Podcast
Questions and Answers
What happens if the vendee fails to pay for two or more installments?
What happens if the vendee fails to pay for two or more installments?
- The sale can be canceled and payments can be returned. (correct)
- The vendee will face criminal charges.
- The sale must continue without any changes.
- The vendee is automatically given an extension.
According to the Recto Law, what should not occur after foreclosing a chattel mortgage?
According to the Recto Law, what should not occur after foreclosing a chattel mortgage?
- Payments must be returned to the vendee.
- Further action against the purchaser for unpaid balance. (correct)
- The sale can be canceled.
- The purchaser can be sued for damages.
Which of the following is NOT included under the Maceda Law?
Which of the following is NOT included under the Maceda Law?
- Sale of industrial lots. (correct)
- Sale of tenants under the land reform code.
- Sale of residential condominium apartments.
- Sale of financing of real estate.
What constitutes delivery in a situation where the provisions about ownership transfer do not apply?
What constitutes delivery in a situation where the provisions about ownership transfer do not apply?
What is the maximum grace period a buyer can earn under the Maceda Law?
What is the maximum grace period a buyer can earn under the Maceda Law?
How often can a buyer exercise the right to pay unpaid installments within the grace period?
How often can a buyer exercise the right to pay unpaid installments within the grace period?
Under what condition does ownership of goods delivered on sale or return pass to the buyer?
Under what condition does ownership of goods delivered on sale or return pass to the buyer?
What happens if a buyer does not signify acceptance of the goods delivered on approval?
What happens if a buyer does not signify acceptance of the goods delivered on approval?
What is one of the main purposes of the Maceda Law?
What is one of the main purposes of the Maceda Law?
What is a key distinction between a sale on return and a sale on trial?
What is a key distinction between a sale on return and a sale on trial?
What occurs if a buyer fails to make payments after having paid two years of installments?
What occurs if a buyer fails to make payments after having paid two years of installments?
Which remedy under the Recto Law cannot be exercised cumulatively with others?
Which remedy under the Recto Law cannot be exercised cumulatively with others?
In the sale of specific goods, what rights can the seller reserve through the contract?
In the sale of specific goods, what rights can the seller reserve through the contract?
In a sale on satisfaction, when does ownership pass to the buyer?
In a sale on satisfaction, when does ownership pass to the buyer?
What is the implication of the risk of injury in a sale on return?
What is the implication of the risk of injury in a sale on return?
Which statement accurately reflects the concept of QUASI-TRADITIO?
Which statement accurately reflects the concept of QUASI-TRADITIO?
What happens to the ownership of goods if the seller ships them but retains the bill of lading for security until payment is made?
What happens to the ownership of goods if the seller ships them but retains the bill of lading for security until payment is made?
In what scenario does the risk of loss shift to the buyer before actual delivery has been made?
In what scenario does the risk of loss shift to the buyer before actual delivery has been made?
If a seller wrongfully retains the bill of lading and does not honor the bill of exchange, what happens to his rights?
If a seller wrongfully retains the bill of lading and does not honor the bill of exchange, what happens to his rights?
What is the general rule regarding the risk of a thing lost due to a fortuitous event?
What is the general rule regarding the risk of a thing lost due to a fortuitous event?
Which of the following actions by the seller does NOT violate the contract according to the provided content?
Which of the following actions by the seller does NOT violate the contract according to the provided content?
What happens to the goods if there is a delay in delivery caused by the seller?
What happens to the goods if there is a delay in delivery caused by the seller?
What does the seller need to do if he draws on the buyer for the prices and sends the bill of lading?
What does the seller need to do if he draws on the buyer for the prices and sends the bill of lading?
Under what condition does risk of loss NOT transfer to the buyer after ownership has been transferred?
Under what condition does risk of loss NOT transfer to the buyer after ownership has been transferred?
Under what circumstance may an unpaid seller retain possession of goods?
Under what circumstance may an unpaid seller retain possession of goods?
What is true about the seller's lien?
