The Federal Civil Code states that “a purchase and sale shall occur when one of the contracting parties agrees totransfer ownership of an item or a right, and the other agrees to pay for such, a given monetary price.” Withrespect to such matter, the Mexico’s Supreme Court of Justice has published legal opinion number XXI/2014(10ª), entitled ¨Purchase and sale agreements. Obligation to pay a given monetary price¨, issued by the First Chamber, that the term “given” is not limited to the fact that it be definite, but it also means that the price should also be fair, serious and real; in other words, it should not be simulated, fictitious or ridiculous, with such being ridiculous if there is not proportionality between it and the real value of the item sold. Beyond what isestablished, the court explained that it is not mandatory for the price be the exact true value of the item, but thatthere must be a certain reasonable proportion between one and the other, because if such is not the case, thetransaction would not involve a purchase and sale agreement, but a gratuitous gifting arrangement.
