Lazo, Milani Joy T.

2019137591
Section 22

FAR EASTERN UNIVERSITY-Institute of Accounts Business and

Finance
LAW ON SALES

ASSIGNMENT 2

Problems (10 points each):

1. Baldo bought a residential house and lot from Tierra Madre Realty for P250,000.00
giving a down payment of P10,000.00 and promising to pay the balance of P240,000.00
in 20 years in monthly installments of P1,000.00. After paying 72 installments Baldo
defaulted in the payment of the 73rd installment and subsequent ones. Despite the grace
period he had earned he was not able to make any further payments. Accordingly, Tierra
Madre Realty cancelled the sale.

How much cash surrender value is Baldomero entitled to receive?

Total payments Baldomero made:

Down payment Php 10,000
72 months + 72,000
TOTAL Php 82,000
55% (Maceda Law) x (55%)
CASH SURRENDER VALUE: Php 45,100

- Baldomero is entitled to receive Php 45,100 cash surrender value because it is already
indicated in Maceda Law that the amount of cash surrender to be returned is 50
percent of the total payment made and an addition of another 5 percent every year.

2. Mr. Ayco offered to sell his land to Mr. Cruz for P300,000. Mr. Cruz accepted the offer
and paid Mr. Ayco the purchase price. Mr. Ayco delivered the owner’s duplicate of the
Transfer Certificate of title of the land. Mr. Cruz wants to register the land in his name
but the Register of Deeds asks Mr. Cruz for the Deed of Sale.

What is the status of the sale? What can Mr. Cruz do?

- The status of sale is still valid, Mr. Cruz can compel Mr. Ayco to execute the deed of
sale. And as what is stated in Article 1495, the vendor is bound to transfer the
ownership of and deliver, as well as warrant the thing which is the object of the sale.

- END -