CONVENTIONAL
VERSUS
LEGAL
REDEMPTION
a mode of extinguishment wherein the
seller has the right to redeem or
repurchase the thing sold upon return of
the price paid
Takes place when the
vendor RESERVES the right
to repurchase the thing sold
with the obligation to
return:
the price of the sale
the expenses of the contract
any other legitimate
payments
necessary and useful
expenses.
May be exercised within
FOUR (4) YEARS from date
of contract.
Can only be constituted by
express reservation in a
contract of sale at time of
perfection.
The exercise of the right
extinguishes the
underlying contract of sale
as though there was never
any contract at all.
The right to be subrogated
upon the same terms and
conditions stipulated in the
contract, in the place of one
who acquires the thing by
purchase or by dation en
pago or by other transaction
whereby ownership is
transmitted by onerous title.
Shall not be exercised
except within THIRTY (30)
DAYS from the notice in
writing by the prospective
seller, or seller, as the case
may be.
Does not have to be
expressly reserved (being a
right granted by law) and
covers sales and other
onerous transfers of title.
Although the exercise of
the right extinguishes the
original sale, it actually
constitutes a new sale in
substitution of the roginal
sale.