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Article 1466. In construing a contract containing provisions characteristic of both the contract of sale and of the contract of agency to sell, the essential clauses of the whole instrument shall be considered. Sale vs. Agency SAL The buyer pays for the price of the goods/property goods/property purchased The buyer becomes the owner of the goods/property goods/property purchased Buyer cannot return the goods/property when the sale is defective The seller warrants warrants the goods/property goods/property sold The seller has full freedom to enter into any terms or conditions on the contract of sale
A!"#$ The agent does not pay for the price. He merely accounts for the proceeds of the sale. The agent does not become the owner of the goods/property delivered to him for sale. The agent returns returns the goods/property goods/property if he was not able able to sell the same The agent does not make any warranty as long as he acts within his authority and in the name of the principal The agent must follow the the instructions of of the principal
Article 146%. A contract for the delivery at a certain price of an article which the vendor in the ordinary course of his business manufactures or procures for the general mar&et, whether the same is on hand at the time or not, is a contract of sale, but if the goods are to be manufactured specially for the customer and upon his special order, and not for the general mar&et, it is a contract for a piece of wor&. manufactured and upon the special special order of the #ontract for a 'iece of (or&) The article sold is specially manufactured customer. customer. Article i s not sold i n the ordinary course of business. #ontract for a piece of wor& #ontract of Sale The thing transferred transferred is one not in existence and w/c w/c never The thing transferred transferred is one which which would have existed existed and would have existed but for the order of the party desiring would have been the subect of sale to some other person! to acquire it even if the order had not been given The services dominate the contract eventhough eventhough there there is a The primary obective of the the contract is a sale of the sale of goods involved manufactured item" it is a sale of goods eventhough the item is manufactured by labor furnished by the seller and upon previous order of the customer #ot w/in the $tatute of %rauds &overnable by the $tatute of %rauds
Article 146*. If the consideration of the contract consists partly in money, and partly in another thing, the transaction shall be characteri+ed characteri+ed by the manifest intention of the parties. If such intention does not clearly appear, it shall be considered a barter if the value of the thing given as a part of the consideration eceeds the amount of the money or its e-uivalent otherwise, it is a sale. Sale /arter 'onsideration( giving ofmoney as payment 'onsideration( giving of athing &overned by law on sales( species of the genussales )f consideration consists party in moneyand partly by thing *look at manifest intention" )f intention is not clear(value of thing is equal )f intention is not clear(value of thing is more or less than amount ofmoney * sale than amount of money *barter 0ules if #onsideration is partly oney and 'artly !oods +. ,etermine the intention of the parties. -. )f intention could not be determined! consider the value of the thing given( a. )f value of the thing more than value of the money! it is BAT b. )f value of the thing less than value of the money! it is $A0 c. )f both values are the same! $A0
Article 14%2. !ross inade-uacy of price does not a3ect a contract of sale, ecept as it may indicate a defect in the consent, or that the parties really intended a donation or some other act or contract.
Article 14%1. If the price is simulated, the sale is void, but the act may be shown to have been in reality a donation, or some other act or contract.
#5 !0SS I"A789A#$ '0I# "5: 1ere inadequacy of the price does not a2ectthe validity of the sale , except 3+4 5hen there isfraud! mistake! or undue i n6uence indicative of adefect in consent is present! 3-45hen it shows thatthe parties really intended a donation or some otheract or contract. #5 (;0 '0I# IS SI9LA57 1. The act may be shown to have been in realitya donation! or some other act or contract <. )f not and neither party had any intentionwhatsoever that the amount will be paid 3absolutely simulated4( the sale is void =. )f there is a real price but what is stated in thecontract is not the one intended to be paid3only relatively simulated4( the contract ofsale is valid but subect to reformation 3ect of !ross Inade-uacy of 'rice. #o e2ect. ceptions: 3meaning! sale is set aside4 +. )f consent is vitiated! such as 7)1%8 37iolence! )ntimidation! 1istake! %raud! 8ndue in6uence4 -. )f the parties intended a donation or some other act or contract 9. )f the price is so low as to be shocking to the conscience 3ect of Simulated 'rice.$ale is void! unless it could be shown that the parties intended a donation or some other act of liberality. o Price Simulated- #o price to support a contract of sale! such that neither party had any intention that the amount will be paid:void Price is False- there is a real price not declared:contract is valid! but the underlying deed is subect to o reformation to indicate the real price upon which the minds of the parties have met.
Article 14%>. 5he contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the ob?ect of the contract and upon the price. rom that moment, the parties may reciprocally demand performance, sub?ect to the provisions of the law governing the form of contracts.
'0#5I" #"50A#5 SAL.1eeting of the minds upon the thing and price. 3ect: ;arties may reciprocally demand performance !"0AL 09L: A contract of sale is perfected atthe moment there is a meeting of the minds upon thething which is the obect of the contract and upon theprice" consensual contract ception( 5hen the sale is subect to a suspensivecondition 089I0"5S: 1. (hen parties are face to face * when thereis absolute acceptance of an o2er that iscertain <. (hen thru correspondence or telegram *when the o2eror receives or had knowledgeof the acceptance =. (hen the sale is sub?ect to a suspensivecondition * from the moment the condition isfulo2erwhich needs to be absolutely accepted to give rise toperfected contract of sale. Business ads are mere invitations to make an o2erexcept when it appears to be otherwise.