Law - Summary The Law on Sales, Agency, and Credit Transactions

ART 1458 By the contract of sale, one of the contracting parties obligates himself to transfer the ownership of and
to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent.
A contract of sale may be absolute or conditional.
ART 1459 The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time it
is delivered.
ART 1460 A thing is determinate when it is particularly designated or physically segregated from all others of the
same class.
The requisite that a thing be determinate is satisfied if at the time of the contract is entered into, the thing is capable
of being made determinate without the necessity of a new or further agreement between the parties.
ART 1461 Things having a potential existence may be the object of the contract of sale.
The efficacy of the sale of a mere hope or expectancy is deemed subject to the condition that the thing will come into
existence. The sale of a vain hope or expectancy is void.
ART 1462 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 perfection of the
contract of sale, in this Title called "future goods."
There may be a contract of sale of goods, whose acquisition by the seller depends upon a contingency which may or
maynot happen.
ART 1463 The sole owner of a thing may sell an undivided interest therein.
ART 1464 In the case of fungible goods, there may be a sale of an undivided share of a specific mass, though the
seller purports to sell and the buyer to buy a definite number, weight or measure of the goods in the mass, and
though the number, weight or measure of the goods in the mass is undetermined. By such a sale 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 becomes the owner of the whole mass and the sell is bound to make good the deficiency from goods
of the same kind and quality, unless a contrary intent appears.
ART 1465 Things subject to a resolutory condition may be the object of the contract of sale.
ART 1466 In construing a contract containing provisions characteristic of both the contract of sale and of the
contract of agency to sell, the essential clauses of the whole instrument shall be considered.
ART 1467 A contract for the delivery at a certain price of an article which the vendor in the ordinary course of his
business manufactures or procures for the general market, whether the same is on hand at the time or not, is a
contract of sale, but if the goods are to be manufactured specially for the customer and upon his special order,
and not for the general market, it is a contract for a piece of work.
ART 1468 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 clearly appear, it shall be
considered a barter if the value of the thing given as a part of the consideration exceeds the amount of the
money or its equivalent; otherwise, it is a sale.
ART 1469 In order that the price may be considered certain, it shall be sufficient that it be so with reference to
another thing certain, or that the determination thereof be left to the judgment of a specified person or persons.
Should such person or persons be unable or unwilling to fix it, the contract shall be inefficacious, unless the parties
subsequently agree upon the price.
If the third person or persons acted in bad faith or by mistake, the courts may fix the price.
Where such third person or persons are prevented from fixing the price or terms by fault of the seller or the buyer, the
party not in fault may have such remedies against the party in fault as are allowed the seller or the buyer, as the
case may be.
ART 1470 Gross inadequacy of price does not affect a contract of sale, except as it may indicate a defect in the
consent, or that the parties really intended a donation or some other act or contract.
ART 1471 If the price is simulated, the sale is void, but the act may be shown to have been in reality a donation,
or some other act or contract.
ART 1472 The price of securities, grain, liquids, and other things shall also be considered certain, when the price
fixed is that which the thing sold would have on a definite day, or in a particular exchange or market, or when an
 amount is fixed above or below the price on such day, or in such exchange or market, provided said amount be
certain.
ART 1473 The fixing of the price can never be left to the discretion of one of the contracting parties. However, if
the price fixed by one of the parties is accepted by the other, the sale is perfected.
ART 1474 Where the price cannot be determined in accordance with the preceding articles, or in any 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.
ART 1475 The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is
the object of the contract and upon the price.
From that moment, the parties may reciprocally demand performance, subject to the provisions of the law governing
the form of contracts.
ART 1476 In the case of a sale by auction:
(1) Where goods are put up for sale by auction in lots, each lot is the subject of a separate contract of sale.
(2) A sale by auction is perfected when the auctioneer announces its perfection by the fall of the hammer, or in other
customary manner. Until such announcement is made, any bidder may retract his bid; and the auctioneer may
with draw the goods from the sale unless the auction has been announced to be without reserve.
(3) A right to bid may be reserved expressly by or on behalf of the seller, unless otherwise provided by law or by
stipulation.
(4) Where notice has not been given that a sale by auction is subject to a right to bid on behalf of the seller, it shall
not be lawful for the seller to bid himself or to employ or induce any person to bid at such sale on his behalf or for
the auctioneer, to employ or induce any person to bid at such sale on behalf of the seller or knowingly to take
any bid from the seller or any person employed by him. Any sale contravening this rule may be treated as
fraudulent by the buyer.
ART 1477 The ownership of the thing sold shall be transferred to the vendee upon the actual or constructive
delivery thereof.
ART 1478 The parties may stipulate that ownership in the thing shall not pass to the purchaser until he has fully
paid the price.
ART 1479 A promise to buy and sell a determinate thing for a price certain is reciprocally demandable.

