Sales and Lease Assignment

SALES AND LEASE

I. CONTRACT OF SALE, CONCEPTS (NCC 1458)

III. Characteristics (consensual, bilateral, onerous, commutative, nominate and

principal)

IV. Essential Requisites

V. Sale as Distinguished from other Contracts

1. Barter (NCC Arts. 1638 & 1468)

2. Donation
3. Contract for piece of work (NCC Art. 1467)
4. Agency to Sell (NCC Art. 1466)
5. Lease

VI. Kinds of Sale

1. Absolute
2. Conditional
1. Contract to Sell as distinguished from Contract of Sale (NCC Art. 1466) (Cases:
Dignos v. CA, G.R. No. L-59266. February 29, 1988; Hulst v. PR Builders, G.R. No.
156364, September 3, 2007)

II. OBJECT OF SALE (NCC 1306)

A. Subject Matter must be Licit (NCC Art. 1459)

B. Subject Matter must be Determinate (NCC Art. 1460)
C. Sale of Things having Potential Existence (NCC Art. 1461)
D. Sale of Hope or Expectancy (NCC Art. 1461)
1. Emptio Rei Speratae
2. Emptio Spei
E. Sale of Existing and future Goods (NCC Art. 1462)
F. Sale of Undivided Interest (NCC Art. 1463)
G. Sale of Fungible Goods (NCC Art. 1464)
H. Sale of Things subject to a resolutory condition (NCC Art. 1465)

III. PRICE

A. Certainty of price (NCC Art. 1469) (Cases: Toyota Shaw, Inc. v. CA GR No. L-
116650, May 23, 1995; Sps. Edrada v. Sps. Ramos, G.R. No. 154413, August 31,
2005)

B. Who may determine price (NCC Art. 1473-74

C. Effect of gross inadequacy of price (NCC Art. 1470) (Cases: Hulst v. PR Builders
Inc., G.R. No. 156364, September 3, 2007)

D. Effect where price is simulated (NCC Art. 1470)

E. Certainty of price of securities, grains, liquids, etc. (NCC Art. 1472)

F. Effect of failure to determine price (NCC Art. 1474)

G. Meeting of minds as to price

IV. FORMATION/PERFECTION OF CONTRACT OF SALE (NCC Art. 1475)

Lloyds Enterprises and Credit Corp. vs. Dolleton 555 SCRA 143; Heirs of Mascunana
vs. CA, 461 SCRA 186

Option contract (NCC Art. 1479)

option contract distinguished from contract of sale (Case: Sanchez vs. Rigos, G.R.
No. L-25494, June 14, 1972)

B. Mutual promise to buy and sell (NCC Art. Art. 1479)

C. Status of advertisements (NCC Arts. 1325-26)

D. Acceptance by letter or telegram (NCC Art. 1319)

E. Perfection of sale by auction (NCC Art. 1476)

F. Earnest money (NCC Art. 1482)

- earnest money distinguished from option money

G. Form of sales (NCC Arts. 1483, 1874, 1581, 1403[2, a,d,e])

H. Right of first refusal (Cases: Guzman Bocaling & Co. v. Bonnevie, G.R. No. 86150,
March 2, 1992; Riviera Filipina, Inc. v. CA et. al. GR No. 117355, April 5, 2002;
Paranaque Kings Enterprises, Inc. v. CA. GR No. 111538, February 26, 1997)