Subject Matter

Sales only have thngs and rights as subject matter, in to the Requisites As to R
and T they are practically the same as OBLICON
If you remember in 14581 - this metions a Determinate Thing Q: What if the object of the
contract is a generic thing? May it be a valid sale? A: In 1460 2 this requisite saying that a The
requisite that a thing be determinate is satisfied if at the time the contract is entered into,
the thing is capable of being made determinate without the necessity of a new or further
agreement between the parties. Clearly with this provision, a sale involving a generic thing
may be valid as long as the time of the contract is entered into, the thing is capable of being
made determinate without the need of a new or further agreement between the parties.
Example: A sale of this bottle of water (e.g vital purified drinking water 500 ml), this that a
sale of determinate thing (assuming I am not holding this one), that thing si clearly a generic
gthing bec 1460 would tell us that a thing is considered determinate if A thing is
determinate when it is particularly designated or physically segregated from all others of
the same class. But would such sale be a valid contract? The answer is yes. Although this is
a generic thing, nonetheless, the thing is can be made determinate at the time to contract
was entered into w/o the need of a new or further agreement. In a way everything is capable
to be made determinate, pwede naman ang question lang is kalian. Everytime you buy a
generic thing the moment it is delivered to you it clearly becomes determinate kasi by
that time it becomes physically segregated from all others of the same class BUT THAT
IS NOT THE ONLY REQUIREMENT aside from capable of being made determinate, it
should be at the time the contract was entered into and not at any other point in time (e.g.
not at the time it was delivered) AND without the need of a new or further agreement
wala na kayo ibang paguusapan o debate ano ung object ng contract. Q. What if ang
contract ng sale is a dog is it a valid sale? A: no. kasi although dog nga and capable of being
made determinate at the time the contract was entered into, but when it was delivered, the
dog is an old one. Hence, the buyer would definitely reject such dog. Hence, there would be
a need for a further agreement for the contract to be valid. Hence, that contract per se is not
a valid sale involving a generic thing.
Q. Which phrase, most accurately completes the statement: if at the time the contract of
sale was perfected thing w/c is the object of the contract was ENTIRELY LOST: a. The buyer
bears the risk of lost; b. the contract shall be without any effect; c. the seller bears the risk
of lost; d. the buyer may withdraw from the contract / A: If the thing which is the object of
the contract was entirely lost, THEN THERE CAN NEVER BE A VALID CONTRACT. Kaya, The
buyer may withdraw from the contract? MALI! Theres nothing to withdraw from kasi void
naman yan kaya lang alin ang tama?
a. The buyer bears the risk of lost if this is the case, the buyer can never acquire
ownership. Philippine Law follows res perit domino whoever is the owner at the time of

1 ARTICLE 1458. By the contract of sale one of the contracting parties obligates
himself to transfer the ownership of and to deliver a determinate thing, and the
other to pay therefor a price certain in money or its equivalent.
A contract of sale may be absolute or conditional

2 ARTICLE 1460. A thing is determinate when it is particularly designated or physically

segregated from all others of the same class.

The requisite that a thing be determinate is satisfied if at the time the contract is entered
into, the thing is capable of being made determinate without the necessity of a new or
further agreement between the parties.
the lost will bear the lost THEREFORE the buyer will never be the one to bear the loss.
PERO dapat ba ang tamang sagot is C - the seller bears the risk of lost? NO the right
answer is B - the contract shall be without any effect, kasi THE SELLER IS NOT ALWAYS THE
OWNER OF THE THING. kaya if the seller is the owner, he will not be the ONE TO BEAR THE
LOSS. May comment lang sa question3
INTO THE PRICE The law does not require the price to be in a specific currency, the law
requires to that the price be in money and requires it to be CERTAIN the price certain in
money4 Q: Can the seller compel the buyer to pay a currency w/c is NOT PHILIPPINE
CURRENCY A: Today, the answer is YES if it was agreed upon atht the price will be paid in a
currency not in Philippine PESO, because the LAW WOULD ALLOW SUCH STIPULATION, Under
RA 8183 whicjh took effect in 19965
- RULES on PRICE = RULES ON PRiCE under OBLICON is applicable in SALES. Gross
inadequacy of the Price as a rule does not affect the VALIDITY OF THE CONTRACT
ALTHOUGH it may manifest vitiation of the consent PERO it is not a PRESUMPTION that
theres vitiation of consent The one claiming (ex the seller) that theres vitiation of consent
has tbe BURDEN OF PROVING that consent was vitiated that is why the price is grossly
inadequate. BUT ALSO if may reflect that the true intention is not a CONTRACT OF SALE (it
can be DONATION)

AS FOR THE MOTIVE - we have already discussed that applicable din ito sa sales

SALE OF HOPE- like sale of a lotto ticket, which is a SALE OF ALEATORY CONTRACT, the law
provides that it is only a sale of VAIN HOPE which is VOID.

EMPTIO SPEI distinguished from EMPTIO REI SPERATAE6 sale of future goods/things -
Philippine Law recognizes this kind of contract as long as the thing has the potential of
coming into existence basta hindi sila existing at the time of the sale valid sya. Ex mga
magsasaka wala pa man ang mga bigas na harvest na ibenta na nila.

LATIN TERMS sa BAR pang shock and awe balikan mo nalang pag may time ka. Basta
magsulat ka lang kahit hindi moa lam basta yung nalalaman mo. NEVER LEAVE A QUESTION
UNANSWERED

PERFECTION

3 Yung 1st sentence may defect: How could a contract be perfected whenin the 1 st
place the thing does not exist namymore

4 Unlike in lease walang ganon, sa price sa lease it is not required to BE CERTAIN

but sa SALE it has to be certain.

5 Before this , in RA 529, even if the partied would stipulate that amt shall be paid
in USD, the creditor cannot compel that payment should be in USD kasi noon all
currencies should be delivered to the Central Bank within 24 hours dfrom the time
the same was received BY ANY RESIDENT Of this COUNTRY. Ganon nangangailangan
ang bansa noon ng dollars. PD 529 prohibits payment in any other currency. In
1970s there are 2 central Banks (one in Mabini, one in Binondo) kasi businessmen
who wanted dollars, noon wala dollars. Now, theres no more problem with currency
in USD.

6 Make sure you come up with Distinguish A to B questions sa exam nya.

14757 is clear that is why I have told you this contract is a consensual contact COS 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.

How about sale of Rights? Is this also consensual ? YES because 1475 is applicable in sale of
rights.

BEFORE PERFECTION, THERE CAN BE OPTION AGREEMENTS (Contracts of Option) in a COS

pertains to EARNEST MONEY (EM) as far as sales are concerned. EARNEST MONEY forms
part of the price, in a way it is a proof that offering is in earnest seryoso sya sa pagbili so
he would give earnest money PERO the law if Vclear that EM is just a proof of the perfection
of the COS, hindi sinabi na with the existence of an EM the contract had already been
perfected. It is just a proof but there can actually be NO Perfected contract (e.g. scenarios
EM pertains only to the cause/price, pero hindi agreed on the object of the contract , kung
anong lupa, hence the contract will be void., ANOTHER, even if theres EM and Obj was clear,
there MAY NOT BE perfected sale if theres NO AGReEMENT On the TOTAL contract price. EM
is considered part of the price, eh papaano kung di sila nagkasundo sa total price? Walang
perfected contract of sale8 in that scenario)

STOP: 18:20

7 ARTICLE 1475. 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.From that moment, the
parties may reciprocally demand performance, subject to the provisions of the law governing
the form of contracts.

8 Requisites of COS