The document discusses key characteristics of a commutative sale: 1) it exchanges things of equal value, with the seller believing the price received is equivalent to the value given up; 2) the sale is still valid even if the price is less than actual value, unless so low it indicates a donation; and 3) inadequacy of price alone does not invalidate a sale. It also notes that a sale is the title transferring ownership, not the mode of transfer, and ownership occurs upon delivery, distinguishing sale from donation.
The document discusses key characteristics of a commutative sale: 1) it exchanges things of equal value, with the seller believing the price received is equivalent to the value given up; 2) the sale is still valid even if the price is less than actual value, unless so low it indicates a donation; and 3) inadequacy of price alone does not invalidate a sale. It also notes that a sale is the title transferring ownership, not the mode of transfer, and ownership occurs upon delivery, distinguishing sale from donation.
The document discusses key characteristics of a commutative sale: 1) it exchanges things of equal value, with the seller believing the price received is equivalent to the value given up; 2) the sale is still valid even if the price is less than actual value, unless so low it indicates a donation; and 3) inadequacy of price alone does not invalidate a sale. It also notes that a sale is the title transferring ownership, not the mode of transfer, and ownership occurs upon delivery, distinguishing sale from donation.
It imposes a valuable consideration as a prestation, which
ideally is a price certain in money or its equivalent
ii. Commutative (vs. Aleatory)
1. Because a thing of value is exchanged for equal value 2. Ideally the value of the subject matter is equivalent to the price paid 3. No requirement that the price be equal to the exact value of the subject matter. All that is required is for the seller to believe that what was received was of the commutative value of what he gave. 4. If a seller sells his car for only P200,000, when the value of the same is still P500,000. Sale is valid. But it should not be pushed to absurdity. Such that if the seller believes that the price of the car is P200,000, but sells it for P100.00, then it will be considered as a donation, with different tax implications. 5. The subjective test of the commutative nature of sale is further bolstered by the principle that inadequacy of price does not affect ordinary sale, except as it may indicate a defect in the consent, or that the parties really intended a donation or some other act of contract. iii. Nominate iv. Principal – does not depend for its existence and validity upon another contract
b. Sale is TITLE and not the MODE
i. Sale is merely the title that creates the obligation on the part of the seller to transfer ownership and deliver possession, but on its own, SALE is NOT a mode that transfers ownership. ii. While a sale is perfected by mere consent, OWNERSHIP of the thing is acquired only upon its DELIVERY to the buyer.