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Additional-Notes-117
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RFBT Dagupan ew, RFBT - 0505 ATTY.BLOAMLAN, CPA Accountancy Review Geneeiy- bust Gnswer Unread ty sul Law on sais Soleo Sachi ae ered Paes ‘obligates Prue oruler the owneisip of and to deliver a ae o ST oe nepal comenual ages yi whe le fil eben 2 Nombate fomevin o Me pe & Commiane 3 Stee Sale Haq eg a eta Sern ph ellen ee Corba an open Horan vont a Wg eh Saale teed SL peroneal, 1 Absolute sole: no conediions altoched: tonsler of ownership is vested upon delivery A Condiioncl sole subject to cerioin conditions; delvery does not transier ownership unl the condition i fulilea. or tronsfeired fo | ype aetvery ofthe object to him. ee oe ha Ten pe nh pa [ave Romber of contacts invaNed ~ “| “theres anyone contoct “Yotnere aie fo coniracis, (11 edict | | to seltona 12) des “hen payment of the price BGT -tull poyment of ine price foo #9 pa) Lisiahiow condition. ~TSpeciealy for he ‘general morke Nolwithin he slatuie of Frauds by stotute of feuls Arce ot row TF ee ecte le, ticcin oihe ine as ote cidaines ba conn io alec ole ach ade | esis ph ea haskell behind neigh prion delve gh A A eatin ir he nase et eae eect le dalcoett ee entie come ete = noc! lot, Opon Con fh jontract Subject molie of he contac! ohsaie bel 7 Sole vs Batter by the Law on Salas” ithe consigerotion is porty in ionay and pari anciner thing 1. the transaction s characterized by the manites intention of ine parties 2 2. tthere no manifest intention: | 2: Sete ina value of ne othe ting (constrain more valuable han he money. Paes | Seale Where Feperty & lenoted To eningiBnes pre exiting credivaebt, | ‘Obigations ore exingushed Ne pie: | iain are cea [crecte:teedomin me deiaiminaiion ofthe pice [mites ireedomin ihe determination runt dele ‘nds of Bornents rae wana og ps 1. Exenlal elements 2. Consent © Oper € Coe Cones 2 Wolucl element = ingld Waremb oer aga evcton Warrenty egal hidden defects 3. Accidental element Squat of the wel Dagupan Accountancy Review - DARe~ May 2020 CPA Exam "Bw a bt tg” / i ‘Scanned withDewipm Acsmmume Raven DARE aq ee Ne) arr stig cenociniotwariet yO) Gi) Ax ray Sapir Boe eer et ne tn nal BLU dele a Exceptions canto cake Indo ary Lantrad TP Rorolute ncapucifion demented panons smeclex det and dumb, rockon ch inericleiNtoe yey 2 fs ncaa eecnon reine wet op pa uy 9 conor Boney teu of paca brchblion = Oat Ur We ay Wr oa Sacer Ce En ONES Sa, ae Giese Exceptions: regime a sedtsahon of property governs! csi of 7b. Guardian with respect to the property of the word bouth~ (1 WA cr 26 cine ee ret oe ra eae ae ee eat etwas dy flew 23. Executor ox ocminitoor wilh respect To the propery of the estate under adminsiation pie fe. Pubic offcers ond employees wi expect athe properies ofthe government NON 1 dedge tatces rena aera cles og el win repect fo he ope muse a Yd Aion ore graven io puchayee Savre He jae Paces BT oe fees Obie oe pureed le (veh) Pightstarsmasie or personal anct eit Except future inherionee and sewices 2. Things- actual or possible. licit and determinate or ot least determinable " 2. Bising good: Topi ow toy be peers Future goods Jp be reidie padyed- -Rirmar Grae Nuavsh -ufon Uandle Yod H 9e) Osh A Held mplio Rei Speralae- sole ofo thing with palanlilaislence subject to a suspensive conaion thatthe ting wil Come inte esters. Gao fla ds Emplio Spei-sale of mere hae or expectancy. the object of sale hot the price but the tckal or the chonce to win VAIN Frye = bet) Price: he sum siouloted as the equivalent ofthe thing told and alte every incident faken into consideration forthe fixing of Ne Bice. pul othe debi ofthe vende ond agreed te By him. yal Requiiles 1. Real.not smulatea otherwite ihe contract of sole void, unless it can be shown tho! is realy © donation oF some otter controct 2, Cartan or ascenainabie phy ©. Fixed by specitied thea person (if she! ern Wen Me gob of ale im fears) ©. Fuad by ine cours Fred by telerence 10 © definite doy. paliculor exchange or masket @._Fhedby reterence fo anather iting carain + 3. inmoney ert equivalent Wag roo ie —- 4 MmarStpoymenimen be greed upon Oulk abil) fo ieaacs kes fo weage. tt aba A wk» hse ym ttl ey Vu pew (HURL) 1. ine feng of tne price con never be tet fo the okcietion of one of ine contracting partes. However, by one of the parties s accepted by the oiher, he ale s pertected. 