2025 Higher Education Learning Solutions Catalog

Regulatory Framework and Legal Issues in Business

Right to Repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 LegalRedemption................................................... 106

CONTENTS CONTENTS

CHAPTER 7: ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS

112

UNIT II CREDIT TRANSACTIONS AND CONTRACTS OF SECURITY

PREFACE .......................................................... xvii

119

UNIT I THE LAW ON SALES

1

CHAPTER 1: COMMODATUM AND MUTUUM

121

Commodatum versusSimpleLoan;Perfection............................ 122 Nature of Commodatum .............................................. 122 ObligationsoftheBailee ............................................. 123 ObligationsoftheBailor.............................................. 125 Nature of Simple Loan or Mutuum ..................................... 127

CHAPTER 1: NATURE AND FORM OF CONTRACT

2

Characteristics of a Contract of Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Contract of Sale Distinguished from Other Contracts . . . . . . . . . . . . . . . . . . . . . . 3 EssentialElementsofaContractofSale................................. 7 ObjectofaContractofSale........................................... 8 PriceinaContractofSale ............................................ 12 Consent or Meeting of the Minds in a Contract of Sale. . . . . . . . . . . . . . . . . . . . . 15 Formalities of a Contract of Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Recto Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

CHAPTER 2: LETTERS OF CREDIT

133

Parties to a Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 HowtheLetterofCreditOperates ..................................... 139 Doctrine of Independence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Fraud Exception Principle ............................................. 143 Doctrine of Strict Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

CHAPTER 2: CAPACITY TO BUY OR SELL

32

Capacity to Contract ................................................. 32 Effects of the Contract When the Thing Sold Has Been Lost. . . . . . . . . . . . . . . . . 34

CHAPTER 3: GUARANTY

150

v Effects of Guaranty between the Debtor and the Guarantor . . . . . . . . . . . . . . . . 161 Effects of Guaranty as Between Co-Guarantors. . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Suretyship vs. Guaranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Extinguishment of Guaranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 LegalandJudicialBonds.............................................. 169 NatureandExtentofGuaranty........................................ 150 Effects of Guaranty between the Guarantor and the Creditor . . . . . . . . . . . . . . . 157

CHAPTER 3: OBLIGATIONS OF THE VENDOR

38

LESSON I: GENERAL PROVISIONS ..................................... 38 DeliveryoftheThingSold........................................ 42 PossessionorOwnershipinGoods................................. 43 NegotiableDocumentsofTitle.................................... 47 PlaceandTimeofDelivery ....................................... 52 Remedies of Unpaid Seller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Possessory Lien ..................................................... 55 Right of Stoppage in Transitu .......................................... 56 RightofResale...................................................... 58 RighttoRescindSale................................................. 59 Sale of Real Property by Unit of Measure or Number or for a Lump Sum . . . . . . 59 Double Sale ........................................................ 61 LESSON II: CONDITIONS AND WARRANTIES ........................... 66 WarrantyinCaseofEviction...................................... 69 Warranty against Hidden Defects of or Encumbrances upon the Thing Sold .................................................. 73

iii

CHAPTER 4: PERSONAL PROPERTY SECURITY ACT (REPUBLIC ACT NO. 11057)

172

CreationofSecurityInterest .......................................... 173 PerfectionofSecurityInterest......................................... 176 Continuity of Perfected Security Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 RegistrationandtheRegistry.......................................... 179 Priority of Security Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 Amendment and Termination of Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Extinguishment of Security Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 Enforcement of Security Interests and Secured Creditor’s Rights. . . . . . . . . . . . . 186 ExpeditedRepossessionoftheCollateral................................ 186

CHAPTER 4: OBLIGATIONS OF THE VENDEE

82

CHAPTER 5: MORTGAGE

194

CHAPTER 5: ACTIONS FOR BREACH OF CONTRACT OF SALE OF GOODS

90

UNIT III SECURITIES REGULATION CODE (REPUBLIC ACT NO. 8799)

CHAPTER 6: EXTINGUISHMENT OF SALE

96

206

Conventional Redemption Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Equitable Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 RighttoRepurchase ................................................. 101 LegalRedemption................................................... 106

PowersandFunctionsoftheSEC....................................... 207 Securities That Are Required to Be Registered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Exempt Securities ................................................... 212 Exempt Transactions ................................................. 214 ProcedureforRegistrationofSecurities................................. 216

iv

CHAPTER 7: ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL RIGHTS

vi

112

UNIT II CREDIT TRANSACTIONS AND CONTRACTS OF SECURITY

119

CHAPTER 1: COMMODATUM AND MUTUUM

121

2025 Higher Education Learning Solutions for the Business and Accountancy Program 59

Commodatum versusSimpleLoan;Perfection............................ 122 Nature of Commodatum .............................................. 122 ObligationsoftheBailee ............................................. 123 ObligationsoftheBailor.............................................. 125

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