B. Capacity to buy or sell

All persons who are authorized in the Civil Code to obligate themselves, may enter into a contract of sale, saving the modifications contained in the following articles. (Article 1489, Ibid.)

1. Minors or incapacitated persons

Where necessaries are those sold and delivered to a minor or other person without capacity to act, he must pay a reasonable price therefor. Necessaries are those referred to in Article 290. (Paragraph 2, Article 1489, Ibid.)

Cross-referenced article/s
Support is everything that is indispensable for sustenance, dwelling, clothing and medical attendance, according to the social position of the family. (Article 290, Ibid.)
Support also includes the education of the person entitled to be supported until he completes his education or training for some profession, trade or vocation, even beyond the age of majority. (Paragraph 2, Article 290, Ibid.)

2. Husband and wife

The husband and the wife cannot sell property to each other, except:
1) When a separation of property was agreed upon in the marriage settlements; or
2) When there has been a judicial separation or property under Article 191. (Article 1490, Ibid.)

Applies to sales in legal redemption, compromises, renunciation. The above prohibition is applicable to sales in legal redemption, compromises and renunciations. (Article 1492, Ibid.)

3. Disqualified persons (or persons with conflict of interest)

The following persons cannot acquire by purchase, even at a public or judicial auction, either in person or through the mediation of another:
1) The guardian, the property of the person or persons who may be under his guardianship;
2) Agents, the property whose administration or sale may have been entrusted to them, unless the consent of the principal has been given;
3) Executors and administrators, the property of the estate under administration;
4) Public officers and employees, the property of the State or of any subdivision thereof, or of any government-owned or controlled corporation, or institution, the administration of which has been intrusted to them; this provision shall apply to judges and government experts who, in any manner whatsoever, take part in the sale;
5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other officers and employees connected with the administration of justice, the property and rights in litigation or levied upon an execution before the court within whose jurisdiction or territory they exercise their respective functions; this prohibition includes the act of acquiring by assignment and shall apply to lawyers, with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession.;
6) Any others specially disqualified by law. (Article 1491, Ibid.)

Applies to sales in legal redemption, compromises, renunciation. The above prohibition is applicable to sales in legal redemption, compromises and renunciations. (Article 1492, Ibid.)

Disclaimer: All information herein is for educational and general information only intended for those preparing for the bar exam. These should not be taken as professional legal advice or opinion. Please consult a competent lawyer to address your specific concerns. Any statements or opinions of the author are solely his own and do not reflect that of any organization he may be connected.


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