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V. FORMALITIES OF CONTRACT OF SALE - Coggle Diagram

- - - - FORM REQUIRED FOR VALIDITY
        
        FORM REQUIRED FOR CONVENIENCE
        
        SALE OF LARGE CATTLE
        
        SECONDARY EVIDENCE
        
        ELECTRONIC COMMERCE ACT
        
        EDOC SHALL HAVE THE LEGAL EFFECT AS ANY OTHER DOCUMENT
        Section 7. Legal Recognition of Electronic Documents - Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing, and -
        
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        IF ORIG IS LDC
        REQS FOR LDC
        
        PROOF OF EXECUTION & EXISTENCE
        
        CAUSE OF UNAVAILABILITY
        
        NO BAD FAITH
        Section 5. When original document is unavailable. – When the original document has been lost or destroyed, or cannot be produced in court, the offeror, upon proof of its execution or existence and the cause of its unavailability without bad faith on his or her part, may prove its contents by a copy, or by recital of its contents in some authentic document, or by the testimony of witnesses in the order stated. (5a)
        
        ALL ORIGINAL COPIES MUST BE LOST
        When more than one original copy exists, it must appear that all of them have been lost, destroyed, or cannot be produced in court before secondary evidence can be given of any one. A photocopy may not be used without accounting for the other originals.
        [Citibank v. Teodoro, G.R. No. 150905 (2003)].
        
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        HOW PROVEN: WRITTEN AGREEMENT
        ONLY CONTENTS OF WRITTEN AGREEMENT
        Section 10. Evidence of written agreements. – When the terms of an agreement have been reduced to writing, it is considered as containing all the terms agreed upon and there can be, as between the parties and their successors in interest, no evidence of such terms other than the contents of the written agreement.
        
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        SPECIAL LAWS
        Article 1581. The form of sale of large cattle shall be governed by special laws. (n)
        
        PERMIT TO BUY AND SELL LARGE CATTLE REQUIRED
        Sec. 5. Permit to buy and sell large cattle.
        No person, partnership, association, corporation or entity shall engage in the business of buy and sell of large cattle without first securing a permit for the said purpose from the Provincial Commander of the province where it shall conduct such business and the city/municipal treasurer of the place of residence of such person, partnership, association, corporation or entity.
        
        PERMIT ONY VALID IN SUCH PROVINCE
        The permit shall only be valid in such province.
        
        LARGE CATTLE TRANSFER VALIDITY REQ:
        
        REGISTERED
        
        CERTIFICATE OF TRANSFER
        RAC Sec. 529 – Registration necessary to validity of transfer. No transfer shall be valid unless the same is registered and a certificate of transfer obtained as herein provided,
        
        LARGE CATTLE UNDER 2 YEARS MAY BE REGISTERED AND BRANDED FREE OF CHARGE
        
        PURPOSE OF EFFECTING VALID TRANSFER
        
        REGISTRATION & TRANSFER
        -AT SAME TIME
        but the large cattle under two years of age may be registered and branded gratis for the purpose of effecting a valid transfer, if the registration and transfer are made at the same time.
        
        MUST BE IN PUBLIC DOCUMENT
        Article 1358. The following must appear in a public document:
        
        REAL RIGHTS OVER IMMOVABLE
        (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein are governed by articles 1403, No. 2, and 1405;
        
        REPUDIATION OF:
        a. HEREDITARY RIGHTS
        b. CPG
        (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains;
        
        POWER TO ADMINISTER
        
        ACT WHICH SHOULD APPEAR IN PUBLIC DOC
        
        PREJUDICES A 3RD PERSON
        (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person;
        
        CESSION OF ACTIONS/RIGHTS APPEARING PUBLIC DOC
        (4) The cession of actions or rights proceeding from an act appearing in a public document.
        
        EXCEEDS 5000 PESOS
        All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one.
        
        GOVERNED BY ART. 1403(2) & 1405
        
        GOODS
        
        CHATTELS
        
        THINGS IN ACTION
        But sales of goods, chattels or things in action are governed by articles, 1403, No. 2 and 1405. (1280a)
        
        PARTIES MAY COMPEL
        For convenience. Thus, under NCC 1357, parties may compel the other party to execute sale of land in a public document.
        (Dalion v. CA)
        
        SALE PERFECTED BY:
        MERE CONSENT
        Since sale is a consensual contract, there need only be consent for the sale here of the immovable to be valid or perfected.
        (Dalion v. CA)
        
        CONTRACTS = OBLIGATORY
        WHATEVER FORM
        
        (ORAL/WRITTEN)
        
        (EXPRESS/IMPLIED)
        Article 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present.
        
        EXCEPTION:
        IF LAW REQUIRES A FORM or PROOF FOR VALIDITY/ENFORCEABILITY SUCH IS ABSOLUTE/INDISPENSABLE
        However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable.
        
