parties. _______________________________________
_______________________________________
SOURCE (3) LB/R- LEGAL BASIS/ LS-LEGAL
page 432. Domingo, A. D. (2016) SOURCE page 3. Suarez, C. B.
Obligations & contracts laws, (2005) The law on sales, agency,
5|Page
pledge and mortgages for _______________________________________
business students. 2005 ed. _______________________________________
Manila : GIC Enterprises. _______________________________________
_______________________________________
(18) When is a contract of _______________________________________
sale perfected? _______________________________________
_______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
The contract of sale is perfected _______________________________________
at the moment there is a meeting
of minds upon the thing which is (3) LB/R- LEGAL BASIS/ LS-LEGAL
the object of the contract and SOURCE
upon the price. Article 1475 R.A. 386
(2) LD/E- LEGAL (20) What is the meaning of

DISCUSSIONS/EXPLANATIONS consummation stage?
Sale is a consensual contract,
perfected only by mere consent. (1) LA-LEGAL ANSWER/S:
The delivery of the thing and Consummation stage is the death
repayment of the price is not of contract.
essential for its perfection. What
is required is only the meeting of (2) LD/E- LEGAL
minds of both parties with respect DISCUSSIONS/EXPLANATIONS
to the object and cause which will _______________________________________
constitute the contract. _______________________________________
_______________________________________
(3) LB/R- LEGAL BASIS/ Article _______________________________________
1475 R.A. 386 _______________________________________
_______________________________________
LS-LEGAL SOURCE _______________________________________
pp. 3 and 24. Suarez, C. B. (2000) _______________________________________
The law on sales, agency, pledge _______________________________________
and mortgages for business
students. 2000 ed. Manila : GIC (3) LB/R- LEGAL BASIS/ LS-LEGAL
Enterprises. SOURCE
page 3. Suarez, C. B. (2000) The
(19) When shall parties to a law on sales, agency, pledge and
contract of sale demand mortgages for business students.
performance thereof? 2000 ed. Manila : GIC Enterprises.
(1) LA-LEGAL ANSWER/S: (21) When is a contract of

From that moment, the parties sale considered to be in the
may reciprocally demand consummation stage?
performance, subject to the
provisions of the law governing (1) LA-LEGAL ANSWER/S:
the form of contracts. (1450a) When the object is delivered and
the price is paid, this is the death
(2) LD/E- LEGAL of contract.
(2) LD/E- LEGAL
6|Page
DISCUSSIONS/EXPLANATIONS page 41. Suarez, C. B. (2000) The
The stage of consummation law on sales, agency, pledge and
begins when the parties perform mortgages for business students.
their respective undertakings 2000 ed. Manila : GIC Enterprises.
under the contract culminating in
the extinguishment thereof. (23) In what form shall a contract
of sale be entered into?
(3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE (1) LA-LEGAL ANSWER/S:
page 3. Suarez, C. B. (2000) The A contract of sale may be entered
law on sales, agency, pledge into in any form. It may be made
and mortgages for business orally or in writing, as partly
students. 2000 ed. Manila : GIC orally and partly in writing. or
Enterprises. may be inferred from the conduct
page 433. Domingo, A. D. (2016) of the parties.
Obligations & contracts laws,
principles, and jurisprudence. (2) LD/E- LEGAL
2016 ed. Coaching For Results DISCUSSIONS/EXPLANATIONS
Publishing. Subject to the provisions of the
Statute of Frauds and of any other
Lesson 4-4 GQs applicable statute, a contract of
FORM sale may be made in writing, or by
word of mouth, or partly in
(22) What is form vis--vis a writing and partly by word of
contract of sale? mouth, or may be inferred from
the conduct of the parties. (n)
Form - orally or in writing, by (3) LB/R- LEGAL BASIS/ Article
word of mouth, as partly orally 1483 R.A. 386
and partly in writing, or may be
inferred from the conduct of the LS-LEGAL SOURCE
parties. page 41. Suarez, C. B. (2000) The
law on sales, agency, pledge and
(2) LD/E- LEGAL mortgages for business students.
DISCUSSIONS/EXPLANATIONS 2000 ed. Manila : GIC Enterprises.
_______________________________________
_______________________________________ (24) What is the Statute of
_______________________________________ Frauds?
_______________________________________
_______________________________________ (1) LA-LEGAL ANSWER/S:
_______________________________________ Statute of Frauds is descriptive of
_______________________________________ statutes which require certain
_______________________________________ classes of contracts to be in
_______________________________________ writing.

1483 R.A. 386 DISCUSSIONS/EXPLANATIONS
The statute does not deprive the
LS-LEGAL SOURCE parties of the right to contract
with respect to the matters
7|Page
therein involved, but merely (1) LA-LEGAL ANSWER/S:
regulates the formalities of the In contract to sell, the title to the
contract necessary to render it goods does not pass to the buyer
enforceable. until some future time and
oftentimes upon payment of the
(3) LB/R- LEGAL BASIS/ Rosencor price.
Development Corporation vs.
Court of Appeals (2) LD/E- LEGAL
LS-LEGAL SOURCE Payment in full of the price
page 589. Domingo, A. D. (2016) positive suspensive condition
Obligations & contracts laws, (obligation to deliver and transfer
principles, and jurisprudence. ownership arises); if not paid in
2016 ed. Coaching For Results full, obligation to deliver/transfer
Publishing. ownership is suspended/ not yet
binding and effective.
(25) Which contracts of sale are
required to be under the (3) LB/R- LEGAL BASIS/LS-LEGAL
Statute of Frauds? SOURCE
(1) LA-LEGAL ANSWER/S: law on sales, agency, pledge and
Sale of real property or of an mortgages for business students.
interest 2000 ed. Manila : GIC Enterprises.
Sale of movables
(27) Who are the parties in a
(2) LD/E- LEGAL contract to sell?
1. Sale of real property or of an (1) LA-LEGAL ANSWER/S:
interest therein must be in SELLER/VENDOR/DEBTOR/OBLIGO
writing, otherwise the sale is R
unenforceable. BUYER/VENDEE/CREDITOR/OBLIGE
2. Sale of movables - price is 500 E
or more; it must be in writing
otherwise, the sale is (2) LD/E- LEGAL
unenforceable. DISCUSSIONS/EXPLANATIONS
_______________________________________
(3) LB/R- LEGAL BASIS/LS-LEGAL _______________________________________
SOURCE _______________________________________
page 41. Suarez, C. B. (2000) The _______________________________________
law on sales, agency, pledge _______________________________________
and mortgages for business _______________________________________
students. 2000 ed. Manila : GIC _______________________________________
Enterprises. _______________________________________
_______________________________________
LESSON 5-7 GQs
CONTRACT OF SALE VS CONTRACT (3) LB/R- LEGAL BASIS/LS-LEGAL
TO SELL SOURCE Article 1458 R.A. 386
(26) Define contract to sell? (28) Can contract to sell

result to contract of sale?
8|Page
(1) LA-LEGAL ANSWER/S: 2000 ed. Manila : GIC Enterprises.
No.
(30) What is Policitacion?
(2) LD/E- LEGAL
In contract of sale, ownership Not accepted by the offeree: A
passes to the buyer upon unilateral promise to sell or to
delivery; while in contract to sell, buy if not accepted by the offeree
the title to the goods does not does not produce any legal effect,
pass to the buyer until some this is known as policitacion.
future time and oftentimes upon
payment of the price. (2) LD/E- LEGAL
(3) LB/R- LEGAL BASIS/LS-LEGAL An accepted unilateral promise to
SOURCE buy or to sell a determinate thing
page 5. Suarez, C. B. (2000) The for a price certain is binding upon
law on sales, agency, pledge and the promisor if the promise is
mortgages for business students. supported by a consideration
2000 ed. Manila : GIC Enterprises. distinct from the price.
(29) Distinguish contract of (3) LB/R- LEGAL BASIS/ Article

sale from contract to sell 1479 (2nd par.) R.A. 386
(1) LA-LEGAL ANSWER/S: LS-LEGAL SOURCE

In contract of sale, ownership page 31. Suarez, C. B. (2000) The
passes to the buyer upon law on sales, agency, pledge and
delivery; while in contract to sell, mortgages for business students.
the title to the goods does not 2000 ed. Manila : GIC Enterprises.
pass to the buyer until some
future time and oftentimes upon (31) What are the effects of
payment of the price. Policitacion?

DISCUSSIONS/EXPLANATIONS Policitacion produces no juridical
_______________________________________ effect, and creates no legal bond.
_______________________________________
_______________________________________ (2) LD/E- LEGAL
_______________________________________ Not accepted by the offeree: A
_______________________________________ unilateral promise to sell or to
_______________________________________ buy if not accepted by the offeree
_______________________________________ does not produce any legal effect,
_______________________________________ this is known as policitacion.
(3) LB/R- LEGAL BASIS/LS-LEGAL (3) LB/R- LEGAL BASIS/LS-LEGAL

SOURCE SOURCE
page 5. Suarez, C. B. (2000) The page 31. Suarez, C. B. (2000) The
law on sales, agency, pledge and law on sales, agency, pledge and
9|Page
mortgages for business students. some service or to do something
2000 ed. Manila : GIC Enterprises. in representation or on behalf of
another, with the consent or
(32) Distinguish between authority of the latter. (1709a)
earnest money and option
money (2) LD/E- LEGAL
(1) LA-LEGAL ANSWER/S: Agency is the relationship which
Whenever earnest money results from the manifestation of
(arras/downpayment) is given in a consent by one person to another
contract of sale, it shall be that the other shall act on his
considered as part of the price behalf and subject to his control,
and as proof of the perfection of and consented by the other so to
the contract while option money act.
(reservation fee-non refundable)
is given to bind the offer in a (3) LB/R- LEGAL BASIS/ Article
unilateral promise to sell or buy, 1868 R.A. 386
separate and distinct from the
purchase price. LS-LEGAL SOURCE
(2) LD/E- LEGAL law on sales, agency, pledge and
DISCUSSIONS/EXPLANATIONS mortgages for business students.
Earnest money when given by 2000 ed. Manila : GIC Enterprises.
buyer, the latter is bound to buy
and pay balance and the option (34) Who are the parties in a
money when given by the would- contact of agency?
be buyer, the latter is not
required to buy. OPTION MONEY (1) LA-LEGAL ANSWER/S:
MAY BECOME EARNEST MONEY IF Principal/employer and
PARTIES AGREE. agent/attorney-in-fact/proxy.

