Tordesillas, Ma. Alyssa T.

LAW1301-Sec 27

ASSIGNMENT 1

1. A offered to sell his house and lot for P10M to B, who was interested in buying the
same. In his letter to B, A stated that he was giving B a period of one month within
which to raise the amount, and that as soon as B is ready, they will sign the deed of sale.
One week before the expiration of the one-month period, A went to B, and told him that
he is no longer willing to sell the property unless the price is increased to P15M. May B
compel A to accept the P10M first offered, and execute the sale? GIVE Reason/s.

According to Article 1479, A promise to buy and sell a determinate thing for a price
certain is reciprocally demandable. An accepted unilateral promise to buy or to sell a
determinate thing for a price certain is binding upon the promissor if the promise is supported
by a consideration distinct from the price. So, no. B cannot compel A to accept the P10M that
was offered initially to execute the sale because B did not signify his acceptance of A’s offer.
.

2. A sold to B land, which at the time of sale did not belong to A. Is the sale valid? GIVE
REASON/S.

As a general rule in transferring ownership, at the time of the perfection of the

sale, the seller doesn't need to have the ownership, but it is required that the seller has the
ownership after the perfection of the contract of sale/ at the time of sold because in the
contract of sale seller obligates himself to transfer the ownership and to deliver the
determinate thing. Thus, if A is not the owner of the land at the time of sale and the title
of ownership doesn’t belong to him, he cannot transfer the ownership to B. This makes
the sale void.

3. Your buyer bought a 200sqm subdivision lot at P3,000/sqm. He paid 25% down
payment. The balance is payable in 120 amortizations at 21% per annum. He has paid
84 monthly amortizations totalling P737,612.20 inclusive of penalty interest of P32,000.

Compute for him his Cash surrender Value under the Maceda Law.

CSV
Total payment x % of Refund = Refund or Cash Surrender Value

Down payment: 200sqm x P3,000/sqm x .25 = P 150,000.00

Amortization: (737,612.20-32,000) 705,612.20
Total Payment 855,612.20
x % RF x .60
Cash Surrender Value or Refund P 513,367.32
4. S sold to B a car for P1M. The condition for the sale is for B to execute a chattel
mortgage on the thing sold. The term of the sale is for B to pay a down payment of
P200,00 and the balance to be paid on July 15, 2020. However, the balance was not paid
by the buyer so S foreclosed the chattel mortgage on the thing sold. It was sold for
P700,000. Can S recover the deficiency? Give reason/s?

In Foreclosure of the Chattel Mortgage, according to Art. 1484, “the recovery of

deficiency after foreclosure is forbidden and that the seller shall have no further action
against the vendee for the recovery of any unpaid balance of the price and any agreement
to the contrary is void.”. Therefore, S cannot recover the deficiency because the seller has
chosen to foreclose the chattel mortgage on the thing sold.

5. S sold to B a car for P1M. The condition for the sale is for B to execute a chattel
mortgage on the thing sold. The balance of 800,000 is payable in twenty equal
installments. B defaulted on the succeeding installments. S sued B for the collection of
the balance and the court rendered judgment in favor of S. S by execution of judgment
sold the car for P700,000. Can S recover the deficiency? Give reason/s?

In the first remedy which is exact fulfillment under Art. 1484, seller has the right
to recover not only the proceeds of the sale but, as well as the unpaid balance of the price
from the buyer. Therefore, S can recover the deficiency to B because the seller chosen the
fulfillment upon the buyer’s failure to pay.

6. S sold to B a car for P1M. The condition for the sale is for B to execute a chattel
mortgage on the thing sold. The balance of 800,000 is payable in twenty equal
installments. B defaulted on his 2 or more installments so S foreclosed the mortgage and
sold it for P700,000. Can S recover the deficiency? Give reason/s?

In Art. 1484 in a contract of sale of personal property, “no further action against the
buyer to recovery any unpaid balance of the price. Any agreement to the contrary shall be
void.” S chose the foreclosure of the chattel mortgage to which B has failed to pay two or
more installments. Therefore, S cannot recover the deficiency of P1000,000 to B.