2. Gross inadequacy of pice does nol alfect @ coniraet of sale, excep! ost may indicate @ detect in the content. or thal the ponies really Intended @ donation or some other act or contract Exceptions 12. Where low pics Indicates @ vice of consent, sole may be annulled or the contract Is presumed to be on ‘equilabie mortgage. "were the price i $0 low as 10 be shocking fo the conscience. sole may be sel aside. ‘where the price is simulated, the sole is vord.~ Whete the porlies did nat itend fo be bound at at he soles void ‘Where there is lesion, the contract may be rescinded te price fixes pang fainest Meney ag a fae te only when theres reody {Money aven a: dilinet consideration ora ‘agen ‘o0le nol yet sa eeutomation ot 9 Contact ose Preperaton/conceplen/generaion “Polictotion-an unoccepled unilateral promise 10 buy oF sell produces no juridical elfect and creates no legal bond, 2. Pertection/8ian “Auclion 20a sale is perfected when the auctioneer announces its pectection by the fal ofthe hammer orn other ‘ customary manner 3. Consumption/Execution/Death Formatiies of a Contract of Sale | _ generate A conrat oe moy be ener nie ay lam provide he eenieaise ls votly oe pre ncoplions \ he Slowing mi! ben wn o be entrconne 1 ale of personal propery a é bres Rafi hon qe yale Sf 2S tice propery orannetedIneren: SS, eonad SA \ 4 ‘Dagupan Accountancy Review - DARe - May 2020 PA Exam Die bgt bap” ‘Scanned with |CamScannerAccountancy Review ~ DARe RFBT-0505 30 Se ol snaty nol be peomed ih ayer tam the aaieclopwerent Wag Ae sale of 0 piece of lond or ony interest therein & made through an agent: the agent's auihorty mus! be In waiting: ‘otherwise, the sole vor, Sole by Non-ounet A we Satara te cate ee so tw ing st: tern boy cmon oo Ear tat opt an oveler Bieptins if ot 1. The seller becomes the owner at the ime of delivery.” 2 fuchantihomecton'aitee,.onormanes:fole rat! 5 Gitar e ead tet aeadhe ue palin idechcecat ibe pelle aie’ Hol tier ceaes The goossin good lit fr vive ora wine! rates ote saber s dace, 4 Setsonciod by cellar sattoy onony 5 Riot Setonse Chota) “ osigaTion: ofthe vendor (el) 1. Trorster ownership 2, Deliver the thing fold PS Deliver the ult: anc occessories 5 ‘Moke wareanties soul 5 Toke cave of he hing. pencing dolver, wih proper cigence (isis of = Sm!) ye [4 Poytortne expenses for ne eneccton snd resvotion othe sc, ues thee sipulation fo the contr 9 He lyr |? ecord the buparine ight to exomine ine goods | 8. Enterinto @ contact with the carrier on behalf ol the buyer as may be reasonable urder the ckcumstances 19. Notiy the buyer regaraing necessly fo Insure goods it usual lo sure them General rule: Ownership ofthe thing sold acquired only upanils delivery. actual er contstuctive. Exceptions: 1. Poctum reservail domint ( 2 Conlracttoset (Auey du} fords 3. Sole on Acceplonce/tiici/ADproval/Satsfaction lure fuer if yp «uk pester cf arahp) Zin sale or retum, ownership passes to the buyer on delivery bul he may reves! the ownership in the seller by returning the goods within tae Hime fneatin tne contoct: rif here's no ime fixed, within Greaionable ime. Kinds of Datvery 1. Aetvat cee Constrctive “a. Detvery by execution of pubic Taswument - ej <_B._Kgatio symeoice cig ‘€. “Tradiio longo many (>) bf note S. Wooton trea manui tte eg uit) © bend How ©. Troiio consitotum powessorim ~ bie = seu 1 Quostiroation-delvery ot rahi, crecisorincorporeal propery made by execution ot pubkEinsrumenl, acing files of onnershipin the hand of Buyer er alowing buyer to moke ure of igh Completeness of Delivery Zi. movabes (7 Rules: Where, in relation to what is contiocled 10 se the quantily of goods delivered Less The buyer hos two options 1 Reject ne gout ii Acceptinem Bt poy Me Unio ®. tomer The buyer has tree options: 1" Accept per contact ane raject the rest fi. -A€Cept the whole