EXTINGUISMENT OF SALE
ARTICLE 1600. SALES ARE EXTINGUISHED BY THE
SAME CAUSES AS ALL OTHER OBLIGATIONS, BY
THOSE STATED IN THE PRECEDING ARTICLES OF
THIS TITLE, AND BY CONVENTIONAL OR LEGAL
REDEMPTION.
Modes on extinguishing obligations
Payments
Loss of the thing due
Condonation
Compensation
Confusion/merger of rights
Special modes of extinguishing an oblig
Conventional redemption (voluntary/agreed upon
by the parties)
legal redemption (provided by the law)
ARTICLE 1601. CONVENTIONAL REDEMPTION SHALL
TAKE PLACE WHEN THE VENDOR RESERVES THE
RIGHT TO REPURCHASE THE THING SOLD, WITH THE
OBLIGATION TO COMPLY WITH THE PROVISIONS OF
ARTICLE 1616 AND OTHER STIPULATIONS WHICH
MAY HAVE BEEN AGREED UPON.
-nagsabot si seller ug si buyer that seller has the
right to reacquire the thing sold provided that he
reimbursed the price and expenses of the contract
and other legitimate expenses and other stipulation
they have agreed upon
-Conventional Redemption – agreement with the
right to repurchase also known as facto de retro
sale/sale with right to repurchase.
-must be agreed upon at the time the original
contract is entered into, because if not separate
agreement na siya and does not called conventional
redemption anymore.(applicable to real and
personal properties
-w/o the conventional redemption (agreement to
reacquire at the time contract is entered) seller
cannot insist or force buyer to sell the thing back to
him or the exact price of the thing when it was sold
-when conventional redemption exist si buyer dli
maka buot sa price because article 1616 tells us
what should be the price
ARTICLE 1602. THE CONTRACT SHALL BE PRESUMED
TO BE AN EQUITABLE MORTGAGE, IN ANY
OF THE FOLLOWING CASES:
(1) WHEN THE PRICE OF A SALE WITH RIGHT TO
REPURCHASE IS UNUSUALLY INADEQUATE,
(2) WHEN THE VENDOR REMAINS IN POSSESSION AS
LESSEE OR OTHERWISE,
(3) WHEN UPON OR AFTER THE EXPIRATION OF THE
RIGHT TO REPURCHASE, ANOTHER INSTRUMENT
EXTENDING THE PEROD OF REDEMPTION OR
GRANTING A NEW PERIOD IS EXECUTED
(4) WHEN THE PURCHASER RETAINS FOR HIMSELF A
PART OF THE PURCHASE PRICE,
(5) WHEN THE VENDOR BINDS HIMSELF TO PAY THE
TAXES ON THE THING SOLD,
(6) ANY OTHER CASE WHERE IT MAY BE FAIRLY
INFERRED THAT THE REAL INTENTION OF THE
PARTIES IS THAT THE TRANSACTION SHALL SECURE
THE PAYMENT OF A DEBT OF THE PERFORMANCE
OF ANY OTHER OBLIGATION.
IN ANY OF THE FOREGOING CASES, ANY
MONEY, FRUITS, Of OTHER BENEFIT TO BE
RECEIVED BY THE VENDEE AS RENT OF OTHERWISE
SHALL AE CONSIDERED AS INTEREST WHICH SHALL
BE SUBJECT TO THE USURY LAWS
-any of this can give rise equitable mortgage pero
dapat naay principal obligation
-enumerates when there’s equitable mortgage
-Equitable mortgage-lacks the formality of a
mortgage. No mortgage contract executed but
shows the intention of the parties to make the
property subj to the contract as the security of the
fulfillment of the oblig.
- This is to protect indiv who can be taken
advantage by the creditor
-in equitable mortgage there is no transfer of
ownership, remedy lang ni creditor/buyer ky isell
siya sa auction
-this article is w/ consonance of Pactum
commissorium- means that void ang contract or
stipulation about automatic appropriation if si seller
or debtor fails to pay his obligations.
