Sales, Agency and Credit Transactions-Air

SALES, AGENCY AND CREDIT
TRANSACTIONS
ACCOUNTANCY INTENSIVE REVIEW
SUMMER 2015
CONTRACT OF SALE
• -ONE OF THE CONTRACTING PARTIES (SELLER) OBLIGATES HIMSELF TO

TRANSFER THE OWNERSHIP OF AND TO DELIVER A DETERMINATE THING, AND
THE OTHER (BUYER) TO PAY THERFOR A PRICE CERTAIN IN MONEY OR ITS
EQUIVALENT.
CHARACTERISTICS
CODE: CBCP GON
• 1. CONSENSUAL
• 2. BILATERAL
• 3. COMMUTATIVE
• 4. PRINCIPAL
• 5. GENERALLY RECIPROCAL
• 6. ONEROUS
• 7. NOMINATE
OBLIGATIONS OF THE SELLER
CODE: DATAPWAT/DTPWT
• 1. TO DELIVER THE THING SOLD
• 2. TO TRANSFER OWNERSHIP
• 3. TO PAY FOR THE EXPENSES OF THE DEED OF SALE
• 4. TO WARRANT THE THING SOLD
• 5. TO TAKE CARE OF IT PENDING DELIVERY
KINDS OF DELIVERY
• 1. ACTUAL 3.QUASI-DELIVERY
• 2. CONSTRUCTIVE (TEST T)
• TRADITIO LONGA MANU
• EXECUTION OF PUBLIC INSTRUMENT
• SYMBOLIC DELIVERY
• TRADITIO BREVI MANU
• TRADITIO CONSTITUTUM POSSESORIUM
RIGHTS OF THE UNPAID SELLER
CODE:SPE RE PO STO RE (SPEREPOSTORE)
• 1. SPECIFIC PERFORMANCE
• 2.RESCIND/CANCEL THE SALE
• 3. POSSESSORY LIEN
• 4. STOPPAGE IN TRANSIT
• 5. RESELL
OBLIGATIONS OF THE BUYER
• 1. ACCEPT DELIVERY
• 2. PAY THE PRICE
REMEDIES OF THE BUYER
CODE: SPE RE SU RE SU A
• 1. TO DEMAND FOR SPECIFIC PERFORMANCE PLUS DAMAGES
• 2. TO SUE FOR RESCISSION OF THE CONTRACT PLUS DAMAGES
• 3. TO SUSPEND THE PAYMENT OF THE PRICE
• 4. TO REFUSE ACCEPTANCE
• 5. TO SUE FOR DAMAGES
• 6. TO ASK FOR REDUCTION OF THE PRICE
DOUBLE OR MULTIPLE SALES
• 1. REAL PROPERTY (RPO)-REGISTER, POSSESSION, OLDEST TITLE

• 2. PERSONA PROPERTY (PO) – POSSESSION, OLDEST TITLE
AGENCY
• A PERSON BINDS HIMSELF TO RENDER SOME SERVICE OR TO DO SOMETHING IN

REPRESENTATION OR ON BEHALF OF ANOTHER, WITH THE CONSENT OR
AUTHORITY OF THE LATTER.
CHARACTERISTICS
CODE: NO BP CPR
• 1. NOMINATE
• 2. BILATERAL
• 3. PRINCIPAL
• 4. CONSENSUAL
• 5. PREPARATORY
• 6. REMUNERATORY
HOW AGENCY IS CREATED
CODE: CORE
• 1. CONTRACT
• 2. OPERATION OF LAW
• 3. RATIFICATION
• 4. ESTOPPEL
OBLIGATIONS OF THE PRINCIPAL
CODE: CARI
• 1. TO COMPLY WITH THE OBLIGATIONS CONTRACTED BY THE AGENT WITHIN
THE SCOPE OF HIS AUTHORITY
• 2. TO ADVANCE THE SUM NECESSARY FOR THE EXECUTION OF THE AGENCY
• 3. TO REIMBURSE ALL THE EXPENSES ADVANCED BY THE AGENT
• 4. TO INDEMNIFY ALL THE DAMAGES INCURRED BY THE AGENT IN THE
EXECUTION.
OBLIGATIONS OF THE AGENT
CODE: COFI TAPANGS
• 1. TO CARRY OUT THE AGENCY
• 2. TO FINISH BUSINESS ALREADY BEGUN ON THE DEATH OF THE PRINCIPAL, SHOULD DELAY ENTAIL ANY DANGER
• 3. TO ACT BY HIMSELF OR THRU A SUBSTITUTE
• 4. TO RENDER AN ACCOUNT OF HIS TRANSACTIONS TO THE PRINCIPAL
• 5. TO ACT IN ACCORDANCE WITH THE PRINCIPAL’S INSTRUCTIONS
• 6. TO ADVANCE THE NECESSARY FUNDS, IF STIPULATED
• 7. NOT TO CARRY OUT THE EXECUTION OF THE AGENCY IF IT WOULD MANIFESTLY RESULT IN LOSS OR DAMAGE TO
THE PRINCIPAL
• 8. TO GIVE PREFERENCE TO THE PRINCIPAL’S INTEREST
• TO ACT WITHIN THE SCOPE OF AUTHORITY
EXTINGUISHMENT OF AGENCY
CODE: EDWARD
• 1. THE EXPIRATION OF THE PERIOD