and pay ot e contract ale ii Mindlisible, reject the whole or accept envely 2. mmovables Sold per unl ornumber (ce) Lessin ares or ofineror oF ciferent quasty jot Zi Rescisionif jack in orea ba leas 1/10 ofthe ar20 agreed upon 1 Rescision of he Getiiency in auatyspeciiedin the contac! exceed |/10 tthe ics. careed upon ir Reseision fhe buyer would nat have Bough! Ihe Immovable hod he knsown ofits smaller orea or interior ‘quotity 1s. Proportional reduction Greater increas 5g eee i. Accept per stipulation and reject tne rest Deca ake fa Accept ine whole ond pay af a contract rote PS0Id for lump SUM yo, gonah Greater/Lesser-no fection oF agjusiment of the price, unless there i gross mistake.” _7- “Action for rescision shall prescribe in § months counted trom the date of Rik of toss fietg tends, AKO 1" Beloe perlectonseler. res peril domine apples (4et ae oy Hts) PEW boss Asoo ecw: DARe= May ano craton “Beem aday ar a ‘Scanned with |CamScannerDagupan Accountancy Review — DARE RFBT-0505 2. Al perfection eter. res pei domino apples, contact bs consdered vol or exten! because ihe object dd nol ‘uta the time of rarsocton. 33. ilecpertecion bul Betore delvery Two conticting views. ©. Suyerses pol crestor i, Selerzes pot domi tow 4. Aller pertacion ond deliveny-buyer. res pert domino apples pc of hed Taye? adn) ote + Dove role ame neniomed 1 Pancha roperitet ponenorin gosta 7 MeN 2 Realprpety fei ee oP ihrepthat ih good ttn ore fr poser in goo ttn 25h 6 en nfl nr 6. Person with cides ile in good fath Awononty-astatement representation mede by the seller contemporaneously and ato part ofthe contact of sole, having Telerence fo the character. quality. oF Ile of the goods. and By which he promises or undertokes To insur thal Certain facts {Gre cr shall be os he then represents. kinds: 1 express ‘A mere expression of opinion. no matter how postvely Osserled, dees no! import a wananty, Unies the sellers an ‘expert and nis opinion was relied upon by the Buyer. iis Vins Fe 2. implied CO dent ef rhe of eA)-PW to ioare gpd wavy 12. Warranty that the sator nos he rght fo se Son he lays ae 1B. Warranty against non-apparen! Buren of senitude a Nek callpe| byt a ‘¢. Warranty against hidden defect "#2 As] snare bos vn) br 6. Warranty agoins rechibitory defects on onimots fe. Warranty insole of gooasyworanties of ually _7*no implied woranly on sale of second hand g2eds and when the sole kon Gn “asis and wheres" vass (caves! emptor. = wares ogc taihen Fworanty against eviction M82! H Gia) Vendor's toby eta pn) 1 Totakeviction fe evel pa aS {2 Nelue of he thing oh Bb ifcome or tuts the has been ordered Yo deliver them to the porly who won the sit ©. Costol ne ait sigh &._faponses one contact ral bededord free psn —— 2 bamages oncintoresst hesclewerbodtonm perl py 2. Portislevielion -viceb, 12. Enlorce veicor’s tabily for eviction, or 1. Bemond rescision ofthe contract Arrciver ot ity (Shad 9 Self colkverne void) nck fabilty fs walvable bul ny stipulation exempting the vende rom Ine obigalion fo answer fer eviction shal be woid ithe actesin oad tain ° : : Pl gular tS ON ee bu 0 evalua hay ot He ro ent rae _— pele nib ane er . |. Coniciente-volntarly made by the vendee without he snowedge and ossuinption of he rs of eyilion in coe breach, ine sles fable on the vaive of ne hing othe me ot evecion {foyr ens va rue *Puntes *Phnebee ) 2. Inlencionada-made bythe vendee with Koowiedge ofthe rks of eviction and esumpton os conseavertes, wg geval abi eniged ha a7 gen Sade (ur awl ane rt oF wide Py) ‘Phuagioadl wilder = cher no lamer lal a lam og BAST hs hogs 4 fi " _ erent ogee nd opparen| badonveciamerinesiase tn NBT) BM-—hijers asm dem, Remedy of buyer in case of breach: 1 escbion or 2. Indermniy lor damages “win 1 yeor rom ihe dale o discovery. Alter year, anly action fr damages may be brought ‘Warranty ogains Hidden Defects oe ioe ety ban dee el gpa 1 "Detects serious orimportant 2. Detects hiigen 3. sat ne fm of he sata 4 Vendoe must give noice othe defect lo he vender win rsoronobie tne 5. Remedies mut be Brough wihin ne period ol gmor Hom debvery of he hing o £2day kom date of