ARTICLE 1603. IN CASE OF DOUBT, A CONTRACT
PURPORTING TO BE A SALE WITH RIGHT TO
REPURCHASE SHALL BE CONSTRUED AS AN
EQUITABLE MORTGAGE (N)
-
ARTICLE 1604, THE PROVISIONS OF ARTICLE 1602
SHALL ALSO APPLY TO A CONTRACT PURPORTING
TO BE AN ABSOLUTE SALE. (N)
-masking unsa mn siya na sale if nay cases na sulod
sa art 1602 plus principal oblig presumed siya as
equitable mort
ARTICLE 1605. IN THE CASES REFERRED TO IN
ARTICLES 1602 AND 1604, THE APPARENT VENDOR
MAY ASK FOR THE REFORMATION OF THE
INSTRUMENT.
-if mali ang nahimo/napirmahan nga docum pwede
nila ireform ex. Imbis na prenda lang ky sale ilang
nabuhat so pwede nila ireform ang contract and
make it as mortgage lang as there is a meeting of
the minds that mortgage lang
ARTICLE 1606. THE RIGHT REFERRED TO IN ARTICLE
1601, IN THE ABSENCE OF AN EXPRESS
AGREEMENT, SHALL LAST FOUR YEARS FROM THE
DATE OF THE
CONTRACT.
SHOULD THERE BE AN AGREEMENT, THE
PERIOD CANNOT EXCEED TEN YEARS. HOWEVER,
THE VENDOR MAY STILL EXERCISE THE RIGHT TO
REPURCHASE WITHIN THIRTY DAYS FROM THE TIME
FINAL JUDGMENT WAS RENDERED IN A CIVIL
ACTION ON THE BASIS THAT THE CONTRACT WAS A
TRUE SALE WITH RIGHT TO REPURCHASE,
-true facto de retro sale
-in the absence of agreement sa period kung kanus
a hantud pwede ma repurchase hantud 4 yrs lang
pwede
-if nay agreement not exceed 10 yrs
-if gi korte nila ky nag away sila kung facto de retro
sale or motgage then ang final judgement ky facto
de retro then vendor has 30 days from final
judgement to repurchase the thing
ARTICLE 1607.1N CASE OF REAL PROPERTY, THE
CONSOLIDATION OF OWNERSHIP IN THE VENDEE BY
VIRTUE OF THE FAILURE OF THE VENDOR TO
COMPLY WITH THE PROVISIONS OF ARTICLE 1616
SHALL NOT BE RECORDED IN THE REGISTRY OF
PROPERTY WITHOUT A JUDICIAL ORDER, AFTER THE
VENDOR HAS BEEN DULY HEARD.
-if wala pa na lapas ang period sa facto de retro na
sale irecord lang ang sale pero dli I transfer ang
ownership ky basin ma repurch pa
-if na lapas na ang period then vendor must transfer
the ownership to the vendee. However, dapat naa
siyay judicial order para ma make sure kung tinuod
bah jd nga nag pass na ang period
ARTICLE 1608. THE VENDOR MAY BRING HIS
ACTION AGAINST EVERY POSSESSOR WHOSE RIGHT
IS DERIVED FROM THE VENDEE, EVEN IF IN THE
SECOND CONTRACT NO MENTION SHOULD HAVE
BEEN MADE OF THE RIGHT TO REPURCHASE,
WITHOUT PREJUDICE TO THE PROVISIONS OF THE
MORTGAGE LAW AND THE LAND REGISTRATION
LAW WITH RESPECT TO THIRD PERSONS.
-even if si vendee gbaligya niya ky other party ang
thing vendor can still bring action against vendee
and 3rd party ky facto de retro sale mn ang
between ky vendor and vendee
-if ang napirmahan ky sale pero ang intention ky
facto de retro and 3rd party is considered good faith
ARTICLE 1609. THE VENDEE IS SUBROGATED TO THE
VENDOR'S RIGHTS AND ACTIONS.