1479 (2nd par.) and Article 1483 DISCUSSIONS/EXPLANATIONS
R.A. 386 Principal is the person whom the
agent represents and from whom
LS-LEGAL SOURCE he derives his authority; the
page 41. Suarez, C. B. (2000) The person represented. Agent is the
law on sales, agency, pledge and person who acts for and
mortgages for business students. represents another; he is the
2000 ed. Manila : GIC Enterprises. person acting in a representative
capacity.
LESSON 6-5 GQs
CONTRACT OF SALE VS AGENCY (3) LB/R- LEGAL BASIS/ Article
TO SELL 1868 R.A. 386
(33) Legally define a contract LS-LEGAL SOURCE

of agency page 248. Suarez, C. B. (2000) The
(1) LA-LEGAL ANSWER/S: law on sales, agency, pledge and
By the contract of agency a mortgages for business students.
person binds himself to render 2000 ed. Manila : GIC Enterprises.
10 | P a g e
(35) Legally define Agency to (2) LD/E- LEGAL
Sell DISCUSSIONS/EXPLANATIONS
_______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
In agency to sell, the ownership of _______________________________________
the goods is not transferred to _______________________________________
the agent. Ownership is retained _______________________________________
by the owner even if the goods _______________________________________
are delivered to the agent. _______________________________________
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ (3) LB/R- LEGAL BASIS/ LS-LEGAL
_______________________________________ SOURCE
_______________________________________ page 14. Suarez, C. B. (2000) The
_______________________________________ law on sales, agency, pledge and
_______________________________________ mortgages for business students.
_______________________________________ 2000 ed. Manila : GIC Enterprises.
_______________________________________
_______________________________________ (37) If a contract contains
_______________________________________ provisions characteristic of
both the contract of sale
(3) LB/R- LEGAL BASIS/ LS-LEGAL and of the contract of
SOURCE agency to sell, how shall the
pp. 14 and 251. Suarez, C. B. contract be construed?
(2000) The law on sales, agency,
pledge and mortgages for (1) LA-LEGAL ANSWER/S:
business students. 2000 ed. In construing a contract
Manila : GIC Enterprises. containing provisions
characteristic of both the contract
(36) Distinguish Sale from an of sale and the contract of agency
Agency to Sell to sell, the essential clauses of
the whole instrument shall be
(1) LA-LEGAL ANSWER/S: considered.
In sale, the buyer becomes the
owner upon delivery, pays the (2) LD/E- LEGAL
price directly to the owner; while DISCUSSIONS/EXPLANATIONS
in agency to sell, ownership is _______________________________________
retained by the owner even if the _______________________________________
goods are delivered to the agent _______________________________________
and the buyer pays the agent who _______________________________________
transmits the money to his _______________________________________
principal. In sale, the seller _______________________________________
warrants rhe object of the sale, _______________________________________
while in agency to sell, the agent _______________________________________
is not personally liable as long as _______________________________________
he acts within the scope of his
authority and in the name of (3) LB/R- LEGAL BASIS/ LS-LEGAL
principal. SOURCE
11 | P a g e
Article 1466 R.A. 386
(2) LD/E- LEGAL
LESSON 7-3 GQs DISCUSSIONS/EXPLANATIONS
CONTRACT OF SALE VS CONTRACT _______________________________________
FOR A PIECE OF WORK _______________________________________
_______________________________________
(38) Legally define contract for a _______________________________________
piece of work _______________________________________
_______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
A contract for the delivery at a _______________________________________
certain price of an article which _______________________________________
the vendor in the ordinary course
of his business manufactures or (3) LB/R- LEGAL BASIS/ LS-LEGAL
procures for the general market, SOURCE
whether the same is on hand at Article 1467 R.A. 386
the time or not, is a contract of
sale, but if the goods are to be (40) Distinguish a contract of sale
manufactured specially for the from a contract for piece of
customer and upon his special work
order, and not for the general
market, it is a contract for a piece (1) LA-LEGAL ANSWER/S:
of work. In contract of sale:
Thing transferred is
(2) LD/E- LEGAL existing/has potential
DISCUSSIONS/EXPLANATIONS existence and subject of
If the goods are to be sale to other persons;
manufactured especially for the Specific order to produce or
customer and upon his special manufacture the thing
order, and not for the general subject of sale may not have
market, it is a contract for a peice been given;
of work. Risk of loss is borne by
buyer (Arts. 1480,1538,1189
(3) LB/R- LEGAL BASIS/ Article CCP);
1467 R.A. 386 Within the Statute of Frauds
subject to the Law on Form (Art.
LS-LEGAL SOURCE page 15. 1403-2 CCP.
Suarez, C. B. (2000) The law on
sales, agency, pledge and In a contract for a piece of work:
mortgages for business students. Thing transferred is one not
2000 ed. Manila : GIC Enterprises. yet in existence and not
subject of sale to other
(39) Who are the parties in a persons;
contract for a piece of work? Specific order to produce or
manufacture must be given
(1) LA-LEGAL ANSWER/S: for thing to exist;
SELLER/VENDOR/DEBTOR/OBLIGO Risk of loss is borne by the
R worker/contractor (Arts.
BUYER/VENDEE/CREDITOR/OBLIGE 1717,1718 CCP);
E
12 | P a g e
Not within the Statute of _______________________________________
Frauds _______________________________________
(2) LD/E- LEGAL (3) LB/R- LEGAL BASIS/ Article

DISCUSSIONS/EXPLANATIONS 1468 R.A. 386
_______________________________________
_______________________________________ LS-LEGAL SOURCE page 16.
_______________________________________ Suarez, C. B. (2000) The law on
_______________________________________ sales, agency, pledge and
_______________________________________ mortgages for business students.
_______________________________________ 2000 ed. Manila : GIC Enterprises.
_______________________________________
_______________________________________ (42) Who are the parties in a
_______________________________________ contract of barter or exchange?
(3) LB/R- LEGAL BASIS/ LS-LEGAL (1) LA-LEGAL ANSWER/S:

SOURCE SELLER/VENDOR/DEBTOR/OBLIGO
Article 1467, 1480,1538,1189, R
1403-2, 1717,1718 R.A. 386 BUYER/VENDEE/CREDITOR/OBLIGE
E
LESSON 8-6 GQs
CONTRACT OF SALE VS BARTER (2) LD/E- LEGAL
OR EXCHANGE DISCUSSIONS/EXPLANATIONS
_______________________________________
(41) Legally define barter or _______________________________________
exchange _______________________________________
_______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
If the consideration of the _______________________________________
contract consists partly in money, _______________________________________
and partly in another thing, the _______________________________________
transaction shall be characterized _______________________________________
by the manifest intention of the
parties. If such intention does not (3) LB/R- LEGAL BASIS/ LS-LEGAL
clearly appear, it shall be SOURCE
considered a barter if the value of Article 1468 R.A. 386
the thing given as a part of the
consideration exceeds the amount (43) What is the object in a
of the money or its equivalent; contract of barter or exchange?
otherwise, it is a sale. (1446a)
(2) LD/E- LEGAL Determinate thing.
_______________________________________ (2) LD/E- LEGAL
_______________________________________ A thing is determinate when it is
_______________________________________ particularly designated or
_______________________________________ physical segregated from all
_______________________________________ others of the same class.
_______________________________________
13 | P a g e
(3) LB/R- LEGAL BASIS/ Article mortgages for business students.
1460 R.A. 386 2000 ed. Manila : GIC Enterprises.
LS-LEGAL SOURCE page 7. Suarez, (45) What do you mean by manifest

C. B. (2000) The law on sales, intention of the parties?
agency, pledge and mortgages for
business students. 2000 ed. (1) LA-LEGAL ANSWER/S:
Manila : GIC Enterprises. Meeting of minds of the parties.
(44) What are the rules anent sale (2) LD/E- LEGAL
vis--vis barter? DISCUSSIONS/EXPLANATIONS
The intention of the parties will
(1) LA-LEGAL ANSWER/S: control the situation. Thus, the
If the consideration of the contract is a sale if the parties
contract consists partly in money, intended it to be a sale even if the
and partly in another thing, the value of the thing is more than
transaction shall be characterized the monetary consideration.
by the manifest intention of the Conversely, it is a barter if the
parties. If such intention does not parties intended it to be a barter
clearly appear, it shall be even if the monetary
considered a barter if the value of consideration is more than the
the thing given as a part of the value of the thing.
consideration exceeds the amount (3) LB/R- LEGAL BASIS/ Article
of the money or its equivalent; 1305 R.A. 386
otherwise, it is a sale. (1446a)
LS-LEGAL SOURCE page 16.
(2) LD/E- LEGAL Suarez, C. B. (2000) The law on
DISCUSSIONS/EXPLANATIONS sales, agency, pledge and
1. The intention of the parties will mortgages for business students.
control the situation. 2000 ed. Manila : GIC Enterprises.
2. If the intention does not appear
a. It is barter, if the value of (46) How do you characterize the
the thing is more than the contract where the consideration
monetary consideration. consists partly in money and
b. It is a sale, if the partly in another thing?
monetary consideration is more
than the value of the thing. (1) LA-LEGAL ANSWER/S:
c. If the monetary If the consideration of the
consideration and the value of the contract consists partly in money,
thing are the same, the majority and partly in another thing, the
view maintained that the contract transaction shall be characterized
is a contract of sale. by the manifest intention of the
parties. If such intention does not
(3) LB/R- LEGAL BASIS/ Article clearly appear, it shall be
1468 R.A. 386 considered a barter if the value of
the thing given as a part of the
LS-LEGAL SOURCE pp. 18 and 17. consideration exceeds the amount
Suarez, C. B. (2000) The law on of the money or its equivalent;
sales, agency, pledge and otherwise, it is a sale. (1446a)
14 | P a g e
(2) LD/E- LEGAL _______________________________________
1. The intention of the parties will
control the situation. (3) LB/R- LEGAL BASIS/ LS-LEGAL
2. If the intention does not appear SOURCE page 2. Suarez, C. B.
a. It is barter, if the value of (2000) The law on sales, agency,
the thing is more than the pledge and mortgages for
monetary consideration. business
b. It is a sale, if the
monetary consideration is more (48) What are the essential
than the value of the thing. elements of a contract of sale?
c. If the monetary
consideration and the value of the (1) LA-LEGAL ANSWER/S:
thing are the same, the majority 1. Consent
view maintained that the contract 2. Object
is a contract of sale. 3. Price