• 2. DEATH, CIVIL INTERDICTION, INSANITY OR INSOLVENCY OF THE PRINCIPAL OR
AGENT
• 3. WITHDRAWAL OF THE AGENT
• 4. ACCOMPLISHMENT OF THE OBJECT OR PURPOSES OF THE AGENCY
• 5. REVOCATION BY THE PRINCIPAL
• 6. DISSOLUTION OF THE FIRM OR CORPORATION WHICH ENTRUSTED OR
ACCEPTED THE AGENCY.
CREDIT TRANSACTIONS
• 1. REAL MORTGAGE – IS AN ACCESSORY CONTRACT WHEREBY REAL PROPERTY IS MADE THE SECURITY
FOR THE FULFILLMENT OF A PRINCIPAL OBLIGATION
• 2. CHATTEL MORTGAGE – IS AN ACCESSORY CONTRACT WHEREBY PERSONAL PROPERTY IS RECORDED IN

THE CHATTEL MORTGAGE REGISTER TO SECURE THE PERFORMANCE OF AN OBLIGATION
• 3. PLEDGE – IS AN ACCESSORY AND REAL CONTRACT WHEREBY A MOVABLE PROPERTY WHICH IS

CAPABLE OF POSSESSION IS DELIVERED BY ONE PERSON TO ANOTHER TO SECURE A PRINCIPAL
OBLIGATION WITH THE UNDERSTANDING THAT WHEN THE OBLIGATION IS FULFILLED, THE THING SHALL
BE RETURNED TOGETHER WITH ALL ITS FRUITS AND ACCESSIONS
COMMON CHARACTERISTICS
• 1. THEY ARE ACCESSORY CONTRACTS CONSTITUTED TO SECURE THE FULFILMENT OF A PRINCIPAL OBLIGATION
• 2. THEY CANNOT EXIST WITHOUT A VALID OBLIGATION
• 3. THE PRINCIPAL OBLIGATION REMAINS VALID, EVEN IF THE PLEDGE AND THE MORTGAGES ARE VOID
• 4. THE PLEDGOR OR MORTGAGOR MUST BE THE ABSOLUTE OWNER OF THE THING PLEDGED OR MORTGAGED
• 5 . THE PERSONS CONSTITUTING THE PLEDGE OR MORTGAGE MUST HAVE THE FREE DISPOSAL OF THEIR
PROPERTY, AND IN THE ABSENCE THEREOF, THEY MUST BE LEGALLY AUTHORIZED FOR THE PURPOSE.
• 6. THIRD PERSONS MAY PLEDGE OR MORTGAGE THEIR OWN PROPERTY TO SECURE THE OBLIGATION OF ANOTHER
• 7. THE PROPERTY PLEDGED OR MORTGAGED MAY BE ALIENATED IF THE PRINCIPAL OBLIGATION HAS NOT BEEN
PAID.
• 8. THEY ARE ALL NOMINATE, ACCESSORY AND ONEROUS CONTRACTS
• 9. AUTOMATIC OWNERSHIP OF THE THING PLEDGED OR MORTGAGED BY THE PLEDGEE OR MORTGAGEE UPON
NON-PAYMENT OF PRINCIPAL OBLIGATION (PACTUM COMMISORIUM) IS PROHIBITED IN THESES CONTRACTS
• 10. TIPO OR UPSET PRICE IS VOID IN THESES CONTRACTS
• 11. THEY MAY BE CONSTITUTED TO SECURE NATURAL, VOIDABLE AND UNENFORCEABLE OBLIGATIONS.
DISTINCTIONS
NOTE: P = PLEDGE C = CHATTEL MORTGAGE R= REAL MORTGAGE

