D5.1 - Law

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QUESTIONS:

1. Discuss the difference between:


A. Contract of Sale and Contract to Sell
- In the contract of sale, the ownership of the goods will be transfer to the buyer upon
the delivery of the goods that he/she bought. While in the contract to sell, the seller
expressly reserves the transfer of title to the prospective buyer. It means that the seller
does not yet agree or give consent to transfer the ownership of the goods until full
payment of the purchase price.
B. Sale by Sample, Sale by Description.
- Sale by sample is like in the supermarket where in the saleslady/man or the seller give
actual sample of the product to the buyer for them to try it, and if the buyer will like it,
they will deliver it as how they show the sample. While the sale by description is the
goods they sell based on the description written on the product or said by the seller.
C. Sale or return and Sale on Approval
- Sale of return is are the goods delivered for the purpose of reselling it. It is also subject
to such claims while in the possession of the buyer. While the sale on approval are the
goods delivered primarily for use, and it is not subject to any claims of the buyer’s
creditors until acceptance of the goods.
2. What is the effect of loss of the thing/object in a contract of sale?
- If the thing/object entirely loss while in the contract of sale, the contract shall be
without any effect. But if the thing is only partially lost, the buyer has the option of
withdrawing from the contract and getting the remaining thing/object, paying its
proportion price that he and the seller agreed.
3. Discuss the different kinds of delivery?
- Actual or physical delivery. When the seller deliver the goods to the buyer physically.
- Symbolic delivery. Delivery of goods when it’s inaccessible to the buyer. Goods are
offered through substitute article that indicates the donative's intent of the donor or
seller and is accepted as the representative of the original item.
- Constructive delivery. When there is a change in the legal character without any visible
change in actual and visible custody.
4. Who is an unpaid seller? Give an example using a situation/scenario.
- The seller is considered an unpaid seller when he/she hasn’t received the whole
payment of the goods he/she sold. Example, B sold goods to A for 1,500 pesos but A
only give A 500 pesos, therefore, B is an unpaid seller.
- It is also considered an unpaid seller if the banks cancelled the payment made by the
buyer. For example, A sold goods to B for 50,000 pesos. A received a check from B but
the bank dishonored the check. A is an unpaid seller.
5. What are the rights of unpaid seller? 
Right against goods.
- Art. 1527 Possessory Lien. Right to retain the possession of goods until the full
payment has been made by the buyer.
- Art. 1530 Right of stoppage in transitu. Right to resume possession of the goods at
any time while they are in transit. (in case of insolvency of the buyer)
- Art. 1533 Right of resale. Right to resell the goods to another buyer.
- Art. 1534 Right to rescind. Right to cancel the contract.
Right against the buyer.
- Suit for the price.
- Suit for damages.
- Suit for interest.
- Repudiation of the contract before the due date.
- https://philippinecivillaw.wordpress.com/category/obligations-contracts/06-sales/
- https://studypoints.blogspot.com/2011/08/what-is-delivery-and-discuss-
its_4345.html

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