1468 R.A. 386 DISCUSSIONS/EXPLANATIONS
1. Consent of the contracting
LS-LEGAL SOURCE pp. 18 and 17. party with respect to the transfer
Suarez, C. B. (2000) The law on of ownership and payment of
sales, agency, pledge and price.
mortgages for business students. 2. Object of the contract which
2000 ed. Manila : GIC Enterprises. should be determinate
3. Price which should be certain in
Lesson 9-8 GQs money or its equivalent. Be it
ELEMENTS/REQUISITES noted that the price need not to
be in money.
(47) What are the
elements/requisites of a valid (3) LB/R- LEGAL BASIS/
contract of sale? Article1475/1319/1320-26,1459-
1464, 1469-1474 R.A. 386
1. Essential Elements LS-LEGAL SOURCE
a. Consent page 2. Suarez, C. B. (2000) The
b. Object law on sales, agency, pledge and
c. Price mortgages for business students.
2. Natural Elements 2000 ed. Manila : GIC Enterprises.
3. Accidental Elements
(2) LD/E- LEGAL essential elements?
_______________________________________ (1) LA-LEGAL ANSWER/S:
_______________________________________ Essential elements are those
_______________________________________ without which there can be no
_______________________________________ contract.
_______________________________________
_______________________________________ (2) LD/E- LEGAL
15 | P a g e
_______________________________________ agency, pledge and mortgages for
_______________________________________ business students. 2000 ed.
_______________________________________ Manila : GIC Enterprises.
_______________________________________
_______________________________________ (51) What is meant by
_______________________________________ meeting of the offer and
_______________________________________ acceptance?
_______________________________________
_______________________________________ (1) LA-LEGAL ANSWER/S:
The offer must be certain and the
(3) LB/R- LEGAL BASIS/ LS-LEGAL acceptance absolute. A qualified
SOURCE page 447. Domingo, A. D. acceptance constitutes a counter-
(2016) Obligations & contracts offer.
laws, principles, and
jurisprudence. 2016 ed. Coaching (2) LD/E- LEGAL
For Results Publishing. DISCUSSIONS/EXPLANATIONS
Consent is manifested by
(50) What is consent vis--vis the meeting of the offer and the
a contract of sale? acceptance upon the thing and
the cause which are to constitute
(1) LA-LEGAL ANSWER/S: the contract. The offer must be
Consent is manifested by certain and the acceptance
the meeting of the offer and the absolute. A qualified acceptance
acceptance upon the thing and constitutes a counter-offer.
the cause which are to constitute Acceptance made by letter
the contract. The offer must be or telegram does not bind the
certain and the acceptance offerer except from the time it
absolute. A qualified acceptance came to his knowledge. The
constitutes a counter-offer. contract, in such a case, is
Acceptance made by letter presumed to have been entered
or telegram does not bind the into in the place where the offer
offerer except from the time it was made. (1262a)
came to his knowledge. The
contract, in such a case, is (3) LB/R- LEGAL BASIS/ LS-LEGAL
presumed to have been entered SOURCE Article 1319 R.A. 386
into in the place where the offer
was made. (1262a) (52) When is offer certain?

DISCUSSIONS/EXPLANATIONS For an offer to be certain, a
Consent of the contracting party contract must come into existence
with respect to the transfer of by the mere acceptance of the
ownership and the payment of the offeree without any further act on
price. the offeror's part. The offer must
be definite, complete and
(3) LB/R- LEGAL BASIS/ Article intentional.
1319 R.A. 386
(2) LD/E- LEGAL
LS-LEGAL SOURCE page 2. Suarez, DISCUSSIONS/EXPLANATIONS
C. B. (2000) The law on sales,
16 | P a g e
In Spouses Paderes v. Court of (54) What is meant by
Appeals, the Court held that, counter-offer?
"There is an 'offer' in the context
of Article 1319 only if the contract (1) LA-LEGAL ANSWER/S:
can come into existence by the This refers to qualified
mere acceptance of the offeree, acceptance.
without any further act o the part
of the offeror. Hence, the 'offeree' (2) LD/E- LEGAL
must be definite, complete and DISCUSSIONS/EXPLANATIONS
intentional". Consent is manifested by the
meeting of the offer and the
(3) LB/R- LEGAL BASIS/ Spouses acceptance upon the thing and
Paderes v. Court of Appeals / the cause which are to constitute
Article 1319 R.A. 386 the contract. The offer must be
certain and the acceptance
LS-LEGAL SOURCE page 452. absolute. A qualified acceptance
Domingo, A. D. (2016) Obligations constitutes a counter-offer.
& contracts laws, principles, and
jurisprudence. 2016 ed. Coaching (3) LB/R- LEGAL BASIS/ Article
For Results Publishing. 1319 (1st par) R.A. 386
(53) When is acceptance LS-LEGAL SOURCE page 453.

absolute? Domingo, A. D. (2016) Obligations
& contracts laws, principles, and
(1) LA-LEGAL ANSWER/S: jurisprudence. 2016 ed. Coaching
Not subject to any condition For Results Publishing.
whatsoever.
Lesson 9A-16 GQs
(2) LD/E- LEGAL DETERMINATE THING/OBJECT OF
DISCUSSIONS/EXPLANATIONS SALE
_______________________________________
_______________________________________ (55) What is object vis--vis a
_______________________________________ contract of sale?
_______________________________________
_______________________________________ (1) LA-LEGAL ANSWER/S:
_______________________________________ Licit, Determinate, Future goods,
_______________________________________ Things having potential
_______________________________________ existence /Emptio rei sperati,
_______________________________________ Hope (sale of)/Emptio spei, Mass
(sale of) Existing goods,
(3) LB/R- LEGAL BASIS/ Article Resolutory Condition (subject to)
1319 R.A. 386
(2) LD/E- LEGAL
LS-LEGAL SOURCE page 452. DISCUSSIONS/EXPLANATIONS
Domingo, A. D. (2016) Obligations _______________________________________
& contracts laws, principles, and _______________________________________
jurisprudence. 2016 ed. Coaching _______________________________________
For Results Publishing. _______________________________________
_______________________________________
_______________________________________
17 | P a g e
_______________________________________ (57) Which things can be
_______________________________________ valid objects of a contract of
_______________________________________ sale?

SOURCE Arts. 1459/1347/1409, 1. All things which are not outside
Arts. 1460 1st par/1460 2nd par, the commerce of men, including
Art. 1462 2nd part, Art. 1461 1st future things, may be the object
par, Art. 1461 2nd par, Arts. of a contract. 2. All rights which
1464/1480 2nd & 3rd pars, Art. 1462 are not intransmissible may also
1st part be the object of contracts.
Art. 1465 3. All services which are not
contrary to law, morals, good
(56) What may be the object customs, public order or public
of a contract of sale? policy may likewise be the object
of a contract.
1. Things (2) LD/E- LEGAL
2. Rights DISCUSSIONS/EXPLANATIONS
3. Services _______________________________________
_______________________________________
(2) LD/E- LEGAL _______________________________________
All things which are not _______________________________________
outside the commerce of men, _______________________________________
including future things, may be _______________________________________
the object of a contract. All _______________________________________
rights which are not _______________________________________
intransmissible may also be the
object of contracts. (3) LB/R- LEGAL BASIS/ LS-LEGAL
No contract may be entered SOURCE Article 1347 R.A. 386
into upon future inheritance
except in cases expressly (58) Which rights cannot be
authorized by law. objects of contract of sale?
All services which are not
contrary to law, morals, good (1) LA-LEGAL ANSWER/S:
customs, public order or public All rights which are
policy may likewise be the object intransmissible.
of a contract. (1271a)
(2) LD/E- LEGAL
(3) LB/R- LEGAL BASIS/ Article DISCUSSIONS/EXPLANATIONS
1347 R.A. 386 _______________________________________
_______________________________________
LS-LEGAL SOURCE page 486. _______________________________________
Domingo, A. D. (2016) Obligations _______________________________________
& contracts laws, principles, and _______________________________________
jurisprudence. 2016 ed. Coaching _______________________________________
For Results Publishing. _______________________________________
_______________________________________
_______________________________________
18 | P a g e
jurisprudence. 2016 ed. Coaching
(3) LB/R- LEGAL BASIS/ LS-LEGAL For Results Publishing.
SOURCE Article 1347 R.A. 386
(61) Is it essential that the
(59) Can service be a valid thing object of a contract of sale
object of contract of sale? be always determinate?
(1) LA-LEGAL ANSWER/S: (1) LA-LEGAL ANSWER/S:

Yes. The requisite that a thing be
determinate is satisfied if at the
(2) LD/E- LEGAL time the contract is entered into,
DISCUSSIONS/EXPLANATIONS the thing is capable of being
All services which are not contrary made determinate without the
to law, morals, good customs, necessity of a new or further
public order or public policy may agreement between the parties.
likewise be the object of a
contract. (2) LD/E- LEGAL
(3) LB/R- LEGAL BASIS/ LS-LEGAL The object must be determinate
SOURCE Article 1347 (3rd par.) or specific otherwise there is no
R.A. 386 sale. This requirement is met if t
the time of perfection the object
(60) When is a thing of sale is capable of being made
considered determinate? determinate ot it can be
ascertained without the need of
(1) LA-LEGAL ANSWER/S: entering into new agreement.
A thing is determinate when it is
particularly designated and/or (3) LB/R- LEGAL BASIS/ Article
physically segregated from all 1460 (2nd par) R.A. 386
others of the same class.
LS-LEGAL SOURCE page 7. Suarez,
(2) LD/E- LEGAL C. B. (2000) The law on sales,
DISCUSSIONS/EXPLANATIONS agency, pledge and mortgages for
_______________________________________ business students. 2000 ed.
_______________________________________ Manila : GIC Enterprises.
_______________________________________
_______________________________________ (62) Can future things be
_______________________________________ valid object of a contract of
_______________________________________ sale?
_______________________________________
_______________________________________ (1) LA-LEGAL ANSWER/S:
_______________________________________ Things having a potential
existence may be the object of the
(3) LB/R- LEGAL BASIS/ Article contract of sale.
1460 (1st par) R.A. 386
(2) LD/E- LEGAL
LS-LEGAL SOURCE page 489. DISCUSSIONS/EXPLANATIONS
Domingo, A. D. (2016) Obligations Things having potential
& contracts laws, principles, and existence /Emptio rei sperati, the
validity of which shall depend
19 | P a g e
upon the intention of the parties LS-LEGAL SOURCE page 9. Suarez,
that if the thing does not come C. B. (2000) The law on sales,
into existence the contract is agency, pledge and mortgages for
without effect and as such there is business students. 2000 ed.
no obligation to pay the price. Manila : GIC Enterprises.
(3) LB/R- LEGAL BASIS/ Article (64) Distinguish between a sale of

