Laggui - 2accty-A - Law Midterm Exam

NAME: JOMARIE S.
LAGGUI DATE: MAY 28, 2021 (01:00-04:00 PM)

YR/CRS/SEC.: 2- BS ACCOUNTANCY-A PROCTOR: GREGORIO C. TORRES
Time sent: 2:33pm
MIDTERM EXAM
REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS
1. A.) According to article 1458, Contract of sale is a contract whereby the seller or
the vendor obligates himself to deliver something to the buyer or the purchaser or
the vendee who binds himself to pay a sum of money that is equal to the
delivered thing.
B.) No better title, I will not insist myself that I am the owner of the laptop
according to article 1505, where the goods are sold by a person who is not the
owner thereof, and who does not sell them under authority, I will not obtain the
title to the laptop sold because it was undergone in illegal transaction and the
stranger is not the real owner, it has already shown by the real owner the proof of
purchase with similar serial number proving that she is the rightful owner. Unless,
the owner of the goods is by his conduct precluded from denying the seller’s
authority to sell. Thus, the transfer of ownership is void.
2. A.) the significance of the presence of elements of a contract binds the obligation
exists for the contract of sale. Without these elements, there is no sales
happened. Thus, these elements must be performed in order for the contract of
sale will be validated and it will be legally enforced and also in favor to the seller
and the buyer.
B.) The essential elements or requisites of a contract of sale are the consent or
meeting of the minds (a consent on the parties to perform their obligation as
seller or vendor and buyer or vendee), object or subject matter (denotes to the
determinate thing of the contract) and cause or consideration (refers to the price
certain in money or its equivalent). These elements can be distinguished from
natural and accidental elements. Natural elements are those which are deemed
to exist in certain contracts, in the absence of any contrary stipulations like
warranty against evection or hidden defects while accidental elements are those
which may be present or absent depending on the stipulations of the parties, like
conditions, interest, penalty, time or place of payment and others.
3. The accordance with article 1475, The perfection of contract of sale occurs at the
time where there is a meeting of minds upon the object of the contract and the
price equivalent. The legal effect as to the ownership of the thing sold, the parties
may commonly demand performance at this instant which is subject to the
provisions of the law governing the form of contracts.
4. According to the Article 1497, The significance of the thing sold shall be
understood as delivered of a property as far as the rights of the buyer is
concerned, when it is placed in the control and possession of the vendee. This
means that thing sold will be recognized as delivered if that thing is in now the
possession and control of the vendee. It is not considered delivered if the thing is
still in the hands of the vendor which binds the seller to take care and preserve
the thing until it is recognized as delivered to the vendee.
5. The rightful owner of the land is Bewan because the thing sold is an immovable
property in which according to Article 1544, the ownership shall belong to the
person acquiring it who in good faith first recorded it in the registry of property.
Betwo successfully registered the sale unto the Register of Deeds and armed with
the Certificate of Title, however, he is not in good faith because he knows about
the prior sale. Thus, the ownership of the land belongs to the person who first
taken possession in good faith which is Bewan.
6. Warranty is defined in any representation made by the seller of the thing with
respect to its character, quality, or ownership, by which he induces the buyer to
purchase the same relying on said representation. The implied warranties in sale
are: implied warranty as to seller’s title, implied warranty against hidden defects or
unknown encumbrances, and implied warranty as to fitness or merchant warranty.
7. The saleslady is just right to deny the refund of the sale according to article 1546
because part of the expressed warranty is the caveat that explains or warns
Manong Mael purchase the thing because he was induced by the express
warranty. It is immaterial whether the saleslady did not know that the warranty
was false or true.
8. The buyer shall be entitled for refund with the amount of Php 650,000 (65% x
1,000,000). This is in accordance with the law that if the contract is cancelled, the
buyer shall be entitled to the refund of cash surrender value equal 50% of total
payments made, fter five years of installment and additional 5% every year but
not to exceed 90%.
9. Bulk sale is the secret sale in bulk of all or substantially all of a merchant’s stock
of goods. According to the law, bulk sale is any sale, transfer, mortgage or
assignment of- a stock of goods, wares, merchandise, provisions, or materials
otherwise than in the ordinary course of the business; all or substantially all, of the
fixtures and equipment used in the business of the vendor, mortgagor, transferor,
or assignor.
The requirements for a valid bulk sale are: if the sale or transfer is in the ordinary
course of trade and the regular prosecution of the business of the vendor; if it is
made by one who produces and delivers a written waiver of the provisions of the
Bulk Sales Act from his creditors; if it is made by an executor, administrator,
receiver, assignee in insolvency, or public officer, acting under judicial process;
and it refers to properties exempt from attachment or execution.
10. A and B may possibly exercise legal redemption to oust Datu Janggo of his
interest with Article 1619 as the legal basis following the provisions of Article 1620
as the existence of legal redemption. A and B may be subrogated to the rights of
Datu Janggo by reimbursing him for the purchase price, provided it be done within
the period of one month to be counted from the time they were notified in writing
of the sale by the vendor.

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NAME: JOMARIE S.

LAGGUI DATE: MAY 28, 2021 (01:00-04:00 PM)

Time sent: 2:33pm

REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

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