Sale distinguished from Dacion en Pago:
- Sale, there is no pre-existing credit while Dacion en Pago there is a pre-existing credit.
- Sale creates obligation while Dacion en Pago extinguishes obligation.
- Sale the cause or consideration is the price and delivery of the object, while Dacion en Pago the cause is extinguishment of obligation.
- Sale greater freedom from fixing the price while Dacion en Pago less freedom in fixing the price because the amount of pre-existing credit which the parties seek to extinguish.
Sale distinguished from Barter:
Rule partly in money and partly in another thing:
- A contract shall be one of sale or barter depending upon the manifest of parties.
- If the intention of parties does not clearly appear.
- The contract is barter if the value of the thing given exceeds the monetary consideration.
- The contract is sale if the monetary consideration is more than or equal to the value of the thing given as part of the consideration.
A and B entered into a written contract which states that A, seller hereby transfers his ring worth 20 000 to B, buyer for B’s cell phone worth 12 000 and cash of 8000.
What is the contract? Contract of Sale
A and B entered into a written contract which states that A, hereby transfers his ring worth 20 000 to B, for B’s cell phone worth 12 000 and cash 8000.
What contract entered into? Barter because it does not clearly states the intention of parties.