1461 (1st par) R.A. 386 a mere hope or expectancy
and sale of a vain hope or
LS-LEGAL SOURCE page 9. Suarez, expectancy?
C. B. (2000) The law on sales,
agency, pledge and mortgages for (1) LA-LEGAL ANSWER/S:
business students. 2000 ed. The efficacy of the sale of a mere
Manila : GIC Enterprises. hope or expectancy is deemed
subject to the condition that the
(63) What is the Latin term thing will come into existence.
for such object? The sale of a vain hope or
expectancy is void.
Emptio rei sperati (2) LD/E- LEGAL
(2) LD/E- LEGAL _______________________________________
Things having potential existence _______________________________________
_______________________________________
(3) LB/R- LEGAL BASIS/ LS-LEGAL _______________________________________
SOURCE _______________________________________
Article 1461 (1st par) R.A. 386 _______________________________________
_______________________________________
(64) When is a thing said to _______________________________________
have potential existence?
(1) LA-LEGAL ANSWER/S: SOURCE
The efficacy of the sale of a mere Article 1461 (2nd and 3rd par)
hope or expectancy is deemed R.A. 386
subject to the condition that the
thing will come into existence. (65) What is the Latin term
for such object?
(2) LD/E- LEGAL
This is a sale of a thing which is Emptio spei.
expected to come into existence,
the quality and quantity of which (2) LD/E- LEGAL
are unknown but not the thing DISCUSSIONS/EXPLANATIONS
itself will definitely come into Sale of hope or expectancy.
existence.
(3) LB/R- LEGAL BASIS/ Article 1461 (2nd par) R.A. 386
1461 (2nd par) R.A. 386
20 | P a g e
LS-LEGAL SOURCE page 9. Suarez, (1) LA-LEGAL ANSWER/S:
C. B. (2000) The law on sales, The sole owner of a thing may sell
agency, pledge and mortgages for an undivided interest therein.
business students. 2000 ed.
Manila : GIC Enterprises. (2) LD/E- LEGAL
(66) What kind of goods _______________________________________
may be objects of a contract of _______________________________________
sale? _______________________________________
_______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
The goods which form the subject _______________________________________
of a contract of sale may be either _______________________________________
existing goods, owned or _______________________________________
possessed by the seller, or goods _______________________________________
to be manufactured, raised, or
acquired by the seller after the (3) LB/R- LEGAL BASIS/ Article
perfection of the contract of sale, 1463 R.A. 386
in this Title called "future goods."
There may be a contract of sale of LS-LEGAL SOURCE page 12.
goods, whose acquisition by the Suarez, C. B. (2000) The law on
seller depends upon a sales, agency, pledge and
contingency which may or may not mortgages for business students.
happen. 2000 ed. Manila : GIC Enterprises.
(2) LD/E- LEGAL (68) In case of fungible

DISCUSSIONS/EXPLANATIONS goods, can the seller make a
1. Present goods - goods owned valid sale of an undivided share
or possessed by the seller at the of a specific mass of goods,
time of the perfection of sale. although the seller purports to
2. Future goods - goods to be sell and the buyer to buy a
manufactured, raised. or acquired definite number, weight or
by the seller after the perfection measure of the goods in the
of sale, or whose acquisition mass, though the number,
depends upon a contingency weight or measure of the goods
which may or may not happen. in the mass in undetermined?
(3) LB/R- LEGAL BASIS/ Article (1) LA-LEGAL ANSWER/S:

1462 R.A. 386 In the case of fungible goods,
there may be a sale of an
LS-LEGAL SOURCE page 11. undivided share of a specific
Suarez, C. B. (2000) The law on mass, though the seller purports
sales, agency, pledge and to sell and the buyer to buy a
mortgages for business students. definite number, weight or
2000 ed. Manila : GIC Enterprises. measure of the goods in the mass,
and though the number, weight or
(67) If one is the sole owner of measure of the goods in the mass,
a thing, in how many ways and though the number, weight or
may he sell the thing? measure of the goods in the mass
is undetermined. By such a sale
21 | P a g e
the buyer becomes owner in _______________________________________
common of such a share of the _______________________________________
mass as the number, weight or _______________________________________
measure bought bears to the _______________________________________
number, weight or measure of the _______________________________________
mass. If the mass contains less _______________________________________
than the number, weight or
measure bought, the buyer (3) LB/R- LEGAL BASIS/ LS-LEGAL
becomes the owner of the whole SOURCE Article 1464 R.A. 386
mass and the seller is bound to
make good the deficiency from (70) Can there be a valid sale
goods of the same kind and of a thing subject to
quality, unless a contrary intent resolutory condition?
appears.
(2) LD/E- LEGAL Things subject to a resolutory
DISCUSSIONS/EXPLANATIONS condition may be the object of the
_______________________________________ contract of sale.
_______________________________________
_______________________________________ (2) LD/E- LEGAL
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
(3) LB/R- LEGAL BASIS/ Article _______________________________________
1464 R.A. 386 _______________________________________
_______________________________________
LS-LEGAL SOURCE page 12.
Suarez, C. B. (2000) The law on (3) LB/R- LEGAL BASIS/ LS-LEGAL
sales, agency, pledge and SOURCE Article 1465 R.A. 386
2000 ed. Manila : GIC Enterprises. Lesson 9B-15 GQs
PRICE
fungible goods? (71) What is price vis--vis a
contract of sale?
Fungible goods are those that can
readily be estimated and replaced (1) LA-LEGAL ANSWER/S:
according to weight, measure, Price is the sum stipulated as the
and amount. equivalent of the thing sold and
also every incident taken into
(2) LD/E- LEGAL consideration for the fixing of te
DISCUSSIONS/EXPLANATIONS price of the sale.
_______________________________________
_______________________________________ (2) LD/E- LEGAL
22 | P a g e
The fixing of the price can never (73) If the price is fixed by a
be left to the discretion of one of third person, when will such
the contracting parties. However, price be binding upon the
if the price fixed by one of the contracting parties?
parties is accepted by the other,
the sale is perfected. (1) LA-LEGAL ANSWER/S:
(3) LB/R- LEGAL BASIS/ Article If the third person or persons
1469 R.A. 386 acted in good faith.
LS-LEGAL SOURCE page 18. (2) LD/E- LEGAL

Suarez, C. B. (2000) The law on DISCUSSIONS/EXPLANATIONS
sales, agency, pledge and _______________________________________
mortgages for business students. _______________________________________
2000 ed. Manila : GIC Enterprises. _______________________________________
_______________________________________
(72) When is price _______________________________________
considered certain? _______________________________________
_______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
In order that the price may be _______________________________________
considered certain, it shall be
sufficient that it be so with (3) LB/R- LEGAL BASIS/ LS-LEGAL
reference to another thing SOURCE Article 1469 R.A. 386
certain, or that the determination
thereof be left to the judgment of (74) What is the effect if such
a special person or persons. third person is unable or
unwilling to fix the price?
DISCUSSIONS/EXPLANATIONS The contract shall be inefficacious
Instances when the price is if the third person is unable or
certain: unwilling to fix the price unless
1. When it is stipulated the parties subsequently agree
2. with reference to another thing upon the price.
(certain)
3. fixed by third persons
4. fixed by the court (2) LD/E- LEGAL
5. on definite day/particular DISCUSSIONS/EXPLANATIONS
exchange or market/fixed above If the third person designated by
or below price. the parties to fix the price refuses
or cannot fix it (without fault of
(3) LB/R- LEGAL BASIS/ Article the seller and the buyer), the
1469 (1st par) R.A. 386 contract shall become ineffective,
as if no price had been agreed
LS-LEGAL SOURCE page 18. upon unless of course, the parties
Suarez, C. B. (2000) The law on subsequently agree upon the
sales, agency, pledge and price.
2000 ed. Manila : GIC Enterprises. (3) LB/R- LEGAL BASIS/ LS-LEGAL
23 | P a g e
(75) What is the effect if the (2) LD/E- LEGAL
third person in fixing the price DISCUSSIONS/EXPLANATIONS
acted in bad faith or by _______________________________________
mistake? _______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
The effect if the third person in _______________________________________
fixing the price acted in bad faith _______________________________________
or by mistake is that the courts _______________________________________
may fix the price. _______________________________________
_______________________________________
(2) LD/E- LEGAL _______________________________________
When the third person acts in bad (3) LB/R- LEGAL BASIS/ LS-LEGAL
faith or by mistake as when the SOURCE Article 1469 R.A. 386
third person fixed the price
having in mind not the thing (77) What is the effect of
which is the object of the sale, but gross inadequacy of price?
another analogous or similar (1) LA-LEGAL ANSWER/S:
thing, in which case the court may Gross inadeaquacy of price does
fix the price. But mere error in not affect a conttact of sale,
judgement cannot serve as a except as it may indicate a defect
basis for disregarding the price in the consent, or that the parties
fixed. really intend a donationor some
other act or contract.
1469 R.A. 386 (2) LD/E- LEGAL
LS-LEGAL SOURCE _______________________________________
pg. 19-20, The Law on Sales, _______________________________________
Agency and Credit Transactions, _______________________________________
Hector S. De Leon, 2010 Edition _______________________________________
_______________________________________
(76) What are the remedies _______________________________________
if the third person who is to _______________________________________
fix the price is prevented _______________________________________
from fixing the price by fault _______________________________________
of the seller or the buyer?
(1) LA-LEGAL ANSWER/S: (3) LB/R- LEGAL BASIS/ LS-LEGAL
If such third person is prevented SOURCE Article 1470 R.A. 386
from fixing the price by the fault
of the seller or the buyer, the (78) Will the contract of sale
party not in fault may obtain be valid, if the price is
redress against the party in fault simulated or false?
(par. 4) which consists of a choice (1) LA-LEGAL ANSWER/S:
between rescission or fulfillment, If the price is simulated, the sale
with damages in either case. (Art. is void, but the act may be shown
1191, par. 2.) If the innocent party to have been in reality a donation,
chooses fulfillment, the court or some other act or contract.
shall fix the price.
(2) LD/E- LEGAL
24 | P a g e
DISCUSSIONS/EXPLANATIONS of one of the contracting
_______________________________________ parties?
_______________________________________ (1) LA-LEGAL ANSWER/S:
_______________________________________ The fixing of the price can never
_______________________________________ be left to the discretionnof one of
_______________________________________ the contracting parties. However,
_______________________________________ if the price fixed by one of the
_______________________________________ parties is accepted by the other,
_______________________________________ the sale is perfected.
_______________________________________
(2) LD/E- LEGAL
(3) LB/R- LEGAL BASIS/ LS-LEGAL DISCUSSIONS/EXPLANATIONS
SOURCE Article 1471 R.A. 386 _______________________________________
_______________________________________
(79) Under what _______________________________________
circumstances shall the price _______________________________________
of securities, grain, liquids, _______________________________________
and other things be _______________________________________
considered certain? _______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
The price of securities, grains, _______________________________________
liquids, and other things shall also
be comsidered certain, when the (3) LB/R- LEGAL BASIS/ LS-LEGAL
price fixed is that which the thing SOURCE Article 1473 R.A. 386
sold would have on a definite day,
or in a particular exchange or (81) What is the effect if price
market, or when an amount is cannot be determined either
fixed above or below the price on by the parties or the third
such day, or in such exchange or person designated to fix it?
in market, provided said amount (1) LA-LEGAL ANSWER/S:
be certain. Where the price cannot be
determined in accordance with
(2) LD/E- LEGAL the preceding articles, or in any
DISCUSSIONS/EXPLANATIONS other manner, the contract is
_______________________________________ inefficacious. However, if the thing
_______________________________________ or any part thereof has been
_______________________________________ delivered to and appropriated by
_______________________________________ the buyer, he must pay a
_______________________________________ reasonable price therefor. What is
_______________________________________ a reasonable price is a question of
_______________________________________ fact dependent on the
_______________________________________ circumstances of each particular
_______________________________________ case.
(3) LB/R- LEGAL BASIS/ LS-LEGAL (2) LD/E- LEGAL

