Dela Cruz, Mike Angelo R.

Sec. 1

1. No because, Article 1484 or Recto Law refers only to the Contract of sale of personal property.
Since it is a security for a loan, it is not covered by the Recto Law.

2. No because, Maceda law is only applicable for Residential Real Property, since the property
concerned is an industrial property, it will not be covered by Maceda Law.

3. The grace period is within 180 days or 6 months after the due date. This is because under R.A.
No. 6552, Sec 2, (a), The buyer has the right to pay without additional interests to be paid within
the total grace period earned by the buyer, which is the standard rate, that is one month grace
period for every one year of installment payments made.

4. Yes, he is entitled to receive an amount of P2,700,000. Under Maceda law, if the contract is
cancelled, the buyer will receive a refund of 50% of the total payments made, and after five
years of installment, additional five percent every year but not to exceed ninety percent of the
total payments made.

5. Yes. It is tenable because it is a contract to sell, evidenced by their use of deed of sale. Under the
contract to sell, “ownership is reserved in the seller and not to pass until full payment of the
purchase price. Thus, the ownership or the title will remain in the seller if the buyer failed to
comply with the condition of making a payment at the time specified in their contract.

6. Yes because, it is stated in the law that it is not needed for the seller to be the owner of the
thing sold at the perfection stage of the contract, but it is needed for the seller to be the owner
at the consummation stage for he will not be able to deliver the thing sold because the principle
of Nemo dat quod non habet will apply. If that is the case, the contract will be rescinded for
breach of contract.