MIDTERMS

1. What are necessaries? How are they relevant to the law on sale?

2. David and Loren are husbands and wives. They are engaged in the business of buying and
selling real properties. One day, Loren sold a lot which they own without the knowledge of David.
Is the sale valid? Why?

After several years in the business, they closed it and then retired. After their retirement, David
sold another building which they own without the consent of Loren. Is the sale valid? Why?

3. When do you consider a government property as being outside the commerce of man?

4. Gordon is the son of a rich businessman. After his father died, he went to Victor who is and
American citizen, and sold all his inheritance from his dead father. Is the sale valid? Why?

5. Elise owns and operates a computer which sells ACER-Z2 computers. On October, 20, 2016, all
of her stocks were sold out. When she was about to close her shop, a customer entered looking
for computers. Elise showed him a brochure of an ACER-Z2 computer which showed all its
specifications and descriptions. Being satisfied with the presentation, the customer agreed to buy
one unit of an ACER-Z2 computer. Elise told the customer that she had no ACER-Z2 at the
moment. In fact, she does not have any computer at her shop since she had sold all of them.
However, she will get one from her supplier and give it to him. Is there a valid contract of sale
between Elise and the customer? Explain your answer.