LAW EACH WEEK
What is a contract of sale or sale?
By 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 therefore a price certain in money or its equivalent (Article 1458, Civil Code).
Should a contract of sale be done orally?
A sale may be orally made. But an agreement for the sale of goods, chattels or things in action at a price not less than five hundred pesos shall be unenforceable unless the note or memorandum be in writing and subscribed by the party charged or his agent (Article 1403 (2) (d), Civil Code).
What happens if a sale of real property is not evidence by a deed of sale?
Despite the absence of the deed of sale, the same is nevertheless valid and enforceable against the seller’s heirs and all parties-in-interest. One may demand from the heirs of the seller to execute a proper deed (Deed of Sale) to reflect the sale that was made orally. This can be done by the testimonies of the persons who witness the oral agreement of sale.
What is a Deed of Sale?
The deed of sale is a legal document that proves and records the sale made. It serves as proof that both the buyer and the seller have reached an agreement of sale or purchase. With this, the deed of sale protects both the buyer and the seller should disagreements or problems arise in the future.
What details should be in the Deed of Sale?
The deed of sale should have the details of the subject matter of the sale. If it is a real property, then the technical description of the property must be provided. It should also have the personal details of the seller, which includes the Full Name, Marital Status, Address, and the Exact Amount of the thing or item sold. In addition, the deed of sale should include the details of the buyer such as the full name and address. The deed of sale should be signed by both the seller and the buyer.