SOURCE Article 1472 R.A. 386 DISCUSSIONS/EXPLANATIONS
If the price cannot be determined
(80) Can the fixing of the in accordance with Articles 1469
price be left to the discretion and 1472, or in any other manner,
the contract is without effect.
25 | P a g e
(2) LD/E- LEGAL
(3) LB/R- LEGAL BASIS/ LS-LEGAL DISCUSSIONS/EXPLANATIONS
SOURCE Article 1474 R.A. 386 _______________________________________
_______________________________________
(82) In the event price cannot _______________________________________
be determined, but the _______________________________________
thing or any part thereof _______________________________________
has already been delivered _______________________________________
and appropriated by the _______________________________________
buyer, what is the obligation _______________________________________
of the buyer? _______________________________________
If the thing or any part thereof (3) LB/R- LEGAL BASIS/ LS-LEGAL
has already been delivered and SOURCE Article 1474 R.A. 386
appropriated by the buyer, the
latter must pay a reasonable price (84) Distinguish between
thereof. The reasonable price or earnest money and option
value of goods is generally the money
market price at the time and place (1) LA-LEGAL ANSWER/S:
fixed by the contract or by law for (1) Earnest money is part of the
the delivery of the goods. purchase price, while option
money (see Art. 1479, par 2.) is
(2) LD/E- LEGAL the money given as distinct
DISCUSSIONS/EXPLANATIONS consideration for the option
_______________________________________ contract; (2) Earnest money is
_______________________________________ given only where there is already
_______________________________________ a sale, while option money applies
_______________________________________ to a sale not yet perfected; and
_______________________________________ (3) When earnest money is given,
_______________________________________ the buyer is bound to pay the
_______________________________________ balance, while when the would-be
_______________________________________ buyer gives option money, he is
_______________________________________ not required to buy.

_______________________________________
LS-LEGAL SOURCE _______________________________________
pg. 24, The Law on Sales, Agency _______________________________________
and Credit Transactions, Hector S. _______________________________________
De Leon, 2010 Edition _______________________________________
_______________________________________
(83) What is considered a _______________________________________
reasonable price _______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
What is a reasonable price is a
question of fact dependent on the (3) LB/R- LEGAL BASIS/ Article
circumstances of each particular 1482 R.A. 386
case.
LS-LEGAL SOURCE
26 | P a g e
De Leon, 2010 Edition _______________________________________
_______________________________________
(85) What are the natural (3) LS-LEGAL SOURCE

elements of a contract of sale? pg. 3, The Law on Sales, Agency
(1) LA-LEGAL ANSWER/S: and Credit Transactions, Hector S.
Natural elements are those which De Leon, 2010 Edition
are deemed to exist in certain
contracts, in the absence of any Lesson 9C-41 GQs
contrary stipulations like warranty WARRANTIES
against eviction or hidden
defects. (87) Legally define warranty
(2) LD/E- LEGAL Warranty is any representation
DISCUSSIONS/EXPLANATIONS made by the seller of thing with
_______________________________________ respect to its character, quality, or
_______________________________________ ownership, by which he induces
_______________________________________ the buyer to purchase the same
_______________________________________ relying on said representation.
_______________________________________
_______________________________________ (2) LD/E- LEGAL
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
(3) LS-LEGAL SOURCE _______________________________________
De Leon, 2010 Edition _______________________________________
_______________________________________
_______________________________________
natural elements? (3) LB/R- LEGAL BASIS/ LS-LEGAL
(1) LA-LEGAL ANSWER/S: SOURCE Article 1546 R.A. 386
Natural elements are those which
are deemed to exist in certain (88) What is warranty vis-a-
contracts, in the absence of any vis contract of sale?
contrary stipulations like warranty (1) LA-LEGAL ANSWER/S:
against eviction or hidden Any affirmation of fact or any
defects. promise by the seller relating to
the thing is an express warranty if
(2) LD/E- LEGAL the natural tendency of such
DISCUSSIONS/EXPLANATIONS affirmation or promise is to induce
_______________________________________ the buyer to purchase the same,
_______________________________________ and if the buyer purchases the
_______________________________________ thing relying thereon. No
_______________________________________ affirmation of the value of the
_______________________________________ thing, nor any statement
27 | P a g e
purporting to be a statement of
the seller's opinion only, shall be (90) Define express
construed as a warranty, unless warranty
the seller made such affirmation (1) LA-LEGAL ANSWER/S:
or statement as an expert and it An express warranty is any
was relied upon the buyer. affirmation of fact or any promise
by the seller relating to the thing,
(2) LD/E- LEGAL the natural tendency of which is
DISCUSSIONS/EXPLANATIONS to induce the buyer to purchase
_______________________________________ the thing, and the buyer thus
_______________________________________ induced, does purchase the same
_______________________________________ time.
_______________________________________
_______________________________________ (2) LD/E- LEGAL
_______________________________________ A warranty is a part of the
_______________________________________ contract of sale. It is, therefore ,
_______________________________________ immaterial whether the seller did
not know that it was false or true.
(3) LB/R- LEGAL BASIS/ LS-LEGAL No intent is necessary to make
SOURCE Article 1546 R.A. 386 the selker liable for his warranty.
(89) What are the kinds of (3) LS-LEGAL SOURCE

warranties under the law? pg. 126, The Law on Sales,
(1) LA-LEGAL ANSWER/S: The Agency and Credit Transactions,
seller is liable for his express Hector S. De Leon, 2010 Edition
warranties (Article 1456) and for
the implied warranties of title (91) Is an affirmation of the
(Article 1457), absence of hidden value of the thing or the
effects, fitness or merchantability seller s expression of
(Article 1562) , description opinion considered express
(Articles 1481, 1562) and sample. warranty?
(Article 1481, 1565) (1) LA-LEGAL ANSWER/S:
A mere expression of opinion, no
(2) LD/E- LEGAL matter how positively asserted,
DISCUSSIONS/EXPLANATIONS does not import a warranty unless
_______________________________________ the seller is an expert and the
_______________________________________ opinion was relied upon the buyer.
_______________________________________
_______________________________________ (2) LD/E- LEGAL
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
(3) LS-LEGAL SOURCE _______________________________________
pg. 125, The Law on Sales, _______________________________________
Agency and Credit Transactions, _______________________________________
Hector S. De Leon, 2010 Edition _______________________________________
28 | P a g e
94. Does the rule on implied
(3) LS-LEGAL SOURCE warranty apply to all persons who
pg. 126, The Law on Sales, make a sale?
Agency and Credit Transactions, (1) LA-LEGAL ANSWER/S: The term
Hector S. De Leon, 2010 Edition "implied warranty" is reserved for
cases where the law attaches an
93. What are the implied obligation to the seller which is
warranties in a contract of sale? not expressed in any words.
In a contract of sale, unless a (2) LD/E- LEGAL
contrary intention appears, there DISCUSSIONS/EXPLANATIONS
is: Implied warranties under Articles
1547 and 1562 are:
(1) An implied warranty on the (1) Implied warranty as to seller's
part of the seller that he has a title
right to sell the thing at the time (2) Implied warranty against
when the ownership is to pass, hidden effects or unknown
and that the buyer shall from that encumberances
time have and enjoy the legal and (3) Implied warranty as to fitness
peaceful possession of the thing; or merchatability
(2) An implied warranty that the (3) LS-LEGAL SOURCE

thing shall be free from any pg. 128, The Law on Sales,
hidden faults or defects, or any Agency and Credit Transactions,
charge or encumbrance not Hector S. De Leon, 2010 Edition
declared or known to the buyer.
95. What is eviction?
This article shall not, however, be (1) LA-LEGAL ANSWER/S:
held to render liable a sheriff, Eviction shall take place whenever
auctioneer, mortgagee, pledgee, by a final judgment based on a
or other person professing to sell right prior to the sale or an act
by virtue of authority in fact or imputable to the vendor, the
law, for the sale of a thing in vendee is deprived of the whole
which a third person has a legal or or of a part of the thing
equitable interest. (n) 29 purchased.
(2) LD/E- LEGAL The vendor shall answer for the

