1.

Effect of gross inadequacy of price in involuntary or execution sales

 Gen. Rule: Execution sale is made by court w/ respect to property of
debtor for satisfaction of indebtedness. Same on first rule of voluntary
sale.

 Where price is low as to be “shocking to the conscience”, property will be

SET ASIDE.

ART 1471
1. Effect where price simulated
 Simulated or false – if intended to transfer gratuitously, sale is VOID, valid
as donation

 Not shown – ownership is not transferred, VOID and INEXISTENT.

ART 1472
1. Price on a given day at particular market (securities, grain, liquids, and other
things)
Follows ART 1469, price if CERTAIN if it could be determine with REFERENCE to
another thing certain.

ART 1473
1. Fixing of price by one of contracting parties not allowed (but if accepted by the
other, sale is perfected)
 If consent is ESSENTIAL, determination of price cannot be left to
discretion of one party.
 If accepted by other, deemed perfected (meeting of minds)

ART 1474
1. Effect of failure to determine price
 Where contract executory – contract is WITHOUT EFFECT
 Delivery has been made – the buyer must PAY REASONABLE PRICE =
MARKET PRICE at time & place fixed for delivery

ART 1475
1. Stages of contract of sale
1.) Negotiation
2.) Perfection – concurrence of essential elements
3.) Consummation – perform respective undertakings, culminating
extinguishment

2. Perfection
 Perfected by mere consent. If contracting parties not comply what is
incumbent upon him, injured party may use FULFILLMENT or
RESCISSION, with damages

3. Right if owner to fix his own price

 Owner has right to quote reasonable/not. It is up to buyer to accept or
reject. He may even impose hard to fulfill condition
 Also well on right to quote small consideration and such is just effectual
and valuable a consideration as a larger sum stipulated or paid

4. Effect of failure to pay price/absence of price

 Price stipulated – failure to pay does not covert contract into without
cause/consideration. VENDOR’S REMEDY: demand specific
performance or rescission or cancellation of sale, with damages