PRE-FINALS ASSIGNMENT:

1. RESCISSIBLE CONTRACT- is one that was entered into legally by the contracting parties but has
resulted in economic damage to one of the parties or an outside party. The court can therefore
rescind, or set aside, the contract for equitable reasons.
2. PACTUM COMMISSORIUM- an automatic appropriation by the creditor of the thing pledged or
mortgaged upon the failure of the debtor to pay the principal obligation.
3. STATUE OF LIMITATION- a law that sets the maximum amount of time that parties involved in a
dispute have to initiate legal proceedings from the date of an alleged offense, whether civil or
criminal. However, the length of time the statue allows for a victim to bring legal action against
the suspected wrong-doer can vary from one jurisdiction to another and the nature of the
offense.
4. RATIFICATION- the confirmation or adoption of an act that has been performed.
Example: A Principal, can ratify something that has been done on his or her behalf by another
individual who assumed the authority to act in the capacity of an agent.
5. REDEMPTION- the right to regain ownership of property by freeing it from a debt, charge, lien
(as by paying to the creditor what is due to release the secured property) specifically; a
mortgagor’s statutory right to redeem after a judicial foreclosure and sale.
6. FORECLOSE- take possession of a mortgaged property as a result of the mortgagor’s failure to
keep up their mortgage payments.
7. RIGHT OF FIRST REFUSAL- also known as first right of refusal, is a contract to enter into a
business transaction with a person or company before anyone else. If the party with these right
declines to enter into a transaction, the obligor is free to entertain other offers. This is a popular
clause among lessee of real estate because it gives them preference to the properties which
they occupy. However, it may limit what the owner could receive from interested parties
competing for the property.
8. PACTO DE RETRO- it means sale with stipulation for repurchase. It is a principal contract. It also
means contract of retrocession and it was used historically. It was the process by which a
principal acquired control of most land in the province.
9. EQUITY OF REDEMPTION- is the right of the defendant or mortgagor to extinguish and retain
ownership of the property by paying the amount fixed in the decision of the court within (90)
days to (120) days after entry of judgement or even after the sale prior to its confirmation.
10. PRINCIPAL AND AGENT- the principal is the party who authorizes the other to act in their place,
and the agent is the person who has the authority to act on behalf of the principal.

Submitted by:

Rona Sadiwa
BSREM/B04/LOA

Submitted to:
Attorney Matuloy