ARTICLE 1466
-in construing a contact containing provisions characteristic of both the
contract sale and of the contract of agency to sell , the essential clauses of
the whole instrument shall be considered.
CONTRACT OF SALE
BUYER BECOMES THE OWNER OF THE THING
SOLD
BUYER PAYS FOR THE PRICE
SELLER WARRANTS THE THING SOLD
BUYER , AS A GENERAL RULE , CANNOT
RETURN THE OBJECT SOLD
BUYER CAN DEAL WITH THE THING SOLDAS HE
PLEASES BEING THE OWNER
CONTRACT OF AGENCY TO SELL
AGENT RECEIVES THE GOODS AS GOOD OF
THE PRINCIPAL WHO RETAINS THE OWNERSHIP
OVER THEM
AGENT DELIVERS THE PRICE TO THE PRINCIPAL
WHICH IN TURN HE GOT FROM HIS BUYER
AGENT MAKES NO WARRANTY FOR WHICH HE
ASSUMES PERSONAL LIABILITY AS LONG AS HE
ACTS WITHIN HIS AUTHORITY AND IN THE NAME
OF THE SELLER
AGENT CAN RETURN THE GOODS IN CASE HE
IS UNABLE TO SELL THE SAME TO A THIRD
PERSON
AGENT IN DEALING WITH THE THING RECEIVED
, MUST ACT ACCDG. TO THE INSTRUCTIONS OF
THE PRINCIPAL.
ART 1467 – CONTRACT OF A PIECE OF
WORK
CONTRACT OF SALE
VENDOR , IN THE ORDINARY COURSE OF BUSI.
MANUFACTURES OR PROCURES FOR THE
GENERAL MARKET WHETHER THE SAME IS ON
HAND AT THE TIME OR NOT
PRIMARY OBJECTIVE IS THE SALE OF
MANUFACTURED ITEM
WITHIN THE STATUTE OF FRAUDS
CONTRACT OF PIECE OF WORK
GOODS ARE MANUFACTURED SPECIALLY FOR
THE CUSTOMER AND UPON HIS SPECIAL
ORDER, AND NOT FOR THE GENERAL MARKET
SERVICES DOMINATE THE CONTRACT
NOT WITHIN THE STATUTE OF FRAUD
ARTICLE 1468- BARTER

 IF THE CONSIDERATION OF THE CONTRACT IS PARTLY IN MONEY AND PARTLY IN ANOTHER

THING , THE TRANSACTION SHALL BE CHARACTERIZED BY THE MANIFEST INTENT
OF THE PARTIES . IF INTENTION IS NOT CLEAR :
 THING> MONEY THEN IT IS BARTER
 THING = MONEY THEN IT IS SALE
 THING < MONEY THEN IT IS SALE
ART 1469 – PRICE

 THE PRICE MUST BE REAL , MUST BE IN MONEY OR ITS EQUIVALENT , MUST BE CERTAIN
 PRICE SHOULD BE FIXED BY A THIRD PERSON , BUT IF THE THIRD PERSON ACTS IN BAD FAITH ,
THE COURT SHALL FIX THE PRICE
ART. 1470 – GROSS INADEQUACY OF PRICE

 GROSS INADEQUACY OF THE PRICE DOES NOT AFFECT THE CONTACT OF SALE , EXCEPT AS IT
MAY INDICATE A DEFECT IN THE CONSENT , OR THAT THE PARTIES REALLY INTENDED A
DONATION OR SOME OTHER ACT OR CONTRACT.
ART. 1471 – SIMULATED PRICE

 IF PRICE IS SIMULATED , CONTRACT IS VOID

ARTICLE 1473 – FIXING OF PRICE

 FIXING OF PRICE CANNOT BE LEFT TO ONE OF THE CONTRACTING PARTIES

 BUT IF THE PRICE IS FIXED BY ONE OF THE CONTRACTING PARTIES AND SUCH IS ACCEPTED BY
THE OTHER , THE SALE IS PERFECTED
ARTICLE 1475 – PERFECTION OF CONTRACT
OF SALE

 THE CONTRACT OF SALE IS PERFECTED AT THE MOMENT THERE IS A MEETING OF MINDS

UPON THE THING WHICH IS THE OBJECT OF THE CONTRACT AND UPON THE PRICE.
 CONTRACTS ARE PERFECTED BY MERE CONSENT
 OWNERSHIP IS NOT TRANSFERRED UNTIL THE DELIVERY OF THE THING
 THE PARTIES MAY STIPULATE THAT THE OWNERSHIP IN THE THING , NOTWITHSTANDING ITS
DELIVERY , SHALL NOT PASS TO THE PURCHASER UNTIL AFTER HE HAS FULLY PAID THE
PURCHASE PRICE(1478, 1306)
 A CONTRACT OF SALE IS BINDING REGARDLESS OF ITS FORM
ARTICLE 1476 – SALE BY AUCTION

 PERFECTED BY FALL OF THE HAMMER

 ART. 1477- ACTUAL OR CONSTRUCTIVE DELIVERY
THEREOF

VENDEE UPON THE

 THE OWNERSHIP OF THE THING SHALL BE TRANSFERRED TO THE

ACTUAL OR CONSTRUCTIVE DELIVERY THEREOF.

