1. Explain each of the special remedies of a seller.

Special Remedies of Unpaid Seller

 Right of Possessory Lien
- The unpaid seller has a lien on the goods, who is in actual possession and control of the
goods may retain that possession until the seller is paid or at least a tender of payment is
made to him. The possessory lien loss when the seller parts with physical possession of
the goods, when he parts with physical possession of the goods, as when he delivers the
goods to the carrier. If part of the goods has been delivered, the possessory lien will only
exist as to the goods that still remain with the seller where he can still exercise his
possessory lien over the goods that remain with him except if there has been a
agreement of the seller with the buyer of that right.
- The possessory lien of the unpaid seller is exercisable only in the following instances:
(a) Where the goods have been sold without any stipulation as to credit;
(b) Where the goods have been sold on credit, but the term of credit has expired;
(c) Where the buyer becomes insolvent.
- The possessory lien of the unpaid seller loses his lien on the goods when:
(a) Seller delivers the goods to a carrier or other bailee for the purpose of
transmission to buyer without reserving the ownership in the goods or the right
to the possession thereof;
(b) The buyer or his agent lawfully obtains possession of the goods;
(c) By waiver thereof.
 Stoppage in Transitu
- It is an extension to the right of lien. The unpaid seller parts with the possession of the
goods by delivering the goods to the carrier or other bailee. But the seller may resume
possession of the goods while they are in transit. Either by obtaining actual possession of
the goods or by giving notice to the carrier or other bailee. He has a claim over the goods
and they should be held now his behalf. The unpaid seller exercising his right of stoppage
in transitu becomes entitled to the same right of the goods as if he had never parted with
possession thereof.
- General rule the right of stoppage in transitu arises solely when the buyer is insolvent or
becomes insolvent.
- In order for the stoppage in transitu to apply there are now requisites:
(a) Buyer must be insolvent
(b) Seller must be unpaid
(c) Goods are in transit
(d) Seller must actually take possession of the goods sold or give notice of his claim to
the carrier or other person in possession.
(e) Seller must surrender the document of title, if any, issues by the carrier or bailee;
(f) Seller must bear the expenses of delivery after the exercise of the right
 Right to Resale
- Unpaid seller has exercised either his right of lien or his right of stoppage in transitu
before he may proceed to exercise his right to resale and under any of the following:
(a) Goods are perishable by nature
(b) Right to resell is expressly reserved
(c) Buyer delays in payment for an unreasonable time
- In case seller exercise his right to resale he is not liable of any profit of the resale of
goods and if sells for less than the price, seller has right to sue for the balance from
buyer. The new buyer acquires good title as against the original buyer

 Right to Rescind
- Unpaid seller has the right to rescind the contract only if he has either a right of lien or
right to stop the goods in transit and under either of the following situations:
(a) Right to rescind is expressly reserved
(b) When buyer delays in the payment of the price for an unreasonable time.
- If the seller exercises his right to rescind, he may resume the ownership of the goods. He
is not liable to the buyer upon the contract of sale and the buyer may become liable to the
seller for damages for any loss occasioned by the breach of contract.
 - The transfer of the title shall not be held to have been rescinded by the unpaid seller until
he is manifested by the notice to the buyer or by some other overt act an intention to
rescind. For the purpose of giving the notice of determining reasonableness of the time
given to the buyer to make his obligation under the contract.

2. Differentiate Recto Law from Maceda Law

- The Recto Law, which is part of the Civil Code, specifically Articles 1484 to 1486, governs
installment sales of personal property.
- The Maceda Law, specifically Republic Act (RA) 6552 or the Realty Installment Buyer
Act, is a special law that governs real estate installment sales.

3. How is a contract of sale extinguished?

- Article 1600, sales are extinguished by the same causes as all other obligations
- By various causes of extinguishment in title IV(SALES) such as,
(a) Art. 1484. Cancellation of sale personal property payable in instalments.
(b) Art. 1532. Resale of the Goods by the unpaid seller.
(c) Art. 1534. Rescission of the sale by the unpaid seller.
(d) Art. 1556. Rescission by the buyer in case of partial eviction.
(e) Art. 1567. Rescission by the buyer in case of breach of warranty against hidden
defects.
(f) Art. 1580. Rescission by the buyer of sale of animals with redhibitory defects.
- By redemption, whether conventional or legal.