-
ARTICLE 1610. THE CREDITORS OF THE VENDOR
CANNOT MAKE USE OF THE RIGHT OF REDEMPTION
AGAINST THE VENDEE, UNTIL AFTER THEY HAVE
EXHAUSTED THE PROPERTY OF THE VENDOR.
-last option na ang facto de retro sale sa creditor ni
vendor.
-Dli pwede sa kuhaun sa creditor ni vendor ang
property na gi facto de retro ky vendee unless wala
na juy asset si vendor and redeem dapat dli kuhaon
provided by law
ARTICLE 1611. IN A SALE WITH A RIGHT TO
REPURCHASE, THE VENDEE OF A PART OF AN
UNDIVIDED IMMOVABLE WHO ACQUIRES THE
WHOLE THEREOF IN THE CASE OF ARTICLE 498,
MAY COMPEL THE VENDOR TO REDEEM THE
WHOLE
PROPERTY, IF THE LATTER WISHES TO MAKE USE OF
THE RIGHT OF REDEMPTION.
-if vendee purchase a property of both co owner in
a facto de retro sale. Vendee can force the other co
owner to redeem the whole interest.
- so if both co owner nag facto de retro sale with
same person and ang isa ka co owner ni repurch
siya, pwede ma force ni vendee tung nag repurch na
kato tibuok prop ang irepurch
ARTICLE 1612. SEVERAL PERSONS, JOINTLY AND IN
THE SAME CONTRACT, SHOULD SELL AN UNDIVIDED
IMMOVABLE WITH A RIGHT OF REPURCHASE, NONE
OF THEM MAY EXERCISE THIS RIGHT FOR MORE
THAN HIS RESPECTIVE SHARE
THE SAME RULE SHALL APPLY IF THE
PERSON WHO SOLD AN IMMOVABLE ALONE HAS
LEFT SEVERAL HEIRS, IN WHICH CASE EACH OF THE
LATTER MAY ONLY REDEEM THE PART WHICH HE
MAY HAVE ACQUIRED. (1514)
-seller cannot insist to redeem the whole property
including sa other co-owner pero si vendee pwede
niya iforce si co-owner na iredeem ang whole
unidivided prop
-if namatay na ang co-owner and naa siyay 3 ka
anak only 1/3 lang ang ma redeem nila tig isa
-ex naay 2 co owner nag retro sale sa isa ka 3 rd
person. the other owner died and naa siyay 3 ka
anak then each anak maka redeem lang ug 1/3
atong ½ nga part sa iyang parent
ARTICLE 1613. IN THE CASE OF THE PRECEDING
ARTICLE, THE VENDEE MAY DEMAND OF ALL THE
VENDORS OF CO-HEIRS THAT THEY COME TO AN
AGREEMENT UPON THE REPURCHASE OF THE
WHOLE THING SOLD; AND SHOULD THEY FAIL TO
DO SO, THE VENDEE CANNOT BE COMPELLED TO
CONSENT TO A PARTIAL REDEMPTION.
-the right to purch is in the choice of vendee de
retro
ARTICLE 1614. EACH ONE OF THE CO-OWNERS OF
AN UNDIVIDED IMMOVABLE WHO MAY HAVE SOLD
HIS SHARE SEPARATELY, MAY INDEPENDENTLY
EXERCISE
THE RIGHT OF REPURCHASE AS REGARDS HIS OWN
SHARE, AND THE VENDEE CANNOT COMPEL HIM TO
REDEEM THE WHOLE PROPERTY.