DISCUSSIONS/EXPLANATIONS eviction even though nothing has
An implied warranty is that which been said in the contract on the
the law derives by implication or subject.
inference from the nature of the
transaction or the relative The contracting parties, however,
situation or circumstances of the may increase, diminish, or
parties irrespective of any suppress this legal obligation of
intention of the seller to create it. the vendor. (1475a) 29

Eviction may be defined as the
juridical process whereby the
29 | P a g e
vendee is deprived of the whole pg. 128, The Law on Sales,
or part of the thing purchased by Agency and Credit Transactions,
virtue of final judgement based on Hector S. De Leon, 2010 Edition
a right prior to the sale or an act
imputable to the vendor.
97.In the event the vendee is
(3) LB/R- LEGAL BASIS/Article evicted by final judgment of
1548 R.A. 386 the thing he bought, can he
hold the vendor liable for
LS-LEGAL SOURCE eviction even though
pg. 130, The Law on Sales, nothing was agreed upon in
Agency and Credit Transactions, the contract regarding the
Hector S. De Leon, 2010 Edition warranty against eviction?
The vendee need not appeal from
96. What are the essential the decision in order that the
requisites of the warranty against vendor may become liable for
eviction? eviction. (n)
(1) LA-LEGAL ANSWER/S: 30
The essential elements of eviction
are: (2) LD/E- LEGAL
(1) The vendee is deprived in DISCUSSIONS/EXPLANATIONS
whole or in part of the thing _______________________________________
purchased; _______________________________________
(2) He is so deprived by virtue of _______________________________________
a final judgement (Article 1557) ; _______________________________________
(3) The judgement is based on a _______________________________________
right prior to the sale or an act to _______________________________________
the imputable vendor; _______________________________________
(4) The vendor was summoned in _______________________________________
the suit for eviction at the _______________________________________
instance of the vendee (Article
1558); and (3) LB/R- LEGAL BASIS/ LS-LEGAL
(5) There is no waiver on the part SOURCE Article 1549 R.A. 386
of the vendee.
98.Are there cases where the
(2) LD/E- LEGAL vendor shall not be liable for
DISCUSSIONS/EXPLANATIONS eviction?
_______________________________________ (1) LA-LEGAL ANSWER/S:
_______________________________________ When adverse possession had
_______________________________________ been commenced before the sale
_______________________________________ but the prescriptive period is
_______________________________________ completed after the
_______________________________________ transfer, the vendor shall not be
_______________________________________ liable for eviction. (n)
_______________________________________
_______________________________________ (2) LD/E- LEGAL
(3) LS-LEGAL SOURCE _______________________________________
_______________________________________
30 | P a g e
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
(3) LB/R- LEGAL BASIS/ LS-LEGAL SOURCE Article 1553 R.A. 386
101. What are the kinds of waiver
99.Does this warranty against of eviction?
eviction apply to judicial (1) LA-LEGAL ANSWER/S:
sales? The kinds of waiver are:
(1) LA-LEGAL ANSWER/S: (1) Consciente
The judgment debtor is also (2) Intencionada
responsible for eviction in judicial
sales, unless it is otherwise (2) LD/E- LEGAL
decreed in the judgment. (n)31 DISCUSSIONS/EXPLANATIONS
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________ (3) LS-LEGAL SOURCE
_______________________________________ pg. 134, The Law on Sales,
Agency and Credit Transactions,
(3) LB/R- LEGAL BASIS/ LS-LEGAL Hector S. De Leon, 2010 Edition
102. In case eviction takes place but
100. What is the effect of the the vendee has made a waiver
stipulation exempting the consciente, can he hold the
vendor from the obligation vendor liable?
to answer for eviction? 103. What is waiver conciente?
(1) LA-LEGAL ANSWER/S: 104. What is waiver intencionada?
Any stipulation exempting the 105. Differentiate waiver
vendor from the obligation to conciente from waiver
answer for eviction shall be void, intencionada
if he acted in bad faith. (1476)31 106. In the event eviction takes place
but the vendee has made an
(2) LD/E- LEGAL waiver intencionada, can he
DISCUSSIONS/EXPLANATIONS hold the vendor liable?
_______________________________________ 107. In case the warranty against
_______________________________________ eviction has been expressly
_______________________________________ agreed upon or nothing has
31 | P a g e
been stipulated on this point, 122. Shall the vendor be responsible
but eviction takes place, what for any hidden defects in the
can the vendee demand from thing sold, even though he
the vendor? was not aware thereof?
108. What is partial eviction? 123. What are the alternative
109. What are the rights of the remedies for the buyer to
vendee in case of partial enforce the warranty?
eviction? 124. What are the Latin terms for
110. In case the immovable sold is such remedies?
encumbered with any non 125. Within what time shall
apparent burden or the vendee bring either the
servitude, what are the rights action to withdraw from the
of the vendee? contract or the action to
111. What circumstances must be demand proportionate
present to enable the vendee to reduction of the price?
avail of any of the above 126. What are the accidental
remedies? elements of a contract of sale?
112. What are the remedies 127. What is the meaning of
available to the vendee should accidental elements?
the immovable sold be 128. What is interest vis--vis
encumbered with any non contract of sale?
apparent servitude?
113. When shall these alternative Lesson 10-7 GQs
remedies be not available to PARTIES
the vendee?
114. What circumstances must be 129. Who are the parties in a
present so that the vendor contract of sale?
shall be responsible for his 130. Are all persons authorized to
warranty against hidden buy and sell?
defects? (1) LA-LEGAL ANSWER/S:
115. For what defects is the No.
vendor not liable?
116. What are the implied (2) LD/E- LEGAL
warranties in the case of sale DISCUSSIONS/EXPLANATIONS
of goods? As a rule, only persons who
117. When does the implied may oblige themselves may
warranty as to fitness or
enter into a contract of sale.
quality apply?
118. When does the implied
warranty of merchantability
SOURCE
apply?
119. Distinguish between the pg. 357, Pointers in Business Law for CPA
warranty for fitness and the Reviewees, Suarez, C. (2011)
warranty of merchantability
120. Is there an implied warranty in 131. What is the meaning of
the case of a sale of a capacity to buy and sell?
specified article under its (1) LA-LEGAL ANSWER/S:
patent or trade name? All persons who are authorized in this
121. What warranty exists in case Code to obligate themselves, may enter
the sale is a sale by sample? into a contract of sale, saving the
32 | P a g e
_______________________________________
modifications contained in the following _______________________________________
articles. _______________________________________
_______________________________________
Where necessaries are those sold and _______________________________________
delivered to a minor or other person
without capacity to act, he must pay a
SOURCE pg. 357, Pointers in Business
reasonable price therefor. Necessaries are
Law for CPA Reviewees, Suarez, C. (2011)
those referred to in article 290. (1457a) 33
(2) LD/E- LEGAL
133. What are the kinds of
incapacity to buy and sell?
_______________________________________
_______________________________________
If the third person or persons
_______________________________________
acted in good faith.
_______________________________________
_______________________________________
_______________________________________ (2) LD/E- LEGAL
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
132. What is the meaning of
_______________________________________
incapacity to buy and sell?
_______________________________________
Incapacity to buy and sell are
those who can not oblige (3) LB/R- LEGAL BASIS/ LS-LEGAL
themselves to enter into a SOURCE Article 1469 R.A. 386
contract of sale. Hence,
incapacitated persons, like 134. Give some examples of
minors, demented persons, persons especially
imbeciles, prodigals, deaf and disqualified by law.
dumb, insan and those subject to (1) LA-LEGAL ANSWER/S:
Civil interdiction caanot enter to The following persons cannot
contract because their personality acquire by purchase, even at a
is restricted. However, when public or judicial auction, either in
necessaries are sold and delivered person or through the
to a minor or incapacitated
person, the latter is obliged to mediation of another:
oay a reasonable price.
(1) The guardian, the property of
the person or persons who may be
(2) LD/E- LEGAL
under his guardianship;
_______________________________________
(2) Agents, the property whose
_______________________________________
administration or sale may have
_______________________________________
been intrusted to them, unless
_______________________________________
the consent of the
33 | P a g e
_______________________________________
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 (3) LB/R- LEGAL BASIS/ LS-LEGAL
corporation, or institution, the SOURCE Article 1491 R.A. 386
administration of which has been
intrusted to them; this provision 135. To what other transactions
shall apply does this prohibition extend?
to judges and government experts If the third person or persons
who, in any manner whatsoever, acted in good faith.
take part in the sale;
(2) LD/E- LEGAL
(5) Justices, judges, prosecuting DISCUSSIONS/EXPLANATIONS
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 (3) LB/R- LEGAL BASIS/ LS-LEGAL
respective functions; this SOURCE Article 1469 R.A. 386
prohibition includes the act of
acquiring by assignment and shall

apply to lawyers, with respect to Lesson 11-2 GQs
the property and rights which may SELLER/VENDOR
be the object of
136. Who is a seller/vendor is
any litigation in which they may contemplation of the law?
take part by virtue of their (1) LA-LEGAL ANSWER/S:
profession; The seller is the one who is
obliged to transfer ownership and
(6) Any others specially to deliver a determinate thing to
disqualified by law. (1459a) 3434 the buyer. The seller is also
responsible in providing a
(2) LD/E- LEGAL warranty to the object of the
DISCUSSIONS/EXPLANATIONS contract of sale.
34 | P a g e
(2) LD/E- LEGAL (2) LD/E- LEGAL
DISCUSSIONS/EXPLANATIONS DISCUSSIONS/EXPLANATIONS
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
(3) LB/R- LEGAL BASIS/ LS-LEGAL (3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE pg. 360, Pointers in Business SOURCE Article 1469 R.A. 386
139. What are the kinds of
137. Enumerate the obligations of delivery?
the seller/vendor (1) LA-LEGAL ANSWER/S:
(1) LA-LEGAL ANSWER/S: The kinds of delivery are the
The vendor is bound to transfer following:
the ownership of and deliver, as a. Actual delivery
well as warrant the thing which is b. Constructive delivery
the object of the c. Any agreement that
possession is transferred from
sale. (1461a) 35 the vendor to the vendee
(2) LD/E- LEGAL (2) LD/E- LEGAL