What is true about the seller's lien?
What happens to the seller’s lien if the buyer becomes insolvent?
What happens to the seller’s lien if the buyer becomes insolvent?
What typically indicates that a buyer is entitled to take possession of goods without immediate payment?
What typically indicates that a buyer is entitled to take possession of goods without immediate payment?
What is the effect of the seller's lien on the buyer's interest in the goods?
What is the effect of the seller's lien on the buyer's interest in the goods?
What can cause the loss of the seller's lien?
What can cause the loss of the seller's lien?
What does the seller's lien permit the seller to do if there is a default in payment?
What does the seller's lien permit the seller to do if there is a default in payment?
What is required for the buyer to be bound to pay the price after the credit term has expired?
What is required for the buyer to be bound to pay the price after the credit term has expired?
What is the primary condition under which a seller can exercise the right to stop goods in transitu?
What is the primary condition under which a seller can exercise the right to stop goods in transitu?
How can a seller exercise the right to stop goods in transitu?
How can a seller exercise the right to stop goods in transitu?
What must the notice given by the seller to the carrier or bailee include?
What must the notice given by the seller to the carrier or bailee include?
What happens to the seller's right to stop goods in transit if there is an outstanding bill of lading?
What happens to the seller's right to stop goods in transit if there is an outstanding bill of lading?
Which of the following rights does the purchaser hold over the seller's lien or stoppage in transit?
Which of the following rights does the purchaser hold over the seller's lien or stoppage in transit?
Under what conditions can an unpaid seller exercise the right of resale?
Under what conditions can an unpaid seller exercise the right of resale?
When can an unpaid seller resale goods if the buyer delays in payment?
When can an unpaid seller resale goods if the buyer delays in payment?
What happens when goods are covered by a non-negotiable document of title?
What happens when goods are covered by a non-negotiable document of title?
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Study Notes
Cancellation and Foreclosure
- Vendee’s failure to pay for two or more installments allows seller to cancel the sale.
- Purchaser can demand refund of payments made unless forfeiture is stipulated.
- Seller may foreclose chattel mortgage on the sold property, eliminating further claims for unpaid balance.
- Remedies are alternative; choosing one waives rights to others.
Attachment and Execution
- Attachment involves the property of a defendant being held by law during a lawsuit.
- Execution enforces a final judgment from a court.
Maceda Law (RA 6552)
- Aims to protect installment buyers of real estate.
- Authored by Senator Ernesto Maceda, known as Realty Installment Buyer Protection Act.
- Covers all installment real estate transactions, excluding industrial lots, commercial buildings, and land reform tenants.
- If a buyer has paid at least two years of installments, they have specific rights if they default, including a grace period for unpaid installments without additional interest.
Rights and Ownership
- Ownership transfers on delivery under specific terms; buyer may return goods to revert ownership.
- Buyer has rights unless owner’s conditions are met or the goods are returned in a reasonable time.
- In a sale on approval, ownership remains with seller until buyer accepts or retains goods without rejection notice.
Seller's Rights
- Seller can retain possession of specific goods until conditions are met, even after delivery.
- If sold on credit, seller retains ownership until payment is made; disruptions may lead to the seller disposing of goods legally.
- Selling on credit waives lien rights during the credit period; protection reverts to seller afterward.
Risk Management
- General rule: goods remain seller's risk until ownership transfer; after this, risks are with the buyer.
- Exceptions include delayed deliveries and fortuitous events impacting ownership.
- Unpaid seller can hold onto goods until payment in specified scenarios.
Right of Stoppage in Transit
- Seller retains rights to stop goods in transit until ownership is transferred.
- Can stop goods by taking possession or notifying the carrier; notice should describe goods clearly.
- Ownership is paramount, protecting against creditors; seller must surrender negotiable documents for the buyer to receive goods.
Right of Resale
- Unpaid seller can resell goods if conditions permit, such as perishability or explicit reservation of resale rights.
- Seller must have exercised prior rights to stop in transit to maintain the right to resale.
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