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Contract Types & Obligations

The document contains 5 tables that summarize key differences between various types of contracts: Table 1 compares a sale contract to an agency contract to sell, noting that in a sale the buyer gains title to the goods upon delivery, while in an agency contract the principal retains title. Table 2 distinguishes between a sale contract, where consideration is money, versus a barter contract, where consideration is another item of value exchanged for goods. Table 3 contrasts a standard sale of manufactured goods versus a contract for custom work, where goods are made specifically for a customer rather than for general market. Table 4 outlines the differences between a standard sale that creates new obligations and a dation in payment that extinguishes pre

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Zophia Queen A. Cambel
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85 views2 pages

Contract Types & Obligations

The document contains 5 tables that summarize key differences between various types of contracts: Table 1 compares a sale contract to an agency contract to sell, noting that in a sale the buyer gains title to the goods upon delivery, while in an agency contract the principal retains title. Table 2 distinguishes between a sale contract, where consideration is money, versus a barter contract, where consideration is another item of value exchanged for goods. Table 3 contrasts a standard sale of manufactured goods versus a contract for custom work, where goods are made specifically for a customer rather than for general market. Table 4 outlines the differences between a standard sale that creates new obligations and a dation in payment that extinguishes pre

Uploaded by

Zophia Queen A. Cambel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Table 1

Sale Agency to sell

Title of the goods is transferred to the Title to the goods is retained by the owner
buyer upon delivery of the thing sold. despite the delivery of the goods to the
agent.
The buyer is required to pay the price The agent is required to turn over to the
principal the price of the goods which he
received from the buyer.
The buyer of the property may do with the The principal retains control of the
property as pleases. property.

Table 2
Sale Barter
The cause or consideration is in money. The cause or consideration is another
thing. Paid in goods or merchandise,
susceptible of valuation.

The contract became one of sale if the The contract is one of the barter if the
monetary consideration is more than or value of the thing given as part of the
equal of the thing given as a part of the consideration exceeds the monetary
payment. consideration.

Table 3
Sale Contract for a piece of work

The subject matter in the contract of sale The goods or the subject matter are to be
is manufactured in an ordinary course of manufactured specially for the customer
business or procure for the general and upon his special order and not for the
market. Whether the same is on hand or general market.
not.
Even though the contractor distributes The contractor may either employ his labor
labor in manufacturing the item, the sale or skill, or also furnish the materials.
of the item is the primary objective and not
the services.
Bound with the Statute of Frauds Not bound with the statute of Frauds
Table 4
Sale Dation in payment
There is no pre-existing credit There is a pre-existing credit.

Sale creates obligation Extinguishes obligations

There is freedom in fixing the price Less freedom in fixing the price because
the amount is coming from the
preexisting credit.

The cause or consideration is the price, The cause of consideration is the


from the seller’s point of view; and the extinguishment of the obligation, from the
delivery of the object, from the buyer’s debtor’s point of view; and the delivery of
point of view. the object given in place of the credit,
from the creditor’s point of view.

Bonus table
Earnest money Option money
Earnest money is the money given as It is not a sale of the right to purchase.
part of the purchase price and as proof of Option money is the consideration paid for
the perfection of the contract. the purpose of holding one to his promise.

Earnest money is treated as something of Option money is distinct from the


value to show that the buyer was really in purchase price.
earnest to the seller to bind the bargain.
Earnest money is paid upon the perfection Option money is paid for a sale that is yet
of a contract of sale. to be perfected.

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