1. OBJECT
P – PERSONAL PROPERTY CAPABLE OF POSSESSION
C – ANY PERSONAL/ MOVABLE PROPERTY
R – IMMOVABLE PROPERTY AND ALIENABLE RIGHTS
2. RIGHT TO SELL
P – THE THING PLEDGED CAN BE SOLD WITHOUT THE PLEDGEE’S CONSENT, BUT TO TRANSFER OWNERSHIP TO THE BUYER,
PLEDGEE’S CONSENT IS REQUIRED
C- MORTGAGED CANNOT BE SOLD WITHOUT THE WRITTEN CONSENT OF THE MORTGAGEE TO BE ANNOTATED IN THE INSTRUMENT
R – MORTGAGED PROPERTY CAN BE SOLD EVEN WITHOUT THE CONSENT OF THE MORTGAGEE (ANY PROHIBITION TO SELL IS VOID)
3. TO BE EFFECTIVE BETWEEN THE PARTIES
P – MAY BE ORAL OR WRITTEN, PROVIDED THE PROPERTY IS DELIVERED TO THE PLEDGEE
C – MUST BE IN A PUBLIC DOCUMENT AND REGISTERED AT THE CHATTEL MORTGAGE REGISTER
R – MUST BE IN WRITING WHETHER PUBLIC OR PRIVATE
4. TO BE EFFECTIVE AGAINST THIRD PERSONS

P – THE DESCRIPTION OF THE THING PLEDGED AND THE DATE OF THE PLEDGE MUST APPEAR IN A PUBLIC
DOCUMENT
C- THERE MUST BE AN AFFIDAVIT OF GOOD FAITH ATTACHED TO THE CONTRACT RECORDED IN THE
CHATTEL MORTGAGE REGISTER
R – MUST BE RECORDED IN THE REGISTER OF DEEDS
5. SECURITY FOR FUTURE OBLIGATION

P – MAY BE CONSTITUTED TO SECURE FUTURE OBLIGATION
C – CANNOT SECURE FUTURE OBLIGATION
R – MAY SECURE FUTURE OBLIGATION
• 6. FORECLOSURE
• P – A.) IF SOLD MORE THAN THE AMOUNT OF THE OBLIGATION, THE PLEDGEE IS
ENTITLED TO THE EXCESS, UNLESS OTHERWISE STIPULATED B.) IF SOLD FOR LESS, THE
PLEDGEE CANNOT RECOVER THE DEFICIENCY (ANY STIPULATION TO CONTRARY IS VOID)
• C – IF SOLD FOR MORE, THE MORTGAGOR IS ENTITLED TO THE EXCESS B.) IF SOLD FOR
LESS, THE MORTGAGOR IS LIABLE FOR DEFICIENCY
• R – THE SAME AS CHATTEL MORTGAGE
• 7. DELIVERY
• P – PEROPERTY MUST BE DELIVERED TO THE PLEDGEE
• C – NO DELIVERY OF THE PROPERTY TO THE MORTGAGEE
• R – THE SAME AS CHATTEL MORTGAGE
END

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Sales, Agency and Credit Transactions-Air

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SALES, AGENCY AND CREDIT

• -ONE OF THE CONTRACTING PARTIES (SELLER) OBLIGATES HIMSELF TO

• 1. REAL PROPERTY (RPO)-REGISTER, POSSESSION, OLDEST TITLE

• A PERSON BINDS HIMSELF TO RENDER SOME SERVICE OR TO DO SOMETHING IN

• 1. THE EXPIRATION OF THE PERIOD

• 2. CHATTEL MORTGAGE – IS AN ACCESSORY CONTRACT WHEREBY PERSONAL PROPERTY IS RECORDED IN

• 3. PLEDGE – IS AN ACCESSORY AND REAL CONTRACT WHEREBY A MOVABLE PROPERTY WHICH IS

NOTE: P = PLEDGE C = CHATTEL MORTGAGE R= REAL MORTGAGE

4. TO BE EFFECTIVE AGAINST THIRD PERSONS

5. SECURITY FOR FUTURE OBLIGATION

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