        RIGHT TO COMPEL THE OTHER TO
        OBSERVE FORM
        In such cases, the right of the parties stated in the following article cannot be exercised. (1278a)
        
        IF LAW REQUIRES A FORM, PARTIES MAY COMPEL THE OTHER TO OBSERVE FORM
        Article 1357. If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract. (1279a)
        
        NOT for validity/enforceability
        
        For validity/Enforceability
        
        AUTHORITY OF AGENT IN SALE of LAND:
        NOT WRITTEN = VOID
        Article 1874. When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be in writing; otherwise, the sale shall be void. (n)
      - UNENFORCEABLE UNLESS RATIFIED
        Article 1403. The following contracts are unenforceable, unless they are ratified:
        X X X
        (2) Those that do not comply with the Statute of Frauds as set forth in this number.
        In the following cases an agreement hereafter made shall be unenforceable by action,
        MUST WRITTEN & SUBSCRIBED;
        OTHERWISE, UNENFORCEABLE
        unless the same, or some note or memorandum, thereof, be in writing, and subscribed by the party charged, or by his agent;
        WRITTEN OR SECONDARY EVIDENCE ONLY
        evidence, therefore, of the agreement cannot be received without the writing, or a secondary evidence of its contents:
        
        1YR BAR - NOT TO BE PERFORMED IN 1 YR
        (a) An agreement that by its terms is not to be performed within a year from the making thereof;
        
        ANSWER FO DEBT/DEFAULT/MISCARRIAGE OF ANOTHER
        (b) A special promise to answer for the debt, default, or miscarriage of another;
        
        AGREEMENT IN CONSIDERATION OF MARRIAGE
        (c) An agreement made in consideration of marriage, other than a mutual promise to marry;
        
        500 & ABOVE PESO SALE
        -EXC: BUYER ACCEPTS PART OF SUCH GOODS or PAYS PART OF PURCHASE MONEY
        (d) An agreement for the sale of goods, chattels or things in action, at a price not less than five hundred pesos, UNLESS the buyer accept and receive part of such goods and chattels, or the evidences, or some of them, of such things in action or pay at the time some part of the purchase money;
        IF BY AUCTION & ENTERED IN SALES BOOK (w/ certain details), THIS IS SUFFICIENT
        but when a sale is made by auction and entry is made by the auctioneer in his sales book, at the time of the sale, of the amount and kind of property sold, terms of sale, price, names of the purchasers and person on whose account the sale is made, it is a sufficient memorandum;
        
        1YR MORE LEASE OF REAL PROPERTY
        
        SALE OF REAL PROPERTY
        (e) An agreement for the leasing for a longer period than one year, or for the sale of real property or of an interest therein;
        
        REPRESENTATION AS TO CREDIT OF 3RD PERSON
        ( f ) A representation as to the credit of a third person.
        
        DEEMED RATIFIED IF:
        
        FAILURE TO OBJECT TO PRESENTATION OF ORAL EVIDENCE
        
        ACCEPTANCE OF BENEFIT
        Article 1405. Contracts infringing the Statute of Frauds, referred to in No. 2 of article 1403, are ratified by the failure to object to the presentation of oral evidence to prove the same, or by the acceptance of benefit under them.
        
        PARTIES MAY COMPEL
        WRITTEN FORM + SUBSCRIBED
        IF CONTRACT IS:
        
        ENFORCEABLE BY STATUTE OF FRAUDS
        
        PUBLIC DOCUMENT IS NECESSARY FOR ITS REGISTRATION
        Article 1406. When a contract is enforceable under the Statute of Frauds, and a public document is necessary for its registration in the Registry of Deeds, the parties may avail themselves of the right under Article 1357.
        
        IF LAW REQUIRES A FORM, PARTIES MAY COMPEL THE OTHER TO OBSERVE FORM
        Article 1357. If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract. (1279a)
        
        NOT for validity/enforceability
        
        PARTIAL PERFORMANCE
        Generally, an oral agreement to sell land is not provable BUT if there is partial performance of the sale contract, the principle excluding parol evidence does not apply.
        -Here, there was partial performance indicated by:
        
        Relinquishment of rights
        
        Continued Possession
        
        Building of Improvements
        
        Tender of Payment
        
        Surveying of the lot at Ortega's expense
        
        Payment of Rentals
        (Ortega v. Leonardo)
        
        ENFORCEABILITY OF VERBAL AGREEMENT
        
        WRITTEN NOTE/MEMO
        Written note or memorandum
        
        ESSENTIALS OF CONTRACT
        Embodying the essentials of the contract
        
        SIGNED BY PARTY CHARGED/AGENT
        Signed by the party charged/agent
        (In Paredes, the defendant was the "Party Charged")
        
        (Paredes v. Espino)
  - - - EXCEPTIONS:
        
        STATUTE OF FRAUDS
        
        ANY OTHER APPLICABLE STATUTE
    - - EFFECT:
        CANNOT COMPEL TO OBSERVE FORM
        In such cases, the right of the parties stated in the following article cannot be exercised. (1278a)
        
        IF LAW REQUIRES A FORM, PARTIES MAY COMPEL THE OTHER TO OBSERVE FORM
        Article 1357. If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract. (1279a)
        
        NOT for validity/enforceability