Maceda & Recto Law Flashcards
Sale of movables in installment (RECTO)
The rule is intended to apply to sales of
movables, the price of which is payable in
2 or more installments, but not to
straight-term sales where the price is
payable in full, after making a down
payment because the law aims to protect
improvident buyers who may be tempted
to _____ beyond their means.
Buy
Lease of personal property with option to buy (RECTO)
(a) When lessor has _________the lessee
of the possession or enjoyment of the
thing (i.e. lessor files a complaint for
replevin against lessee)
(b) Also applies when seller assigns his
credit to someone else.
deprived
When the seller has chosen specific performance, he can no
longer seek for rescission or foreclosure of the _____________________.
chattel mortgage
If specific performance has become impossible, the seller may still
choose ___________________ .
Rescission
When the seller __________ the sale by repossessing the property sold, he is
barred from exacting payment for its price.
cancels
Foreclosure of Chattel Mortgage if
vendee fails to pay 2 or more installments
(a) If seller chooses this remedy, he shall
have no further action to recover any
unpaid balance, and any stipulation
to the contrary shall be _____.
void.
________ has no discretion to compel the seller
to wait for the expiration of the period to pay,
or to grant the buyer more time to pay.
Court
Rights of the Buyer: (MACEDA LAW)
The law imposes additional requirements on the part of the seller for a valid rescission:
(1) If buyer has paid at least __ years of
installments:
(a) Grace period of 1 month per year of installment payment made BUT the buyer may only avail of the grace period once every __ years.
(b) Refund of Cash Surrender Value (CSV): 50% of total amount paid + 5% for every year after the first 5 years of installments BUT total CSV should not be greater than ___ of total amount paid
(c) Notice of cancellation of demand for rescission by notarial act effective ___ days from the buyer’s receipt thereof and upon full payment of CSV
2, 5, 90%, 30
__________ does NOT apply to:
(1) Industrial lots
(2) Commercial buildings
(3) Sale to tenants under Agricultural
(4) Sale of lands payable in straight terms
Maceda Law
If buyer has paid less than 2 years of installments: (MACEDA LAW)
(a) Grace period of at least __days
(b) Notice of cancellation or demand for
rescission by notarial act, effective 30
days upon receipt thereof
60
During the grace period, the buyer shall
also have the right: (MACEDA LAW)
(a) To ______________ his rights, evidenced
in a notarial instrument
(b) To update his account
(c) To pay in advance any installment, or
the full unpaid balance of the price,
without any interest, and to have
such full payment of the purchase
price annotated in the certificate of
title covering the property.
sell or assign
A decision in an ejectment case can operate
as notice of cancellation as required by
MACEDA LAW . However, mere filing of an unlawful
detainer suit by the seller _____________ as
such notice
does not operate
