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Sales - Week V - Price Or Consideration - Coggle Diagram

- - - - Absence of Consideration
        
        If there is a total lack of consideration, then void.
      - Must be In money or its equivalent
        
        Must be certain or ascertainable at the time of perfection
        
        Article 1469. In order that the price may be considered certain, it shall be sufficient that it be so with reference to another thing certain, or that the determination thereof be left to the judgment of a special person or persons.
        Should such person or persons be unable or unwilling to fix it, the contract shall be inefficacious, unless the parties subsequently agree upon the price.
        If the third person or persons acted in bad faith or by mistake, the courts may fix the price.
        Where such third person or persons are prevented from fixing the price or terms by fault of the seller or the buyer, the party not in fault may have such remedies against the party in fault as are allowed the seller or the buyer, as the case may be. (1447a)
        
        Price Certain - sufficient that it has been expressed and agreed in terms of a money equivalent.
        
        Manner of Payment - manner of payment of the purchase price is an essential element in the formation of a contract of sale. Otherwise, there is no price certain. (Toyota Shaw)
        
        This is so because the agreement as to the manner of payment goes into the price such that a disagreement on the manner of payment is tantamount to a failure to agree on the price.
        
        Essential Element in the formation of a binding and enforceable contract of sale. (Velasco)
        
        Equivalent - refers to equivalent of currency such as promissory notes, other mercantile instruments, etc.
        
        Can also be fixed by reference to another thing certain OR the determination of price by specified persons.
        
        Third Person - as a general rule, designation by a third person is binding upon the parties. Except when: (1) Bad faith or mistake by the third person; (2) Third person disregards specific instructions or procedures given for marking out the price i.e. arbitrary
        
        Art. 1458. By the contract of sale one of the
        contracting parties obligates himself to transfer the
        ownership and to deliver a determinate thing, and the
        other to pay therefor a price certain in money or its
        equivalent. A contract of sale may be absolute or
        conditional.
        .
        
        Art. 1468. If the consideration of the contract
        consists partly in money, and partly in another thing,
        the transaction shall be characterized by the manifest
        intention of the parties.
        If such intention does not
        clearly appear, it shall be considered a barter if the
        value of the thing given as a part of the consideration
        exceeds the amount of the money or its equivalent;
        otherwise, it is a sale
        
        Sale - transfer of a determinate thing for a price certain or money equivalent.
        
        Where payment is partially in money and partially in another, there must be manifest intent of parties
        
        Barter - a contract whereby one party binds himself to give something in consideration of another's promise to give something
        
        If there is manifestation of intent of parties in sale OR that the value of the thing given exceeds the amount of money or its equivalent, the transaction is a barter.
      - NCC 1353 - False cause in contract voids unless it can be proved that there is another, lawful cause.
        
        NCC 1471 - If the price is simulated, sale is void. But it can be shown that the parties intended another contract which can be valid.
    - - Generally, mere inadequacy of price does not affect the validity of a contract of sale.
        (1) Gross inadequacy only serves to indicate a defect in consent.
        (2) Or that it indicates that there was no meeting of the minds i.e. parties wanted another contract.
- - - - Determination of Price
        
        Set with reference to another certain thing
        
        Or the determination be left to the judgment of a 3rd person.
        
        The parties have fixed or agreed upon a definite amount.