1. Divine Corporation, engaged in the manufacture of garments for export, was able to obtain loans from individuals and financing institutions. However, due to the drop in the demand for garments in the international market, Divine Corporation could not meet its obligations. It decided to sell all its equipment such as sewing machines, perma press machines, high-speed sewers, cutting tables, ironing tables, etc., as well as its supplies and materials to Top Grade Fashion Corporation, its competitor. How would you classify the transaction?
2. Can Divine Corporation sell aforesaid items to its competitor, Top Grade Fashion Corporation? What are the requirements to validly sell the items? Explain.