Assignment.docx

Formalities the following must appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person; (4) The cession of actions or rights proceeding from an act appearing in a public document. All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one. But sales of goods, chattels or things in action are governed by Articles, 1403, No. 2 and 1405. (1280a) Likewise, the contracts of sale are also governed by the Statute of Frauds which may prohibit its enforceability and bar its ratification if not complied with. The Statue of Frauds, however only apply to executory contracts or where there are no performance yet and not to those already consummated even if partially. 1. Express Warranty- any affirmation of fact or any promise by the seller relating to the thing is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase the same, and if the buyer purchases the thing relying thereon. 2. The vital question is express warranty is: whether or not a statement or affirmation accompanying as sale is a warranty depends upon whether the conditions were such that the buyer had a right to understand and did not understand that was said by the seller was meant as a warranty. 3. Implied warranty-arises from the mere fact that a contract of sale is perfected. It does not apply to one who sells by virtue of an authority in fact or in law (sheriff sale). There are two kinds of implied warranty: 

Warranty against eviction- An implied warranty on the part of the seller that he has a right to sell at the time when ownership is to pass and that the buyer shall from that time have and enjoy the legal and peaceful possession of the thing

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Warranty against hidden defects-An implied warranty that the thing shall be free from any hidden defects or any change or encumbrances not declared or known to the buyer

-Hidden defects are those which are not visible to vendee who is not an expert and to a vendee who is an expert but even with the use of his trade or profession could not detect such defect. -Requisites of hidden defects: The defect must exist at the time of the sale, must be important or serious, notice was given to the vendor within a reasonable time and within prescriptive period and no waiver was made 4. Warranty against eviction- Eviction is the judicial process whereby the vendee by virtue of a final judgment based on a right prior to the sale or an act imputable to the vendor, is deprived of the whole or a part of the thing purchased. In order for the vendor to be liable for his warranty, the vendor must be summoned in the suit for eviction at the instance of the vendee and there is no waiver on the part of the vendee. Seller rights Action for payment of the price Action for damages for non-acceptance of the goods Action for rescission Buyers rights Action for specific performance Action for rescission or damages for breach of warranty The remedies of the seller in case of default in payment of price when t The seller has reasonable grounds to believe that the property sold will be lost so he may rescind the sale And when the buyer fails to pay the purchase price

The remedies of the buyer in case of disturbance in the property and in condominium projects 1. Suspension of payment-If the buyer gets disturbed in the possession and ownership or has a reasonable grounds to fear such disturbance of the property, by a vindicatory action or a foreclosure of mortgage, the buyer may suspend payment until the disturbance is removed by the seller or seller gives security for the return of the price in proper case unless otherwise stipulated. 2. Subdivision and condominium projects-PD 957 provides that when the owner or developer of the condominium project fails to develop it according to the approved plan and within the time limit for complying with the same, the buyer who pays in installment may desist from paying further provided he gives due notice to the seller. The law also allows the buyer to be reimbursed of all the amount paid. Obligations

What then are the obligations of the agent? Under the Civil Code, the principal obligations of an agent are: To carry out the agency in accordance with its terms To answer for the damages which through his non-performance the principal may suffer To act in accordance with the instructions of the principal Not to carry out the agency if its execution would manifestly result in loss or damage to the principal To answer for damages should he prefer, in case of conflict, his own interests to those of the principal To render an account of his transactions and to deliver to the principal whatever he may have received by virtue of the agency To be responsible for the goods received by him, to sell on credit only with the consent of the principal and to collect with due diligence the credits of the principal To answer for his fraud or negligence On the other hand, in the absence of contractual stipulations to the contrary, the following are the obligations of the principal: a. To comply with all the obligations which the agent may have contracted within the scope of his authority [Articles 1868 &1883, Civil Code]; b. To advance to the agent, should the latter so request, the sums necessary for the execution of the agency [Article 1912, Civil Code]; c. To reimburse the agent for all advances made by him provided the agent is free from fault [Ibid]; d. To indemnify the agent for all damages which the execution of the agency may have caused the later without fault or negligence on his part [Article 1913, Civil Code]; and e. To pay the agent the compensation agreed upon, or if no compensation was specified, the reasonable value of the agent’s services. [Articles, 1875 and 1306, Civil Code; De Leon, The Law on Sales, Agency and Credit Transactions, 1999, pp. 277-278]

obligations of the agent agent bound by his acceptance to carry out the agency and is liable for non performance. General Obligations: 1. Good faith and loyalty to his trust 2. Obedience to principal’s instruction 3. Exercise of reasonable care Specific Obligations of the Principal To carry out the agency according to its terms 1884 To answer for the damages which through his non performance the principal may suffer To finish the business already begun on the death of the principal, should delay detail any danger

