Which is true? Statement A: Pacto de Retro Sale is the same as an equitable mortgage. Statement B: In Maceda Law, the buyer can still pay within the 30-day notice of cancellation b... Which is true? Statement A: Pacto de Retro Sale is the same as an equitable mortgage. Statement B: In Maceda Law, the buyer can still pay within the 30-day notice of cancellation but already with interest.
Understand the Problem
The question presents two statements, A and B, related to Philippine law. Statement A concerns the equivalence of a 'Pacto de Retro Sale' (sale with right of repurchase) and an equitable mortgage. Statement B involves the 'Maceda Law' and the buyer's right to pay with interest after a 30-day notice of cancellation. The problem asks us to find out which one is true.
Answer
Statement B is true; Statement A is false.
Statement B is true. Under the Maceda Law, the buyer can still pay within the 30-day notice of cancellation, but already with interest. Statement A is incorrect because a pacto de retro sale is not the same as an equitable mortgage.
Answer for screen readers
Statement B is true. Under the Maceda Law, the buyer can still pay within the 30-day notice of cancellation, but already with interest. Statement A is incorrect because a pacto de retro sale is not the same as an equitable mortgage.
More Information
A pacto de retro sale involves the right of the seller to repurchase the property, while an equitable mortgage is a contract that, although lacking the proper formalities of a mortgage, shows the intention of the parties to make the property security for a debt.
Tips
It is important to understand the definitions and key differences in concepts to avoid confusion.
Sources
- RFBT-10 (Sales) (pdf) - CliffsNotes - cliffsnotes.com
- [DOC] Sales-Bar-Q-A-1975-2004.docx - PINAY JURIST - pinayjurist.com
AI-generated content may contain errors. Please verify critical information
