Download 89653671 SALESBA Study Guide Sales PDF

Title89653671 SALESBA Study Guide Sales
File Size185.0 KB
Total Pages17
Document Text Contents
Page 2

II. Discussions:

 Difference between Earnest Money and Option Money



Earnest Money Option Money

Part of Purchase Price Money given as distinct

consideration for the option contract

Given only where there is a sale Applies to a sale not yet perfected

When earnest money is given,

buyer is bound to pay the balance

Would-be-buyer is not required to

buy when he gives option money



 Remedies available to a vendor in sale of personal property payable in

installments

o Elect fulfillment upon the vendee‟s failure to pay

o Cancel the sale, if the vendee shall have failed to pay two or

more installments

o Foreclose the chattel mortgage, if one has been constituted, if

the vendee shall have paid to pay two or more installments

 Characteristics of a contract of sale:

o Consnsual – perfected by mere consent without further act

o Bilateral – because both contracting parties are bound to fulfill

obligations reciprocally towards each other

o Onerous - thing sold is conveyed in consideration of price and

vice versa

o Commutative - thing sold is considered the equivalent of the

price paid and vice versa

o Nominate – it is given a designation in the Civil Code, namely

“Sale”

o Principal – does not depend for its existence and validity upon

another contract

Page 9

 Principal Obligations of the Vendor

o To transfer ownership of the determinate thing sold

o To deliver the thing

o To warrant against eviction and hidden defects

o To take care of the thing, pending delivery, with proper

diligence

o To pay for the expenses for the execution and registration of

the deed of sale, unless there is stipulation to the contrary

 Risk of loss by fortuitous event after perfection but before delivery

o Borne by the buyer (as an exception to the rule of res perit

domino)



Chapter 5 – Obligations of the Vendee



I. Definitions

 Acceptance of the goods – assent to become owner of the

specific goods when delivery of them is offered to the buyer

 Wrongful refusal of buyer to accept – when buyer refuses to

accept the goods without just cause

o Risk of loss is borne by him from the moment they are

placed in his disposal



II. Discussions

 Implied acceptance by the vendee of the goods sold

o After delivery of goods: When buyer does any act

inconsistent with the seller‟s ownership (as when he sells or

attempts to sell the goods, uses or makes alteration in them

in a manner proper only for an owner)

o After the lapse of reasonable time: When buyer retains the

goods without intimating his rejection

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