Scribd
Upload
21 views2 pages

Civil Code

The document outlines the nature and form of a contract of sale, emphasizing the essential elements such as transfer of ownership, delivery of a determinate thing, and payment of a certain price. It discusses the requirements for the object of sale, distinguishing between determinate and generic things, and explains the validity of sales involving potential existence and future goods. Additionally, it addresses the sale of undivided interests in property.

Uploaded by

John paul Capuz
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
21 views2 pages

Civil Code

The document outlines the nature and form of a contract of sale, emphasizing the essential elements such as transfer of ownership, delivery of a determinate thing, and payment of a certain price. It discusses the requirements for the object of sale, distinguishing between determinate and generic things, and explains the validity of sales involving potential existence and future goods. Additionally, it addresses the sale of undivided interests in property.

Uploaded by

John paul Capuz
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Part 1: Nature and Form of the Contract (Arts.

1458 - 1463)

ARTICLE 1458
By the contract of sale one of the contracting parties obligates himself to transfer the
ownership and to deliver a determinate thing, and the other to pay therefore a price certain in
money or its equivalent.

A contract of sale may be absolute or conditional.

Elements
1.​ Transfer of ownership.
2.​ Delivery of a determinate thing.
3.​ Payment of a price certain.

Essential Requisites
Consent: Meeting of the minds.
Object: Must be determinate.
Cause/Consideration: The Price.

ARTICLE 1459
The thing which is the object of a contract of sale must be licit and the vendor must have a
right to transfer the ownership thereof at the time it is delivered.

Ownership at Delivery
You don't need to own the item when you sign the contract; you only need to own it when
you deliver it.

Example: Short selling in stocks or drop-shipping businesses.

ARTICLE 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
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.

Determinate vs. Generic


Determinate: This specific MacBook with Serial No. XYZ-123.
Generic: "A laptop"

Why it matters: If a determinate thing is lost via a fortuitous event, the obligation may be
extinguished. Generic things never perish (Genus nunquam perit).

ARTICLE 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.

Emptio Rei Speratae vs. Emptio Spei


Rei Speratae: Sale of an expected thing (e.g., next year's mango harvest). If no mangoes
grow, no pay.
Emptio Spei: Sale of the hope itself (e.g., a lottery ticket). You pay for the chance, even if you
lose.

Question: An Auditor finds a contract where a company sold its "luck" for the next fiscal
year for P1M. Is this a valid sale?

ARTICLE 1462
The goods which form the subject of a contract of sale may be either existing goods, owned
or possessed by the vendor, or goods to be manufactured, raised, or acquired by the vendor
after the perfection of the contract of sale, in this Title called 'future goods.' There may be a
sale of goods, whose acquisition by the seller depends upon a contingency which may or
may not happen.

ARTICLE 1463
The sole owner of a thing may sell an undivided interest therein.

Example: Selling 40% of your equity in a piece of equipment. The buyer becomes a
co-owner.

You might also like