QUIZ #2 (PARTIES TO A CONTRACT OF SALE) APPLICABILITY TO COMMON-LAW SPOUSES.
- Status of contract is void (per case law)
CAPACITY OF PARTIES - Rationale, evil sought to be avoided is GENERAL RULE. All parties with capacity to present contract can enter into a valid contract of sale. 3. SPECIFIC DISQUALIFICATIONS. EXCEPTIONS. Restrictions on capacity to act GUARDIANS. With regards to property of ward 1. Minor during period of guardianship. (fraud/deceit) 2. Deaf - Ratifiable in the sense that only private 3. Insane wrong is involved (voidable) 4. Civil interdiction AGENTS. With regards to property of principal. 5. Judicially declared incompetent (fiduciary relationship – trust relationship) - Ratifiable in the sense that only private KINDS OF INCAPACITY wrong is involved (voidable) 1. ABSOLUTE INCAPACITY. In the case of EXECUTORS AND ADMINISTRATORS. With persons who cannot bind themselves, where regards to the estate of the deceased. necessaries are sold and delivered to a minor - Ratifiable in the sense that only private or other person without capacity to act, he wrong is involved (voidable) must pay a reasonable price therefor. PUBLIC OFFICERS AND EMPLOYEES. With regards NECESSARIES. Those things which are needed for to the property of the estate sustenance, dwelling, clothing and medical - Not ratifiable in the sense that public attendance, in keeping with the financial wrong is concerned (null and void) capacity of the family of the incapacitated LAWYERS AND JUDGES. With regards to property person. in litigation. 2. RELATIVE INCAPACITY. Where it exists only - Not ratifiable in the sense that public with reference to certain persons or a wrong is concerned (null and void) certain class of property. Reason (due to public policy; ground for CONTRACTS WITH THIRD PARTIES. Status of malpractice): contract is valid. 1. Client is at the mercy of the lawyer. BETWEEN SPOUSES. 2. Law is a noble profession. Sale to spouses (void) 3. 2 masters – 2 interest; one cannot serve Reasons: 2 masters at the same time 1. Prevent defraudation of creditors. Exception (contingent fee arrangement): 2. Avoid situation where dominant spouse 1. Amount of legal fees is based on a value take advantage of others. of property. 3. Avoid circumvention on prohibition of 2. Property itself is involved. donation between spouses. Exception: (SUBJECT MATTER) 1. When a separation of property was agreed upon in the marriage A. CONSENT settlements. 1. Capacity Marriage Settlement (Ante-nuptial Contract). An 2. Offer and acceptance agreement entered into by persons who are OFFER. A proposal made by one party (offerer) about to be united in marriage, and in to another (offeree), indicating a willingness to consideration thereof for the purpose of fixing enter into a contract. the property relations that would be followed by ACCEPTANCE. The manifestation by the offeree them for the duration of the marriage. of his assent to all the terms of the offer. 2. When there has been a judicial 3. No vitiation separation of property. CAUSES WHICH VITIATE FREEDOM TO CONSENT CONTIGENT (FUTURE INHERITANCE). Any a. Mistake property or right, not in existence or capable of b. Violence determination at the time of the contract, that a c. Intimidation person may inherit in the future, such person d. Undue influence having only an expectancy of a purely hereditary e. fraud right. Inheritance ceases to be future upon the death of the decedent or deceased. B. SUBJECT MATTER EMPTION REI SPERATAE (SALE OF THINGS 1. Licit or legal (within the commerce of HAVING POTENTIAL EXISTENCE). It is reasonably men) certain to come into existence as the natural a. LICIT OR LEGAL. It should not be increment or usual incident of something in contrary to law, morals, good existence already belonging to the seller. customs, public order, or public EMPTIO SPEI (SALE OF HOPE). The efficacy is policy. deemed subject to the condition that the thing b. DETERMINATE. When it is will come into existence. particularly designated or physically THINGS SUBJECT TO RESOLUTORY CONDITION. segregated from all others of the Things subject to a resolutory condition may be same class. the object of the contract of sale. (1465) c. NOT BE IMPOSSIBLE, PER SE A resolutory condition is an uncertain event (PHYSICALLY) OR PER ACCIDENS upon the happening of which the obligation (or (LEGALLY) right) subject to it is extinguished. Hence, the 2. Determinate or determinable right acquired in virtue of the obligation is also DETERMINATE SUBJECT MATTER. A thing is extinguished. determinate when it is particularly designated or 4. Quantity of subject matter not essential physically segregated from all others of the same for perfection class. The object of every contract must be DETERMINABLE SUBJECT MATTER. It is sufficient determinate as to its kind. The fact that the that the thing is determinable or capable of quantity is not determinate shall not be an being made determinate without the necessity obstacle to the existence of the contract, of a new or further agreement between the provided it is possible to determine the same, parties to ascertain its identity, quantity, or without the need of a new contract between the quality. parties. (1349) GENERIC NON-DETERMINABLE OBJECTS. SALE OF UNDIVIDED INTEREST. The legal effect is C. PRICE to make the buyer a co-owner in the thing sold. 1. Its money or its equivalent SALE OF UNDIVIDED SHARE IN MASS. The subject This refers to the “price certain in money or its matter is an incorporeal or intangible right. equivalent.” Hereof, ownership passes to the buyer by the In order that the price may be considered intention of the parties. certain, it shall be sufficient that it be so with 3. Existing, future or contingent reference to another thing certain, or that the EXISTING, FUTURE OR CONTINGENT. Refers to determination thereof be left to the judgment of subject matter that are existing and not existing a specified person or persons. (1469[1]) but capable of existence (pursuant to present) 2. Certain EXISTING GOODS. Goods owned or possessed by CERTAIN. The fixing of the price can never be left the seller. to the discretion of one of the contracting FUTURE GOODS. Goods to be manufactured, parties. However, if the price fixed by one of the raised, or acquired. parties is accepted by the other, the sale is perfected. (1473) 3. Real/simulated REAL. Gross inadequacy of price does not affect a contract of sale, except as it may indicate a defect in the consent, or that the parties really intended a donation or some other act or contract. (1470) SIMULATED. If the price is simulated, the sale is void, but the act may be shown to have been in reality a donation, or some other act or contract. (1471)