Deceptive, Unfair and Unconscionable Sales Acts or Practices

What constitute deceptive acts or practices

An act or practice is deemed deceptive “whenever the producer, manufacturer, supplier or seller, through concealment, false representation of fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service.”[1] Without limiting the scope of the definition of what constitutes a deceptive act, the act or practice of a seller or supplier is deceptive when it represents that:[2]

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Extinguishment of Sale: How to Terminate a Sales Contract

Extinguishment of sale in general

In general, a sales contract may be extinguished by the same causes as all other obligations and by conventional or legal redemption.[1]

Conventional redemption

Conventional redemption happens “when the vendor reserves the right to repurchase the thing sold, with the obligations to comply with the provisions of Article 1616[2] and other stipulations which may have been agreed upon.”[3] The right to repurchase lasts only for four years from date of the contract unless otherwise stipulated.[4] If there is an express agreement to extend the right to repurchase, it cannot exceed 10 years.[5]

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Actions for breach of sales contract of goods

Actions for price of goods by seller

In case of breach of sales contract of goods, the seller may have the following actions against the buyer for the price of goods if:

  1. The ownership of the goods has passed to the buyer and he wrongfully neglects or refuses to pay for the goods according to the terms of the sales contract;[1] or
  2. The price is payable on a certain day, irrespective of delivery or of transfer of title and the buyer wrongfully neglects or refuses to pay such price, the seller may maintain an action for the price although the ownership[2] in the goods has not passed.[3]

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Rights and Obligations of the Buyer in Sales Transactions

Acceptance of delivery and payment of purchase price

The buyer is obligated to accept delivery and to pay the price of the thing sold at the time and place[1] stipulated in the contract.”[2] Except as otherwise agreed upon, the buyer is not required to accept delivery by installments.[3]

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Warranty against hidden defects or encumbrance in sales transactions

Hidden defects

The seller is responsible for warranty against the hidden defects which the thing sold may have, if they render it unfit for the use for which it is intended, or if they diminish its fitness for such use to such an extent that, had the vendee been aware thereof, he would not have acquired it or would have given a lower price for it.[1] The said vendor is not answerable for patent defects or those which may be visible, or for those which are not visible if the vendee is an expert who, by reason of his trade or profession, should have known them.[2]

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Rent Control Act of 2009 (R.A. 9653) in the Philippines

Rent Control Act applies to residential units having a certain ceiling on rental payments.

Coverage

Republic Act No. 9653 or the Rental Control Act of 2009 covers lease contracts over residential units. However, it has a limited coverage and does not entirely cover all leases of residential units.

The law applies to only to residential units in the National Capital Region and other highly urbanized cities which have a total monthly rent not exceeding P10,000.00, and residential units in all other areas which have a total  monthly rent of P5,000.00, in both cases the minimum is P1.00.

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