1. What is a Contract of Sale?

A contract of sale is an agreement between a seller and a buyer. The seller agrees to
deliver or sell something to a buyer for a set price that the buyer has agreed to pay. With
these contracts, the transfer of ownership happens when the buyer pays and the seller
delivers.
2. Who are the parties to the Contract of Sale?
A sales contract outlines the terms of a transaction between two parties: the buyer and the
seller. This contract changes somewhat in situations where the seller cannot yet deliver
the item that is sold. It also changes when the buyer cannot yet pay the full price. Both
parties can still agree on transferring the ownership to the person buying in these
situations, as long as the seller is ready to deliver what is being sold. The contract is then
subject to resolutory condition, meaning if the buyer fails to make the payment, the seller
takes the item back.
3. What are the elements/requisites of a Contract of Sale?
Consent – this is the meeting of the minds of both parties, i.e., consent to transfer
ownership in exchange for the price.
Subject Matter – this should be determinate. A thing is considered determinate if when it
is particularly designated or physically segregated from all others of the same class.
Generally, there is no sale of generic thing. If the parties cannot agree as to the subject
matter, there is no meeting of the minds.

Price – It should be certain in money or its equivalent. This is the cause or consideration.
Note that the price need not be in money.

4. What are the characteristics of the Contract of Sale?

Consensual- because the contract is perfected by mere consent.
Bilateral reciprocal- contract because both parties are bound by obligations dependent
upon each other. In other words, it is bilateral because both parties are obliged to perform
an obligation (the seller delivers; the buyer pays). It is reciprocal because the one party's
obligation becomes demandable the moment the other party performs his obligation.
Onerous- because, to acquire the rights, valuable consideration must be given. Cause or
consideration is a general requirement for the existence of contract.
Commutative- as a rule, because the values exchanged are almost equivalent to each
other. This is the presumption because, in a normal contract of sale, the seller sells and
the buyer buys at a price at which both of them are willing to sell and buy.
 Principal- because for it to validly exist, there is no necessity for it to depend upon the
existence of another valid contract. In other words, it is principal because it can exist
independently.
Nominate- because the New Civil Code of the Philippines refers to it by a special
designation or name, i.e., the contract of sale. There are contracts not mentioned in the
Code such a contract where a person lets another live in his house in exchange of a daily
back massage. These contracts not specifically or specially named by the Code are called
innominate contracts.
5. Who are incapacitated to enter into Contract of Sale?
Minors and insane and demented persons are incapacitated to signify their consent to a
contract of sale. But minors must pay a reasonable price for necessaries, or everything
indispensable for their sustenance, dwelling, clothing, medical attendance, education and
transportation, which they may have purchased.
6. What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale unless
there is a stipulation to the contrary

7. What are the obligations of the vendee?

a. Accept delivery
b. Pay the price of the thing
c. Bear the expenses for execution and registration of sale and putting the goods in a
deliverable state if such is the stipulation
8. What are the warranties in a contract of sale?
Warranties can be express, implied, or both. Both express and implied warranties provide
legal relief for the purchaser in the event of a breach of contract. An express warranty is
one in which the seller explicitly guarantees the quality of the good or service sold.
Typically, the vendor provides a statement, or other binding document, as part of the
sales contract. What this means in practice is that the buyer has engaged in the contract
on the reasonable assumption that the quality, nature, character, purpose, performance,
state, use, or capacity of the goods or services are the same as those stated by the seller.
Therefore, the sales contract is based, in part, on the understanding that the goods or
services being supplied by the seller will conform to the description, or any sample, that
has been provided. Implied warranties in certain circumstances where no express
warranty was made, the law implies a warranty. This statement means that the warranty
 automatically arises from the fact that a sale was made. With regard to implied
warranties, the law distinguishes between casual sellers and merchant sellers, with the
latter held to a higher standard, given that they are in the business of buying or selling the
good or service rendered. For example, unless otherwise agreed, goods sold by merchants
carry an implied warranty against claims by any third party by way of trademark
infringement, patent infringement, or any other intellectual property law infringement.
This type of warranty is known as the warranty against infringement. Another implied
warranty provided by merchant sellers is the warranty of fitness for normal use, which
means that the goods must be fit for the ordinary purposes for which they are sold.
9. What is eviction?
The process of dispossessing a person of land, be it lawful or unlawful. Subject to any
statutory provisions, it is lawful if the person evicted has a right to possession inferior to
that of the person carrying out the eviction. The delivery of possession under order of the
court is sometimes called eviction. 
10. What is redhibitory defect and what is redhibitory action?
Redhibitory Defect
A defect is redhibitory when it renders the thing useless, or its use so inconvenient that it
must be presumed that a buyer would not have bought the thing had he known of the
defect. The existence of such a defect gives a buyer the right to obtain rescission of the
sale. A defect is redhibitory also when, without rendering the thing totally useless, it
diminishes its usefulness or its value so that it must be presumed that a buyer would still
have bought it but for a lesser price. The existence of such a defect limits the right of a
buyer to a reduction of the price.
Redhibitory Action
Redhibitory action is an action brought to void the sale of something defective. The
defect should one that renders it either useless or so flawed that the buyer would not have
bought it in the first place.
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary
What are the obligations of the vendor?
a. To transfer ownership of the thing sold;
b. To deliver the thing;
c. To warrant the object sold against eviction and hidden defects;
d. To take care of the object sold pending delivery; and
e. To pay the expenses for the execution and registration of the contract of sale
unless there is a stipulation to the contrary