Law on Sales

BUSINESS LAW Contract of Sales Sales

I. Identifi Identificati cation: on: Basic Basic Concept Concept and principles principles  __________________ 1. Principle Principle that the the owner ears the loss.  __________________ !. Principle Principle that the the "#er ears the loss.  __________________ $. Principle Principle that the the seller ears ears the loss.  __________________ %. A "nilateral pro&ise pro&ise to "# or to to sell which is not accepted. accepted.  __________________ '. (he (he "npaid seller)s seller)s le*al power power to retain control of possession possession of *oods.  __________________ +. Sellers Sellers responsiilit# responsiilit# for the title of the thin* the# sold and for an# hidden defects. defects.  __________________ ,. Where Where the owner -oins -oins the id witho"t witho"t reserin* reserin* s"ch ri*ht.  __________________ /. (he (he sale of a thin* thin* not #et in e0istence "t &a# &a# e0ist in the f"t"re.  __________________ . It is also 2nown as sale of of hope.  __________________13. An a*ree&ent where# one part# concedes to another for a deter&inate period the power  4option5 to decide whether whether a principal contract contract will e celerated. celerated.  __________________11.. Also  __________________11 Also called A66AS7 A66AS7 proof of perfection perfection of contract contract of sale.  __________________1!. Unpaid Unpaid seller)s power to res"&e res"&e possession of the *oods.  __________________1$. A doc"&ent doc"&ent of title in which it is stated that the *oods referred to therein will e deliered to the "#er7 or to the order of an# person na&ed in s"ch doc"&ent.  __________________1%. 8oods to e &an"fact"red7 raised or ac9"ired # the seller often the perfection of the contract of sale.  __________________1'. 8oods that cannot e "sed witho"t ein* ein* cons"&ed.  __________________1+. When When *oods are in s"ch s"ch a state that that the "#er wo"ld wo"ld e o"nd to accept accept the delier#. delier#.  __________________1,. A real estate &ort*a*e &ort*a*e in the for& for& of conentional conentional rede&ption or asol"te sale.  __________________1/. (he ri*ht to e s"ro*ated "pon the sa&e ter& and condition stip"lated in the contract in the  place of one who who ac9"ired the thin* thin* # onero"s tide. tide.  __________________1. (he (he preferential preferential ri*ht of an ad-oinin* ad-oinin* owner of an "ran "ran land to p"rchase the ad-oinin* propert#  efore it is sold to a stran*er. stran*er.  __________________!3. A contract # which one transfer transfer to another his ri*ht ri*ht a*ainst a third person in consideration consideration of a  price certain certain in &one# or its e9"ialent. (6UE 6 ;ALSE !1. Contract of sale &a# e asol"te "t not conditional.___________  !!. (he delier# of &oale propert# &a# li2ewise e &ade # the &ere consent or a*ree&ent of the contractin* parties7 if the thin* sold cannot e transferred to the possession of the endee at the ti&e of the sale7 or if  the latter alread# had it in his possession for an# other reason.__________  !$. A contract contract to sell7 een if accepted # the "#er is not an asol"te sale.__________  !%. In sale # sa&ple7 sa&ple7 e it "nderstood "nderstood that the "l2 is li2e the the sa&ple.__________  sa&ple.__________  !'. (here is no a"to&atic a"to&atic rescission rescission in sale of &oale and i&&oale i&&oale propert#.__________  propert#.__________  !+. (he e0penses for the e0ec"tion e0ec"tion and re*istration of the sale sale shall e orne # the endor7 endor7 een if there is a stip"lation stip"lation to the contrar#.__________  !,. 8ross inade9"ac# of price does does not affect a contract of sale7 sale7 e0cept as it &a# indicate a defect defect in the consent or that the parties reall# intended it donation or so&e other act or contract._________  !/. (he endee a retro7 is s"ro*ated s"ro*ated to the endor)s ri*hts ri*hts and actions.__________  actions.__________  !. (he sole owner of a thin* &a# &a# sell an an "ndiided interest interest therein.__________  therein.__________  $3. (he fi0in* of the price price can neer e left to the the discretion of one of the the contractin* parties. parties. espite his 2nowled*e of this defect7 S otained a waier fro& B of the latter)s ri*ht "nder the warrant# a*ainst hidden defects. S"se9"entl#7 the car was wrec2ed d"e to the rec2lessness of B who onl# the discoered the defects when the ;K of the car was P!'37 333. Choose the est answer. a. S is still liale to rei&"rse B '37333 pl"s da&a*es and he &"st pa# da&a*es  . (he waier is oid eca"se S 2new of the defect c. S is not liale an#&ore eca"se the car *ot loss d"e to the rec2lessness of B d. (he liailit# of S re&ains to e P$337333 eca"se of reach of warrant# a*ainst hidden defect. /. Which is not a characteristic of contract of sale a. nero"s c. Consens"al  . 8rat"ito"s d. Co&&"tatie 3.