deivenn cose of animals 6. Nowaiver of ihe warranty *seliet i lable even though Ne ls not aware of he hidéen detect provided no Waiver of waranty Ogais! Nien detect mode by tha buyer (caveat vencitcr ‘Obligation ofthe selern case of breach: TI there's no waver of warranty 19. Selleris aware of he hidden defect (bod faith) LPED {Bear the loss fi Retum the price “Dine a eBay atthe ay Dagupan Accountancy Review - DARe- May 2020 CPA Exam ‘Scanned with |CamScannerAccountancy Review ~ DARE RFBT-0505 ti Relund the expenses of the contract ix, Pay@amages: hy a age ne ware ig a vel i Bear thels J i Relum the Grice tis Refund the @xpenses of the contract iy, Return thet 2 2. there war walver of waranty 4. Soler aware ot the hidden defect (bad foith) 1 Bear tha los elu the price tis Refund the expenses of the contrac! Pay damages 'b,_ Seller's not aware of the hidden defect [good faith) seller & no! table 7 _Ao1eT fa Seisctve ting sos tough fortuitous event or toultol the Buyer. Ihe sellerisioblefo pay he aiference between the price pold less the value ofthe thing al the time of the loss Remectes of he buyerin cose of reach: YP Accionreahistona feahiblory action) = Canihatin ose} Ginhs fi deve 2._Recion quonil minots propertonote eduction ofthe pice) Waranty agaist rechibilory detects on animals Instances where here edhbiloy detect Expert krowleage & not suiceal lo covert 21 The velernnon fled to ciscover or diclose through ignorance or bed faith 53 Te animal des wihin Zdoys ao ts purchase ond the dsgose which coused the death exsed ot the time of he contact. Hen aybihe sa dt *Note: same rules on warranty against hidden detects ‘Obligations of ne buyer/vendee: 2 ORNS Tooccept delivery 2. Topayihe price of the thing ‘o poy interes rom the date of delvery vo te payment of the pice in the folowing instances: 2. interests stipuisted 1D. fuis crincome are received by the buyer from the ining sold €. verde & guily of default 1G. Speciic performance plus damages ‘ _Rescision plus damages €. Domages| 2. Special remedios weie neg Possessory en ; nlinget |B. Stoppoge of goods in rans! = ed shut w aiken othe perl ‘Special ght of oseision {clon forthe price ‘ction for damages Reclo Law Mocede tow Specie Performance + epee A pepe et rze>oa. Recto law provides for remedies of vendor in sle ol parton! propery by inslokmen! and these leases of personal eeopery vein anption fobuy. (in-hevc ira) alia “prod x “Het fer po)» bby I. SPecife perermance upon vende’ foie 1o poy gry is ; 2. ecusont vandee hak hove lelese pay meso Ao aire? 53. Ferecoture of he chatiel merigoge on ihe ting sold vendee snat hove faled fo pay two of more insite Note: in thi Cate here shal be no deficiency udaamea! Any agreement allowing fr luther action fo racover URpAIEBOIENEETEVOD. Ay Golde| motgayy Ho Oe He le Moced ne governs sie of mova on ene napeible nh towing sl: (Ir fs 1. Sate cveing commerc) bug: ana le 2. Stef lnm uncer agraan ets ows 3. Sdleottoncspavodin sigh toms 4. Sale coverng una its r-rel ata, rues: ‘i of 1 buyerhas poid ot ect! two (2 yer otinstatiments: 39d Fr Yor ofall ford. (oi iy Ye) 72. Ihe buyer mist pay, witout Seaional ne Ne unpaid nslaments due win the tla grace peod earned by him, There shell be one month grace perio fr every one (I) yea" a rsllment peymen! made > AeWolcancelaion con oa ake place ole 30 days rom recip! By Ine buyer ol the hole ot cancelation or Semana forrescsion by @ Nolen ce! and Upon fl payment of the Cosh stander vue to he Dover |, I i nike cui Baa ‘Scanned with |CamScanner2 a Tea ‘Dagupan Accountancy Review DARE , RFBT-0505 ‘Coan nmtendor valve-£0% of he lola paymensinciycng clown paymen|. pls SK each yer afer 5 yeas but Satroercooa om. Cost Hl Winton) pod Woda at peont) 2. buyer has paid less than two {2} Jeon of instalment _Z2_ Thaler snol give the Buyere grace perio of no less han 60 day tom the date he nstamen! become ve ©. _Aclualcancetotion con ony lake piace aller 20 dopa hom recep by tne buyer ol he olce elconcetotion oF demand for rection by o nolarol acl “Es > Cah i) Extngusnment otsote SHY MN gerd Crone ceratahni)= 20d, tobi Tr Same couses os