Part VII - Extinguishment of Sale

Question 1

How is sales extinguished?

Answer 1

Sales are extinguished by the same causes as all other obligations and by conventional or legal redemption.

Question 2

What is conventional redemption?

Answer 2

Seller reserved the right to repurchase thing sold coupled with obligation to return price of the sale, expenses of contract & other legitimate payments and the necessary & useful expenses made on the thing sold.

Question 3

When is the contract presumed to be an equitable mortgage which can be redeemed through conventional redemption?

Answer 3

(a) The price of a sale with right to repurchase is unusually inadequate.
(b) When the seller remains in possession as leasee or otherwise
(c) When upon or after the expiration of the right to repurchase another instrument extending the period of redemption or granting a new period is executed
(d) When the buyer retains for himself a part of the purchase price
(e) When the seller binds himself to pay the taxes of the thing sold
(f) In any other case where it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation.

Question 4

How long is the period for the equitable mortgage to be redeemed?

Answer 4

If there is no agreement, it shall last four years from the date of the contract.

If there should be an agreement, it shall not exceed ten years.

Question 5

What are the remedies under conventional redemption?

Answer 5

(a) Apparent seller may seek reformation of the instrument.

(b) File appropriate foreclosure of the mortgage in equity.

Question 6

What is legal redemption?

Answer 6

Legal redemption is the right to be subrogated upon the same terms and conditions stipulated in the contract, in the place of one who acquires a thing by purchase or dation in payment, or by any other transaction whereby ownership is transmitted by onerous title.

Question 7

When does period of legal redemption begins?

Answer 7

The right of legal pre-emption or redemption shall not be exercised except within 30 days from the notice in writing by the seller.

Question 8

What are the instances of legal redemption?

Answer 8

(a) Sale of a co-owner of his share to a stranger
(b) When a credit or other incorporeal right in litigation is sold.
(c) Sale of an heir of his hereditary rights to a stranger
(d) Sale of adjacent rural lands not exceeding
(e) Sale of adjacent small urban lands bought merely for speculation