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- What are the specifications of a sales contract?
The sales contract is a special type of contract that is mainly regulated by the Civil Code, although it is affected by many other laws, especially those related to consumer protection. It can be classified as a contract against payment (it has a consideration for each on of the parties), bilateral and typical (it is specifically regulated by law).
Article 1445 of the Civil Code establishes basic content of said contract by stating that: “in a sales contract one of the parties promises to hand over a certain thing and the other party to pay for it at an established price, in money or terms that represent the same".
The sales contract is characterised, therefore, by the handing over of a good in exchange for money or a document that represents the same. It always has an economical content, and, what is more, has to be equitable between the two parties (both parties must give and take in a compensated way).
Supposing that a good is passed on without any compensation, or is a manifestly uneven transaction, the legal situation changes and it becomes a donation or a gift. Under the Spanish legal system, a donation is presumed to be iuris et de iure (contrary proof cannot be taken) and it is applied when the compensations in a contract are uneven, and a higher tax rate is applicable than that for a sale, as a preventive measure to avoid fraud being committed.
As soon as the contract has been drawn up, and has a binding power between the two parties, article 1450 of the Civil Code establishes that “the sale will be perfected between purchaser and seller, and will become obligatory for both of them, if they have agreed to the good in the contract and the price, even though neither have yet been handed over. “ That is to say, once agreement has been reached over the sale, and the object and price have been fixed, the sale has taken place, independently from if has been written up or was a verbal agreement, that has the same legal force, although it is much more difficult to prove and demand fulfilment if ever difficulties arise between the parties.
For this reason, in principle, the reservation is a binding contract for both parties, even if it is usually structured in such a way as to not produce all the effects of the sales contract. Conditions and clauses are usually added to reclassify it as an option to buy, stipulating the loss of certain quantities if the deal is finally called off.
Article 1445 of the Civil Code establishes basic content of said contract by stating that: “in a sales contract one of the parties promises to hand over a certain thing and the other party to pay for it at an established price, in money or terms that represent the same".
The sales contract is characterised, therefore, by the handing over of a good in exchange for money or a document that represents the same. It always has an economical content, and, what is more, has to be equitable between the two parties (both parties must give and take in a compensated way).
Supposing that a good is passed on without any compensation, or is a manifestly uneven transaction, the legal situation changes and it becomes a donation or a gift. Under the Spanish legal system, a donation is presumed to be iuris et de iure (contrary proof cannot be taken) and it is applied when the compensations in a contract are uneven, and a higher tax rate is applicable than that for a sale, as a preventive measure to avoid fraud being committed.
As soon as the contract has been drawn up, and has a binding power between the two parties, article 1450 of the Civil Code establishes that “the sale will be perfected between purchaser and seller, and will become obligatory for both of them, if they have agreed to the good in the contract and the price, even though neither have yet been handed over. “ That is to say, once agreement has been reached over the sale, and the object and price have been fixed, the sale has taken place, independently from if has been written up or was a verbal agreement, that has the same legal force, although it is much more difficult to prove and demand fulfilment if ever difficulties arise between the parties.
For this reason, in principle, the reservation is a binding contract for both parties, even if it is usually structured in such a way as to not produce all the effects of the sales contract. Conditions and clauses are usually added to reclassify it as an option to buy, stipulating the loss of certain quantities if the deal is finally called off.
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