-if lahi2 ang gibaligyaan ni co owner as de retro sale
walay enforcement to redeem the whole property
ky 2 man ka contract and lahi2 sad nga vendee
ARTICLE 1615. IF THE VENDEE SHOULD LEAVE
SEVERAL HEIRS, THE ACTION FOR REDEMPTION
CANNOT BE BROUGHT AGAINST EACH OF THEM
EXCEPT FOR HIS OWN SHARE, WHETHER THE THING
BE UNDIVIDED, OR IT HAS BEEN PARTITIONED
AMONG THEM.
BUT IF THE INHERITANCE HAS BEEN
DIVIDED, AND THE THING SOLD HAS BEEN
AWARDED TO ONE OF THE HEIRS, THE ACTION FOR
REDEMPTION MAY BE INSTITUTED AGAINST HIM
FOR THE WHOLE.
-the heirs of vendee can only redeem their own
share whether undivided or not. But if dividsed ang
inheritance then and redemption sa thing sold ky sa
kung kinsa tung heir na ghatagan
ARTICLE 1616. THE VENDOR CANNOT AVAIL
HIMSELF OF THE RIGHT OF REPURCHASE WITHOUT
RETURNING TO THE VENDEE THE PRICE OF THE
SALE,
AND IN ADDITION:
(1) THE EXPENSES OF THE CONTRACT, AND ANY
OTHER LEGITIMATE PAYMENTS MADE BY REASON
OF THE SALE;
(2) THE NECESSARY AND USEFUL EXPENSES MADE
ON THE THING SOLD. (151
ARTICLE 1617. IF AT THE TIME OF THE EXECUTION
OF THE SALE THERE SHOULD BE ON THE LAND,
VISIBLE OR GROWING FRUITS, THERE SHALL BE NO
REIMBURSEMENT FOR OR PRORATING OF THOSE
EXISTING AT THE TIME OF REDEMPTION, IF NO
INDEMNITY WAS PAID BY THE PURCHASER WHEN
THE SALE WAS EXECUTED.
SHOULD THERE HAVE BEEN NO FRUITS AT
THE TIME OF THE SALE AND SOME EXIST AT THE
TIME OF REDEMPTION, THEY SHALL BE PRORATED
BETWEEN THE REDEMPTIONER AND THE VENDEE,
GIVING THE LATTER THE PART CORRESPONDING TO
THE TIME HE POSSESSED THE LAND IN THE LAST
YEAR COUNTED FROM THE ANNIVERSARY OF THE
DATE OF THE SALE.
ARTICLE 1618. THE VENOOR WHO RECOVERS THE
THING SOLD SHALL RECEVE IT FREE FROM ALL
CHARGES OR MORTGAGES CONSTITUTED BY THE
VENDEE, BUT HE SHALL RESPECT THE LEASES
WHICH THE LATTER MAY HAVE EXECUTED IN GOOD
FAITH, AND IN ACCORDANCE WITH THE CUSTOM OF
THE PLACE WHERE THE LAND IS SITUATED.
LEGAL REDEMPTION

ARTICLE 1619. LEGAL REDEMPTION IS THE RIGHT
TO BE SUBROGATED, UPON. THE SAME TERMS AND
CONDITIONS STIPULATED IN THE CONTRACT, IN THE
PLACE OF ONE WHO ACQUIRES A THING BY
PURCHASE OR DATION IN PAYMENT, OR BY ANY
OTHER TRANSACTION WHEREBY OWNERSHIP IS
TRANSMITTED BY ONEROUS TITLE,
-property has been sold or given with a certain
consideration
-pag gratuitous ky walay legal redemption
ARTICLE 1088, SHOULD ANY OF THE HEIRS SELL HIS
HEREDITARY RIGHTS TO A STRANGER BEFORE THE
PARTITION, ANY OR ALL OF THE CO-HEIRS MAY BE
‘SUBROGATED TO THE RIGHTS OF THE PURCHASER
BY REIMBURSING HIM FOR THE PRICE OF THE SALE,
PROVIDED THEY DO SO WITHIN THE PERIOD OF ONE
MONTH FROM THE TIME THEY WERE NOTIFIED IN
WRITING OF THE SALE BY THEVENDOR,
ARTICLE 1620. A CO-OWNER OF A THING MAY
EXERCISE THE RIGHT OF REDEMPTION IN CASE THE
SHARES OF ALL THE OTHER CO-OWNERS OR OF ANY
OF THEM, ARE SOLD TO A THIRD PERSON. IF THE
PRICE OF THE ALIENATION IS. GROSSLY EXCESSIVE,
THE REDEMPTIONER SHALL PAY ONLY A
REASONABLE ONE,
SHOULD TWO OR MORE CO-OWNERS
DESIRE TO EXERCISE THE RIGHT OF REDEMPTION,
THEY MAY ONLY DO SO IN PROPORTION TO THE
SHARE THEY MAY RESPECTIVELY HAVE IN THE
THING OWNED IN COMMON.