DISCUSSIONS/EXPLANATIONS DISCUSSIONS/EXPLANATIONS
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
(3) LB/R- LEGAL BASIS/ LS-LEGAL (3) LB/R- LEGAL BASIS/ LS-LEGAL
SOURCE Article 1495 R.A. 386 SOURCE pg. 360, Pointers in Business
Lesson 11A-11 GQs 140. Does actual or real delivery
DELIVERY/TRADITION always pass ownership to the
vendee?
138. What is meant by delivery? (1) LA-LEGAL ANSWER/S:
(1) LA-LEGAL ANSWER/S: Yes.
(2) LD/E- LEGAL
35 | P a g e
Because actual delivery happens _______________________________________
when the goods are placed in the
control and possession of the (3) LB/R- LEGAL BASIS/ LS-LEGAL
vendee. SOURCE Article 1469 R.A. 386
(3) LB/R- LEGAL BASIS/ LS-LEGAL 143. What are the exceptions to the
SOURCE pg. 360, Pointers in Business above rule?
Law for CPA Reviewees, Suarez, C. (2011) (1) LA-LEGAL ANSWER/S:
141. What are the exceptions to the
rule that delivery to the carrier (2) LD/E- LEGAL
is delivery to the buyer? DISCUSSIONS/EXPLANATIONS
(1) LA-LEGAL ANSWER/S: _______________________________________
If the third person or persons _______________________________________
acted in good faith. _______________________________________
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________ SOURCE Article 1469 R.A. 386
_______________________________________
_______________________________________ 144. What do the following trade
_______________________________________ terms mean?
a. F.O.B.
(3) LB/R- LEGAL BASIS/ LS-LEGAL b. C.I.F
SOURCE Article 1469 R.A. 386 (1) LA-LEGAL ANSWER/S:
142. When shall delivery of goods acted in good faith.
by the seller to the carrier
be considered delivery to (2) LD/E- LEGAL
the buyer? DISCUSSIONS/EXPLANATIONS
(1) LA-LEGAL ANSWER/S: _______________________________________
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________
36 | P a g e
145. Under the obligation of the
seller to deliver, who shall bear (2) LD/E- LEGAL
the expenses in order to place DISCUSSIONS/EXPLANATIONS
the thing in a deliverable state? _______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________
_______________________________________ 148. What are the rules anent care
_______________________________________ of the object of sale from
_______________________________________ perfection to delivery?
(3) LB/R- LEGAL BASIS/ LS-LEGAL If the third person or persons
SOURCE Article 1469 R.A. 386 acted in good faith.
146. Who shall pay for the expenses (2) LD/E- LEGAL
for the execution and DISCUSSIONS/EXPLANATIONS
registration of the sale? _______________________________________
(1) LA-LEGAL ANSWER/S: _______________________________________
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________ Lesson 11B-12 GQs
_______________________________________ OWNERSHIP
(3) LB/R- LEGAL BASIS/ LS-LEGAL 149. What is meant by transfer vis-
SOURCE Article 1469 R.A. 386 -vis a contract of sale?
147. What is the meaning of care If the third person or persons
vis--vis a contract of sale? acted in good faith.
If the third person or persons (2) LD/E- LEGAL
acted in good faith. DISCUSSIONS/EXPLANATIONS
37 | P a g e
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________
_______________________________________ 152. Must the seller have ownership
_______________________________________ of the thing at the time of
_______________________________________ perfection of the contract of
sale?
SOURCE Article 1469 R.A. 386 If the third person or persons
150. What is ownership vis--vis a
contract of sale? (2) LD/E- LEGAL
(1) LA-LEGAL ANSWER/S: DISCUSSIONS/EXPLANATIONS
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________
_______________________________________ 153. When shall ownership of the
thing sold be transferred to
(3) LB/R- LEGAL BASIS/ LS-LEGAL the vendee or buyer?
151. When is ownership acted in good faith.
transferred to the buyer?
(1) LA-LEGAL ANSWER/S: (2) LD/E- LEGAL
If the third person or persons DISCUSSIONS/EXPLANATIONS
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
38 | P a g e
154. Is there a case where though If the third person or persons
the thing has been delivered to acted in good faith.
the buyer, yet the buyer does
not acquire ownership? (2) LD/E- LEGAL
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________
_______________________________________ 157. In a sale of specific goods
when does ownership pass
(3) LB/R- LEGAL BASIS/ LS-LEGAL to the buyer?
155. How is ownership of the acted in good faith.
thing transferred to the
vendee? (2) LD/E- LEGAL
_______________________________________
(2) LD/E- LEGAL _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________ _______________________________________
_______________________________________
_______________________________________
_______________________________________ 158. Can a seller who has no
ownership over the thing
(3) LB/R- LEGAL BASIS/ LS-LEGAL sold transfer ownership to
SOURCE Article 1469 R.A. 386 the buyer?
159. What are the exceptions to the
156. So that ownership is transferred abovementioned rule?
must the vendor have 160. If the seller has a voidable
ownership at the time of title to the goods, will the
perfection of the contract?
39 | P a g e
buyer acquire a good title 180. In the sale of real estate when is
thereto? the vendor said to have
delivered the thing?
Lesson 11C-24 GQs 181. In the event the vendor cannot
REMEDIES OF UNPAID SELLER deliver everything as mentioned
in the contract, what are the
161. When is the vendor not bound remedies of the vendee?
to deliver the thing sold? 182. When is the vendee entitled to
162. Who is considered an unpaid rescind the sale?
seller? 183. Under what cases may the
163. What are the remedies of an vendee choose proportionate
unpaid seller? reduction of the price?
164. What is stoppage in transit? 184. Should the vendor deliver a
165. What is rescission? greater area or number in the
166. What is possessory lien? immovable than that stated in
167. What is resale? the contract, what is the right of
168. Under what cases may the the vendee?
possessory lien of the unpaid
seller be exercised? Lesson 12-17 GQs
169. Does the unpaid seller lose his BUYER/VENDEE
lien if he makes part delivery of
the goods? 185. Who is a buyer in a contract of
170. Under what circumstances does sale?
an unpaid seller of goods lose 186. Enumerate the obligations of
his lien thereon? the buyer/vendee
171. What are the requisites so that 187. Enumerate the rights of the
the unpaid seller can exercise buyer/vendee
his right of stoppage in transit? 188. At what time and place shall
172. How does an unpaid seller stop payment and acceptance or
the goods in transit? delivery be made?
173. Under what cases is a resale of 189. Is the buyer bound to accept
the goods allowed? delivery by installments?
174. Is notice of resale essential to 190. In case the contract provides for
make the resale valid? delivery of goods by stated
175. What are the effects of resale installments which are to be
176. Under what circumstances may paid for separately what
the unpaid seller exercise his remedies are available in case
right to rescind? the seller makes defective
177. Is the unpaid sellers right of lien deliveries in respect of one or
or stoppage in transitu affected more installments, or the buyer
by any sale or disposition of the neglects or refuses without just
goods by the buyer? cause to take delivery of or pay
178. In case of sale on credit when for one or more installments?
has the vendor the right to 191. Has the buyer an absolute right
withhold delivery? to examine the goods before he
179. In what condition shall the thing accepts them?
object of the contract be 192. In what manner may the buyer
delivered to the vendee? accept the goods delivered?
193. What are the cases or implied
acceptance?
40 | P a g e
194. Does acceptance by the buyer buy As specific car for P50,000,
bar any action for damages is there a perfected contract of
against the seller? sale
195. What is required of the buyer if 209. If the offerer has allowed the
the rightfully refuses to accept offeree a certain period to
the goods? accept the offer can the offerer
196. What is the effect of the buyers withdraw his offer?
wrongful refusal to accept the 210. When may an offerer not
goods? withdraw his offer even though
197. When shall the vendee pay acceptance has not yet been
interest of on the purchase communicated?
price? 211. What are the kinds of
198. What are the cases where the conditional sales?
vendee can suspend the
payment of the purchase price? LESSON 13A-2 GQs
199. What are the options of the SALE BY SAMPLE
buyer in the event the seller
delivers a quantity of goods less 212. When is sale of goods
that he contracted to sell? considered as sale by sample?
200. What are the options of the 213. What are the applicable rules
buyer in case the seller delivers for such kind of sale?
a quantity of goods larger than
he contracted to sell?
201. In the event the seller delivers
to the buyer the goods he
contracted to sell mixed with
goods of a different description LESSON 13B-5 GQs
not included in the contract, SALE BY DESCRIPTION AND
what remedies has the buyer? SAMPLE
Lesson 13-10 GQs 214. When is sale considered sale

