Article 1481. In the contract of sale of goods by
description or by sample, the contract may be
rescinded if the bulk of the goods delivered do
not correspond with the description or the
sample, and if the contract be by sample as well
as description, it is not sufficient that the bulk
of goods correspond with the sample if they do
not also correspond with the description.
The buyer shall have a reasonable opportunity
of comparing the bulk with the description or
the sample
Article 1482. Whenever earnest money is given
in a contract of sale, it shall be considered as
part of the price and as proof of the perfection
of the contract
Slide 49
What is earnest money?
Earnest money is something of value given by
the buyer to the seller to show that the buyer is
really in earnest, and to bind the bargain.
It is actually a partial payment of the purchase
price and is considered as proof of the
perfection of the contract.
Distinguish earnest money, from option money
1. Earnest money is part of the purchase price,
while option money is the money given as
distinct consideration for an option contract;
2. Earnest money is given only where there is
already a sale, while option money applies to a
sale not yet perfected; and
3. When earnest money is given, the buyer is
bound to pay the balance, while the would-be
buyer who gives option money is not required to
buy
Can earnest money also become option money?
Option money may become earnest money if the
parties so agree
Article 1483. Subject to the provisions of the
Statute of Frauds and of any other applicable
statute, a contract of sale may be made in
writing, or by word of mouth, or partly in writing
and partly by word of mouth, or may be inferred
from the conduct of the parties.
Slide 50
In what form should contracts be in?
As a general rule, a contract may be entered
into in any form provided all the essential
requisites for its validity are present. (Art. 1356.)
It may be in writing; it may be oral; it may be
partly in writing and partly oral. It may even be
inferred from the conduct of the parties.
Sale is a consensual contract and is perfected
by mere consent
What do you remember from the statute of frauds?
The purpose of the Statute of Frauds is to
prevent fraud and perjury in the enforcement of
obligations depending for their evidence upon
the unassisted memory of witnesses by
requiring certain enumerated contracts and
transactions to be evidenced in writing.
The Statute of Frauds refers to specific kinds of
transactions and cannot apply to any other
transaction that is not enumerated therein.
In case the contract of sale should be covered by
the Statute of Frauds, the law requires that the
agreement (or some note or memorandum thereof)
be in writing subscribed by the party charged, or by
his agent; otherwise, the contract cannot be
enforced by action. (see Art. 1403[2].)
Give an example of a void sale, because the form
was not followed
Under the Statute of Frauds (Art. 1403[2, a, d, e].)
of the Civil Code, the following contracts must be in
writing; otherwise, they shall be unenforceable by
action:
(a) Sale of personal property at a price not less
than P500.00;
(b) Sale of real property or an interest therein
regardless of the price involved; and
(c) Sale of property not to be performed within a
year from the date thereof regardless of the nature
of the property and the price involved.
Article 1483. Subject to the provisions of the
Statute of Frauds and of any other applicable
statute, a contract of sale may be made in
writing, or by word of mouth, or partly in writing
and partly by word of mouth, or may be inferred
from the conduct of the parties.
Statute of frauds is applicable only to executory
contracts (no performance has been made by
both parties)
