FINAL EXAM QUESTIONS: 1. Fill in the blanks- Art 1458. By the contract of sale one of the contracting parties obligates himself to transfer the ownership and to deliver a determinate thing, and the other to pay therefore a price certain or its equivalent. 2. Define and give each an example the following elements of a contract of sale: a. essential – those without which a contract of sale would not exist (examples: consent, subject matter, and price certain in money or its equivalent) b. natural – deemed to exist in the absence of any contrary stipulations (examples: warranty against eviction and warranty against hidden defects) c. accidental – those which may be present or absent depending on the stipulations of the parties (examples: terms, interest, penalty, time or place of payment, and other conditions agreed upon) 3. Missor offered to sell his used Giant Anthem mountain bike to Misee for P150,000, the latter asking for 7 days to make up his mind whether to buy it or not. Six days later, Misee, with cash ready, went to Missor to buy the bike. "Sorry mate, had it sold to Thirdee yesterday, said Missor, is Missor liable to Missee for damages? Explain. -Missor is not liable to Misee because what happened between them was a unilateral promise. Since the promise is not supported by a consideration distinct from the price Missor has the right to sell his goods to other people aside from Misee. A unilateral promise to buy or to sell, even if accepted, is only binding if supported by a consideration. 4. Sendoy sold his land to Bewan, who took possession at once but did not bother to register the sale at the Register of Deeds (ROD) of the province where the land is located. A year later Sendoy sold the same to Betwo, who paid twice the amount paid by Bewan and immediately registered the sale unto the ROD. Betwo, armed with a Certificate of Title in his name, demanded Bewan to vacate the property. Assuming that Betwo had known the prior sale, who is the rightful owner of the land? Reason out your answer. - According to Article 1544, if the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should be movable property. Despite the fact that he first registers the land, the fact that Betwo is aware of the prior sale to Bewan renders him acting in bad faith in this instance. In addition, the article stipulates that good faith must underlie the grant of any preferential rights to the person claiming ownership of the movable object. Consequently, the legitimate land owner is Bewan. 5. Define warranty in a contract of sale. What are the implied warranties in sales? -A warranty is any representation made by the seller of the thing with respect to its character, quality, or ownership, by which he induces the buyer to purchase the same relying on said representation. -The implied warranties in sales are implied warranty as to seller’s title, implied warranty against hidden defects, and implied warranty as to fitness or merchantability 6. Mael purchased one box of Tagal lPawikan Capsules for Php 5,000.00. After a week, he went back to the same pharmacy demanding a refund, claiming it has no effect on his sexual stamina as advertised on radio. You as manager, reason out on a legal basis. -As the manager I shall give Mael a refund since according to the Civil Code of the Philippines any affirmation of fact or any promise by the seller relating to the thing, the natural tendency of which is to induce the buyer to purchase the thing. Whether we know or not about the hidden defects we shall be liable for the express warranty. The advertisement on the radio is a form of affirmation that led to Mael purchasing the product. 7. Under the Realty Instalment Buyer Protection Act (RIBPA RA. 6552), after having paid in installment for 8 years of a residential unit a total of Php1,000,000, how much cash surrender value the buyer is entitled a refund if the contract is cancelled by default? -The buyer is entitled Php.650,000 from refund. According to the RA. 6552, if the contract is cancelled, the seller shall refund to the buyer the cash surrender value of the payment equivalent to 50% of the total payment made plus 5% every year after 5 years of installment, given that the total CSV does not exceed 90%. Since the installed payment occurred within 8 years, there are 3 years to account for the 5% additional refund, a total of 65%. Therefore, 65% of 1,000,000 is the total CSV the buyer shall entitle for refund. 8. When is "bulk sale" applicable? What are the requirements for a bulk sale to be valid? - The bulk sale law applies when taxpayers transfer more than 51 percent of assets, including real property and classes of assets such as real estate or machinery and equipment. It requires all purchasers to secure from sellers bulk sale clearance certificates. -Requirements: a. The transferor shall deliver to the latter a written sworn statement b. Such sworn statement must be recorded in the Bureau of Commerce c. The transferor must make a full detailed inventory 9. Siblings A, B, and C, are co-owners of an ancestral house. C sold his interest in the property to Janggo, C's shabu supplier. A and B come to you for advice on their plan to oust Janggo of his interest in the co-ownership. Is there any legal way possible? - Yes, A and B can oust Datu Janggo according to ART. 1620. A co-owner of a thing may exercise the right of redemption in case the shares of all the other-co-owners or of any of them are sold to a third person. If the price of the alienation is grossly excessive, the redemptioner shall pay only a reasonable one. Since A and B are co-owners and that Datu Janggo is a third party, the formers can exercise their right of redemption sharing the interest sold to Datu Janggo in proportion. 10. In the 1930's your Lolo bought a 10 hectare land from Datu Sibujing for P500. Fast forward 2022, after a series of conveyances you become its present owner. Datu Sibujing's greatgrandson Kulafu, comes to you, tendering the same amount Php 500 to buy the same land back from you, saying his illiterate Lolo was defrauded by your Lolo to sell the land for a measly sum. Reason out on a legal basis, if you do not like to sell it. - Given that land property does not lose its value over time, the grandson Kulafu may use the past transaction for their own benefit claiming that his lolo has been defrauded. Additionally, during the year when the land was purchased was when the time where we could buy a land the same price as the land's actual value. In addition, they need to provide evidence that my lolo defrauded Datu Sibujing or a legal basis for their claim in order to establish that it is factual.
