Ana orally sold her cellphone at a selling price of P10,000 to Bea who obliges to deliver a tablet worth P6,000 and additional cash of P4,000. What is the contract entered into by Ana and Bea?

Study for the Supernova Regulatory Framework for Business Transactions Test. Use flashcards and multiple choice questions. Each question has hints and explanations. Get prepared for your exam!

Multiple Choice

Ana orally sold her cellphone at a selling price of P10,000 to Bea who obliges to deliver a tablet worth P6,000 and additional cash of P4,000. What is the contract entered into by Ana and Bea?

Explanation:
A sale is a contract where one party agrees to deliver ownership of a thing in exchange for a price. The price is the key element, and while it is usually paid in money, the form of payment can vary as long as the price is fixed and corresponds to value. In this case, Ana undertakes to transfer ownership of her cellphone for a price of 10,000. Bea agrees to pay 10,000 in a combination of cash (4,000) and a tablet valued at 6,000. The total payment matches the stated price, so the transaction constitutes a sale. It isn’t barter, which would be an exchange of goods without a monetary price; here money is part of the consideration. It also isn’t a contract for a piece of work or an agency to sell, since no service is performed and no agent is appointed.

A sale is a contract where one party agrees to deliver ownership of a thing in exchange for a price. The price is the key element, and while it is usually paid in money, the form of payment can vary as long as the price is fixed and corresponds to value. In this case, Ana undertakes to transfer ownership of her cellphone for a price of 10,000. Bea agrees to pay 10,000 in a combination of cash (4,000) and a tablet valued at 6,000. The total payment matches the stated price, so the transaction constitutes a sale. It isn’t barter, which would be an exchange of goods without a monetary price; here money is part of the consideration. It also isn’t a contract for a piece of work or an agency to sell, since no service is performed and no agent is appointed.

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