-the other co owner can redeem the de retro sale of
the other co owner pero only in proportion sa ilang
share
-must be sold to 3rd person not co owner
-example sold to 3rd person
 JUAN, PEDRO, MIGUEL -CO-OWNERS OF A PARCEL OF LAND
 MIGUEL SELLS HIS SHARES TO MARIA
 MARIA BECOMES A CO-OWNER WITH JUAN AND PEDRO
 JUAN AND /OR PEDRO CAN LEGALLY REDEEM FROM MARIA
-example sold to co owner
 JUAN, PEDRO, MIGUEL -CO-OWNERS OF A PARCEL OF LAND
 MIGUEL SELLS HIS SHARES TO JUAN
 JUAN AND PEDRO, WITH JUAN HAVING GREATER SHARE
 PEDRO CANNOT REDEEM FROM JUAN,
ARTICLE 1621. THE OWNERS OF ADJOINING LANDS
SHALL ALSO HAVE THE RIGHT OF REDEMPTION
WHEN A PIECE OF RURAL LAND, THE AREA OF
WHICH
DOES NOT EXCEED ONE HECTARE, IS ALIENATED,
UNLESS THE GRANTEE DOES NOT OWN ANY RURAL
LAND.(rural-countryside)
THIS RIGHT IS NOT APPLICABLE TO
ADJACENT LANDS WHICH ARE SEPARATED BY
BROOKS, DRAINS, RAVINES, ROADS AND OTHER
APPARENT SERVITUDES FOR THE BENEFIT OF OTHER
ESTATES.
IF TWO OR MORE ADJOINING OWNERS
DESIRE TO EXERCISE THE RIGHT OF REDEMPTION AT
THE SAME TIME, THE OWNER OF THE ADJOINING
LAND OF SMALLER AREA SHALL BE PREFERRED; AND
SHOULD BOTH LANDS HAVE THE SAME, AREA, THE
ONE WHO FIRST REQUESTED THE REDEMPTION.
-talks about rural land. If si owner sa adjoined lot ky
ibaligya niya iyang part pwede iredeem ni other
adjoined and iyang property and if duha sila kabuok
nga ka adjoined ky ang pinaka gamay sa ilang duha
ang maka redeem
-Kung kinsa mas gamay if equal kung kinsa ang
nauna
ARTICLE 1622, WHENEVER A PIECE OF URBAN LAND
WHICH IS SO SMALL AND SO SITUATED THAT A
MAJOR PORTION THEREOF CANNOT BE USED FOR
ANY PRACTICAL PURPOSE WITHIN A REASONABLE
TIME, HAVING BEEN BOUGHT MERELY FOR
SPECULATION, IS ABOUT TO BE RE-SCLD, THE
OWNER OF ANY ADJOINING LAND HAS & RIGHT OF
PRE-EMPTION AT A REASONABLE PRICE.
IF THE RE-SALE HAS BEEN PERFECTED, THE
OWNER OF THE ADJOINING LAND SHALL HAVE A
RIGHT OF REDEMPTION, ALSO AT A REASONABLE
PRICE.
