Sales:

1. T/F: In a contract of sale, the title passes to the buyer upon delivery of the thing sold.
A: True

2. T/F: In a contract to sell, title can be transferred to the buyer even though partial payment is made to the
seller.
A: False.
In a contract to sell, ownership is retained by the seller and is not to pass to the buyer until full payment of the
price or the fulfillment of some other conditions either of which is a future and uncertain event the non-
happening of which is not a breach, casual or serious, but simply an event that prevents the obligation of the
vendor to convey title from acquiring binding force

3. T/F: The actual cancellation of the contract shall take place after thirty days from receipt by the buyer of
the notice of cancellation or the demand for rescission of the contract by a notarial act and upon full payment of
the cash surrender value to the buyer.
A: True.

4. T/F: A notice of lis pendens can be sought as a principal action for relief.
A: False.
"The notice is but an incident to an action, an extra-judicial one. It is intended merely to constructively advise,
or warn, all people who deal with the property that they so deal with it at their own risk, and whatever rights
they may acquire in the property in any voluntary transaction are subject to the results of the action, and may
well be inferior and subordinate to those which may be finally determined and laid down."

5. T/F: The Remedy of Rescission cannot apply to a contract to sell.

A: True.
In a contract to sell, the payment of the purchase price is a positive suspensive condition, the failure of which is
not a breach, casual or serious, but a situation that prevents the obligation of the vendor to convey title from
acquiring an obligatory force. ... The non-fulfillment of the condition of full payment rendered the contract to
sell ineffective and without force and effect.

6. Y/N: The notice for the declaration of cancellation of a contract to sell should be in a public instrument.
A: Yes.
Such notice should be in a public instrument pursuant to the provision of Article 1358 of the Civil Code which
requires “that acts and contracts which have for their object the extinguishment of real rights over immovable
property must appear in a public document.”