 AFTER THE DELIVERY OF THE THING SOLD THAT THE PURCHASER ACQUIRES REAL RIGHT OR OWNERSHIP
OVER IT .
 NON-PAYMENT ONLY CREATES A RIGHT DEMAND PAYMENT OR RESCIND CONTRACT.
 THE ACT WITHOUT INTENTION IS INSUFFUCIENT : THERE IS NO TRADITION
 SALES INVOICE DOES NOT PROVE TRANSFER OF OWNERSHIP
 IN CONTRACT TO SELL , WHERE OWNERSHIP IS RETAINED BY THE SELLER AND IS NOT PASS UNTIL FULL
PAYMENT OF THE PRICE , SUCH PAYMENT IS POSITIVE SUSPENSIVE CONDITION.
ARTICLE 1478 – STIPULATION OF PRICE

 THE PARTIES MAY STIPULATE THAT OWNERSHIP SHALL NOT PASS TO THE PURCHASAER UNIL HE
HAS FULLY PAID THE PRICE
ARTICLE 1479 OPTION CONTRACT

 AN ACCEPTED UNILATERAL PROMISE TO BUY OR SELL A DETERMINATE THING FOR A PRICE

CERTAIN IS BINDING UPON THE PROMISOR IF THE PROMISE IS SUPPORTED BY A
CONSIDERATION DISTINCT FROM THE PRICE.
 UNACCEPTED UNILATERAL PROMISE – CREATES NO JURIDICAL OR LEGAL BOND
 AN OPTION CONTRACT IS A PREPARATORY CONTRACT
 THERE MUST BE A CONSIDERATION IN ORDER FOR AN OPTION CONTRACT TO BE BINDING
 ARTICLE 1479 VS. ART 1324 – OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE THE
ACCEPTANCE
ARTICLE 1482 – EARNEST MONEY

EARNEST OPTION

PART OF THE PURCHASE PRICE CONSIDERATION IS DISTINCT FROM THE

PURCHASE PRICE

GIVEN ONLY WHERE THERE IS ALREADY A APPLIES TO A SALE NOT YET PERFECTED
PERFECT SALE

BUYER IS BOUND TO PAY BALANCE IS NOT REQUIRED TO BUY

ARTICLE 1483

STATUTE OF FRAUD
• PERSONAL PROPERTY NOT LESS THAT 500
• ALL REAL PROPERTY
• ONE YEAR LEASE
• A REAL ESTATE PROPERTY SOLD ORALLY IS VALID BUT UNENFORCEABLE
• ELECTRONIC DOCUMENTS RA8792
ARTICLE 1484 – RECTO LAW

 IN A CONTRACT OF SALE OF PERSONAL PROPERTY THE PRICE OF WHICH IS PAYABLE IN

INSTALLMENT , VENDOR MAY EXERCISE THE FF. REMEDIES :
• EXACT FULFILLMENT OF THE OBLIGATION
• CANCEL THE SALE , SHOULD THE VENDEE’S FAILURE TO PAY COVER TWO OR MORE INSTALLMENTS
• FORECLOSE THE CHATTEL MORTGAGE , IF ONE HAS BEEN CONSTITUTED , IF THE VENDEE SHALL HAVE
FAILET TWO OR MORE INSTALLMENTS
• RECOVERY OF DEFICIENCY AFTER FORECLOSURE IS PROHIBITED
ARTICLE 1485 – LEASE OF PERSONAL
PROPERTY WITH OPTION TO BUY

THE PRECEDING ARTICLE SHALL BE APPLIED TO CONTRACTS PUPORTING TO BE LEASES ORF

PERSONAL PROPERTY WITH OPTION TO BUY
ARTICLE 1486 – STIPULATION AUTHORIZING FORFEITURE OF
INSTALLMENTS OR RENTS UNPAID

 STIPULATION AUTHORIZING FORFEITURE OF INSTALLMENTS OR RENTS

UNPAIDIS VALID AS LONG AS IT IS NOT UNCONSCIONABLE
ARTICLE 1487 – EXPENSES FOR EXECUTION AND
REGISTRATION

 THE VENDOR HAS THE DUTY NOT ONLY THE EXPENSES FOR THE EXECUTION OF THE SALE BUT
ALSO FOR THE REGISTRATION OF THE SAME IN THE ABSENCE OF ANY AGREEMENT
 ARTICLE 1488 – EXPROPRIATION OF PUBLIC
PROPERTY SHALL BE GOVERNED BY
SPECIAL LAWS

 .
ARTICLE 1489 – WHO MAY ENTER INTO A
CONTRACT / ABSOLUTE INCAPACITY

 ALL PERSONS , WHETHER NATURAL OR JURIDICAL , WHO CAN BIND THEMSELVES HAVE ALSO
LEGAL CAPACITY TO BUY AND SELL .
* XPN : ABSOLUTE AND RELATIVE INCAPACITY
SALE BY MINORS – IS VALID AND CANNOT BE PERMITTED TO EXCUSE THEMSELVES UNDER THE
DOCTRNE OF ESTOPPEL
ARTICLE 1490 – THE HUSBAND AND WIFE
CANNOT SELL PROPERTY TO EACH OTHER

 EXCEPTIONS:
 1. WHEN A SEPARATION OF PROPERTY WAS AGREED UPON IN THE MARRIAGE SETTLEMENTS
 2. WHEN THERE HAS BEEN A JUDICIAL SEPARTION OF PROPERTY UNDER ART. 134 & 135 OF FC
ARTICLE 1491- PERSON NOT ALLOWED TO
ACQUIRE BY PURCHASE

GUARDIANS – VOIDABLE – PRIVATE PARTIES ARE AFFECTED

AGENTS- VOID
ADMINISTRATOR OR EXECUTOR - VOID
PUBLIC OFFICERS & EMPLOYEES – VOID – PUBLIC INTEREST BEING INVOLVED
JUSTICES , JUDGES & PROSECUTING ATTORNEYS- VOID
ANY OTHER PERSON SPECIFIED BY LAW - VOID
ARTICLE 1492