WHEN TWO OR MORE OWNERS OF
ADJOINING LANDS WISH TO EXERCISE THE RIGHT
(OF PRE-EMPTION OR REDEMPTION, THE OWNER
WHOSE INTENDED USE OF THE LAND IN QUESTION
APPEARS SEST JUSTIFIED SHALL BE PREFERRED.
-urban,adjacent,piece of land is small
ARTICLE 1634, WHEN A CREDIT OR OTHER
INCORPOREAL RIGHT IN LITIGATION IS SOLD, THE
DEBTOR SHALL HAVE A RIGHT TO EXTINGUISH IT BY
REIMBURSING THE ASSIGNEE FOR THE PRICE THE
LATTER PAID THEREFOR, THE JUDICIAL COSTS
INCURRED BY His, AND THE INTEREST ON THE PRICE
FROM THE DAY ON WHICH THE SAME WAS PAID.
A CREDIT OR OTHER INCORPOREAL RIGHT
SHALL BE CONSIDERED IN LITIGATION FROM THE
TIME THE COMPLAINT CONCERNING THE SAME IS
ANSWERED.
THE DEBTOR MAY EXERCISE HIS RIGHT
WITHIN THIRTY DAYS FROM THE DATE THE
ASSIGNEE DEMANDS PAYMENT FROM HIM.
ARTICLE 1623. THE RIGHT OF LEGAL PRE-EMPTION
OR REDEMPTION SHALL NOT BE EXERCISED EXCEPT
WITHIN THIRTY DAYS FROM THE NOTICE IN
WRITING BY THE PROSPECTIVE VENDOR, OR BY THE
VENDOR, AS THE CASE MAY BE, THE DEED OF SALE
SHALL NOT BE RECORDED IN THE REGISTRY OF
PROPERTY, UNLESS ACCOMPANIED BY AN
AFFIDAVIT OF THE VENDOR THAT HE HAS GIVEN
WRITTEN. NOTICE THEREOF TO ALL POSSIBLE
REDEMPTIONERS.
THE RIGHT OF REDEMPTION OF CO-
OWNERS EXCLUDES THAT OF ADJOINING CO
OWNERS.
MORTGAGE
Article 2085. The following requisites are essential
to the contracts of mortgage:
(1) That they be constituted to secure the
fulfillment
of a principal obligation;
(2) That the mortgagor be the absolute owner of
the thing mortgaged;
(3) That the persons constituting the mortgage
have the free disposal of their property, and in the
absence thereof, that they be legally authorized for
the purpose.
Third persons who are not parties to the
principal obligation may secure the latter by
pledging or mortgaging their own property.
Article 2086. The provisions of article 2052 are
applicable to a pledge
Article 2052. A guaranty cannot exist without a
valid obligation.
Nevertheless, a guaranty may be
constituted to guarantee the performance of a
voidable or an unenforceable contract. It may also
guarantee a
natural obligation.
Article 2087. It is also of the essence of these
contracts that when the principal obligation
becomes due, the things in which the pledge or
mortgage consists may be alienated for the
payment to the creditor.
PACTUM COMMISSORIUM
Article 2088. The creditor cannot appropriate the
things given by way of mortgage, or dispose of
them. Any stipulation to the contrary is null and
void.
PACTUM COMMISSORIUM (PACTO COMISORIO)
-
Elements of Pactum Commissorium
=There should be a mortgage, or antichresis of
property by way of Security for the payment of the
principal Obligation
=There should be stipulation for an automatic
appropriation by the creditor of the property in the
event of non-payment of the obligation
PACTUM COMMISSORIUM
+There is the original contract of pledge, mortgage
or antichresis
+Upon non-payment, property is deemed
automatically transferred to the creditor
DATION EN PAGO
+There is a simple obligation of a loan
+No automatic transfer