KINDS OF SALE by description and sample?
215. What are the applicable rules
202. State the two kinds of contract for such kind of sale?
of sale as regard the presence 216. What is the warranty of the
or absence of conditions. seller in a sale by
203. When is a contract of sale description?
absolute? 217. What is the warranty of the
204. When is a contract of sale seller in a sale by sample?
conditional? 218. What is the warranty of the
205. What is the effect if a seller in case the sale is by
unilateral promise or offer description and sample?
to sell or to buy a thing has
not been accepted LESSON 13C-2 GQs
206. What is the effect if a bilateral SALE OR RETURN
promise to buy and sell is
reciprocally accepted 219. What is a sale or return?
207. What is Policitation? 220. What are the applicable rules
208. If A promised to sell his car for for such kind of sale?
P50,000 to B and B promised to
41 | P a g e
LESSON 13D-3 GQs 233. What is PD 957 vis--vis a
SALE ON TRIAL OR APPROVAL contract of sale?
234. What are the applicable and
221. When is a sale considered to be relevant features of the law
a sale on trial or approval? related to sale?
222. Within what time shall the buyer
notify the seller of his approval? Lesson 13H-7 GQs
223. What re the applicable rules for RECTO LAW
such kind of sale?
235. What is the Recto Law?
Lesson 13E-5 GQs 236. What is the Recto Law vis--vis
INSTALLMENT SALES a contract of sale?
224. What is meant by installment relevant features of the law
sales? related to sale?
225. What are the remedies of the 238. What is chattel?
vendor in a contract of sale of 239. What is foreclosure?
personal property the price of 240. What are the rules on
which is payable in foreclosure?
installments? 241. What are the rules anent
226. Will the above remedies apply deficiency and excess vis--vis
to a contract purporting to sale at public auction of the
be a lease of personal thing subjected to foreclosure?
property with option to buy?
227. What is the effect of the
stipulation that the Lesson 13I-5 GQs
installments or rents paid DOUBLE SALE
shall be forfeited by the
vendor or lessor? 242. What is double sale?
228. In the event the buyer cannot 243. Differentiate movable from
pay the agreed installments or immovable property
the lessee the agreed rental, 244. In case of sale of the same
can the vendor or the lessee property to two or more
forfeit the installments or vendees to whom shall
rentals already paid? ownership of the thing pertain?
245. What is meant by possession in
Lesson 13F-3 GQs good faith?
MACEDA LAW 246. What is meant by registrant in
good faith?
229. What is the Maceda Law?
230. What is the Maceda Law vis-- Lesson 13J-6 GQs
vis a contract of sale? SALE BY AUCTION
relevant features of the law 247. What is sale by auction?
related to sale? 248. When is sale by auction
perfected?
Lesson 13G-3 GQs 249. In, auction sale can be
PD 957 auctioneer withdraw the goods
from the sale?
232. What is PD 957?
42 | P a g e
250. Is the seller or his agent not deliver everything
allowed to bid? designated in the contract?
251. What is puffing or by 270. Within what time shall the
bidding? action for either rescission of
252. Under what circumstances may the contract or the
the auction sale be treated proportionate reduction of the
as fraudulent by the buyer? price expire?
271. Where the obligation of either
the vendor or the vendee to a
Lesson 14-9 GQs contract of sale is subject to any
RULES ON condition which is not
LOSS/DETERIORATION/IMPROVE performed, what are the
MENT remedies of the parties?
272. What are the cases where the
253. What is loss in contemplation of vendee cannot suspend the
the law? payment of the price?
254. What are the kinds of loss? 273. When may the vendor
255. What is meant by deterioration? immediately sue for rescission
256. What is meant by of the sale of immovable
improvement? property?
257. What are the rules anent loss 274. What is the effect of a
vis--vis sale? stipulation in a contract of sale
258. What are the rules anent of immovable property
deterioration vis-v-vis sale? authorizing automatic rescission
259. What are the rules anent of the sale?
improvement vis--vis sale? 275. When shall automatic rescission
260. If the thing object of the of the sale of movable property
contract of sale is lost, who take place?
shall suffer the risk of loss? 276. Who may file an action for the
261. What are the rules to govern breach of contract of sale of
in case the object of the goods?
contract is lost? 277. What are the actions available
for breach of the contract of
Lesson 15-25 GQs sale of goods available to the
ACTIONS seller?
278. Under what circumstances can
262. What is action? the seller avail of any of the
263. What is action vis--vis sale? actions for breach of contract of
264. What is breach of contract? sale of goods?
265. What remedies are available for 279. When may the seller maintain
breach of contract of sale? an action against the buyer for
266. What isan action for rescission? damages?
267. What is an action for 280. What is the measure of
proportionate reduction of the damages the seller can recover
price? from the buyer?
268. What is the Latin term for such 281. When may the seller sue for
action? rescission of the contract?
269. What are the rights of the 282. What are the actions available
vendee in case the vendor could to the buyer in case of breach of
contract by the seller?
43 | P a g e
283. What are the requisites to be states that it is an absolute sale
performed in case the buyer or with a right to repurchase?
elects to rescind the contract? 295. Within what period shall the
284. Under what cases is the remedy right to repurchase be exercised
of rescission not available to the by the vendor?
buyer? 296. In the case of sale of immovable
285. In case of sale of real estate or property with a right to
a lump sum and not at the rate repurchase, does absolute
of a certain sum for a unit of ownership automatically
measure or number, what rules transfer to the vendee if the
apply in case of either a greater vendor fails to repurchase
or lesser area or number than within the period stipulated?
that stated in the contract? 297. Against whom shall the vendor
286. If the sale involves two or more bring his action to repurchase?
immovables for single price 298. Who else aside from the vendor
which aside from the may exercise the vendors right
boundaries being mentioned, its or repurchase?
area or number is designated in 299. If the vendor sells a part of an
the contract when is the vendor undivided immovable with a
considered to have complied right to purchase to the vendee,
with his obligation to deliver? and the vendee subsequently
acquires the whole immovable
under Art. 498, can the vendor
be compelled to redeem the
Lesson 16-37 GQs whole property if he wishes to
EXTINGUISHMENT OF SALE make use of his right of
287. How is contract of sale redemption?
extinguished? 300. If several co-owners of an
288. What is conventional undivided immovable sold their
redemption? shares jointly or collectively, in
289. What is the Latin term/another the same contract with a right
term for a sale with a right to of repurchase may anyone of
repurchase? them exercise his right for more
290. Does conventional redemption than his respective share?
apply to sales of both 301. In the case a person sells an
immovable and movable immovable alone with a right to
property? repurchase dies before
291. What are the cases where the exercising his right of
contract with a right to redemption, leaving several
repurchase be presumed as an heirs, may the heirs exercise his
equitable mortgage? right of redemption?
292. What is equitable mortgage? 302. If each one of the co-owners of
293. In case of doubt, how shall a an undivided immovable sells
contract purporting to be a sale his share separately but to the
with right to repurchase be same vendee, can the vendee
construed? be compelled to allow partial
294. What is the remedy in case the redemption?
parties really intended a 303. Should the vendee a retro leave
mortgage but the instrument several heirs, against whom
44 | P a g e
shall the action for redemption 318. When shall the adjacent owners
be brought? of urban lands exercise the right
304. What requites must be complied of pre-emption?
with before the vendor can 319. When shall the owners of the
exercise his right of adjoining lands exercise the
redemption? right of redemption?
305. In case a piece of land is sold 320. Who shall be preferred in case
with a right to repurchase and two or more owners of adjoining
the vendor avails himself of the lands wish to exercise the right
right of redemption what are of pre-emption of redemption?
the rights of the redemption 321. Within what time shall the right
what are the rights of the of pre-emption or redemption
parties to the fruits of the land? be exercised?
306. In what condition shall the 322. What requisite must be followed
vendor a retro recover the thing so that the deed of sale can be
sold? recorded in the Registry of
307. Define Legal Redemption. Property?
308. Who are granted the right of 323. If both co-owners and adjoining
legal redemption? owners would want to exercise
309. What is the purpose of granting the right of redemption at the
the right of legal redemption to same time, who shall be
co-owners? preferred?
310. What requisites must be present
for a co-owner to exercise the end of SALES-(323 GQ)
right of legal redemption? THE GREATER THE
311. For how much shall the co-
owner redeem the property DIFFICULTY; THE GREATER
sold? THE GLORY!
312. What is the rule if two or more
co-owners desire to exercise the
right of redemption? YOU WILL BECOME A CPA!
313. If a co-owner sells his share to
another co-owner can the other Prepared by:
co-owner exercise the right of
redemption? ATTY. GENE B. CALONGE
314. Which adjoining owners are Assistant Professor
granted the right of
redemption?
315. What requisites must be present
for adjacent owners of rural
lands to exercise the right of
legal redemption?
316. Should two or more adjoining
landowners desire to exercise
the right of redemption at the
same time, which of them
should be preferred?
317. What are the rights of owners of
adjoining urban lands in the
case of sale of urban lands?
45 | P a g e

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WORKBOOK

LS-LEGAL SOURCE page 1. Suarez, From that moment, the parties

(9)Why is a contract of sale (3) LB/R- LEGAL BASIS/ Article

From that moment, the parties (1) LA-LEGAL ANSWER/S:

(3) LB/R- LEGAL BASIS/ Article (2) LD/E- LEGAL

(1) LA-LEGAL ANSWER/S: (3) LB/R- LEGAL BASIS/LS-LEGAL

(2) LD/E- LEGAL (20) What is the meaning of

(1) LA-LEGAL ANSWER/S: (21) When is a contract of

(3) LB/R- LEGAL BASIS/ Article (2) LD/E- LEGAL

(26) Define contract to sell? (28) Can contract to sell

(29) Distinguish contract of (3) LB/R- LEGAL BASIS/ Article

(1) LA-LEGAL ANSWER/S: LS-LEGAL SOURCE

(2) LD/E- LEGAL (1) LA-LEGAL ANSWER/S:

(3) LB/R- LEGAL BASIS/LS-LEGAL (3) LB/R- LEGAL BASIS/LS-LEGAL

(3) LB/R- LEGAL BASIS/ Article (2) LD/E- LEGAL

(33) Legally define a contract LS-LEGAL SOURCE

(2) LD/E- LEGAL (3) LB/R- LEGAL BASIS/ Article

(3) LB/R- LEGAL BASIS/ LS-LEGAL (1) LA-LEGAL ANSWER/S:

LS-LEGAL SOURCE page 7. Suarez, (45) What do you mean by manifest

(3) LB/R- LEGAL BASIS/ Article (2) LD/E- LEGAL

(2) LD/E- LEGAL (1) LA-LEGAL ANSWER/S:

(53) When is acceptance LS-LEGAL SOURCE page 453.

(3) LB/R- LEGAL BASIS/ LS-LEGAL (1) LA-LEGAL ANSWER/S:

(1) LA-LEGAL ANSWER/S: (1) LA-LEGAL ANSWER/S:

(3) LB/R- LEGAL BASIS/ Article (64) Distinguish between a sale of

(2) LD/E- LEGAL (68) In case of fungible

(3) LB/R- LEGAL BASIS/ Article (1) LA-LEGAL ANSWER/S:

LS-LEGAL SOURCE page 18. (2) LD/E- LEGAL

(3) LB/R- LEGAL BASIS/ LS-LEGAL (2) LD/E- LEGAL

(3) LB/R- LEGAL BASIS/ LS-LEGAL (2) LD/E- LEGAL

(85) What are the natural (3) LS-LEGAL SOURCE

(89) What are the kinds of (3) LS-LEGAL SOURCE

(2) An implied warranty that the (3) LS-LEGAL SOURCE

(2) LD/E- LEGAL The vendor shall answer for the

(3) LB/R- LEGAL BASIS/ LS-LEGAL (2) LD/E- LEGAL

acquiring by assignment and shall

(2) LD/E- LEGAL (2) LD/E- LEGAL

Lesson 13-10 GQs 214. When is sale considered sale

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