Performance of contract Flashcards
Cancellation of the contract under Section 4 of R.A. 6552 as a two-step process. First, the seller should extend the buyer a grace period of at least ___ days from the due date of the installment.
Second, at the end of the grace period, the seller shall furnish the buyer with
a notice of cancellation or demand for rescission through a notarial act, effective ___
days from the buyer‘s receipt thereof.
60, 30
If contract is to be cancelled, seller must first:
(1) Give a 30-day notice of
cancellation, and
(2) Refund cash surrender value
(CSV) to buyer;
(3) CSV is equivalent to 50% of total payments made including deposits, options and down-payments plus 5% for every year in excess of 5 years of the life of the contract or any of its extensions.
In the sale of immovable property, buyer may pay even beyond the expiration of the period agreed upon, as long as no demand for____________ of the contract has been made upon him either judicially or by a notarial act, despite a stipulation providing for ipso jure rescission.
rescission
Buyer cannot suspend payment when:
(a) Seller gives security for the return of the price in a proper case
(b) It has been stipulated that, notwithstanding any such contingency, the buyer shall be bound to pay.
DELIVERY OF THING SOLD (Sale of movables).
When Quantity less than expected:
(i) Buyer may reject all
(ii) Buyer may accept. If buyer accepts with knowledge of seller’s inability to deliver the rest.
-Buyer pays contract price
(iii) Buyer may accept, If Buyer has used or disposed prior to knowing seller’s inability to deliver the
rest, or buyer does not know of seller’s inability to deliver the rest.
– Buyer pays fair value
By default, buyer is not bound to accept delivery of goods by
______________.
installments
DELIVERY OF THING SOLD (Sale of movables).
When Quantity is more than expected:
(i) If divisible, buyer may accept only the contracted quantity, and reject the rest.
-buyer pays contract price
(ii) Buyer may accept all
-buyer pays for all at contract rate
(iii) If indivisible, buyer may reject all
In a contract of delivery by installment to be paid by installment as well, delay or
breach may not necessarily mean breach of the entire contract; depending on the circumstances, breach may be severable and the aggrieved party is entitled to
__________ and not rescission.
damages
Seller bound to deliver entire
land, i.e., the entire area stated in
the contract.
If the area is less than that stated,
buyer may __________ or ___________ a
proportionate reduction in price.
rescind, demand
Buyer may only avail of rescission if the area deficiency ___ is or
more of total area.
10%
There is no change in________ even if area or number turns out to be greater or lesser than that stated.
Exception: when the excess or deficiency is no longer reasonable.
price
If buyer refuses to accept goods, having the right to do so, he is _________ to return them to the seller, it being sufficient that he notifies the seller of his refusal to accept.
not bound
If the buyer voluntarily constitutes himself a depositary of the goods, he shall be _______ as such.
liable
Unjust refusal to accept still results to_______________________. In such case, title to the goods passes to the buyer from the moment they are placed at his disposal, except if ownership has been reserved by the seller.
transfer of ownership
Buyer is liable for interest when:
(a) Interest is stipulated;
(c) Thing sold produces fruits or income;
(d) Buyer is in default - interest accrues from the time of judicial or extrajudicial demand for payment.