To observe the diligence of a good father of a family in the custody and preservation of the goods forwarded to him by the owner in case he declines an agency, until agent is appointed To advance the necessary funds should there be a stipulation to that effect To act in accordance with the instructions of the principal

Not to carry out the agency if its execution would manifestly result in loss or damage to the principal To answer for damages should he prefer in case of conflict, his own interests to those of the principal Not to loan to himself without the consent of the principal when he has been authorized to lend at interest To render an account of his transactions and to deliver to the principal whatever he may have received by virtue of the agency Distinguish goods by countermarks and designate the merchandise respectively belonging to each principal, in the case of a commission agent who handles goods of the same kind and mark, which belong to different owners To be responsible in certain cases for the acts of the substitute appointed by him To pay interest on funds he has applied to his own use (1896) To inform the principal, where an authorized sale of credit has been made, of such sale (1906) To bear the risk of collection, should he receive also on a sale, a guarantee commission (1907) To indemnify the principal for damages for his failure to collect the credits of his principal at the time that they become due To answer for his fraud or negligence Obligations of the principal Comply with all the obligations which the agent may have contracted within the scope of his authority and in the name of the principal To advance to the agent, should the latter so request, the sums necessary for the execution of the agency To reimburse the agent for all advances made by him provided the agent is free from fault To indemnify the agent for all the damages which the execution of the agency may have caused the latter without fault or negligence on his part To pay the agent the compensation agreed upon, or if no compensation was specified, the reasonable value of the agent’s services

obligations of the bailee To pay for the ordinary expenses for the use and preservation of the thing loaned, to take good care of the thing with the diligence of a good father of a family, liability for loss, even if loss through fortuitous event, in certain circumstances, liability for deterioration of thing loaned, except under certain circumstances and obligation to return the thing upon expiration of term or upon demand in case of urgent need.

The guarantor has the right to benefit from excussion/ exhaustion The guarantor has the right to besubrogated to the rights of the creditor The guarantor has the duty to notify the debtor before paying the creditor The guarantor cannot make paymentbefore the obligation has become due The guarantor may proceed against the debtor even before payment has been made The creditor has the right to secure a judgment against the guarantor prior to the excussion The creditor has the duty to make prior demand for payment from the guarantor The guarantor has the duty to set up the benefit of excussion The creditor has the duty to resort to all legal remedies The creditor has the duty to notify the guarantor in the action against the debtor

Obligations of the bailor To allow the bailee the use of the thing loaned for the duration of period stipulated or until the accomplishment of the purpose for which commodatum was constituted. To refund extraordinary expenses for the preservation of the thing loaned provided bailor is notified before the expenses were incurred. To refund 50% of the extra ordinary expenses arising from actual use of bailee of the thing loaned To pay damages to bailee for known hidden flaws in the thing loaned.

RIGHTS AND DUTIES OF CREDITOR IN APLEDGE Shall take care of the thing pledged with the diligence of a good father of a family (2099) Has right to reimbursement of the expenses made for preserving the thing.

Shall be liable for loss or deterioration of the thing by reason of fraud, negligence, delay or violation of the terms of the contract, but not for fortuitous events (2099). May bring actions pertaining to the owner of the thing in order to recover it from, or defend it against, a third person Cannot use the thing without the authority of the owner. If he uses the thing without authority, or if he misuses the thing when he was authorized to use it, the owner may ask that it be judicially or extrajudicially deposited (2104). May use the thing if necessary for its preservation (2104). May either claim another thing in pledge or demand immediate payment of the principal obligation if he is deceived on the substance or quality of the thing pledgee Cannot deposit the thing pledged with a third person, unless there is a contrary stipulation Is responsible for the acts of his agents or employees with respect to the thing pledged Has no right to use the thing or to appropriate its fruits without authority from the owner May cause the public sale of the thing pledged if, without fault on his part, there is danger of destruction, impairment ordimunition in value of the thing. Theproceeds of the auction shall be a security for the principal obligation RIGHTS AND DUTIES OF THE PLEDGOR Takes responsibility for the flaws of the thing pledged Cannot ask for the return of the thing against the will of the creditor, unless and until he has paid the debt and its interest, with expenses in proper cases

Payment of the debt Sale of the thing pledged at public auction Thing pledged is returned by thepledgee to the pledgor or owner Written statement by the pledgee that he renounces or abandons the pledge.

to pay taxes and charges on the estate, including necessary expenses to apply all the fruits, after receiving them, to the payment of interest, if owing, and thereafter to the principal to render an account of the fruits to the debtor to bear the expenses necessary for its preservation and repair

action for specific performance Petition for the sale of the real property as in a foreclosure of mortgages under Rule 68 ofthe Rules of Court

The debtor can reacquire the immovable provided he already pay his obligation to the creditor.