Extinguisment of Sale Flashcards
Available when the seller reserves the
right to repurchase the thing sold in the
same instrument of sale as one of the
stipulations of the contract.
CONVENTIONAL REDEMPTION
Vendor reserves the right to ____________
the thing sold, with the obligation to
comply with the provisions of Article 1616
and other stipulations which may have
been agreed upon.
repurchase
Follow period stipulated in contract, but should not exceed ___ years.
10
If no period stipulated but the parties
intended a period, then it shall be___
years from the date of the contract.
10
If no period stipulated, then it shall be
__ years from the execution of the
contract.
4
But vendor may still exercise the right to
____________ within thirty days from the
time final judgment was rendered in a
civil action on the basis that the contract
was a true sale with right to repurchase
repurchase
The general rule in redemption is that it is
not sufficient that a person offering to
redeem manifests his desire to do so. The
statement of intention must be
accompanied by an actual and
simultaneous tender of payment for the
_____________ of the repurchase price.
full amount
EFFECT OF REDEMPTION
(1) The sale is __________________.
(2) The seller shall receive the thing ______ from all charges or mortgages constituted by the buyer BUT he shall respect leases executed by the buyer in good faith and in accordance with local
custom.
extinguished, free
EFFECT OF NON-REDEMPTION
Ownership is consolidated in the buyer BUT
the consolidation shall not be recorded in the
________________ without a judicial order,
after the vendor has been duly heard.
Registry of property
Right to Redeem
Not a separate Contract but ____ of a main contract of sale,
and cannot exist unless reserved at the time of the perfection of the main contract of sale.
part
Generally a _________________ and may be Created independent
of another contract.
principal contract
Option to purchase
Must have a consideration_____________________ from the purchase price to be valid and effective.
separate and distinct
The maximum period
for the exercise of the
right to repurchase
cannot exceed 10
years.
Right to redeem
The period of the
option contract may
be beyond the 10-
year period.
Option to purchase
An _________________________ is defined as one
which, although lacking in some formality, or
form or words, or other requisites demanded
by a statute, nevertheless reveals the
intention of the parties to charge real
property as security for a debt, and contains
nothing impossible or contrary to law.
equitable mortgage
A ________________________ is a stipulation
enabling the mortgagee to acquire ownership
of the mortgaged properties without need of
foreclosure proceedings which is a nullity
being contrary to the provisions of Article
2088 of the Civil Code.
pactum commissorium
The inclusion of pactum commissorium in the deed shows the intention to ___________ rather than to sell.
mortgage
A pactum commissorium is contrary to the
nature of a true pacto de retro sale since
ownership of the property sold is immediately
transferred to the vendee a retro upon
execution of the sale, subject only to the
_______________ of a vendor a retro within the
stipulated period.
repurchase
Lessee’s right of redemption
In case landholding is sold to 3rd person
without the knowledge of the lessee, the
latter shall have the right to redeem the same
at a reasonable price and consideration.
Period: within ____ days from notice in
writing
180
In case of doubt, a contract purporting to be a
sale with right to repurchase shall be
construed as an _______________________.
equitable mortgage