An accepted unilateral promise to buy or to sell a determinate thing for a price certain is binding upon the promisor if
the promise is supported by a consideration distinct from the price.
ART 1480 Any injury to or benefit from the thing sold, after the contract has been perfected, from the moment of
the perfection of the contract to the time of delivery, shall be governed by articles 1163 to 1165, and 1262.
This rule shall apply to the sale of fungible things, made independently and for a single price, or without consideration
oftheir weight, number, or measure.
Should fungible things be sold for a price fixed according to weight, number, or measure, the risk shall not be imputed
tothe vendee until they have been weighed, counted, or measured, and delivered, unless the latter has incurred
in delay.
ART 1481 In the contract of sale of goods by description or by sample, the contract may be rescinded if the bulk
of the goods delivered do not correspond with the description or the sample, and if the contract be by sample as
well as by description, it is not sufficient that the bulk of goods correspond with the description.
The buyer shall have a reasonable opportunity of comparing the bulk with the description or the sample.
ART 1482 Whenever earnest money is given in a contract of sale, it shall be considered as part of the price and
as proof of the perfection of the contract.
ART 1483 Subject to the provisions of the Statute of Frauds and of any other applicable statute, a contract of sale
may be made in writing, or by word of mouth, or partly in writing and partly by word of mouth, or may be inferred
from the conduct of the parties.
ART 1484 In a contract of sale of personal property the price of which is payable in installments, the vendor may
exercise any of the following remedies:
(1) Exact fulfillment of the obligation, should the vendee fail to pay;
(2) Cancel the sale, should the vendee's failure to pay cover two or more installments.
(3) Foreclose the chattel mortgage on the thing sold; if one has been constituted, should the vendee's failure to pay
cover two or more installments. In this case, he shall have no further action against the purchaser to recover any
unpaid balance of the price. Any agreement shall be void.
ART 1485 The preceding article shall be applied to contracts purporting to be leases of personal property with
option to buy, when the lessor has deprived lessee of the possession or enjoyment of the thing.
ART 1486 In the cases referred to in the two preceding articles, a stipulation that the installments or rents paid
shall not be returned to vendee or lessee shall be valid insofar as the same may not be unconscionable under
the circumstances.
ART 1487 The expenses for the execution and registration of the sale shall be borne by the vendor, unless there
is a stipulation to the contrary.
ART 1488 The expropriation of property for public use is governed by special laws.
ART 1489 All persons who are authorized in this Code to obligate themselves, may enter into a contract of sale,
saving the modifications contained in the following articles.
Where necessaries are sold and delivered to a minor or other person without capacity to act, he must pay a
reasonable price therefor. Necessaries are those referred to in article 290.
ART 1490 The husband and the wife cannot sell property to each other, except:
(1) When a separation of property was agreed upon in the marriage settlements; or
(2) When there has been a judicial separation of property under article 191.

ART 1491 The following persons cannot acquire by purchase, even at a public or judicial auction, either in person
or through the mediation of another:
(1) The guardian, the property of the person or persons who may be under his guardianship;
(2) Agents, the property whose administration or sale may have been entrusted to them, unless the consent of the
principal has been given;
(3) Executors and administrators, the property of the estate under administration;
(4) Public officers and employees, the property of the State or of any subdivision thereof, or of any government
owned or controlled corporation, or institution, the administration of which has been entrusted to them; this
provision shall apply to judges and government experts who, in any manner whatsoever, take part in the sale.
(5) Justices, judges, prosecuting attorneys, clerks of superior or inferior courts, and other officers and employees
connected with administration of justice, the property and rights in litigation or levied upon an execution before
the court within those jurisdiction or territory they exercise their respective functions; this prohibition includes the
act of acquiring by assignment and shall apply to lawyers, with respect to the property and rights which may be
the object of any litigation in which they may take part by virtue of their profession;
(6) Any others specially disqualified by law.
ART 1492 The prohibitions in the two preceding articles are applicable to sales by virtue of legal redemption,
compromises and renunciations