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CPA RFBT Reviewer Law on Sales
CPA RFBT Reviewer Law on Sales
XVI. EXTINGUISHMENT OF SALE NOTE: the seller a retro must pay for useful
improvements introduced by the buyer a
Sales are extinguish by: retro; otherwise, the latter may retain
1. By the same causes as all obligations: possession of the land until reimbursement
a. Payment/performance is made.
b. Prescription
c. Loss of thing due Period of Redemption
d. Annulment a.) No agreement : 4 years from date of
e. Novation contract
f. Condonation/remission b.) There is agreement: should not
g. Confusion or merger exceed 10 years. The time in excess
h. Compensation of 10 years shall be null and VOID.
i. Rescission c.) Civil Action between the parties: 30
j. Resolutory Conditions days after final judgement was
2. by the various causes of made, provided that the contract
extinguishment in title VI (sales): was a true sale with a right to
a. Cancellation of sale of personal repurchase.
property in installments (art.
1484) Effect of Failure to exercise right of
b. Resale of the goods by unpaid repurchase
seller (art. 1532) Ownership shall be consolidated in the
c. Rescission of the sale by unpaid vendee. In case of real property, a judicial
seller (art. 1534 order is required for the purpose of
d. Rescission by the buyer in case recording the consolidation in the registry
of partial eviction (art. 1556) of property after the vendor has been duly
e. Rescission by buyer in case of heard. (art. 1607)
breach of warranty against
hidden defect (art. 1567) Who may Exercise the right to
f. Rescission by buyer in sale of Repurchase
animals with redihibitory 1. Vendor a retro
defects (art. 1580) a. Vendee, who acquired the whole
3. By redemption undivided interest, may compel
the vendor, who only sold part
A.) CONVENTIONAL REDEMPTION thereof, to redeem the whole
Also called the right to redeem or property.(art. 1611)
repurchase, takes place when the vendor