at other obFgations Toa Le of be J spe an 2 Conventional Redemption 3. LegaiRedemption Slr bos bok Me Qayoly 6 apeahon CConventionotredempiion:the ight whieh the vendor reserves to hielo eacquie the propery 11a provised he relurns io thevendes: Pace de tde-sak MI Hep > reprdne Price of he sale i 2. Expenses of the controct Noodle Papa « fo ay oft yehpet 3. Any ole legiimate payments made therefore 4. ReGestoy expenses : Wetdin ) vae 5. Uretul expenses - Petiod ofredemation |. When no periods agreed upon il snaliast 4 years from the date of the contact, 2. When period is agreed upon: the period conno! exceed 10 years. it exceeds I0 yeas, Ihe agreement valid only forthe et 10 years ‘Even when the right lo redeem hos expred, and there has been previously sul on the nature of the contract, ne, seer may sil exercise the right to repurchase within 20 days trom the ime of the naity of judgment. Note (7+ The buyer of d port of on yacvied immovabie wno acquires the whole thereot may compel the ster to redeem the whove property. the later wines fo make vse ofthe ight of edempton. 7+ tfeveroi pans. jointy and in ine same centrge! should Sel an undivided immovable wih aright of repurchase, fone of them moy exerci this hantf is Ze. The samo Tue shod oPpIY lf he person who sold an immovable atone has ell severol hen in Which case each ofthe latter may only redeem the port which he oy have acaued. the buyer may demand of al the vendors or eo-he's thal they comme fo an agreement ypon the repurchase of ine whole thing sld: and should they Fol fo do 40, ne buyer cannl be competed To consent 0 a paticiredemation + Fach one of ine co-owners of on undvisied immovable wha moy have sid share separately. moy independently treba height olteputcse a egords Ne own sare ond ine vendee sotseIcoAEETR toradeor he whe property. 7 Equitable morigage-one which locks the proper feemofiles, frm of words, or other fequisles prescribed by iow for & "merigage, but shows the intention of the parties to make the properly subject of he contract az secutly fora debt. ‘Legal redemption the right fo be subrogated upon the tame terms ond conatigns stipulated inthe contract inthe place ot (one who acqutes © thing by purchase, dation in payment cr any other Kansoctions whereby ownership & ronstemed by ‘onerous the, 4 "Legal redemption i nol available in cases of donation succession and barter. roe ayia Petod a redeem: mus be exercive within 30 days tom notice nwt bythe vendor. (7 YEN Instances offegal redemption ~aypicable by OM iainden trayt terhed wy Her > whotant 1. Underthe civ code. barker 9. Sele ofa co-owner of his shore fo a skanger 7 {) “A co-owner has the right of redempion fo the excision of aging owners. fi A co-owner may only exercse redemplion n properton Io hs respective shore. {i When the portion 616 To another co-owner. the ight of redemption does net ate. +) {nen a credit or other incorporeo ight in tigation isola Sole of on her ef his hereataryrghls 1 a stranger (belore portion) (sae vl &) Sale of acjacent rrationas Theciare (aAjacid Ind ewe +] Ou) be) 1) “The igh! nol appicabie fo. aajacen! lands whigh ore seporoted by Brot, aroins. ravines, roads ond | oiner apparent servtuae. i, evendee mutakeady awa same tal lond thew, ro legalredemeton Zia in case two or more adjacent land owners deste fo erercka tha rh! ol redemption, the law gives frelerence to the cw of he adjoining land ol smaller or, but both land have the some ore. 10 the one who ial ehbddec tne redemption €.. Sale of adiacent smal urban lands bought merely fo speculation 1 Before sole. he acjoinng land ownen have gahLatecaamotion= en tt AlferSoe, the aajoring land owners have right ol redemption > scl bad Vili. When two or more adjaining fang owners wish to exercise the righ tne owner show intends use of the, landin question appear bes! sted small be preter. 2. Under specioliaws ang a. in cases of 1 3 7 Teutt of seh. Sellar 5. Ripntotredemptonin caerol extort sconces meee ont " a e4nh of (dongle eo 4 ly tedeop hs r “Dane a ob ta he bs oy” ‘Scanned with |CamScanner
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