Law on Sales

(1458-1488)

1458 – This Article shall serve as a description for “sale”. This article states that, by means of a
contract, one of the contracting parties undertakes to transfer the ownership of and deliver a
specified item, and the other to pay a certain price in money or its equivalent. A contract of sale
can be either absolute or conditional. The essential requisites of sale are: 1. Consent or meeting
of the mind. 2. Object or subject matter. 3. Cause or consideration.
1459 – This article states that the item must be legal, and the seller must have the right to pass
the possession of the item at the time it is shipped. The subject matter must be determinate, licit,
must be w/in the commerce of men and it must be transmissible or personal. The seller does not
need to own the thing to be sold, all that is required of him is the right to transfer ownership
thereof at the time it is delivered.
1460 – This article shall serve as description for “determinate thing”. When clearly marked or
literally separated from all members of the same type, an item is determinate.
1461 – This article states that the things having a potential existence may be the object of the
contract of sale. Potential existence is something that is fairly certain to come into existence in a
natural way or regular event of something already belonged to the seller. The sale of a mere hope
or expectancy shall be considered subject to the condition that the item will come into being. The
selling of false hope or expectation is void.
1462 – This article states that the products which are subject to a sales contract can be either
“existing goods” which are purchased or held by the seller or “future goods” which are products
to be made, produced or obtained by the seller after the sales contract has been perfected. This
article shall not apply if the items are to be made especially for the costumer, since that situation
is a contract for a piece of work and not for sale.
1463 – This article states that the sole owner of a thing may sell an undivided interest therein.
The legal result of the selling of undivided interest in an item is to make the seller a co-owner of
the object owned.
1464 – This article states that in the case of fungible goods, the owner of the mass can sell only
an undivided part of it, providing that the mass is unique or capable of being calculated. By such
selling, the buyer becomes the co-owner of the seller of the entire inventory, in relation to which
of the share acquired.
1465 – This article states that the things subject to a resolutory condition may be the object of the
contract of sale. Where “resolutory condition is an uncertain event upon the happening of which
the obligation (or right) subject to it is extinguished.

1466 – This article shall serve as description to “contract of agency”. This article states that an
individual is bound by an agency to deliver a service or to do anything on behalf of another
person, with the consent of the latter.
1467 – This article shall serve as description to “contract of a piece of work”, where the
contractor agrees to do a piece of work for the owner, in vie of a certain price or benefit.
1468 – This article shall serve as description to “contract of barter/exchange”, where one of the
parties binds himself to give one thing in consideration of the other’s promise to give another
thing.
1469 – This article shall serve as description to “certainty of price”, where the price is certain if;
1. The parties have fixed or agreed upon a definite amount. 2. It be certain w/ reference to
another thing certain. 3.The determination of the price is left to the judgment of a specified
person/s. Take note that (2) & (3) apply only in absence of (1).
1470 – This article states that gross inadequacy of price does not affect a contract of sale.
However, inadequacy of price may imply a consent defect such as, where there is fraud, mistake
or undue control.
1471 – This article states that if the price is simulated (happens when; 1. An outward declaration
of will different from the will of the parties. 2. The false appearance must have been intended by
mutual agreement. 3. The purpose is to deceive 3rd persons.) the sale is void, but the act may be
shown to have been in reality a donation, or some other act or contract.
1472 – This article states that the price of shares, products, liquids and other items shall be also
called definite if the price set is that the quantity sold would have been in a given day, or on a
specific exchange or market, or if the value set is above or below the price on that day, or in that
exchange of market, provided that the quantity is known.
1473 – This article states that acceptance by one of the parties of the price set by the other,
eventually leads to a meeting of the parties’ minds as to the price. And hence, the fact that only
one party has set the price does not immediately violate the transaction.
1474 – This article states that the deal is unsuccessful when the price can not be determined in
accordance with the previous articles, or any other way. However, if the items or any part of
them have been shipped to and claimed by the buyer, the buyer shall pay a reasonable or fair
price of the item. Given that, reasonable price is generally (but not necessarily) market price at
the time & place fixed by the contract or by law for the delivery of goods.
1475 – This article states that at the moment there is a meeting of the minds about the item which
is the object of the deal and on the offer, the selling deal is perfected. From that moment both
parties may demand from each other accordingly to the law governing the form of contracts.

1476 – This article states that 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 another customary manner. Until such announcement is made, any bidder may
retract his bid; & the auctioneer may w/draw the goods from the sale unless the auction has been
announced w/o reserve.
3. A right to bid may be reserved expressly by or on behalf of the seller unless on which is
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.
1477 – This article states that the sale is perfected with bost the