Determine if the following statements are true or false: Statement A: In a Contract of Sale, the non-payment of the purchase price is a negative resolutory condition which will re... Determine if the following statements are true or false: Statement A: In a Contract of Sale, the non-payment of the purchase price is a negative resolutory condition which will revert the ownership of the thing sold from the buyer to the seller. Statement B: Once the dacion en pago becomes effective, the property which secures the loan is released from mortgage.
Understand the Problem
The question presents two statements related to contract law, specifically focusing on Contracts of Sale and Dacion en Pago. We need to evaluate each statement independently and determine whether they are true or false based on legal principles.
Answer
Statement A: False. Statement B: True.
Statement A is False. Non-payment in a Contract of Sale is typically a positive resolutory condition, not a negative one, where ownership transfer depends on full payment. Statement B is True. Dacion en pago essentially substitutes the payment obligation, releasing the mortgage on the property.
Answer for screen readers
Statement A is False. Non-payment in a Contract of Sale is typically a positive resolutory condition, not a negative one, where ownership transfer depends on full payment. Statement B is True. Dacion en pago essentially substitutes the payment obligation, releasing the mortgage on the property.
More Information
A resolutory condition is an event that, if it occurs, extinguishes an obligation. Dacion en pago is a special form of payment where an asset is given to satisfy a debt.
Tips
It is important to understand the difference between a contract of sale and a contract to sell. In a contract of sale, ownership passes upon delivery, while in a contract to sell, ownership passes upon full payment.
Sources
- In a contract of sale the buyer becomes the owner upon delivery of ... - coursehero.com
- Law-on-sale-test-bank (pdf) - CliffsNotes - cliffsnotes.com
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